Does Regulation F affect correspondent lending?

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Question:

Does the Regulation F limitation on interbank liabilities apply to correspondent lending? In other words, if two banks are party to a correspondent lending sale/purchase agreement, does the purchasing bank need to follow Reg F?

Answer:

This is a complex question that could never be answered with the little information provided. You need to be talking to your legal counsel, maybe your external accountants might be able to help, or call your EIC for guidance.