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205 ILCS 5/32
(205 ILCS 5/32) (from Ch. 17, par. 339)
Sec. 32. Basic loaning limits. The liabilities outstanding at one time
to a state bank of a
person for money borrowed, including the liabilities of a partnership
or joint venture in the liabilities of the several members thereof, shall
not exceed 25% of the amount of the unimpaired capital and
unimpaired surplus
of the bank.
The liabilities to any state bank of a person may exceed 25% of
the unimpaired capital and unimpaired surplus of the bank,
provided
that (i) the excess amount from time to time outstanding is fully secured
by readily marketable collateral having a market value, as determined by
reliable and continuously available quotations, at least equal to the
excess amount outstanding; and (ii) the total liabilities shall
not exceed 30% of the unimpaired capital and unimpaired surplus of the bank.
The following shall not be considered as money borrowed within the meaning
of this Section:
(1) The purchase or discount of bills of exchange | | drawn in good faith against actually existing values.
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(2) The purchase or discount of commercial or
| | business paper actually owned by the person negotiating the same.
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(3) The purchase of or loaning money in exchange for
| | evidences of indebtedness which shall be secured by mortgage or trust deed upon productive real estate the value of which, as ascertained by the oath of 2 qualified appraisers, neither of whom shall be an officer, director, or employee of the bank or of any subsidiary or affiliate of the bank, is double the amount of the principal debt secured at the time of the original purchase of evidence of indebtedness or loan of money and which is still double the amount of the principal debt secured at the time of any renewal of the indebtedness or loan, and which mortgage or trust deed is shown, either by a guaranty policy of a title guaranty company approved by the Commissioner or by a registrar's certificate of title in any county having adopted the provisions of the Registered Titles (Torrens) Act, or by the opinion of an attorney-at-law, to be a first lien upon the real estate therein described, and real estate shall not be deemed to be encumbered within the meaning of this subsection (3) by reason of the existence of instruments reserving rights-of-way, sewer rights and rights in wells, building restrictions or other restrictive covenants, nor by reason of the fact it is subject to lease under which rents or profits are reserved by the owners.
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(4) The purchase of marketable investment securities.
(5) The liability to a state bank of a person who is
| | an accommodation party to, or guarantor of payment for, any evidence of indebtedness of another person who obtains a loan from or discounts paper with or sells paper to the state bank; but the total liability to a state bank of a person as an accommodation party or guarantor of payment in respect of such evidences of indebtedness shall not exceed 25% of the amount of the unimpaired capital and unimpaired surplus of the bank; provided however that the liability of an accommodation party to paper excepted under subsection 2 of this Section shall not be included in the computation of this limitation.
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(6) The liability to a state bank of a person, who as
| | a guarantor, guarantees collection of the obligation or indebtedness of another person.
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The total liabilities of any one person, for money borrowed, or
otherwise, shall not exceed 25% of the deposits of the bank, and
those total liabilities shall at no time exceed 50% of the amount
of the
unimpaired capital and unimpaired surplus of the bank.
Absent an actual unremedied breach, the obligation or responsibility for
breach of warranties or representations, express or implied, of a person
transferring negotiable or non-negotiable paper to a bank without recourse
and without guaranty of payment, shall not be included in determining the
amount of liabilities of the person to the bank for borrowed money
or otherwise; and in the event of and to the extent of an unremedied breach,
the amount remaining unpaid for principal and interest on the paper in
respect of which the unremedied breach exists shall thereafter for
the purpose of determining whether subsequent transactions giving rise to
additional liability of the person to the state bank for borrowed money or
otherwise are within the limitations of Sections 32 through 34 of this
Act, be included in computing the amount of liabilities of the
person for borrowed money or otherwise.
The liability of a person to a state bank on account of
acceptances
made or issued by the state bank on behalf of the person shall be
included in the computation of the total liabilities of the person for money
borrowed except to the extent the acceptances grow out of
transactions of the character described in subsection (6) of Section 34 of this
Act and are otherwise within the limitations of that subsection;
provided nevertheless
that any such excepted acceptances acquired by the state bank which
accepted the same shall be included in the computation of the liabilities
of the person to the state bank for money borrowed.
The Secretary may adopt rules to address the funding by banks of any loan commitment, when such funding would involve additional extensions of credit to be made after the unimpaired capital and unimpaired surplus of the bank have decreased and the Secretary determines that such decrease in unimpaired capital and unimpaired surplus would cause the additional extensions of credit to result in an unsafe and unsound condition.
(Source: P.A. 96-1365, eff. 7-28-10.)
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