Source: http://www2.law.cornell.edu/cfr/text/12/204.136
Timestamp: 2013-12-10 17:38:25
Document Index: 619697557

Matched Legal Cases: ['art 204', '§ 204', '§ 204', 'art 204', 'art 204', 'art 204', '§ 204', '§ 204', '§ 204', '§ 204', 'art 204', '§ 248', '§ 461', '§ 601', '§ 611', '§ 3105']

12 CFR 204.136 - Treatment of trust overdrafts for reserve requirement reporting purposes. | Title 12 - Banks and Banking | Code of Federal Regulations | LII / Legal Information Institute
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12 CFR 204.136 - Treatment of trust overdrafts for reserve requirement reporting purposes.
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§ 204.136
Treatment of trust overdrafts for reserve requirement reporting purposes.
Under section 19(a) of the Federal Reserve Act (12 U.S.C. 461(a) ), the Board is authorized to define the terms used in section 19, and to prescribe regulations to implement and prevent evasions of the requirements of that section. Section 19(b) establishes general reserve requirements on transaction accounts and nonpersonal time deposits. Under section 19(b)(1)(F), the Board also is authorized to determine, by regulation or order, that an account or deposit is a transaction account if such account is used directly or indirectly for the purpose of making payments to third persons or others. This interpretation is adopted under these authorities.
(b) Netting of trust account balances.
(1) Not all depository institutions have treated overdrafts in trust accounts administered by a trust department in the same manner when calculating the balance in a commingled transaction account in the depository institution for the account of the trust department of the institution. In some cases, depository institutions carry the aggregate of the positive balances in the individual trust accounts as the balance on which reserves are computed for the commingled account. In other cases depository institutions net positive balances in some trust accounts against negative balances in other trust accounts, thus reducing the balance in the commingled account and lowering the reserve requirements. Except in limited circumstances, negative balances in individual trust accounts should not be netted against positive balances in other trust accounts when determining the balance in a trust department's commingled transaction account maintained in a depository institution's commercial department. The netting of positive and negative balances has the effect of reducing the aggregate of a commingled transaction account reported by the depository institution to the Federal Reserve and reduces the reserves the institution must hold against transaction accounts under Regulation D. Unless the governing trust agreement or state law authorizes the depository institution, as trustee, to lend money in one trust to another trust, the negative balances in effect, for purposes of Regulation D, represent a loan from the depository institution. Consequently, negative balances in individual trust accounts should not be netted against positive balances in other individual trust accounts, and the balance in any transaction account containing commingled trust balances should reflect positive or zero balances for each individual trust.
In order to meet the requirements of Regulation D, a depository institution must have procedures to determine the aggregate of trust department transaction account balances for Regulation D on a daily basis. The procedures must consider only the positive balances in individual trust accounts without netting negative balances except in those limited circumstances where loans are legally permitted from one trust to another, or where offsetting is permitted pursuant to trust law or written agreement, or where the amount that caused the overdraft is still available in a settlement, suspense or other trust account within the trust department and may be used to offset the overdraft.
Title 12 published on 2012-01-01The following are only the Rules published in the Federal Register after the published date of Title 12.For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.2012-11-05; vol. 77 # 214 - Monday, November 5, 201277 FR 66361 - Reserve Requirements of Depository Institutions: Reserves Simplification
typeregulations.gov FR Doc.2012-26731 RIN7100; 83 RegulationD Docket No.R-1433 FEDERAL RESERVE SYSTEM Final rule; delay of effective date. The effective date of amendments to 12 CFR 204.2(z), (ff), (gg) and (hh); §§ 204.5(b)(2), (d)(4)(i), (e)(1) and (e)(2); 204.6(a) and (b); and 204.10(b)(1), (b)(3), and (c), published April 12, 2012, at 77 FR 21846, is delayed from January 24, 2013, until June 27, 2013. 12 CFR Part 204 SummaryThe Board is delaying the effective date for implementation of certain provisions of its final rule amending the Board&apos;s Regulation D (Reserve Requirements of Depository Institutions) published in the Federal Register on April 12, 2012. The final rule&apos;s effective date is being delayed to allow for further development and testing of the automated systems necessary to support the implementation of certain provisions.
2012-10-31; vol. 77 # 211 - Wednesday, October 31, 201277 FR 65773 - Reserve Requirements of Depository Institutions
typeregulations.gov FR Doc.2012-26662 RIN7100; 93 RegulationD Docket No.R-1446 FEDERAL RESERVE SYSTEM Final rule. Effective Date: November 30, 2012. Compliance Dates: For depository institutions that report deposit data weekly, the new low reserve tranche and reserve requirement exemption amount will apply to the fourteen-day reserve computation period that begins Tuesday, November 27, 2012, and the corresponding fourteen-day reserve maintenance period that begins Thursday, December 27, 2012. For depository institutions that report deposit data quarterly, the new low reserve tranche and reserve requirement exemption amount will apply to the seven-day reserve computation period that begins Tuesday, December 18, 2012, and the corresponding seven-day reserve maintenance period that begins Thursday, January 17, 2013. For all depository institutions, these new values of the nonexempt deposit cutoff level, the reserve requirement exemption amount, and the reduced reporting limit will be used to determine the frequency at which a depository institution submits deposit reports effective in either June or September 2013. 12 CFR Part 204 SummaryThe Board is amending Regulation D, Reserve Requirements of Depository Institutions, to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2013. The Regulation D amendments set the amount of total reservable liabilities of each depository institution that is subject to a zero percent reserve requirement in 2013 at 12.4 million (from $11.5 million in 2012). This amount is known as the reserve requirement exemption amount. The Regulation D amendments also set the amount of net transaction accounts at each depository institution (over the reserve requirement exemption amount) that is subject to a three percent reserve requirement in 2013 at $79.5 million (from $71.0 million in 2012). This amount is known as the low reserve tranche. The adjustments to both of these amounts are derived using statutory formulas specified in the Federal Reserve Act. The Board is also announcing changes in two other amounts, the nonexempt deposit cutoff level and the reduced reporting limit, that are used to determine the frequency at which depository institutions must submit deposit reports.
2012-04-17; vol. 77 # 74 - Tuesday, April 17, 201277 FR 22666 - Payment System Risk Policy; Daylight Overdraft Posting Rules
typeregulations.gov FR Doc.2012-9211 RIN Docket No.OP-1440 FEDERAL RESERVE SYSTEM Policy statement. Effective Date: The PSR Policy revisions concerning separately-sorted savings bond redemptions will take effect on April 11, 2012. Revisions related to the elimination of the contractual clearing balance program are effective July 12, 2012. 12 CFR Part 204 SummaryThe Board of Governors of the Federal Reserve System (Board) has revised its Policy on Payment System Risk (PSR Policy) to modify the posting rules to conform with procedural changes to the redemption of separately-sorted savings bonds and to eliminate a reference to the contractual clearing balance program.
2012-04-12; vol. 77 # 71 - Thursday, April 12, 201277 FR 21846 - Reserve Requirements of Depository Institutions: Reserves Simplification
typeregulations.gov FR Doc.2012-8562 RIN7100-AD83 RegulationD Docket No.R-1433 FEDERAL RESERVE SYSTEM Final rule. Effective Date: This rule is effective on July 12, 2012, except that effective on January 24, 2013, the following sections are further amended: § 204.2(z), (ff), (gg) and (hh); § 204.5 (b)(2), (d)(4)(i), and (e); § 204.6 (a) and (b); § 204.10 (b)(1), (b)(3), and (c). 12 CFR Part 204 SummaryThe Board is amending Regulation D, Reserve Requirements of Depository Institutions, to simplify the administration of reserve requirements. The final rule creates a common two-week maintenance period for all depository institutions, creates a penalty-free band around reserve balance requirements in place of carryover and routine penalty waivers, discontinues as-of adjustments related to deposit report revisions, replaces all other as-of adjustments with direct compensation, and eliminates the contractual clearing balance program. The amendments are designed to reduce the administrative and operational costs associated with reserve requirements for depository institutions, the Board, and Federal Reserve Banks.
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.United States CodeUSC : Title 12 - BANKS AND BANKING§ 248 - Enumerated powers§ 461 - Reserve requirements§ 601 - Authorization; conditions and regulations§ 611 - Formation authorized; fiscal agents; depositaries in insular possessions§ 3105 - Authority of Federal Reserve System
Title 12 published on 2012-01-01The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR 204 after this date.2012-11-05; vol. 77 # 214 - Monday, November 5, 201277 FR 66361 - Reserve Requirements of Depository Institutions: Reserves Simplification