Ask Reggi Your Question Now
Can you summarize WVCO 31A-4-26?
BANKING INSTITUTIONS AND SERVICES GENERALLY. > Limitation on loans and extensions of credit; limitation on investments; loans to executive officers and directors of banks and employees of the banking department; exceptions; valuation of securities.
Short Summary
This legal document governs the limitation on loans and extensions of credit, limitation on investments, loans to executive officers and directors of banks and employees of the banking department, exceptions, and valuation of securities. It applies to state-chartered banking institutions, persons, common enterprises, directors, executive officers, and employees of the Division of Financial Institutions. The document sets limitations on the total loans and extensions of credit that can be made by a state-chartered banking institution to any one person or common enterprise. It also establishes limitations on investments in securities by state-chartered banking institutions. The document provides exceptions to these limitations for certain types of loans and extensions of credit. Additionally, it outlines the rules for loans to executive officers and directors, as well as employees of the Division of Financial Institutions. The valuation of securities purchased by state-chartered banking institutions is also addressed in the document. No specific penalties are mentioned in this document.
Whom does it apply to?
State-chartered banking institutions, persons, common enterprises, directors, executive officers, employees of the Division of Financial Institutions
What does it govern?
Limitation on loans and extensions of credit; limitation on investments; loans to executive officers and directors of banks and employees of the banking department; exceptions; valuation of securities
What are exemptions?
Loans or extensions of credit arising from the discount of commercial or business paper, purchase of bankers' acceptances, loans and extensions of credit secured by certain documents transferring or securing title to readily marketable staples, loans or extensions of credit secured by certain government obligations, loans or extensions of credit to or secured by unconditional takeout commitments or guarantees of certain entities, loans or extensions of credit secured by a segregated deposit account, loans or extensions of credit to certain banking institutions or receivers, conservators, or agents, loans and extensions of credit arising from the discount of negotiable or nonnegotiable installment consumer paper, loans and extensions of credit secured by shipping documents or instruments transferring or securing title covering livestock, loans or extensions of credit to the Student Loan Marketing Association, loans or extensions of credit to a corporation owning the property in which the state-chartered banking institution is located
What are the Penalties?
No penalties are mentioned.
Jurisdiction
West Virginia