Page:United States Statutes at Large Volume 92 Part 3.djvu/1013

 PUBLIC LAW 95-630—NOV. 10, 1978 company controlled by such executive officer, director, or person, or to any political or campaign committee the funds or services of which will benefit such executive officer, director, or person or which is controlled by such executive officer, direx;tor, or person, unless such loan or extension of credit is made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and does not involve more than the normal risk of repayment or present other unfavorable features. "(4) No member bank may pay an overdraft on an account at such bank of an executive officer or director. "(5) For purposes of this subsection, an executive officer, director, or person shall be considered to have control of a company if such executive officer, director, or person, directly or indirectly or acting through or in concert with one or more other persons— "(A) owns, controls, or has power to vote 25 per centum or more of any class of voting securities of the company; "(B) controls in any manner the election of a majority of the directors of the company; or "(C) has the power to exercise a controlling influence over the management or policies of such company. " (6) For the purposes of this subsection— "(A) the term 'person' means an individual or company; "(B) the term 'company' means any corporation, partnership, business trust, association, joint venture, pool syndicate, sole proprietorship, unincorporated organization, any other form of business entity not specifically listed herein, or any other trust, but shall not include any insured bank or any corporation the majority of shares of which is owned by the United States or by any State; "(C) the term 'extension of credit' has the same meaning assigned such term in the fourth paragraph of section 23A of this Act; "(D) a person shall be deemed to be a 'director' of a member bank or a 'person who directly or indirectly or acting through or in concert with one or more persons owns, controls, or has power to vote more than 10 per centum of any class of voting securities of a member bank' if such person has such relationship with any bank holding company of which such member is a subsidiary, as defined by the Bank Holding Company Act (12 U.S.C. 1841), or with any other subsidiary of such bank holding company; " (E) a person shall be deemed to be an 'officer' of a member bank if such person is an officer of any bank holding company of which such member bank is a subsidiary, as defined by the Bank Holding Company Act (12 U.S.C. 1841), or with any other subsidiary of such bank holding company; " (F) the term 'executive officer' has the same meaning, assigned such term under section 22(g) of this Act; and "(G) the term 'pay an overdraft on an account' means the payment by a member bank of an amount for an account holder m excess of the funds on deposit in the account and does not include a payment of funds by the member bank in accordance with either a written preauthorized, interest-bearing extension of credit specifying a method of repayment or a written preauthorized transfer of funds from another account of the account holder at that bank. "(7) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems necessary to effectuate the purposes and to prevent evasions of

92 STAT. 3645

Overdrafts,

Definitions.

12 USC 371c.

12 USC 375a.

Rules and regulations,

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