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Can you summarize FLCL 658.48?
BANKS AND TRUST COMPANIES > Loans.
Short Summary
This section of the Florida Statutes governs the loans and extensions of credit made by state banks. It sets limitations and provisions for such loans. A bank may extend credit to any person up to 15 percent of its capital accounts for unsecured loans and lines of credit, and up to 25 percent of its capital accounts for fully secured loans and lines of credit. However, when loans consist of both secured and unsecured portions, the secured and unsecured portions together may not exceed 25 percent and 15 percent of the capital accounts, respectively. The section also imposes limitations on loans to executive officers, directors, and their related interests, as well as loans to other persons. There are special provisions regarding loans made to corporations and loans secured by shares of capital stock. The section requires loan documentation to be written in English or contain an English translation. It also provides exemptions for certain types of loans and requires board approval for lending activities. Officers and directors are personally liable for willful violations of this section.
Whom does it apply to?
State banks
What does it govern?
Loans and extensions of credit made by state banks
What are exemptions?
Loans fully secured by assignment of a savings account or certificate of deposit of the lending bank; loans fully secured by notes, bonds, or other evidences of indebtedness issued by the United States Government or fully guaranteed by the United States Government or its agencies; loans made to district school boards secured by assigned revenues from the state; purchased participations in pools of loans carried as investments
What are the Penalties?
Officers and directors are personally liable for any loss resulting from a willful violation of this section
Jurisdiction
Florida