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).
(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.
Structure Indiana Code
Title 28. Financial Institutions
Article 1. Department of Financial Institutions
Chapter 13. Loans and Investments of Banks and Trust Companies
28-1-13-1.1. "Capital and Surplus" or "Unimpaired Capital and Unimpaired Surplus" Defined
28-1-13-1.2. "Loans and Extensions of Credit" Defined
28-1-13-1.6. Exceptions to Limitations on Loans or Extensions of Credit to One Borrower
28-1-13-1.7. Limit on Total Consumer Credit Obligation of One Borrower
28-1-13-7.1. State Chartered Banks; Real Estate Loans
28-1-13-8. Loans on Security of Own Shares; Acquisition of Shares; Disposition
28-1-13-11. Reduction of Existing Obligations Held in Excess of Limitations