N.J. Admin. Code § 3:1-11.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 3:1-11.2 - Prohibition

(a) No institution or affiliate thereof may, either directly or indirectly, make a loan to any director or executive officer of an institution or to any affiliated person of such institution, or purchase any such loan, unless the terms and conditions of the loan (including, but not limited to, interest rate, maturity and collateral) are comparable to those terms and conditions then prevailing for a comparable loan to a nonaffiliated person.

(b) Any loans or extensions of credit made pursuant to a benefit or compensation program shall be permitted if the benefit or compensation program:

1. Is widely available to employees of an institution and, in the case of loans or extensions of credit to a director or executive officer of its affiliates, is widely available to employees of the affiliates at which that person is a director or executive officer; and

2. Treats any director or executive officer of the institution on an equal basis with other employees of the institution and, in the case of loans or extensions of credit to a director or executive officer of its affiliates, treats such director or executive officer on an equal basis as other employees of the affiliates at which that person is a director or executive officer.

(c) Nothing in this section shall be construed to affect other existing limitations on amounts or kinds of loans or extensions of credit to directors or executive officers.

N.J. Admin. Code § 3:1-11.2

As amended, R.1982 d.243, eff. 8/2/1982.
See: 14 New Jersey Register 490(b), 14 New Jersey Register 834(b).
Added executive to officer.
Amended by R.2001 d.112, effective 4/2/2001.
See: 33 New Jersey Register 213(a), 33 New Jersey Register 1087(a).
In (a), added designation; added (b) and (c).