(a) A state trust company's total outstanding loans and extensions of credit to a person other than an insider shall not exceed an amount equal to twenty percent (20%) of the state trust company's capital base.
(b) (1) The aggregate loans and extensions of credit outstanding at any time to insiders of the state trust company shall not exceed an amount equal to twenty percent (20%) of the state trust company's capital base.(2) A covered transaction between an insider and a state trust company shall be engaged in only on terms and under circumstances, including credit standards, that are substantially the same as those for comparable transactions with a noninsider.
(1) The aggregate loans and extensions of credit outstanding at any time to insiders of the state trust company shall not exceed an amount equal to twenty percent (20%) of the state trust company's capital base.
(2) A covered transaction between an insider and a state trust company shall be engaged in only on terms and under circumstances, including credit standards, that are substantially the same as those for comparable transactions with a noninsider.
(c) (1) The Bank Commissioner may adopt rules to implement and administer this section.(2) The commissioner may include rules:(A) To establish limits, requirements, or exemptions other than those specified by this section for particular classes or categories of loans or extensions of credit; and(B) Establish collective lending and investment limits.
(1) The Bank Commissioner may adopt rules to implement and administer this section.
(2) The commissioner may include rules:(A) To establish limits, requirements, or exemptions other than those specified by this section for particular classes or categories of loans or extensions of credit; and(B) Establish collective lending and investment limits.
(A) To establish limits, requirements, or exemptions other than those specified by this section for particular classes or categories of loans or extensions of credit; and
(B) Establish collective lending and investment limits.
(d) The commissioner may determine whether a loan or extension of credit made to a person will be attributed to another person for purposes of this section.
(e) A state trust company shall not lend trust deposits, except that a trustee may make a loan to a beneficiary of the trust if the loan is expressly authorized or directed by the instrument or transaction establishing the trust.
(f) (1) An officer or director of a state trust company who shall knowingly make or approve a loan in violation of this section or who shall knowingly permit such a loan to be made, or who shall fail to exercise his or her authority to prevent the making of the loan shall be personally liable to the state trust company, or to the commissioner, for the full amount of the loan.(2) However, written notice of disapproval of the loan, served on the board of the state trust company and also the commissioner at the time the making or existence of the loan first comes to his or her knowledge, shall relieve an officer or director from personal liability.
(1) An officer or director of a state trust company who shall knowingly make or approve a loan in violation of this section or who shall knowingly permit such a loan to be made, or who shall fail to exercise his or her authority to prevent the making of the loan shall be personally liable to the state trust company, or to the commissioner, for the full amount of the loan.
(2) However, written notice of disapproval of the loan, served on the board of the state trust company and also the commissioner at the time the making or existence of the loan first comes to his or her knowledge, shall relieve an officer or director from personal liability.