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Can you summarize IC 28-1-13?
DEPARTMENT OF FINANCIAL INSTITUTIONS > Loans and Investments of Banks and Trust Companies
Short Summary
This legal document, governed by the Indiana Code, specifically the section related to the Department of Financial Institutions and the Loans and Investments of Banks and Trust Companies, establishes limits on the total loans and extensions of credit that a bank can provide to a single borrower. The document distinguishes between loans and extensions that are not fully secured and those that are fully secured by readily marketable collateral. For loans not fully secured, the bank’s total exposure to a single borrower may not exceed fifteen percent (15%) of the bank’s unimpaired capital and unimpaired surplus. For loans fully secured, the limit is set at ten percent (10%) of the bank’s unimpaired capital and unimpaired surplus. Additionally, the document states that the total loans and extensions of credit by a bank also include any credit exposure arising from derivative transactions between the bank and the borrower. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Banks and Trust Companies
What does it govern?
Loans and Investments of Banks and Trust Companies
What are exemptions?
The limitations contained in section 1.5 of this chapter are subject to the exceptions set forth in 12 CFR 32.3.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Indiana