Answer:
The Reg O requirement for a loan to include a demand clause only applies to executive officers. As long as the board member is not also an executive officer of the bank, the loan does not require a demand clause. For what it's worth, the Reg O demand requirement doesn't have to be a blanket demand requirement. It only has to allow the bank to demand the loan should the executive become indebted to other banks in an amount greater than the bank itself could legally lend to the executive.
First published on BankersOnline.com 1/12/09