§ 28-15-6-1 — Limits on loans made to single borrower; derivative transactions

Indiana § 28-15-6-1

• Jurisdiction: Indiana
• Art. 15: SAVINGS ASSOCIATIONS
• Ch. 6: Lending Limits

Text

(a) The following limits apply to the loans that
a savings association may make to one (1) borrower:
(1) Loans that a savings association may make to one (1)
borrower are restricted by the provisions of 12 U.S.C. 84 and 12
CFR 32.
(2) Notwithstanding subdivision (1), a savings association may
loan to one (1) borrower no more than the lesser of:
(A) an amount equal to four percent (4%) of the assets of the
savings association; or
(B) five hundred thousand dollars ($500,000).
(3) Notwithstanding subdivisions (1) and (2), a savings
association may make loans to one (1) borrower to develop
domestic residential housing units in an amount equal to or less
than thirty percent (30%) of the savings association's unimpaired
capital and surplus if:
(A) the final purchase price of each single family dwelling unit
whose development is financed under this section does not
exceed five hundred thousand dollars ($500,000);
(B) loans made under this subdivision to all borrowers do not
in the aggregate exceed one hundred fifty percent (150%) of the
savings association's unimpaired capital and surplus; and
(C) the loans made under this subdivision comply with the
applicable loan to value requirements that apply to federal
savings associations.
(b) For purposes of any lending limits set forth under this article
with respect to savings associations, the total loans and extensions of
credit by a savings association includes any credit exposure to a person
arising from a derivative transaction (as defined in 12 U.S.C. 84(b)(3))
between the savings association and the person.

Legislative History

As added by P.L.193-1997, SEC.2. Amended by P.L.27-2012, SEC.112.