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Latest Compliance - Lending Limit Topics

Reg O - Loans to Immediate Family

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?

Reg O - Readily Marketable Collateral

05/14/2007

Reg O - Individual Lending Limit, what is the definition of the term "readily marketable collateral" in relation to an insider's lending limit (the additional 10% of unimpaired capital and unimpaired surplus)? Is real estate with a valid appraisal considered "readily marketable collateral"?

Reg O - Single Insider Aggregate Lending Limit

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?

Loan to spouse considered loan to EO?

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?

Prior Board Approval under Reg O

01/06/2003

Our bank falls under the $500,000 prior board approval requirement for extensions of credit to an insider. If I understand Regulation O correctly, exceptions under general prohibitions only apply to the aggregate lending limit when the loan is secured by a CD. If a loan is made to an insider for more than $500,000 and is secured by a CD in our bank, is prior board approval required?

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OCC Lending Limits

The Office of the Comptroller of the Currency has published an interim final rule to consolidate the lending limit rules of the OCC and the Office of Thrift Supervision.

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Handling Reg E claims on older transactions.

06/23/2019

If an EFT claim is made long after the statement is sent showing the transaction, the rules of investigation don't apply. So why do we investigate any of these claims?

Open DBA Under LLC- Certificate of Assumed Name

06/23/2019

We have a LLC wanting to open a DBA under the LLC. The TIN number and the Article of Organization only has the LLC's name. 1. Does the LLC need to get an Certificate of Assumed Name filed with the Secretary of State? 2. Will they have to file the DBA at the county also? (We know at this time the DBA is filed under someone else's name at the county currently.)

Opening Online Acct. & Funding w/ACH Debits

06/16/2019

Our digital channel team would greatly appreciate your comments and confirmation of our understanding in order to comply with online account opening and funding for new clients with ACH Debits and the ability to hold funds. The questions below relate to an online account opening process for new clients. After completing the online application, approved clients have the option to fund their new account with funds from an external source – an account they hold at another bank - via an ACH Debit and we are the ODFI. 1. Can we place a hold on the initial funds received as an ACH Debit? Our understanding is “yes” because: · an ACH debit does not fall under the definition of an electronic payment under Reg. CC (II.Section229.2 Definitions (p)) Electronic Payment, which imposes no availability requirement, and we are free to hold the funds for a period that we determine. Restricting access to those funds would be reasonable to allow for the debit entry to reach the RDFI and be returned to our bank, the ODFI, if there is a problem. · We are not receiving an ACH credit as we are the ODFI of the ACH debit, and NACHA has no say in when we credit the new account, so there would be no violation of NACHA rules.</ul> 2. Would we be required to provide a hold notice to our online account applicant of the delay in availability or a notice at the time the external funding option is selected that the funds may not be credited to the account for “2-3 days”, or available for “2-3 days” suffice? Our understanding is: · a notice that indicates funds may not be available for x days at the time the customer selects the external funding option and submits their authorization should suffice as it becomes part of our agreement when the customer selects that funding option. · Reg. CC does not impose an availability requirement for ACH Debit transactions, so no Reg. CC hold notice is required. 3. Would our Reg. CC Policy – Funds Availability Notice, need to be updated to refer to availability from ACH Debit transactions? · Model language is silent in this regard, any recommendations or suggestions are welcome.

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