Related Organizations

Related Interests of Insiders

A "related interest" is simply a type of related organization defined for purposes of the statute and regulations that govern a bank’s loans to its "insiders." See 12 USC 375b, as well as 122 CFR 31 and Regulation O, 12 CFR 215. [9] The statute and regulations apply restrictions to, among other things, a bank’s loans to any of its "principal shareholders" (defined for these purposes as natural persons who control a bank) and any "related interests " of a principal shareholder. A "related interest" is generally deemed to be a company that the principal shareholder controls. There is some overlap between insider-lending laws and affiliate transactions laws. Many related interests of a bank’s principal shareholder would also be "affiliates" of the bank. The "Insider Activities" booklet of the Comptroller’s Handbook contains additional information on the insider-lending restrictions. The following section provides additional information on transactions with affiliates.

9.
Regulation O applies to insiders of banks, which include principal shareholders, directors, and executive officers, and their related interests. The "Insider Activities" booklet of the Comptroller’s Handbook contains additional information on transactions with insiders.
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