4092

EXECUTIVE ORDERS

parent subsidiary or affiliate for the
purpose of frustrating or avoiding any
prohibition in these regulations. No such
loan shall be made unless secured by
adequate security and approved by the
Director. "Adequate security" shall mean
property in which the equity interest of
the parent, subsidiary or affiliate exceeds
the amount of the loan by at least 20%, as
determined by a disinterested appraiser.

(10)  Total cumulative loans by an association
to subsidiaries, affiliates and service
corporations cannot exceed the loan to one
borrower limit of regulation .30.

(11)  No loan may be made to a parent,
subsidiary, affiliate, officer, director,
employee, controlling person, or business,
corporation or other entity in which an
interest of 10% or more is owned by such
officer, director or controlling person on
terms more favorable than similar loans
are made by the association to
unaffiliated persons in the regular course
of business.

(12)  (a) No association, parent, subsidiary or

affiliate may, directly or indirectly,
purchase or lease from, jointly own with,
sell or lease to, an officer, director,
controlling person, member of his or her
immediate family or corporation, business or
other entity in which an interest of 10%
or more is owned by such officer,
director, controlling person or member of
his or her immediate family, or any
parent, subsidiary or affiliate, any
interest in real or personal property
unless the transaction is determined by
the Director to be fair to, and in the
best interest of, the association, parent,
subsidiary, or affiliate.

(b) Conditions. Transactions permitted
under paragraph (a) shall--

(i) receive prior written approval of the
Director indicating that the terms of
such transactions are fair to, and in
the best interests of, the association,
parent, subsidiary, or affiliate;

(ii) be supported by an independent
appraisal; and