{"identifier":"/us/usc/t12/s375b","title":12,"num":"\u00a7\u202f375b.","heading":"Extensions of credit to executive officers, directors, and principal shareholders of member banks","text":"\u00a7\u202f375b.\nExtensions of credit to executive officers, directors, and principal shareholders of member banks\n(1)\nIn general\nNo member bank may extend credit to any of its executive officers, directors, or principal shareholders, or to any related interest of such a person, except to the extent permitted under paragraphs (2), (3), (4), (5), and (6).\n(2)\nPreferential terms prohibited\n(A)\nIn general\nA member bank may extend credit to its executive officers, directors, or principal shareholders, or to any related interest of such a person, only if the extension of credit\u2014\n(i) is made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions by the bank with persons who are not executive officers, directors, principal shareholders, or employees of the bank;\n(ii) does not involve more than the normal risk of repayment or present other unfavorable features; and\n(iii) the bank follows credit underwriting procedures that are not less stringent than those applicable to comparable transactions by the bank with persons who are not executive officers, directors, principal shareholders, or employees of the bank.\n(B)\nException\nNothing in this paragraph shall prohibit any extension of credit made pursuant to a benefit or compensation program\u2014\n(i) that is widely available to employees of the member bank; and\n(ii) that does not give preference to any officer, director, or principal shareholder of the member bank, or to any related interest of such person, over other employees of the member bank.\n(3)\nPrior approval required\nA member bank may extend credit to a person described in paragraph (1) in an amount that, when aggregated with the amount of all other outstanding extensions of credit by that bank to each such person and that person\u2019s related interests, would exceed an amount prescribed by regulation of the appropriate Federal banking agency (as defined in\n(A) the extension of credit has been approved in advance by a majority vote of that bank\u2019s entire board of directors; and\n(B) the interested party has abstained from participating, directly or indirectly, in the deliberations or voting on the extension of credit.\n(4)\nAggregate limit on extensions of credit to any executive officer, director, or principal shareholder\nA member bank may extend credit to any executive officer, director, or principal shareholder, or to any related interest of such a person, only if the extension of credit is in an amount that, when aggregated with the amount of all outstanding extensions of credit by that bank to that person and that person\u2019s related interests, would not exceed the limits on loans to a single borrower established by\nsection 84 of this title\nsection 84 of this title\n(5)\nAggregate limit on extensions of credit to all executive officers, directors, and principal shareholders\n(A)\nIn general\nA member bank may extend credit to any executive officer, director, or principal shareholder, or to any related interest of such a person, if the extension of credit is in an amount that, when aggregated with the amount of all outstanding extensions of credit by that bank to its executive officers, directors, principal shareholders, and those persons\u2019 related interests would not exceed the bank\u2019s unimpaired capital and unimpaired surplus.\n(B)\nMore stringent limit authorized\nThe Board may, by regulation, prescribe a limit that is more stringent than that contained in subparagraph (A).\n(C)\nBoard may make exceptions for certain banks\nThe Board may, by regulation, make exceptions to subparagraph (A) for member banks with less than $100,000,000 in deposits if the Board determines that the exceptions are important to avoid constricting the availability of credit in small communities or to attract directors to such banks. In no case may the aggregate amount of all outstanding extensions of credit to a bank\u2019s executive officers, directors, principal shareholders, and those persons\u2019 related interests be more than 2 times the bank\u2019s unimpaired capital and unimpaired surplus.\n(6)\nOverdrafts by executive officers and directors prohibited\n(A)\nIn general\nIf any executive officer or director has an account at the member bank, the bank may not pay on behalf of that person an amount exceeding the funds on deposit in the account.\n(B)\nExceptions\nSubparagraph (A) does not prohibit a member bank from paying funds in accordance with\u2014\n(i) a written preauthorized, interest-bearing extension of credit specifying a method of repayment; or\n(ii) a written preauthorized transfer of funds from another account of the executive officer or director at that bank.\n(7)\nProhibition on knowingly receiving unauthorized extension of credit\nNo executive officer, director, or principal shareholder shall knowingly receive (or knowingly permit any of that person\u2019s related interests to receive) from a member bank, directly or indirectly, any extension of credit not authorized under this section.\n(8)\nExecutive officer, director, or principal shareholder of certain affiliates treated as executive officer, director, or principal shareholder of member bank\n(A)\nIn general\nFor purposes of this section, any executive officer, director, or principal shareholder (as the case may be) of any company of which the member bank is a subsidiary, or of any other subsidiary of that company, shall be deemed to be an executive officer, director, or principal shareholder (as the case may be) of the member bank.\n(B)\nException\nThe Board may, by regulation, make exceptions to subparagraph (A) for any executive officer or director of a subsidiary of a company that controls the member bank if\u2014\n(i) the executive officer or director does not have authority to participate, and does not participate, in major policymaking functions of the member bank; and\n(ii) the assets of such subsidiary do not exceed 10 percent of the consolidated assets of a company that controls the member bank and such subsidiary (and is not controlled by any other company).\n(9)\nDefinitions\nFor purposes of this section:\n(A)\nCompany\n(i)\nIn general\nExcept as provided in clause (ii), the term \u201ccompany\u201d means any corporation, partnership, business or other trust, association, joint venture, pool syndicate, sole proprietorship, unincorporated organization, or other business entity.\n(ii)\nExceptions\nThe term \u201ccompany\u201d does not include\u2014\n(I) an insured depository institution (as defined in\nsection 1813 of this title\n(II) a corporation the majority of the shares of which are owned by the United States or by any State.\n(B)\nControl\nA person controls a company or bank if that person, directly or indirectly, or acting through or in concert with 1 or more persons\u2014\n(i) owns, controls, or has the power to vote 25 percent or more of any class of the company\u2019s voting securities;\n(ii) controls in any manner the election of a majority of the company\u2019s directors; or\n(iii) has the power to exercise a controlling influence over the company\u2019s management or policies.\n(C)\nExecutive officer\nA person is an \u201cexecutive officer\u201d of a company or bank if that person participates or has authority to participate (other than as a director) in major policymaking functions of the company or bank.\n(D)\nExtension of credit\n(i)\nIn general\nA member bank extends credit to a person by\u2014\n(I) making or renewing any loan, granting a line of credit, or entering into any similar transaction as a result of which the person becomes obligated (directly or indirectly, or by any means whatsoever) to pay money or its equivalent to the bank; or\n(II) having credit exposure to the person arising from a derivative transaction (as defined in\nsection 84(b) of this title\n(ii)\nExceptions\nThe Board may, by regulation, make exceptions to clause (i) for transactions that the Board determines pose minimal risk.\n(E)\nMember bank\nThe term \u201cmember bank\u201d includes any subsidiary of a member bank.\n(F)\nPrincipal shareholder\nThe term \u201cprincipal shareholder\u201d\u2014\n(i) means any person that directly or indirectly, or acting through or in concert with one or more persons, owns, controls, or has the power to vote more than 10 percent of any class of voting securities of a member bank or company; and\n(ii) does not include a company of which a member bank is a subsidiary.\n(G)\nRelated interest\nA \u201crelated interest\u201d of a person is\u2014\n(i) any company controlled by that person; and\n(ii) any political or campaign committee that is controlled by that person or the funds or services of which will benefit that person.\n(H)\nSubsidiary\nThe term \u201csubsidiary\u201d has the same meaning as in\nsection 1841 of this title\n(10)\nBoard\u2019s rulemaking authority\nThe Board of Governors of the Federal Reserve System may prescribe such regulations, including definitions of terms, as it determines to be necessary to effectuate the purposes and prevent evasions of this section.","url":"https://projectusc.org/usc/t12/s375b.html","content":[{"t":"sec","id":"/us/usc/t12/s375b","children":[{"t":"num","text":"\u00a7\u202f375b."},{"t":"heading","text":"Extensions of credit to executive officers, directors, and principal shareholders of member banks"},{"t":"para","id":"/us/usc/t12/s375b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"No member bank may extend credit to any of its executive officers, directors, or principal shareholders, or to any related interest of such a person, except to the extent permitted under paragraphs (2), (3), (4), (5), and (6).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s375b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Preferential terms prohibited"},{"t":"subpara","id":"/us/usc/t12/s375b/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"A member bank may extend credit to its executive officers, directors, or principal shareholders, or to any related interest of such a person, only if the extension of credit\u2014"},{"t":"clause","id":"/us/usc/t12/s375b/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" is made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions by the bank with persons who are not executive officers, directors, principal shareholders, or employees of the bank;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s375b/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" does not involve more than the normal risk of repayment or present other unfavorable features; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s375b/2/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" the bank follows credit underwriting procedures that are not less stringent than those applicable to comparable transactions by the bank with persons who are not executive officers, directors, principal shareholders, or employees of the bank.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Exception"},{"t":"chapeau","text":"Nothing in this paragraph shall prohibit any extension of credit made pursuant to a benefit or compensation program\u2014"},{"t":"clause","id":"/us/usc/t12/s375b/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" that is widely available to employees of the member bank; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s375b/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" that does not give preference to any officer, director, or principal shareholder of the member bank, or to any related interest of such person, over other employees of the member bank.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s375b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Prior approval required"},{"t":"chapeau","text":"A member bank may extend credit to a person described in paragraph (1) in an amount that, when aggregated with the amount of all other outstanding extensions of credit by that bank to each such person and that person\u2019s related interests, would exceed an amount prescribed by regulation of the appropriate Federal banking agency (as defined in ","children":[{"t":"ref","text":"section 1813 of this title","href":"/us/usc/t12/s1813","tail":") only if\u2014"}]},{"t":"subpara","id":"/us/usc/t12/s375b/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the extension of credit has been approved in advance by a majority vote of that bank\u2019s entire board of directors; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the interested party has abstained from participating, directly or indirectly, in the deliberations or voting on the extension of credit.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s375b/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Aggregate limit on extensions of credit to any executive officer, director, or principal shareholder"},{"t":"content","children":[{"t":"p","text":"A member bank may extend credit to any executive officer, director, or principal shareholder, or to any related interest of such a person, only if the extension of credit is in an amount that, when aggregated with the amount of all outstanding extensions of credit by that bank to that person and that person\u2019s related interests, would not exceed the limits on loans to a single borrower established by ","children":[{"t":"ref","text":"section 84 of this title","href":"/us/usc/t12/s84","tail":". For purposes of this paragraph, "},{"t":"ref","text":"section 84 of this title","href":"/us/usc/t12/s84","tail":" shall be deemed to apply to a State member bank as if the State member bank were a national banking association."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s375b/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Aggregate limit on extensions of credit to all executive officers, directors, and principal shareholders"},{"t":"subpara","id":"/us/usc/t12/s375b/5/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"A member bank may extend credit to any executive officer, director, or principal shareholder, or to any related interest of such a person, if the extension of credit is in an amount that, when aggregated with the amount of all outstanding extensions of credit by that bank to its executive officers, directors, principal shareholders, and those persons\u2019 related interests would not exceed the bank\u2019s unimpaired capital and unimpaired surplus.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/5/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"More stringent limit authorized"},{"t":"content","children":[{"t":"p","text":"The Board may, by regulation, prescribe a limit that is more stringent than that contained in subparagraph (A).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/5/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Board may make exceptions for certain banks"},{"t":"content","children":[{"t":"p","text":"The Board may, by regulation, make exceptions to subparagraph (A) for member banks with less than $100,000,000 in deposits if the Board determines that the exceptions are important to avoid constricting the availability of credit in small communities or to attract directors to such banks. In no case may the aggregate amount of all outstanding extensions of credit to a bank\u2019s executive officers, directors, principal shareholders, and those persons\u2019 related interests be more than 2 times the bank\u2019s unimpaired capital and unimpaired surplus.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s375b/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Overdrafts by executive officers and directors prohibited"},{"t":"subpara","id":"/us/usc/t12/s375b/6/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"If any executive officer or director has an account at the member bank, the bank may not pay on behalf of that person an amount exceeding the funds on deposit in the account.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/6/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Exceptions"},{"t":"chapeau","text":"Subparagraph (A) does not prohibit a member bank from paying funds in accordance with\u2014"},{"t":"clause","id":"/us/usc/t12/s375b/6/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" a written preauthorized, interest-bearing extension of credit specifying a method of repayment; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s375b/6/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" a written preauthorized transfer of funds from another account of the executive officer or director at that bank.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s375b/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Prohibition on knowingly receiving unauthorized extension of credit"},{"t":"content","children":[{"t":"p","text":"No executive officer, director, or principal shareholder shall knowingly receive (or knowingly permit any of that person\u2019s related interests to receive) from a member bank, directly or indirectly, any extension of credit not authorized under this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s375b/8","children":[{"t":"num","text":"(8)"},{"t":"heading","text":"Executive officer, director, or principal shareholder of certain affiliates treated as executive officer, director, or principal shareholder of member bank"},{"t":"subpara","id":"/us/usc/t12/s375b/8/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"For purposes of this section, any executive officer, director, or principal shareholder (as the case may be) of any company of which the member bank is a subsidiary, or of any other subsidiary of that company, shall be deemed to be an executive officer, director, or principal shareholder (as the case may be) of the member bank.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/8/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Exception"},{"t":"chapeau","text":"The Board may, by regulation, make exceptions to subparagraph (A) for any executive officer or director of a subsidiary of a company that controls the member bank if\u2014"},{"t":"clause","id":"/us/usc/t12/s375b/8/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the executive officer or director does not have authority to participate, and does not participate, in major policymaking functions of the member bank; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s375b/8/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the assets of such subsidiary do not exceed 10 percent of the consolidated assets of a company that controls the member bank and such subsidiary (and is not controlled by any other company).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s375b/9","children":[{"t":"num","text":"(9)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"For purposes of this section:"},{"t":"subpara","id":"/us/usc/t12/s375b/9/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Company"},{"t":"clause","id":"/us/usc/t12/s375b/9/A/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Except as provided in clause (ii), the term \u201ccompany\u201d means any corporation, partnership, business or other trust, association, joint venture, pool syndicate, sole proprietorship, unincorporated organization, or other business entity.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s375b/9/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Exceptions"},{"t":"chapeau","text":"The term \u201ccompany\u201d does not include\u2014"},{"t":"subclause","id":"/us/usc/t12/s375b/9/A/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" an insured depository institution (as defined in ","children":[{"t":"ref","text":"section 1813 of this title","href":"/us/usc/t12/s1813","tail":"); or"}],"tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s375b/9/A/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" a corporation the majority of the shares of which are owned by the United States or by any State.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/9/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Control"},{"t":"chapeau","text":"A person controls a company or bank if that person, directly or indirectly, or acting through or in concert with 1 or more persons\u2014"},{"t":"clause","id":"/us/usc/t12/s375b/9/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" owns, controls, or has the power to vote 25 percent or more of any class of the company\u2019s voting securities;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s375b/9/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" controls in any manner the election of a majority of the company\u2019s directors; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s375b/9/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" has the power to exercise a controlling influence over the company\u2019s management or policies.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/9/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Executive officer"},{"t":"content","children":[{"t":"p","text":"A person is an \u201cexecutive officer\u201d of a company or bank if that person participates or has authority to participate (other than as a director) in major policymaking functions of the company or bank.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/9/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Extension of credit"},{"t":"clause","id":"/us/usc/t12/s375b/9/D/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"A member bank extends credit to a person by\u2014"},{"t":"subclause","id":"/us/usc/t12/s375b/9/D/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" making or renewing any loan, granting a line of credit, or entering into any similar transaction as a result of which the person becomes obligated (directly or indirectly, or by any means whatsoever) to pay money or its equivalent to the bank; or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s375b/9/D/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" having credit exposure to the person arising from a derivative transaction (as defined in ","children":[{"t":"ref","text":"section 84(b) of this title","href":"/us/usc/t12/s84/b","tail":"), repurchase agreement, reverse repurchase agreement, securities lending transaction, or securities borrowing transaction between the member bank and the person."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s375b/9/D/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Exceptions"},{"t":"content","children":[{"t":"p","text":"The Board may, by regulation, make exceptions to clause (i) for transactions that the Board determines pose minimal risk.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/9/E","children":[{"t":"num","text":"(E)"},{"t":"heading","text":"Member bank"},{"t":"content","children":[{"t":"p","text":"The term \u201cmember bank\u201d includes any subsidiary of a member bank.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/9/F","children":[{"t":"num","text":"(F)"},{"t":"heading","text":"Principal shareholder"},{"t":"chapeau","text":"The term \u201cprincipal shareholder\u201d\u2014"},{"t":"clause","id":"/us/usc/t12/s375b/9/F/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" means any person that directly or indirectly, or acting through or in concert with one or more persons, owns, controls, or has the power to vote more than 10 percent of any class of voting securities of a member bank or company; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s375b/9/F/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" does not include a company of which a member bank is a subsidiary.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/9/G","children":[{"t":"num","text":"(G)"},{"t":"heading","text":"Related interest"},{"t":"chapeau","text":"A \u201crelated interest\u201d of a person is\u2014"},{"t":"clause","id":"/us/usc/t12/s375b/9/G/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" any company controlled by that person; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s375b/9/G/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" any political or campaign committee that is controlled by that person or the funds or services of which will benefit that person.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s375b/9/H","children":[{"t":"num","text":"(H)"},{"t":"heading","text":"Subsidiary"},{"t":"content","children":[{"t":"p","text":"The term \u201csubsidiary\u201d has the same meaning as in ","children":[{"t":"ref","text":"section 1841 of this title","href":"/us/usc/t12/s1841","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s375b/10","children":[{"t":"num","text":"(10)"},{"t":"heading","text":"Board\u2019s rulemaking authority"},{"t":"content","children":[{"t":"p","text":"The Board of Governors of the Federal Reserve System may prescribe such regulations, including definitions of terms, as it determines to be necessary to effectuate the purposes and prevent evasions of this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}