Table 1
Attribution rule | Criteria per § 614.4359 | Attribute |
(A) Liability | Borrower has primary or secondary liability | Yes.* |
*to the extent of the borrower's liability | Borrower's liability is taken out of an abundance of caution | No.* |
Look-through notes (BC only) | No. | |
(B) Financial Interdependence | Source of Repayment: | |
(Economic survival of the borrower's operation will materially impact economic survival of the related borrowers operation) | Borrower is obligated to supply 50 percent or more of related borrower's annual gross receipts, and reliance on the income from one another is such that the debt service of the related borrower could not be met if income flow from the borrower is interrupted or terminated | Yes. |
Commingled Operations: | ||
Assets or operations of the borrowers are commingled and cannot be separated without materially impacting the borrowers' repayment capacity | Yes. | |
(C) Control | The borrower owns 50 percent or more of the stock of the related borrower | Yes. |
(The borrower, directly or indirectly, controls the related borrower) | The borrower owns or has the power to vote 25 percent or more of the voting stock of a related borrower, and (1) Shares a common directorate or management with a related borrower, or (2) Controls the election of a majority of directors of a related borrower, or (3) Exercises a controlling influence over management of a related borrower's operations through the provisions of management placement or marketing agreements, or providing services such as insurance carrier or bookkeeping | Yes. |
12 C.F.R. §614.4359