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Question 120

For purposes of insider lending laws and regulations, what is the definition of the term executive officer?

    Correct Answer: B

    An executive officer is defined as anyone who has the authority to participate in major policymaking functions at the bank. This definition focuses on the role and authority of the individual, not merely their job title. It encompasses those who can influence significant decisions and strategies within the bank, aligning with insider lending laws and regulations.

Discussion
Cam22Option: B

In the context of insider lending laws and regulations, such as those outlined in Regulation O and other relevant guidelines, an executive officer is generally defined not by a specific title, but by the role and authority the individual holds within the institution. The key aspect of being considered an executive officer under these regulations is the capacity to influence or participate in major policymaking functions of the bank. This includes but is not limited to areas such as lending practices, investment decisions, and overall strategic direction.