Regulatory Alerts1997-01-01
Legal Lending Limit and Regulation O Compliance for Kansas State-Chartered Banks
Kansas Bank Commissioner W. Newton Male issued this memo to clarify the interaction between the state's 25% lending limit under K.S.A. 9-1104 and Federal Reserve Regulation O limits for insiders. The document mandates that banks maintain separate compliance with both laws, noting that the state limit applies uniformly to all executive officers, directors, and principal shareholders. It further details specific Regulation O restrictions, including a 15% general limit plus an additional 10% for secured loans, and outlines permissible loan purposes for executive officers alongside aggregate caps for other credit extensions.
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