§ 23-38-211 - Restrictions as to loans.
23-38-211. Restrictions as to loans.
(a) No building and loan association shall make a mortgage loan to an officer, director, or employee of the association, either directly or indirectly, unless the loan is first approved unanimously by the members of the board of directors present at the next regular board meeting, the approval to be recorded by aye and nay vote in the minutes of the meeting of the board.
(b) No building and loan association shall make loans exceeding, in the aggregate:
(1) Five thousand dollars ($5,000) to one (1) borrower upon real estate security if the assets of the association do not exceed fifty thousand dollars ($50,000);
(2) Ten thousand dollars ($10,000) to one (1) borrower upon real estate security if the assets of the association do not exceed two hundred thousand dollars ($200,000);
(3) Fifteen thousand dollars ($15,000) to one (1) borrower upon real estate security if the assets of the association do not exceed five hundred thousand dollars ($500,000);
(4) Twenty-five thousand dollars ($25,000) to one (1) borrower upon real estate security if the assets of the association do not exceed two million five hundred thousand dollars ($2,500,000);
(5) One percent (1%) of the assets of the association to one (1) borrower on real estate security if the assets of the association exceed two million five hundred thousand dollars ($2,500,000).