Regulatory Alerts2022-08-02
Legal Lending Limit Attribution (OFI Advisory Opinion No. 3)
The Louisiana Office of Financial Institutions establishes case-by-case attribution rules to determine whether loans qualify as indirect borrowings for legal lending limit calculations under state banking statutes. These rules mandate full attribution for guarantees and co-signers, equal virile shares for partners, proportional debt for limited partners, and community property attribution for spouses. Loans are further combined when borrowers share a common enterprise or demonstrate substantial financial interdependence, defined as deriving over fifty percent of annual gross receipts or expenditures from each other.
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