Financings which constitute conflicts of interest.

CFR · 2024-01-01 · US · Title 7

(a) (1) Provide Financing to any of your Associates, except for an Enterprise that satisfies all of the following conditions: (i) Your Associate relationship with the Enterprise is described by paragraph (8) or (9) of the definition of (ii) No Person triggering the Associate relationship identified in paragraph (a)(1)(i) of the definition of Associate in § 4290.50 is a Close Relative or Secondary Relative of any Person described in paragraphs (1), (2), (4), or (5) of the definition of (iii) No single Associate of yours has either a voting interest or an economic interest in the Enterprise exceeding 20 percent, and no two or more of your Associates have either a voting interest or an economic interest exceeding 33 percent. Economic interests shall be computed on a fully diluted basis, and both voting and economic interests shall exclude any interest owned through the RBIC. (2) Provide Financing to an Associate of another RBIC if one of your Associates has received or will receive any direct or indirect Financing or a Commitment from that RBIC or any other RBIC (including Financing or Commitments received under any understanding, agreement, or cross dealing, reciprocal or circular arrangement). (3) Borrow money from: (i) An Enterprise Financed by you; (ii) An officer, director, or owner of at least a 10 percent equity interest in such Enterprise; or (iii) A Close Relative of any such officer, director, or equity owner. (4) Provide Financing to an Enterprise to discharge an obli

official document · source cfr-2024 · id 7:§ 4290.730