Answer:
It would depend on the type of bank. If it is national bank, no.
12 USC 83. Loans by bank on its own stock
a) General prohibition
No national bank shall make any loan or discount on the security of the shares of its own capital stock.
If it is a state bank, you would have to refer to your state laws.
First published on BankersOnline.com 10/20/08
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