Limitations upon loans by national banking associations.
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Limitations upon loans by national banking associations.

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Published by [s.n.] in Washington .
Written in English

Subjects:

  • Banks and banking,
  • National banks (United States),
  • Loans

Book details:

Edition Notes

Other titlesLimitations upon loans by national banks
SeriesS.rp.367
The Physical Object
FormatElectronic resource
Pagination2 p.
ID Numbers
Open LibraryOL16129170M

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The limitation on national banks in this respect is that the loans to any one person shall not exceed 10 per cent of the bank's capital and surplus and 30 per cent of its capital, but " the discount of bills of exchange in good faith against actually existing values and the discount of commercial or business paper actually owned by the person. Appendix--Sec. 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. 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. 1 Section 5A of the Home Owners’ Loan Act (12 USC a), as implemented by 12 CFR , authorizes FSAs with total assets of $20 billion or less, as reported to the Comptroller as of Decem , to engage in national bank powers and operate as “covered savings associations.”A covered savings association has the same rights and.

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 (2) The purchase of bankers' acceptances of the kind described in. 12 U.S.C.A. § Corporate powers of associations [Jump to Eleventh] Upon duly making and filing articles of association and an organization certificate the [a national banking] association shall become, as from the date of the execution of its organization certificate, a body corporate, and. This edition updates the list of permissible activities to: reflect precedent issued since the last edition as well as other relevant precedent not included in previous editions; streamline certain entries for readability; and specifically, for federal savings associations, include applicable interpretive letters and corporate decisions issued. (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 .

  The Disadvantages of Non-Bank Loans. Banks emerged as lenders in the United States in the lates and held their prominence through many centuries since, acccording to the Economic History Association. In recent decades, though, with the spread of mortgages, small-business loans and credit cards, many non-bank. A national bank's or savings association's total outstanding loans and extensions of credit to one borrower may not exceed 15 percent of the bank's or savings association's capital and surplus, plus an additional 10 percent of the bank's or savings association's capital and surplus, if the amount that exceeds the bank's or savings association's 15 percent general limit is fully secured by . SEC. Any national banking association may make real estate loans secured by first liens upon improved real estate, including improved farm land and im-proved business and residential properties. A loan secured by real estate within the meaning of this section shall . (a) Total loans and extensions of credit (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.