12 CFR 201.4 - Availability and terms of credit.

§ 201.4 Availability and terms of credit.
(a) Primary credit. A Federal Reserve Bank may extend primary credit on a very short-term basis, usually overnight, as a backup source of funding to a depository institution that is in generally sound financial condition in the judgment of the Reserve Bank. Such primary credit ordinarily is extended with minimal administrative burden on the borrower. A Federal Reserve Bank also may extend primary credit with maturities up to a few weeks as a backup source of funding to a depository institution if, in the judgment of the Reserve Bank, the depository institution is in generally sound financial condition and cannot obtain such credit in the market on reasonable terms. Credit extended under the primary credit program is granted at the primary credit rate.
(b) Secondary credit. A Federal Reserve Bank may extend secondary credit on a very short-term basis, usually overnight, as a backup source of funding to a depository institution that is not eligible for primary credit if, in the judgment of the Reserve Bank, such a credit extension would be consistent with a timely return to a reliance on market funding sources. A Federal Reserve Bank also may extend longer-term secondary credit if the Reserve Bank determines that such credit would facilitate the orderly resolution of serious financial difficulties of a depository institution. Credit extended under the secondary credit program is granted at a rate above the primary credit rate.
(c) Seasonal credit. A Federal Reserve Bank may extend seasonal credit for periods longer than those permitted under primary credit to assist a smaller depository institution in meeting regular needs for funds arising from expected patterns of movement in its deposits and loans. An interest rate that varies with the level of short-term market interest rates is applied to seasonal credit.
(1) A Federal Reserve Bank may extend seasonal credit only if:
(i) The depository institution's seasonal needs exceed a threshold that the institution is expected to meet from other sources of liquidity (this threshold is calculated as a certain percentage, established by the Board of Governors, of the institution's average total deposits in the preceding calendar year); and
(ii) The Federal Reserve Bank is satisfied that the institution's qualifying need for funds is seasonal and will persist for at least four weeks.
(2) The Board may establish special terms for seasonal credit when depository institutions are experiencing unusual seasonal demands for credit in a period of liquidity strain.
(d) Emergency credit for others. In unusual and exigent circumstances and after consultation with the Board of Governors, a Federal Reserve Bank may extend credit to an individual, partnership, or corporation that is not a depository institution if, in the judgment of the Federal Reserve Bank, credit is not available from other sources and failure to obtain such credit would adversely affect the economy. If the collateral used to secure emergency credit consists of assets other than obligations of, or fully guaranteed as to principal and interest by, the United States or an agency thereof, credit must be in the form of a discount and five or more members of the Board of Governors must affirmatively vote to authorize the discount prior to the extension of credit. Emergency credit will be extended at a rate above the highest rate in effect for advances to depository institutions.
(e) Term auction facility. (1) A Federal Reserve Bank may make an advance to a depository institution pursuant to an auction conducted under this paragraph and at the rate specified in § 201.51(e) if, in the judgment of the Reserve Bank, the depository institution is in generally sound financial condition and is expected to remain in that condition during the term of the advance. An auction under this paragraph shall be conducted subject to such conditions, including conditions regarding the participants, size and duration of the facility, minimum bid amount, maximum bid amount, term of advance, minimum bid rate, use of proceeds, and schedule of auction dates, as the Board may establish from time to time in connection with the term auction facility. The Board may appoint one or more Reserve Banks or others to conduct the auction.
(2) Authorization for the term auction facility established by § 201.4(e)(1) shall expire on such date as set by the Board.
[Reg. A, 67 FR 67786, Nov. 7, 2002, as amended at 72 FR 71203, Dec. 17, 2007]

Title 12 published on 2014-01-01

no entries appear in the Federal Register after this date.

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 Code
U.S. Code: Title 12 - BANKS AND BANKING

§ 248 - Enumerated powers

§ 343 - Discount of obligations arising out of actual commercial transactions

§ 344 - Discount or purchase of bills to finance agricultural shipments

§ 345 - Rediscount of notes, drafts, and bills for member banks; limitation of amount

§ 346 - Discount of acceptances

§ 347 - Advances to member banks on their notes

§ 347a - Advances to member bank groups; inadequate amounts of eligible and acceptable assets; liability of individual banks in...security for Federal reserve notes; foreign obligations as security for advances

§ 347b - Advances to individual member banks on time or demand notes; maturities; time notes secured by mortgage loans covering one-to-four family residences

§ 347c - Advances to individuals, partnerships, and corporations; security; interest rate

§ 347d - Transactions between Federal Reserve banks and branch or agency of foreign bank; matters considered

§ 348 - Discount of obligations given for agricultural purposes or based upon livestock; collateral security for Federal reserve notes

§ 348a - Transactions with foreign banks; supervision of Board of Governors of the Federal Reserve System

§ 349 - Rediscount for intermediate credit banks of obligations given for agricultural purposes; discount of notes made pursuant to

§ 350 - Purchase and sale of debentures and like obligations of intermediate credit banks and agricultural credit corporations

§ 351 - Obligations of cooperative marketing association as issued or drawn for agricultural purposes

§ 352 - Limitation on amount of obligations of certain maturities which may be discounted and rediscounted

§ 352a - Repealed.

§ 353 - Purchase and sale of cable transfers, acceptances and bills

§ 354 - Transactions involving gold coin, bullion, and certificates

§ 355 - Purchase and sale of obligations of National, State, and municipal governments; open market operations; purchases and sales from...of obligations acquired directly from or loaned directly to United States

§ 356 - Purchase of commercial paper from member banks and sale of same

§ 357 - Establishment of rates of discount

§ 358 - Establishment of accounts for purposes of open-market operations; correspondents and agencies

§ 359 - Purchase and sale of acceptances of intermediate credit banks and agricultural credit corporations

§ 359a - Omitted

§ 360 - Receiving checks and drafts on deposit at par; charges for collections, exchange, and clearances

§ 361 - Bills receivable, bills of exchange, acceptances; regulations by Board of Governors

§ 362 to 364 - Omitted

§ 374 - Acting as agent for nonmember bank in getting discounts from reserve bank

§ 374a - Acting as agent for nonbanking borrower in making loans on securities to dealers in stocks, bonds, etc.; penalties

§ 461 - Reserve requirements

Title 12 published on 2014-01-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR 201 after this date.

  • 2014-01-06; vol. 79 # 3 - Monday, January 6, 2014
    1. 79 FR 615 - Extensions of Credit by Federal Reserve Banks
      GPO FDSys XML | Text
      FEDERAL RESERVE SYSTEM
      Notice of proposed rulemaking; request for public comment.
      Comments must be submitted by March 7, 2014.
      12 CFR Part 201