§ 13-3-203 — Borrowing

(a) A bank may borrow on and pledge assets of the bank as
security for temporary purposes. If it appears that any bank is
habitually borrowing for the purpose of reloaning the state
banking commissioner may require the bank to pay off the
borrowed money. A bank is not prevented from rediscounting in
good faith and endorsing any of its negotiable notes.
(b) Repealed by Laws 1992, ch. 46, § 2.
(c) No bank shall sell or rediscount "without recourse"
any notes or other negotiable securities on which the bank is in
any way liable under purchase or guarantee agreements and any
purchaser of notes or negotiable securities purchased "without
recourse" shall look to the maker or guarantor of the notes or
negotiable securities only for payment.
(d) Any bank may borrow money from a federal reserve bank
or federal home loan bank in the manner required by the rules,
laws and regulations of the federal reserve banks or federal
home loan bank, as applicable. A bank borrowing pursuant to
this section may pledge assets of the bank as security for the
borrowing.
(e) Repealed by Laws 1992, ch. 46, § 2.
(f) State chartered banks may engage in other borrowing
activities subject to approval of the commissioner.