General restrictions and prohibitions on the use of UBEs.

CFR · 2024-01-01 · US · Title 12

(a) (1) Necessary or expedient to the business of one or more System institutions owning the UBE; and (2) In no instance greater than the functions and services that one or more System institutions owning the UBE are authorized to perform under the Act and as determined by the FCA. (b) (c) (1) The UBE is held out to the public as a separate or subsidiary entity; (2) The business transactions, accounts, and records of the UBE are not commingled with those of the System institution; and (3) All transactions between the UBE and System institution directors, officers, employees, and agents are conducted at arm's length, in the interest of the System institution, and in compliance with the standards of conduct rules in 12 CFR 612, subpart A of this chapter. (d) (1) Acquiring and managing the unusual or complex collateral associated with loans; and (2) Providing limited services such as electronic transaction, fixed asset, trustee or other services that are integral to the daily internal operations of a System institution. (e) (f) (g) (2) A System institution cannot become a general partner of any partnership other than an LLLP. (h) (i) (1) Making any equity investment in a third-party UBE except as may be authorized on a case-by-case basis under § 615.5140(e) of this chapter for de minimis and passive investments. Such requests would be considered outside of this rule. (2) Serving as the general partner or manager of a third-party UBE; or (3) Being designated as the primary benefi

official document · source cfr-2024 · id 12:§ 611.1153