covered transaction

(7) the term “covered transaction” means with respect to an affiliate of a member bank— (A) a loan or extension of credit to the affiliate, including a purchase of assets subject to an agreement to repurchase; (B) a purchase of or an investment in securities issued by the affiliate; (C) a purchase of assets from the affiliate, except such purchase of real and personal property as may be specifically exempted by the Board by order or regulation; (D) the acceptance of securities or other debt obligations issued by the affiliate as collateral security for a loan or extension of credit to any person or company; (E) the issuance of a guarantee, acceptance, or letter of credit, including an endorsement or standby letter of credit, on behalf of an affiliate; (F) a transaction with an affiliate that involves the borrowing or lending of securities, to the extent that the transaction causes a member bank or a subsidiary to have credit exposure to the affiliate; or (G) a derivative transaction, as defined in paragraph (3) of section 84(b) of this title , with an affiliate, to the extent that the transaction causes a member bank or a subsidiary to have credit exposure to the affiliate;

Source

12 USC § 371c(b)(7)


Scoping language

For the purpose of this section
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