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#2225818 - 11/18/19 09:41 PM Reg. W, Section 16
joeball Offline
100 Club
Joined: May 2004
Posts: 170
Bluegrass State
Section 16 of Regulation W states that a member bank must treat any of its transactions with any person as a transaction with an affiliate to the extent that the proceeds of the transaction are used for the benefit of, or transferred to, an affiliate.

We have a borrower who is purchasing a piece of farmland. The seller is an LLC who, by ownership, is an affiliate of the bank.

Would this loan have to meet the collateral requirements of Regulation W and is this the types of loans section 16 is referring to?

Thank you
I'm no supergenius, or are I? Homer Simpson.

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Lending Compliance
#2225841 - 11/19/19 03:12 PM Re: Reg. W, Section 16 joeball
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 80,336
Galveston, TX
You sure the LLC is an affiliate under Regulation W? If yes - then yes.
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