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Can you summarize 205 ILCS 5/37?
Illinois Banking Act. >
Short Summary
This section of the Illinois Banking Act, specifically Section 37, governs loans to officers and loans on and purchases of a state bank’s own stock. It prohibits state banks from making loans or extensions of credit in excess of certain limits to its president, vice presidents, salaried officers or employees, directors, or corporations or firms controlled by them, without prior approval from the board of directors. Additionally, state banks are not allowed to make loans or discounts on the security of their own capital stock, preferred stock, debentures, or evidences of debt that are convertible into capital stock or are junior or subordinate in right of payment to deposit or other liabilities of the bank. The section also provides definitions for the term ‘control’ and establishes presumptions of control based on ownership or voting power of securities. No specific penalties are mentioned in this section.
Whom does it apply to?
State banks
What does it govern?
Loans to officers and loans on and purchases of bank's own stock
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Illinois