Sample Copy of Due Demand Clause for Reg O

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Question:

Do you have a sample copy of the due demand clause for Reg O? We have FDIC examinations and run a good bank, but they say we should have an executive officer sign the due demand clause.

Answer:

"The borrower agrees that this loan will, at the option of the lender, become immediately due and payable at any time the borrower becomes indebted to any other bank or banks in an aggregate amount greater than the Lender would be permitted to extend to an Insider according to Reg O."

First published on BankersOnline.com 4/2/12