17:9A-75 - Violations; penalties; liability - New Jersey Statutes

17:9A-75.  Violations;  penalties;  liability
    A.  The following shall be guilty of misdemeanors:

     (1) A director, or an executive officer of a bank who knowingly incurs liability to the bank in violation of subsections B and C of section 72;

     (2) Any person who knowingly permits or aids a director, or an executive officer of a bank or a corporation or partnership to incur liability to a bank in violation of subsections B and C of section 72;

     (3) A director of a bank who votes in favor of an application presented to  the bank by such director or by a corporation in which such director alone, or  with one or more directors or officers of the bank, has a controlling interest,  or by a partnership of which such director is a general or limited partner, if,  pursuant to such application, liability is incurred in violation of subsections  B and C of section 72;

     (4) A director or an executive officer of a bank who, alone, or with one or  more directors or executive officers of the bank, has a controlling interest in  a corporation or who is a general or limited partner of a partnership which  presents an application to the bank pursuant to which liability is incurred in  violation of subsections B and C of section 72 and who, having knowledge of  such application prior to its acceptance, fails to disclose his interest to the  executive committee or the board of directors prior to such acceptance.

    B.  Each person described in paragraphs (2), (3), and (4) of subsection A of  this section shall be personally liable on demand to the bank for the liability  incurred in violation of subsections B and C of section 72, with interest, and,  upon payment thereof, shall be subrogated to the rights of the bank.

     L.1948, c. 67, p. 253, s. 75.  Amended by L.1966, c. 273, s. 4;  L.1979, c. 226, s. 6, eff. Oct. 12, 1979.