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Indiana Code Title 28. Financial Institutions § 28-14-3-4

Current as of January 02, 2024 | Updated by Findlaw Staff

Sec. 4. (a) A corporate fiduciary may:

(1) lend money;  and

(2) receive and hold real and personal property as security for the repayment of loans;

only as authorized in this section.

(b) A corporate fiduciary may make a loan to a fiduciary account it administers and may take security for the loan, unless the governing document prohibits borrowing money and pledging account assets.  The terms of a loan described in this subsection must be comparable to the terms available from other lenders.

(c) A corporate fiduciary may make a loan to a director, an officer, or an employee of the corporate fiduciary.  A loan made under this subsection must be adequately secured.  Loans made under this subsection by a corporate fiduciary may not:

(1) total more than ten thousand dollars ($10,000) for each individual;  or

(2) exceed five percent (5%) of total equity capital when all loans to directors, officers, and employees are aggregated.

(d) Loans made to directors, officers, and employees under subsection (c) must be made exclusively from corporate funds.  Funds from a fiduciary account may not be used to make or secure a loan under subsection (c).

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Cite this article: FindLaw.com - Indiana Code Title 28. Financial Institutions § 28-14-3-4 - last updated January 02, 2024 | https://codes.findlaw.com/in/title-28-financial-institutions/in-code-sect-28-14-3-4/

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