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Can you summarize WVCS 106-06?
Banking > Subsidiary Bank Holding The Stock Of Its Parent Holding Company as Collateral
Short Summary
The provided legal document content is a rule that allows state-chartered banks to use the stock of their parent bank holding company as collateral for loans or extensions of credit. The rule is governed by the West Virginia Code of State Rules under the Banking section. It was filed on May 2, 1989, and became effective on the same date. The authority for this rule is W. Va. Code ‘31A-2-4(c)(11). According to the rule, a state-chartered bank can accept the stock of its parent bank holding company as collateral as long as the aggregate fair market value of all such parent bank holding company stock held as collateral does not exceed ten percent (10%) of the capital stock and surplus of the state-chartered bank. The rule does not mention any specific exemptions or penalties. It applies to state-chartered banks and their parent bank holding companies.
Whom does it apply to?
State-chartered banks and their parent bank holding companies.
What does it govern?
The rule permits a state chartered bank to hold the stock of its parent bank holding company as collateral for an extension of credit.
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
West Virginia