Sec. 7. (a) Loans and extensions of credit arising from the discount of negotiable or nonnegotiable installment consumer paper that carries a full recourse endorsement or an unconditional guarantee by the person transferring the paper is subject to a maximum limitation equal to twenty-five percent (25%) of the capital and surplus, notwithstanding the collateral requirements in section 5(b) of this chapter.
(b) If the savings bank's files or the knowledge of the savings bank's officers of the financial condition of each maker of the consumer paper is reasonably adequate, and an officer of the savings bank designated for that purpose by the board of the savings bank certifies in writing that the savings bank is relying primarily upon the responsibility of each maker for payment of the loans or extensions of credit and not upon any full or partial recourse endorsement or guarantee by the transferor, the limitations of this section as to the loans or extensions of credit of each maker are the only applicable loan limitations.
As added by P.L.42-1993, SEC.72.
Structure Indiana Code
Title 28. Financial Institutions
Chapter 9. Lending Limitations of Savings Banks
28-6.1-9-1. "Capital and Surplus" and "Unimpaired Capital and Surplus" Defined
28-6.1-9-2. Loans and Extensions of Credit
28-6.1-9-6. Exceptions to Lending Limitations
28-6.1-9-8. Special Limits for Obligations Secured by Livestock or Dairy Cattle
28-6.1-9-9. Extensions of Credit to Officers, Directors, Trustees, and Principal Shareholders
28-6.1-9-10. Loans or Discounts on Security and Purchase or Holding of Bank's Own Capital Stock
28-6.1-9-11. Conformity With Lending Limitations; Sanctions
28-6.1-9-14. Application of Federal Regulations
28-6.1-9-15. Receiving Fees, Commissions, Gifts, or Things of Value; Violation