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Free CRCM Exam Braindumps
CERTIFIED REGULATORY COMPLIANCE MANAGER (CRCM) Questions 128–129 (page: 78)

Updated On: 9-Feb-2026
Page 78 of 276
PDF with 463 Questions

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?

  1. No. Executive officers may not have preferential interest rates under any circumstances.
  2. No. However, the related interests of the executive officers may take advantage of it.
  3. Yes. However, executive officers must secure their loans with collateral valued at 100 percent of the loan balance or more.
  4. Yes. Provided the program is available to everyone at the bank as an employee benefit, executive officers may also participate.

Answer(s): D



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?

  1. No. Executive officers may not have preferential interest rates under any circumstances.
  2. No. However, the related interests of the executive officers may take advantage of it.
  3. Yes. However, executive officers must secure their loans with collateral valued at 100 percent of the loan balance or more.
  4. Yes. Provided the program is available to everyone at the bank as an employee benefit, executive officers may also participate.

Answer(s): D



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?

  1. No. Executive officers may not have preferential interest rates under any circumstances.
  2. No. However, the related interests of the executive officers may take advantage of it.
  3. Yes. However, executive officers must secure their loans with collateral valued at 100 percent of the loan balance or more.
  4. Yes. Provided the program is available to everyone at the bank as an employee benefit, executive officers may also participate.

Answer(s): D



Which of the following is true regarding extensions of credit to executive officers, directors, and principal shareholders?

  1. Must be approved in advance by the board of directors if the aggregate credit is more than the greater of either $25,000 or 5 percent of the bank's capital and surplus, not exceeding $500,000
  2. Must be approved in advance by the board of directors if the credit is greater than $50,000 or 5 percent of the bank's capital and surplus
  3. May not exceed $100,000 in the aggregate, regardless of approvals
  4. May not exceed $250,000 in the aggregate, regardless of approvals

Answer(s): A



Which of the following is true regarding extensions of credit to executive officers, directors, and principal shareholders?

  1. Must be approved in advance by the board of directors if the aggregate credit is more than the greater of either $25,000 or 5 percent of the bank's capital and surplus, not exceeding $500,000
  2. Must be approved in advance by the board of directors if the credit is greater than $50,000 or 5 percent of the bank's capital and surplus
  3. May not exceed $100,000 in the aggregate, regardless of approvals
  4. May not exceed $250,000 in the aggregate, regardless of approvals

Answer(s): A



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