Single-stage standing internal-audit test cycle over an institution's own caller-declared population of covered transactions with an affiliate. Per transaction, tests the Regulation W (12 CFR 223, eCFR 2026 codification) 10% single-affiliate and 20% aggregate-affiliate capital limits and the collateral-coverage percentage requirement on covered credit transactions; the qualitative 12 CFR 223.51 market-terms test is a caller-declared boolean the tester records for the artifact only, never a judgment it makes. Capital base, both limit percentages, and the collateral-coverage percentage all arrive as caller-declared policy_parameters cited with a required policy_vintage, never hardcoded. Either quantitative limit breached routes the standing test to internal audit as reviewer; a collateral shortfall with no capital breach flags review_required for the preparer/reviewer pair; both limits satisfied and full collateral coverage closes auto_pass. The standing internal-audit test-evidence pack closes with a preparer/reviewer pair rather than necessarily a named external approver, distinct from an externally-facing sign-off; where the institution runs this co-sourced an approver role binding is still available. This tool tracks and evidences the quantitative test only; it never itself determines that a transaction was conducted on market terms.
test_reg_w_affiliate_transactions{
"jsonrpc": "2.0",
"method": "tools/call",
"params": {
"name": "test_reg_w_affiliate_transactions",
"arguments": {}
},
"id": 1
}