I don't usually have to deal with Reg O, so please bear with me on this. For "other purpose" loans is the limit $100,000 or is it 15% of unimpaired capital and unimpaired surplus? The loan will be secured by another bank's stock.

$100,000 on exec officers for other than child's education or purchase of primary home.

Thanks !

I answered the first time quickly and wanted to come back and give the actual reference...The $100,000 is a general rule, but also depends on your size.."most" banks probably fit in the $100,000 restriction rather than the $25,000 or in between...but one should never assume!!! Also, I said 'purchase' andthis is what made me come back in particular because it also includes refi, improvement and such...here is the exact area that gives you the main specifics...sorry for such a hasty reply the first go round.

c) A member bank is authorized to extend credit to any executive officer of the bank:
(1) In any amount to finance the education of the executive officer's children;
(2) In any amount to finance or refinance the purchase, construction, maintenance, or improvement of a residence of the executive officer, provided:
(i) The extension of credit is secured by a first lien on the residence and the residence is owned (or expected to be owned after the extension of credit) by the executive officer; and
(ii) In the case of a refinancing, that only the amount thereof used to repay the original extension of credit, together with the closing costs of the refinancing, and any additional amount thereof used for any of the purposes enumerated in this paragraph (c)(2), are included within this category of credit;
(3) In any amount, if the extension of credit is secured in a manner described in Sec. 215.4(d)(3)(i)(A) through (d)(3)(i)(C) of this part; and
(4) For any other purpose not specified in paragraphs (c)(1) through (c)(3) of this section, if the aggregate amount of extensions of credit to that executive officer under this paragraph does not exceed at any one time the higher of 2.5 per cent of the bank's unimpaired capital and unimpaired surplus or $25,000, but in no event more than $100,000.