(3) Definitions For the purpose of this subsection— (A) the term “security” has the meaning given to such term in section 78c(a)(10) of title 15 ; and (B) 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.


12 USC § 371c-1(b)(3)

Scoping language

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