§412:9-404  Limitation on loans andextensions of credit to one borrower.  (a)  No depository financialservices loan company shall permit a person to become indebted or liable to it,either directly or indirectly, on loans and extensions of credit in a totalamount outstanding at any one time in excess of twenty per cent of thedepository financial services loan company's capital and surplus; provided thatsuch aggregate amount may be increased to one hundred per cent of thedepository financial services loan company's capital and surplus if the loansand extensions of credit made to the person in excess of twenty per cent of thedepository financial services loan company's capital and surplus are fullysecured by real property as provided in section 412:9‑405.

(b)  The limitations set forth in this sectionshall not apply to:

(1)  Loans and extensions of credit to the extentsecured by a pledge or security interest in a deposit account in the lendingdepository financial services loan company; and

(2)  Loans and extensions of credit secured by theinterest-bearing obligations of the United States or those for which the faithand credit of the United States are distinctly pledged to provide for thepayment of principal and interest thereof or of the State or any county ormunicipal or political subdivision of this State, issued in compliance with thelaws of this State, where the market value of the security shall be at any timenot less than one hundred five per cent of the face amount of the loans and extensionsof credit. [L 1993, c 350, pt of §1]