Law Dictionary

finance subsidiary

a thrift institution's subsidiary company organized for the sole purpose of selling securities, typically preferred stock or mortgage-backed securities. The subsidiary may only sell those securities that the parent thrift itself is authorized to issue directly (or in the case of a mutual association those securities it would be permitted to issue if it converted to a stock institution). The subsidiary remits proceeds from the sale of securities to the parent thrift.

Source : U.S. Department of the Treasury

Language : English

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