INSIDER LENDING.

SEC. 965. INSIDER LENDING. (a) Authority to Make Exceptions to Definition of Extension of Credit.—Section 22(h)(9)(D) of the Federal Reserve Act (12 U.S.C. 375b(h)(9)(D)) is amended— (1) by Striking “(D) Extension of credit.—A member bank” and inserting the following: “(D) Extension of credit.— “(i) In general.—A member bank”: and (2) by adding at the end the following new clause: “(ii) Exceptions.—The Board may, by regulation, make exceptions to clause (i) for transactions that the Board determines pose minimal risk”. (b) Principal Shareholder Defined.— Section 22(h)(9)(F) of the Federal Reserve Act (12 U.S.C. 375b(h)(9))(F)) is amended— (1) by striking “shareholder” means any person” and inserting ‘shareholder’— “(i) means any person”; (2) by striking the period at the end of clause (i) (as so redesignated by paragraph (1) of this subsection) and inserting “; and”; and (3) by adding at the end the following new clause: “(ii) does not include a company of which a member bank is a subsidiary.”.