Do it Right When Lending to Insiders: A Guide to Regulation O

Executive Summary Bank directors and executive officers bring business to the institutions they serve, which often, if not always, includes their own banking business.  At the same time, however, federal law restricts the ability of directors and their related interests to engage in business with the bank with which they are associated, particularly in obtaining loans and extensions of credit.  These restrictions are primarily set forth in Section 22(h) of the Federal Reserve Act and Regulation O of the Federal Reserve Board, but they apply to all insured depository institutions by virtue of other statutory provisions. Reg O has heightened…