Page:United States Statutes at Large Volume 105 Part 3.djvu/472

 105 STAT. 2356 PUBLIC LAW 102-242—DEC. 19, 1991 "(B) does not involve more than the normal risk of repay- ment or present other unfavorable features. "(3) PRIOR APPROVAL REQUIRED.— A member bank may extend credit to a person described in paragraph (1) in an amount that, when aggregated with the amount of all other outstanding extensions of credit by that bank to each such person and that person's related interests, would exceed an amount prescribed by regulation of the appropriate Federal banking agency (as defined in section 3 of the Federal Deposit Insurance Act) only "(A) the extension of credit has been approved in advance by a majority vote of that bank's entire board of directors; and "(B) the interested party has abstained from participating, directly or indirectly, in the deliberations or voting on the extension of credit. "(4) AGGREGATE LIMIT ON EXTENSIONS OF CREDIT TO ANY EXECU- TIVE OFFICER OR PRINCIPAL SHAREHOLDER. — A member bank may extend credit to any executive officer or principal shareholder, or to any related interest of such a person, only if the extension of credit is in an amount that, when aggregated with the amount of all outstanding extensions of credit by that bank to that person and that person's related interests, would not exceed the limits on loans to a single borrower established by section 5200 of the Revised Statutes. For purposes of this paragraph, section 5200 of the Revised Statutes shall be deemed to apply to a State member bank as if the State member bank were a national banking association. "(5) [Reserved.1 "(6) OVERDRAFTS BY EXECUTIVE OFFICERS AND DIRECTORS PROHIBITED.— "(A) IN GENERAL. —I f any executive officer or director has an account at the member bank, the bank may not pay on behalf of that person an amount exceeding the funds on deposit in the account. (B) EXCEPTIONS. —Subparagraph (A) does not prohibit a member bank from paying funds in accordance with— "(i) a written preauthorized, interest-bearing extension of credit specifying a method of repayment; and "(ii) a written preauthorized transfer of funds from another account of the executive officer or director at that bank. "(7) [Reserved.] "(8) EXECUTIVE OFFICER, DIRECTOR, OR PRINCIPAL SHAREHOLDER OF CERTAIN AFFIUATES TREATED AS EXECUTIVE OFFICER, DIRECTOR, OR PRINCIPAL SHAREHOLDER OF MEMBER BANK. —For purpOSeS of this subsection, any executive officer, director, or principal shareholder (as the case may be) of any bank holding company of which the member bank is a subsidiary, or of any other subsidiary of that company, shall be deemed to be an executive officer, director, or principal shareholder (as the case may be) of the member bank. "(9) DEFINITIONS.—For purposes of this subsection: " (A) COMPANY. — "(i) IN GENERAL.— Except as provided in clause (ii), the term 'company' means any corporation, partnership, business or other trust, association, joint venture.

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