Today's Board Essentials Module 2: Reg O: Insider Lending & Self-Dealing
Regulation O imposes many restrictions on loans made to a bank’s directors and their related interests.
Since preferential treatment of directors is prohibited, a loan to a director (or the director’s related interests) must be based on the same terms and underwriting criteria as loans to other customers. Moreover, a loan to a director must satisfy even higher standards. These loans must be specifically approved in advance by a majority of the entire board, and the interested director must abstain. In addition, the aggregate amount of loans to a director and their related interests is strictly limited. Regulators are quick to impose large civil monetary penalties for any Reg O violation, so it’s imperative that all directors understand its requirements and limitations.
NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your institution is prohibited. Print materials may be copied for eligible participants only.
Spencer Fane LLP
This Webinar Appears In
© 2023 FINANCIAL EDUCATION & DEVELOPMENT, INC