Governor Perdue Signs House Bill 926
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2/11/10 Today Governor Sonny Perdue signed HB 926, sponsored
by Rep. James Mills, to help “This legislation will increase stability in Current state law restricts banks from lending more than 15
percent of their capital to any one borrower. With the recent
pressure on bank capital levels, current law has had the
unintended consequence of disallowing banks to renew loans, even
with great customers. That hurts banks by kicking out some of
their paying customers, and it hurts borrowers who are meeting
their obligations. This bill gives more flexibility to
state-chartered banks whose legal lending limit has been lowered
because of declining capital on their balance sheet. Under this law banks will be able to renew loans with
existing customers even if financial strain has made that loan
above the normal lending limit. The law does not require banks
to renew such loans. The Senate passed the bill today by a 52-0 vote. The measure
passed in the House last week by a 165-1 vote. “This needed change will allow some of the bank's very best
customers to renew performing loans. Without this change, a
constituent who has made every payment would be denied a loan
renewal even at no fault of their own," said Banks and Banking
Committee Chairman James Mills. “This measure will save
businesses and jobs for Georgians.” |
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