Reg O - Directors (not Executive officers). Are primary residences subject to Reg O reporting for directors? Are there specifics to when they are or not be be reported such as on the mortgage system, loan side, 2nd lien or purpose like Executive officers?
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.
Does Regulation O cover preferential treatment in board and executive compensation? Also, would preferential treatment surrounding vendor service agreements with the related interests of insiders be covered in Reg O?
We have two directors of the bank who have an LLC business together. This LLC is selling some property to a non-affiliate and the bank wants to finance the transaction. Because the funds of this transaction are going to be paid to the LLC which is an affiliate of the bank, do the Lending limits apply under Reg W, even though the loan will be to a non-affiliate?
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.
One of our directors is a shareholder for a company that wants to acquire a loan from us. The director has a 15.4% stock ownership in the company wanting the loan. The director will not be a guarantor on the loan. Do we have to have board approval if we decide to do the loan for the company?
Our regulators have requested that our bank more clearly define and document its credit policies. What should be included?
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?