Loans to a bank's officers,extended for purposes other than purchase of a home or funding education and those that are not fully backed by government securities,cannot exceed 2.5 percent of the bank's capital and unimpaired surplus or $25,000 whichever is larger but cannot exceed $100,000.

Question

Quizplus · Accepted Answer

This statement is true according to Section 22(h) of the Federal Reserve Act.

Loans to a Bank's Officers,extended for Purposes Other Than Purchase