Banking Control Law

A bank may not: 1. use its stocks as security to extend a loan, grant a credit facility, provide a security or guarantee, or undertake any other financial obligation; 2. extend, without security, a loan, grant a credit facility, provide a security or guarantee, or undertake any other financial obligation for the benefit of: a) members of its board of directors or its auditors; b) an entity that is not a joint stock company if any of its board members or auditors is a partner, manager, or has a direct financial interest therein; and c) a person or an entity that is not a joint stock company if any of the bank’s board members or auditors is a guarantor thereof. 3. extend, without security, a loan, grant a credit facility, provide a security or guarantee, or undertake any other financial obligation for the benefit of any of its officers or staff for an amount not exceeding four-months’ salary. Any member of the board of directors, auditor, or manager of a bank who violates paragraphs (2) and (3) of this Article shall be deemed to have resigned from his post.