reglab/statecodes huggingface dataset:
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-512 - Banks and trust companies › Section 208-512-460 - Subprime mortgage lending What will the division of banks do about compliance with guidance policies and procedures?

Current through Register Vol. 24-14, July 15, 2024
Every state-chartered bank, savings banks and savings
						association is different. There is no "one-size-fits-all" guidance available.
						Division of banks will not issue model guidance, because the process of
						self-analysis that your institution needs to do, in order to develop its own
						guidance policies and procedures, is beneficial. The division of banks does not
						provide technical legal advice. Also, the guidance is complex and will result
						in variations in wording or applicability of guidance policies and procedures
						among institutions, depending upon the size and complexity of a particular
						institution, the overall characteristics of its mortgage lending market base,
						and the specific types of mortgage lending it does, if any. For supervision
						purposes, the division of banks will:
(1) Verify that an institution has integrated
					the guidance into its policies and procedures, as part of its risk-focused
					examination. Division of banks will not mandate the length or exact wording
					used in the guidance policies and procedures.
(2) Review the guidance policies and
					procedures with the institution, if a consumer complaint indicates a problem or
					issue regarding subprime and nontraditional mortgage lending
					practices.
(3) Verify that an
					institution is following its policies and procedures.
The division of banks expects prompt compliance by banks,
						savings banks and savings associations with the requirements of this
						rule.
The law provides the division of banks with examination,
						enforcement and investigation authority to take appropriate action against
						banks, savings banks and savings associations that are in noncompliance with
						the guidance policies and procedures requirement.
Statutory Authority:
							RCW
							   19.144.040 [19.144.030]. 08-22-070, §
										208-512-460, filed 11/4/08,
							effective 12/5/08.
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-001 - Promulgation of rules

Current through Register Vol. 24-14, July 15, 2024
The division of banks of the department of financial
						institutions (hereinafter, the "division"), after due and proper notice, and
						pursuant to the provisions of
						RCW
						   30A.04.030,
						30A.04.111, 30A.04. 215,
						30A.08.140, 32.08.157, 43.320.040, and 43.320.050, hereby adopts and
						promulgates this chapter, effective January 21, 2013.
Statutory Authority: RCW    30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-001, filed 1/8/13,
							effective 2/8/13.
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-005 - "Loans and extensions of credit" and "contractual commitment to advance funds" - Defined

Current through Register Vol. 24-14, July 15, 2024
(1)
"Loan
					or extension of credit"
generally includes:
(a) Any direct or indirect advance of funds
					to a person made on a basis of any obligation of that person to repay the
					funds, or repayable from specific property pledged by or on behalf of a
					person;
(b) Any credit exposure of
					a bank arising from a derivative transaction or a securities financing
					transaction, but only to the extent that a securities financing transaction is
					required, by the Federal Reserve Board or the FDIC, with respect to state
					member banks and state insured banks, respectively, to be treated as a loan or
					extension of credit for purposes of
					RCW
					   30A.04.111 and this chapter; and
(c) Any contractual commitment to advance
					funds, and includes a renewal, modification, or extension of the maturity date
					of a loan or extension of credit.
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-007 - Other general chapter definitions

Current through Register Vol. 24-14, July 15, 2024
As used in this chapter and to the extent used in
						RCW
						   30A.04.111, the following additional terms,
						unless otherwise indicated, mean:
(1)
"ALLL"
means a bank's allowance for loan and lease
					losses.
(2)
"Bank"
includes a commercial bank chartered and regulated under Title 30A RCW and, to
					the extent applicable to this chapter pursuant to WAC
					208-512A-009, a mutual or stock
					savings bank chartered and regulated under Title 32 RCW.
(3)
"Borrower"
means:
(a) A person who is named as a borrower or
					debtor in a loan or extension of credit;
(b) A person to whom a bank has credit
					exposure arising from a derivative transaction or a securities financing
					transaction, entered by the bank; or
(c) Any other person, including a drawer,
					endorser, or guarantor, who is deemed to be a borrower under the "direct
					benefit" or the "common enterprise" tests set forth in WAC
					208-512A-100.
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-009 - Applicability of chapter

Current through Register Vol. 24-14, July 15, 2024
This chapter is applicable, notwithstanding any other
						provision thereof, only to:
(1) A
					commercial bank under Title 30A RCW;
(2) A mutual or stock savings bank under
					Title 32 RCW, which, on January 21, 2013, or thereafter, invests in derivative
					transactions;
(3) A mutual or stock
					savings bank under Title 32 RCW, which, on January 21, 2013, or thereafter,
					invests in securities financing transactions, if:
(a) The mutual or stock savings bank is a
					state member bank and the Federal Reserve Board has determined that loans and
					extensions of credit apply to securities financing transactions; or
(b) The FDIC has determined that loans and
					extensions of credit apply to securities financing transactions in relation to
					state-chartered banks and savings banks; and
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-010 - General limitation on loans and extensions of credit

Current through Register Vol. 24-14, July 15, 2024
The total amount of loans and extensions of credit by a bank to
						a person outstanding at one time and not fully secured by collateral in a
						manner set forth in WAC
						208-512A-011, shall not exceed
						twenty percent of the capital and surplus of such bank; provided, that a bank
						shall not be deemed to have violated this section on account of any loan or
						extension of credit, if such loan or extension of credit would be classified as
						an exception to the lending limit for national banks or federal savings
						associations under applicable federal banking laws and rules that existed as of
						July 28, 1985, or as of any subsequent date not later than July 27,
						2003.
Statutory Authority: RCW 30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-010, filed 1/8/13,
							effective 2/8/13.
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-011 - Exception to general limitation - Loans and extensions of credit fully secured by readily marketable collateral

Current through Register Vol. 24-14, July 15, 2024
(1) A loan or extension of credit by a bank
					to a person outstanding at one time and fully secured by readily marketable
					collateral having a market value, as determined by reliable and continuously
					available price quotations, shall not be subject to any limitations based on
					capital and surplus.
(2)
					Notwithstanding subsection (1) of this section, if the total of such loans and
					extensions of credit, together with loans made under general limitations
					pursuant to WAC
					208-512A-010 exceed forty-five
					percent of capital and surplus, the division will review the credits as a
					possible concentration, with regard to both risk diversification within the
					bank's asset structure and diversification or other risk in the marketable
					collateral securing the loan. This limitation shall be separate and in addition
					to the general twenty percent limitation set forth in WAC
					208-512A-010.
(3) Each loan or extension of credit based on
					the foregoing limitation shall be secured by readily marketable collateral
					having a current market value of at least one hundred fifteen percent of the
					amount of the loan or extension of credit at all times.
(4) Financial instruments may be denominated
					in foreign currencies which are freely convertible to United States dollars. If
					collateral is denominated and payable in a currency other than that of the loan
					or extension of credit which it secures, the bank's procedures must require
					that the collateral be revalued at least monthly, using appropriate foreign
					exchange rates, in addition to being repriced at current market
					value.
(5) Each bank must institute
					adequate procedures to ensure that the collateral value fully secures the
					outstanding loan at all times. If collateral values fall below one hundred
					fifteen percent of the outstanding loan, to the extent that the loan is no
					longer in conformance with this section and exceeds the general twenty percent
					limitation, the loan must be brought into conformance within five business
					days, except where judicial proceedings, regulatory actions, or other
					extraordinary occurrences prevent the bank from taking action.
Statutory Authority: RCW 30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-011, filed 1/8/13,
							effective 2/8/13.
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-012 - Exception to general limitation - Nonconforming loans

Current through Register Vol. 24-14, July 15, 2024
(1) A loan or extension of credit that was
					within the limit on loans and extensions of credit when made, will not be
					deemed a violation of the legal lending limit and will be treated as
					"nonconforming" if the loan or extension of credit is no longer in conformity
					with the bank's limit on loans and extensions of credit because:
(a) The bank's capital has declined,
					borrowers have subsequently merged or formed a common enterprise, lenders have
					merged, or the limit on loans and extensions of credit or capital rules have
					changed; or
(b) Collateral securing
					the loan or extension of credit, in order to satisfy the requirements of an
					exception to the limit, has declined in value; or
(c) In the case of an extension of credit
					arising from a derivative transaction (or, if required by the FDIC or Federal
					Reserve Board, a securities financing transaction), and measured by the
					internal model method described in WAC
					208-512A-300, the extension of
					credit subject to the lending limit increases after execution of the
					transaction.
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-013 - Exception to general limitation - Declining capital - Inability to otherwise effectively operate in marketplace - Director discretion

Current through Register Vol. 24-14, July 15, 2024
Notwithstanding any provision of this chapter to the contrary,
						in the event that a bank's capital declines sufficiently to seriously impair
						the bank's ability to effectively operate in its marketplace or serve the needs
						of its customers or the community in which it is located, the director of banks
						may, upon written application and in the exercise of his or her discretion,
						grant a bank temporary permission to fund loans and extensions of credit in
						excess of such bank's limit on loans and extensions of credit. In the exercise
						of discretion, the director of banks may further specify conditions for
						granting such emergency exception and may limit emergency lending authority to
						particular types or classes of loans and extensions of
						credit.
Statutory Authority: RCW 30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-013, filed 1/8/13,
							effective 2/8/13.
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-014 - Exception to general limitation - Extenuating facts and circumstances - Standards for division determination - Director of banks' discretion

Current through Register Vol. 24-14, July 15, 2024
(1) Notwithstanding
					any provision of this chapter to the contrary, the director of banks, in his or
					her discretion, may grant an exception to the limit on loans and extensions of
					credit based on extenuating facts and circumstances.
(2) In deciding whether to grant an exception
					under this section, the director of banks shall consider:
(a) The proposed transaction for which the
					exception is sought;
(b) How the
					requested exception would affect the capital adequacy and safety and soundness
					of the requesting bank if the exception is not granted or, if the exception is
					granted, if the proposed borrower should ultimately default;
(c) How the requested exception would affect
					the loan portfolio diversification of the requesting bank;
(d) The competency of the bank's management
					to handle the proposed transaction and any resulting safety and soundness
					issues;
(e) The marketability and
					value of the proposed collateral (if any); and
(f) The extenuating facts and circumstances
					that warrant an exception in light of the purpose of the limit on loans and
					extensions of credit set forth in RCW 30A.04. 111 and this chapter.
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-015 - Renewals and additional advances under a contractual commitment to advance funds - Project funding

Current through Register Vol. 24-14, July 15, 2024
(1) A
					bank may renew a contractual commitment to advance funds and complete funding
					under that commitment if all of the following criteria are met:
(a) The completion of funding is consistent
					with safe and sound banking practices and is made to protect the position of
					the bank;
(b) The completion of
					funding will enable the borrower to complete a project for which the
					contractual commitment to advance funds was made;
(c) The amount of the additional funding does
					not exceed the unfunded portion of the bank's contractual commitment to advance
					funds; and
(d) Such contractual
					commitment to advance funds, when combined with all other outstanding loans and
					contractual commitments to advance funds to a borrower, was within the bank's
					lending limit when entered into, calculated pursuant to WAC
					208-512A-200.
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-020 - Special rule - Discount of commercial or business paper

Current through Register Vol. 24-14, July 15, 2024
A loan or extension of credit arising from the discount of
						commercial or business paper evidencing an obligation to the person negotiating
						it with recourse is excluded from the calculation of the general lending limit,
						subject to the following terms and conditions:
(1) This exclusion applies to negotiable
					paper given in payment of the purchase price of commodities in domestic or
					export transactions purchased for resale or to be used in the fabrication of a
					product, or to be used for any other business purposes which may reasonably be
					expected to provide funds for payment of the paper; and
(2) Loans or extensions of credit arising
					from the discount of paper must bear the full recourse endorsement of the
					owner; provided, however, that:
(a) Loans or
					extensions of credit arising from the discount of such paper in export
					transactions may be endorsed by such owner without recourse or with limited
					recourse, or may be accompanied by a separate agreement for limited recourse;
					and
(b) If transferred without full
					recourse, the paper must be supported by an assignment of appropriate insurance
					covering the political, credit, and transfer risks applicable to the
					paper.
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-030 - Special rule - Purchase of bankers' acceptances

Current through Register Vol. 24-14, July 15, 2024
The purchase of bankers' acceptances of the kind described in
						section 13 of the Federal Reserve Act and which are issued by other depositary
						institutions, is excluded from the calculation of the general lending limit,
						subject to the following terms and conditions:
(1) Acceptances by a bank of time drafts
					which do not meet the requirements for discount with a Federal Reserve Bank,
					are subject to the general twenty percent limitation of WAC
					208-512A-010; and
(2) During any period within which a bank
					holds its own acceptances, eligible or ineligible, having given value therefor,
					the amount given is considered to be a loan or extension of credit to the
					customer for whom the acceptance was made and is subject to the lending limits.
					To the extent that a loan or extension of credit created by discounting the
					acceptance is covered by a bona fide participation agreement, the discounting
					bank need only consider that portion of the discounted acceptance which it
					retains as being subject to appropriate limitations.
Statutory Authority: RCW 30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-030, filed 1/8/13,
							effective 2/8/13.
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-050 - Special rule - U.S. bonds, notes, certificates of indebtedness, or treasury bills, etc

Current through Register Vol. 24-14, July 15, 2024
Loans or extensions of credit secured by bonds, notes,
						certificates of indebtedness, or treasury bills of the United States or by
						other such obligations wholly guaranteed as to principal and interest by the
						United States are excluded from the calculation of the general lending limit in
						WAC 208-512A-010, subject to the
						following terms and conditions:
(1)
					This exception applies only to loans or extensions of credit which are fully
					secured by the current market value of obligations of the United States or
					guaranteed by the United States.
(2) If the market value of the collateral
					declines so that the loan is no longer in conformance with this exception and
					exceeds the general lending limit set forth in WAC
					208-512A-010, the loan must be
					brought into conformance within five business days.
(3) Securities issued by any department,
					agency, bureau, board, commission or establishment of the United States, or any
					corporation wholly owned, directly or indirectly, shall not be considered
					eligible collateral for purposes of this subsection (3), unless such securities
					shall be direct obligation of or fully guaranteed as to principal and interest
					by the United States.
Statutory Authority: RCW 30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-050, filed 1/8/13,
							effective 2/8/13.
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-060 - Special rule - Unconditional takeout commitments or guarantees of federal government

Current through Register Vol. 24-14, July 15, 2024
Loans or extensions of credit to or secured by unconditional
						takeout commitments or guarantees of any department, agency, bureau, board,
						commission, or establishment of the United States or any corporation wholly
						owned directly or indirectly by the United States shall be excluded from the
						calculation of the general lending limit set forth in WAC
						208-512A-010, subject to the
						following terms and conditions:
(1)
					This exclusion will apply to only that portion of a loan or extension of credit
					that is covered by a federal guarantee or commitment.
(2) For purposes of this exclusion, the
					commitment or guarantee must be payable in cash or its equivalent within sixty
					days after demand for payment is made.
(3) A guarantee or commitment is
					unconditional if the protection afforded the bank is not substantially
					diminished or impaired in the case of loss resulting from factors beyond the
					bank's control. Protection against loss is not materially diminished or
					impaired by procedural requirements, including default over a specific period
					of time, a requirement that notification of default be given within a specific
					period after its occurrence, or a requirement of good faith on the part of the
					bank.
Statutory Authority: RCW 30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-060, filed 1/8/13,
							effective 2/8/13.
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-070 - Special rule - Segregated deposit account in lender bank

Current through Register Vol. 24-14, July 15, 2024
Loans or extensions of credit secured by a segregated deposit
						account in the lending bank are excluded from the calculation of the general
						lending limit set forth in WAC
						208-512A-010, subject to the
						following terms and conditions:
(1)
					Deposit accounts which may qualify for this exception include deposits in any
					form generally recognized as deposits. In the case of the secured loan, the
					bank must establish internal procedures which will prevent the release of the
					security.
(2) The bank must ensure
					that a security interest has been perfected in the deposit, including the
					assignment of a specifically identified deposit and any other actions required
					by state law.
(3) A deposit which
					is denominated and payable in a currency other than that of the loan or
					extension of credit which it secures may be eligible for this exception if it
					is freely convertible to United States dollars. The deposit must be revalued at
					least monthly, using appropriate foreign exchange rates, to ensure that the
					loan or extension of credit remains fully secured. This exception applies to
					only that portion of the loan or extension of credit that is covered by the
					United States dollar value of the deposit. If the United States dollar value of
					the deposit falls to the extent that the loan is in nonconformance with this
					exception and exceeds the general twenty percent limitation, the loan must be
					brought into conformance within five business days, except where judicial
					proceedings, regulatory actions, or other extraordinary occurrences prevent the
					bank from taking such action. This exception is not authority for a bank to
					take deposits denominated in foreign currencies.
Statutory Authority: RCW 30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-070, filed 1/8/13,
							effective 2/8/13.
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-080 - Special rule - Sale of bank's assets - Unpaid portion of purchase price

Current through Register Vol. 24-14, July 15, 2024
The unpaid portion of the purchase price of a sale of a bank's
						asset or assets, if secured by such asset or assets, shall be excluded from the
						calculation of the general lending limit set forth in WAC
						208-512A-010, subject to the
						following terms and conditions:
(1)
					Any sale of a bank's asset or assets, resulting in an unpaid purchase price
					exceeding the bank's lending limit must be approved in advance of the sale by
					the board of directors, including the terms of payment of such unpaid purchase
					price, and if the purchase is by a director, officer or employee of the bank,
					shall conform to
					RCW
					   30A.12.060 and the Federal Reserve Board's
					Regulation O, at  12 C.F.R. Sec. 215.3.
(2) The bank must ensure that a security
					interest has been perfected in the collateral, including execution and
					recording or filing of documents and any other action required by state
					law.
Statutory Authority: RCW    30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-080, filed 1/8/13,
							effective 2/8/13.
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-090 - Special rule - Discount of negotiable or nonnegotiable installment consumer paper

Current through Register Vol. 24-14, July 15, 2024
(1) Loans and
					extensions of credit arising from the discount of negotiable or nonnegotiable
					installment consumer paper which carries a full recourse endorsement or
					unconditional guarantee by the person transferring the paper shall be subject
					to a maximum limitation equal to twenty per centum of capital and
					surplus.
(2) If a bank's files or
					the knowledge of its officers of the financial condition of each maker of such
					consumer paper is reasonably adequate, and an officer of the bank designated
					for that purpose by the board of directors of the bank certifies in writing
					that the bank is relying primarily upon the responsibility of each maker for
					payment of such loans or extensions of credit and not upon any full or partial
					recourse endorsement or guarantee by the transferor, the limitations of this
					section as to the loans or extensions of credit of each such maker shall be the
					sole applicable loan limitations.
(3) This exception allows a bank to discount
					negotiable or nonnegotiable installment consumer paper of one person in an
					amount equal to twenty per centum of its capital and surplus if the paper
					carries a full recourse endorsement or unconditional guarantee by the seller
					transferring such paper. The unconditional guarantee may be in the form of a
					repurchase agreement or a separate guarantee agreement. A condition reasonably
					within the power of the bank to perform, such as the repossession of
					collateral, will not be considered to make conditional an otherwise
					unconditional agreement.
(4) For
					purposes of this section:
(a) "Consumer" means
					the user of any products, commodities, goods, or services, whether leased or
					purchased, and does not include any person who purchases products or
					commodities for the purpose of resale or for fabrication into goods for sale;
					and
(b) "Consumer paper" includes
					paper relating to automobiles, mobile homes, residences, office equipment,
					household items, tuition fees, insurance premium fees, and similar consumer
					items. Also included is paper covering the lease (where the bank is not the
					owner or lessor) or purchase of equipment for use in manufacturing, farming,
					construction, or excavation.
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-100 - Combining loans and extensions of credit made to separate persons - Generally

Current through Register Vol. 24-14, July 15, 2024
(1)
					Loans or extensions of credit to one person will be attributed to another
					person or persons when:
(a) The proceeds of
					the loans or extensions of credit are intended for or are used for the direct
					benefit of the other person or persons; or
(b) A "common enterprise" exists between the
					persons.
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-110 - Loans to partnerships, joint ventures, and associations

Current through Register Vol. 24-14, July 15, 2024
(1) Loans or extensions of credit to a
					partnership, joint venture, or association shall, for purposes of this chapter,
					be considered loans or extensions of credit to each member of such partnership,
					joint venture, or association.
(2)
					Loans or extensions of credit to members of a partnership, joint venture, or
					association shall be considered loans or extensions of credit to the
					partnership, joint venture, or association if one or more of the tests set
					forth in WAC
					208-512A-100 is satisfied with
					respect to one or more of the members. However, loans to members of a
					partnership, joint venture, or association will not be attributed to other
					members of the partnership, joint venture, or association unless one or more of
					the tests set forth in WAC
					208-512A-100 is satisfied with
					respect to such other members. The tests set forth in WAC
					208-512A-100 shall be deemed
					satisfied when loans or extensions of credit are made to members of a
					partnership, joint venture, or association for the purpose of purchasing an
					interest in such partnership, joint venture, or association.
(3) The rule set forth in subsection (1) of
					this section is not applicable to limited partners in limited partnerships or
					to members of joint ventures if such partners or members, by the terms of the
					partnership or membership agreement, are not to be held liable for the debts or
					actions of the partnership, joint venture, or association. However, the rules
					set forth in WAC
					208-512A-100 are applicable to
					such partners or members.
Statutory Authority: RCW 30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-110, filed 1/8/13,
							effective 2/8/13.
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-120 - Loans to limited liability companies

Current through Register Vol. 24-14, July 15, 2024
Loans or extensions of credit to a limited liability company
						shall, for purposes of this chapter, be considered loans or extensions of
						credit to a corporation, and shall not be subject to the provisions of WAC
						208-512A-110.
Statutory Authority: RCW 30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-120, filed 1/8/13,
							effective 2/8/13.
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-130 - Loans to subsidiaries and corporate groups

Current through Register Vol. 24-14, July 15, 2024
(1) Loans or extensions of credit to a person
					and its subsidiaries or to subsidiaries of one person will not be combined
					where the person and its subsidiaries are not engaged in a "common enterprise"
					as defined in WAC
					208-512A-100(2).
(2) If members of a corporate group (a person
					and all its subsidiaries) are either:
(a)
					"Substantially financially interdependent," as defined in WAC
					208-512A-100(3);
					or
(b) Engaged in "common
					enterprise," as defined in WAC
					208-512A-100(2),
					then the total amount of loans or extensions of credit to these persons must be
					attributed to each of the other persons in the corporate group.
Conversely, if members of a corporate group are neither
						substantially financially interdependent nor engaged in "common enterprise,"
						then the loans to different members are separately subject to a twenty percent
						limitation. In no event may the total amount of loans or extensions of credit
						by a state bank to a corporate group exceed fifty percent of the bank's capital
						and surplus.
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-200 - Computation of time - Calculation date of lending limits

Current through Register Vol. 24-14, July 15, 2024
(1) For purposes of determining compliance
					with RCW
					   30A.04.111 and this chapter, a bank shall
					determine its lending limit as of the most recent of the following dates:
(a) The last day of the preceding calendar
					quarter; or
(b) The date on which
					there is a change in the bank's capital category for purposes of the Federal
					Deposit Insurance Act, at 12
					U.S.C.
					1831o(b)(1).
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-300 - Credit exposure arising from derivative transactions

Current through Register Vol. 24-14, July 15, 2024
(1) This section sets forth the rules for
					calculating the credit exposure arising from a derivative transaction entered
					into by a bank for purposes of determining the bank's lending limit pursuant to
					RCW
					   30A.04.111 and this chapter.
(2) Subject to the direction of the division,
					a bank shall calculate the credit exposure to a counterparty arising from a
					derivative transaction by means of:
(a) The
					internal model method;
(b) The
					conversion factor matrix method;
(c) The remaining maturity method;
					or
(d) The current exposure
					method.
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-310 - Securities financing transactions

Current through Register Vol. 24-14, July 15, 2024
(1) Only to the extent required by the FDIC,
					a bank that is a state insured bank shall comply with all rules governing
					limits on extensions of credit related to a state insured bank's credit
					exposure to securities financing transactions.
(2) Only to the extent required by the
					Federal Reserve Board, a bank that is a state member bank shall comply with all
					rules governing limits on extensions of credit related to a state member bank's
					credit exposure to securities financing transactions.
Statutory Authority: RCW 30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-310, filed 1/8/13,
							effective 2/8/13.
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-320 - Policies and procedures related to derivative transactions, etc

Current through Register Vol. 24-14, July 15, 2024
To fulfill the requirements of section 611 of the Dodd-Frank
						Wall Street Reform and Consumer Protection Act, codified as section 18(y) of
						the Federal Deposit Insurance Act,  12 U.S.C. Sec. 1828(y), and the requirements
						(if any) of the FDIC and the Federal Reserve Board in relation to securities
						financing transactions by state insured banks and state member banks,
						respectively, the division may publish and implement policies and procedures,
						consistent with
						RCW
						   30A.04.111 and this chapter, related to
						examination for and supervision and enforcement of WAC
						208-512A-300 and
						208-512A-310.
Statutory Authority: RCW    30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-320, filed 1/8/13,
							effective 2/8/13.
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-400 - Effect of OCC rules, interpretations and opinions as guidance

Current through Register Vol. 24-14, July 15, 2024
Where
						RCW
						   30A.04.111 and this chapter do not
						specifically address certain transactions involving loans and extensions of
						credit, the division may, as necessary, in its interpretations and supervision
						and enforcement of banks, be guided by applicable rules, interpretations, and
						opinions of the Office of the Comptroller of the Currency in the interest of a
						bank's safety and soundness, but only to the extent that such rules,
						interpretations, and opinions are compatible with the provisions of
						RCW
						   30A.04.111 and this
						chapter.
Statutory Authority: RCW    30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-400, filed 1/8/13,
							effective 2/8/13.
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-500 - Loans and extensions of credit to insiders and their immediate family

Current through Register Vol. 24-14, July 15, 2024
No provision of Titles 30A and 32 RCW, chapter 208-512 WAC, or
						this chapter, shall limit the duty of a bank or a bank's affiliate, independent
						of any requirements of this chapter, to also comply with the provisions of
						Federal Reserve Board Regulation O,  12 C.F.R. Part 215, which relates to loans
						and extensions of credit to insiders of a bank or bank affiliate and their
						immediate family.
Statutory Authority: RCW    30.04.030, 30.04.111, 30.04.215,
							30.08.140,
							32.08.157,
							43.320.040, and
							43.320.050 and Section 611 of the
							Dodd-Frank Wall Street Reform and Consumer Protection Act (codified as section
							18(y) of the Federal Deposit Insurance Act,  12 U.S.C. §
											1828(y)), which
							takes effect January 21, 2013. 13-03-037, §
										208-512A-500, filed 1/8/13,
							effective 2/8/13.
Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-514 - Mutual savings banks › Section 208-514-010 - Facilitating loans - Real property

Current through Register Vol. 24-14, July 15, 2024
For purposes of this section the following words shall have the
						following meanings:
(1) "Foreclosed
					property" means real estate or interest therein, or other property used in
					connection therewith acquired through foreclosure or similar action, deed of
					trust sales, or by deed in lieu of any thereof.
(2) "Facilitating loan" means a loan or real
					estate contract covering foreclosed property made by a mutual savings bank to
					the purchaser of the foreclosed property.
(3) "Loan limits" means the limitations on
					investments imposed by
					RCW
					   32.20.410.
A mutual savings bank may make a facilitating loan for not in
						excess of the sale price of the property if the board of trustees or officers
						or committees designated by the board deem it prudent to dispose of the
						property in that manner. Facilitating loans shall not be deemed violations of
						RCW 32.20.250 or 32.20.260, nor shall the division of banks require
						facilitating loans to be classified as loans made pursuant to RCW 32.20.255.
						Until such time as a facilitating loan conforms to the requirements of RCW
						32.20.250, 32.20.255 or 32.20.260, or other investment statutes relating to
						mutual savings bank, it shall be carried on the books and records of the bank
						as "Other real estate loans - Debts previously contracted," and shall not be
						carried at more than the value of the property securing it. Facilitating loans
						shall be included in determining the amounts invested which are subject to the
						loan limits to the extent of the value at which they are carried on the books
						of the bank. The bank may, however, make facilitating loans regardless of the
						loan limits.
Statutory Authority: RCW 30.04.030 and
							43.320.040. 00-17-141, amended and
							recodified as §
										208-514-010, filed 8/22/00,
							effective 9/22/00; Order 36, § 50-14-010, filed
							7/8/76.