4000 - Advisory Opinions
Loan to Corporation Controlled by Executive Officer is Not Subject to "Other Purpose" Loan Limit Unless Officer Personally Guarantees Loan
September 1, 1992
Pamela E.F. LeCren, Counsel
Your August 6, 1992 letter to Mr. Michael Jenkins has been forwarded to me for response.
Please be advised that a loan to a corporation controlled by an executive officer of an insured nonmember bank is not subject to the $100,000 "other purpose" loan limit under FDIC's regulations unless the executive officer personally guarantees the loan in which case the loan to the corporation will be considered made directly to the executive officer.