Nondepository participation in “Federal funds” market.

CFR · 2024-01-01 · US · Title 12

(a) The Board has considered whether the use of (b) The Board's interpretation regarding Federal funds transactions (12 CFR 204.126) clarified that a depository institutions's liability must be issued to an exempt institution described in § 204.2(a)(1)(vii)(A) of Regulation D for its own account in order to come within the nondeposit exemption for interdepository liabilities. The Board regards transactions which result in third parties gaining access to the Federal funds market as contrary to the exemption contained in § 204.2(a)(1)(vii)(A) of Regulation D regardless of whether the nondepository institution third party is a party to the initial transaction or thereafter becomes a participant in the transaction through purchase of all or part of the obligation held by the (c) The Board regards the notice requirements set out in 12 CFR 204.126 as applicable to IDLP-type transactions as described herein so that a depository institution (1) Notice of its intention, at the time of the initial transaction, to sell or participate out its loan contract to a nondepository third party, and (2) Full and prompt notice whenever it (the

official document · source cfr-2024 · id 12:§ 204.127