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Can you summarize OHRC Section 1109.23?
State Banks - Powers > Extending credit to executive officers, directors, principal shareholders or to related interests.
Short Summary
This legal document governs the extension of credit by state banks to their executive officers, directors, principal shareholders, or related interests. State banks are prohibited from extending credit to these individuals, except as authorized by this document and other relevant sections of the Ohio Revised Code. If credit is extended, it must be on the same terms as those offered to non-executive officers, directors, principal shareholders, or employees of the bank. The extension of credit should not involve more than the normal risk of repayment and must follow credit underwriting procedures that are not less stringent than those applicable to comparable transactions. The document also sets limits on the amount of credit that can be extended and requires approval by the bank’s board of directors. Exceptions are allowed for benefit or compensation programs available to all employees of the bank. There are no specific penalties mentioned in this document.
Whom does it apply to?
State banks, executive officers, directors, principal shareholders, and their related interests
What does it govern?
Extension of credit to executive officers, directors, principal shareholders, or related interests by state banks
What are exemptions?
Extensions of credit made pursuant to a benefit or compensation program available to all employees of the bank, without preference to officers, directors, or principal shareholders
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Ohio