My question is related to the "single insider" aggregate lending limits.
A bank cannot extend credit to any one insider, together with his or her related interest in excess of -
a. 15 percent of the bank's unimpaired capital and umimpared surplus for loans not fully secured by readily marketable collateral having a market value at least equal to the amount of credit extended; plus,
b. an additional 10 percent of the bank's unimpaired capital and umimparied surplus in the case of loans that are fully secured by readily marketable collateral having a market value at least equal to the amount of credit extended.
My question is related to exempt credits. If we have a director who is classified as an executive officer, any loans made to that executive officer that are fully secured by a "perfected security interest in a segregated deposit account maintained by the lending bank" - are exempt and no limits apply. correct?