TRANSACTIONS BETWEEN AFFILIATES Sample Clauses
The "Transactions Between Affiliates" clause governs how business dealings or agreements are conducted between a company and its related entities, such as subsidiaries, parent companies, or sister companies. Typically, this clause requires that any transactions with affiliates be conducted on terms that are fair and comparable to those that would be agreed upon with unrelated third parties, often referred to as "arm's length" terms. By setting these standards, the clause helps prevent conflicts of interest, ensures transparency, and protects the interests of all parties by reducing the risk of preferential treatment or unfair advantage in intra-group dealings.
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TRANSACTIONS BETWEEN AFFILIATES. (1) The Bank may, directly or indirectly, pay money or its equivalent to or for the benefit of, or extend credit in any form to or for the benefit of, its affiliates, or transfer assets between the Bank and its affiliates, or enter into or engage in any transaction that obligates the Bank to do the same only after:
(a) the Board has conducted an independent review of the action, which review is documented in writing; and,
(b) the Board has determined in writing that it is advantageous for the Bank to engage in such action, and that the action complies with all applicable laws, rules, regulations, and Comptroller’s issuances, including, but not limited to 12 C.F.R. Part 223.
(2) For purposes of this Article, “affiliate” shall have the meaning set forth in and 12 C.F.R. Part 223.
TRANSACTIONS BETWEEN AFFILIATES. Without limiting any other provisions in this Agreement, and to the fullest extent permitted by applicable law, the Members agree that the Manager shall have the absolute and sole discretion to make decisions related to the Company’s commercial relationships with Affiliates of the Manager or any of the Company’s officers, and any such relationships shall not constitute “corporate waste”, shall not violate the principles of good faith and fair dealing, and shall not otherwise give rise to any liability of Manager or the Company’s officers to the Company or the Company’s Members, provided, however, that any such commercial relationships shall be on terms no less favorable than terms offered by third parties and negotiated in an arm’s length transaction.