Business loans to Executive Officers

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
  • #6487

    If an executive officer also has a business, are his/her business loans included in the $100,000 “other loans” restriction? I can see certain commentary that insinuates it is but not getting any clear substantiation.


    It depends on whether the loan is being made to: an EO, a partnership where the EO has a majority interest or a related interest.

    Regulation O, 12 CFR 215.5, sets forth additional limits on extensions of credit to Executive Officers, but not their related interests. These restrictions apply to a partnership where an EO holds a majority interest as stated in 215.5(b). Also, if the EO is guaranteeing a related interest loan that would be subject to the $100,000 due to 215.3(7).

    You’ll have a hard time finding anything that specifically spells this out other than the regulation and statute, but here is a link to the OCC Insider Handbook that has a statement agreeing with my opinion: See page 11.

Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.