Pennsylvania Statutes Title 7 P.S. Banks and Banking § 1414. Preferential rates of interest

(a) Preferences prohibited-- Notwithstanding the provisions of section 306  1 and except as provided by subsection (c), an institution shall not pay to any director, trustee, executive officer or attorney a higher rate of interest on deposits than the rate paid to any other depositor on similar deposits and shall not grant to any such individual a lower rate of interest on a loan, or a lower rate of charge on an agreement for the payment of money, than the rate granted to other customers under similar circumstances.

(b) Deleted by 2000, Nov. 22, P.L. 660, No. 89, § 13, imd. effective.

(c) Authorized activities--Notwithstanding any other provision of this act, an institution may extend credit to any director, trustee, executive officer, attorney or principal shareholder, or to any related interest of such a person, to the extent permissible pursuant to 12 U.S.C. §§ 375a and 375b. The department shall interpret the provisions of 12 U.S.C. §§ 375a and 375b in a manner consistent with regulations, orders and interpretations as issued by the Board of Governors of the Federal Reserve System. A regulation, order or interpretation of the provisions of 12 U.S.C. §§ 375a and 375b by the Board of Governors of the Federal Reserve System shall take effect for the purposes of this subsection within thirty days of promulgation by the Board of Governors except that the department may for good cause suspend the application of such regulation, order or interpretation for up to a one-year period. Notice of such suspension shall be published by the department in the Pennsylvania Bulletin. Thereafter, the regulation, order or interpretation shall take effect for the purposes of this subsection unless the department adopts administrative regulations setting forth a contrary interpretation of the provisions of 12 U.S.C. §§ 375a and 375b. A regulation, order or interpretation of the provisions of 12 U.S.C. §§ 375a and 375b by the Board of Governors of the Federal Reserve System may take effect for the purposes of this subsection within less than thirty days of promulgation by the Board of Governors if approved by the department.