{"id":35758,"date":"2008-03-26T16:35:41","date_gmt":"2008-03-26T21:35:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/securities-law-alert-april-16-2004.html"},"modified":"2008-03-26T16:35:41","modified_gmt":"2008-03-26T21:35:41","slug":"securities-law-alert-april-16-2004","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/law-library\/securities-law-alert-april-16-2004.html","title":{"rendered":"Securities Law Alert: April 16, 2004"},"content":{"rendered":"
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SEC Adopts Foreign Bank Insider Loan Exemption<\/b><\/p>

On April 13, 2004, the SEC adopted a rule that will exempt foreign banks from the insider lending prohibitions of Section 13(k) of the Exchange Act. Section 13(k) prohibits foreign and domestic issuers from directly or indirectly extending credit or arranging for the extension of credit to or for any director or executive officer unless certain exemptions are met. Under Section 13(k), certain insider loans are permitted if the issuer is a bank or other depository institution that is insured under the Federal Deposit Insurance Act. Currently, foreign banks are not eligible for this exemption, and the new rule, Rule 13(k)-1, is intended to make the treatment of foreign banks equivalent to domestic banks under Section 13(k).<\/p>

The new exemption provides that insider loans by a foreign bank issuer and loans to an insider of an issuer that is a parent or affiliate of the foreign bank are exempt from Section 13(k) if<\/p>