Section 3 AAC 02.195 - Borrowing(a) Neither a bank's federal funds purchased nor its sale of securities, which a bank may deal in, underwrite, purchase, and sell for its own account without limitation, subject to an agreement that the bank will repurchase at the end of a stated period, constitute "money borrowed" for purposes of AS 06.05.255.(b) The purchase of securities subject to an agreement that the seller will repurchase at the end of a stated period is regarded as a loan from the purchaser to the seller and not as an obligation of the underlying obligor or the security.(c) The department will consider a bank's written request to allow a percentage larger than 15 percent of the bank's total assets, up to a maximum of 35 percent, under AS 06.05.255.Eff. 8/18/88, Register 107; am 1/14/89, Register 109; am 1/10/94, Register 129; am 9/21/2018, Register 227, October 2018Authority:AS 06.05.005
AS 06.05.255