Skip to content
BOL Conferences Top Gun 23
Thread Options
#1737936 - 09/05/12 01:47 PM Reg O employee loans
Georgia Golfer Offline
Gold Star
Georgia Golfer
Joined: Jun 2003
Posts: 415
1st Tee
Is it a violation of Reg O to include terms in a loan that raise the rate from say 5% to 11% if the borrower terminates employment?

Return to Top
Lending Compliance
#1737985 - 09/05/12 03:03 PM Re: Reg O employee loans Georgia Golfer
BankRegGuy Offline
Member
Joined: Sep 2011
Posts: 74
Assuming you are already in compliance with reg O, based on the generally available employee plan exception in 215.4(a)(2)(i), you should be ok. Make sure you disclose it correctly. Things like RRLOCs have special ways to disclose employee preferential rates.

Return to Top

Moderator:  Andy_Z