Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United States, but which were acquired or engaged in before a particular date. Such activities may be continued under the "grandfather" clauses of the Bank Holding Company Act and the International Banking Act.
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Activities that are permitted when they otherwise would not be permitted because of a grandfather clause. A grandfather clause is a portion of a new law, regulation, or anything else that exempts certain persons or businesses from abiding by it. For example, suppose a country passes a law stating that it is illegal to own a cat. A grandfather clause may allow persons who already own cats to continue to keep them, but would prevent people who do not own cats from buying them. In this case, owning a cat is a grandfathered activity. Grandfathered activities are controversial, but they are also relatively common.
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