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