§ 614.4470 Loans subject to bank approval.

(a) The following loans (unless such loans are of a type prohibited under part 612) shall be subject to prior approval of the bank supervising the association in which the loan application originates: (1) Loans to a director of the association. (2) Loans to a director of an association which is under joint management when the application originates in one of the associations. (3) Loans to an employee of the association. (4) Loans to an employee of an association which is under joint management when the application originates in one of the associations. (5) Loans to bank employees when the application originates in one of the associations supervised by the employing bank. (b) Loans to any borrower shall be subject to the prior approval of the bank supervising the association in which the loan application originates whenever a director or an employee of the association or an employee of the bank supervising the association: (1) Will receive proceeds of the loan in excess of the amount prescribed by the supervising bank board, or (2) Has a significant personal or beneficial interest in the loan, the proceeds, or the security, or controls the borrower, or (3) Is an endorser, guarantor, or comaker with respect to the loan in excess of an amount prescribed by the supervising bank board. (c) Any loan which will result in any one borrower being obligated (as defined in subpart J of this part) in excess of an amount established by the supervising bank under its policies for delegation of authority to associations shall be subject to prior approval of the supervising bank.