Sec. 1.5. (a) The total loans and extensions of credit by a bank to a person outstanding at one (1) time and not fully secured, as determined in a manner consistent with subsection (b), by collateral having a market value at least equal to the amount of the loan or extension of credit may not exceed fifteen percent (15%) of the unimpaired capital and unimpaired surplus of the bank.

     (b) The total loans and extensions of credit by a bank to a person outstanding at one (1) time and fully secured by readily marketable collateral having a market value, as determined by reliable and continuously available price quotations, at least equal to the amount of the funds outstanding may not exceed ten percent (10%) of the unimpaired capital and unimpaired surplus of the bank. The limitation in this subsection is separate from and in addition to the limitation contained in subsection (a).

Terms Used In Indiana Code 28-1-13-1.5

  • loans and extensions of credit: has the meaning set forth in 12 C. See Indiana Code 28-1-13-1.2
  • person: includes an individual, a sole proprietorship, a partnership, a joint venture, an association, a trust, an estate, a business trust, a limited liability company, a corporation, a sovereign government, or an agency, an instrumentality, or a political subdivision thereof, or any similar entity or organization. See Indiana Code 28-1-13-1.3
  • unimpaired capital and unimpaired surplus: has the meaning set forth in 12 C. See Indiana Code 28-1-13-1.1
     (c) The total loans and extensions of credit by a bank includes any credit exposure to a person arising from a derivative transaction (as defined in 12 U.S.C. § 84(b)(3)) between the bank and the person.

As added by P.L.14-1992, SEC.87. Amended by P.L.27-2012, SEC.53.

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