Question:
I have a question in regards to Reg O Insider loans. Our financial institution originates loans and sells them to the secondary market. The secondary market lender approves the loans, our financial institution funds the loans and carries them on our book for about a week. If we process a secondary market loan for a Reg O officer and sell it to the secondary market is this considered a Reg O loan? Does the following part of the regulation apply? Any extension of credit to an executive officers shall be: Made subject to the condition in writing that the extension of credit will, at the option of the member bank, become due and payable at any time that the officer is indebted to any other bank or banks in an aggregate amount greater than the amount specified for a category of credit in paragraph (c) of this section.