Definitions

(1) For the purposes of this Part, any person described in sub-sections (2) to (7) is a related party of a licensee. (2) The person– (a) has a substantial investment in the licensee; (b) is a director or officer of the licensee; (c) is a financial holding company, holding company, controlling shareholder of the (d) is a person who holds twenty percent or more of any class of shares of the licensee or of a person referred to in paragraph (c); (e) is an affiliate of the licensee; (f) is an affiliate of a person referred to in paragraph (c); (g) is a director or officer of a holding body corporate of the licensee; or (h) is acting in a capacity similar to that of a director or officer in respect of any other entity that controls the licensee. (3) The person is the spouse, parent, child or dependent of a person who– (a) has a substantial investment in the licensee; 118 (b) is a director or officer of the licensee; (c) is a director or officer of a holding body corporate of the licensee; or (d) is acting in a capacity similar to that of a director or officer in respect of any other entity that control the licensee. (4) The person is a body corporate or unincorporated entity that is controlled by a person referred to in sub-section (2) or (3). (5) The person is a body corporate or unincorporated entity in which a person who controls the licensee has a substantial (6) The person is a body corporate or unincorporated entity in which the spouse, parent, child or dependent of a person who controls the licensee has a substantial investment. (7) The person is a person or a member of a class of persons designated under sub-section (8) or to who sub-section (9) applies. (8) For the purposes of this Part, the Central Bank may, with respect to a particular licensee, designate as a related party of the licensee any person or class of persons whose direct or indirect interest in or relationship with the licensee or a related party of the licensee might reasonably be expected to affect the exercise of the best judgment of the licensee in respect of a (9) Where, in contemplation of a person becoming a related party of a licensee, the licensee enters into a transaction with the person, the person is deemed for the purposes of this Part to be a related party of the licensee in respect of that transaction. 119 (10) For the purposes of this Part, entering into a transaction with a related party of a licensee includes– (a) making a guarantee on behalf of the related party; (b) making an investment in any securities of the related party; (c) taking an assignment of or otherwise acquiring a loan made by a third party to the related party; and (d) taking a security interest in the securities of the related party and the fulfillment of an obligation under the terms of any transaction, including the payment of interest on a loan or deposit, is part of the transaction, and not a separate transaction. (11) For the purposes of this Part, the term “loans, advances and extensions of credit” shall include all loans, advances, overdrafts, debt securities, holdings of papers and all direct and indirect obligations of the borrower as well as off-balance sheet commitments, underwriting facilities, placements, documentary credits issued, performance bonds and other contingent liabilities on behalf of such person or any other facility or instrument that the Central Bank may specify in writing, but does not include acceptances, endorsements and other guarantees on behalf of the borrower.