§ 28-6.1-9-7 — Loan limitations for commercial paper carrying full recourse endorsements or unconditional guarantees

Indiana § 28-6.1-9-7

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

Text

(a) Loans and extensions of credit arising from
the discount of negotiable or nonnegotiable installment consumer paper
that carries a full recourse endorsement or an unconditional guarantee
by the person transferring the paper is subject to a maximum limitation
equal to twenty-five percent (25%) of the capital and surplus,
notwithstanding the collateral requirements in section 5(b) of this
chapter.
(b) If the savings bank's files or the knowledge of the savings bank's
officers of the financial condition of each maker of the consumer paper
is reasonably adequate, and an officer of the savings bank designated
for that purpose by the board of the savings bank certifies in writing
that the savings bank is relying primarily upon the responsibility of
each maker for payment of the loans or extensions of credit and not
upon any full or partial recourse endorsement or guarantee by the
transferor, the limitations of this section as to the loans or extensions
of credit of each maker are the only applicable loan limitations.

Legislative History

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