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Bank Holding Company Loan to ESOP


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Thanks for reply. Yes, I know the proposed loan is permissible under IRC/ERISA. I’m questioning under banking regulations. It’s my understanding that the bank cannot make the exempt loan to the ESOP but that the bank holding company can. Hoping someone with more knowledge can confirm or correct my understanding. Thanks. 

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  • 1 month later...

I can't give you a banking regulation, but I can tell you that I have worked on dozens on ESOPs in bank holding company structures in many states and they all had the loan from the holding company.  Makes for weird financial reporting but that is another story.

 

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