32.1—Authority, purpose and scope.
(a) Authority.
This part is issued pursuant to 12 U.S.C. 1
et seq.,
12 U.S.C. 84, and 12 U.S.C. 93a.
(b) Purpose.
The purpose of this part is to protect the safety and soundness of national banks by preventing excessive loans to one person, or to related persons that are financially dependent, and to promote diversification of loans and equitable access to banking services.
(c) Scope.
(1)
This part applies to all loans and extensions of credit made by national banks and their domestic operating subsidiaries. This part does not apply to loans made by a national bank and its domestic operating subsidiaries to the bank's “affiliates,” as that term is defined in 12 U.S.C. 371c(b)(1) and (e), as implemented by section 223.2(a) of Regulation W, to the bank's operating subsidiaries, or to Edge Act or Agreement Corporation subsidiaries.
(2)
The lending limits in this part are separate and independent from the investment limits prescribed by 12 U.S.C. 24 (Seventh), and a national bank may make loans or extensions of credit to one borrower up to the full amount permitted by this part and also hold eligible securities of the same obligor up to the full amount permitted under 12 U.S.C. 24 (Seventh) and 12 CFR part 1.
(3)
Extensions of credit to executive officers, directors and principal shareholders of national banks, and their related interests are subject to limits prescribed by 12 U.S.C. 375a and 375b in addition to the lending limits established by 12 U.S.C. 84 and this part.
(4)
In addition to the foregoing, loans and extensions of credit made by national banks and their domestic operating subsidiaries must be consistent with safe and sound banking practices.