Would we treat this any different as we would a loan secured by property? Can I be pointed to the cite that would direct me?

Are you referring to stock ownership of the bank itself, or holding company stock? Example a stock in “First Bank N.A.” Or “First Bankshares”?

There are regulations about taking bank stock as collateral

Original poster here. It would be securing a LOC with our holding company stock. Can you please direct me to the regs (I am aware of Reg. O) so I may educate myself further? I truly appreciate it!

The following is a link to an attorney website which explains the law (federal and Florida). Regulatory cites are there.

https://www.jimersonfirm.com/blog/2019/04/bank-stock-collateral-loan-securitization/

You will also need a Reg O expert to chime in.

NOTE: Holding company stock is NOT bank capital stock. It's a different company.

OP here. The only reference Reg. O has regarding stock-secured loans is the reporting requirements. Reg. U was reviewed, but again, the purpose is ambiguous. This is my first experience with stock-secured loans, so I am looking for guidance. For instance, I only found a maximum limit of 50% of value of stock IF the purpose of the loan is to purchase other stock. SO, does that mean the face value of stock can be used if the loan is for other purposes?

Help!

Are you a State bank, if so you need to check your State law. You also are entering into a 23A transaction and need to be cognizant of those requirements.

For example: https://www.fdic.gov/regulations/laws/rules/4000-8880.html

OP here. It appears that 23A would not apply here. The loan to be secured by stock is NOT to purchase other stock. This is why I am trying to cover all bases. The stock being used is NOT margin stock, as the Bank is not publicly traded. Am I following this correctly?

This is a little concerning: " Reg. U was reviewed, but again, the purpose is ambiguous."

BSA regulations require a purpose for loans >$10K. Considering this loan is covered by Reg O, you should consider a well-documented purpose.