Executive Officer's Loan - Demand Clause Required?

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Question:

Is a demand clause needed for an executive officer's loan taken out prior to that employee becoming an executive officer?

Answer:

No, however any renewal or rewrite would require the addition. Additionally, the dollar limitation on loans to a new executive officer also do not apply to loans at the time of appointment unless current loans are renewed or rewritten.

First published on BankersOnline.com 2/18/08