Individual Insiders

Aggregate loans and extensions of credit to each executive officer, director, or principal shareholder and his or her related interests are limited to the single borrower limit in 12 USC 84. A bank’s loans to related interests of an insider are attributed to that insider and are combined with any other loans to that insider outstanding from the bank regardless of whether or not such loans are combinable under the legal lending limit combination rule of 12 CFR 32.5.

All Insiders

Total extensions of credit to all insiders and their related interests are limited to the amount of the bank’s unimpaired capital and unimpaired surplus. Banks with deposits of less than $100 million are subject to a higher limit if they meet certain qualifications. That limit is equal to a total of two times the bank’s unimpaired capital and unimpaired surplus, subject to restrictions specified in 12 CFR 215.4(d).

Exceptions to the limits on aggregate loans to individual insiders are available for any loan type that is eligible for a higher limit under 12 USC 84. Exceptions to the limit on aggregate loans to insiders as a group are made for extensions of credit:

• Secured or fully guaranteed by obligations of the United States.

• To, or secured by, qualified commitments or guarantees of, a department or agency of the United States.

• Secured by a segregated deposit account with the lending bank.

• Arising from the discount of installment consumer paper acquired from an insider with recourse under certain conditions.