(1) A trust company shall not make any loans or extensions of credit except as provided in subsection (2) of this section.
(2) A trust company may:
Make a loan or extend credit to its officers, directors, and employees if such loan orcredit is adequately secured and does not involve more than the normal risk of default or present other unfavorable features. Any loan or extension of credit in excess of twenty-five thousand dollars shall be subject to prior approval by the banking board.
Establish with one or more broker-dealers margin accounts in its name as fiduciaryor custodian for the benefit of the owners or beneficiaries of such accounts.
Source: L. 2003: Entire article added with relocations, p. 1206, § 3, effective July 1. L. 2008: Entire section amended, p. 1502, § 3, effective May 28. L. 2013: (1) and IP(2) amended, (SB 13-154), ch. 282, p. 1485, § 58, effective July 1.
Editor's note: This section is similar to former § 11-23-114 as it existed prior to 2003.