I have received a question from a Senior Manager about our ability to purchase a few loans from a company belonging to a board member (John Smith Profit Sharing Trust). These loans were financed by the Trust in 2002 and 2007 and the board member is now inquiring about us purchasing them.

We have purchased loans in the past but that was many years ago.

Would all the standard disclosures have been required when financing thru the trust at those times?

It doesn't seem like anything we want to get into but one must do the research when one receives an inquiry from Senior Management on behalf of a board member. Thanks in advance.

Then walk away. If you would not consider this transaction for anyone else then you are heading for problems by giving the director preferential treatment.

Thanks. Running as we speak.