When it is necessary or desirable to perfect security interests in aircraft, engines, propellers or spare parts in the United States a lender must consider a multitude of issues. For many lenders and their counsel the process of recording instruments with the Federal Aviation Administration (the "FAA") and registering aircraft in the United States needlessly remains a mystery. The following is an explanation of the most critical issues a lender must address to ensure that documents submitted to the FAA will be accepted for recording.
If a director has a line of credit in his business with a partner of $400,000 and other loans totalling 100,000 (not his mortgage) would he be in violation if he wanted another loan? The credit line is not fully used but it is up to $350,000 used.
What should I do if a loan was approved through the board of directors, and the bank president and senior lender change the approval without going back to the board? The policy says they cannot combine their loan authorities.
Can the bank set preapproved lending guidance on insiders? We would like to set an aggregate lending limit to each bank insider that would not need board approval if it met certain underwriting guidelines such as maximum DTI, minimum DSC, etc. I believe we would have these guidance levels approved yearly by the board. I am trying to make sure that we are not in violation of anything by doing this.
Please clarify if the following transaction would be considered a refinance or a purchase. We have a newly elected Director on our board. His home loan was approved before he became a director. After he was appointed to the board, his home loan was modified. Should this have come before the board to obtain approval?
Even though Part 365 of the Real Estate Lending Standards states that a 1-4 family owner occupied LTV percentage is 85%, is it acceptable to go to 90% if our loan policy discloses such?
I have two questions in regards to Reg O Insider Loans. Are executive officers required to report extensions of credit from Credit Unions to their member bank? Second, are extensions of credit for mortgage loans and loans to finance education subject to the condition in writing that the extension of credit may become payable at any time the executive officer is indebted to all other banks greater than the member banks aggregated lending limit?
What are the bank policies that need board approval and how frequently?
In reference to the question below, would you also be required to report a loan to a mortgage company that is not affiliated with any bank? Ex Officer Reporting Loans from other Banks by Randy Carey, BOL GuruQuestion: Regarding Regulation O Section 215.9, relating to Executive Officer reporting loans from other "banks." Does this definition of Banks mean only members of the Federal Reserve? We are regulated by OCC and I looked in their Insider Activities handbook, but it only states "215.9 - Reports by Executive Officers "Executive officers" must provide a written report to the board of directors within 10 days of becoming indebted to any bank if the aggregate amount of the indebtedness exceeds $100,000 (or the greater of 2.5 percent of the bank's capital and surplus or $25,000). The report shall state the lender's name, the date and the amount, security, and purpose for each extension of credit."Answer: The term "bank" alone is not defined within the regulation. I would interpret it to be defined very broadly and would include any type of bank, whether a member bank or not. First published on BankersOnline.com 1/30/06
Can you offer a special checking account to a select group of people, ie: they all work at the same place, without discriminating against other customers if they are not employed by the same company?