A member bank wants to sell assets to an affiliated bank that is 100 percent owned by the same bank holding company. Is this transaction allowed?
A. No. It is prohibited.
B. Yes, but it is subject to an aggregate limit of 10 percent of the member bank’s capital and unimpaired surplus.
C. Yes. It is permitted, if the assets are not low quality.
D. Yes, but it must be classified on the receiving bank s books as low quality assets.
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