(a) No bank or foreign bank may make to any one person, firm, partnership or corporation, one or more loans or discounts totaling more than 15 percent of the paid-in capital, reserve, and undistributed profits of such bank or foreign bank, nor shall it accept the security of any one person, partnership or corporation in an amount exceeding 15 percent of its paid-in capital stock. This restriction shall not apply to loans or discounts secured by collateral worth at least 125 percent of the amount of the loan, or to loans secured by mortgages, or to discounts of bills of exchange, provided such loans so secured by said collateral or mortgages, and such discounts of bills or exchange issued under such conditions do not exceed 33⅓ percent of the bank's or foreign bank's paid-in capital, plus its reserves and undistributed profits, including the loans and discounts referred to in this subsection. In the application of these limitations the total amounts of the loans and discounts made to any one person, firm, or corporation, plus the loans on which the same person, firm or corporation is security, shall not exceed, in all, the 33⅓ percent hereinbefore mentioned. In the cases in which capital notes or capital debentures have been issued for the purpose of strengthening the capital of any institution organized in accordance with this title, such funds shall be considered capital stock, as said term is used in section 35 of this title. Such capital notes and capital debentures shall be shown and designated separately in all the Statements of conditions which are published. Such capital notes and capital debentures shall not be subject to the payment of taxes. Any violation of these provisions shall be sufficient reason for the cancellation of the license of the bank or foreign bank guilty of such violation.
(b) No bank or foreign bank shall make loans or discounts secured by its own stock, nor shall it purchase and hold its own stock, unless such security or purchase is necessary to prevent losses because of a debt previously contracted in good faith; and the stock so purchased or acquired shall be sold at public or private sale within the term of one year from the date of purchase. The directors or the manager of any bank or foreign bank who violates the provisions of this subsection shall be fined in an amount equal at least to the par value of the stock purchased or acquired in violation of this provision.
(c) No bank or foreign bank, or any director, officer, agent or employee thereof shall purchase, or be in any way directly or indirectly interested in the purchase of any promissory note or other negotiable paper issued by said bank (shares and bonds issued by said bank excepted) for a lesser sum than that for which it is drawn, or for less than the market value. Any bank or foreign bank or person violating this provision shall be fined in an amount equal at least to three times the face value of the document so purchased.
(d) No director, officer, or employee of a bank or foreign bank shall obtain a loan in such bank or foreign bank, except upon approval of such loan by a two-thirds vote of the Board of Directors or trustees. Any person wilfully violating the provisions of this subsection shall be fined in an amount equal at least to twice such amount as shall have been obtained by him, or imprisoned not more than one year, or both. The officer, agent or employee of the bank or foreign bank granting such loan shall be fined in an amount equal to twice such amount as may have been loaned, or imprisoned not more than one year, or both.
(e) With respect to a foreign bank and the directors, officers, agents and employees thereof, the prohibitions, limitations and restrictions contained in this section shall be limited in their application to transactions entered into or performed at any branch thereof established in the United States Virgin Islands.