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: 12 CFR 215.2(d)(2).

     



Question of the Week Archive

  • QUESTION: The bank has started marketing on social media. The bank wants to market deposit accounts. What must the bank be aware of when marketing on social media?

  • QUESTION: A customer requested to opt out of information sharing. They are complaining to the bank that because of the opt out, the bank cannot report to the credit bureau on the person. Does Reg P make an exception for reporting to a credit bureau?

  • QUESTION: May a bank rely on an oral or written statement regarding the use of covered loan proceeds with regard to HMDA reporting?

  • QUESTION: What does Regulation W apply to?

  • QUESTION: If the bank shares an ATM with another bank that is not FDIC insured, does the official member FDIC sign need to be displayed at an ATM?

  • QUESTION: What is the time frame for providing written notice under the Fair Debt Collection Practices Act when a consumer requests verification of a debt?

  • QUESTION: What due diligence is required for marijuana related business under BSA?

  • QUESTION: For bank's providing statements electronically, is it sufficient to provide a link to the Regulation E error resolution notice on the bank's Internet Banking page?

  • QUESTION: A credit-worthy application was denied because the applicant was on maternity leave. The applicant stated there was a break in employment because of maternity. It was not asked by the lender. Is there still potential for a Reg B violation?

  • QUESTION: Is a health savings account by definition a savings account?

  • QUESTION: If a service member does not notify the bank of active duty until months after they receive active duty orders, does this bank need to go back to the original date of the orders or the date it receives notification for the 6% maximum rate?

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