We have a board member who sits on the board of a condominium association, but does not receive any compensation to do so by the association. Would making a loan to the condominium association be considered a conflict of interest/Reg O violation? We are thinking not since they are serving on the condo association as a resident (condo owner) in the complex.
Are state-chartered, non-FRB member banks subject to the reporting requirements of Reg O as relates to identifying related interests and the required annual report to the board of the outstanding amount of any credit that is secured by shares of the institution if the shares of the institution are not publicly traded?
On commercial loan requests we will sometimes deviate from the interest rates listed on our rate sheet (those rates offered to the general public) for reason of matching the rate being offered by a competing lender.
We will report this as an interest rate pricing exception for reason of competitive disadvantage. My question is, does this same interest rate pricing exception constitute a Reg O violation when granted to a bank director?
In the past we sent a letter annually to our mortgage customers regarding their requirement to maintain hazard insurance on the property they have pledged as collateral. We wanted to check to see if this is still something we need to be sending out each year or if this is something we can do away with? We do now have the Mortgage Blanket policy which covers all collateral including commercial property for hazard insurance. We understand this annual letter is not a Federal regulation, but want to verify it is not required by IN?
How much can be loaned to an executive officer?
One of our bank directors has an adult relative who is starting a new business venture. This relative wants to get financing from the bank, and part of the collateral securing the loan would be bank stock pledged by the director. The director has no beneficial ownership in this new business venture and simply wants to help the relative get the business up and running. What, if any, Regulation O implications are involved with this scenario?
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?
For Reg. O compliance, is a Demand Clause required to be included in the Note for overdraft loans to executive officers?
We have an executive officer that currently has a 1st lien mortgage and a home equity on the same property. He also wants to purchase a lot to build a new house, this lot loan would become financed into one construction perm loan. He will eventually move into this home once the other is sold. Is this possible under Reg-O or would it be best to have this individual finance the construction of his new home at another institution? I am worried about the rule of only having one 1st lien at a time, even though this will be temporary.
Regulation O-we have an executive officer who has a first lien mortgage on his primary residence. He thought this residence was sold, and purchased another property which he mortgaged with us. The first property sale fell through so currently both properties are on the bank's books. I assume we are in violation but would like some verification.