§ 347.102. Definitions.
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/us/cfr/t12/s§ 347.102·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
For the purposes of this subpart:
(a)An affiliate of an insured state nonmember bank means:
(1)Any entity of which the insured state nonmember bank is a direct or indirect subsidiary or which otherwise controls the insured state nonmember bank;
(2)Any organization which is a direct or indirect subsidiary of such entity or which is otherwise controlled by such entity; or
(3)Any other organization that is a direct or indirect subsidiary of the insured state nonmember bank or is otherwise controlled by the insured state nonmember bank.
(b)Control means the ability to control in any manner the election of a majority of an organization's directors or trustees; or the ability to exercise a controlling influence over the management and policies of an organization. An insured state nonmember bank is deemed to control an organization of which it is a general partner or its affiliate is a general partner.
(c)Domestic means United States.
(d)Eligible insured state nonmember bank means an eligible depository institution as defined in § 303.2(r) of this chapter.
(e)Equity interest means any ownership interest or rights in an organization, whether through an equity security, contribution to capital, general or limited partnership interest, debt or warrants convertible into ownership interests or rights, loans providing profit participation, binding commitments to acquire any such items, or some other form of business transaction.
(f)Equity security means voting or nonvoting shares, stock, investment contracts, or other interests representing ownership or participation in a company or similar enterprise, as well as any instrument convertible to any such interest at the option of the holder without payment of substantial additional consideration.
(g)FRB means the Board of Governors of the Federal Reserve System.
(h)Foreign bank means an organization that is organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands that:
(1)Is recognized as a bank by the bank supervisory or monetary authority of the country of its organization or the country in which its principal banking operations are located;
(2)Receives deposits to a substantial extent in the regular course of its business; and
(3)Has the power to accept demand deposits.
(i)Foreign banking organization means a foreign organization that is formed for the sole purpose of either holding shares of a foreign bank or performing nominee, fiduciary, or other banking services incidental to the activities of a foreign branch or foreign bank affiliate of the insured state nonmember bank.
(j)Foreign branch means an office or place of business located outside the United States, its territories, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, or the Virgin Islands, at which banking operations are conducted, but does not include a representative office.
(k)Foreign country means any country other than the United States and includes any territory, dependency, or possession of any such country or of the United States.
(l)Foreign organization means an organization that is organized under the laws of a foreign country.
(m)Insured state nonmember bank or bank means a state bank, as defined by § 3(a)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1813(a)(2)), whose deposits are insured by the FDIC and that is not a member of the Federal Reserve System.
(n)Indirectly means investments held or activities conducted by a subsidiary of an organization.
(o)Investment grade means a security issued by an entity that has adequate capacity to meet financial commitments for the projected life of the exposure. Such an entity has adequate capacity to meet financial commitments if the risk of its default is low and the full and timely repayment of principal and interest is expected.
(p)Loan or extension of credit means all direct and indirect advances of funds to a person, government, or entity made on the basis of any obligation of that person, government, or entity to repay funds.
(q)Organization or entity means a corporation, partnership, association, bank, or other similar entity.
(r)NRSRO means a nationally recognized statistical rating organization as designated by the Securities and Exchange Commission.
(s)Representative office means an office that engages solely in representative functions such as soliciting new business for its home office or acting as liaison between the home office and local customers, but which has no authority to make business or contracting decisions other than those relating to the personnel and premises of the representative office.
(t)Subsidiary means any organization more than 50 percent of the voting equity interests of which are directly or indirectly held by another organization.
(u)Tier 1 capital means Tier 1 capital as defined in § 324.2 of this chapter.
(v)Well capitalized means well capitalized as defined in § 324.403 of this chapter. [70 FR 17560, Apr. 6, 2005, as amended at 78 FR 55595, Sept. 10, 2013; 83 FR 9143, Mar. 5, 2018; 83 FR 17741, Apr. 24, 2018]
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