|Weir and Peterson's Regulatory Checklist|
By Dave Weir and Curt Petersen, partners and co-founders of Lenders Capital Resources, LLC, Wayzata, Minn. This is a companion to their article, “Haunted by the Ghost of Loan Participations Past and Present?”
A partial list of important reference materials relating to participations that bankers and directors, in some cases, might review:
1. FDIC, OCC, and other regulatory pronouncements regarding the duties of bank directors and officers (numerous).
2. FDIC Supervisory Insights newsletter, “The Importance of a Loan Policy Tune-Up.”
3. FDIC-Risk Management Manual of Examination Policies-Section 3.2-Loan Participations.
4. OCC Banking Circular-BC 181-Rev. August 1984 regarding “Purchases Of Loans In Whole Or In Part-Participations.”
5. FFIEC-Supplemental Call Report Prep Instructions for Dec 31-2009-Pages 2-4 regarding loan participations.
6. FDIC-Rules and Regulations- Section 360.6 FDIC as Conservator or Receiver in Connection with a Securitization or Participation.
7. Interagency Statement on Sales of 100% Loan Participations-April 1997.
8. OCC Interpretive Letter 1118-July 2009-“Exchange of Interest in Real Property for LLC Interest for OREO Disposition.”
9. OCC-Interpretive Letter 1123-Sept 2009-E”xchange of DPC Interest for LLC Interest for OREO Disposition.”
10. Advance Notice of Proposed Rulemaking Regarding Treatment by FDIC as Conservator or Receiver of Financial Assets Transferred by an Insured Depository Institution in Connection With a Securitization or Participation after March 31, 2010.
11. Current bank D & O insurance policy coverage and limits and application for renewal of coverage, exclusions and other limitations (including consultation with bank regulatory and insurance counsel).
[This article was posted on March 12, 2010, on the website of ABA Banking Journal, www.ababj.com, and is copyright 2010 by the American Bankers Association.]
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