(a) Authority. This part is issued pursuant to sections 11(a), 22(g),
and 22(h) of the Federal Reserve Act (12 U.S.C. 248(a), 375a, and
375b), 12 U.S.C. 1817(k), and section 306 of the Federal Deposit Insurance
Corporation Improvement Act of 1991 (Pub. L. 102-242, 105 Stat. 2236
(1991)), section 11 of the Home Owners’ Loan Act (12 U.S.C. 1468),
and section 312(b)(2)(A) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5412).
(b) Purpose and scope.
(1) This part governs any extension of
credit made by a member bank to an executive officer, director, or
principal shareholder of the member bank, of any company of which
the member bank is a subsidiary, and of any other subsidiary of that
company.
(2) This part
also applies to any extension of credit made by a member bank to a
company controlled by such a person, or to a political or campaign
committee that benefits or is controlled by such a person.
(3) This part also implements
the reporting requirements of 12 U.S.C. 1817(k) concerning extensions
of credit by a member bank to its executive officers or principal
shareholders (or to the related interests of such persons).
(4) Extensions
of credit made to an executive officer, director, or principal shareholder
of a bank (or to a related interest of such person) by a correspondent
bank also are subject to restrictions set forth in 12 U.S.C. 1972(2).
