# Applicability of Section 23A of the Federal Reserve Act to the Purchase of Securities From Certain Affiliates
> **US Federal Reserve System** · Final rule. · Published 2001-05-11 · 66 FR 24220
## Document
- **Document number:** 01-11609
- **Category:** final-rule
- **Agency:** US Federal Reserve System
- **Federal Register citation:** 66 FR 24220
- **CFR reference:** 12 CFR 250
- **Publication date:** 2001-05-11
- **Docket:** Miscellaneous Interpretations
## Abstract

Section 23A of the Federal Reserve Act restricts the ability of a member bank to fund its affiliates through asset purchases, loans, or certain other transactions ("covered transactions"). The Board is adopting an interpretation that would expand the types of asset purchases that are eligible for the exemption in section 23A(d)(6), which exempts the purchase from an affiliate of an asset that has a readily identifiable and publicly available market quotation. This interpretation would expand the ability of an insured depository institution to purchase securities from its registered broker-dealer affiliates, while ensuring that the transactions are conducted in a manner that is consistent with safe and sound banking practices.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2001/05/11/01-11609/applicability-of-section-23a-of-the-federal-reserve-act-to-the-purchase-of-securities-from-certain)
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