Approval of equity investments in UBEs.

CFR · 2024-01-01 · US · Title 12

(a) (1) A detailed statement of the risk characteristics of the investment, as required by § 615.5140(e) of this chapter and the initial amount of equity investment; (2) A detailed statement on the purpose and objectives of the UBE; the need for the UBE and the operating efficiencies and benefits that will be achieved by using the UBE; (3) The proposed articles of formation addressing, at a minimum, the following: (i) The UBE's name, the State in which it is organized, the city and State in which its principal office is to be located, and its partners or members and management structure; (ii) Specific business activities that the UBE will conduct; (iii) General powers of the UBE; (iv) Ownership, voting, partnership, membership and operating agreements for the UBE; (v) Procedures to adopt and amend the partnership, membership or operating agreement of the UBE; (vi) The standards and procedures for the application and distribution of the UBE's earnings; and (vii) Length of time the UBE will exist. (4) A certified resolution of the System institution's board of directors authorizing the equity investment in the UBE and the UBE business activity and the board's approval to submit the request to the FCA. The certified board resolution must include a board statement affirming that the UBE: (i) Is necessary or expedient to the System institution's business; (ii) Will operate with transparency; (iii) Will conduct its business activity in a manner designed to prevent conflicts of inte

official document · source cfr-2024 · id 12:§ 611.1155