Except as provided in this section, words and terms used in this subchapter that are defined in Finance Code, §31.002, have the same meanings as defined in the Finance Code. The following words and terms when used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise.

1. (1) Borrower--A person who is named as a borrower, obligor, or debtor in a loan or extension of credit, or any other person, including but not limited to a drawer, endorser, or guarantor who is considered to be a borrower under the direct benefit, source of repayment, or common enterprise tests set forth in §12.9 of this title (relating to Aggregation and Attribution).
2. (2) Equity Capital--For purposes of this subchapter only, Tier 1 Capital as that term is defined in 12 Code of Federal Regulations (CFR), §325.2(v).
3. (3) Federal funds sold--A transaction between depository institutions involving the transfer of immediately available funds resulting from credits to deposit balances at Federal Reserve Banks, or from credits to new or existing deposit balances due from a correspondent depository institution.

Source Note:The provisions of this §12.2 adopted to be effective March 1, 1996, 21 TexReg 1383; amended to be effective November 13, 1997, 22 TexReg 10954; amended to be effective July 10, 2003, 28 TexReg 5149.