§ 142 — Limitations on, and regulation of, bank holding companies

§ 142. Limitations on, and regulation of, bank holding companies. 1.\nIt shall be unlawful for any person knowingly to borrow, directly or\nindirectly, any money or property for the purpose of enabling such\nperson to pay for or to hold shares of stock of a bank holding company\nfrom any subsidiary of such bank holding company, unless such borrowing\nis made upon security having an ascertained market value of at least\nfifteen per centum more than the amount thereof. Any person knowingly\nviolating the provisions of this subdivision shall, for each offense,\nforfeit to the people of the state twice the amount of such borrowing.\n 2. Except in conformity with such rules and regulations as may be\npromulgated by the superintendent, it shall be unlawful for any\nexecutive officer or director of a bank holding company to borrow any\nsum of money from any subsidiary of such bank holding company. Every\nexecutive officer or director of such bank holding company violating the\nprovisions of this subdivision shall, for each offense, forfeit to the\npeople of the state twice the amount of such borrowing or borrowings.\n