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#25644 - 07/29/02 04:38 PM Regulation O
RGS Offline
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An executive officer of our bank is considering a guarantee agreement for one of his "related interests". At any time his indebtedness to any bank(s) for "other" purposes exceeds $100,000 he must report these borrowings to the board (215.9). He wants to know if these reporting requirements also include contingent liabilities such as guarantee agreements, co-signers, etc. So, are contingent liabilities by executive officers reportable?

On a related note, from reading 215.9 I feel that borrowings by his related interests do not have to be reported within 10 days (assuming no personal contingent liability). Did I interpret that correctly?
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Lending Compliance
#25645 - 07/29/02 05:01 PM Re: Regulation O
Andy_Z Offline
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I try to be as conservative as possible here and would consider it a debt (especially as I read 215.3(a)(7)).

As to reporting it timely, I believe the Board has a right to know that this contingent liability exists and I would report it as such. In a small community bank this is likely easier than if I was at BofA or some large bank.
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#25646 - 07/29/02 06:26 PM Re: Regulation O
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Thank you! I was thinking it would be the case. How scared would you be if that hadn't been reported?
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#25647 - 07/29/02 08:42 PM Re: Regulation O
Andy_Z Offline
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Its a little gray so not too scared, but I'd likely do it now and document my compliance records so that if it was seen and questioned later, I could point it out.
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#25648 - 07/29/02 09:02 PM Re: Regulation O
RGS Offline
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RGS
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Home of the 8 time NCAA Champ ...
Thanks again. At least I don't have to hide from the powers that be.
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