---
kind: "section"
citation: "12 C.F.R. § 223.72"
title: "12"
number: "223.72"
heading: "Transactions with affiliates."
url: "https://uscodex.org/cfr/12/223.72"
---

# §223.72. Transactions with affiliates.

- (a) **Scope.**
  - (1) This subpart implements section 11(a) of the Home Owners' Loan Act ([12 U.S.C. 1468(a)](/usc/12/1468.md?p=a)). [Section 11(a)](/cfr/12/11.md?p=a) applies sections [23A](/cfr/12/23A.md) and [23B](/cfr/12/23B.md) of the FRA (12 U.S.C. [371c](/usc/12/371c.md) and [371c1](/usc/12/371c1.md)) to every savings association in the same manner and to the same extent as if the association were a member bank; prohibits certain types of transactions with affiliates; and authorizes the Board to impose additional restrictions on a savings association's transactions with affiliates.
  - (2) For the purposes of this subpart, “savings association” is defined at section 3 of the Federal Deposit Insurance Act ([12 U.S.C. 1813](/usc/12/1813.md)), and also includes any savings bank or any cooperative bank that is a savings association under [12 U.S.C. 1467a(l)](/usc/12/1467a.md?p=l). A non-affiliate subsidiary of a savings association is treated as part of the savings association. For purposes of this subpart, a “non-affiliate subsidiary” is a subsidiary of a savings association other than a subsidiary described at 12 CFR [223.2(b)(1)(i)](/cfr/12/223.2.md?p=b-1-i), and [(b)(1)(iii) through (v)](/cfr/12/223.2.md?p=b-1-iii..b-1-v).
- (b) **Sections 23A and 23B of the FRA.** A savings association must comply with sections 23A and 23B of the Federal Reserve Act and this part as if it were a member bank, except as described in the following chart.
- (c) **Additional prohibitions and restrictions.** A savings association must comply with the additional prohibitions and restrictions in this [paragraph (c)](#c). Except as described in [paragraph (b)](#b) of this section, the definitions in this part apply to these additional prohibitions and restrictions.
  - (1) **Loans and extensions of credit.**
    - (i) A savings association may not make a loan or other extension of credit to an affiliate, unless the affiliate is solely engaged in the activities described at [12 U.S.C. 1467a(c)(2)(F)(i)](/usc/12/1467a.md?p=c-2-F-i), as defined in [§ 238.54](/cfr/12/238.54.md) of Regulation LL ([12 CFR 238.54](/cfr/12/238.54.md)). A loan or extension of credit to a third party is not prohibited merely because proceeds of the transaction are used for the benefit of, or are transferred to, an affiliate.
    - (ii) If the Board determines that a particular transaction is, in substance, a loan or extension of credit to an affiliate that is engaged in activities other than those described at [12 U.S.C. 1467a(c)(2)(F)(i)](/usc/12/1467a.md?p=c-2-F-i), as defined in [§ 238.54](/cfr/12/238.54.md) of Regulation LL ([12 CFR 238.54](/cfr/12/238.54.md)), or the Board has other supervisory concerns concerning the transaction, the Board may inform the savings association that the transaction is prohibited under this [paragraph (c)(1)](#c-1), and require the savings association to divest the loan, unwind the transaction, or take other appropriate action.
  - (2) **Purchases or investments in securities.** A savings association may not purchase or invest in securities issued by any affiliate other than with respect to shares of a subsidiary. For the purposes of this [paragraph (c)(2)](#c-2), subsidiary includes a bank and a savings association.

## Notes

### Amendments

[76 FR 56531, Sept. 13, 2011]

### Authority

Authority: 12 U.S.C. 371c(b)(1)(E), (b)(2)(A), and (f), 371c-1(e), 1828(j), 1468(a), and section 312(b)(2)(A) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5412).

### Source

Source: 67 FR 76604, Dec. 12, 2002, unless otherwise noted.

### Amendments

[76 FR 56531, Sept. 13, 2011]