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.
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Presented By

Elizabeth Fast, JD & CPAElizabeth Fast
Spencer Fane LLP

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