South Carolina General Assembly
103rd Session, 1979-1980

Bill 554

                    Current Status

Bill Number:               554
Ratification Number:       314
Act Number                 304
Introducing Body:          Senate
Subject:                   Limitations on loans to directors and
                           officers
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A304, R314, S554)

AN ACT TO AMEND SECTION 34-13-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIMITATIONS ON LOANS TO BANK DIRECTORS AND OFFICERS AND LIMITATIONS ON LOANS TO OTHER COMPANIES OR CORPORATIONS IN WHICH SUCH PERSONS ARE ALSO OFFICERS OR IN WHICH SUCH PERSONS HAVE A FINANCIAL INTEREST, SO AS TO PROVIDE THAT THE ABOVE LIMITATIONS SHALL NOT APPLY TO LOANS MADE TO COUNTY BUSINESS DEVELOPMENT CORPORATIONS INCORPORATED UNDER THE PROVISIONS OF CHAPTER 39, TITLE 33, OF THE 1976 CODE.

Be it enacted by the General Assembly of the State of South Carolina:

Limitations on loans to directors and officers

Section 1. Section 34-13-80 of the 1976 Code is amended by changing the period at the end to a comma and adding: "or to county business development corporations incorporated under the provisions of Chapter 39 of Title 33." The section when amended shall read:

"Section 34-13-80. No director or other officer of any such bank shall borrow therefrom, except on good security, to be approved in writing by two-thirds of the whole board of directors of such bank; and no director or other officer of any such bank shall become an endorser or surety upon any loan or credit made or extended to any other director or officer of such bank. The total liabilities to any such bank of any director or other officer or of any firm of which such director or other officer is a member or of any company or corporation of which such director or other officer is an officer shall at no time exceed one-tenth part of the amount of the capital stock, capital notes and debentures of any such bank actually paid in and its surplus. In the computation of total liability of a bank director or other officer to the bank, there shall be included all loans and credits from the bank, direct or indirect, to him or to any firm or company owned by him or his spouse or unemancipated children. In addition, all loans or credits from the bank to a corporation or other organization in which the director or officer or his spouse or unemancipated children own ten percent or more of the capital stock or other evidences of financial interest or ownership shall be included in such computation. When any group of directors in the same bank owns an aggregate interest of ten percent or more in the same business, the liability of such business to the bank shall be included as a part of the total liability of each director owning any part of such business. This section shall not apply to loans on cotton in bales soybeans, corn, oats, wheat, rye or barley stored in warehouses and evidenced by receipts issued therefor by the bank to any of its directors or other officers, in which case loans may be made as in other instances.

The provisions of this section shall not apply to loans made to eleemosynary or nonprofit corporations, or to county business development corporations incorporated under the provisions of Chapter 39 of Title 33."

Time effective

Section 2. This act shall take effect upon approval by the Governor.