Answer:
Answer by John Burnett: I believe that giving a guaranty on a loan is the equivalent, for insider lending purposes, of being obligated on that loan.
Both Reg. O section 215.9 and Nebraska statutes 8-143.01 have similar reporting requirements if the executive officer's obligations to other banks exceed that which he or she could legally obtain at his/her own bank.
Answer:
Answer by Dan Persfull: I can't speak for Nebraska, but I agree with John on Reg. O.
Look at 215.3(a)(7). If the EO personally guaranteed the debt, there has been an extension of credit for Reg. O purposes:
Any other similar transaction as a result of which a person becomes obligated to pay money (or its equivalent) to a bank, whether the obligation arises directly or indirectly , or because of an endorsement on an obligation or otherwise, or by any means whatsoever.
First published on BankersOnline.com 9/19/05
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