Equity Investment Law and Legal Definition
According to 12 CFR 362.2 [Title 12 -- Banks and Banking; Chapter III -- Federal Deposit Insurance Corporation; Subchapter B -- Regulations and Statements of General Policy; Part 362 -- Activities of Insured State Banks and Insured Savings Associations; Subpart A -- Activities of Insured State Banks], equity investment means “an ownership interest in any company; any membership interest that includes a voting right in any company; any interest in real estate; any transaction which in substance falls into any of these categories even though it may be structured as some other form of business transaction; and includes an equity security. The term "equity investment" does not include any of the foregoing if the interest is taken as security for a loan.”
