§ 28-6.1-9-5 — 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 § 28-6.1-9-5

• Jurisdiction: Indiana
• Art. 6.1: SAVINGS BANKS
• Ch. 9: Lending Limitations of Savings Banks

Text

(a) The total loans and extensions of credit by
a savings 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 savings bank.
(b) The total loans and extensions of credit by a savings 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 savings 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 savings 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 savings bank
and the person.

Legislative History

As added by P.L.42-1993, SEC.72. Amended by P.L.27-2012, SEC.86.