07/23/2012
I have a Reg O Publication that states executive officers may have to file a report to the board if they borrow money from another bank or banks and 12 CFR 215.9 is referenced. The regulation is not clear on this reporting requirement for executive officers. Can you clarify this requirement.
06/18/2012
Are board of directors and executive officers exempt from having Overdraft safeguard? What if they are listed in a non-owner relationship in a deposit account?
05/21/2012
If a director or executive officer is a custodian or power of attorney on an account of their child or wife, does that account need to be monitored under the Reg O overdrafts limitations applicable to executive officers and directors?
11/14/2011
Reg E vs Reg O? The President of our bank is on a joint account with his teenage son. The account is marked as a Reg O account in the system. The teenage son has a debit card. He did not opt in for Reg. E. The son used his debit card for fuel and created an overdraft in the account. As a Reg O account, we would have to charge an OD fee. Since the son did not opt in for Reg E, we cannot charge a fee. Which one should we violate? How do we prevent this from happening again?
09/12/2011
During our annual internal audit of Reg. O, we discovered that overdraft fees are being waived for the board of directors. The overdrafts were under $1,000 and the account was not consecutively overdrawn for 5 days or more. At first, we felt that we could defend this by proving that our BOD is in similar circumstances as other depositors that we waive overdraft fees for. Management has decided that proving these "similar circumstances" may not be a risk we want to take with examiners. How should we handle this violation? Should we have the board members that are in violation pay the fees that were waived? Or should we implement training and awareness to ensure this violation does not happen again?
03/28/2011
Under Reg O for executive officers, does the term "residence" refer only to the executive officer's personal residence; or can they borrow above the threshold for any residence they own (example rental property being a 1-4 family residence). If they are permitted to borrow for the purpose of rental property (1-4 family); is the bank allowed to loan for their personal residence and a second loan for rental property, or another example two separate loans each secured by separate residential rental properties (1-4 family)?
01/03/2011
We regularly monitor personal accounts of our directors and EOs. Is a related interest account defined as any account on which an EO or director has signatory rights? If a director is the primary owner of a business account, is it necessary for us to monitor the account for Reg O overdrafts? If a director is an authorized signer of a business account, is it necessary for us to monitor the account for Reg O overdrafts? If a director is a minority of an account, is it necessary for us to monitor the account for Reg O overdrafts? The Reg states a member bank is to charge the same fee any other customer of the bank would pay in similar circumstances. At our institution, if a customer has an overdraft and makes a deposit/transfer the same day, we generally waive the fee as a courtesy due to the balances they carry with us. Is this a violation of Reg O to treat EO and directors the same as we would the above client?
02/22/2010
Does Regulation O cover preferential treatment in board and executive compensation? Also, would preferential treatment surrounding vendor service agreements with the related interests of insiders be covered in Reg O?
11/30/2009
Is a loan to a business owned by a director's wife subject to Reg O? The director provides no personal guarantee.
06/22/2009
We regularly make loans to executive officers for their homes, in line with the Regulation O guidelines. Many of these loans are sold to FHLMC after origination. After these loans are sold and we are simply accepting payments (they are still on our system, but we pass the payments on and they are shown as fully sold on our financial records), would this loan be considered an extension of credit that would count against the $500,000 limit for prior board approval and as the only home loan available for the Section 215.5(c)(2) treatment in regards to additional restrictions on loans to executive officers?