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Can you summarize OHRC Section 1109.24?
State Banks - Powers > Extending credit to executive officer - reports.
Short Summary
This legal document governs the extension of credit by state banks to their own executive officers. It prohibits state banks from extending credit to executive officers, except as authorized by this section or another specified section. Any extension of credit made under this section must meet certain conditions, including being reported to the bank’s board of directors, being on terms not more favorable than those offered to non-executive borrowers, and requiring a detailed financial statement from the executive officer. The document also allows state banks to make loans to executive officers secured by a first lien on a dwelling, extend credit for the education of executive officers’ children, and make other extensions of credit as prescribed by the superintendent of financial institutions. However, state banks are prohibited from extending credit to partnerships in which executive officers have a majority interest, except as permitted by the superintendent. The document also includes provisions regarding endorsements or guarantees by executive officers, reporting requirements for loans made under this section, and the continuation of violations. Non-compliance with this document may result in penalties.
Whom does it apply to?
State banks and their executive officers
What does it govern?
Extension of credit to executive officers by state banks
What are exemptions?
Executive officers may endorse or guarantee loans or incur indebtedness for the protection or assistance of the bank.
What are the Penalties?
Each day of violation is considered a continuation of the violation.
Jurisdiction
Ohio