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Can you summarize MTCO 32-1-465?
Operation and Regulation > Limit on loans to officer, director, or principal shareholder
Short Summary
This legal document governs the limit on loans that a bank can extend to its officer, director, or principal shareholder. The general rule is that a bank cannot extend credit to these individuals in an amount that exceeds the bank’s unimpaired capital and unimpaired surplus. However, a bank with deposits of less than $100 million may increase this limit by resolution of its board of directors, as long as certain conditions are met. These conditions include determining that a higher limit is consistent with prudent, safe, and sound banking practices, providing the reasoning behind this determination, submitting the resolution to the department, and meeting applicable capital requirements. The document does not specify any specific penalties for non-compliance or violation of its provisions.
Whom does it apply to?
Banks
What does it govern?
Limit on loans to officer, director, or principal shareholder
What are exemptions?
A bank with deposits of less than $100 million may increase the general limit if certain conditions are met
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Montana