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).