R331-23-4. Combining Loans to Separate Borrowers - General Rule

(1) Loans, extensions of credit and derivative transactions to one person will be combined where the proceeds of the loan, extension of credit and derivative transactions are to be used for the direct benefit of any other person or persons.

(2) Loans, extensions of credit and derivative transactions to a general partnership, joint venture or association shall, for purposes of this rule, be considered loans or extensions of credit jointly and severally to each member of such partnership, joint venture or association unless the agreement creating the general partnership, joint venture or association provides otherwise, in which case the loans or extensions of credit shall be allocated to each member only to the extent provided for by the terms of any such agreement.

(3) The sum of all loans, extensions of credit and the credit exposure to a derivative transaction by a bank or industrial loan corporation outstanding at any one time to a person and all of its affiliates may not exceed 50% of the bank's or industrial loan corporation's total capital.