Regulation O – Lending to Insiders

June 15, 2021

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Description:

Register by April 30th and take advantage of our Early Bird Pricing!

All registrations to Compliance Resource webinars include five live connections AND the recording of the webinar (guaranteed for one year).

WHAT?

Congress enacted the Financial Institutions Regulatory and Interest Control Act in 1978. The insider lending provisions of the law were implemented as Regulation O. Historical data show that insider abuse is at the heart of many bank failures. Examiners take very seriously their mission to prevent insider abuse. They frequently cite violations of Regulation O during examinations, and often take enforcement action. Enforcement actions may take the form of civil monetary penalties, a written agreement, or a Cease and Desist Action.

Typical violations include illegal overdrafts to insiders or extensions of credit that exceed one of several lending limit provisions contained in the regulation. These violations generally result from a lack of adequate procedures. Simple steps to monitor overdrafts and total extensions of credit to insiders are usually sufficient to prevent such violations. This program provides suggestions for procedures.

In other cases, violations result from a lack of understanding of the fine details of Regulation O. The concepts are fairly straight forward but contain enough details to cause confusion. Most banks can easily identify their directors and executive officers, but confusion occurs when trying to determine the status of the directors and executive officers of affiliated institutions. Each of the three lending limits is fairly simple but determining how the three limits interact with one another can cause confusion. This program provides detailed coverage of these, and other, basic requirements of Regulation O.

Civil monetary penalties can be assessed against the institution or against individuals. In one case, Federal regulators fined one director $15,000 for Regulation O violations.

On March 31, 2021, the Board of Governors of the Federal Reserve Board published ten Frequently Asked Questions (FAQs) about Regulation O. The FAQs include legal interpretations that have been formulated over time in response to specific requests. The FAQs include significant existing interpretations of the regulation, including those found in Board orders, letters to specific requestors, and other sources, as well as those not previously available in written form.

WHY?

This program provides the information needed by the lending, compliance and audit staff to assure ongoing compliance with the regulation. Participants receive a detailed manual that serves as a handbook long after the program is completed.

PROGRAM CONTENT

Regulation O places strict requirements on loans made to “insiders.” This two-hour program explains:

  • Who is considered an insider;
  • What transactions are considered “extensions of credit;”
  • The prohibition against preferential treatment;
  • The requirements for prior approval;
  • The lending limits for each insider, all insiders as a group, and special limits for executive officers;
  • The restrictions on overdrafts;
  • How Regulation O rules impact existing extensions of credit to newly elected/appointed insiders; and
  • The recently published FAQs.

WHO?

The program is designed for loan officers, compliance officers, loan support staff and auditors.

*This program will start at 2:00 PM EDT, 1:00 PM CDT, 12:00 PM MDT, or 11:00 AM PDT

**Recording Available

This webinar will be recorded and sent to all registrants.  You will receive links to the recording following the program.  These recordings have unlimited viewings and are available for up to one year.

Register by April 30th and take advantage of our Early Bird Pricing!

If you are receiving an error message when attempting to register, we recommend using a modern browser (not Internet Explorer).  Users have reported issues since Internet Explorer stopped being supported by Microsoft. For best results, attempt using Google Chrome, Microsoft Edge or Mozilla Firefox.

Presenters:

Jack Holzknecht

Jack Holzknecht is the CEO of Compliance Resource, LLC. He has been delivering the word on lending compliance for 45 years. In 40 years as a trainer over 150,000 bankers (and many examiners) have participated in Jack’s live seminars and webinars. Jack’s career began in 1976 as a federal bank examiner.  He later headed the product and education divisions of a regional consulting company. There he developed loan and deposit form systems and software. He also developed and presented training programs to bankers in 43 states. Jack has been an instructor at compliance schools presented by a number of state bankers associations. As a contractor he developed and delivered compliance training for the FDIC for ten years. He is a Certified Regulatory Compliance Manager and a member of the National Speakers Association.

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Price: $0.00
Start Time: 2:00 pm EST
End Time: 4:00 pm EST
Date:

June 15, 2021

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