Webinar

Regulation O: Lending to Insiders
Examiners are serious about preventing insider abuse, and Regulation O enforcement actions and civil money penalties are no joke. This webinar provides the information needed to assure ongoing compliance.

Congress enacted the Financial Institutions Regulatory and Interest Control Act in 1978. The insider lending provisions of the law were implemented as Regulation O. Historical data show that insider abuse is at the heart of many bank failures. Examiners take very seriously their mission to prevent insider abuse.They frequently cite violations of Regulation O during examinations and often take enforcement action. Enforcement actions may take the form of civil monetary penalties, a Memorandum of Understanding or a Cease and Desist Action.

Typical violations include illegal overdrafts to insiders or extensions of credit that exceed one of several lending limit provisions contained in the regulation. These violation generally result from a lack of adequate procedures. Simple steps to monitor overdrafts and total extensions of credit to insiders are usually sufficient to prevent such violations. This program provides suggestions for procedures.

In other cases, violations result from a lack of understanding of the fine details of Regulation O. The concepts are fairly straightforward but contain enough details to cause confusion. Most banks can easily identify their directors and executive officers, but confusion occurs when trying to determine the status of the directors and executive officers of affiliated institutions. This program provides detailed coverage of these and other basic requirements of Regulation O.

Civil monetary penalties can be assessed against the institution or against individuals. Recently Federal regulators fined five former directors and executives for violations of insider lending rules. The fines ranged from $8,000 to $20,000 per individual.

Highlights

Regulation O places strict requirements on loans made to “insiders.” This two-hour program explains:

  • Who is considered an insider;
  • What transactions are considered “extensions of credit;”
  • The prohibition against preferential treatment;
  • The requirements for prior approval;
  • The lending limits for each insider, all insiders as a group and special limits for executive officers;
  • The restrictions on overdrafts; and
  • How Regulation O rules impact existing extensions of credit to newly elected/appointed insiders

Why Participate?

This program provides the information needed by the lending, compliance and audit staff to assure ongoing compliance with the regulation. Participants receive a detailed manual that serves as a handbook long after the program is completed.

Audience

Loan officers, compliance officers, loan support staff and auditors.

Speaker

Jack Holzknecht, CRCM, is the CEO of Compliance Resource, LLC. He has been delivering the word on lending compliance for 39 years. Jack’s career began as a federal bank examiner. He also headed the form and software division of a regional consulting company. He has developed and presented training programs to bankers in 43 states. He also developed and delivered training for the FDIC.

Credit Information

Institute of Certified Bankers: Visit http://www.icbmembers.org/login.aspx for instructions regarding self-reporting. Estimated credits: 2 hours/session

Pricing

Live Webinar:

Member price: $275.00 | Non member price $550.00

On-Demand Webinar

Member price: $295.00 | Non member price $560.00

Registration

Online: Visit the CBA Webinar Catalog

Mail: Click here and mail completed form with check payable to ConferenceEdge to: (Mail at least 10 days prior to event)

ConferenceEdge
1516 Xavier St., Ste 500, Denver, CO 80204

Phone: Call ConferenceEdge at (877) 988-7526 (credit card payments only)

Please Note:

  • Preferred Payment Method: Online
  • Please register online or by phone when paying with a credit card
  • Payment Must Accompany Registration – Invoices are Not Provided

Register online up to day of event. Earlier registration allows time to check your computer for an optimal experience.

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