Page:United States Statutes at Large Volume 105 Part 3.djvu/474

 105 STAT. 2358 PUBLIC LAW 102-242—DEC. 19, 1991 INSIDERS.— Section 22(h)(2) of the Federal Reserve Act (12 U.S.C. 375b(2)), as amended by subsection (a), is amended— (1) by striking "and" at the end of subparagraph (A); (2) by striking the period at the end of subparagraph (B) and inserting "; and '; and (3) by inserting after subparagraph (B) the following new subparagraph: "(C) the bank follows credit underwriting procedures that are not less stringent than those applicable to comparable transactions by the bank with persons who are not executive officers, directors, principal shareholders, or employees of the bank.". (c) APPLYING TO DIRECTORS THE LIMIT ON LOANS TO ONE BOR- ROWER.— Section 22(h)(4) of the Federal Reserve Act (12 U.S.C. 375b(4)), as amended by subsection (a), is amended— (1) by inserting ", DIRECTOR," after "AGGREGATE LIMIT ON EXTENSIONS OF CREDIT TO ANY EXECUTIVE OFFICER"; and (2) by inserting ", director," after "A member bank may extend credit to any executive officer". (d) LIMITING DEPOSITORY INSTITUTION'S AGGREGATE EXTENSIONS OF CREDIT TO INSIDERS.— (1) IN GENERAL.— Section 22(h)(5) of the Federal Reserve Act (12 U.S.C. 375b(5)), as amended by subsection (a), is amended to read as follows: "(5) AGGREGATE LIMIT ON EXTENSIONS OF CREDIT TO ALL EXECU- TIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHAREHOLDERS. — "(A) IN GENERAL.— A member bank may extend credit to any executive officer, director, or principal shareholder, or to any related interest of such a person, 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 its executive officers, directors, principal shareholders, and those persons' related interests would not exceed the bank's unimpaired capital and unimpaired surplus. "(B) MORE STRINGENT LIMIT AUTHORIZED. — The Board may, by regulation, prescribe a limit that is more stringent than that contained in subparagraph (A). " (C) BOARD MAY MAKE EXCEPTIONS FOR CERTAIN BANKS. — The Board may, by regulation, make exceptions to subparagraph (A) for member banks with less than $100,000,000 in deposits if the Board determines that the exceptions are important to avoid constricting the availability of credit in small communities or to attract directors to such banks. In no case may the aggregate amount of all outstanding extensions of credit to a bank's executive officers, directors, principal shareholders, and those persons' related interests be more than 2 times the bank's unimpaired capital and unimpaired surplus.". (2) CONFORMING AMENDMENT. —Section 22(h)(1) of the Federal Reserve Act (12 U.S.C. 375b(l)), as amended by subsection (a), is amended by inserting "(5)," after "(4),". (e) PROHIBITING INSIDERS FROM ACCEPTING UNAUTHORIZED EXTEN- SIONS OF CREDIT.— Section 22(h)(7) of the Federal Reserve Act (12 U.S.C. 375b(7)), as amended by subsection (a), is amended to read as follows: "(7) PROHIBITION ON KNOWINGLY RECEIVING UNAUTHORIZED EXTENSION OF CREDIT.— No executive officer, director, or prin-

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