# WAC 208-512A-011: WAC 208-512A-011. Exception to general limitation—Loans and extensions of credit fully secured by readily marketable collateral > Washington · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_011 ## Section - **Citation:** WAC 208-512A-011 - **Heading:** WAC 208-512A-011. Exception to general limitation—Loans and extensions of credit fully secured by readily marketable collateral - **Jurisdiction:** Washington - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Washington Administrative Code / Title 208 / Chapter 208-512A / Section 208-512A-011 ## Text (1) A loan or extension of credit by a bank to a person outstanding at one time and fully secured by readily marketable collateral having a market value, as determined by reliable and continuously available price quotations, shall not be subject to any limitations based on capital and surplus. (2) Notwithstanding subsection (1) of this section, if the total of such loans and extensions of credit, together with loans made under general limitations pursuant to WAC 208-512A-010 exceed forty-five percent of capital and surplus, the division will review the credits as a possible concentration, with regard to both risk diversification within the bank's asset structure and diversification or other risk in the marketable collateral securing the loan. This limitation shall be separate and in addition to the general twenty percent limitation set forth in WAC 208-512A-010 . (3) Each loan or extension of credit based on the foregoing limitation shall be secured by readily marketable collateral having a current market value of at least one hundred fifteen percent of the amount of the loan or extension of credit at all times. (4) Financial instruments may be denominated in foreign currencies which are freely convertible to United States dollars. If collateral is denominated and payable in a currency other than that of the loan or extension of credit which it secures, the bank's procedures must require that the collateral be revalued at least monthly, using appropriate foreign exchange rates, in addition to being repriced at current market value. ay be denominated in foreign currencies which are freely convertible to United States dollars. If collateral is denominated and payable in a currency other than that of the loan or extension of credit which it secures, the bank's procedures must require that the collateral be revalued at least monthly, using appropriate foreign exchange rates, in addition to being repriced at current market value. (5) Each bank must institute adequate procedures to ensure that the collateral value fully secures the outstanding loan at all times. If collateral values fall below one hundred fifteen percent of the outstanding loan, to the extent that the loan is no longer in conformance with this section and exceeds the general twenty percent limitation, the loan must be brought into conformance within five business days, except where judicial proceedings, regulatory actions, or other extraordinary occurrences prevent the bank from taking action. ## Nearby sections - [WAC 208-512A-001 WAC 208-512A-001. Promulgation of rules](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_001.md) - [WAC 208-512A-003 WAC 208-512A-003. Findings and purpose](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_003.md) - [WAC 208-512A-005 WAC 208-512A-005. "Loans and extensions of credit" and "contractual commitment to advance funds" — Defined](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_005.md) - [WAC 208-512A-007 WAC 208-512A-007. Other general chapter definitions](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_007.md) - [WAC 208-512A-009 WAC 208-512A-009. Applicability of chapter](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_009.md) - [WAC 208-512A-010 WAC 208-512A-010. General limitation on loans and extensions of credit](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_010.md) - [WAC 208-512A-011 WAC 208-512A-011. Exception to general limitation—Loans and extensions of credit fully secured by readily marketable collateral](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_011.md) - [WAC 208-512A-012 WAC 208-512A-012. Exception to general limitation—Nonconforming loans](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_012.md) - [WAC 208-512A-013 WAC 208-512A-013. Exception to general limitation—Declining capital—Inability to otherwise effectively operate in marketplace—Director discretion](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_013.md) - [WAC 208-512A-014 WAC 208-512A-014. Exception to general limitation — Extenuating facts and circumstances — Standards for division determination—Director of banks' discretion](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_014.md) - [WAC 208-512A-015 WAC 208-512A-015. Renewals and additional advances under a contractual commitment to advance funds—Project funding](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_015.md) - [WAC 208-512A-020 WAC 208-512A-020. Special rule—Discount of commercial or business paper](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_020.md) - [WAC 208-512A-030 WAC 208-512A-030. Special rule—Purchase of bankers' acceptances](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_030.md) - [WAC 208-512A-040 WAC 208-512A-040. Special rule—Readily marketable staples](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_040.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_208_512A_011. Check the current official text before relying on it. Not legal advice.