§ 28-1-13-1.7 — Limit on total consumer credit obligation of one borrower

Indiana § 28-1-13-1.7

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

Text

7. (a) Loans and extensions of credit arising
from the discount of negotiable or nonnegotiable installment consumer
paper that carries a full recourse endorsement or unconditional
guarantee by the person transferring the paper is subject under this
section to a maximum limitation equal to twenty-five percent (25%) of
the capital and surplus, notwithstanding the collateral requirements set
forth in section 1.5(b) of this chapter.
(b) If the bank's files or the knowledge of the bank's officers of the
financial condition of each maker of such consumer paper is reasonably
adequate, and an officer of the bank designated for that purpose by the
board of directors of the bank certifies in writing that the bank is
relying primarily upon the responsibility of each maker for payment of
the loans or extensions of credit and not upon any full or partial
recourse endorsement or guarantee by the transferor, the limitations of
this section as to the loans or extensions of credit of each such maker
shall be the sole applicable loan limitations.

Legislative History

As added by P.L.14-1992, SEC.89.