Related Organizations
Covered Transactions
Transactions governed by section 23A are referred to as "covered transactions." Covered transactions are:
Loans and extensions of credit to affiliates.
Purchases of assets from affiliates.
An investment in securities issued by an affiliate.
The acceptance of securities issued by an affiliate as collateral for a loan or extension of credit to any person.
The issuance of a guarantee, acceptance, or letter of credit (including an endorsement or standby letter of credit) on behalf of an affiliate, a confirmation of a letter of credit issued by the affiliate, and certain cross-affiliate netting arrangements. [14]
This category of covered transactions, together with loans and extensions of credit, is referred to as "credit transactions" in Regulation W and this booklet.
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