(a) Purpose. The purpose of this section is to limit the risks that
the failure of a large depository institution (whether or not that
institution is an insured depository institution) would pose to insured
depository institutions.
[12 USC 371b-2(a).
As added by act of Dec. 19, 1991 (105 Stat. 2362).]
1-200.2
(b) Aggregate limits on insured depository
institutions’ exposure to other depository institutions. The
Board shall, by regulation or order, prescribe standards that have
the effect of limiting the risks posed by an insured depository institution’s
exposure to any other depository institution.
[12 USC 371b-2(b).
As added by act of Dec. 19, 1991 (105 Stat. 2362).]
1-200.3
(c) Exposure defined.
(1) In general. For purposes of subsection (b), an insured depository institution’s
“exposure” to another depository institution means—
(A) all
extensions of credit to the other depository institution, regardless
of name or description, including—
(i) all deposits at the other
depository institution;
(ii) all purchases of securities or other assets from the other depository
institution subject to an agreement to repurchase; and
(iii) all guarantees, acceptances,
or letters of credit (including endorsements or standby letters of
credit) on behalf of the other depository institution;
(B) all purchases of
or investments in securities issued by the other depository institution;
(C) all securities
issued by the other depository institution accepted as collateral
for an extension of credit to any person; and
(D) all similar transactions that the
Board by regulation determines to be exposure for purposes of this
section.
(2) Exemptions. The Board may, at
its discretion, by regulation or order, exempt transactions from the
definition of “exposure” if it finds the exemptions to be in the public
interest and consistent with the purpose of this section.
(3) Attribution rule. For purposes of this section, any transaction
by an insured depository institution with any person is a transaction
with another depository institution to the extent that the proceeds
of the transaction are used for the benefit of, or transferred to,
that other depository institution.
[12 USC 371b-2(c).
As added by act of Dec. 19, 1991 (105 Stat. 2362.]
1-200.4
(d) Insured depository institution. For purposes of this section, the term “insured depository institution”
has the same meaning as in section 3 of the Federal Deposit Insurance
Act.
[12
USC 371b-2(d). As added by act of Dec. 19, 1991 (105 Stat. 2362).]
1-200.5
(e) Rulemaking authority;
enforcement. The Board may issue such regulations and orders,
including definitions consistent with this section, as may be necessary
to administer and carry out the purpose of this section. The appropriate
Federal banking agency shall enforce compliance with those regulations
under section 8 of the Federal Deposit Insurance Act.
[12 USC 371b-2(e).
As added by act of Dec. 19, 1991 (105 Stat. 2362).]
