12 CFR 211.4 - Permissible activities and investments of foreign branches of member banks.

§ 211.4 Permissible activities and investments of foreign branches of member banks.

(a)Permissible activities and investments. In addition to its general banking powers, and to the extent consistent with its charter, a foreign branch of a member bank may engage in the following activities and make the following investments, so far as is usual in connection with the business of banking in the country where it transacts business:

(1)Guarantees. Guarantee debts, or otherwise agree to make payments on the occurrence of readily ascertainable events (including, but not limited to, nonpayment of taxes, rentals, customs duties, or costs of transport, and loss or nonconformance of shipping documents) if the guarantee or agreement specifies a maximum monetary liability; however, except to the extent that the member bank is fully secured, it may not have liabilities outstanding for any person on account of such guarantees or agreements which, when aggregated with other unsecured obligations of the same person, exceed the limit contained in section 5200(a)(1) of the Revised Statutes ( 12 U.S.C. 84) for loans and extensions of credit;

(2)Government obligations.

(i) Underwrite, distribute, buy, sell, and hold obligations of:

(A) The national government of the country where the branch is located and any political subdivision of that country;

(B) An agency or instrumentality of the national government of the country where the branch is located where such obligations are supported by the taxing authority, guarantee, or full faith and credit of that government;

(C) The national government or political subdivision of any country, where such obligations are rated investment grade; and

(D) An agency or instrumentality of any national government where such obligations are rated investment grade and are supported by the taxing authority, guarantee or full faith and credit of that government.

(ii) No member bank, under authority of this paragraph (a)(2), may hold, or be under commitment with respect to, such obligations for its own account in relation to any one country in an amount exceeding the greater of:

(A) 10 percent of its tier 1 capital; or

(B) 10 percent of the total deposits of the bank's branches in that country on the preceding year-end call report date (or the date of acquisition of the branch, in the case of a branch that has not been so reported);

(3)Other investments.

(i) Invest in:

(A) The securities of the central bank, clearinghouses, governmental entities other than those authorized under paragraph (a)(2) of this section, and government-sponsored development banks of the country where the foreign branch is located;

(B) Other debt securities eligible to meet local reserve or similar requirements; and

(C) Shares of automated electronic-payments networks, professional societies, schools, and the like necessary to the business of the branch;

(ii) The total investments of a bank's branches in a country under this paragraph (a)(3) (exclusive of securities held as required by the law of that country or as authorized under section 5136 of the Revised Statutes ( 12 U.S.C. 24, Seventh)) may not exceed 1 percent of the total deposits of the bank's branches in that country on the preceding year-end call report date (or on the date of acquisition of the branch, in the case of a branch that has not been so reported);

(4)Real estate loans. Take liens or other encumbrances on foreign real estate in connection with its extensions of credit, whether or not of first priority and whether or not the real estate has been improved;

(5)Insurance. Act as insurance agent or broker;

(6)Employee benefits program. Pay to an employee of the branch, as part of an employee benefits program, a greater rate of interest than that paid to other depositors of the branch;

(7)Repurchase agreements. Engage in repurchase agreements involving securities and commodities that are the functional equivalents of extensions of credit;

(8)Investment in subsidiaries. With the Board's prior approval, acquire all of the shares of a company (except where local law requires other investors to hold directors' qualifying shares or similar types of instruments) that engages solely in activities:

(i) In which the member bank is permitted to engage; or

(ii) That are incidental to the activities of the foreign branch.

(b)Other activities. With the Board's prior approval, engage in other activities that the Board determines are usual in connection with the transaction of the business of banking in the places where the member bank's branches transact business.

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

Title 12 published on 17-Jun-2017 04:33

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR Part 211 after this date.

  • 2016-12-16; vol. 81 # 242 - Friday, December 16, 2016
    1. 81 FR 90949 - Expanded Examination Cycle for Certain Small Insured Depository Institutions and U.S. Branches and Agencies of Foreign Banks
      GPO FDSys XML | Text
      Joint final rules.
      Effective on January 17, 2017.
      12 CFR Part 4
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