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Can you summarize 12 CFR Part 215?
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM > LOANS TO EXECUTIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHAREHOLDERS OF MEMBER BANKS (REGULATION O)
Short Summary
Regulation O, issued by the Board of Governors of the Federal Reserve System, governs the extension of credit by member banks to executive officers, directors, and principal shareholders of the member bank, as well as to individuals and entities related to the member bank. It also applies to companies controlled by such persons and political or campaign committees that benefit or are controlled by such persons. The regulation implements reporting requirements for extensions of credit by member banks to their executive officers, principal shareholders, and related interests. The regulation establishes lending limits for member banks and provides exemptions for extensions of credit to directors and executive officers of bank affiliates under certain conditions. Non-compliance with Regulation O may result in penalties including criminal and civil penalties, as well as enforcement actions by the appropriate Federal banking agency.
Whom does it apply to?
Executive officers, directors, principal shareholders, individuals and entities related to member banks, companies controlled by such persons, and political or campaign committees that benefit or are controlled by such persons
What does it govern?
Extension of credit by member banks to executive officers, directors, and principal shareholders of the member bank, as well as to individuals and entities related to the member bank
What are exemptions?
Extensions of credit to directors and executive officers of bank affiliates under certain conditions, advances against accrued salary, certain acquisitions of indebtedness, and loans made under the Paycheck Protection Program
What are the Penalties?
No specific penalties mentioned in the document
Jurisdiction
U.S. Federal Government