Finance & markets · 11/05/2001Updated: 10/17/2026 · 1 min read
Federal Reserve Board Adopts Interpretation and Exemptions for Certain Loans Under Section 23A of the Federal Reserve Act
Summary
The Federal Reserve Board is adopting an interpretation and exemptions from Section 23A of the Federal Reserve Act for certain loans made by insured depository institutions to customers who use the loan proceeds to purchase a security or other asset through an affiliate acting exclusively as a broker. This exemption applies to transactions where the affiliate is acting riskless principal in the transaction.