Regulation O

Posted By: jjust

Regulation O - 12/14/05 03:47 AM

Regulation O Sec. 215.5 Additional restrictions on loans to executive officer of member banks.

I would like to know if these additional restrictions also apply to the executive officer's related interests. Can anyone clarify?

Posted By: flaire

Re: Regulation O - 12/14/05 07:02 AM

Would seem to me that it would.
Posted By: Sinatra Fan

Re: Regulation O - 12/14/05 01:52 PM

Look at paragraph (b) of 215.5.
Posted By: John Burnett

Re: Regulation O - 12/14/05 09:42 PM

The paragraph that Steve points to deals with partnerships. The very fact that you see them mentioned suggests that, unless the exec. officer is personally liable on an obligation, you don't consider any indebtedness to a related interest (other than a partnership as noted) in the limits under 215.5.
Posted By: Queen Mum

Re: Regulation O - 01/12/06 09:29 PM

OK, help me with this one. We have a director that has a majority interest in a large company. We are using the extra 10% exception to cover liability limits. The last request was for more than we could loan. However we made the loan and then sold the excess amount as a participation. When making my Reg O report, do I only use in my calculations the net amount since the other bank has purchased the extra?
Posted By: flaire

Re: Regulation O - 01/13/06 12:49 AM

Yes, you report only what your bank owns.