Insider Loan

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Insider Loan

A loan in which the borrower is a corporation and the lender is one of its corporate officers, stockholders, or members of the board of directors. With sufficient documentation, an insider loan may be tax deductible; otherwise, it may be classified as paid-in capital and repayment subject to taxation.
References in periodicals archive ?
The International Union of Operating Engineers (IUOE) has announced that the Bank of Florida Corporation (NasdaqGM: BOFL) has the highest number of insider loans in Florida.
6 million of loans to insiders reported in Sovereign's September 30, 2005 Thrift Financial Report and aggregate insider loans of $51.
Although the Sarbanes-Oxley law does make illegal some activities that that many consider unethical, such as insider loans and certain document destruction practices, the new law and the subsequent avalanche of rules it has spawned are less concerned with ethics than with the quality of the disclosure process.
Other variables such as unit costs and insider loans are shown to be good predictors of the M rating as well.
Investigators determined that 13 stockholders received more than $612 million in insider loans.
Tycos of the world that will eat huge losses on insider loans.
The amount of insider loans would also be expected to display a negative coefficient because a higher proportion of insider loans may indicate closely held or family owned institutions which tend to be smaller and more conservative than other banks.
In June 1992, OTS charged the Barbieris, Corpaci, three other former Security officials and a former counsel to Security with acts of fraud and hiding insider loans and other misconduct at Security.
WASHINGTON, June 24 /PRNewswire/ -- Citing acts of fraud, hiding insider loans and other misconduct, the Office of Thrift Supervision (OTS) has initiated enforcement action against seven former officials and advisers of Security Savings and Loan Association, Waterbury, Conn.
It said Spagnoletti found evidence of insider loans for overvalued properties, big money mortgages supported by collateral that did not exist, and payments for services never rendered.
In addition, the financial services firm was also burdened by non-performing insider loans.