§ 371b-2. — Interbank liabilities.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC371b-2]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER X--POWERS AND DUTIES OF MEMBER BANKS
Sec. 371b-2. Interbank liabilities
(a) Purpose
The purpose of this section is to limit the risks that the failure
of a large depository institution (whether or not that institution is an
insured depository institution) would pose to insured depository
institutions.
(b) Aggregate limits on insured depository institutions' exposure to
other depository institutions
The Board shall, by regulation or order, prescribe standards that
have the effect of limiting the risks posed by an insured depository
institution's exposure to any other depository institution.
(c) ``Exposure'' defined
(1) In general
For purposes of subsection (b) of this section, an insured
depository institution's ``exposure'' to another depository
institution means--
(A) all extensions of credit to the other depository
institution, regardless of name or description, including--
(i) all deposits at the other depository institution;
(ii) all purchases of securities or other assets from
the other depository institution subject to an agreement to
repurchase; and
(iii) all guarantees, acceptances, or letters of credit
(including endorsements or standby letters of credit) on
behalf of the other depository institution;
(B) all purchases of or investments in securities issued by
the other depository institution;
(C) all securities issued by the other depository
institution accepted as collateral for an extension of credit to
any person; and
(D) all similar transactions that the Board by regulation
determines to be exposure for purposes of this section.
(2) Exemptions
The Board may, at its discretion, by regulation or order, exempt
transactions from the definition of ``exposure'' if it finds the
exemptions to be in the public interest and consistent with the
purpose of this section.
(3) Attribution rule
For purposes of this section, any transaction by an insured
depository institution with any person is a transaction with another
depository institution to the extent that the proceeds of the
transaction are used for the benefit of, or transferred to, that
other depository institution.
(d) Insured depository institution
For purposes of this section, the term ``insured depository
institution'' has the same meaning as in section 1813 of this title.
(e) Rulemaking authority; enforcement
The Board may issue such regulations and orders, including
definitions consistent with this section, as may be necessary to
administer and carry out the purpose of this section. The appropriate
Federal banking agency shall enforce compliance with those regulations
under section 1818 of this title.
(Dec. 23, 1913, ch. 6, Sec. 23, as added Pub. L. 102-242, title III,
Sec. 308(a), Dec. 19, 1991, 105 Stat. 2362.)
Effective Date
Section 308(c) of Pub. L. 102-242 provided that: ``The amendment
made by this section [enacting this section] shall become effective 1
year after the date of enactment of this Act [Dec. 19, 1991].''
Regulations
Section 308(b) of Pub. L. 102-242 provided that: ``The Board shall
prescribe reasonable transition rules to facilitate compliance with
section 23 of the Federal Reserve Act [12 U.S.C. 371b-2] (as added by
subsection (a)).''
