(1) Deposit-taking
activities.
(i) Deposits from foreign governments and
foreign persons. An Edge or agreement corporation may receive
in the United States transaction accounts, savings, and time deposits
(including issuing negotiable certificates of deposits) from foreign
governments and their agencies and instrumentalities, and from foreign
persons.
(ii) Deposits from other persons. An Edge or
agreement corporation may receive from any other person in the United
States transaction accounts, savings, and time deposits (including
issuing negotiable certificates of deposit) if such deposits—
(A) are to be transmitted abroad;
(B) consist of funds to be used for payment
of obligations to the Edge or agreement corporation or collateral
securing such obligations;
(C) consist
of the proceeds of collections abroad that are to be used to pay for
exported or imported goods or for other costs of exporting or importing
or that are to be periodically transferred to the depositor’s account
at another financial institution;
(D)
consist of the proceeds of extensions of credit by the Edge or agreement
corporation;
(E) represent compensation
to the Edge or agreement corporation for extensions of credit or services
to the customer;
(F) are received from
Edge or agreement corporations, foreign banks, and other depository
institutions (as described in Regulation D (12 CFR 204)); or
(G) are received from an organization that
by its charter, license, or enabling law is limited to business that
is of an international character, including foreign sales corporations,
as defined in 26 U.S.C. 922; transportation organizations engaged
exclusively in the international transportation of passengers or in the movement
of goods, wares, commodities, or merchandise in international or foreign
commerce; and export trading companies established under subpart C
of this part.
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(2) Borrowings. An Edge or agreement
corporation may—
(i) borrow from offices of other Edge and agreement corporations,
foreign banks, and depository institutions (as described in Regulation
D (12 CFR 204));
(ii) issue obligations
to the United States or any of its agencies or instrumentalities;
(iii) incur indebtedness from a
transfer of direct obligations of, or obligations that are fully guaranteed
as to principal and interest by, the United States or any agency or
instrumentality thereof that the Edge or agreement corporation is
obligated to repurchase; and
(iv) issue long-term subordinated debt that does not qualify as a
deposit under Regulation D (12 CFR 204).
(3) Credit activities. An Edge or agreement corporation may—
(i) finance the following:
(A) contracts, projects, or activities
performed substantially abroad;
(B)
the importation into or exportation from the United States of goods,
whether direct or through brokers or other intermediaries;
(C) the domestic shipment or temporary storage
of goods being imported or exported (or accumulated for export); and
(D) the assembly or repackaging of goods
imported or to be exported;
(ii) finance the costs of production
of goods and services for which export orders have been received or
which are identifiable as being directly for export;
(iii) assume or acquire participations
in extensions of credit, or acquire obligations arising from transactions
the Edge or agreement corporation could have financed, including acquisition
of obligations of foreign governments;
(iv) 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 cost of transport, and loss or nonconformance of shipping
documents), so long as the guarantee or agreement specifies the maximum
monetary liability thereunder and is related to a type of transaction
described in paragraphs (a)(3)(i) and (ii) of this section; and
(v) provide credit and other banking
services for domestic and foreign purposes to foreign governments
and their agencies and instrumentalities, foreign persons, and organizations
of the type described in paragraph (a)(1)(ii)(G) of this section.
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(4) Payments
and collections. An Edge or agreement corporation may receive
checks, bills, drafts, acceptances, notes, bonds, coupons, and other
instruments for collection abroad, and collect such instruments in
the United States for a customer abroad; and may transmit and receive
wire transfers of funds and securities for depositors.
(5) Foreign exchange. An Edge or agreement corporation may engage in foreign-exchange
activities.
(6) Fiduciary and investment advisory activities. An Edge or agreement corporation may—
(i) hold securities in safekeeping for,
or buy and sell securities upon the order and for the account and
risk of, a person, provided such services for U.S. persons are with
respect to foreign securities only;
(ii) act as paying agent for securities issued by foreign governments
or other entities organized under foreign law;
(iii) act as trustee, registrar, conversion
agent, or paying agent with respect to any class of securities issued
to finance foreign activities and distributed solely outside the United
States;
(iv) make private placements
of participations in its investments and extensions of credit; however,
except to the extent permissible for member banks under section 5136
of the Revised Statutes (12 U.S.C. 24 (Seventh)), no Edge or agreement corporation
otherwise may engage in the business of underwriting, distributing,
or buying or selling securities in the United States;
(v) act as investment or financial adviser
by providing portfolio investment advice and portfolio management
with respect to securities, other financial instruments, real-property
interests, and other investment assets,
3 and by providing advice on mergers and acquisitions, provided
such services for U.S. persons are with respect to foreign assets
only; and
(vi) provide general
economic information and advice, general economic statistical forecasting
services, and industry studies, provided such services for U.S. persons
shall be with respect to foreign economies and industries only.
(7) Banking services for employees. Provide
banking services, including deposit services, to the officers and
employees of the Edge or agreement corporation and its affiliates;
however, extensions of credit to such persons shall be subject to
the restrictions of Regulation O (12 CFR 215) as if the Edge or agreement
corporation were a member bank.
