Convenience and Needs of the Community to be Served. The evidence indicates applicant is a well-established bank, able and anxious to expand the services it offers and to extend them into new areas. Bank of Lambert's main office is sorely in need of replacement which applicant is prepared to provide, along with trust services, an increase in lending limitations from $45,000 to $386,000, safe deposit box service and exchange of checks on a full-par basis. On the basis of the above information, and other information available to the Corporation, the Board of Directors has concluded that approval of the bank's application is warranted. 1 Resources acquired in transfer of Malvern Bank's Paoli office. 2 Resources acquired with transfer of Chemical Bank's Delancey Street office. 93 FEDERAL BANKING LEGISLATION-1967 Public Law 90-44 90th Congress, S. 714 An Act To amend section 22(g) of the Federal Reserve Act relating to loans to executive officers by member banks of the Federal Reserve System, and to amend the Federal Credit Union Act to modify the loan provisions relating to directors, members of the supervisory committee, and members of the credit committee of Federal credit unions. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: "(g)(1) Except as authorized under this subsection, no member bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— "(A) the bank would be authorized to make it to borrowers other than its officers; "(B) it is on terms not more favorable than those afforded other borrowers; "(C) the officer has submitted a detailed current financial statement; and "(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. "(2) With the specific prior approval of its board of directors, a member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made "(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and "(B) no other loan by the bank to the officer under authority of this paragraph is outstanding. "(3) A member bank may make extensions of credit to any executive officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. "(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. |