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#2228070 - 12/30/19 05:26 PM Reg O - Board of Director
CSB98 Offline
Diamond Poster
Joined: Dec 2003
Posts: 1,337
Wisconsin
We have a director who is a guarantor on loans with the bank that he does not have any ownership interest in. Would these still be aggregated with other loans for lending limits?

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Lending Compliance
#2228071 - 12/30/19 05:29 PM Re: Reg O - Board of Director CSB98
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Yes, as he is directly liable on the debts.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2228076 - 12/30/19 06:34 PM Re: Reg O - Board of Director CSB98
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
If you need a citation:

Sec. 215.3 Extension of credit.

(a) An extension of credit is a making or renewal of any loan, a granting of a line of credit, or an extending of credit in any manner whatsoever, and includes:

(7) Any other similar transaction as a result of which a person becomes obligated to pay money (or its equivalent) to a bank, whether the obligation arises directly or indirectly, or because of an endorsement on an obligation or otherwise, or by any means whatsoever.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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