List of permissible nonbanking activities.

CFR · 2024-01-01 · US · Title 12

(a) (b) (2) (i) (ii) (iii) (iv) (v) (vi) (vii) (A) Divests shares or assets securing debt in default that are not permissible investments for bank holding companies, within the time period required for divestiture of property acquired in satisfaction of a debt previously contracted under § 225.12(b); (B) Stands only in the position of a creditor and does not purchase equity of obligors of debt in default (other than equity that may be collateral for such debt); and (C) Does not acquire debt in default secured by shares of a bank or bank holding company. (viii) (3) (i) The lease is on a nonoperating basis; (ii) The initial term of the lease is at least 90 days; (iii) In the case of leases involving real property: (A) At the inception of the initial lease, the effect of the transaction will yield a return that will compensate the lessor for not less than the lessor's full investment in the property plus the estimated total cost of financing the property over the term of the lease from rental payments, estimated tax benefits, and the estimated residual value of the property at the expiration of the initial lease; and (B) The estimated residual value of property for purposes of paragraph (b)(3)(iii)(A) of this section shall not exceed 25 percent of the acquisition cost of the property to the lessor. (4) (ii) (5) (6) (i) Serving as investment adviser (as defined in section 2(a)(20) of the Investment Company Act of 1940, 15 U.S.C. 80a-2(a)(20)), to an investment company registered

official document · source cfr-2024 · id 12:§ 225.28