N.J. Admin. Code § 3:11-13.1
Current through Register Vol. 56, No. 12, June 17, 2024
Section 3:11-13.1 - Borrowing limitation of a director, executive officer and/or related interests(a) The 10 percent liability limitation prescribed in N.J.S.A. 17:9A-72B(4) is increased so that a bank may extend credit to a director or to a corporation in which such director or an executive officer has a controlling interest, or in which such director or executive officer together with one or more other directors or executive officers has a controlling interest, or to a partnership in which such director or executive officer is a partner, if the proposed liability will not cause the total of the liabilities of the director or executive officer, and the liabilities of each corporation in which such director has a controlling interest, or in which such director or executive officer together with one or more other directors or executive officers has a controlling interest, and the liabilities of each partnership in which such director or executive officer is a partner, to exceed 25 percent of the amount of capital funds of the bank, as defined in 17:9A-60 and the rules adopted pursuant thereto; provided, however, that all amounts in excess of 15 percent of the capital funds of the bank shall be 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 funds outstanding in excess of said 15 percent.(b) The maximum liability of an executive officer, exclusive of the corporate and partnership liabilities set out in (a) above, are as limited in 3:6-3.2.N.J. Admin. Code § 3:11-13.1
New Rule, R.1987 d.369, effective 9/8/1987.
See: 19 New Jersey Register 1124(a), 19 New Jersey Register 1641(b).