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


### Answer
The term **covered transaction** is defined in *12 U.S.C. § 371c* as the following:

> given to such term in section 371c of this title (but does not include any transaction which is exempt from such definition under subsection (d) of such section).

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

