96 STAT. 1518
PUBLIC LAW 97-320—OCT. 15, 1982 "(D) the acceptance of securities issued by the affiliate as collateral security for a loan or extension of credit to any person or company; or "(E) the issuance of a guarantee, acceptance, or letter of credit, including an endorsement or standby letter of credit, on behalf of an affiliate; "(8) the term 'aggregate amount of covered transactions' means the amount of the covered transactions about to be engaged in added to the current amount of all outstanding covered transactions; "(9) the term 'securities' means stocks, bonds, debentures, notes, or other similar obligations; and "(10) the term 'low-quality asset' means an asset that falls in any one or more of the following categories: "(A) an asset classified as 'substandard', 'doubtful', or 'loss' or treated as 'other loans especially mentioned' in the most recent report of examination or inspection of an affiliate prepared by either a Federal or State supervisory agency; "(B) an asset in a nonaccrual status; "(C) an asset on which principal or interest payments are more than thirty days past due; or "(D) an asset whose terms have been renegotiated or compromised due to the deteriorating financial condition of the obligor. "(c) COLLATERAL FOR CERTAIN TRANSACTIONS WITH AFFILIATES.—
"(1) Each loan or extension of credit to, or guarantee, acceptance, or letter of credit issued on behalf of, an affiliate by a member bank or its subsidiary shall be secured at the time of the transaction by collateral having a market value equal to— "(A) 100 per centum of the amount of such loan or extension of credit, guarantee, acceptance, or letter - of credit, if the collateral is composed of— "(i) obligations of the United States or its agencies; "(ii) obligations fully guaranteed by the United States or its agencies as to principal and interest; "(iii) notes, drafts, bills of exchange or bankers' acceptances that are eligible for rediscount or purchase by a Federal Reserve Bank; or "(iv) a segregated, earmarked deposit account with the member bank; "(B) 110 per centum of the amount of such loan or extension of credit, guarantee, acceptance, or letter of credit if the collateral is composed of obligations of any State or political subdivision of any State; "(C) 120 per centum of the amount of such loan or extension of credit, guarantee, acceptance, or letter of credit if the collateral is composed of other debt instruments, including receivables; or "(D) 130 per centum of the amount of such loan or extension of credit, guarantee, acceptance, or letter of credit if the collateral is composed of stock, leases, or other real or personal property. "(2) Any such collateral that is subsequently retired or amortized shall be replaced by additional eligible collateral where needed to keep the percentage of the collateral value relative to the amount of the outstanding loan or extension of credit,
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