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Capitalizing Interest on Loan Renewal

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I need to know if there is a regulation that deals with capitalized interest on renewed loans.

To the best of my knowledge there is no federal regulation preventing it, but it will not sit well with your Safety & Soundness examiners. You should check your state law to see if they address the issue.

We have a strict loan policy that interest will not be capitalized. Any exception has to be approved by the SLO (as long as he's not the lender) and 2 members of the executive loan committee.

First published on 2/21/05

First published on 02/21/2005

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