What valuation and timing principles apply to credit transactions?

CFR · 2024-01-01 · US · Title 12

(a) (i) The principal amount of the transaction; (ii) The amount owed by the affiliate to the member bank under the transaction; or (iii) The sum of: (A) The amount provided to, or on behalf of, the affiliate in the transaction; and (B) Any additional amount that the member bank could be required to provide to, or on behalf of, the affiliate under the terms of the transaction. (2) (i) The total amount of consideration given (including liabilities assumed) by the member bank in exchange for the credit transaction; and (ii) Any additional amount that the member bank could be required to provide to, or on behalf of, the affiliate under the terms of the transaction. (3) (4) (i) (ii) (iii) (iv) (b) (i) The member bank becomes legally obligated to make an extension of credit to, issue a guarantee, acceptance, or letter of credit on behalf of, or confirm a letter of credit issued by, an affiliate; (ii) The member bank enters into a cross-affiliate netting arrangement; or (iii) The member bank acquires an extension of credit to, or guarantee, acceptance, or letter of credit issued on behalf of, an affiliate. (2) (ii) (A) The aggregate amount of the member bank's covered transactions (including any such credit transaction with the nonaffiliate) would not exceed the quantitative limits of § 223.11 or 223.12 at the time the nonaffiliate becomes an affiliate; and (B) The credit transaction complies with the collateral requirements of § 223.14 at the time the nonaffiliate becomes an affil

official document · source cfr-2024 · id 12:§ 223.21