W. Va. Code R. § 106-20-4

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 106-20-4 - Applicability of legal lending limits to derivative transactions

4.1 The state legal lending limits law and its applicable regulations apply to derivative transactions entered into by banks because those transactions are obligations that require a bank to commit funds, by contract, agreement, swap or otherwise. Failure to properly limit the use of derivative transactions by a bank would pose a safety and soundness risk to the institution. Therefore, for purposes of the state legal lending limits law and regulations, derivative transactions shall always be included in the calculation of lending limits.