§ 28-1-13-1.5 — Limits on total loans and extensions of credit to one borrower; loans and extensions not fully secured; loans and extensions fully secured; derivative transactions

Indiana § 28-1-13-1.5

• Jurisdiction: Indiana
• Art. 1: DEPARTMENT OF FINANCIAL INSTITUTIONS
• Ch. 13: Loans and Investments of Banks and Trust Companies

Text

5. (a) The total loans and extensions of credit
by a bank to a person outstanding at one (1) time and not fully secured,
as determined in a manner consistent with subsection (b), by collateral
having a market value at least equal to the amount of the loan or
extension of credit may not exceed fifteen percent (15%) of the
unimpaired capital and unimpaired surplus of the bank.
(b) The total loans and extensions of credit by a bank to a person
outstanding at one (1) time and fully secured by readily marketable
collateral having a market value, as determined by reliable and
continuously available price quotations, at least equal to the amount of
the funds outstanding may not exceed ten percent (10%) of the
unimpaired capital and unimpaired surplus of the bank. The limitation
in this subsection is separate from and in addition to the limitation
contained in subsection (a).
(c) The total loans and extensions of credit by a bank includes any
credit exposure to a person arising from a derivative transaction (as
defined in 12 U.S.C. 84(b)(3)) between the bank and the person.

Legislative History

As added by P.L.14-1992, SEC.87. Amended by P.L.27-2012, SEC.53.