Sec. 8. No bank or trust company shall make any loan or discount on the security of the shares of its own capital stock, nor be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss under a debt previously contracted in good faith; and stock so purchased or acquired shall, within six (6) months from the time of its purchase, be sold or disposed of at public or private sale, unless otherwise ordered by the department.
Formerly: Acts 1933, c.40, s.202.
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