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Can you summarize WARC 30B.04.070?
General provisions. > Limits on loans to insiders and affiliatesExceptions.
Short Summary
This section of the Revised Code of Washington, specifically under the Washington Trust Institutions Act, establishes limits on loans and extensions of credit by state trust companies to insiders and affiliates. State trust companies are prohibited from making loans or extensions of credit to any person, except in relation to nonfiduciary corporate funds and subject to the provisions outlined in this section. Loans or leases to insiders are only permitted to the extent allowed for state banks under federal reserve board regulation O. Similarly, loans or leases to affiliates are determined by the director through rulemaking, with guidance from sections 23a and 23b of the federal reserve act and federal reserve board regulation W. However, state trust companies may make loans or extensions of credit in relation to nonfiduciary corporate funds with the approval of the director upon written application. The director has the authority to adopt rules and impose additional conditions and restrictions on loans and extensions of credit by state trust companies, as long as they are not inconsistent with this section.
Whom does it apply to?
State trust companies
What does it govern?
Limits on loans to insiders and affiliates
What are exemptions?
Exceptions are provided for loans or extensions of credit in relation to nonfiduciary corporate funds, loans or leases to insiders permitted under federal reserve board regulation O, and loans or leases to affiliates as determined by the director or guided by federal reserve act and regulation W.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Washington