(2) Conflicts of interest (A) Definitions In this paragraph: (i) Controlling interest The term “controlling interest” means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity. (ii) Covered entity The term “covered entity” means an entity in which a covered individual directly or indirectly holds a controlling interest. For the purpose of determining whether an entity is a covered entity, the securities owned, controlled, or held by 2 or more individuals who are related as described in clause (iii)(II) shall be aggregated. (iii) Covered individual The term “covered individual” means— (I) the President, the Vice President, the head of an Executive department, or a Member of Congress; and (II) the spouse, child, son-in-law, or daughter-in-law, as determined under applicable common law, of an individual described in subclause (i). (iv) Executive department The term “Executive department” has the meaning given the term in section 101 of title 5 . (v) Member of Congress The term “member of Congress” means a member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico. (vi) Equity interest The term “equity interest” means— (I) a share in an entity, without regard to whether the share is— (aa) transferable; or (bb) classified as stock or anything similar; (II) a capital or profit interest in a limited liability company or partnership; or (III) a warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share or interest described in subclause (I) or (II), respectively. (B) Prohibition Notwithstanding any other provision of this section, no covered entity may be eligible for any investment made under the Program. (C) Requirement The principal executive officer and the principal financial officer, or individuals performing similar functions, of an entity seeking to receive an investment made under the Program shall, before that investment is approved, certify to the Secretary and the appropriate Federal banking agency or the National Credit Union Administration, as applicable, that the entity is eligible to receive the investment, including that the entity is not a covered entity.
FAQs
Definition: equity interest from 12 USC § 4703a(h)(2) | LII? ›
(vi) Equity interest The term “equity interest” means— (I) a share in an entity, without regard to whether the share is— (aa) transferable; or (bb) classified as stock or anything similar; (II) a capital or profit interest in a limited liability company or partnership; or (III) a warrant or right, other than a right to ...
What is an example of equity interest? ›Equity interest, defined as the amount of equity a single person holds in a business, is a common concept to the small business world. For example, if an angel investor receives 25% ownership of a company, the investor has a 25% equity interest in that business.
What is the interest of equity? ›Equity interest is the ownership share of a shareholder in a business. For example, having a 15% equity interest in a company means that a shareholder owns 15% of the business. An equity interest does not necessarily mean that a shareholder is entitled to a proportionate share of the income generated by an investee.
What represents an equity interest in a corporation? ›Answer: An equity interest includes any stock, stock option, or other ownership interest in an outside organization/entity.
What is other equity interest? ›Definition. Other Equity Interest. The amount of equity interest of an entity without share capital that the entity does not separately disclose in the same statement or note.
What is the legal definition of equity interest? ›(vi) Equity interest The term “equity interest” means— (I) a share in an entity, without regard to whether the share is— (aa) transferable; or (bb) classified as stock or anything similar; (II) a capital or profit interest in a limited liability company or partnership; or (III) a warrant or right, other than a right to ...
What is an example of an equitable interest? ›An example of equitable interest is the beneficiary's interest in a trust or a silent partner's interest in a partnership. Meanwhile, in a real estate transaction, the seller holds legal interest; the buyer, equitable interest[2]. Equitable interest can also represent a person's financial interest in the property.
What is equity interest value? ›It is the enterprise value plus all cash and cash equivalents, short and long-term investments, and less all short-term debt, long-term debt and minority interests. Equity value accounts for all the ownership interest in a firm including the value of unexercised stock options and securities convertible to equity.
What is the difference between debt and equity interest? ›When financing a company, "cost" is the measurable expense of obtaining capital. With debt, this is the interest expense a company pays on its debt. With equity, the cost of capital refers to the claim on earnings provided to shareholders for their ownership stake in the business.
What are equity interest rates? ›As of May 24, 2024, average national home equity loan rates are: Average overall rate: 8.61% 10-year fixed home equity loan: 8.77% 15-year fixed home equity loan: 8.75%
What is the owner's equity interest? ›
Owner's Equity is defined as the proportion of the total value of a company's assets that can be claimed by its owners (sole proprietorship or partnership) and by its shareholders (if it is a corporation). It is calculated by deducting all liabilities from the total value of an asset (Equity = Assets – Liabilities).
What is common equity interest? ›Common Equity Interest means any share of common stock, preferred stock or other instrument evidencing an ownership interest in the Debtor, whether or not transferable, and any option, warrant or right, contractual or otherwise, to acquire any such interest in the Debtor that existed immediately prior to the Effective ...
What is considered equity in a corporation? ›It is the total value of your company's assets, minus the sum of its liabilities. To put it another way, if your company were to go out of business tomorrow and all of your assets were to be liquidated, your equity would be the amount that is divided between shareholders after your creditors have been satisfied.
What are excluded equity interests? ›Broadly, excluded equity interest is an entity's equity capital that has been on issue for a period of less than 180 days and has certain features that make it possible to manipulate asset levels so an entity artificially passes the thin capitalisation rules.
What is the interest on equity called? ›Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholder equity. Because shareholder equity is equal to a company's assets minus its debt, ROE could be considered the return on net assets.
Is equity interest the same as shareholding? ›Equity is the ownership stake in the entity or other valuable business component, while shares are the measurement of the ownership proportion of the individual in that business component.
What are 2 examples of equity? ›What Are Equity Examples? Equity is anything invested in the company by its owner or the sum of the total assets minus the sum of the company's total liabilities. E.g., Common stock, additional paid-in capital, preferred stock, retained earnings, and the accumulated other comprehensive income.
What is common equity example? ›You can come down to Common Equity by multiplying outstanding common stock by the face value of the stock to get the desired figure. If a company has 10,000 shares with a face value of $5/per share, its common equity will be $50,000.
Which of the following are examples of equity? ›- Common stock. ...
- Preferred stock. ...
- Retained earnings. ...
- Contributed surplus. ...
- Additional paid-in capital. ...
- Treasury stock. ...
- Dividends. ...
- Other comprehensive income (OCI)