Extension of credit.

CFR · 2024-01-01 · US · Title 12

(a) An extension of credit is a making or renewal of any loan, a granting of a line of credit, or an extending of credit in any manner whatsoever, and includes: (1) A purchase under repurchase agreement of securities, other assets, or obligations; (2) An advance by means of an overdraft, cash item, or otherwise; (3) Issuance of a standby letter of credit (or other similar arrangement regardless of name or description) or an ineligible acceptance, as those terms are defined in § 208.24 of this chapter; (4) An acquisition by discount, purchase, exchange, or otherwise of any note, draft, bill of exchange, or other evidence of indebtedness upon which an insider may be liable as maker, drawer, endorser, guarantor, or surety; (5) An increase of an existing indebtedness, but not if the additional funds are advanced by the bank for its own protection for: (i) Accrued interest; or (ii) Taxes, insurance, or other expenses incidental to the existing indebtedness; (6) An advance of unearned salary or other unearned compensation for a period in excess of 30 days; and (7) Any other similar transaction as a result of which a person becomes obligated to pay money (or its equivalent) to a bank, whether the obligation arises directly or indirectly, or because of an endorsement on an obligation or otherwise, or by any means whatsoever. (b) An extension of credit does not include: (1) An advance against accrued salary or other accrued compensation, or an advance for the payment of authorized tra

official document · source cfr-2024 · id 12:§ 215.3