Section 06.05.215. Liability of directors and officers for certain loans.

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A director, executive officer, managing officer, or issuing officer of a state bank who knowingly or with gross negligence approves or permits the funds of the bank to be lent or overdrafts to be made in an unsafe or unsound manner, or in violation of an order of the department, the bank's lending policies, this title, or a regulation adopted under this title, is personally liable to the bank for all the loans and overdrafts. The bank may enforce the liability against the director or officer by an action in a court of competent jurisdiction.

Notes

History

(Sec. 3.164 ch 129 SLA 1951; am Sec. 14 ch 169 SLA 1978; am Sec. 33 ch 26 SLA 1993)

                    
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