§ 54C-130. Limitation on loans to one borrower.
§54C‑130. Limitation on loans to one borrower.
(a) The total loans andextensions of credit, both direct and indirect, by a savings bank to anyperson, other than a municipal corporation for money borrowed, outstanding atone time and not fully secured, as determined in a manner consistent withsubsection (b) of this section, by collateral having a market value at leastequal to the amount of the loan or extension of credit shall not exceed fifteenpercent (15%) of the net worth of the savings bank. The total liabilities of afirm shall include the liabilities of the members of the firm.
(b) The total loans andextensions of credit, both direct and indirect, by a savings bank to any personoutstanding at one time and fully secured by readily marketable collateralhaving a market value, as determined by reliable and continuously availableprice quotations, at least equal to the amount of the funds outstanding shallnot exceed ten percent (10%) of the net worth of the savings bank. Thislimitation shall be separate from and in addition to the limitation containedin subsection (a) of this section.
(c) For purposes ofthis section, the term "person" is deemed to include an individual ora corporation, partnership, trust, association, joint venture, pool, syndicate,sole proprietorship, unincorporated organization, or any other form of entitynot specifically listed in this subsection. Loans or extensions of credit toone person include loans made to other persons when the proceeds of the loansor extensions of credit are to be used for the direct benefit of the firstperson or when the persons are engaged in a common enterprise.
(d) The limitations ofthis section shall not apply to loans or obligations to the extent that theyare secured or covered by guarantees or by commitments or agreements to takeover or purchase the same, made by any federal reserve bank or by the UnitedStates or any instrumentality of the United States, including any corporationwholly owned directly or indirectly by the United States.
(e) The limitations ofthis section shall not apply to loans or obligations made for the following:
(1) For any purposeotherwise permitted by this Chapter, not to exceed five hundred thousanddollars ($500,000);
(2) To develop domesticresidential housing units, not to exceed the lesser of thirty million dollars($30,000,000) or thirty percent (30%) of the savings bank's net worth if thepurchase price of each single family dwelling unit which is financed under thisprovision does not exceed five hundred thousand dollars ($500,000) and theloans or obligations made under this provision do not, in the aggregate, exceedone hundred fifty percent (150%) of the savings bank's net worth; or
(3) Loans to oneborrower to finance the sale of real property acquired in satisfaction of debtspreviously contracted in good faith, not to exceed fifty percent (50%) of thesavings bank's net worth. (1991, c. 680, s. 1.)