§ 7-1-492 — Prohibitions applicable to directors, officers, and employees

(a) No director, officer, or employee of a bank or trust company shall: (1) Receive anything of value for procuring or attempting to procure any loan from or investment by the bank or trust company; (2) Purchase, or directly or indirectly be interested in purchasing, from the bank or trust company for less than its face value any promissory note or other evidence of indebtedness issued by the bank or trust company; (3) Purchase or sell any other asset to the bank or trust company except: (A) Upon terms not less favorable to the bank or trust company than those offered to other persons or corporations; and (B) With the prior approval of the board of directors or a committee thereof authorized to act for the board, unless the transaction is made in the regular course of business. (b) No director shall be eligible to vote concerning any purchase or sale where he is or would be a party to the transaction. (c) It shall be unlawful for any bank or trust company to lend to any officer, director, or employee any funds held in trust under powers granted in this chapter.