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#1730913 - 08/15/12 11:53 AM Purchases of Repossessed Assets by Insiders
Atreides Offline
Junior Member
Joined: Nov 2005
Posts: 46
Our bank currently has a policy prohibiting the purchase of other real estate or repossessed assets by directors, officers, or other employees. Our management is considering changing this policy so that these purchases can be made on terms equal to those available to third parties. I cannot find a specific regulation that would prohibit such purchases. Does anyone know of anything that would prohibit this?


Thanks

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General Discussion
#1730955 - 08/15/12 12:49 PM Re: Purchases of Repossessed Assets by Insiders Atreides
Ski Offline
Platinum Poster
Joined: May 2003
Posts: 639
South Louisiana
Check Reg. O - I made the following addition to my Reg. O (from Dodd-Frank Act) policy earlier this year:

SALES AND PURCHASES INVOLVING INSIDERS: The Bank will comply with the requirements effective July 21, 2011, which generally prohibit purchases and sales of assets from any executive officer, director, or principal shareholder or any related interest of such person unless the transaction is on market terms and, if the transaction represents more than 10 percent of the capital stock and surplus of the insured depository institution, the transaction has been approved in advance by a majority of the members of the board of directors of the insured depository institution who do not have an interest in the transaction.

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#1730983 - 08/15/12 01:20 PM Re: Purchases of Repossessed Assets by Insiders Atreides
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Ski - those transactions are going in the other direction. That is talking about the bank buying assets from insiders, not selling to them.

The only time we use to allow it is if the asset was at public auction.
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#1730988 - 08/15/12 01:24 PM Re: Purchases of Repossessed Assets by Insiders Atreides
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
We never allowed it if the sale was from a trust administered by our trust department or if there could be a deficiency judgment against the debtor involved.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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#1732871 - 08/20/12 06:35 PM Re: Purchases of Repossessed Assets by Insiders Atreides
Atreides Offline
Junior Member
Joined: Nov 2005
Posts: 46
Thank you all!!

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