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#244680 - 09/15/04 03:11 PM REG O
Anonymous
Unregistered

I know that Reg O restricts credit to insiders but does it restrict doing business with these persons?

Thanks

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Operations Compliance
#244681 - 09/15/04 05:42 PM Re: REG O
MagicCity Offline

Power Poster
MagicCity
Joined: Apr 2003
Posts: 3,003
Fort Lauderdale, Florida
Quote:

Regulation O -- governs extensions of credit to insiders, which includes directors, executive officers, and principal shareholders of a bank and its affiliates. It includes special restrictions on loans to executive officers.




See BOL's Alphabet Soup on the home page for more detail.

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#244682 - 09/16/04 04:20 PM Re: REG O
EdOils Offline
Platinum Poster
EdOils
Joined: Jan 2004
Posts: 555
Louisiana
Reg O doesn't, but 23B (Reg W) might, if that insider is also an affiliate.

A word of caution. If you will be doing business with an insider or any of his companies, make sure that they are on equal terms (or favorable to the bank) as what you can get from a non-insider. For example, if you are renting an office from the insider, and market rents are $500 for a comparable space, the bank should be paying $500 or less. Whatever you do, document, document, document. The examiners hate to see the bank being taken advantage of by an insider.
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