(a) Authority. This part is issued pursuant to sections 11(a), 22(g), and 22(h) of the
Federal Reserve Act (12 U.S.C. 248(a), 375a, and 375b), 12 U.S.C. 1817(k), and section 306 of
the Federal Deposit Insurance Corporation Improvement Act of 1991 (Pub. L. 102–242, 105
Stat. 2236 (1991))
(b) Purpose and scope. —(1) This part governs any extension of credit made by a member
bank to an executive officer, director, or principal shareholder of the member bank, of any
company of which the member bank is a subsidiary, and of any other subsidiary of that company.
(2) This part also applies to any extension of credit made by a member bank to a
company controlled by such a person, or to a political or campaign committee that benefits or is
controlled by such a person.
(3) This part also implements the reporting requirements of 12 U.S.C. 1817(k)
concerning extensions of credit by a member bank to its executive officers or principal
shareholders (or to the related interests of such persons).
(4) Extensions of credit made to an executive officer, director, or principal shareholder of
a bank (or to a related interest of such person) by a correspondent bank also are subject to
restrictions set forth in 12 U.S.C. 1972(2).
Revised by interim rule issued by FRB eff. 12/11/2006
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