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6.13 Stricter Lending Limits

<< Title VI Overview

6.13 Stricter Lending Limits

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6.13.     Stricter Lending Limits.

6.13.1.      National Bank Lending Limits.  The national bank lending limits will be revised to include any credit exposure to a person arising from a derivative transaction, a repurchase agreement, a reverse repurchase agreement, or a securities borrowing or lending transaction as extensions of credit subject to the lending limits.  This provision will be effective 1 year after the Transfer Date. [§ 610]

6.13.2.    State Lending Limit Treatment of Derivatives.  A state bank may only engage in a derivative transaction if the state lending limit laws take into account credit exposure to derivative transactions.  This provision will be effective 18 months after the Transfer Date. [§ 611]