(a) The aggregate amount of outstanding liabilities of a state bank for money borrowed exclusive of (1) capital notes and debentures issued under Alaska Stat. § 06.05.307, (2) obligations incurred in connection with the purchase of bank premises under Alaska Stat. § 06.05.230(1), and (3) agreements to repurchase securities, earlier sold by the bank, at the end of a stated period, may not at any time exceed 15 percent of the bank’s total assets, or a larger amount if approved by the department.

Terms Used In Alaska Statutes 06.05.255

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • bank: means a person doing a banking business, including persons subject to the law of this or another jurisdiction. See Alaska Statutes 06.05.990
  • capital: means the amount of outstanding common stock plus outstanding and perpetual preferred stock. See Alaska Statutes 06.05.990
  • department: means the Department of Commerce, Community, and Economic Development. See Alaska Statutes 06.05.990
  • good faith: means honesty in fact in the transaction and a reasonable ground for belief that the transaction is lawful, proper, or authorized. See Alaska Statutes 06.05.990
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • state: means the State of Alaska unless applied to the different parts of the United States and in the latter case it includes the District of Columbia and the territories. See Alaska Statutes 01.10.060
(b) Nothing in this section prevents a bank from rediscounting in good faith and endorsing any of its negotiable notes.
(c)[Repealed, Sec. 102 ch 26 SLA 1993].
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