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Upcoming Events

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May
14
May 14 - May 16, 2019
May 16, 2019
BSA/AML Institute* - MN
Event Type: Seminar/Institutes
Executive C-Suite Training, Compliance, BSA Certification
Minneapolis, MN
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Jun
09
June 09 - June 14, 2019
June 14, 2019
Compliance Institute* - MN
Event Type: Seminar/Institutes
Executive C-Suite Training, Compliance Certification, Compliance
2800 American Boulevard West
Minneapolis, MN

Question of the Week

  • QUESTION: Is the director of an affiliate bound by the extension of credit requirements of Regulation O?

    ANSWER:

    Regulation O states:

    Extensions of credit to a director of an affiliate of a bank are not subject to sections:

    • 215.4 “General Prohibitions”,
    • 215.6 “Prohibitions on knowingly receiving unauthorized extensions of credit”, and
    • 215.8 “Records of member banks”

    If, the director of the affiliate is excluded, by resolution of the board of directors or by the bylaws of the bank, from participation in major policy making functions of the bank, and the director does not actually participate in such functions.

    Reference: Regulation O: 12 CFR 215.2(d)(2).

     

  • QUESTION: Does the prohibition, within Regulation O, to pay an overdraft of an executive officer or director apply to an inadvertent overdraft?

    ANSWER:

    The prohibition against paying an overdraft of an executive officer or director of the bank or executive officer or director of its affiliates* on an account at the bank, doesn’t apply to the payment of an inadvertent overdraft of an account in an aggregate amount of $1,000 or less provided: the account is to overdrawn for more than 5 business days; and the member bank charges the executive officer or director the same fee charged any other customer of the bank in similar circumstances.

     * This prohibition does not apply to the payment by a member bank of an overdraft of a principal shareholder of the member bank, unless the principal shareholder is also an executive officer or director. This prohibition also does not apply to the payment by a member bank of an overdraft of a related interest of an executive officer, director, or principal shareholder of the member bank or executive officer, director, or principal shareholder of its affiliates. 

    Reference: 12 CFR 215.4(e)(2).