Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

Section 18 of chapter 172 of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

No officer or director of a trust company shall, except as hereinafter provided, borrow from or otherwise become indebted to a trust company of which he is an officer or director, and no trust company shall, except as hereinafter provided, make any loan or extend credit in any other manner to any of its own officers or directors; provided, however, that with the prior approval of a majority of the entire board of directors, excluding any member thereof involved in the loan or extension of credit, a trust company may loan or extend credit to any such officer and such officer may become indebted to such trust company, in an amount not exceeding twenty thousand dollars on a loan or extension of credit, secured or unsecured, and in an amount not exceeding sixty thousand dollars on a loan or extension of credit intended or secured for educational purposes, and in an amount not exceeding one hundred and fifty thousand dollars on a loan secured by a mortgage on real estate improved with a single family dwelling which is occupied, or is to be, occupied by such officer, or by such director who is not an officer of such trust company, subject to the limitations contained in chapter one hundred and sixty-seven E. Such trust company shall not give a preferential rate of interest or other preferential terms on any such loan or extension of credit to any such officer or to any such director.