Ask Reggi Your Question Now
Can you summarize 3 COCR 701-1 CB101.37?
COMMERCIAL BANKS > Transactions With Affiliates and Loans to Executive Officers, Directors, and Principal Shareholders [Section 11-105-302, C.R.S.]
Short Summary
This legal document, Section 11-105-302 of the Code of Colorado Regulations, governs transactions with affiliates and loans to executive officers, directors, and principal shareholders for commercial banks in Colorado. The document sets restrictions on covered transactions with affiliates, defines the term ‘affiliate,’ and requires that covered transactions and exempt transactions between a bank and an affiliate be consistent with safe and sound banking practice. It also establishes collateral requirements for certain transactions with affiliates and provides exemptions for specific types of transactions. Additionally, the document imposes general provisions and restrictions on transactions with affiliates, including requirements for terms and creditworthiness, prior approval for extensions of credit, and restrictions on advertising. Furthermore, the document prohibits banks from purchasing securities or other assets from affiliates as fiduciaries and from knowingly acquiring securities from underwriters that are affiliates of the bank. Lastly, the document prohibits banks and their subsidiaries from publishing advertisements or entering into agreements suggesting responsibility for the obligations of affiliates. Penalties for non-compliance are not specified in the document.
Whom does it apply to?
Commercial banks in Colorado
What does it govern?
Transactions With Affiliates and Loans to Executive Officers, Directors, and Principal Shareholders
What are exemptions?
Certain transactions with banks that control 80 percent or more of the voting shares, deposits made in an affiliated bank or affiliated foreign bank in the ordinary course of correspondent business, immediate credit given to an affiliate for uncollected items received in the ordinary course of business, loans or extensions of credit fully secured by obligations of the United States or its agencies or a segregated, earmarked deposit account, purchases of securities issued by certain companies, purchases of assets with readily identifiable and publicly available market quotation, and purchases of loans from affiliated banks on a nonrecourse basis
What are the Penalties?
Penalties are not specified in the document.
Jurisdiction
Colorado