principal underwriter
Defined in 1 place of the United States Code.
the term “principal underwriter” means any underwriter who, in connection with a primary distribution of securities—
(i) is in privity of contract with the issuer or an affiliated person of the issuer;
(ii) acting alone or in concert with one or more other persons, initiates or directs the formation of an underwriting syndicate; or
(iii) is allowed a rate of gross commission, spread, or other profit greater than the rate allowed another underwriter participating in the distribution.
Source
- 2013–present12 U.S.C. § 371CBanks and Banking · Restrictions on transactions with affiliates · in this section
the term "principal underwriter" means any underwriter who, in connection with a primary distribution of securities—
(i) is in privity of contract with the issuer or an affiliated person of the issuer;
(ii) acting alone or in concert with one or more other persons, initiates or directs the formation of an underwriting syndicate; or
(iii) is allowed a rate of gross commission, spread, or other profit greater than the rate allowed another underwriter participating in the distribution.
A member bank or any subsidiary or affiliate of a member bank shall not publish any advertisement or enter into any agreement stating or suggesting that the bank shall in any way be responsible for the obligations of its affiliates.
For the purpose of this section—
Source
- 1994–201612 U.S.C. § 371CBanks and Banking · Restrictions on transactions with affiliates · in this section