Section 23.2 - Definitions(a)Affiliate means an affiliate as described in § 23.6 .(b)Capital and surplus means:(1) For qualifying community banking organizations that have elected to use the community bank leverage ratio framework, as set forth under the OCC's Capital Adequacy Standards at part 3 of this chapter:(i) A qualifying community banking organization's tier 1 capital, as used under § 3.12 of this chapter; plus.(ii) A qualifying community banking organization's allowance for loan and lease losses or adjusted allowances for credit losses, as applicable, as reported in the Consolidated Reports of Condition and Income (Call Report); or(2) For all other national banks:(i) A bank's tier 1 and tier 2 capital calculated under the OCC's risk-based capital standards set forth in part 3 of this chapter, as applicable, as reported in the Call Report; plus(ii) The balance of a bank's allowance for loan and lease losses or adjusted allowances for credit losses, as applicable, not included in the bank's Tier 2 capital, for purposes of the calculation of risk-based capital described in paragraph (b)(2)(i) of this section, as reported in the Call Report.(c)CEBA Lease means a personal property lease authorized under 12 U.S.C. 24 (Tenth).(d)Conforming lease means:(1) A CEBA Lease that conforms with the requirements of subparts A and B of this part; or(2) A Section 24(Seventh) Lease that conforms with the requirements of subparts A and C of this part.(e)Full-payout lease means a lease in which the national bank reasonably expects to realize the return of its full investment in the leased property, plus the estimated cost of financing the property over the term of the lease, from:(2) Estimated tax benefits; and(3) The estimated residual value of the property at the expiration of the lease term.(f)Net lease means a lease under which the national bank will not, directly or indirectly, provide or be obligated to provide for:(1) Servicing, repair, or maintenance of the leased property during the lease term;(2) Parts or accessories for the leased property;(3) Loan of replacement or substitute property while the leased property is being serviced;(4) Payment of insurance for the lessee, except where the lessee has failed in its contractual obligation to purchase or maintain required insurance; or(5) Renewal of any license or registration for the property unless renewal by the bank is necessary to protect its interest as owner or financier of the property.(g)Off-lease property means property that reverts to a national bank's possession or control upon the expiration of a lease or upon the default of the lessee.(h)Section 24(Seventh) Lease means a personal property lease authorized under 12 U.S.C. 24 (Seventh).61 FR 66560, Dec. 18, 1996, as amended at 79 FR 11312 , Feb. 28, 2014; 84 FR 4240 , Feb. 14, 2019; 84 FR 61794 , Nov. 13, 2019; 84 FR 69297 , Dec. 18, 2019 84 FR 4240 , 4/1/2019; 84 FR 4240 , 7/1/2019; 84 FR 61794 , 1/1/2020; 84 FR 69297 , 1/1/2020