### Question
How is the term covered entity defined?


### Answer
The term **covered entity** is defined in *12 U.S.C. § 4703a* as the following:

> an entity in which a covered individual directly or indirectly holds a controlling interest

#### Citation:
  - *12 U.S.C. § 4703a*
  - Heading: **CHAPTER 47-COMMUNITY DEVELOPMENT BANKING > SUBCHAPTER I-COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTIONS**

