Specific Types of Lease Transactions National banks may engage in personal property leasing activities under two separate authorities, 12 USC 24 Seventh and 12 USC 24 Tenth CEBA Leases National bank may invest in tangible personal property, including vehicles, manufactured homes, machinery, equipment, or furniture, for [more...]
"Lender Liability" is a generic term used to designate a wide range of potential bases for civil liability against lenders - most frequently banks. Other than this, it has no well defined meaning. The most common causes of action are the following Breach of Contract Breach of commitment to fund or renew loans Oral commitments [more...]
Summary For consumer oriented lending issues, see topic Consumer Compliance Specific types of lending activities Real estate lending Insider loans Officer residence - OCC clarification of Officer residence exception in FRB Reg O Margin loans Lending limits Exception for loan to developer to construct premises for bank Loans to related [more...]
In General A letter of credit , often abbreviated as an LOC or LC , and also referred to as a documentary credit , is a document issued by a financial institution (the "issuing bank") which essentially acts as an irrevocable guarantee of payment to a beneficiary Once the beneficiary has presented to the issuing or negotiating [more...]
Summary Margin loans are those made for the purpose of buying stocks or other securities Regulations FRB 12 CFR Part 220 Regulation T Credit by Brokers and Dealers 12 CFR Part 221 Regulation U Margin Loans 12 CFR Part 224 Regulation X Borrowers of Securities Credit OCC, [more...]
Summary Payday lending involves short-term loans that are usually repaid within one or two weeks, often with a post-dated check that is deposited after the borrower receives his or her paycheck A number of national banks essentially rented out their charters to third party payday lenders The OCC found that a number of banks were unable to [more...]
Summary and Items of Current Interest OCC Condemns "Predatory, Abusive, Unfair and Deceptive" Mortgage Lending Practices News Release 2.02.05 OCC Guidance OCC Warns National Banks Against Abusive Lending Practices News Release 2.21.03 Guidance Concerning Loan Originations Guidance Concerning Loan Purchases Q&As [more...]
Summary See also the Real Estate Settlement Procedures Act Items of current interest OCC Comptroller Dugan expresses "Concern" about new types of mortgages that offer low initial monthly payments but higher payments later 4.20.06 Interagency guidance on non-traditional mortgage products extension of comment period Interagency guidance on [more...]
Summary Lending to members of the US armed services differs in at least two respects from civilian lending Statutorily, persons entering into or already on active duty are entitled to certain protections of the Servicemembers' Civil Relief Act (2003) which updated the former Soldiers' and Sailors' Civil Relief Act (1940); By [more...]