Current through Register Vol. XLI, No. 50, December 13, 2024
Section 106-9-2 - DefinitionsFor purposes of this rule:
2.1. "Loans and Extensions of Credit" means any direct or indirect advance of funds to a person made on the basis of any obligation of that person to repay the funds or repayable from specific property pledged by or on behalf of a person. Such term shall also include any liability of a state-chartered banking institution to advance funds to or on behalf of a person pursuant to a contractual commitment;2.2. "Contractual Commitment to Advance Funds" means(a) an obligation on the part of the bank to make payments (directly or indirectly) to a designated third party contingent upon a default by the bank's customer in the performance of an obligation under the terms of that customer's contract with the third party or (b) an obligation to guarantee or stand as surety for the benefit of a third party. The term includes, but is not limited to, "Standby Letters of Credit", guarantees, puts and other similar arrangements. For purposes of this rule, undisbursed loan funds and loan commitments not yet drawn upon but which the bank has through written agreement obligated itself to disburse upon request are contractual commitments to advance funds as defined in this subsection. The definition does not include commercial letters of credit_and similar instruments where the issuing bank expects the beneficiary to draw upon the issuer, which do not guarantee payment of a money obligation, and which do not provide for payment in the event of a default by the account party;2.3. A "Standby Letter of Credit" means any letter of credit, or similar arrangement, however named or described, which represents an obligation to the beneficiary on the part of the issuer (a) to repay money borrowed by or advanced to or for the account of the account party, or (b) to make payment on account of any indebtedness undertaken by the account party, or (c) to make payment on account of any default by the account party in the performance of an obligation;2.4. "Person" means an individual, partnership, sole proprietorship, society, association, firm, institution, company, public or private corporation, not-for-profit corporation, state, governmental agency, bureau, department, division or instrumentality, political subdivision, county commission, municipality, trust, syndicate, estate or any other legal entity whatsoever, formed, created or existing under the laws of the state or any other jurisdiction;2.5. "Unimpaired Capital and Unimpaired Surplus" means the amount of total equity capital outstanding as indicated in the bank's most recent quarterly report of condition and income as filed with the Commissioner of Banking pursuant to W. Va. Code '31A-4-19, plus the amount of the allowance for loan losses, minus the amount of goodwill or other nonmarketable intangible assets included in that quarterly report pursuant to generally accepted accounting principles. Unrealized gains and losses on the bank's securities and loan portfolios shall be included in the calculation of total equity capital to the extent required by generally accepted accounting principles and applicable federal or state law, rule or regulation;2.6. "Readily Marketable Collateral" means "Financial Instruments" and bullion which are salable under ordinary circumstances with reasonable promptness at a fair market value determined by quotations based on actual transactions on an auction or a similarly available daily bid and ask price market;2.7. "Financial Instruments" include stocks, notes, bonds, and debentures traded on a national securities exchange, "OTC Margin Stocks" (as defined in Regulation U of the Federal Reserve Board), commercial paper, negotiable certificates of deposit, bankers' acceptances and shares in money market and mutual funds of the type which issue shares in which banks may perfect a security interest. The term "Financial Instruments" does not include mortgages;2.8. "Current Market Value" means the bid or closing price listed for an item in a regularly published listing or an electronic reporting service;2.9. A "Readily Marketable Staple" means an article of commerce, agriculture or industry of such uses as to make it the subject of dealings in a ready market with sufficiently frequent price quotations as to make the price easily and definitely ascertainable, and the staple itself easy to sell at any time at a price determined in an organized market; and, 2.10. "Control" or "Common Control" as used throughout this rule shall be presumed to exist when: (a) One or more persons acting in concert directly or indirectly own, control or have power to vote twenty-five percent (25%) or more of any class of voting securities or other ownership interests of another person;(b) One or more persons, acting in concert, control, in any manner, the election of a majority of the directors, trustees or other persons exercising similar functions of another person; or,(c) Any other circumstances exist which indicate that one or more persons acting in concert directly or indirectly exercise a controlling influence over the management or policies of another person.