[Code of Federal Regulations]
[Title 12, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR215.20]

[Page 434-435]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 215--LOANS TO EXECUTIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHAREHOLDERS OF MEMBER BANKS (REGULATION O)--Table of Contents
 
 Subpart B--Reports on Indebtedness of Executive Officers and Principal 
                   Shareholders to Correspondent Banks
 
Sec. 215.20  Authority, purpose, and scope.


    (a) Authority. This subpart is issued pursuant to section 11(i) of 
the Federal

[[Page 435]]

Reserve Act (12 U.S.C. 248(i)) and 12 U.S.C. 1972(2)(F)(vi).
    (b) Purpose and scope. This subpart implements the reporting 
requirements of Title VIII of the Financial Institutions Regulatory and 
Interest Rate Control Act of 1978 (FIRA) (Pub. L. 95-630) as amended by 
the Garn-St Germain Depository Institutions Act of 1982 (Pub. L. 97-
320), 12 U.S.C. 1972 (2)(g). Title VIII prohibits (1) preferential 
lending by a bank to executive officers, directors, and principal 
shareholders of another bank when there is a correspondent account 
relationship between the banks, and (2) the opening of a correspondent 
account relationship between banks where there is a preferential 
extension of credit by one of the banks to an executive officer, 
director, or principal shareholder of the other bank.

[44 FR 67979, Nov. 28, 1979, as amended at 48 FR 56936, Dec. 27, 1983]