Source: https://www.law.cornell.edu/cfr/text/12/329.3
Timestamp: 2018-12-12 19:06:49
Document Index: 276206006

Matched Legal Cases: ['art 329', '§ 329', '§ 329', 'art 249', '§ 329', '§ 329', '§ 329', '§ 329', 'art 382', 'art 252', 'art 47', '§ 329', 'art 249', 'art 1805']

12 CFR 329.3 - Definitions. | US Law | LII / Legal Information Institute
CFR › Title 12 › Chapter III › Subchapter B › Part 329 › Subpart A › Section 329.3
12 CFR 329.3 - Definitions.
§ 329.3 Definitions.
Affiliated depository institution means with respect to an FDIC-supervised institution that is a depository institution, another depository institution that is a consolidated subsidiary of a bank holding company or savings and loan holding company of which the FDIC-supervised institution is also a consolidated subsidiary.
Bank holding company is defined in section 2 of the
, as amended ( 12 U.S.C. 1841et seq.).
Brokered deposit means any deposit held at the FDIC-supervised institution that is obtained, directly or indirectly, from or through the mediation or assistance of a deposit broker as that term is defined in section 29 of the
( 12 U.S.C. 1831f(g)), and includes a reciprocal brokered deposit and a brokered sweep deposit.
Brokered sweep deposit means a deposit held at the FDIC-supervised institution by a customer or counterparty through a contractual feature that automatically transfers to the FDIC-supervised institution from another regulated financial company at the close of each business day amounts identified under the agreement governing the account from which the amount is being transferred.
Calculation date means any date on which an FDIC-supervised institution calculates its liquidity coverage ratio under § 329.10.
Client pool security means a security that is owned by a customer of the FDIC-supervised institution that is not an asset of the FDIC-supervised institution, regardless of a FDIC-supervised institution's hypothecation rights with respect to the security.
(1) A deposit of a public sector entity held at the FDIC-supervised institution that is secured under applicable law by a lien on assets owned by the FDIC-supervised institution and that gives the depositor, as holder of the lien, priority over the assets in the event the FDIC-supervised institution enters into receivership, bankruptcy, insolvency, liquidation, resolution, or similar proceeding; or
(2) A deposit of a fiduciary account held at the FDIC-supervised institution for which the FDIC-supervised institution is a fiduciary and sets aside assets owned by the FDIC-supervised institution as security under 12 CFR 9.10 (national bank) or 12 CFR 150.300 through 150.320 (Federal savings associations) and that gives the depositor priority over the assets in the event the FDIC-supervised institution enters into receivership, bankruptcy, insolvency, liquidation, resolution, or similar proceeding.
(1) The FDIC-supervised institution may not refuse to extend credit or funding under the facility; or
(2) The FDIC-supervised institution may refuse to extend credit under the facility (to the extent permitted under applicable law) only upon the satisfaction or occurrence of one or more specified conditions not including change in financial condition of the borrower, customary notice, or administrative conditions.
Consolidated subsidiary means a company that is consolidated on the balance sheet of an FDIC-supervised institution or other company under GAAP.
Controlled subsidiary means, with respect to a company or An FDIC-supervised institution a consolidated subsidiary or a company that otherwise meets the definition of “subsidiary” in section 2(d) of the
( 12 U.S.C. 1841(d)).
(i) A grandfathered unitary savings and loan holding company as defined in section 10(c)(9)(A) of the
( 12 U.S.C. 1461et seq.); and
(ii) As of June 30 of the previous calendar year, derived 50 percent or more of its total consolidated assets or 50 percent of its total revenues on an enterprise-wide basis (as calculated under GAAP) from activities that are not financial in nature under section 4(k) of the Bank Holding Company Act ( 12 U.S.C. 1842(k));
(i) A top-tier depository institution holding company that, as of June 30 of the previous calendar year, held 25 percent or more of its total consolidated assets in subsidiaries that are insurance underwriting companies (other than assets associated with insurance for credit risk); and
(ii) For purposes of paragraph 3(i) of this definition, the company must calculate its total consolidated assets in accordance with GAAP, or if the company does not calculate its total consolidated assets under GAAP for any regulatory purpose (including compliance with applicable securities laws), the company may estimate its total consolidated assets, subject to review and adjustment by the Board of Governors of the
Covered nonbank company means a designated company that the Board of Governors of the
has required by rule or order to comply with the requirements of 12 CFR part 249.
Customer short position means a legally binding written agreement pursuant to which the customer must deliver to the FDIC-supervised institution a non-cash asset that the customer has already sold.
Deposit means “deposit” as defined in section 3(l) of the
( 12 U.S.C. 1813(l)) or an equivalent liability of the FDIC-supervised institution in a jurisdiction outside of the United States.
Depository institution is defined in section 3(c) of the
( 12 U.S.C. 1813(c)).
Deposit insurance means deposit insurance provided by the
( 12 U.S.C. 1811et seq.).
Derivative transaction means a financial contract whose value is derived from the values of one or more underlying assets, reference rates, or indices of asset values or reference rates. Derivative contracts include interest rate derivative contracts, exchange rate derivative contracts, equity derivative contracts, commodity derivative contracts, credit derivative contracts, forward contracts, and any other instrument that poses similar counterparty credit risks. Derivative contracts also include unsettled securities, commodities, and foreign currency exchange transactions with a contractual settlement or delivery lag that is longer than the lesser of the market standard for the particular instrument or five business days. A derivative does not include any identified banking product, as that term is defined in section 402(b) of the
( 7 U.S.C. 27(b)), that is subject to section 403(a) of that Act ( 7 U.S.C. 27a(a)).
Designated company means a company that the Financial Stability Oversight Council has determined under section 113 of the Dodd-Frank Act ( 12 U.S.C. 5323) shall be supervised by the Board of Governors of the
and for which such determination is still in effect.
Dodd-Frank Act means the
, Public Law 111-203, 124 Stat. 1376 (2010).
Eligible HQLA means a high-quality liquid asset that meets the requirements set forth in § 329.22.
FDIC means the
FDIC-supervised institution means any state nonmember bank or state savings association.
Foreign withdrawable reserves means a FDIC-supervised institution's balances held by or on behalf of the FDIC-supervised institution at a foreign central bank that are not subject to restrictions on the FDIC-supervised institution's ability to use the reserves.
High-quality liquid asset (HQLA) means an asset that is a level 1 liquid asset, level 2A liquid asset, or level 2B liquid asset, in accordance with the criteria set forth in § 329.20.
HQLA amount means the HQLA amount as calculated under § 329.21.
Identified company means any company that the FDIC has determined should be treated for the purposes of this part the same as a regulated financial company, investment company, non-regulated fund, pension fund, or investment adviser, based on activities similar in scope, nature, or operations to those entities.
Investment adviser means a company registered with the SEC as an investment adviser under the
( 15 U.S.C. 80b-1et seq.) or foreign equivalents of such company.
Investment company means a person or company registered with the SEC under the
( 15 U.S.C. 80a-1et seq.) or foreign equivalents of such persons or companies.
Liquid and readily-marketable has the meaning given the term in 12 CFR 249.3.
Multilateral development bank means the
, the European Investment Bank, the European Investment Fund, the Nordic Investment Bank, the Caribbean Development Bank, the Islamic Development Bank, the Council of Europe Development Bank, and any other entity that provides financing for national or regional development in which the U.S. government is a shareholder or contributing member or which the FDIC determines poses comparable risk.
Non-regulated fund means any hedge fund or private equity fund whose investment adviser is required to file SEC Form PF (Reporting Form for Investment Advisers to Private Funds and Certain Commodity Pool Operators and Commodity Trading Advisors), other than a small business investment company as defined in section 102 of the
( 15 U.S.C. 661et seq.).
Operational deposit means unsecured wholesale funding or a collateralized deposit that is necessary for the FDIC-supervised institution to provide operational services as an independent third-party intermediary, agent, or administrator to the wholesale customer or counterparty providing the unsecured wholesale funding or collateralized deposit. In order to recognize a deposit as an operational deposit for purposes of this part, an FDIC-supervised institution must comply with the requirements of § 329.4(b) with respect to that deposit.
Pension fund means an employee benefit plan as defined in paragraphs (3) and (32) of section 3 of the Employee Retirement Income and Security Act of 1974 ( 29 U.S.C. 1001et seq.), a “governmental plan” (as defined in 29 U.S.C. 1002(32)) that complies with the tax deferral qualification requirements provided in the
, or any similar employee benefit plan established under the laws of a foreign jurisdiction.
(1) Any exchange registered with the SEC as a national securities exchange under section 6 of the
( 15 U.S.C. 78f); or
(2) The agreement provides the FDIC-supervised institution the right to accelerate, terminate, and close-out on a net basis all transactions under the agreement and to liquidate or set-off collateral promptly upon an event of default, including upon an event of receivership, conservatorship, insolvency, liquidation, or similar proceeding, of the counterparty, provided that, in any such case,
(A) In receivership, conservatorship, or resolution under the
, Title II of the Dodd-Frank Act, or under any similar insolvency law applicable to GSEs, or laws of foreign jurisdictions that are substantially similar 1 to the U.S. laws referenced in this paragraph (2)(i)(A) in order to facilitate the orderly resolution of the defaulting counterparty; or
1 The FDIC expects to evaluate jointly with the Federal Reserve and the OCC whether foreign special resolution regimes meet the requirements of this paragraph.
(ii) The agreement may limit the right to accelerate, terminate, and close-out on a net basis all transactions under the agreement and to liquidate or set-off collateral promptly upon an event of default of the counterparty to the extent necessary for the counterparty to comply with the requirements of part 382 of this title, subpart I of part 252 of this title or part 47 of this title, as applicable;
(4) In order to recognize an agreement as a qualifying master netting agreement for purposes of this subpart, an FDIC-supervised institution must comply with the requirements of § 329.4(a) with respect to that agreement.
Reciprocal brokered deposit means a brokered deposit that an FDIC-supervised institution receives through a deposit placement network on a reciprocal basis, such that:
(1) For any deposit received, the FDIC-supervised institution (as agent for the depositors) places the same amount with other depository institutions through the network; and
(2) A company included in the organization chart of a depository institution holding company on the Form FR Y-6, as listed in the hierarchy report of the depository institution holding company produced by the National Information Center (NIC) Web site, 2 provided that the top-tier depository institution holding company is subject to a minimum liquidity standard under 12 CFR part 249;
(3) A depository institution; foreign bank; credit union; industrial loan company, industrial bank, or other similar institution described in section 2 of the
, as amended ( 12 U.S.C. 1841et seq.); national bank, state member bank, or state non-member bank that is not a depository institution;
(5) A securities holding company as defined in section 618 of the Dodd-Frank Act ( 12 U.S.C. 1850a); broker or dealer registered with the SEC under section 15 of the Securities Exchange Act ( 15 U.S.C. 78o); futures commission merchant as defined in section 1a of the
of 1936 ( 7 U.S.C. 1et seq.); swap dealer as defined in section 1a of the
( 7 U.S.C. 1a); or security-based swap dealer as defined in section 3 of the Securities Exchange Act ( 15 U.S.C. 78c);
(6) A designated financial market utility, as defined in section 803 of the Dodd-Frank Act ( 12 U.S.C. 5462); and
(ii) Small business investment companies, as defined in section 102 of the
( 15 U.S.C. 661et seq.);
(iii) Entities designated as Community Development Financial Institutions (CDFIs) under 12 U.S.C. 4701et seq. and 12 CFR part 1805; or
(iv) Central banks, the Bank for International Settlements, the
, or multilateral development banks.
(1) Balances held in a master account of the FDIC-supervised institution at a Federal Reserve Bank, less any balances that are attributable to any respondent of the FDIC-supervised institution if the FDIC-supervised institution is a correspondent for a pass-through account as defined in section 204.2(l) of Regulation D ( 12 CFR 204.2(l));
(2) Balances held in a master account of a correspondent of the FDIC-supervised institution that are attributable to the FDIC-supervised institution if the FDIC-supervised institution is a respondent for a pass-through account as defined in section 204.2(l) of Regulation D;
(3) “Excess balances” of the FDIC-supervised institution as defined in section 204.2(z) of Regulation D ( 12 CFR 204.2(z)) that are maintained in an “excess balance account” as defined in section 204.2(aa) of Regulation D ( 12 CFR 204.2(aa)) if the FDIC-supervised institution is an excess balance account participant; or
(4) “Term deposits” of the FDIC-supervised institution as defined in section 204.2(dd) of Regulation D ( 12 CFR 204.2(dd)) if such term deposits are offered and maintained pursuant to terms and conditions that:
(i) The FDIC-supervised institution manages its transactions with the business customer, including deposits, unsecured funding, and credit facility and liquidity facility transactions, in the same way it manages its transactions with individuals;
Retail deposit means a demand or term deposit that is placed with the FDIC-supervised institution by a retail customer or counterparty, other than a brokered deposit.
Savings and loan holding company means a savings and loan holding company as defined in section 10 of the
( 12 U.S.C. 1467a).
SEC means the
Secured funding transaction means any funding transaction that is subject to a legally binding agreement as of the calculation date and gives rise to a cash obligation of the FDIC-supervised institution to a counterparty that is secured under applicable law by a lien on assets owned by the FDIC-supervised institution, which gives the counterparty, as holder of the lien, priority over the assets in the event the FDIC-supervised institution enters into receivership, bankruptcy, insolvency, liquidation, resolution, or similar proceeding. Secured funding transactions include repurchase transactions, loans of collateral to the FDIC-supervised institution's customers to effect short positions, other secured loans, and borrowings from a Federal Reserve Bank.
Secured lending transaction means any lending transaction that is subject to a legally binding agreement of the calculation date and gives rise to a cash obligation of a counterparty to the FDIC-supervised institution that is secured under applicable law by a lien on assets owned by the counterparty, which gives the FDIC-supervised institution, as holder of the lien, priority over the assets in the event the counterparty enters into receivership, bankruptcy, insolvency, liquidation, resolution, or similar proceeding, including reverse repurchase transactions and securities borrowing transactions.
Securities Exchange Act means the
( 15 U.S.C. 78aet seq.).
(2) The depositor that holds the account has another established relationship with the FDIC-supervised institution such as another deposit account, a loan, bill payment services, or any similar service or product provided to the depositor that the FDIC-supervised institution demonstrates to the satisfaction of the FDIC would make deposit withdrawal highly unlikely during a liquidity stress event.
U.S. government-sponsored enterprise means an entity established or chartered by the Federal government to serve public purposes specified by the United States
, but whose debt obligations are not explicitly guaranteed by the full faith and credit of the United States government.
Unsecured wholesale funding means a liability or general obligation of the FDIC-supervised institution to a wholesale customer or counterparty that is not secured under applicable law by a lien on assets owned by the FDIC-supervised institution, including a wholesale deposit.
[ 79 FR 61523, Oct. 10, 2014, as amended at 81 FR 71354, Oct. 17, 2016; 82 FR 50261, Oct. 30, 2017; 82 FR 61443, Dec. 28, 2017; 83 FR 44455, Aug. 31, 2018]
2018-08-31; vol. 83 # 170 - Friday, August 31, 2018
83 FR 44451 - Liquidity Coverage Ratio Rule: Treatment of Certain Municipal Obligations as High-Quality Liquid Assets
FR Doc. 2018-18610
RIN 1557-AE36
Docket No. ID OCC-2018-0013
Docket No. R-1616
The interim final rule is effective on August 31, 2018. Comments on the interim final rule must be received by October 1, 2018.
The OCC, the Board, and the FDIC (collectively, the agencies) are jointly issuing and inviting comment on an interim final rule that amends the agencies&apos; liquidity coverage ratio (LCR) rule to treat liquid and readily-marketable, investment grade municipal obligations as high-quality liquid assets (HQLA). Section 403 of the Economic Growth, Regulatory Relief, and Consumer Protection Act amends section 18 of the Federal Deposit Insurance Act and requires the agencies, for purposes of their LCR rule and any other regulation that incorporates a definition of the term “high-quality liquid asset” or another substantially similar term, to treat a municipal obligation as HQLA (that is a level 2B liquid asset) if that obligation is, as of the LCR calculation date, “liquid and readily-marketable” and “investment grade.”
12 CFR 329.4 — Certain Operational Requirements.
12 CFR 382.1 — Definitions.