Can a bank, whose holding company is publically traded, allow its directors to participate in an employee loan program? We have an insider who has recently taken an early retirement but has agreed to remain on the board, but they have an existing loan at the preferred employee rate. We’d like to modify our program to state directors are eligible to participate as well rather than returning this loan to normal term rate.

This is a director of the holding company?

Yes, both the MHC and the Bancorp.

Well, if they are considered an insider of the bank itself, then likely is would be OK under 215.4(a)(2).

But SEC rules might differ - not sure about any implications on that front.