205 ILCS 5/37

(205 ILCS 5/37) (from Ch. 17, par. 347)

Sec. 37.

Loans to officers and loans on and purchases of bank's own
stock.

(1) No state bank shall make any loan or
extension of credit in excess of the limits, as determined by the
Commissioner, at any one time outstanding each to its president, or to any
of its vice presidents or its salaried officers or employees or directors
or to corporations or firms, controlled by them, or in the management of
which any of them are actively engaged, unless such loan or extension of
credit shall have been first
approved, by the board of directors.  The Commissioner shall prescribe such
limits by rules.

(2) It shall not be lawful for a state bank to make any loan or
discount on the security of the shares of its own capital stock or
preferred stock or on the security of its own debentures or evidences of
debt which are either convertible into capital stock or are junior or
subordinate in right of payment to deposit or other liabilities of the
bank.

(3)(a) For purposes of this Section, "control" means (i) ownership,
control, or power to vote 25% or more of the outstanding shares of
any class of voting security of the corporation or firm, directly or
indirectly, or acting through or in concert with one or more other
persons; (ii) control in any manner over the election of a majority
of the directors of the corporation or firm; or (iii) the power to exercise
a controlling influence over the management or policies of the
corporation or firm, directly or indirectly, or acting through or in
concert with one or more persons.

(3)(b) A person does not have the power to exercise a controlling
influence over the management or policies of a corporation or firm
solely by virtue of the person's position as an officer or director of
the corporation or firm.

(3)(c) A person is presumed to have control, including the power to
exercise a controlling influence over the management or policies, of
a corporation or firm if:

(i) the person:

(A) is an executive officer, director, or