Certified Regulatory Compliance Manager (CRCM) — Question 122

What is the longest time after board approval that a bank can approve a line of credit for an executive officer?

Answer options

• A. 12 months of such approval
• B. 9 months of such approval
• C. 14 months of such approval
• D. 6 months of such approval

Correct answer: C

Explanation

The correct answer is C, as regulations stipulate that a bank has 14 months following board approval to grant a line of credit to an executive officer. Options A, B, and D are incorrect because they provide durations that are shorter than the regulatory maximum of 14 months.