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#748972 - 06/07/07 06:25 PM Reg O
Rosebud123 Offline
Platinum Poster
Joined: Oct 2003
Posts: 645
Florida
Is waiving the penalty on a CD a reg O no no?

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Lending Compliance
#749132 - 06/07/07 08:30 PM Re: Reg O Rosebud123
MackenzieS Offline
Diamond Poster
MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
In our institution we view this as a treatment that would be "more favorable" than that in which any normal person would be entitled. (So, yes) I don't believe that the reg specifically addresses this but I believe the law does.

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#749259 - 06/07/07 11:06 PM Re: Reg O MackenzieS
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,643
Galveston, TX
It is not a violation of Regulation O since it is a deposit account. Cited for misuse of an insider position to the detriment of the bank is a definite possibility however.
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#749367 - 06/08/07 12:53 PM Re: Reg O rlcarey
Rosebud123 Offline
Platinum Poster
Joined: Oct 2003
Posts: 645
Florida
Thank you. It was a special circumstance. There was a financial problem (hardship) an the executive officer needed the money right away, but I will keep that in mind.

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