# 12 C.F.R. § 347.109 (2026): Limitations on indirect investments in nonfinancial foreign organizations

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_109

## Section

- **Citation:** 12 C.F.R. § 347.109 (2026)
- **Heading:** Limitations on indirect investments in nonfinancial foreign organizations
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter III: FEDERAL DEPOSIT INSURANCE CORPORATION / Part 347: INTERNATIONAL BANKING / § 347.109: § 347.109   Limitations on indirect investments in nonfinancial foreign organizations.

## Text

(a) A bank may, through a subsidiary authorized by §§ 347.105 or 347.106, or an Edge corporation if also authorized by the FRB, acquire and hold equity interests in foreign organizations that are not foreign banks or foreign banking organizations and that engage generally in activities beyond those listed in § 347.105(b), subject to the following:
(1) The amount of the investment does not exceed 15 percent of the bank's Tier 1 capital;
(2) The aggregate holding of voting equity interests of one foreign organization by the bank and its affiliates must be less than:
(i) 20 percent of the foreign organization's voting equity interests; and
(ii) 40 percent of the foreign organization's voting and nonvoting equity interests;
(b) The bank or its affiliates must not otherwise control the foreign organization; and
(c) Loans or extensions of credit made by the bank and its affiliates to the foreign organization must be on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions between the bank or its affiliates and nonaffiliated organizations.

## Nearby sections

- [12 C.F.R. § 347.101 (2026) § 347.101   Authority, purpose, and scope.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_101.md)
- [12 C.F.R. § 347.102 (2026) § 347.102   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_102.md)
- [12 C.F.R. § 347.103 (2026) § 347.103   Effect of state law on actions taken under this subpart.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_103.md)
- [12 C.F.R. § 347.104 (2026) § 347.104   Insured state nonmember bank investments in foreign organizations.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_104.md)
- [12 C.F.R. § 347.105 (2026) § 347.105   Permissible financial activities outside the United States.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_105.md)
- [12 C.F.R. § 347.106 (2026) § 347.106   Going concerns.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_106.md)
- [12 C.F.R. § 347.107 (2026) § 347.107   Joint ventures.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_107.md)
- [12 C.F.R. § 347.108 (2026) § 347.108   Portfolio investments.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_108.md)
- [12 C.F.R. § 347.109 (2026) § 347.109   Limitations on indirect investments in nonfinancial foreign organizations.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_109.md)
- [12 C.F.R. § 347.110 (2026) § 347.110   Affiliate holdings.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_110.md)
- [12 C.F.R. § 347.111 (2026) § 347.111   Underwriting and dealing limits applicable to foreign organizations held by insured state nonmember banks.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_111.md)
- [12 C.F.R. § 347.112 (2026) § 347.112   Restrictions applicable to foreign organizations that act as futures commission merchants.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_112.md)
- [12 C.F.R. § 347.113 (2026) § 347.113   Restrictions applicable to activities by a foreign organization in the United States.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_113.md)
- [12 C.F.R. § 347.114 (2026) § 347.114   Extensions of credit to foreign organizations held by insured state nonmember banks; shares of foreign organizations held in connection with debts previously contracted.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_114.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P347_S347_109. Check the current official text before relying on it. Not legal advice.