30.12.070 - Unsafe loans and discounts to directors or officers. - Washington Statutes

Unsafe loans and discounts to directors or officers.

The director may at any time, if in his or her judgment excessive, unsafe, or improvident loans are being made or are likely to be made by a bank or trust company to any of its directors or officers or the directors or officers of its holding company, or to any corporation, copartnership or association of which such director is a stockholder, member, co-owner, or in which such director is financially interested, or like discounts of the notes or obligations of any such director, corporation, copartnership or association are being made or are likely to be made, require such bank or trust company to submit to him or her for approval all proposed loans to, or discounts of the note or obligation of, any such director, officer, corporation, copartnership or association, and thereafter such proposed loans and discounts shall be reported upon such forms and with such information concerning the desirability and safety of such loans or discounts and of the responsibility and financial condition of the person, corporation, copartnership or association to whom such loan is to be made or whose note or obligation is to be discounted and of the amount and value of any collateral that may be offered as security therefor, as the director may require, and no such loan or discount shall be made without his or her written approval thereon.

[2010 c 88 § 25; 1994 c 92 § 70; 1955 c 33 §30.12.070 . Prior: 1947 c 147 § 1, part; 1933 c 42 § 22, part; 1917 c 80 § 52, part; Rem. Supp. 1947 § 3259, part.]

Notes: Effective date -- 2010 c 88: See RCW 32.50.900.