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Financial Institutions Act | |
Industrial Banks | |
Section 20 | Limitations on loans to one borrower -- Exceptions -- Rules. |
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7-8-20. Limitations on loans to one borrower -- Exceptions -- Rules. (1) Except as provided in this section, the total loans and extensions of credit by any industrial bank to any person outstanding at any one time may not exceed 15% of the industrial bank's total capital. (2) Subsection (1) does not apply to an extension of credit that is subject to, or expressly exempted from, a federal statute or federal regulation limiting the amount of total loans and credit that may be extended to any person or group of persons. (3) The commissioner may by rule: (a) exempt from Subsection (1) any class of loans or class of extensions of credit that are adequately secured or are not otherwise a risk to the safe and sound operation of an industrial bank; (b) define terms and phrases necessary to interpret and implement this section; (c) adopt standards for aggregating or segregating loans to the same or different persons; (d) describe records required to be maintained; (e) require specific actions to be taken by an institution's board of directors or executive officers; and (f) prescribe other actions necessary to interpret and implement this section.
Amended by Chapter 92, 2004 General Session |
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