§ 6.1-194.21. Loans to executive officers or directors
A. No executive officer or director of any savings institution shall borrow any amount more than $25,000 from the institution until such loan has been approved (i) by a majority of the directors of the institution or (ii) by a committee of officers and directors, which shall include at least one director appointed by the board of directors with authority to approve loans. An executive officer is one who participates or has authority to participate in the major policy-making functions of the savings institution.
B. 1. The following loans or lines of credit shall be specifically approved by a majority of the directors of the institution or by the committee of officers and directors as described in subsection A of this section, in which case such approval shall be reported to the board of directors at its next regular meeting:
a. Any loan in an amount of $25,000 or more made to any executive officer or director of an institution or any entity which the Commission determines is controlled by one or more executive officers or directors;
b. Any loan made to the persons or entities described in subdivision 1 a of this subsection, the amount of which together with all other obligations, direct or indirect, of such executive officer, director or controlled entity is $100,000 or more;
c. Any line of credit for $25,000 or more made to the persons or entities described in subdivision 1 a of this subsection; or
d. Any line of credit made to the persons or entities described in subdivision 1 a of this subsection, which with all the other obligations, direct or indirect, of such executive officer, director or controlled entity is $100,000 or more.
2. No extension, renewal or renegotiation of any loan or line of credit in excess of the amounts described in subdivision 1 of this subsection shall be made to any of those individuals or entities or their interests, unless it is approved by a majority of the board of directors or by the committee of officers and directors appointed by the board. In the case of approval by the committee, such approval shall be specifically reported to the board of directors at its next regular meeting.
3. The prohibitions set forth in this subsection shall not be construed to require approval by the board of directors for advances under previously authorized lines of credit.
C. The aggregate amount of a savings institution's loans to its executive officers or directors or their interests shall not be excessive. The Commission may promulgate such rules and regulations as may be required to prevent excessive aggregate amounts of lending by savings institutions to those individuals or entities.
(Code 1950, § 6.1-195.40:1; 1982, c. 103; 1985, c. 425; 1995, c. 83; 1996, c. 13.)
Sections: Previous 6.1-194.14 6.1-194.15 6.1-194.16 6.1-194.17 6.1-194.18 6.1-194.19 6.1-194.20 6.1-194.21 6.1-194.22 6.1-194.23 6.1-194.24 6.1-194.25 6.1-194.26 6.1-194.27 6.1-194.28 NextLast modified: April 2, 2009