OCC UCE Deck 3 Questions with Detailed Verified Answers

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OCC UCE Deck 3 Questions with
Detailed Verified Answers

Question:Is it required for every bank to have a written policy regarding
insider transactions


Ans: yes


Question: What law governs loans to executive officers for banks


Ans: 12 USC 375a


Question: What law governs extensions of credit to executive officers,
directors, and principal shareholders


Ans: 12 USC 375b


Question: What is the main regulation governs insiders (reg o)


Ans: 12 CFR 215


Question: What regulation does the OCC have that governs extensions of
credit to insiders and transactions with affiliates


Ans: 12 CFR 31


Question: How is insider defined per regulation o

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Ans: It is an executive officer, director, principal shareholder including related
interests of such person


Question: For regulation O purposes how is related interest defined


Ans: A company that is controlled by that person or a political campaign
committee that is controlled by that person or the funds of services of which
will benefit that person


Question: how is affiliate defined for regulation o purposes


Ans: means any company of which a member bank is a subsidiary or any
subsidiary of that company


Question: how is subsidiary defined for regulation o purposes


Ans: any company who owns 25% or more of voting shares, any company the
election of a majority of whose directors is controlled in any manner by such
company, and/or any company with respect to the management of policies of
which such bank holding company has the power, directly or indirectly, to
exercise a controlling influence, as determined by the board, after notice and
opportunity of a hearing


Question: how is principal shareholder defined for regulation o purposes

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Ans: directly or indirectly or acting through concert with one or more persons,
owns, controls, or has the power to vote more than 10 percent of any class of
voting securities of a member bank or company. Shares owned by immediate
family are considered owned being held by that person


Question: For the purposes or regulation o, how is control of a bank
determined


Ans: a person directly or indirectly 1. owns, controls, or has the power to vote
25% or more of any class of voting securities of the bank 2. controls in any
manner the election of a majority of the directors of the company or bank or 3.
has the power to exercise a controlling influence over the management or
policies of the bank


Question: For purposes of regulation o, when is a person presumed to have
control, including power to exercise a controlling influence over the
management or policies of the bank


Ans: if the person is an executive officer or director and has the power to vote
more than 10 percent of any class of voting securities or the person directly or
indirectly owns or has the power to vote more than 10 percent of any class of
stock and no other person owns, controls, or has the power to vote a greater
percentage of that class of stock


Question: Is an executive officer or director assumed to have control including
the power to exercise a controlling influence over the management or policies
of the bank solely by virtue of the individuals position as an officer or director