Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-04 - General provisions › Section 208-04-030 - Requirements for loans to department employees and the director

Current through Register Vol. 24-14, July 15, 2024
The following procedures and requirements govern loans from
						financial institutions to employees and the director:
(1)
Requirements for all
					employees.
No employee of the department may borrow money from a
					financial institution under the jurisdiction of the department unless the loan
					is consistent with RCW 43.19.080. The director shall inform employees of the
					requirements for loans from financial institutions that are specified in these
					rules and in RCW 43.19.080.
(2)
Loan notification and determination of conformance requirements for
					employees with administrative or regulatory duties and the director.
(a) Any employee of the department who the
					director determines has administrative authority or carries out functions of a
					regulatory or discretionary nature that could affect a financial institution or
					its officers or employees shall provide notice to the director of a proposed
					loan by the financial institution to the employee. Upon receipt of the notice,
					the director or the director's designee shall promptly review the loan and
					notify the employee in writing whether or not the loan conforms with RCW
					43.19.080. In cases where the loan does not conform, the director or the
					director's designee shall notify the employee in writing of the reason why it
					fails to conform and demand that the terms of the loan be modified to conform
					with the law. If the loan is not modified, the director shall commence
					appropriate action.
(b) In making a
					loan conformance determination required by (a) of this subsection, the director
					or the director's designee may consider:
(i) A
					written and sworn declaration by the applicant's loan officer or broker that
					the terms offered and underwriting procedures used are not less stringent than
					those prevailing at the time for comparable transactions with other persons not
					employed by either the department or the financial institution;
(ii) Rates and terms readily available in a
					newspaper of general circulation quoting rates and terms contemporaneous with
					the applicant's loan; and
(iii)
					Other relevant information necessary to make a knowledgeable determination that
					the loan conforms with RCW 43.19.080.
(c) The employee shall provide notice of
					loans covered by (a) of this subsection on forms prepared by the department.
					Forms must include all material terms, including but not limited to, the type
					of loan, the name of the financial institution, the interest rate, the term,
					the amount financed, the loan fees, and all collateral requirements. Forms must
					also include the sworn declaration described in (b)(i) of this
					subsection.
(d) The director shall
					provide notice to the governor of a proposed loan by a financial institution to
					the director that is subject to RCW 43.19.080. The governor or the governor's
					designee shall make a written determination of conformance of the loan in
					accordance with the same procedures and requirements and using the same forms
					as are required for other employees of the department, as specified in this
					section.