Loans to Executive Officers, Directors and Principal Shareholders
The Board of Governors of the Federal Reserve System has adopted the attached two final rules implementing changes to Regulation O (12 C.F.R., Part 215) , which governs loans to executive officers, Directors, and principal shareholders of member banks ("insiders"). The FDIC has incorporated applicable sections of Regulation O by cross-reference in Section 337.3 of its Rules and Regulations. Therefore, Regulation O provisions apply to insured state nonmember banks, their subsidiaries and insiders, and related interests of insiders in the same manner and to the same extent as if the bank were a member bank. The first rule became effective on November 4, 1996; the second, April 1, 1997. A summary of the amendments follows.
For more information, please contact William P. McNamara, Examination Specialist in the Division of Supervision (202-898-6778), or Mark Mellon, Counsel in the Legal Division (202- 898-3854).
Attachments:
Distribution: FDIC-Supervised Banks (Commercial and Savings) NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC’s Public Information Center, 801 17th St., N.W., Room 100, Washington, D.C. 20434 ((703) 562-2200 or 800-276-6003). |