Regulatory Alerts2010-02-02
SBD Opinion No. 2010-1 Establishment of Loan Production Offices
The Alabama State Banking Department issued Opinion 2010-1 to establish the conditions and activity limits for Loan Production Offices. Alabama state-chartered banks must obtain prior approval from the Superintendent of Banks by submitting a detailed application, while out-of-state banks must provide notice to the Superintendent or their primary regulator. The opinion restricts LPO activities to loan origination and closing, explicitly prohibiting credit decisions and the disbursement of loan proceeds at these facilities.
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