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Can you summarize LAAC Title 10, Part III, Chapter 3, Section 305?
Powers Subchapter A. Miscellaneous Lending > Loans Secured by Bank or Bank Holding Company Stock
Short Summary
This document governs loans secured by bank or bank holding company stock in Louisiana. It applies to Louisiana state-chartered banks, state-chartered savings banks, and holding companies that control a bank. The document outlines various provisions and requirements for such loans. It states that if holding company stock is used as collateral, the bank should review Section 23A of the Federal Reserve Act for compliance. The total dollar volume of loans secured by own bank or holding company stock should not exceed 10 percent of the bank’s Tier 1 leverage capital. The bank must maintain a list of all loans secured by its stock. Loans made to directors or executive officers must be fully disclosed to the bank’s board of directors and approved by a majority of the directors. Loans made for the purpose of disposition of stock acquired for debts previously contracted must have a documented assessment of the stock value. There are exemptions for loans made prior to a specific date, subject to certain conditions. The document also specifies circumstances under which a bank may have loans secured by its own stock. Any exceptions or waivers require the written approval of the commissioner.
Whom does it apply to?
Louisiana state-chartered banks, state-chartered savings banks, and holding companies that directly or indirectly control a bank
What does it govern?
Loans secured by bank or bank holding company stock
What are exemptions?
Loans secured by a bank's stock made prior to the effective date of R.S. 6:416(A), as amended by Act Number 371 of 1991, provided certain conditions are met
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Louisiana