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Developed and maintained by the Division of Legislative Automated Systems.
1995 SESSION
LD0238681Be it enacted by the General Assembly of Virginia:
1. That § 6.1-62 of the Code of Virginia is amended and reenacted as follows:
§ 6.1-62. Loans to executive officers or directors.
A. No executive officer or director of any bank shall borrow any amount more
than $15,000 $25,000 from such bank until after such
loan, including the granting of a line of credit, has been
approved by a majority of the directors or by a committee of officers or
directors which shall include at least one director appointed by the board of
directors with authority to approve loans. The board of directors may by
proper resolution authorize certain officers to handle renewals of such loans
of less than $25,000. An executive officer is one who participates or
has authority to participate in the major policy-making functions of the
bank.
B. Whenever any loan, including the granting of a line of credit
in an amount of $25,000 or more or whenever any loan, the amount
of which loan together with all the other obligations,
direct or indirect, of such executive officer, director,
employee or controlled entity is $100,000 or more or five percent of
the bank's total capital and surplus, excluding undivided profits, whichever
is less is made to any executive officer, or
director, or employee of a bank, or to any entity which the
Commission determines is controlled by one or more executive
officers, or directors, or employees
thereof, and whenever any line of credit for $25,000 or more or which
with all the other obligations, direct or indirect, of such officer,
director, or employee or controlled entity would be $100,000 or more or five
percent of the bank's total capital and surplus, excluding undivided profits,
whichever is less, such loan or line of credit shall be specifically
approved by a majority of the bank's board of directors or the committee of
officers or and directors described in subsection
A. In the case of approval by the committee it shall be reported to the
board at its next meeting. No extension, renewal or renegotiation of any such
loan or line of credit in excess of the amounts described in this
subsection or in subsection A shall be made, to any of the foregoing
individuals or their interests, unless it is approved by a majority of the
board of directors or by the committee of officers or
and directors so appointed. In the case of approval by the committee it
shall be specifically reported to the board of directors at its next regular
meeting. The prohibitions herein shall not be construed to require approval
by the Board board of directors of advances under a
previously authorized line of credit.
C. The aggregate amount of a bank's loans to its officers, directors, employees, or their interests shall not be excessive. The Commission shall establish such regulations as may be required to prevent excessive aggregate amounts of lending by banks to such persons and their interests.