–2. Interbank liabilities — Us Code Code § 371b
Us Code Code § 371b — –2. Interbank liabilities. Reproduced from the official United States Code, with a citation summary, verification link, and related provisions.
§ 371b. –2. Interbank liabilities
(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.
(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.
(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.
(d) Insured depository institution
For purposes of this section, the term "insured depository institution" has the same meaning as in section 1813 of this title.
(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 1818 of this title.
(Dec. 23, 1913, ch. 6, §23, as added Pub. L. 102–242, title III, §308(a), Dec. 19, 1991, 105 Stat. 2362.)
Statutory Notes and Related Subsidiaries
Effective Date
Pub. L. 102–242, title III, §308(c), Dec. 19, 1991, 105 Stat. 2363, provided that: "The amendment made by this section [enacting this section] shall become effective 1 year after the date of enactment of this Act [Dec. 19, 1991]."
Regulations
Pub. L. 102–242, title III, §308(b), Dec. 19, 1991, 105 Stat. 2362, provided that: "The Board shall prescribe reasonable transition rules to facilitate compliance with section 23 of the Federal Reserve Act [12 U.S.C. 371b–2] (as added by subsection (a))."
About This Section
12 U.S.C. § 371b is part of Title 12 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
This section may be cited in legal writing as 12 U.S.C. § 371b. For the most current official text, including any recent amendments, use the official source links below. Do not rely on this page as the sole authority for legal citation or litigation.
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