### Question
How does the law define similar entity?


### Answer
Under *12 U.S.C. § 2122*, **similar entity** is defined as:

> an entity that, while not eligible for a loan under section 2129 of this title, is functionally similar to an entity eligible for a loan under section 2129 of this title in that it derives a majority of its income from, or has a majority of its assets invested in, the conduct of activities functionally similar to those conducted by the entity

#### Citation:
  - *12 U.S.C. § 2122*
  - Heading: **CHAPTER 22-TYING ARRANGEMENTS > SUBCHAPTER III-BANKS FOR COOPERATIVES > Part A-Banks for Cooperatives**

