§ 23-6-4-13 — Lending agreements; time of membership; evidence of loans; interest

Indiana § 23-6-4-13

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 6: PUBLIC CORPORATIONS AND ASSOCIATIONS
• Ch. 4: Indiana Business Development Credit Corporation Law

Text

Any lending institution may become a
member of a credit corporation by entering into a lending agreement
with the credit corporation on such form and in such manner as the
board of directors of the credit corporation may require. Membership
in a credit corporation becomes effective upon execution of such an
agreement. Each member shall lend funds to the credit corporation
according to the terms of the lending agreement. The board of directors
of the credit corporation shall determine and approve the terms for
lending agreements, subject to the following conditions:
(1) The total amount outstanding on loans to the credit
corporation made by any member under its lending agreement or
otherwise at any time, when added to the amount of the
investment in the capital stock of the credit corporation then held
by that member, may not exceed the lesser of:
(A) any limit established by applicable state or federal law; or
(B) the loan limit for that member.
(2) All loans made to the credit corporation by members must be
evidenced by bonds, debentures, notes, or other evidences of
indebtedness of the credit corporation.
(3) The board of directors of the credit corporation shall
determine the interest rate for the debt instruments referred to in
subdivision (2).

Legislative History

As added by P.L.236-1985, SEC.1.