10 Pa. Code § 13.11 - Limits on indebtedness of one customer
(a) Under section 306(c)(vi)(B) of the act
(7 P. S. §
306(c)(vi)(B)),
loans which are secured by documents of title covering readily marketable,
nonperishable staples for a period of not more than 10 months from the date of
the document of title are excluded from the indebtedness of one customer to
which the indebtedness limitation applies.
(b) Under section 306(c)(vi)(C) of the act
(7 P. S. §
306(c)(vi)(C)),
loans which are secured by documents of title covering readily marketable
frozen or refrigerated staples for a period of not more than 6 months from the
date of the document of title are excluded from the indebtedness of one
customer to which the indebtedness limitation applies.
(c) Under section 306(c)(ix)(B) of the act
(7 P. S. §
306(c)(ix)(B)),
loans which are secured by collateral which has a market value of not less than
120% of the amount of the obligations secured thereby are partially excluded
from the indebtedness of one customer to which the indebtedness limitation
applies. The loans are excluded from the limitation to the extent of 15% of the
aggregate of the capital accounts of the institution. To qualify for this
exclusion, the collateral shall be readily marketable so that:
(1) The price may be easily and definitely
ascertainable.
(2) The collateral
may be realized by sale.
(d) The following forms of collateral shall
be considered to have a market value, within the context of this section, to
qualify for the exclusion described in subsection (c):
(1) Collateral in the form of stocks, bonds
and other securities, if the collateral is listed for trading on a recognized
exchange registered under the Securities Exchange Act of 1934 ( 15 U.S.C.A. §§ 78(a)-79kk
(1971)).
(2) Collateral in the form
of new automobiles in the hands of dealers.
(3) Collateral in the form of equity
securities of the following:
(i) Banks or
bank and trust companies incorporated under the laws of the
Commonwealth.
(ii) National banks
having a place of business in this Commonwealth.
(e) Collateral in the form of manufactured or
fabricated articles, such as appliances in the hands of dealers, does not
qualify for the exclusion described in subsection (c).
Notes
The provisions of this § 13.11 amended under section 306 of the Banking Code of 1965 (7 P. S. § 306).
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