{"identifier":"/us/usc/t15/s9054","title":15,"num":"\u00a7\u202f9054.","heading":"Conflicts of interest","text":"\u00a7\u202f9054.\nConflicts of interest\n(a)\nDefinitions\nIn this section:\n(1)\nControlling interest\nThe term \u201ccontrolling interest\u201d means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity.\n(2)\nCovered entity\nThe term \u201ccovered entity\u201d means an entity in which a covered individual directly or indirectly holds a controlling interest. For the purpose of determining whether an entity is a covered entity, the securities owned, controlled, or held by 2 or more individuals who are related as described in paragraph (3)(B) shall be aggregated.\n(3)\nCovered individual\nThe term \u201ccovered individual\u201d means\u2014\n(A) the President, the Vice President, the head of an Executive department, or a Member of Congress; and\n(B) the spouse, child, son-in-law, or daughter-in-law, as determined under applicable common law, of an individual described in subparagraph (A).\n(4)\nExecutive department\nThe term \u201cExecutive department\u201d has the meaning given the term in\nsection 101 of title 5\n(5)\nMember of Congress\nThe term \u201cmember of Congress\u201d means a member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico.\n(6)\nEquity interest\nThe term \u201cequity interest\u201d means\u2014\n(A) a share in an entity, without regard to whether the share is\u2014\n(i) transferable; or\n(ii) classified as stock or anything similar;\n(B) a capital or profit interest in a limited liability company or partnership; or\n(C) a warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share or interest described in subparagraph (A) or (B), respectively.\n(b)\nProhibition\nNotwithstanding any other provision of this part, no covered entity may be eligible for any transaction described in\nsection 9042 of this title\n(c)\nRequirement\nThe principal executive officer and the principal financial officer, or individuals performing similar functions, of an entity seeking to enter a transaction under\nsection 9042 of this title","url":"https://projectusc.org/usc/t15/s9054.html","content":[{"t":"sec","id":"/us/usc/t15/s9054","children":[{"t":"num","text":"\u00a7\u202f9054."},{"t":"heading","text":"Conflicts of interest"},{"t":"subsec","id":"/us/usc/t15/s9054/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"In this section:"},{"t":"para","id":"/us/usc/t15/s9054/a/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Controlling interest"},{"t":"content","children":[{"t":"p","text":"The term \u201ccontrolling interest\u201d means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s9054/a/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Covered entity"},{"t":"content","children":[{"t":"p","text":"The term \u201ccovered entity\u201d means an entity in which a covered individual directly or indirectly holds a controlling interest. For the purpose of determining whether an entity is a covered entity, the securities owned, controlled, or held by 2 or more individuals who are related as described in paragraph (3)(B) shall be aggregated.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s9054/a/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Covered individual"},{"t":"chapeau","text":"The term \u201ccovered individual\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t15/s9054/a/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the President, the Vice President, the head of an Executive department, or a Member of Congress; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s9054/a/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the spouse, child, son-in-law, or daughter-in-law, as determined under applicable common law, of an individual described in subparagraph (A).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s9054/a/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Executive department"},{"t":"content","children":[{"t":"p","text":"The term \u201cExecutive department\u201d has the meaning given the term in ","children":[{"t":"ref","text":"section 101 of title 5","href":"/us/usc/t5/s101","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s9054/a/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Member of Congress"},{"t":"content","children":[{"t":"p","text":"The term \u201cmember of Congress\u201d means a member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s9054/a/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Equity interest"},{"t":"chapeau","text":"The term \u201cequity interest\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t15/s9054/a/6/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" a share in an entity, without regard to whether the share is\u2014"},{"t":"clause","id":"/us/usc/t15/s9054/a/6/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" transferable; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s9054/a/6/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" classified as stock or anything similar;","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s9054/a/6/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" a capital or profit interest in a limited liability company or partnership; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s9054/a/6/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" a warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share or interest described in subparagraph (A) or (B), respectively.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s9054/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Prohibition"},{"t":"content","children":[{"t":"p","text":"Notwithstanding any other provision of this part, no covered entity may be eligible for any transaction described in ","children":[{"t":"ref","text":"section 9042 of this title","href":"/us/usc/t15/s9042","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s9054/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Requirement"},{"t":"content","children":[{"t":"p","text":"The principal executive officer and the principal financial officer, or individuals performing similar functions, of an entity seeking to enter a transaction under ","children":[{"t":"ref","text":"section 9042 of this title","href":"/us/usc/t15/s9042","tail":" shall, before that transaction is approved, certify to the Secretary and the Board of Governors of the Federal Reserve System that the entity is eligible to engage in that transaction, including that the entity is not a covered entity."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}