§ 28-14-3-4 — Loans

Indiana § 28-14-3-4

• Jurisdiction: Indiana
• Art. 14: CORPORATE FIDUCIARIES
• Ch. 3: Powers and Duties

Text

(a) A corporate fiduciary may:
(1) lend money; and
(2) receive and hold real and personal property as security for the
repayment of loans;
only as authorized in this section.
(b) A corporate fiduciary may make a loan to a fiduciary account it
administers and may take security for the loan, unless the governing
document prohibits borrowing money and pledging account assets. The
terms of a loan described in this subsection must be comparable to the
terms available from other lenders.
(c) A corporate fiduciary may make a loan to a director, an officer,
or an employee of the corporate fiduciary. A loan made under this
subsection must be adequately secured. Loans made under this
subsection by a corporate fiduciary may not:
(1) total more than ten thousand dollars ($10,000) for each
individual; or
(2) exceed five percent (5%) of total equity capital when all loans
to directors, officers, and employees are aggregated.
(d) Loans made to directors, officers, and employees under
subsection (c) must be made exclusively from corporate funds. Funds
from a fiduciary account may not be used to make or secure a loan
under subsection (c).

Legislative History

As added by P.L.262-1995, SEC.90.