National bank and Federal savings association payment system memberships.

CFR · 2024-01-01 · US · Title 12

(a) (b) (1) (2) (3) (4) (5) (c) (2) (d) (i) Has complied with the safety and soundness review requirements in paragraph (e)(1) of this section; and (ii) Will comply with the safety and soundness review and notification requirements in paragraphs (e)(2) and (3) of this section. (2) (i) The rules of the payment system do not impose liability for operational losses on members; or (ii) The national bank's or Federal savings association's liability for operational losses is limited by the rules of the payment system to specific and appropriate limits that do not exceed the lower of: (A) The legal lending limit under 12 CFR part 32; or (B) The limit set for the bank or savings association by the OCC. (e) (i) Identify and evaluate the risks posed by membership in the payment system, taking into account whether the liability of the bank or savings association is limited; and (ii) Ensure that it can measure, monitor, and control the risks identified pursuant to paragraph (e)(1)(i) of this section. (2) After joining a payment system, a national bank or Federal savings association must manage the risks of the payment system on an ongoing basis. This ongoing risk management must: (i) Identify and evaluate the risks posed by membership in the payment system, taking into account whether the liability of the bank or savings association is limited; and (ii) Measure, monitor, and control the risks identified pursuant to paragraph (e)(2)(i) of this section. (3) If the national bank or Federal

official document · source cfr-2024 · id 12:§ 7.1026