Section 387:26 General Lending Authority. - New Hampshire Statutes

Notwithstanding any other provision of law to the contrary, a savings bank shall be authorized to make any type of secured or unsecured loan to any person, including without limitation any business or governmental entity. With respect to secured loans, a savings bank shall adopt prudent policies establishing loan-to-value ratios suitable for the type of property securing the loans. With respect to all loans, a savings bank shall adopt prudent policies establishing the creditworthiness of borrowers. The total liabilities of any person for money borrowed from a savings bank which is insured by the Federal Deposit Insurance Corporation shall not exceed the limitation prescribed for national banks under federal laws and regulations. The bank commissioner may adopt rules, pursuant to RSA 541-A, interpreting the applicability of such federal rules and regulations to savings banks. This limitation shall not apply to securities described in RSA 387:6, I-IV nor to liabilities for money borrowed to the extent that they shall be secured, covered, underwritten, or protected as to principal and interest by guaranties, or by commitments or agreements to take over or purchase the same, made by or on behalf of any federal reserve bank, or the United States or the state of New Hampshire, or any other state, or any department, bureau, board, commission, or establishment of the United States or the state of New Hampshire or any other state including any corporation wholly owned directly or indirectly by the United States or the state of New Hampshire or any other state, for the performance of which guaranties, commitments, or agreements the faith of the United States or the state of New Hampshire or any other state is pledged.

Source. 1953, 195:1, par. 26. 1998, 139:15, eff. Aug. 7, 1998.