(a) The market-terms requirement
of section 223.51 applies to the following transactions:
(1) any covered transaction with an affiliate,
unless the transaction is exempt under paragraphs (a) through (c)
of section 223.41 or paragraphs (a) through (e) or (h) through (j)
of section 223.42;
(2) the sale of a security or other asset to an affiliate, including
an asset subject to an agreement to repurchase;
(3) the payment of money or the furnishing
of a service to an affiliate under contract, lease, or otherwise;
(4) any transaction in
which an affiliate acts as an agent or broker or receives a fee for
its services to the member bank or to any other person; and
(5) any transaction or series
of transactions with a nonaffiliate, if an affiliate—
(i) has
a financial interest in the nonaffiliate; or
(ii) is a participant in the transaction
or series of transactions.
(b) For the purpose of this section, any transaction
by a member bank with any person will be deemed to be a transaction
with an affiliate of the member bank if any of the proceeds of the
transaction are used for the benefit of, or transferred to, the affiliate.
