First National Bank has an employee benefit program whereby all bank employees who meet the bank's credit underwriting standards may obtain consumer loans for major purchases or expenses at a rate that is less than the bank's prime rate. Can the bank allow its executive officers to borrow under this program?

Question

Quizplus · Accepted Answer

As long as the program is available to everyone at the bank as an employee benefit, executive officers may also participate. This is because the benefit program is available to all bank employees who meet the credit underwriting standards, regardless of their position in the bank. However, it's important to note that the executive officers must still meet the underwriting standards and are not allowed to have preferential interest rates under any circumstances.

First National Bank Has an Employee Benefit Program Whereby All