1. (a) Except as necessary to prevent a loss on a loan previously made in good faith, a commercial bank may not:

   1. (1) Make any loan secured by any of its outstanding capital stock; or
   2. (2) Buy or hold any of its outstanding capital stock.

2. (b) If a commercial bank buys or holds any of its outstanding capital stock, the commercial bank shall sell the stock at public or private sale within:

   1. (1) 1 year after the date of acquisition; or
   2. (2) Any longer period that the Commissioner authorizes.

Added by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1996, c. 326, § 2, eff. July 1, 1996.

Formerly Art. 11, § 80.