Definition of loan for the purposes of section 14, and of borrower for the purposes of sections 14, 15, and 18

(1) Loans within the meaning of section 14 are balance-sheet assets, derivatives, other than the writer's obligations from call options, and the guarantees assumed for them and other off-balance-sheet transactions. Balance-sheet assets within the meaning of the first sentence are 1. balances with central banks and postal giro offices, 2. debt instruments of public bodies and bills of exchange eligible for refinancing with central banks, 3. items in the course of collection for which corresponding payments have already been advanced, 4. claims on credit institutions and customers, including the trade receivables of credit institutions engaged in trading business, and claims under leasing agreements capitalised on the balance sheet in respect of payments that the lessee is or may be obliged to make, and the lessee's options to purchase the leased assets, where these provide an incentive to exercise the option, 5. debt securities and other fixed-income securities, insofar as they do not embody a right falling under the derivatives named in the first sentence, 6. shares and other non-fixed-income securities, insofar as they do not embody a right falling under the derivatives named in the first sentence, 7. holdings, 8. interests in affiliated undertakings, 9. (repealed), 10. other assets, insofar as they are subject to a counterparty default risk. The following are regarded as other off-balance-sheet transactions within the meaning of the first sentence: 1. own drafts outstanding that have been debited to borrowers, 2. endorsement liabilities from bills of exchange passed on, 3. sureties and guarantees for balance-sheet assets, 4. performance guarantees and guarantees and warranties other than those named in point 3, insofar as they do not relate to the derivatives named in the first sentence, 5. opening and confirmation of letters of credit, 6. unconditional obligations of building and loan associations to redeem third-party bridging and interim loans to building-society savers, 7. liability arising from providing security for third-party liabilities, 8. balance-sheet assets removed from the transferor's holdings under a repo transaction, which it has transferred to another party on the agreement that it must take them back on request, 9. sales of balance-sheet assets with recourse, where the credit risk remains with the selling institution, 10. forward purchases of balance-sheet assets, where there is an unconditional obligation to take delivery of the item to be delivered, 11. placement of forward deposits, 12. commitments to purchase and refinance, 13. credit commitments not yet drawn down, 14. credit derivatives, 15. claims under leasing agreements not yet capitalised on the balance sheet in respect of payments that the lessee is or may be obliged to make, and the lessee's options to purchase the leased assets, where these provide an incentive to exercise the option, and 16. off-balance-sheet transactions, insofar as they are subject to a counterparty default risk and are not covered by points 1 to 14.
(1a) Derivatives within the meaning of this provision are forward transactions or option transactions structured as a purchase, exchange, or by other reference to an underlying, whose value is determined by the underlying and whose value may change in future as a result of a settlement date deferred in time for at least one contracting party, including financial contracts for differences. An underlying within the meaning of the first sentence may also be a derivative.
(2) Two or more natural or legal persons or commercial partnerships are deemed a single borrower within the meaning of section 14 where 1. one of them can exercise a directly or indirectly controlling influence over the other or others. A directly or indirectly controlling influence exists in particular, a) for all undertakings that are consolidated within the meaning of section 290(2) of the Commercial Code, or b) for all undertakings connected by agreements providing that one undertaking is obliged to transfer the whole of its profit to another, or c) where one undertaking or person holds voting-right or capital interests of 50 percent or more in an undertaking, regardless of whether those interests are managed under a trust arrangement, 2. commercial partnerships or corporations and each personally liable partner, and partnership companies and each partner, 3. all undertakings that belong to the same group within the meaning of section 18 of the Stock Corporation Act. The aggregation criteria under points 1 to 3 are to be applied cumulatively.
(3) Two or more natural or legal persons who form a group of connected clients under Article 4(1), point 39, of Regulation (EU) No 575/2013 are deemed a single borrower within the meaning of sections 15 and 18.
(4) A supervisory body within the meaning of sections 15 and 17 is a body of the institution appointed to oversee the management, where the body's oversight powers are regulated by law.
(5) In the acquisition, for consideration, of monetary claims, the transferor of the claims is deemed the borrower within the meaning of sections 14 to 18, where it must answer for the fulfilment of the transferred claim or must reacquire it at the transferee's request; otherwise the debtor of the liability is deemed the borrower.
(6) (repealed)