The purpose of this bulletin is to establish the maximum amount of credit a bank may extend to its executive officer(s) as stipulated in Section 211(1) of the Michigan Banking Code of 1969. The section, as amended by Public Act No. 177 of 1985, states, in part:

"Sec. 211(1)... With a prior approval of a 2/3 majority of the entire board of directors a bank may extend credit to an executive officer of the bank and the executive officer may become indebted to the bank in an amount not exceeding an amount established from time to time by the Commissioner, except that credit secured by a real estate mortgage upon an executive officer's residence and credit to finance the education of the executive officer or the spouse or children of the executive officer shall not be subject to such limitation. A loan made pursuant to this subsection shall be subject to the loan limitations as provided in Sections 196 to 198."

Signed:	Eugene W. Kuthy, Commissioner
	Donald P. Mann, Director, Bank & Trust Division
Dated:	December 11, 1985