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#273853 - 11/10/04 08:19 PM Reg O
Anonymous
Unregistered

Our Chairman of the Board was asked to be on the Board of a comnpany who does business with us (loan and deposit account business), is there going to be any Reg O implications attached to this?

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Operations Compliance
#273854 - 11/11/04 01:44 PM Re: Reg O
redsfan Offline
Power Poster
redsfan
Joined: Dec 2000
Posts: 3,455
The Pennant Race
If, by going on the board, the Chairman gains control of the company, then the company would become a related interest of the Chairman for purposes of Regulation O.

Loans to the Company would be subject to the rates and terms provisions of 215.4, as well as 215.4's prior approval requirements and aggregate loan limits. Presuming for a moment that this company is a corporation and not a partnership, if the company is a related interest loans to the company would not be considered for the limits in 215.5. Not would the financial statement or call provisions of 215.5 apply.

I would suggest you review the definitions of related interest and controlin 215.2. To find those definitions, click here..
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