ABA-Certified Regulatory Compliance Manager - CRCM Set 1

1.

Under collateral requirements-12CFR 221.7, maximum loan value of margin stock is:

Currently 50 percent of the current market value Currently 70 percent of the current market value Subject to change by the Federal Reserve Subject to change by the Equity Reserve

2.

What is actually a Single credit rule-12 CFR 221.3(d)?

All purpose credit extended to a customer will be considered to be a single credit for purposes of Regulation U The value of all collateral securing all-purpose loans will be aggregated to determine if it is sufficient If unsecured purpose credit is extended before secured purpose credit, the loans need only be combined for purposes of applying the withdrawal andsubstitution rules All of the above

3.

Which one of the following types of credit may be extended in Requirements case-12 CFR 221.3, 221.7:

Temporary advances in payment against delivery transactions Capital contribution leases Credit to clearing banking authorities Underwriter loans

4.

OCC advisory on credit card practice-AL-2004-10 in credit card practices covers:

Finance and credit management practices that may be unfair or deceptive and expose a bank to compliance and reputation risk Marketing and account management practices that may be unfair or deceptive and expose a bank to compliance and reputation risk Marketing and account management practices Marketing and account management practices that may be fair and can't expose a bank to compliance and reputation risk

5.

Practice/s addressed in the guidance of OCC advisory on credit card practices-AL-2004- 10 is/are:

"Up-to" marketing Promotional rate marketing Repricing of accounts and other changes in credit terms Lending to insiders

6.

Regulation O both restricts lending to insiders and requires that certain loans to insiders be disclosed. Each banking agency has adopted the provisions of Regulation O for administrative enforcement purposes. These were not found to be useful in preventing insider lending abuse. Regulation O governs which of the following areas major areas:

Lending to insiders Disclosures of loans made to insiders Both of these None of these

7.

Unless excluded by a board resolution or the bylaws, the following officers will be considered to be executive officers EXCEPT:

Chairman of the board President Each vice-president and above (for example, senior vice-president, executive vice-president, and so on) Brokerage house's vice president

8.

____________ is any company of which the bank is a subsidiary or any other subsidiary of the same company of which the bank is a subsidiary.

Brokerage House Treasury FDIC Affiliates

9.

It is an extension of credit will be deemed to be made to an insider if the proceeds are transferred to the insider or used for the insider's benefit. This rule does not apply if the credit is made on substantially the same terms and conditions as those made to a noninsider and if the proceeds are used in a bona fide transaction involving the acquisition of property, goods, or services from the insider. What is it?

Tangible economic benefit rule012 CFR 215.3(f) Extension of credit-12 CFR 215.3 Lending restrictions Intangible economic-benefit rule

10.

Lending restrictions under requirements 12 CFR 215; 12 CFR 337, 12 CFR 349 are all of the following EXCEPT:

Banks may not lend to executive officers, directors, principal shareholders, or any of their related interests unless the credit is made on substantially the same
terms and following credit underwriting standards that are not less stringent than those on loans to persons who are not insiders; however, if the bank has a
benefit program widely available to its employees, it may lend to insiders on the same terms and conditions as it lends to its other employees, pursuant to its
employee benefit program Banks may not lend to any executive officer, director, or principal shareholder, and to any of their related interests, amounts that exceed the higher of $25,000or 5 percent of the bank's capital and unimpaired surplus (up to a maximum of $500,000) in the aggregate unless The credit is approved in advance by the
board of directors The interested party has abstained from voting Prior approval is not needed for each draw against a line of credit provided the line of credit was approved within the preceding 14 months, based on the then-current financial statement None of these

ABA-Certified Regulatory Compliance Manager - CRCM Set 1

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ABA-Certified Regulatory Compliance Manager - CRCM Set 1

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