De Vonne, I have seen this question come up before. If the director's outstanding balances including the floor plan exceed Reg O limits - the floor plan of the entire amount would be grandfathered. Future extensions of credit would be subject to the limits of the individuals aggregate when the dealer was elected to the board. I know of no requirements that would force a newly director to divest themselves of their loans. If I'm not correct on this issue, someone will pick up on it.
This is my opinion only - no guarantees
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Allan D. Virr, CRCM