12 U.S.C. § 221a — Additional definitions

This section gives definitions used throughout this chapter of the banking laws. (a) The words "banks," "national bank," "national banking association," "member bank," "board," "district," and "reserve bank" mean whatever section 221 of this title says they mean. (b) Unless another law says otherwise, "affiliate" means a corporation, business trust, association, or similar organization connected to a member bank in any of these four ways: (1) The member bank directly or indirectly owns or controls more than half of the organization's voting shares, or more than 50 percent of the shares voted at the organization's last election of directors or trustees. This also counts if the member bank controls the election of a majority of the organization's directors or trustees in any other way. (2) The shareholders who own or control the member bank — meaning they hold a majority of the bank's shares, or more than 50 percent of the shares voted at the bank's last director election — also control the organization, whether through owning stock in it or through any other method. This also counts if trustees hold that control for the benefit of the bank's shareholders. (3) A majority of the organization's directors or trustees are also directors of the same member bank. (4) The organization itself owns or controls a majority of the member bank's stock, or more than 50 percent of the shares voted at the bank's last director election, or otherwise controls the election of a majority of the bank's directors. This also counts if trustees hold substantially all of the bank's stock for the benefit of the organization's shareholders or members.