17:9A-59.40 - Loan to depositor in amount of and guaranteed by deposit - New Jersey Statutes

17:9A-59.40.  Loan to depositor in amount of and guaranteed by deposit
    Notwithstanding any other provision of law, a banking institution may contract with a depositor for the loan of money in an amount not to exceed such  depositor's deposit and secured by a pledge of such deposit, upon such terms  and conditions as may be mutually agreed upon between the banking institution  and such depositor;  provided, however, that the rate of interest charged with  respect to any such loan shall not exceed the maximum permitted under the  provisions of R.S. 31:1-1 or 2% in excess of the interest rate then paid with  respect to the deposit which secures such loan whichever is greater.

     L.1977, c. 64, s. 1, eff. April 18, 1977.