What covered transactions are exempt from the quantitative limits, collateral requirements, and low-quality asset prohibition?

CFR · 2024-01-01 · US · Title 12

The following transactions are not subject to the quantitative limits of §§ 223.11 and 223.12, the collateral requirements of § 223.14, or the prohibition on the purchase of a low-quality asset of § 223.15. The transactions are, however, subject to the safety and soundness requirement of § 223.13. (a) (b) (c) (i) Obligations of the United States or its agencies; (ii) Obligations fully guaranteed by the United States or its agencies as to principal and interest; or (iii) 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. (2) (d) (e) (f) (1) The security has a “ready market,” as defined in 17 CFR 240.15c3-1(c)(11)(i); (2) The security is eligible for a State member bank to purchase directly, subject to the same terms and conditions that govern the investment activities of a State member bank, and the member bank records the transaction as a purchase of a security for purposes of its Call Report, consistent with the requirements for a State member bank; (3) The security is not a low-quality asset; (4) The member bank does not purchase the security during an underwriting, or within 30 days of an underwriting, if an affiliate is an underwriter of the security, unless the security is purchased as part of an issue of obligations of, or obligations fully guaranteed as to principal and interest by, the United States or its agencies; (5) The secur

official document · source cfr-2024 · id 12:§ 223.42