Foreign Banking Entity Clause Samples
The 'Foreign Banking Entity' clause defines what constitutes a foreign banking institution for the purposes of the agreement. Typically, this clause outlines the criteria an entity must meet, such as being organized under non-domestic laws and engaging in banking activities outside the home jurisdiction. By clearly specifying which entities are considered foreign banks, the clause ensures that regulatory requirements, compliance obligations, or contractual provisions are properly applied to the correct parties, thereby reducing ambiguity and ensuring legal clarity in cross-border financial transactions.
Foreign Banking Entity. For purposes of this Subscription Agreement, a Banking Entity that is not organized or directly or indirectly controlled by a Banking Entity that is organized under U.S. federal or state law. Foreign Banking Organization. A foreign bank (as defined in section 1(b)(7) of the International Banking Act of 1978), that: (i) operates a branch, agency, or commercial lending company subsidiary in the United States; (ii) controls a bank in the United States; or (iii) controls an Edge corporation acquired after March 5, 1987; and (2) any company of which the foreign bank is a subsidiary. Terms used in this definition and not otherwise defined herein have the meanings ascribed to such terms under the Board of Governors of the Federal Reserve System’s Regulation K (12 C.F.R. part 211).