03/30/2009
Is the chairman of the holding company of the bank subject to the more restrictive lending requirements of executive officers of the bank under Reg O?
07/28/2008
The recent Reg O changes removed the requirement for executive officers to report extensions of credit to their bank within ten days. The requirements of 215.5(d)(4) to have a due and payable clause for extensions of credit to an executive officer remained because it is a part of the Act. 215.5 (c) limits the ability to extend credit to an executive officer. 215.5 (c)(4) is the all other purposes, but not more than an aggregate of $100,000. Does this aggregate apply to all extensions of credit, including extensions at another bank or does it only apply to the executive officer's bank? If she or he has more than $100,000 in extensions of credit not covered by 215.5 (c)(1-3) with other banks, but none with their own bank, can the executive officer's bank still lend them up to the $100,000 of credit not covered by 215.5(c)(1-3)?
11/26/2007
Please help me define "defined marketable collateral" for the purpose of Reg O as it relates to loans to Executive Officers. Namely, can it be real estate with an appropriate appraisal or is it implying "marketable securities"?
05/28/2007
Does Reg O apply to loans to immediate family members? For example, the spouse of an individual, the individual's minor children and any of the individual's children. If so, where in regulation does it state this?
04/23/2007
Regarding Section 215.9 of Reg O, is it a requirement to report extensions of credit where the EO is indirectly liable, and if so, can the names of the direct borrowers be kept private?
01/22/2007
What is the law/reg regarding overdrafts on bank employee checking accounts? From time to time we won't charge a good customer (long time customers who rarely have overdrafts) an overdraft fee. Since we do this for some customers can we do the same for a bank employee?
10/30/2006
An Executive Officer of the bank is granted a Board-approved multiple-advance revolving line of credit on 01-01-06 for a one-year term in the amount of $25,000. On 07-01-06 the personal financial statement of the executive officer dated 07-01-05 is no longer considered current by bank underwriting standards. Are additional loan advances after 07-01-06 on the executive officer’s approved multiple-advance revolving line of credit that are within the $25,000 limit considered a violation of Regulation O 12 CFR 215.5 (d)(3) which indicates that any extension of credit by a member bank to any of its executive officers shall be preceded by the submission of a detailed current financial statement of the executive officer?
05/01/2006
I need you to settle a dispute regarding Reg O. When doing the annual review of Reg O, and totaling the dollar amount of extensions of credit to determine an executive officer's "single insider aggregate lending limit," do you use the original amount of the loans or do you use the balance owing on the loans? (Excluding lines of credit on which you do use the original amount.) This is in regards to the $100,000 restrictive lending limits for executive officers. I say we should use the original amount of the loans and the CCO says we should use the balance owing as of the date of the review. Could you please clarify this for me?
01/30/2006
Regarding Regulation O Section 215.9, relating to Executive Officer reporting loans from other "Banks." Does this definition of Banks mean only members of the Federal Reserve? We are regulated by OCC and I looked in their Insider Activities handbook, but it only states 215.9 Reports by Executive Officers "Executive officers must provide a written report to the board of directors within 10 days of becoming indebted to any bank if the aggregate amount of the indebtedness exceeds $100,000 (or the greater of 2.5 percent of the bank's capital and surplus or $25,000). The report shall state the lender's name, the date and the amount, security, and purpose for each extension of credit."
01/09/2006
An executive officer's spouse obtains a loan to purchase property over $100k. The property is deeded to the spouse only, but the executive officer is required to sign the mortgage due to state real estate laws. Is the credit considered an extension of credit to the executive officer, since his signature was required on the mortgage in order to pledge the property to the note?