12 CFR 614.4232

§ 614.4232 Loans to domestic lessors.

United States · 12 CFR — Banks and Banking · Status: effective

Cite this

Citation: 12 CFR 614.4232, § 614.4232 Loans to domestic lessors, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/47732
Permanent ID: ys:prov:47732@1
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Full text

Loans and financial assistance extended by banks for cooperatives and agricultural credit banks to domestic lessors to finance equipment or facilities leased by a stockholder of the bank shall be subject to the following terms and conditions: (a) The term of the loan shall not be longer than the total period of the lease; (b) The contract between the lessor and lessee shall establish that the leased assets are effectively under the control of the lessee and that such control shall continue in effect for essentially all of the term of the lease; (c) The lessee must hold at least one share of stock or one participation certificate; and (d) The leased equipment and facilities must be primarily for use in the lessee's operations in the United States.

Legislative history

This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.