Skip to content

Loan to EO for Purchase of Investment Prop-Reg O

Answered by: 

Question: 
Is a Loan to an Executive Officer for the purchase of an Investment residential property for his daughter a Reg. O violation?
Answer: 

Well, there is no one correct answer to the question. It would be a maybe.

Since it will not be a residence of the executive officer, it is not eligible for an exception under 215.5(c)(2).

Therefore, the loan will fall under the category of loans described in 215.5(c)(4) and be limited to a maximum dollar amount of $100,000.

So, it really depends on how much of a loan to which you are referring and whether the executive officer has any other loans currently in the 215.5(c)(4) category.

First published on 01/12/2015

Filed under: 
Filed under compliance as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics