§ 28-1-13-1.8 — Limit on obligations secured by documents or instruments covering livestock; dealer discount of paper securing sale of dairy cattle with payment guaranteed by seller

Indiana § 28-1-13-1.8

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

Text

8. (a) Loans and extensions of credit secured
by shipping documents or instruments transferring or securing title
covering livestock or giving a lien on livestock when the market value
of the livestock securing the obligation is not at any time less than one
hundred fifteen percent (115%) of the face amount of the note covered
are subject under this section, notwithstanding the collateral
requirements set forth in section 1.5(b) of this chapter, to a maximum
limitation equal to twenty-five percent (25%) of the capital and surplus.
(b) Loans and extensions of credit that arise from the discount by
dealers in dairy cattle of paper given in payment for dairy cattle, which
paper carries a full recourse endorsement or unconditional guarantee
of the seller and that are secured by the cattle being sold, are subject
under this section, notwithstanding the collateral requirements set forth
in section 1.5(b) of this chapter, to a limitation of twenty-five percent
(25%) of the capital and surplus.

Legislative History

As added by P.L.14-1992, SEC.90. Amended by P.L.141-2005, SEC.7.