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Home > Title 7 > Part 2 > Chapter 12 >Subchapter B > Rule 12.31
TITLE 7 - BANKING AND SECURITIES
PART 2 - TEXAS DEPARTMENT OF BANKING
CHAPTER 12 - LOANS AND INVESTMENTS
SUBCHAPTER B - LOANS
SECTION/RULE §12.31 - Loans Secured by Affiliate-Issued Securities
Chapter Review Date 06/16/2023

A loan subject to Finance Code, §34.102(d), must be subtracted from the capital of a lending bank if the loan proceeds are used directly, or indirectly, for the purpose of recapitalizing the lending bank, unless the loan is fully secured by irrevocable letters of credit or other liquid assets.

Source Note: The provisions of this §12.31 adopted to be effective May 17, 1996, 21 TexReg 3935; amended to be effective July 10, 2003, 28 TexReg 5149.

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