### Question
What does similar entity mean?


### Answer
**Similar entity** has the following meaning in *12 U.S.C. § 2122*:

> 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 23-FARM CREDIT SYSTEM > SUBCHAPTER III-BANKS FOR COOPERATIVES > Part A-Banks for Cooperatives**

