It is an extension of credit will be deemed to be made to an insider if the proceeds are transferred to the insider or used for the insider's benefit. This rule does not apply if the credit is made on substantially the same terms and conditions as those made to a noninsider and if the proceeds are used in a bona fide transaction involving the acquisition of property, goods, or services from the insider. What is it?

Question

Quizplus · Accepted Answer

The Tangible Economic Benefit Rule under 12 CFR 215.3(f) states that an extension of credit is considered to be made to an insider if the proceeds are transferred to the insider or used for their benefit, unless certain conditions are met.

It Is an Extension of Credit Will Be Deemed to Be