- This topic has 1 reply, 2 voices, and was last updated 10 years ago by
.
-
Posts
-
If an executive officer also has a business, are his/her business loans included in the $100,000 “other loans” restriction? I can see certain commentary that insinuates it is but not getting any clear substantiation.
It depends on whether the loan is being made to: an EO, a partnership where the EO has a majority interest or a related interest.
Regulation O, 12 CFR 215.5, sets forth additional limits on extensions of credit to Executive Officers, but not their related interests. These restrictions apply to a partnership where an EO holds a majority interest as stated in 215.5(b). Also, if the EO is guaranteeing a related interest loan that would be subject to the $100,000 due to 215.3(7).
You’ll have a hard time finding anything that specifically spells this out other than the regulation and statute, but here is a link to the OCC Insider Handbook that has a statement agreeing with my opinion: https://www.occ.gov/publications/publications-by-type/comptrollers-handbook/_pdf/m-ia.pdf. See page 11.
- You must be logged in to reply to this topic.