12 CFR 211.2 - Definitions.

§ 211.2 Definitions.

Unless otherwise specified, for purposes of this subpart:

(a) An affiliate of an organization means:

(1) Any entity of which the organization is a direct or indirect subsidiary; or

(2) Any direct or indirect subsidiary of the organization or such entity.

(b)Capital Adequacy Guidelines means the “Capital Adequacy Guidelines for State Member Banks: Risk-Based Measure” ( 12 CFR part 208, app. A) or the “Capital Adequacy Guidelines for Bank Holding Companies: Risk-Based Measure” ( 12 CFR part 225, app. A).

(c)Capital and surplus means, unless otherwise provided in this part:

(1) For organizations subject to the Capital Adequacy Guidelines:

(i) Tier 1 and tier 2 capital included in an organization's risk-based capital (under the Capital Adequacy Guidelines); and

(ii) The balance of allowance for loan and lease losses not included in an organization's tier 2 capital for calculation of risk-based capital, based on the organization's most recent consolidated Report of Condition and Income.

(2) For all other organizations, paid-in and unimpaired capital and surplus, and includes undivided profits but does not include the proceeds of capital notes or debentures.

(d)Directly or indirectly, when used in reference to activities or investments of an organization, means activities or investments of the organization or of any subsidiary of the organization.

(e)Eligible country means any country:

(1) For which an allocated transfer risk reserve is required pursuant to § 211.43 of this part and that has restructured its sovereign debt held by foreign creditors; and

(2) Any other country that the Board deems to be eligible.

(f) An Edge corporation is engaged in banking if it is ordinarily engaged in the business of accepting deposits in the United States from nonaffiliated persons.

(g)Engaged in business or engaged in activities in the United States means maintaining and operating an office (other than a representative office) or subsidiary in the United States.

(h)Equity means an ownership interest in an organization, whether through:

(1) Voting or nonvoting shares;

(2) General or limited partnership interests;

(3) Any other form of interest conferring ownership rights, including warrants, debt, or any other interests that are convertible into shares or other ownership rights in the organization; or

(4) Loans that provide rights to participate in the profits of an organization, unless the investor receives a determination that such loans should not be considered equity in the circumstances of the particular investment.

(i)Foreign or foreign country refers to one or more foreign nations, and includes the overseas territories, dependencies, and insular possessions of those nations and of the United States, and the Commonwealth of Puerto Rico.

(j)Foreign bank means an organization that:

(1) Is organized under the laws of a foreign country;

(2) Engages in the business of banking;

(3) Is recognized as a bank by the bank supervisory or monetary authority of the country of its organization or principal banking operations;

(4) Receives deposits to a substantial extent in the regular course of its business; and

(5) Has the power to accept demand deposits.

(k)Foreign branch means an office of an organization (other than a representative office) that is located outside the country in which the organization is legally established and at which a banking or financing business is conducted.

(l)Foreign person means an office or establishment located outside the United States, or an individual residing outside the United States.

(m)Investment means:

(1) The ownership or control of equity;

(2) Binding commitments to acquire equity;

(3) Contributions to the capital and surplus of an organization; or

(4) The holding of an organization's subordinated debt when the investor and the investor's affiliates hold more than 5 percent of the equity of the organization.

(n)Investment grade means a security that is rated in one of the four highest rating categories by:

(1) Two or more NRSROs; or

(2) One NRSRO if the security has been rated by only one NRSRO.

(o)Investor means an Edge corporation, agreement corporation, bank holding company, or member bank.

(p)Joint venture means an organization that has 20 percent or more of its voting shares held directly or indirectly by the investor or by an affiliate of the investor under any authority, but which is not a subsidiary of the investor or of an affiliate of the investor.

(q)Loans and extensions of credit means all direct and indirect advances of funds to a person made on the basis of any obligation of that person to repay the funds.

(r)NRSRO means a nationally recognized statistical rating organization as designated by the Securities and Exchange Commission.

(s)Organization means a corporation, government, partnership, association, or any other entity.

(t)Person means an individual or an organization.

(u)Portfolio investment means an investment in an organization other than a subsidiary or joint venture.

(v)Representative office means an office that:

(1) Engages solely in representational and administrative functions (such as soliciting new business or acting as liaison between the organization's head office and customers in the United States); and

(2) Does not have authority to make any business decision (other than decisions relating to its premises or personnel) for the account of the organization it represents, including contracting for any deposit or deposit-like liability on behalf of the organization.

(w)Subsidiary means an organization that has more than 50 percent of its voting shares held directly or indirectly, or that otherwise is controlled or capable of being controlled, by the investor or an affiliate of the investor under any authority. Among other circumstances, an investor is considered to control an organization if:

(1) The investor or an affiliate is a general partner of the organization; or

(2) The investor and its affiliates directly or indirectly own or control more than 50 percent of the equity of the organization.

(x)Tier 1 capital has the same meaning as provided under the Capital Adequacy Guidelines.

(y)Well capitalized means:

(1) In relation to a parent member or insured bank, that the standards set out in § 208.43(b)(1) of Regulation H ( 12 CFR 208.43(b)(1)) are satisfied;

(2) In relation to a bank holding company, that the standards set out in § 225.2(r)(1) of Regulation Y ( 12 CFR 225.2(r)(1)) are satisfied; and

(3) In relation to an Edge or agreement corporation, that it has tier 1 and total risk-based capital ratios of 6.0 and 10.0 percent, respectively, or greater.

(z)Well managed means that the Edge or agreement corporation, any parent insured bank, and the bank holding company received a composite rating of 1 or 2, and at least a satisfactory rating for management if such a rating is given, at their most recent examination or review.

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

§ 221 - Definitions

§ 221a - Additional definitions

§ 222 - Federal reserve districts; membership of national banks

§ 223 - Number of Federal reserve cities in district

§ 224 - Status of reserve cities under former statutes

§ 225 - Federal reserve banks; title

§ 225a - Maintenance of long run growth of monetary and credit aggregates

§ 225b - Appearances before and reports to the Congress

§ 226 - “Federal Reserve Act”

§ 227 - “Banking Act of 1933”

§ 228 - “Banking Act of 1935”

§ 1818 - Termination of status as insured depository institution

§ 1835a - Prohibition against deposit production offices

§ 1841 - Definitions

§ 1842 - Acquisition of bank shares or assets

§ 1843 - Interests in nonbanking organizations

§ 1844 - Administration

§ 1845 - Repealed. Pub. L. 89–485, § 9, July 1, 1966, 80 Stat. 240

§ 1846 - Reservation of rights to States

§ 1847 - Penalties

§ 1848 - Judicial review

§ 1848a - Repealed. Pub. L. 111–203, title VI, § 604(c)(2), July 21, 2010, 124 Stat. 1601

§ 1849 - Saving provision

§ 1850 - Acquisition of subsidiary and tying arrangement: Federal Reserve Board proceedings; application for authorization; competitor as party in interest and person aggrieved; judicial review

§ 1850a - Securities holding companies

§ 1851 - Prohibitions on proprietary trading and certain relationships with hedge funds and private equity funds

§ 1852 - Concentration limits on large financial firms

§ 3101 - Definitions

§ 3102 - Establishment of Federal branches and agencies by foreign bank

§ 3103 - Interstate banking by foreign banks

§ 3104 - Insurance of deposits

§ 3105 - Authority of Federal Reserve System

§ 3106 - Nonbanking activities of foreign banks

§ 3106a - Compliance with State and Federal laws

§ 3107 - Representative offices

§ 3108 - Regulation and enforcement

§ 3109 - Cooperation with foreign supervisors

§ 3110 - Penalties

§ 3111 - Criminal penalty

§ 3901 - Congressional declaration of policy

§ 3902 - Definitions

§ 3903 - Strengthened supervision of international lending

§ 3904 - Reserves

§ 3904a - Additional reserve requirements

§ 3905 - Accounting for fees on international loans

§ 3906 - Collection and disclosure of international lending data

§ 3907 - Capital adequacy

§ 3908 - Foreign loan evaluations

§ 3909 - General authorities

§ 3910 - Audit authority of Government Accountability Office

§ 3911 - Equal representation for Federal Deposit Insurance Corporation and the Office of Thrift Supervision

§ 3912 - Repealed. Pub. L. 104–208, div. A, title II, § 2224(c), Sept. 30, 1996, 110 Stat. 3009–415

§ 5101 - Purposes and methods for establishing a mortgage licensing system and registry

§ 5102 - Definitions

§ 5103 - License or registration required

§ 5104 - State license and registration application and issuance

§ 5105 - Standards for State license renewal

§ 5106 - System of registration administration by Federal agencies

§ 5107 - Bureau of Consumer Financial Protection backup authority to establish loan originator licensing system

§ 5108 - Backup authority to establish a nationwide mortgage licensing and registry system

§ 5109 - Fees

§ 5110 - Background checks of loan originators

§ 5111 - Confidentiality of information

§ 5112 - Liability provisions

§ 5113 - Enforcement by the Bureau

§ 5114 - State examination authority

§ 5115 - Reports and recommendations to Congress

§ 5116 - Study and reports on defaults and foreclosures

U.S. Code: Title 15 - COMMERCE AND TRADE