§ 53-91.2. Loans to executive officers. - North Carolina Statutes

§53‑91.2.  Loans to executive officers.

No bank may extend credit toany of its executive officers nor a firm or partnership of which such executiveofficer is a member, nor a company in which such executive officer owns acontrolling interest, unless the extension of credit is made on substantiallythe same terms, including interest rates and collateral, as those prevailing atthe time for comparable transactions by the bank with persons who are notemployed by the bank, and provided further that the extension of credit doesnot involve more than the normal risk of repayment. This general prohibitionshall not prevent an executive officer from obtaining loans on terms andconditions that are available to all employees of the bank. For the purposes ofthis section, the term "executive officer" shall mean an officer whohas authority to participate in major policy‑making functions of thebank. Provided further, the maximum amount of such loans shall be that asprescribed by applicable federal banking regulations. (1995,c. 129, s. 18; 1999‑72, s. 2.)