(1)

1. (a) A bank may not accept as collateral or acquire its own stock except when the taking of the collateral or acquisition of the stock is necessary to prevent loss upon a debt previously contracted in good faith.
2. (b) If a bank acquires stock as permitted under Subsection (1)(a), the bank shall sell the stock within 12 months from the date of the bank's acquisition.
3. (c) The value of all the stock held after acceptance or acquisition may not exceed 10% of the total capital of the bank.

(2)

1. (a) A bank may not:

   1. (i) make any loan or any extension of credit to any of its affiliates;
   2. (ii) invest any of its funds in the capital stock, bonds, debentures, or other obligations of any affiliate; or
   3. (iii) accept the capital stock, bonds, debentures, or other obligations of any affiliate as collateral security for advances made to any person unless authorized by the commissioner by order.
2. (b) The exception of Subsection (2)(a)(iii) may not be inconsistent with similar exceptions applicable to national banks under federal law.