What valuation principles apply to extensions of credit secured by affiliate securities?

CFR · 2024-01-01 · US · Title 12

(a) (1) The total value of the extension of credit; or (2) The fair market value of the securities issued by an affiliate that are pledged as collateral, if the member bank verifies that such securities meet the market quotation standard contained in paragraph (e) of § 223.42 or the standards set forth in paragraphs (f)(1) and (5) of § 223.42. (b) (1) The total value of the extension of credit less the fair market value of the nonaffiliate collateral; or (2) The fair market value of the securities issued by an affiliate that are pledged as collateral, if the member bank verifies that such securities meet the market quotation standard contained in paragraph (e) of § 223.42 or the (c) (2) (i) The securities issued by the investment company: (A) Meet the market quotation standard contained in paragraph (e) of § 223.42; (B) Meet the standards set forth in paragraphs (f)(1) and (5) of § 223.42; or (C) Have closing prices that are made public through a mutual fund “supermarket” website maintained by an unaffiliated securities broker-dealer or mutual fund distributor; and (ii) The member bank and its affiliates do not own or control in the aggregate more than 5 percent of any class of voting securities or of the equity capital of the investment company (excluding securities held by the member bank or an affiliate in good faith in a fiduciary capacity, unless the member bank or affiliate holds the securities for the benefit of the member bank or affiliate, or the shareholders, employ

official document · source cfr-2024 · id 12:§ 223.24