45 NAC 14-001. EXCEPTION TO LENDING LIMIT

001 EXCEPTION TO LENDING LIMIT. 001.01 Neb. Rev. Stat. § 8-141 provides that a bank may directly or indirectly loan twenty-five percent of the total of its capital, surplus, capital notes, and debentures or fifteen percent of its unimpaired capital and unimpaired surplus, whichever is greater, to any person. When the obligation is secured by livestock, a bank may loan an additional ten percent of such capital, surplus, capital notes, and debentures or of such unimpaired capital and unimpaired surplus. 001.02 To qualify for the additional ten percent advancement, a bank must: 001.02A Have a secured interest in any livestock upon which a loan is to be made, and 001.02B Show the value of livestock securing the additional ten percent advancement equals one hundred fifteen percent of the face value of the note. 001.03 For purposes of this Rule, the term “unimpaired capital” is as defined in Neb. Rev. Stat. § 8-141.