§ 103.* Restrictions on loans, purchases of securities and total\nliabilities to bank or trust company of any one person.\n * NB Effective until notification of the superintendent of financial\nservices\n * Restrictions on loans, purchases of securities, total liabilities\nand other credit exposures to a bank or trust company of any one person.\n * NB Effective upon notification of the superintendent of financial\nservices\n No bank or trust company shall:\n 1. Lend to any person (which term shall mean, for the purposes of this\nsubdivision, any individual, partnership, unincorporated association,\ncorporation or body politic) an amount which will exceed fifteen per\ncentum of the capital stock, surplus fund and undivided profits of such\nbank or trust company. Any extension of credit to a person by means of\nthe issue or confirmation of irrevocable sight letters of credit upon\nthe responsibility of such person, or by means of the discount or\npurchase of, or investment in, bills of exchange, notes, bonds,\ndebentures or other obligations made, drawn or accepted by such person,\nshall be considered a loan to such person for the purposes of this\nsubdivision except that (1) in the case of an accepted bill of exchange,\nthe loan shall be considered, subject to clause (2) below, to be made to\nthe acceptor and not to the drawer; and (2) if any bill of exchange,\nnote, bond, debenture or other obligation is endorsed without limitation\nor guaranteed by any person and discounted with, or sold to, such bank\nor trust company by such person, the loan shall be considered a loan to\nsuch person and not to the maker, drawer or acceptor of such bill of\nexchange, note, bond, debenture or other obligation. The foregoing\nlimitation is subject to the following exceptions:\n (a) The limitations in this subdivision shall not apply to (1) any\nloan to the extent that the United States, this state or any city,\ncounty, town, village or school district of this state, or any\ndepartment, agency or instrumentality of the United States or this state\ndesignated by the superintendent by general or specific regulation, has\nagreed to pay the principal and interest thereof, or has guaranteed\npayment (by guaranty or commitment to purchase or otherwise) of such\nprincipal and interest, or is committed to supply, by loan, subsidy or\notherwise, funds sufficient to pay such principal and interest, or has\notherwise pledged its faith and credit for the payment of such principal\nand interest; or (2) any loan secured by not less than a like amount\n(based on their principal amount or market value, whichever is lower, at\nthe time the loan is made) of direct obligations of the United States or\nof this state or of any city, county, town, village or school district\nof this state or of any such department, agency or instrumentality of\nthe United States or this state or by obligations otherwise fully\nguaranteed as to principal and interest by the United States.\n (b) The limitations in this subdivision shall not apply to any loan to\nthe extent such loan is secured by cash collateral which is not subject\nto withdrawal.\n In addition, the limitations in this subdivision shall not apply (i)\nto loans arising from the discount of commercial or business paper\nevidencing an obligation to the person negotiating it with recourse;\n(ii) to loans to the student loan marketing association; (iii) to loans\nto any financial institution or to any receiver, conservator,\nsuperintendent of financial services, or other agent in charge of the\nbusiness and property of such financial institutions when such loans are\napproved by the superintendent; (iv) to the purchase of bankers'\nacceptances of the kind described in section 13 of an act of congress\nentitled the "Federal Reserve Act" and issued by other banking\ncorporations; and (v) to loans made to facilitate prompt clearance or\nsettlement arising from the purchase or sale of readily marketable\nsecurities w
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