Appendix to Part 215 - Section 5200 of the Revised Statutes Total Loans and Extensions of Credit
12:2.0.1.1.16.0.6.13.22 :
Appendix to Part 215 - Section 5200 of the Revised Statutes Total
Loans and Extensions of Credit
(a)(1) The total loans and extensions of credit by a national
banking association to a person outstanding at one time and not
fully secured, as determined in a manner consistent with paragraph
(2) of this subsection, by collateral having a market value at
least equal to the amount of the loan or extension of credit shall
not exceed 15 per centum of the unimpaired capital and unimpaired
surplus of the association.
(2) The total loans and extensions of credit by a national
banking association to a person outstanding at one time and fully
secured by readily marketable collateral having a market value, as
determined by reliable and continuously available price quotations,
at least equal to the amount of the funds outstanding shall not
exceed 10 per centum of the unimpaired capital and unimpaired
surplus of the association. This limitation shall be separate from
and in addition to the limitations contained in paragraph (1) of
this subsection.
Definitions
(b) For the purposes of this section -
(1) The term loans and extensions of credit shall include
all direct or indirect advances of funds to a person made on the
basis of any obligation of that person to repay the funds or
repayable from specific property pledged by or on behalf of the
person, and to the extent specified by the Comptroller of the
Currency, such term shall also include any liability of a national
banking association to advance funds to or on behalf of a person
pursuant to a contractual commitment; and
(2) The term person shall include an individual, sole
proprietorship, partnership, joint venture, association, trust,
estate, business trust, corporation, sovereign government, or
agency, instrumentality, or political subdivision thereof, or any
similar entity or organization.
Exceptions
(c) The limitations contained in subsection (a) of this section
shall be subject to the following exceptions:
(1) Loans or extensions of credit arising from the discount of
commercial or business paper evidencing an obligation to the person
negotiating it with recourse shall not be subject to any limitation
based on capital and surplus.
(2) The purchase of bankers' acceptances of the kind described
in section 372 of this title and issued by other banks shall not be
subject to any limitation based on capital and surplus.
(3) Loans and extensions of credit secured by bills of lading,
warehouse receipts, or similar documents transferring or securing
title to readily marketable staples shall be subject to a
limitation of 35 per centum of capital and surplus in addition to
the general limitations if the market value of the staples securing
each additional loan or extension of credit at all times equals or
exceeds 115 per centum of the outstanding amount of such loan or
extension of credit. The staples shall be fully covered by
insurance whenever it is customary to insure such staples.
(4) Loans or extensions of credit secured by bonds, notes,
certificates of indebtedness, or Treasury bills of the United
States or by other such obligations fully guaranteed as to
principal and interest by the United States shall not be subject to
any limitation based on capital and surplus.
(5) Loans or extensions of credit to or secured by unconditional
takeout commitments or guarantees of any department, agency,
bureau, board, commission, or establishment of the United States or
any corporation wholly owned directly or indirectly by the United
States shall not be subject to any limitation based on capital and
surplus.
(6) Loans or extensions of credit secured by a segregated
deposit account in the lending bank shall not be subject to any
limitation based on capital and surplus.
(7) Loans or extensions of credit to any financial institution
or to any receiver, conservator, superintendent of banks, or other
agent in charge of the business and property of such financial
institution, when such loans or extensions of credit are approved
by the Comptroller of the Currency, shall not be subject to any
limitation based on capital and surplus.
(8)(A) Loans and extensions of credit arising from the discount
of negotiable or nonnegotiable installment consumer paper which
carries a full recourse endorsement or unconditional guarantee by
the person transferring the paper shall be subject under this
section to a maximum limitation equal to 25 per centum of such
capital and surplus, notwithstanding the collateral requirements
set forth in subsection (a)(2) of this section.
(B) If the bank's files or the knowledge of its officers of the
financial condition of each maker of such consumer paper is
reasonably adequate, and an officer of the bank designated for that
purpose by the board of directors of the bank certifies in writing
that the bank is relying primarily upon the responsibility of each
maker for payment of such 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 such maker shall be the sole
applicable loan limitations.
(9)(A) Loans and extensions of credit secured by shipping
documents or instruments transferring or securing title covering
livestock or giving a lien on livestock when the market value of
the livestock securing the obligation is not at any time less than
115 per centum of the face amount of the note covered, shall be
subject under this section notwithstanding the collateral
requirements set forth in subsection (a)(2) of this section, to a
maximum limitation equal to 25 per centum of such capital and
surplus.
(B) Loans and extensions of credit which arise from the discount
by dealers in dairy cattle of paper given in payment for dairy
cattle, which paper carries a full recourse endorsement or
unconditional guarantee of the seller, and which are secured by the
cattle being sold, shall be subject under this section,
notwithstanding the collateral requirements set forth in paragraph
(a)(2) of this section, to a limitation of 25 per centum of such
capital and surplus.
(10) Loans or extensions of credit to the Student Loan Marketing
Association shall not be subject to any limitation based on capital
and surplus.
Authority of Comptroller of the Currency
(d)(1) The Comptroller of the Currency may prescribe rules and
regulations to administer and carry out the purposes of this
section, including rules or regulations to define or further define
terms used in this section and to establish limits or requirements
other than those specified in this section for particular classes
or categories of loans or extensions of credit.
(2) The Comptroller of the Currency also shall have authority to
determine when a loan putatively made to a person shall for
purposes of this section be attributed to another person.
[48 FR 42806, Sept. 20, 1983]