Excess Loan

Excess Loan

A loan a bank makes to an individual over and above statutory limits. A national bank in the United States may not lend more than 15% of its capital to one person. For a state bank, the limit is 10%. An excess loan is any loan over these percentages.
References in periodicals archive ?
A significant reduction in the bank's internal capital generation or an acceleration of growth that leads to a decrease in FCC metrics consistently below 9% along with a material decline in excess loan loss reserves could also result in negative rating actions.
The dealership would then split this excess loan amount with the buyer, according to court documents.
This property was previously unencumbered, and the excess loan proceeds above typical closing costs and reserves were distributed to the partners on a pro rata basis.
The loan allowed the borrower to recapture excess loan proceeds.
This feature gives rebates to customers who make advance or excess loan payments.
Employers can use the updated VFC Program to correct loans that exceed applicable limits, by requiring a participant to return the excess loan amount to the plan and amortizing the remaining principal balance as of the correction date over the remaining duration of the original loan.
As the senior lien bonds amortize, released reserves, excess loan repayments, and interest earnings are deposited into a surplus fund, and are then available to make debt service payments on any subordinate lien bonds.
At closing, USD 30m of the excess loan proceeds were deposited into reserve accounts to be used predominantly for future capital expenditures and USD 3.