Federal Reserve Regulation O, which is the broadest regulation relating to insider transactions and is applicable to both state and national banks, establishes the statutory requirements for extensions of credit to bank insiders, including limitations on the amount and type of credit, as well as reporting requirements. For the purposes of Regulation O, "insiders" is generally defined as executive officers, directors, principal shareholders, and their related interests. Consequently, employees and non-executive officers of national banks are exempt from the requirements of the regulation. Instead, extensions of credit to these individuals are generally governed by the national bank's internal policies and procedures. Pursuant to T.C.A. Section 45-2-601 as well as to help promote consistency between state and national banks, the department is interpreting the provisions of T.C.A. Section 45-2-1103, to no longer apply to extensions of credit to employees and non-executive officers. Nevertheless, management should continue to monitor extensions of credit to these individuals through internal policies and procedures. For the purposes of this Bulletin,"executive officer" is defined to mean the same as that outlined in Regulation O. This Bulletin takes effect immediately. If you have any questions regarding this Bulletin, please contact either Assistant Commissioner Derek Carrier or Chief Administrator Jim Douthit at (615) 741-6013.