Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512A - Limits on loans and extensions of credit › Section 208-512A-600 - Transitional rules

Current through Register Vol. 24-14, July 15, 2024
(1) Loans or
					extensions of credit that were in violation of
					RCW
					   30A.04.111 and the former lending limits
					rules prior to January 21, 2013, will be considered to remain in violation of
					law until they are paid in full, regardless of whether the loans or extensions
					of credit conform to the rules established in this chapter. Renewals or
					extensions of such loans or extensions of credit will also be considered
					violations of law.
(2) A bank that
					has outstanding loans or extensions of credit to a person in violation of
					RCW
					   30A.04.111 and the former lending limits
					rules as of January 21, 2013, may make additional advances to such person after
					those dates if the additional advances are permitted under this chapter. The
					additional advances, however, may not be used directly or indirectly to repay
					any outstanding illegal loans or extensions of credit.
(3) Loans or extensions of credit which were
					in conformance with
					RCW
					   30A.04.111 and the former lending limits
					rules prior to January 21, 2013, but are not in conformance with this chapter
					will not be considered to be violations of law during the existing contract
					terms of such loans or extensions of credit. Renewals or extensions of such
					loans or extensions of credit which are not in conformance with this chapter
					may be made on or after January 21, 2013, if the nonconformity is caused by WAC
					208-512A-005(1)(b) and 208-512A-300; however, all loans
					or extensions of credit made under such renewals or extensions must conform
					with this chapter no later than June 1, 2013. Loans or extensions of credit
					which are not in conformance with this chapter for any other reason (i.e., a
					reduction in the bank's capital) must conform to this section upon renewal or
					extension.
(4) If a bank, prior to
					January 21, 2013, entered into a legally binding commitment to advance funds on
					or after such date, and such commitment was in conformance with
					RCW
					   30A.04.111 and the former lending limits
					rules, advances under such commitment may be made notwithstanding the fact that
					such advances are not in conformance with this chapter. The bank must, however,
					demonstrate that the commitment represents a legal obligation to fund, either
					by a written agreement or through file documentation.
(5) As used in this section, "former lending
					limits rules" means WAC 208-512-210 through 208-512-300, inclusive.
(6) Notwithstanding any other provision of
					this chapter, a savings bank under Title 32 RCW will not be considered to be in
					violation of law during the existing contract terms of any loan or extension of
					credit, which:
(a) In the case of a savings
					bank under WAC
					208-512A-009(2) or
					(3), was made and funded prior to June 1,
					2013; or
(b) In the case of a
					savings bank under WAC
					208-512A-009(4) but not subject to WAC
					208-512A-009(2) or
					(3), was made and funded prior to a date,
					earlier than June 1, 2013, upon which the savings bank gave notice to the
					division of its election to conform to the provisions of this chapter pursuant
					to WAC 208-512A-009(4).