A subsidiary bank may not extend credit, secured or unsecured, in excess of the bank's legal lending limit to the bank's holding company or any of the holding company's subsidiaries. In this section, to extend credit includes:

1. (1) loans;
2. (2) the purchase of securities or other assets under a repurchase agreement;
3. (3) the discount of promissory notes, bills of exchange, conditional sales contracts, or other similar paper; and
4. (4) advances made against collateral security in the form of capital stock, bonds, debentures, or other obligations of the domestic bank holding company or its subsidiaries.

(Eff. 7/31/69, Register 31; am 4/6/79, Register 70; am 1/10/94, Register 129)

Authority: AS 06.05.005