(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.

Source Note: The provisions of this §12.4 adopted to be effective March 1, 1996, 21 TexReg 1383