- (1) The Department of Financial Institutions enacts this rule under authority granted by Sections 7-1-301, 7-3-19, and 7-8-20.
- (2) The rule applies to all loans and extensions of credit, including credit exposure to a derivative transaction, made by banks and industrial loan corporations chartered in the state and their subsidiaries.
- (3) The rule is intended to prevent one person from borrowing an unduly large amount of a given bank's or industrial loan corporation's funds, thereby exposing the bank's or industrial loan corporation's depositors, creditors and stockholders to excessive risk.
- (4) The rule provides exceptions to the general lending limits set forth in Sections 7-3-19 and 7-8-20.
- (5) The rule does not apply to loans, extensions of credit and the credit exposure to a derivative transaction made by a bank or an industrial loan corporation to a subsidiary. The rule does not apply to loans, extensions of credit and the credit exposure to a derivative transaction that are subject to, or expressly exempted from, a federal statute or regulation limiting the amount of total loans and credit that may be extended to any person or group of persons.
KEY: loans, banks, industrial loan corporations
Date of Last Change: December 24, 2012
Notice of Continuation: September 21, 2022
Authorizing, and Implemented or Interpreted Law: 7-3-19; 7-8-20