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#819524 - 09/20/07 06:12 PM Reg. O
LoisLane Offline
Diamond Poster
Joined: Oct 2001
Posts: 1,570
Wisteria Lane..
What a confusing regulation.

Is this correct:

For extension of credit to Executive Officers for "other purpose" loans, amounts are limited to $25,000 or 2.5% of unimpaired capital and unimpaired surplus, whichever is greater, up to $100,000

For directors, principal shareholders and related interests AND Executive Officers, rules concerning prohibitions, board approval, borrowing amounts, and aggregation of credit apply.

For executive officers and directors, overdraft rules apply.

I've never paid much attention to Reg. O because there was no need, and now that I need to understand it, I see it's no easy task.
And where is Superman when I need him?

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Lending Compliance
#820758 - 09/21/07 06:55 PM Re: Reg. O LoisLane
Ted Dreyer Offline
Diamond Poster
Ted Dreyer
Joined: Apr 2001
Posts: 2,245
Don't forget that for Executive Officers all extensions of credit must be "Made subject to the condition in writing that the extension of credit will, at the option of the member bank, become due and payable at any time that the officer is indebted to any other bank or banks in an aggregate amount greater than the amount specified for a category of credit in paragraph (c) of this section [215.5]".

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#820818 - 09/21/07 07:26 PM Re: Reg. O Ted Dreyer
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,643
The Swamp
Lois, it is truly an aggravating reg...HOWEVER, that said...if you have to utilize it on a regular basis, it becomes clearer each time you look at it. be SURE you pay attention to the footnotes!
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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