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FEDERAL RESERVE BANK OF NEW YORK !*Circutar No. 8385*1 I Jutyll. 1978 A M E N D M E N T TO R E G U L A T IO N O Credit Card Indebtedness of Executive Officers of M em ber Banks 7b ,4 // MfMtbfr CbMrcrMff/. Rfsprrf The Board of Governors of the Federal Reserve System has amended its Regulation 0, "Loans to Executive Officers of Member Banks," to make it clear that an executive officer may not become indebted to a member bank under a bank credit card, check creditor similar plan under terms more favorable than those offered to the general public. The amendment became effective June 30, 1978. Enclosed is a copy of the amendment. Questions regarding the amendment may be directed to our Regulations Division (Tel. No. 212-791-5914). P A U L A. VO LCKER. P r e s id e d . Board of Governors of the Federal Reserve System LOANS TO EXECUTIVE OFFICERS OF MEMBER BANKS AMENDMENT TO REGULATION 0 Effective A G E V C K Board of Governors of the Federal A C 7Y O N . Final rule. S L W A fA F F .* June 30. 1978, § 215.2(c) is amended to read as follows: Reserve System. This S E C T IO N 2 1 5 .2 -D E F I N I T I O N S amendment clarifies * the * * expression "general arrangem ents" in section (c) 215.2(c) (5) (iv) in the Board's Regulation 0 . The amendment is intended to reflect the Board's p o sitio n th a t arrangem ents" the e x p r e s s io n precludes any "Extension * "g e n e r a l arrangem ent whereby an executive officer would be able to than those offered * to the general public. * (iv) * * indebtedness arising by reason of general arrangements^ under which a bank (a) acquires charge or time credit accounts or E F F E C T I V E D A T E . June 30, 1978. E O F E E F 7 W E F E V E O F M A 770AT C O A T A C T Robert E. Mannion, Associate General Counsel (202-452-3274), or Jennifer J. Johnson. Attorney (202-452-3584), Governors * Such terms, however, do not include: incur credit card indebtedness on terms more favorable of credit" and "extend credit".*** of Legal the Division. Federal Board Reserve of System, Washington. D.C. 20551. (b) makes payments to or on behaif of participants in a bank credit card pian, check credit pian, or simiiar pian, except that this s u b d iv is io n ( i v ) s h a i ! not a p p i y to indebtedness of an executive officer to his own bank to the extent that the aggregate amount thereof exceeds $ 5,000 or to any such The indebtedness to his own bank that invoives Reserve prior individuai ciearance or approvai by the System has amended its Regulation O in order to clarify a type of indebtedness that is excluded bank other than for the purpose of determ ining whether his participation in the from the definition of extension of credit. arrangem ent is authorized or whether any S E P P L E A fE A T A F F EVEOFAfA7YOAf. Board of Governors of the Federal The procedures of section 553(b) of Title 5, United States Code, with respect to notice, public participation and deferred effective date were not followed because this amendment is interpretative in nature. Authority: 12 U .S.C . § 375(a). doiiar iimit under the arrangem ent has been or wouid be exceeded. ' The expression "genera! arrangement" is not intended to inciude an arrangement whereby an executive officer incurs indebtedness under a hank credit card pian, check credit pian. or simiiar pian under terms more favorabie than those offered to the genera! pubiic. For this Reguiation to be compiete. retain: 1) Reguiation O pamphiet. effective March 15. 1963. 2) This siip sheet. PRt NTHD ! N NEW YORK [Enc. Cir. No. 3385]
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