Page:United States Statutes at Large Volume 101 Part 1.djvu/594

 101 STAT. 564

PUBLIC LAW 100-86—AUG. 10, 1987

other disposition described in subparagraph (A)) of such person's intention to operate such institution as an institution described in section 2(c)(2)(F) of the Bank Holding '*^''^ Company Act of 1956, as in effect after the enactment of this title is filed with the Board before the end of the 7-day period beginning on the later of the date of such transfer (or other disposition) or the date of the enactment of this title; and (C) the operation of such institution as an institution described in such section 2(c)(2)(F) begins before the end of the 180-day period beginning on the date the transfer (or other disposition) described in subparagraph (A) is completed. (3) CoNTROLUNG INTEREST.—For purposes of this subsection, a person has a controlling interest in any institution if such person controls— (A) such institution; or (B) any company which controls such institution, as determined in accordance with the provisions of subsections (b) and (g) of section 2 of the Bank Holding Company Act of

Ante, p. 554.

1956.

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SEC. 102. AMENDMENTS TO THE FEDERAL RESERVE ACT.

(a) IN GENERAL.—The Federal Reserve Act is amended by inserting after section 23A the following: ' ^^

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12 USC 371C-1.

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"RESTRICTIONS ON TRANSACTIONS WITH AFFILIATES

23B. (a) IN GENERAL.— "(1) TERMS.—A member bank and its subsidiaries may engage in any of the transactions described in paragraph (2) only— "(A) on terms and under circumstances, including credit V- •• standards, that are substantially the same, or at least as favorable to such bank or its subsidiary, as those prevailing at the time for comparable transactions with or involving other nonaffiliated companies, or "(B) in the absence of comparable transactions, on terms ^ and under circumstances, including credit standards, that in good faith would be offered to, or would apply to, nonaffiliated companies. "SEC.

"(2) TRANSACTIONS COVERED.—Paragraph (1) applies to

the

following: "(A) Any covered transaction with an affiliate. "(B) The sale of securities or other assets to an affiliate, aifff including assets subject to an agreement to repurchase. 'A "(C) The payment of money or the furnishing of services to an affiliate under contract, lease, or otherwise. "(D) Any transaction in which an affiliate acts as an agent or broker or receives a fee for its services to the bank or to any other person. "(E) Any transaction or series of transactions with a third party— "(i) if an affiliate has a financial interest in the third party, or i:.; I'Tf ^: "(ii) if an affiliate is a participant in such transaction ^^' *•or series of transactions.

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