Restrictions on transactions with affiliates

A member bank and its subsidiaries may engage in any of the transactions described in paragraph (2) only— Paragraph (1) applies to the following: Any transaction or series of transactions with a third party— For the purpose of this subsection, any transaction by a member bank or its subsidiary with any person shall be deemed to be a transaction with an affiliate of such bank if any of the proceeds of the transaction are used for the benefit of, or transferred to, such affiliate. A member bank or its subsidiary— shall not purchase as fiduciary any securities or other assets from any affiliate unless such purchase is permitted— Subparagraph (B) of paragraph (1) shall not apply if the purchase or acquisition of such securities has been approved, before such securities are initially offered for sale to the public, by a majority of the directors of the bank based on a determination that the purchase is a sound investment for the bank irrespective of the fact that an affiliate of the bank is a principal underwriter of the securities. For the purpose of this subsection— the term “principal underwriter” means any underwriter who, in connection with a primary distribution of securities— A member bank or any subsidiary or affiliate of a member bank shall not publish any advertisement or enter into any agreement stating or suggesting that the bank shall in any way be responsible for the obligations of its affiliates. For the purpose of this section— The Board may prescribe regulations to administer and carry out the purposes of this section, including— subject to paragraph (2), if the Board finds that an exemption or exclusion is in the public interest and is consistent with the purposes of this section, and notifies the Federal Deposit Insurance Corporation of such finding, regulations to— The Board may grant an exemption or exclusion under this subsection only if, during the 60-day period beginning on the date of receipt of notice of the finding from the Board under paragraph (1)(B), the Federal Deposit Insurance Corporation does not object, in writing, to such exemption or exclusion, based on a determination that the exemption presents an unacceptable risk to the Deposit Insurance Fund.