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#17371 - 05/10/02 02:36 PM Regulation O - Exec officer Demand Clause
JoAnne Offline
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Joined: Feb 2001
Posts: 795
Michigan
Is the demand clause requirement in Reg O (Statutory Provisions), Federal Reserve Act Section 22(g)(2)(D) required on Real Estate Mortgage transactions where the loan is sold/transferred to an investor immediately after loan closing?
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General Discussion
#17372 - 05/10/02 06:17 PM Re: Regulation O - Exec officer Demand Clause
Andy_Z Offline
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Andy_Z
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Posts: 27,754
On the Net
I don't have a cite, but my understanding is yes. What happens if there is a problem and the loan doesn't sell, or comes back to you.

Perhaps it can be worded so it is specific to only your bank, not the investor.
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#17373 - 05/10/02 07:59 PM Re: Regulation O - Exec officer Demand Clause
John Burnett Offline
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John Burnett
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Cape Cod
It could be in the form of a "rider" that refers to a "note of even date." In which case, it could be held back from the documents on sale of the loan, and retained against the possibility that the chicken comes home to roost.
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