Our CEO wants to know if we can buy a car from a member of our Audit Committee (Serves as Chairman of the Audit Committee) that owns the local Ford Dealership. He has served on our board for many years. The CEO is worried that the newly passed S-O act may now prohibit such transactions.

Your responses greatly appreciated.

You will have to check with your CPA on this issue. Sarbanes-Oxley primarily deals with CPA relationships with banks, etc., but you would do well to seek a legal or CPA opinion as the transaction may or may not be covered, but may send up a red flag.

You may also want to check with your state banking association's general counsel's office.

Verify, as mentioned. But S-O wasn't meant to stop normal commerce. They may need to ensure the transaction is on the up-&-up. But this should be doable.

Thanks, Andy and to all the posters on BOL.

If you haven't had a chance to visit Andy's website, you're
missing a real compliance treat. Where or should I say how did you get all the nice "toys". Ennnnnnvy!!

Thanks again to everyone for your responses.

In reply to:

---

Where or should I say how did you get all the nice "toys".

---

I have a loving wife.

Thanks for the comments on my site. I appreciate that.

Yes, but don't forget---if your bank is public, S-O also has new requirements for reporting stock transactions. Lucky me, I get to do those too

Are there any requirements under Sarbanes-Oxley for banks that are not publicly traded with assets over $500 million.