12 U.S.C. § 371c: Restrictions on transactions with affiliates

on terms and under circumstances, including credit 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 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. Any covered transaction with an affiliate. The sale of securities or other assets to an affiliate, including assets subject to an agreement to repurchase. The payment of money or the furnishing of services to an affiliate under contract, lease, or otherwise. 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. if an affiliate has a financial interest in the third party, or if an affiliate is a participant in such transaction or series of transactions. For the purpose of this subsection, any transaction by a member bank or its subsidiary with any person shall be deemed to be a transaction with an affiliate of such bank if any of the proceeds of the transaction are used for the benefit of, or transferred to, such affiliate. under the instrument creating the fiduciary relationship, by court order, or by law of the jurisdiction governing the fiduciary relationship; and whether acting as principal or fiduciary, shall not knowingly purchase or otherwise acquire, during the existence of any underwriting or selling syndicate, any security if a principal underwriter of that security is an affiliate of such bank. Subparagraph (B) of paragraph (1) shall not apply if the purchase or acquisition of such securities has been approved, before such securities are initially offered for sale to the public, by a majority of the directors of the bank based on a determination that the purchase is a sound investment for the bank irrespective of the fact that an affiliate of the bank is a principal underwriter of the securities. the term “security” has the meaning given to such term in section 78c(a)(10) of title 15 ; and is in privity of contract with the issuer or an affiliated person of the issuer; acting alone or in concert with one or more other persons, initiates or directs the formation of an underwriting syndicate; or is allowed a rate of gross commission, spread, or other profit greater than the rate allowed another underwriter participating in the distribution. A member bank or any subsidiary or affiliate of a member bank shall not publish any advertisement or enter into any agreement stating or suggesting that the bank shall in any way be responsible for the obligations of its affiliates. the term “affiliate” has the meaning given to such term in section 371c of this title (but does not include any company described in section 1 (b)(2) of such section or any bank); 1 So in original. Probably should be “subsection”. the terms “bank”, “subsidiary”, “person”, and “security” (other than security as used in subsection (b)) have the meanings given to such terms in section 371c of this title ; and the term “covered transaction” has the meaning given to such term in section 371c of this title (but does not include any transaction which is exempt from such definition under subsection (d) of such section). regulations to further define terms used in this section; and exempt transactions or relationships from the requirements of this section; and exclude any subsidiary of a bank holding company from the definition of affiliate for purposes of this section. The Board may grant an exemption or exclusion under this subsection only if, during the 60-day period beginning on the date of receipt of notice of the finding from the Board under paragraph (1)(B), the Federal Deposit Insurance Corporation does not object, in writing, to such exemption or exclusion, based on a determination that the exemption presents an unacceptable risk to the Deposit Insurance Fund.