Credit to Insiders

10問 • 3ヶ月前

問題一覧

1. For purposes of insider lending laws and regulations, what is the definition of the term executive officer? a. All bank officers at or above the level of executive vice president b. Anyone who has the authority to participate in major policymaking functions at the bank c. Anyone who has the authority to participate in lending decisions at the bank d. All bank officers at or above the level of assistant vice president

2. When may a bank pay an overdraft of $5,000 created by an executive officer of the bank? a. When the officer is at the level of a vice president or lower b. When the officer has previously signed an overdraft protection credit agreement in an amount sufficient to cover the overdraft c. When the officer has enough funds in another account to cover the overdraft d. When the bank pays the overdrafts for other good customers in the ordinary course of business

3. How may a bank limit the definition of executive officer? a. By strictly defining, in writing, the duties and responsibilities of the officers to be excluded from the definition b. By passing a board of director’s resolution setting forth the bank’s definition of an executive officer c. By requiring that those officers to be excluded from the definition not attend loan committee meetings or loan review meetings d. By limiting the amount of confidential information given to those officers to be excluded from the definition

4. First National Bank has an employee benefit program whereby all bank employees who meet the bank’s credit underwriting standards may obtain consumer loans for major purchases or expenses at a rate that is less than the bank’s prime rate. Can the bank allow its executive officers to borrow under this program? a. No. Executive officers may not have preferential interest rates under any circumstances. b. No. However, the related interests of the executive officers may take advantage of it. c. Yes. However, executive officers must secure their loans with collateral valued at 100 percent of the loan balance or more. d. Yes. Provided the program is available to everyone at the bank as an employee benefit, executive officers may also participate.

5. Which of the following is true regarding extensions of credit to executive officers, directors, and principal shareholders? a. Must be approved in advance by the board of directors if the aggregate credit is more than the greater of either $25,000 or five percent of the bank’s unimpaired capital and unimpaired surplus, but not exceeding $500,000 b. Must be approved in advance by the board of directors if the credit is greater than $50,000 or five percent of the bank’s capital and surplus c. May not exceed $100,000 in the aggregate, regardless of approvals d. May not exceed $250,000 in the aggregate, regardless of approvals

6. For an extension of credit to an executive officer made pursuant to a line of credit agreement, what is the maximum permitted duration following board approval of the line of credit that advances under the line of credit would not require prior approval? a. 12 months of line of credit approval b. 9 months of line of credit approval c. 14 months of line of credit approval d. 6 months of line of credit approval

7. First National Bank would like to adopt a recordkeeping system that complies with the requirements of Regulation O. Which of the following best describes the recordkeeping system required by Regulation O? a. A system in which the bank annually surveys all executive officers of First National and its affiliates to determine the insiders’ related interests b. A system in which the bank asks all borrowers as loans are made whether the borrower is a related interest of an insider c. A system that surveys insiders of First National annually and requires each insider to disclose his or her related interests d. A system that requires an annual survey of affiliate insiders

8. Which of the following does an extension of credit NOT include? a. An advance by means of an overdraft or cash item b. The making or renewal of any loan or granting of a line of credit c. An advance against accrued salary d. An acquisition of a note on which an insider is a maker, drawer, or guarantor

9. Which of the following transactions is subject to the provisions of Regulation O? a. Time deposit account held by a director b. Travel advance to an executive officer outstanding for less than 30 days c. Extension of credit to a director of an unaffiliated, competing, non-correspondent bank d. Extension of credit to a member of the bank’s board of directors

10. In a review of a bank’s compliance with the Regulation O overdraft provisions, what should the compliance officer do? a. Identify the related interests of all directors, executive officers, and principal shareholders b. Examine the bank’s overdraft reports for a selected time period c. Examine the annual FFIEC-004 reports on indebtedness to correspondent banks d. Examine the bank’s latest report of condition and income

Truth in Lending

ユーザ名非公開 · 36問 · 4ヶ月前

Truth in Lending