12 CFR 223.51 : Banks And Banking (§ 1.1 To Parts 1816-1899) — (§ 220.1 To Appendix F To Part 229) — Federal Reserve System (Continued) (§ 220.1 To Appendix F To Part 229) — Board Of Governors Of The Federal Reserve System (Continued) (§ 220.1 To Appendix F To Part 229) — Transactions Between Member Banks And Their Affiliates (Regulation W) (§ 223.1 To § 223.72) — General Provisions Of Section 23B (§ 223.51 To § 223.56) — What is the market terms requirement of section 23B?

A member bank may not engage in a transaction described in § 223.52 unless the transaction is:

(a) On terms and under circumstances, including credit standards, that are substantially the same, or at least as favorable to the member bank, as those prevailing at the time for comparable transactions with or involving nonaffiliates; or

(b) In the absence of comparable transactions, on terms and under circumstances, including credit standards, that in good faith would be offered to, or would apply to, nonaffiliates.