MS Code § 81-5-77 (2020)
2020 Mississippi Code|Title 81 - Banks and Financial Institutions|Chapter 5 - General Provisions Relating to Banks and Banking|General Provisions|§ 81-5-77. Limit of loans and extensions of credit to single borrower

 The liability to a bank by a person, company, corporation or firm for all loans and extensions of credit, including in the liability of such person, company or firm, where a partnership, the liabilities of the several members thereof, shall not exceed twenty percent (20%) of the aggregate unimpaired capital and unimpaired surplus of the bank.   The following shall not be restricted to or considered as coming within the limitations of twenty percent (20%) prescribed in subsection (a):   Loans and discounts secured by warehouse receipts or shippers' order bills of lading representing actually existing values, provided the amount of such loans and discounts shall not exceed eighty-five percent (85%) of the market value of the commodities representing the actually existing values.   Loans and discounts secured by bonds, certificates or notes constituting direct obligations of the United States government, or bonds fully guaranteed by the United States government, or by full faith and credit obligations of the State of Mississippi; however, the Commissioner of Banking and Consumer Finance shall from time to time determine and fix the maximum percentage of the par value of all such securities that may be loaned.   Loans and discounts to the extent that they are secured or covered by guaranties, or by commitments, or agreements to take over or purchase the same, made by any federal reserve bank, or by the United States, or any department, bureau, board, commission or establishment of the United States, including any corporation wholly owned directly or indirectly by the United States; provided that such guaranties, agreements or commitments are unconditional and are to be performed by payment within sixty (60) days after demand; provided, further, that the Commissioner of Banking and Consumer Finance is authorized to define the terms used in this section and may by regulation control the making of loans under this paragraph (iii).   Loans and discounts secured in full by funds on deposit in time or savings accounts with the lending bank to the credit of the borrower.   The limit on loans and extensions of credit applicable to any one (1) person, company, corporation, or firm under this section shall take into consideration credit exposure arising from derivative transactions between the bank and the party. For purposes of this section, the term "derivative transaction" includes any transaction that is a contract, agreement, swap, warrant, note, or option that is based, in whole or in part, on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one or more commodities, securities, currencies, interest or other rates, indices, or other assets.   Any officer or director who approves or makes loans prohibited in this section shall be liable individually for the full amount of the principal and interest of any such loan or extension of credit. If the Commissioner of Banking and Consumer Finance discovers, in any examination of any open bank that there is a loss on any loan or extension of credit made in violation of this section, he shall make demand of all directors and officers approving or making such loan or extension of credit for payment of the entire unpaid balance on any such loan or extension of credit. Like demand shall be made and suit brought by the receiver of any bank in liquidation.   However, this section shall not apply to loans or extensions of credit to the State of Mississippi, or to any political subdivision thereof, nor to any levee district.