Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698746493623.pdf (Micronesia, Federated States of)
SIXTEENTH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST REGULAR SESSION, 2009 PC NO.

16-131 CONGRESSIONAL BILL NO.

16-05, C.D.1, C.D.2 PUBLIC LAW NO.

16-16 AN ACT To amend title 29 of the Code of the Federated States of Micronesia by changing section 613 in order to increase the limit that a bank may loan to its officer, director, agent, employee and/or related person; and for other purposes.

BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA: 1 Section 1.
Section 613 of title 29 of the Code of the 2 Federated States of Micronesia, as amended by Public Laws Nos.

12- 3 57 and 13-56, is hereby further amended to read as follows: “Section 613.

Limitations on loans — Related persons.
(1) Except as herein provided, no domestic bank shall make any extension of credit to any of its officers, directors, agents, or employees, or to any related person, either directly or indirectly, except upon the written application of such person or related person stating the line of credit applied for, terms and security, if any, offered therefore to the board of directors or to the loan or executive committee of the board, and then only with the written approval of a majority of the board or majority of the loan committee of the bank (excluding the person seeking the credit) before the loan is made; and the approval of the loan as allowed by the board or the loan committee of the bank shall be made part of the minutes of the next directors’ CBL 16-3 PC NO.
16-131 CONGRESSIONAL BILL NO.

16-05, C.D.1, C.D.2 PUBLIC LAW NO.

16-16 meeting of the bank.

(2) Loans may be made to any officer, director, agent, employee, or shareholder of any domestic bank or any related person, without such application and approval, in amounts not in excess of $25,000 in aggregate principal owing by any such individual and related person at any one time.” Section 2.
This act shall become law upon approval by the 9 President of the Federated States of Micronesia or upon its 10 becoming law without such approval.

11 December 11, 2009 /s/ Manny Mori Manny Mori President Federated States of Micronesia 2 of 2