An Update from Community Bankers of West Virginia

April 9, 2020

To our members:

Yesterday, representatives of the Community Bankers of West Virginia met with the Commissioner of Banking, Dawn Holstein, and her staff to discuss and obtain guidance on issues of concern to the banking industry as a result of the COVID-19 pandemic. One issue brought to the attention of the Commissioner was a concern as to whether the loans made under the Paycheck Protection Program (PPP) would qualify for an exemption for purposes of calculating a bank legal lending limit under West Virginia law. This afternoon, the Division of Financial Institutions confirmed that PPP loans qualify for the exception to the legal lending limit and should not be included when calculating the legal lending limit under 31A-4-26(a)(4) (E).

We thank Commissioner Holstein and her team for meeting with us and for their rapid response. The Advisory Notice can be found here.

Sandy Murphy
Bowles Rice LLP
Banking & Financial Services
(304) 347-1131

Donna Tanner
Community Bankers of West Virginia
Executive Director
(304) 254-9822