Prior Approval - BankersOnline



INSIDER LOANS

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|Law Applicability |Prior Approval |Board Approval |$ Limit |

| | | | |

|Regulation O |(Prior approval from a majority |(Document approval in Board |(Director and Related Interest Lending Limit: |

| |of the Board of Directors is |minutes if prior approval | |

|Applies to Directors, Executive |required for loans exceeding |required |Direct loans + |

|Officers, Prin. Shareholders and their|$500,000 |(Document in Board minutes that |Loans to related interests + |

|Related Interests. |(Prior approval from a majority |the director abstained from |Loans guaranteed by a director, |

| |of the Board of Directors is |voting |EO, or Prin. Shareholder must be ≤ bank’s |

|EO for Regulation O are ______ |required when aggregate |(Promptly report EO debt to |lending limit which is |

|_________________________ |borrowings exceed $500,000 |Board and document in minutes if|Calculated quarterly by bank |

| |(EO loans must include demand |prior approval N/A |Controller |

|_________________________ |clause that loan MAY be called | | |

| |if EO becomes indebted to any | |( EO Lending Limits = See state law $ limit ( |

|_________________________ |other bank(s) in amounts | |lower right-hand box.) |

| |exceeding $ limit specified by | | |

|_________________________ |Reg O. (EO Limits = NE state | |(Credit cards up to $15,000 not |

| |law $ limit ( lower right-hand | |included in debt subject to |

| |box.) | |insider lending limit |

|Applies to Directors and Executive | | | |

|Officers and their related interests | | |(Overdraft protection up to |

|of ________ | | |$5,000 not included in debt |

| | | |subject to insider lending limit |

|________________________ | | | |

| | | | |

|________________________ | | | |

| | | |(Include direct and guaranteed debts |

|State Law (THIS CHART ILLUSTRATES, |(Not required by state law |(Debt acquired from other |(Any amount to finance education of executive |

|FOR EXAMPLE PURPOSES, THE STATE LAW IN| |financial institutions must be |officer’s children. |

|PAM’S STATE) | |reported to the Board of |(Any amount to finance or refinance the purchase,|

| | |Directors by the next Board |improvement, or construction of the executive |

|Applies to ________________ | |meeting |officer’s residence |

| | | |(Note: this excludes home equity loans for |

|_________________________ | | |purposes other than those mentioned. First lien |

| | | |loans only.) |

|_________________________ | | |(For any other purpose not specified above |

| | | |provided total “other purpose” debt to the |

|*Director and related interest | | |executive officer does not exceed $100,000 |

|restrictions under state law = | | | |

|Regulation O restrictions as stated | | |(Minimal risk transactions, such |

|above | | |as those secured by a CD or |

| | | |investment securities are |

| | | |exempt from the $100,000 |

| | | |limitation |

***Banks must follow normal credit underwriting procedures when extending credit to insiders. Comparable transactions with non-insiders must support that credit standards to insiders are not less stringent than the norm. Document comparable loan transactions.***

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