(a) An institution may, subject to the restriction of this section, borrow money except that the department may in the case of an individual institution:(i) Permit borrowings without regard to the restrictions of this section for emergency purposes, and(ii) Prohibit or place additional restrictions upon further borrowings which would in the judgment of the department constitute an unsound or unsafe practice in view of the condition and circumstances of the institution. An institution may issue notes, debentures and other obligations to evidence borrowings.
(b) The aggregate amount of outstanding liabilities of an institution for money borrowed exclusive of: (i) liabilities to a Federal Reserve Bank on account of money borrowed or rediscounts,(ii) liabilities on account of the acquisition of reserve balances at a Federal Reserve Bank or other reserve agent from a member or non-member bank,(iii) liabilities on account of agreements to repurchase securities sold by the institution (commonly known as "repurchase agreements"),(iv) liabilities which do not constitute or result from the borrowing of money under definitions prescribed by regulation of the department, and(v) liabilities to a Federal Home Loan Bank on account of money borrowed or rediscounts shall not at any time exceed the aggregate of the amount of its capital and one-half of the amount of its surplus.
1965, Nov. 30, P.L. 847, No. 356, § 314. Amended 1990, Dec. 18, P.L. 766, No. 191, § 6, imd. effective.