Credit exposure.

CFR · 2024-01-01 · US · Title 12

(a) (2) Where a bank is no longer able to demonstrate that a correspondent is at least adequately capitalized for the purposes of § 206.4(a) of this part, including where the bank cannot obtain adequate information concerning the capital ratios of the correspondent, the bank shall reduce its credit exposure to comply with the requirements of § 206.4(a)(1) of this part within 120 days after the date when the current Report of Condition and Income or other relevant report normally would be available. (b) (c) (d) (1) Transactions, including reverse repurchase agreements, to the extent that the transactions are secured by government securities or readily marketable collateral, as defined in paragraph (f) of this section, based on the current market value of the collateral; (2) The proceeds of checks and other cash items deposited in an account at a correspondent that are not yet available for withdrawal; (3) Quality assets, as defined in paragraph (f) of this section, on which the correspondent is secondarily liable, or obligations of the correspondent on which a creditworthy obligor in addition to the correspondent is available, including but not limited to: (i) Loans to third parties secured by stock or debt obligations of the correspondent; (ii) Loans to third parties purchased from the correspondent with recourse; (iii) Loans or obligations of third parties backed by stand-by letters of credit issued by the correspondent; or (iv) Obligations of the correspondent backed by sta

official document · source cfr-2024 · id 12:§ 206.4