Answer:
A bank may extend credit to an executive officer:
(a) In any amount for the education of the executive officer’s children;
(b) In any amount with respect to the acquisition, maintenance, construction or improvement of the executive officer’s residence; provided, however, that the extension of credit must be secured by a first lien on the property; and
(c) For any other purpose in an aggregate amount not to exceed the higher of (i) $25,000 or (ii) 2.5 percent of the bank’s unimpaired capital and surplus (in no event may this percentage exceed $100,000).
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