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Can you summarize 3 NYCRR Part 321?
Banking Organizations > Loans to Executive Officers and Directors of Banks and Bank Holding Companies
Short Summary
This legal document, part of the New York Codes, Rules and Regulations, governs loans provided by banks, bank holding companies, stock-form savings banks, and stock-form savings and loan associations to their executive officers and directors. The document sets forth requirements for such loans, including that they must be made on terms that are not more favorable to the executive officer or director than those offered to other individuals, and must not involve more than the normal risk of repayment or present other unfavorable features. There are exemptions for loans made pursuant to a benefit or compensation program that is widely available to bank employees and does not give preference to executive officers or directors. The document also imposes limits on the amount of loans that can be made to executive officers and directors, requiring prior approval from the board of directors and setting maximum aggregate loan amounts. There is an additional provision regarding approval for extensions of credit made within 14 months of a previously approved line of credit. The document defines various transactions that are considered loans or extensions of credit to these individuals, including obligations resulting from notes, drafts, bills of exchange, or other indebtedness, advances by means of overdraft, and issuance of standby letters of credit. However, there are exemptions for certain types of advances, acquisitions, and endorsements or guarantees. The document also requires banks to promptly report any loans to executive officers to the board of directors, comply with specific requirements, and obtain a detailed current financial statement from the executive officer. The definition of a residence is provided, including cooperative apartments. The document does not specify any penalties for non-compliance or violations.
Whom does it apply to?
Banks, bank holding companies, executive officers, and directors
What does it govern?
Loans to executive officers and directors of banks and bank holding companies
What are exemptions?
The document provides exemptions for loans made pursuant to a benefit or compensation program that is widely available to bank employees and does not give preference to executive officers or directors. There are also exemptions for certain types of advances, acquisitions, and endorsements or guarantees.
What are the Penalties?
No specific penalties are mentioned in the document.
Jurisdiction
New York