52. Can loans that were originated by an entity that was acquired count towards meeting the Target Market requirements of the acquiring entity?

If an entity acquires another entity, the financing activity of the acquired entity may count toward the Target Market requirements of the acquiring entity only if that activity is included in the non-consolidated financial statements of the acquiring entity at the end of the acquiring entity’s fiscal year. Generally, such activity may not count toward the Target Market requirements of the acquiring entity if the acquired entity remains a separate legal entity, even if its financing activity is included in the consolidated financial statements of the acquiring entity. However, if the acquiring entity is a DIHC, an Affiliate of a DIHC, or a Subsidiary of an IDI, the financing activity of the acquired entity will be included as part of the collective review of the acquiring entity.