1.

3(ggg)(5) Definition of Swap Dealer - Decision Flow Chart

See 1.3(ggg)(5)
Flow Chart

Meets requirement of
1.3(ggg)(5)(i)(E)

Considered loan orig.

1.3(ggg)(5)(ii)

Yes
1

Insured depository inst.

(IDI) 1.3(ggg)(5)(i)

Swap entered into

...execution of agmt

Not connected to
originating loan

No

Yes

Not connected to
originating loan

No

1.3(ggg)(5)(i)(E)

Swap entered into

...transfer of principal

Swap =<90
Swap =<90
days before
days before
agmt?
transfer?
1.3(ggg)(5)(i)(A)

Source of
principal amt
=>aggregate
notional amt?

No

Not connected to
originating loan

IDI directly
transfers loan?

1.3(ggg)(5)(ii)(A)

Yes

No

Not connected to
originating loan

Meets requirement of
1.3(ggg)(5)(i)(D)

or

IDI part of
syndicate of
No
lenders of loan
source?
1.3(ggg)(5)(ii)(B)

or

Purchases or
receives
No
participation in
loan?
1.3(ggg)(5)(ii)(C)

Yes

Yes

Swap =<180
Swap =<180
days after
days after
amgt?
transfer?
1.3(ggg)(5)(i)(A)

No

Source of
principal amt
=>aggregate
notional amt?

Not connected to
originating loan

or
No

Otherwise is
source of funds
transferred?

Not connected to
originating loan

Yes

IDI committed
=>10% of max
principal amt?

Meets requirement of
1.3(ggg)(5)(i)(A)

No

Not connected to
originating loan

1.3(ggg)(5)(ii)(D)

1.3(ggg)(5)(i)(D)(3)

Yes

No

Yes

No

Not connected to
originating loan

Term sham:
i) regulatively defined?
ii) fraud consequence?
See 77 FR at 30620,
30622, 30623, 30708

Loan shall not include:

1.3(ggg)(5)(iii)

1.3(ggg)(5)(i)(D)(2)
Yes
1.3(ggg)(5)(i)(B)(1)

Swap terms
directly related
to loan terms?

1.3(ggg)(5)(iii)(A)
No

Not connected to
originating loan

Swap required
as condition to
hedge risk

Yes

Meets requirement of
1.3(ggg)(5)(i)(B)

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No

Not connected to
originating loan

1.3(ggg)(5)(i)(D)(1)

Yes

1.3(ggg)(5)(i)(B)(2)

IDI sole source

of funds under
loan?

Any trans. that

is a sham

Not connected to
originating loan

Not connected to
originating loan

No

Not connected to
originating loan

1.3(ggg)(5)(iii)(B)
Any synthetic
loan (CDS, etc)

No

No

Meets requirement of
1.3(ggg)(5)(i)(C)
Yes

See 17 CFR Part 43;

17 CFR Part 45;
17 CFR Part 46

No

Reporting guidance...
1.3(ggg)(5)(i)(F)
[ref: 7 U.S.C. 6r]

Yes

Duration does
not extend
beyond loan?
1.3(ggg)(5)(i)(C)

No

Not connected to
originating loan

Swap connected
to orig. loan

Is Swap
accepted by
DCO?