Intercompany transaction: Transaction carried out between two units of the same corporation. Department of the Treasury: US Department of the Treasury Direct costs of financial distress: Costs such as fees or penalties incurred as a result of bankruptcy or liquidation proceedings. Subsidized financing: Funding provided by a government or other entity that is available at a below-market interest rate. Nonmember bank: Depository institution that is not a member of the Federal Reserve System. Specifically, a state-chartered commercial bank that has elected not to join the System.