Source: https://www.law.cornell.edu/cfr/text/17/247.772
Timestamp: 2016-02-07 09:48:36
Document Index: 464740848

Matched Legal Cases: ['art 247', '§ 247', '§ 247', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78']

17 CFR 247.772 - Exemption from the definition of “broker” for banks engaging in securities lending transactions. | US Law | LII / Legal Information Institute
CFR › Title 17 › Chapter II › Part 247 › Section 247.772 17 CFR 247.772 - Exemption from the definition of “broker” for banks engaging in securities lending transactions.
§ 247.772
Exemption from the definition of “broker” for banks engaging in securities lending transactions.
A bank is exempt from the definition of the term “broker” under section 3(a)(4) of the Act (15 U.S.C. 78c(a)(4)), to the extent that, as an agent, it engages in or effects securities lending transactions, and any securities lending services in connection with such transactions, with or on behalf of a person the bank reasonably believes to be:
A qualified investor as defined in section 3(a)(54)(A) of the Act (15 U.S.C. 78c(a)(54)(A)); or
Any employee benefit plan that owns and invests on a discretionary basis, not less than $ 25,000,000 in investments.
Securities lending transaction means a transaction in which the owner of a security lends the security temporarily to another party pursuant to a written securities lending agreement under which the lender retains the economic interests of an owner of such securities, and has the right to terminate the transaction and to recall the loaned securities on terms agreed by the parties.
Securities lending services means:
Selecting and negotiating with a borrower and executing, or directing the execution of the loan with the borrower;
Receiving, delivering, or directing the receipt or delivery of loaned securities;
Receiving, delivering, or directing the receipt or delivery of collateral;
Providing mark-to-market, corporate action, recordkeeping or other services incidental to the administration of the securities lending transaction;
Investing, or directing the investment of, cash collateral; or
Indemnifying the lender of securities with respect to various matters.
§ 247.772 Exemption from the definition of “broker” for banks engaging in securities lending transactions.
(a) A bank is exempt from the definition of the term “broker” under section 3(a)(4) of the Act (15 U.S.C. 78c(a)(4)), to the extent that, as an agent, it engages in or effects securities lending transactions, and any securities lending services in connection with such transactions, with or on behalf of a person the bank reasonably believes to be:
(1) A qualified investor as defined in section 3(a)(54)(A) of the Act (15 U.S.C. 78c(a)(54)(A)); or
(2) Any employee benefit plan that owns and invests on a discretionary basis, not less than $ 25,000,000 in investments.
(1) Selecting and negotiating with a borrower and executing, or directing the execution of the loan with the borrower;
(2) Receiving, delivering, or directing the receipt or delivery of loaned securities;
(3) Receiving, delivering, or directing the receipt or delivery of collateral;
(4) Providing mark-to-market, corporate action, recordkeeping or other services incidental to the administration of the securities lending transaction;
(5) Investing, or directing the investment of, cash collateral; or
(6) Indemnifying the lender of securities with respect to various matters.
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 CodeU.S. Code: Title 15 - COMMERCE AND TRADE§ 78c - Definitions and application§ 78o - Registration and regulation of brokers and dealers§ 78q - Records and reports§ 78w - Rules, regulations, and orders; annual reports§ 78mm - General exemptive authority