12 CFR 204.127 - Nondepository participation in “Federal funds” market.

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There is 1 rule appearing in the Federal Register for 12 CFR 204. View below or at eCFR (GPOAccess)
§ 204.127 Nondepository participation in “Federal funds” market.
(a) The Board has considered whether the use of interdepository institution loan participations (IDLPs) which involve participation by third parties other than depository institutions in Federal funds transactions, comes within the exemption from deposit classification for certain obligations owed by a depository institution to an institution exempt in § 204.2(a)(1)(vii)(A) of Regulation D. An IDLP transaction is one through which an institution that has sold Federal funds to a depository institution, subsequently sells or participates out that obligation to a nondepository third party without notifying the obligated institution.
(b) The Board's interpretation regarding Federal funds transactions (12 CFR 204.126) clarified that a depository institutions's liability must be issued to an exempt institution described in § 204.2(a)(1)(vii)(A) of Regulation D for its own account in order to come within the nondeposit exemption for interdepository liabilities. The Board regards transactions which result in third parties gaining access to the Federal funds market as contrary to the exemption contained in § 204.2(a)(1)(vii)(A) of Regulation D regardless of whether the nondepository institution third party is a party to the initial transaction or thereafter becomes a participant in the transaction through purchase of all or part of the obligation held by the selling depository institution.
(c) The Board regards the notice requirements set out in 12 CFR 204.126 as applicable to IDLP-type transactions as described herein so that a depository institution selling Federal funds must provide to the purchaser—
(1) Notice of its intention, at the time of the initial transaction, to sell or participate out its loan contract to a nondepository third party, and
(2) Full and prompt notice whenever it (the selling depository institution) subsequently sells or participates out its loan contract to a non-depository third party.
[52 FR 47695, Dec. 16, 1987]

Title 12 published on 2014-01-01

The following are only the Rules published in the Federal Register after the published date of Title 12.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2014-11-17; vol. 79 # 221 - Monday, November 17, 2014
    1. 79 FR 68349 - Reserve Requirements of Depository Institutions
      GPO FDSys XML | Text
      FEDERAL RESERVE SYSTEM
      Final rule.
      Effective date: December 17, 2014. Compliance dates: The new low reserve tranche and reserve requirement exemption amount will apply to the fourteen-day reserve maintenance period that begins January 22, 2015. For depository institutions that report deposit data weekly, this maintenance period corresponds to the fourteen-day computation period that begins December 23, 2014. For depository institutions that report deposit data quarterly, this maintenance period corresponds to the seven-day computation period that begins December 16, 2014. The new values of the nonexempt deposit cutoff level, the reserve requirement exemption amount, and the reduced reporting limit will be used to determine the frequency at which a depository institution submits deposit reports effective in either June or September 2015.
      12 CFR Part 204

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United States Code

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 204 after this date.

  • 2014-11-17; vol. 79 # 221 - Monday, November 17, 2014
    1. 79 FR 68349 - Reserve Requirements of Depository Institutions
      GPO FDSys XML | Text
      FEDERAL RESERVE SYSTEM
      Final rule.
      Effective date: December 17, 2014. Compliance dates: The new low reserve tranche and reserve requirement exemption amount will apply to the fourteen-day reserve maintenance period that begins January 22, 2015. For depository institutions that report deposit data weekly, this maintenance period corresponds to the fourteen-day computation period that begins December 23, 2014. For depository institutions that report deposit data quarterly, this maintenance period corresponds to the seven-day computation period that begins December 16, 2014. The new values of the nonexempt deposit cutoff level, the reserve requirement exemption amount, and the reduced reporting limit will be used to determine the frequency at which a depository institution submits deposit reports effective in either June or September 2015.
      12 CFR Part 204