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#355236 - 05/04/05 01:06 PM Reg W Covered Transaction
JoAnne Offline
Platinum Poster
Joined: Feb 2001
Posts: 795
Michigan
I have been reading everything I can get my hands on regarding Reg W and I am more confused than ever. Would a partcipation loan between Bank A and Bank B (affiliates) be a covered transaction under Reg W?
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Audit
#355237 - 05/04/05 01:30 PM Re: Reg W Covered Transaction
Jokerman Offline
10K Club
Joined: Nov 2003
Posts: 12,846
From my notes - A “covered transaction” is:

1. a loan or extension of credit to an affiliate

2. a purchase of or an investment in securities issued by an affiliate

3. a purchase of assets from an affiliate, including assets subject to an agreement to repurchase from the affiliate, except for purchases of real and personal property as may be specifically exempted by the Board by order or regulation

4. the acceptance of securities issued by an affiliate as collateral for a loan to any person or company (such an acceptance is prohibited if a loan is to an affiliate)

5. the issuance of a guarantee, acceptance, or letter of credit, including an endorsement or standby letter of credit, on behalf of an affiliate

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#355238 - 05/04/05 04:11 PM Re: Reg W Covered Transaction
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
"Sister" banks are exempt from many of the restrictions. They are subject to the safety and soundness considerations.

Exemption
Last edited by kaybee; 05/04/05 04:49 PM.
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Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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