[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR614.4470]



[Page 132]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

                  Subpart M_Loan Approval Requirements

 

Sec. 614.4470  Loans subject to bank approval.



    (a) The following loans (unless such loans are of a type prohibited 

under part 612) shall be subject to prior approval of the bank 

supervising the association in which the loan application originates:

    (1) Loans to a director of the association.

    (2) Loans to a director of an association which is under joint 

management when the application originates in one of the associations.

    (3) Loans to an employee of the association.

    (4) Loans to an employee of an association which is under joint 

management when the application originates in one of the associations.

    (5) Loans to bank employees when the application originates in one 

of the associations supervised by the employing bank.

    (b) Loans to any borrower shall be subject to the prior approval of 

the bank supervising the association in which the loan application 

originates whenever a director or an employee of the association or an 

employee of the bank supervising the association:

    (1) Will receive proceeds of the loan in excess of the amount 

prescribed by the supervising bank board, or

    (2) Has a significant personal or beneficial interest in the loan, 

the proceeds, or the security, or controls the borrower, or

    (3) Is an endorser, guarantor, or comaker with respect to the loan 

in excess of an amount prescribed by the supervising bank board.

    (c) Any loan which will result in any one borrower being obligated 

(as defined in subpart J of this part) in excess of an amount 

established by the supervising bank under its policies for delegation of 

authority to associations shall be subject to prior approval of the 

supervising bank.



[47 FR 49832, Nov. 3, 1982, as amended at 58 FR 40324, July 28, 1993; 60 

FR 20010, Apr. 24, 1995]