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A Call Report and Reg O

Answered by: 
Randy Carey

Question: 
Under Reg O, do I report the total outstanding loan on the call report, or the amount that the insider is limited to through his guaranty? For example: Mr. S has a loan for $500,000, but only guarantees 10% of that loan. Should $500,000 or $50,000 be reported on the call report?
Answer: 

If the guarantee is limited, then that is the credit exposure to that insider, and it should be reported as $50,000. However, in most cases, if the director or officer is guaranteeing a loan, especially for a business, the entity that received the $500,000 loan could be considered a related interest and the whole amount of the loan would be attributed to the insider anyway. You need to analyze the situation further.

First published on BankersOnline.com 9/20/10

First published on 09/20/2010

Filed under: 
Compliance
Filed under compliance as: 
Call Report
IT

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