| (a) A commitment to lend, when combined with all other
loans or extensions of credit to a borrower, must be within the bank's
legal lending limit at the time the commitment becomes binding, and
advances may be made under a binding commitment to lend even if the
advances would exceed the bank's lending limit on the date of funding.
In determining whether a commitment to lend is within a bank's lending
limit when made, the bank may deduct from the amount of the commitment
the amount of each legally binding loan participation agreement executed
before or concurrently with the bank's commitment that would be excluded
from a loan or extension of credit under §12.3(b)(3) of this
title (relating to Loans and Extensions of Credit).
(b) Pursuant to the Finance Code, §34.201(b)(2),
a state bank may renew a commitment to lend and complete funding under
that commitment to one borrower in circumstances where the renewed
commitment would exceed the bank's current, general lending limit
if:
(1) the completion of funding is consistent with safe
and sound banking practices and is made to protect the position of
the bank;
(2) the completion of funding will enable the borrower
to complete the project for which the original, expiring commitment
to lend was made; and
(3) the amount of the additional funding does not exceed
the unfunded portion of the bank's original, expiring commitment to
lend.
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