Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official. 
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
Https
The site is secure. 
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
INACTIVE
This page is no longer active. Its content has expired or been rescinded by the FDIC.
Financial Institution Letter

Loans to Executive Officers


TO: CHIEF EXECUTIVE OFFICER
SUBJECT: Exception to Executive Officer Loan Limits
For Purposes Other Than an Education or a Home

Section 337.3 of the FDIC's rules and regulations places a limit of $100,000 on loans that a state nonmember bank can make to its executive officers for purposes other than an education or a hone, such as commercial loans, farm loans and other types of consumer loans. On December 20, 1994, the FDIC Board of Directors agreed to provide an additional exception for "other purpose" loans that are fully secured by the following collateral: (1) securities, takeout commitments, or guarantees of the United States or any corporation wholly owned by the United States; or (2) a segregated deposit in the lending hank. The amendment parallels recent changes by the Federal Reserve Board regarding loans to executive officers of member banks. The FDIC's final rule became effective when it was published in the Federal Register on December 28, 1994.

As part of the rulemaking process, the FDIC received several recommendations far additional exceptions to the restrictions an loans to executive officers. These recommendations will he considered as part of the interagency effort to eliminate unnecessary regulatory burden.

A copy of the final rule is attached. For more information, contact Michael D. Jenkins, an Examination Specialist in the FDIC's Division of Supervision (202-898-6896), or Mark Mellon, a Senior Attorney in the FDIC's legal Division (202-898-3854).

Stanley J. Poling
Director

Attachment: Federal Register

Distribution: FDIC-Supervised Banks (Commercial and Savings)


FIL-5-95

Last Updated: January 5, 1995