TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 330 LENDING LIMITS
SECTION 330.100 PURPOSE


 

Section 330.100  Purpose

 

Section 32 of the Act is intended to prevent one person or a relatively small group of persons, from borrowing an unduly large amount of a bank's funds.  It is also intended to safeguard a bank's depositors by diversifying the risk of loan losses among a relatively large number of persons engaged in different types of businesses.