§ 28-6.1-9-6 — Exceptions to lending limitations

Indiana § 28-6.1-9-6

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

Text

The limitations contained in section 5 of this
chapter are subject to the following exceptions:
(1) Loans or extensions of credit arising from the discount of
commercial or business paper evidencing an obligation to the
person negotiating the loan or extension of credit with recourse
are not subject to any limitation based on capital and surplus.
(2) The purchase of bankers' acceptances of the kind described in
12 U.S.C. 372 and issued by other banks are not subject to any
limitation based on capital and surplus.
(3) Loans and extensions of credit secured by bills of lading,
warehouse receipts, or similar documents transferring or securing
title to readily marketable staples are subject to a limitation of
thirty-five percent (35%) of capital and surplus in addition to the
general limitations if the market value of the staples securing each
additional loan or extension of credit at all times equals or
exceeds one hundred fifteen percent (115%) of the outstanding
amount of the loan or extension of credit. The staples shall be
fully covered by insurance whenever it is customary to insure
them.
(4) Loans or extensions of credit secured by bonds, notes,
certificates of indebtedness, or treasury bills of the United States
or by other similar obligations fully guaranteed as to principal and
interest by the United States are not subject to any limitation
based on capital and surplus.
(5) Loans or extensions of credit to or secured by unconditional
takeout commitment or guarantees of an agency, a board, a
bureau, a commission, a department, or other establishment of the
United States or corporation wholly owned directly or indirectly
by the United States are not subject to any limitation based on
capital and surplus.
(6) Loans or extensions of credit secured by a segregated deposit
account in the lending bank are not subject to any limitation based
on capital and surplus.
(7) Loans or extensions of credit to a financial institution or to a
receiver, conservator, superintendent of banks, or other agent in
charge of the business and property of the financial institution,
when the loans or extensions of credit are approved by the
director, are not subject to any limitation based on capital and
surplus.

Legislative History

As added by P.L.42-1993, SEC.72.