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Reg Covering Interest Only Open Ended LOC

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Question: 
Another bank employee asked me if it was true that there is a regulation stating that an interest only open ended line of credit can’t be for more than fifteen years before it must be re-written into a term note. I have never heard that and can't seem to find anything to that affect. Have you ever heard that, it is true and if so, what is the regulation?
Answer: 

If true, it would be dictated by state law.

First published on BankersOnline.com 7/27/09

First published on 07/27/2009

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