In the case of the Sam Wilson loan, it is important that you review some of the applicable regulations. Note that regardless of whether regulations deal with “consumer” laws or a bank’s “safety and soundness,” regulations typically follow a standardized format for ease of use.
For instance, there is usually a table of contents to help guide you to the part of the regulation that applies to a situation for which you are trying to find an answer. Next, there is a legal citation for the law(s) that provides the statutory basis or authority for the regulation. Following this, there is a brief statement of the regulation’s purpose and to whom it applies. Next, there is a section on definitions of terms used in the regulation. The definitions are specific to the regulation and the same term can take on a slightly different meaning from regulation to regulation.
After this preliminary information, you generally find the heart of the regulation. Here you will find some or all of the following: prohibited actions, regulatory exclusions, reporting requirements and regulatory penalties.
Insights Bank and Trust has included summaries of a few key regulations in your meeting materials. If you have not done so already, review the lessons on Regulation W, Regulation O and Regulation B.
Once you have been briefed on the applicable regulatory issues in the Sam Wilson loan, consider The Board’s Response.