Page:United States Statutes at Large Volume 105 Part 3.djvu/473

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PUBLIC LAW 102-242—DEC. 19, 1991 105 STAT. 2357 pool syndicate, sole proprietorship, unincorporated organization, or other business entity. " (ii) EXCEPTIONS.—The term 'company' does not include— "(I) an insured depository institution (as defined in section 3 of the Federal Deposit Insurance Act); or "(II) a corporation the majority of the shares of which are owned by the United States or by any State. "(B) CONTROL. — A person controls a company or bank if that person, directly or indirectly, or acting through or in concert with 1 or more persons— "(i) owns, controls, or has the power to vote 25 percent or more of any class of the company's voting securities; "(ii) controls in any manner the election of a majority of the company's directors; or "(iii) has the power to exercise a controlling influence over the company's management or policies. "(C) EXECUTIVE OFFICER. — A person is an 'executive officer' of a company or bank if that person participates or has authority to participate (other than as a director) in major policymaking functions of the company or bank. "(D) EXTENSION OF CREDIT. —A member bank extends credit by making or renewing any loan, granting a line of credit, or entering into any similar transaction as a result of which a person becomes obligated (directly or indirectly, or by any means whatsoever) to pay money or its equivalent to the bank. "(E) [Reserved.] "(F) PRINCIPAL SHAREHOLDER. — The term 'principal shareholder' means any person that directly or indirectly, or acting through or in concert with one or more persons, owns, controls, or has the power to vote more than 10 percent of any class of voting securities of a member bank or company. For purposes of paragraph (4), if a member bank has its main banking office in a city, town, or village with a population of less than 30,000, the preceding sentence shall apply with '18 percent' substituted for '10 percent'. "(G) RELATED INTEREST. —A 'related interest' of a person is— "(i) any company controlled by that person; and "(ii) any political or campaign committee that is controlled by that person or the funds or services of which will benefit that person. "(H) SUBSIDIARY.— The term 'subsidiary' has the same meaning as in section 2 of the Bank Holding Company Act of 1956. "(10) BOARD'S RULEMAKING AUTHORITY. — The Board of Governors of the Federal Reserve System may prescribe such regulations, including definitions of terms, as it determines to be necessary to effectuate the purposes and prevent evasions of this subsection.", (b) REQUIRING DEPOSITORY INSTITUTIONS To FOLLOW NORMAL CREDIT UNDERWRITING PROCEDURES WHEN EXTENDING CREDIT TO