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Can you summarize 9-B MERS Section 465-A?
PROHIBITIONS > Loans to stockholders, directors or officers
Short Summary
This section of the Maine Revised Statutes governs loans made by financial institutions to their principal stockholders, policy-making officers, directors, or any related interest of those persons. The section outlines the authorization, terms, and creditworthiness requirements for such loans. It also establishes limitations on the amount of loans that can be granted, requiring prior approval from the board of directors and abstention from interested parties during the voting process. The section further addresses lines of credit, liability for making loans in violation of the section, and the consequences of violations. Violations result in immediate repayment of the loan and potential civil action by the Attorney General. The superintendent has the authority to adopt rules to administer and carry out this section.
Whom does it apply to?
Financial institutions authorized to do business in Maine
What does it govern?
Loans to stockholders, directors or officers
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Personal responsibility for payment of the loan and guilty of a Class E crime
Jurisdiction
Maine