11/10/2008
Is it a violation if the board adopts a resolution under Reg O and names executive officers, but excludes vice presidents who work and submit policies to the board for approval? Senior management reviews the policies before they are submitted to the board. What constitutes participation in the major policy making function under Reg O?
05/19/2008
Can the bank set preapproved lending guidance on insiders? We would like to set an aggregate lending limit to each bank insider that would not need board approval if it met certain underwriting guidelines such as maximum DTI, minimum DSC, etc. I believe we would have these guidance levels approved yearly by the board. I am trying to make sure that we are not in violation of anything by doing this.
03/24/2008
Is there specific language that should be referenced in the note when extending credit to an insider and if so, where can I find examples? What are the qualifications of an insider?
02/11/2008
Our Executive Officers sign on accounts for churches and other types of accounts, but they are not owners of the accounts. Is this a Reg O violation to overdraw those accounts and do they have to be charged an overdraft fee?
06/11/2007
I have two questions in regards to Reg O Insider Loans. Are executive officers required to report extensions of credit from Credit Unions to their member bank? Second, are extensions of credit for mortgage loans and loans to finance education subject to the condition in writing that the extension of credit may become payable at any time the executive officer is indebted to all other banks greater than the member banks aggregated lending limit?
05/28/2007
Does Reg O apply to loans to immediate family members? For example, the spouse of an individual, the individual's minor children and any of the individual's children. If so, where in regulation does it state this?
08/14/2006
In reference to the question below, would you also be required to report a loan to a mortgage company that is not affiliated with any bank? Ex Officer Reporting Loans from other Banks by Randy Carey, BOL GuruQuestion: Regarding Regulation O Section 215.9, relating to Executive Officer reporting loans from other "banks." Does this definition of Banks mean only members of the Federal Reserve? We are regulated by OCC and I looked in their Insider Activities handbook, but it only states "215.9 - Reports by Executive Officers "Executive officers" must provide a written report to the board of directors within 10 days of becoming indebted to any bank if the aggregate amount of the indebtedness exceeds $100,000 (or the greater of 2.5 percent of the bank's capital and surplus or $25,000). The report shall state the lender's name, the date and the amount, security, and purpose for each extension of credit."Answer: The term "bank" alone is not defined within the regulation. I would interpret it to be defined very broadly and would include any type of bank, whether a member bank or not. First published on BankersOnline.com 1/30/06
05/01/2006
I need you to settle a dispute regarding Reg O. When doing the annual review of Reg O, and totaling the dollar amount of extensions of credit to determine an executive officer's "single insider aggregate lending limit," do you use the original amount of the loans or do you use the balance owing on the loans? (Excluding lines of credit on which you do use the original amount.) This is in regards to the $100,000 restrictive lending limits for executive officers. I say we should use the original amount of the loans and the CCO says we should use the balance owing as of the date of the review. Could you please clarify this for me?
01/09/2006
An executive officer's spouse obtains a loan to purchase property over $100k. The property is deeded to the spouse only, but the executive officer is required to sign the mortgage due to state real estate laws. Is the credit considered an extension of credit to the executive officer, since his signature was required on the mortgage in order to pledge the property to the note?
01/01/2006