# Foreign Bank Exemption from the Insider Lending Prohibition of Exchange Act Section 13(k)
> **US Securities and Exchange Commission** · Final rule. · Published 2004-04-30 · Effective 2004-06-01 · 69 FR 24016
## Document
- **Document number:** 04-9822
- **Category:** final-rule
- **Agency:** US Securities and Exchange Commission
- **Federal Register citation:** 69 FR 24016
- **CFR reference:** 17 CFR 240
- **Publication date:** 2004-04-30
- **Effective date:** 2004-06-01
- **Docket:** Release No. 34-49616, International Series Release No. 1275
## Abstract

We are adopting for qualified foreign banks an exemption from the insider lending prohibition under section 13(k) of the Securities Exchange Act of 1934, as added by section 402 of the Sarbanes-Oxley Act. This section prohibits both domestic and foreign issuers from making or arranging for loans to their directors and executive officers unless the loans fall within the scope of specified exemptions. One of these exemptions permits certain insider lending by a bank or other depository institution that is insured under the Federal Deposit Insurance Act. Foreign banks whose securities are registered with the Securities and Exchange Commission are not eligible for the bank exemption under section 13(k). The adopted rule will remedy this disparate treatment of foreign banks by exempting from section 13(k)'s insider lending prohibition those foreign banks that satisfy specified criteria similar to those that qualify domestic banks for the statutory exemption.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2004/04/30/04-9822/foreign-bank-exemption-from-the-insider-lending-prohibition-of-exchange-act-section-13k)
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