This excerpt taken from the LEGC DEF 14A filed Mar 16, 2009.
TRANSACTIONS WITH RELATED PARTIES
Federal law and regulations generally require that all loans or extensions of credit to directors and executive officers must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with the general public and must not involve more than the normal risk of repayment or present other unfavorable features. However, regulations also permit directors and executive officers to receive the same terms through benefit or compensation plans that are widely available to other employees, as long as the director or executive officer is not given preferential treatment compared to the other participating employees. Pursuant to such a program, loans have been extended to directors and executive officers. Such loans are made in the ordinary course of business, on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with persons not related to the Company or the Bank. These loans do not involve more than the normal risk of repayment or present other unfavorable features.
No director, executive officer or beneficial owner of 5% of the Companys outstanding Common Stock (or any members of their immediate families) engaged in any transaction (other than a loan described above) with the Company or the Bank during 2008, or proposes to engage in any transaction with the Company or the Bank, in which the amount involved exceeds $120,000.
The Audit Committee charter requires that the Audit Committee approve all related party transactions other than routine deposit relationships and loans that otherwise comply with federal regulations.