Additional restrictions on loans to executive officers of member banks.

CFR · 2024-01-01 · US · Title 12

The following restrictions on extensions of credit by a member bank to any of its executive officers apply in addition to any restrictions on extensions of credit by a member bank to insiders of itself or its affiliates set forth elsewhere in this part. The restrictions of this section apply only to executive officers of the member bank and not to executive officers of its affiliates. (a) No member bank may extend credit to any of its executive officers, and no executive officer of a member bank shall borrow from or otherwise become indebted to the bank, except in the amounts, for the purposes, and upon the conditions specified in paragraphs (c) and (d) of this section. (b) No member bank may extend credit in an aggregate amount greater than the amount permitted in paragraph (c)(4) of this section to a partnership in which one or more of the bank's executive officers are partners and, either individually or together, hold a majority interest. For the purposes of paragraph (c)(4) of this section, the total amount of credit extended by a member bank to such partnership is considered to be extended to each executive officer of the member bank who is a member of the partnership. (c) A member bank is authorized to extend credit to any executive officer of the bank: (1) In any amount to finance the education of the executive officer's children; (2) In any amount to finance or refinance the purchase, construction, maintenance, or improvement of a residence of the executive officer,

official document · source cfr-2024 · id 12:§ 215.5