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#1151526 - 03/25/09 09:16 PM L Legal Lending Limit
Tesla Offline
Power Poster
Joined: Nov 2003
Posts: 3,726
I am desperate for a confirmation. I have talked to the IL Division of Banking, but I am still not sure I have this right, so if you are a legal lending specialist (or just understand it), please help me out! smile Cite: 205 ILCS 5/32

If our unimpaired capital & surplus is $10,000,000
A borrower can have loans up to $2,500,000 (25% of un-capital)
That same borrower can payment guarantee loans up to $2,500,000, but the total dollars borrowed and payment guaranteed by that same person cannot exceed $5,000,000 (or 50% of unimpaired capital/surplus).

Is that correct?

I am desperate for a confirmation, so please help! smile

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#1152297 - 03/26/09 07:56 PM Re: L Legal Lending Limit Tesla
Oursisnottoreasonwhy Offline
Platinum Poster
Oursisnottoreasonwhy
Joined: Nov 2004
Posts: 503
Central Illinois
ILLINOIS LENDING LIMIT CALCULATION



From most recent Call Report

Tier 1 Capital $13,738,000.00 (Call Report Schedule RC-R Line 11)

Tier 2 Capital $558,000.00 (Call Report Schedule RC-R Line 17)

Total Tier 1 and Tier 2 Capital $14,296,000.00

Illinois Lending Limit 25% of T-1 and T-2 Capital = $3,574,000.00

An individual under Illinois Banking Law can have Direct Loans (loans they personally sign on) up to the lending limit and Indirect Loans (loans which they guaranty)up to the lending limit. So combined direct and indirect it would be 50%.

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#1153461 - 03/29/09 03:18 PM Re: L Legal Lending Limit Oursisnottoreasonwhy
Tesla Offline
Power Poster
Joined: Nov 2003
Posts: 3,726
Great! Thank you!
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It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

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