12 C.F.R. § 221.123

Current through September 30, 2024
Section 221.123 - Combined credit for exercising employee stock options and paying income taxes incurred as a result of such exercise
(a) Section 221.4(a) and (b) , which provides special treatment for credit extended under employee stock option plans, was designed to encourage their use in recognition of their value in giving an employee a proprietary interest in the business. Taking a position that might discourage the exercise of options because of tax complications would conflict with the purpose of § 221.4(a) and (b) .
(b) Accordingly, the Board has concluded that the combined loans for the exercise of the option and the payment of the taxes in connection therewith under plans complying with § 221.4(a)(2) may be regarded as purpose credit within the meaning of § 221.2 .

12 C.F.R. §221.123