12 CFR § 223.51 - What is the market terms requirement of section 23B?
---
identifier: "/us/cfr/t12/s223.51"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 223.51 - What is the market terms requirement of section 23B?"
title_number: 12
title_name: "Banks and Banking"
section_number: "223.51"
section_name: "What is the market terms requirement of section 23B?"
chapter_name: "FEDERAL RESERVE SYSTEM"
subchapter_number: "A"
subchapter_name: "BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM"
part_number: "223"
part_name: "TRANSACTIONS BETWEEN MEMBER BANKS AND THEIR AFFILIATES (REGULATION W)"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 371c(b)(1)(E), (b)(2)(A), and (f), 371c-1(e), 1828(j), 1468(a), and section 312(b)(2)(A) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5412)."
regulatory_source: "67 FR 76604, Dec. 12, 2002, unless otherwise noted."
cfr_part: "223"
---
# 223.51 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.