Regulations last checked for updates: May 18, 2024

Title 12 - Banks and Banking last revised: May 14, 2024
§ 2.4 - Bonus and incentive plans.

A bank employee or officer may participate in a bonus or incentive plan based on the sale of credit life insurance if payments to the employee or officer in any one year do not exceed the greater of:

(a) Five percent of the recipient's annual salary; or

(b) Five percent of the average salary of all loan officers participating in the plan.

authority: 12 U.S.C. 24 (Seventh), 93a, and 1818(n)
source: 61 FR 51781, Oct. 4, 1996, unless otherwise noted.
cite as: 12 CFR 2.4