§ 4808. — Revising regulatory requirements for transfers of all types of assets with recourse.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4808]
TITLE 12--BANKS AND BANKING
CHAPTER 48--FINANCIAL INSTITUTIONS REGULATORY IMPROVEMENT
Sec. 4808. Revising regulatory requirements for transfers of all
types of assets with recourse
(a) Review and revision of regulations
(1) In general
During the 180-day period beginning on September 23, 1994, each
appropriate Federal banking agency shall, consistent with the
principles of safety and soundness and the public interest--
(A) review the agency's regulations and written policies
relating to transfers of assets with recourse by insured
depository institutions; and
(B) in consultation with the other Federal banking agencies,
promulgate regulations that better reflect the exposure of an
insured depository institution to credit risk from transfers of
assets with recourse.
(2) Regulations required
Before the end of the 180-day period beginning on September 23,
1994, each appropriate Federal banking agency shall prescribe the
regulations developed pursuant to paragraph (1)(B).
(b) Regulations required
(1) In general
After the end of the 180-day period beginning on September 23,
1994, the amount of risk-based capital required to be maintained,
under regulations prescribed by the appropriate Federal banking
agency, by any insured depository institution with respect to assets
transferred with recourse by such institution may not exceed the
maximum amount of recourse for which such institution is
contractually liable under the recourse agreement.
(2) Exception for safety and soundness
The appropriate Federal banking agency may require any insured
depository institution to maintain risk-based capital in an amount
greater than the amount determined under paragraph (1), if the
agency determines, by regulation or order, that such higher amount
is necessary for safety and soundness reasons.
(c) Coordination with section 1835(b) of this title
This section shall not be construed as superseding the applicability
of section 1835(b) of this title.
(d) Definitions
For purposes of this section, the terms ``appropriate Federal
banking agency'', ``Federal banking agency'', and ``insured depository
institution'' have the same meanings as in section 1813 of this title.
(Pub. L. 103-325, title III, Sec. 350, Sept. 23, 1994, 108 Stat. 2242.)
