What is a related interest under Reg O?
Regulation O defines the term “related interest” as a partnership, company, trust or other enterprise that is controlled by a person or enterprise, or a political or campaign committee that is controlled by, or the funds or services of which will benefit, a person or enterprise.
Does Reg O apply to overdraft?
Regulation O does allow a bank to pay an “inadvertent” overdraft of an executive officer or director provided that the aggregate amount of the overdraft is not greater than $1,000, it is repaid within five business days and the bank charges its normal overdraft charge for each item that overdraws the account.
What does regulation O limit?
Regulation O prohibits a bank from extending credit to an insider that is not made on substantially the same terms as, or is made without following credit underwriting procedures that are at least as stringent as, comparable transactions with persons that are non-insiders and not employees of the bank.
Which regulation covers loans made to executive officers shareholders and related interests?
Regulation O
Regulation O is a Federal Reserve regulation that places limits and stipulations on the credit extensions a member bank can offer to its executive officers, principal shareholders, and directors.
What does related interest mean?
related interest means (1) a company (other than an insured bank or a foreign bank) that is controlled by an executive officer, director, or principal shareholder or (2) a political or campaign committee that is controlled by or the funds or services of which will benefit an executive officer, director, or principal …
Who is considered Reg O?
It covers, among other types of insider loans, extensions of credit by a member bank to an executive officer, director, or principal shareholder of the member bank; a bank holding company of which the member bank is a subsidiary; and any other subsidiary of that bank holding company.
What is a reg u loan?
Regulation U is a Federal Reserve Board regulation that governs loans by entities involving securities as collateral and the purchase of securities on margin. Regulation U limits the amount of leverage that can be extended for loans secured by securities for the purpose of buying more securities.
Who does regulation o apply?
§ 215) (“Regulation O”). ‘ Regulation O applies to both state and federally chartered commercial banks, savings associations and savings banks, and not just member banks of the Federal Reserve System. (This Update will use the term “bank” to refer to institutions subject to these requirements.)
Who has access to Fira list?
The Federal Financial Institutions Examination Council (FFIEC)
- The Board of Governors of the Federal Reserve System (FRB)
- The National Credit Union Administration (NCUA)
- The Federal Deposit Insurance Corporation (FDIC)
- The Office of the Comptroller of the Currency (OCC)
- The Consumer Financial Protection Bureau (CFPB)2
What is a regulation O Loan?
Regulation O: Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks. An executive officer of a member bank who becomes indebted to any other member bank must, under certain circumstances, report that indebtedness to the board of directors of the bank of which he or she is an officer.