Table of Contents
What is considered a bank affiliate?
Bank Affiliate means a Person engaged primarily in the business of commercial banking and that is a Subsidiary of a Bank or of a Person of which a Bank is a Subsidiary.
What is a 23A affiliate?
For the purpose of this section– the term “affiliate” with respect to a member bank means– any company that controls the member bank and any other company that is controlled by the company that controls the member bank; a bank subsidiary of the member bank; any company–
At what point must a transaction with a non affiliate that later becomes an affiliate be treated as a covered transaction?
(i) In general. A credit transaction with a nonaffiliate becomes a covered transaction at the time that the nonaffiliate becomes an affiliate of the member bank.
Is a bank holding company an affiliate?
A holding company wholly owning a bank is an affiliate of that bank. An example of common control would be if two people owned a combined 25 percent of the holding company and a combined 25 percent of a furniture store. The holding company and the furniture store would both be affiliates of that bank.
What are considered affiliates based on Regulation W?
Any company that controls the member bank; (2) Companies under common control by a parent company. Any company, including any subsidiary of the member bank, that is controlled by a company that controls the member bank; (3) Companies under other common control.
What is a regulated affiliate?
Regulated Affiliate means a Foreign Shell Bank that is an affiliate of a depository institution, credit union or Foreign Bank that maintains a Physical Presence in the U.S. or a foreign country regulating such affiliated depository institution, credit union or Foreign Bank.
What is an affiliate transaction?
Affiliated Transaction means any proposed merger or consolidation with, purchase of an equity interest in, or purchase of assets other than in the ordinary course of business from an Affiliate.
What makes someone an affiliate?
An affiliated person is someone in a position to influence the actions of a corporation. This includes directors, officers, and certain shareholders. Depending on the context, an affiliated person might be referred to simply as an “affiliate.” Affiliated persons may also be called control persons or insiders.
What is an affiliated transaction?
Related Definitions Affiliated Transaction means any proposed merger or consolidation with, purchase of an equity interest in, or purchase of assets other than in the ordinary course of business from an Affiliate.
Is a general partner an affiliate?
General Partner Affiliate means the General Partner and each person which is a parent, shareholder, subsidiary, officer, director, employee or agent of the General Partner and each person, directly or indirectly, controlled by, under common control with, or controlling the General Partner.
What does it mean to be affiliated with a financial institution?
Affiliated Bank or “affiliated” shall mean that the banks are under common ownership, direction, or control.
What does it mean to be someone’s affiliate?
An affiliate is defined as a person who is in some way connected to another person or organization. An example of an affiliate would be a journalist for a newspaper. noun. 2. An affiliated individual or organization; member.
What does being an affiliate mean?
Affiliate marketing involves referring a product or service by sharing it on a blog, social media platform, podcast, or website. The affiliate earns a commission each time someone makes a purchase through the unique link associated with their recommendation.
Which regulation covers transactions between a depository institution and its affiliates?
Regulation W
Regulation W is a U.S. Federal Reserve System (FRS) regulation that limits certain transactions between depository institutions, such as banks and their affiliates. In particular, it sets quantitative limits on covered transactions and requires collateral for certain transactions.
Does the FDIC regulate bank affiliates?
The FDIC directly supervises and examines more than 5,000 banks and savings associations for operational safety and soundness.
Are subsidiaries are always considered affiliates?
If a parent company owns 100 percent of another company’s stock, the junior company is considered a wholly owned subsidiary. A subsidiary is always an affiliate; however an affiliate is not always a subsidiary.
What is a transaction with an affiliate of a bank?
For the purpose of this subsection, any transaction by a member bank or its subsidiary with any person shall be deemed to be a transaction with an affiliate of such bank if any of the proceeds of the transaction are used for the benefit of, or transferred to, such affiliate. (b) Prohibited Transactions. In General. A member bank or its subsidiary–
What are the restrictions on transactions with affiliates?
(a) Restrictions On Transactions With Affiliates. in the case of any affiliate, the aggregate amount of covered transactions of the member bank and its subsidiaries will not exceed 10 per centum of the capital stock and surplus of the member bank; and
What is the aggregate amount of Covered Transactions of affiliates?
in the case of all affiliates, the aggregate amount of covered transactions of the member bank and its subsidiaries will not exceed 20 per centum of the capital stock and surplus of the member bank.
What is a partnership between a member bank and an affiliate?
Any partnership for which the member bank or any affiliate of the member bank serves as a general partner or for which the member bank or any affiliate of the member bank causes any director, officer, or employee of the member bank or affiliate to serve as a general partner; (11)Subsidiaries of affiliates.