(a) In general. Each member bank shall maintain records necessary
for compliance with the requirements of this part.
(b) Recordkeeping for insiders of the member
bank. Any recordkeeping method adopted by a member bank shall—
(1) identify, through an annual survey,
all insiders of the bank itself; and
(2) maintain records of all extensions
of credit to insiders of the bank itself, including the amount and
terms of each such extension of credit.
(c) Recordkeeping for insiders of the member
bank’s affiliates. Any recordkeeping method adopted by a member
bank shall maintain records of extensions of credit to insiders of
the member bank’s affiliates by—
(1) Survey method.
(i) identifying, through an annual survey,
each insider of the member bank’s affiliates; and
(ii) maintaining records of the amount
and terms of each extension of credit by the member bank to such insiders;
or
(2) Borrower-inquiry
method.
(i) requiring as part of each extension
of credit that the borrower indicate whether the borrower is an insider
of an affiliate of the member bank; and
(ii) maintaining records that identify
the amount and terms of each extension of credit by the member bank
to borrowers so identifying themselves.
(3) Alternative
recordkeeping methods for insiders of affiliates. A member bank
may employ a recordkeeping method other than those identified in paragraphs
(c)(1) and (c)(2) of this section if the appropriate federal banking
agency determines that the bank’s method is at least as effective
as the identified methods.
(d) Special rule for noncommercial lenders. A member bank that is prohibited by law or by an express resolution
of the board of directors of the bank from making an extension of
credit to any company or other entity that is covered by this part
as a company is not required to maintain any records of the related
interests of the insiders of the bank or its affiliates or to inquire
of borrowers whether they are related interests of the insiders of
the bank or its affiliates.
