Excess Loan

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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 ?
However, many seem to miss the obvious point that when these commissions are recycled in the form of payments, excess loans, or off market loans, the rebate is every bit as real as if paid with cash.
They have excess deposits and we have excess loans," he said and pointed out what a good balance it would be for both banks.