Okla. Admin. Code § 85:10-11-13

Current through Vol. 42, No. 4, November 1, 2024

Section 85:10-11-13 - Loan participations

(a) The provisions of this Section are made applicable to trust companies in the same manner as to banks and each reference to "bank" or "banks" shall include references to "trust company" or "trust companies" as if so worded.

(b) Both the selling bank and purchasing bank must maintain satisfactory control over risk from loan participations. Each bank must adopt written lending policies and procedures to govern participations and shall keep written documentation of recourse arrangements which outline the rights and obligations of each party. Failure to meet the requirements of this subsection may constitute an unsafe and unsound banking practice.

(c) The selling bank shall disclose complete and current credit information on the obligor during the term of the loan.

(d) The purchasing bank shall perform an analysis of the credit quality and documentation for obligations to be purchased, shall analyze the value and lien status of the collateral, and shall maintain current and complete credit information on the obligor during the term of the loan. Failure to comply with this subsection may be cited as a technical exception.

(e) If a loan is classified, either internally or externally, the originating bank shall notify all participants of the classification status within 30 days of classification.

Okla. Admin. Code § 85:10-11-13

Amended at 12 Ok Reg 489, eff 12-5-94 (emergency); Amended at 12 Ok Reg 1603, eff 6-12-95; Amended at 25 Ok Reg 1064, eff 5-25-08