Current through Register Vol. XLI, No. 50, December 13, 2024
Section 106-9-1 - General1.1. Scope. -- This rule establishes the general method for implementing W. Va. Code '31A-4-26; it applies to all loans and extensions of credit made by state-chartered banking institutions and their domestic operating subsidiaries. This rule does not apply to loans made by state-chartered banking institutions to their affiliates (as that term is defined in subsection (b)(1) of Section 23A of the Federal Reserve Act ( 12 U.S.C. 371 c(b)(1))) or operating subsidiaries. W. Va. Code '31A-4-26 and this rule are intended to prevent one (1) individual, or a relatively small group, from borrowing an unduly large amount of the state-chartered banking institution's funds. The statute and this rule are intended to safeguard the depositors of state-chartered banking institutions by spreading the loans and extensions of credit among a relatively large number of persons engaged in different lines of business.1.2. Authority. -- W. Va. Code '31A-4-26(a)(5).1.3. Filing Date. -- April 30, 2001.1.4. Effective Date. -- June 1, 2001.