### Question
What is the definition of principal underwriter?


### Answer
The definition of **principal underwriter** is as follows in *12 U.S.C. § 371c*:

> 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

#### Citation:
  - *12 U.S.C. § 371c*
  - Heading: **CHAPTER 3-FEDERAL RESERVE SYSTEM > SUBCHAPTER X-POWERS AND DUTIES OF MEMBER BANKS**

