Insider Activities

12 USC 375a

Section 375a limits extensions of credit to executive officers (but not to their related interests). Mortgage loans are permitted regardless of amount if the loan is secured by a first lien on a dwelling the executive officer owns and uses as a residence. Executive officers may have only one such loan outstanding at a time. Extensions of credit to finance children’s education are also permitted without limit. Other loans, although permitted, are subject to a lending limit set by 12 CFR 215.5(c)(4), Regulation O. Additional restrictions on loans to executive officers are imposed by 12 USC 375b as discussed below. Thus, mortgage and educational loans are not limited by section 375a, but aggregate loans to an individual executive officer and to insiders and their related interests collectively are limited by section 375b and section 215.4 of Regulation O.

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