What are the collateral requirements for a credit transaction with an affiliate?

CFR · 2024-01-01 · US · Title 12

(a) (b) (i) 100 percent of the amount of the transaction, if the collateral is: (A) Obligations of the United States or its agencies; (B) Obligations fully guaranteed by the United States or its agencies as to principal and interest; (C) Notes, drafts, bills of exchange, or bankers' acceptances that are eligible for rediscount or purchase by a Federal Reserve Bank; or (D) A segregated, earmarked deposit account with the member bank that is for the sole purpose of securing credit transactions between the member bank and its affiliates and is identified as such; (ii) 110 percent of the amount of the transaction, if the collateral is obligations of any State or political subdivision of any State; (iii) 120 percent of the amount of the transaction, if the collateral is other debt instruments, including loans and other receivables; or (iv) 130 percent of the amount of the transaction, if the collateral is stock, leases, or other real or personal property. (2) (c) (1) Low-quality assets; (2) Securities issued by any affiliate; (3) Equity securities issued by the member bank, and debt securities issued by the member bank that represent regulatory capital of the member bank; (4) Intangible assets (including servicing assets), unless specifically approved by the Board; and (5) Guarantees, letters of credit, and other similar instruments. (d) (2) (i) The amount of any security interest in the collateral that is senior to that of the member bank; or (ii) The amount of any credit secured

official document · source cfr-2024 · id 12:§ 223.14