Unless otherwise specified, for purposes
of this part:
(a) Affiliate has the same meaning as
in section 2(k) of the Bank Holding Company Act of 1956 (12 U.S.C.
1841(k)).
(b) Bank holding company has the same meaning
as in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C.
1841).
(c) Banking entity.
(1) Except as provided in paragraph (c)(2)
of this section, banking entity means:
(i) Any insured depository institution;
(ii) Any company that controls
an insured depository institution;
(iii) Any company that is treated as a bank holding company for purposes
of section 8 of the International Banking Act of 1978 (12 U.S.C. 3106);
and
(iv) Any affiliate or subsidiary
of any entity described in paragraphs (c)(1)(i), (ii), or (iii) of
this section.
(2) Banking
entity does not include:
(i) A covered fund that is not itself
a banking entity under paragraph (c)(1)(i), (ii), or (iii) of this
section;
(ii) A portfolio company
held under the authority contained in section 4(k)(4)(H) or (I) of
the BHC Act (12 U.S.C. 1843(k)(4)(H), (I)), or any portfolio concern,
as defined under 13 CFR 107.50, that is controlled by a small business
investment company, as defined in section 103(3) of the Small Business
Investment Act of 1958 (15 U.S.C. 662), so long as the portfolio company
or portfolio concern is not itself a banking entity under paragraph
(c)(1)(i), (ii), or (iii) of this section; or
(iii) The FDIC acting in its corporate
capacity or as conservator or receiver under the Federal Deposit Insurance
Act or Title II of the Dodd-Frank Wall Street Reform and Consumer
Protection Act.
(d) Board means the Board
of Governors of the Federal Reserve System.
(e) CFTC means the Commodity Futures Trading Commission.
(f) Dealer has the same meaning as in section 3(a)(5) of the Exchange Act (15
U.S.C. 78c(a)(5)).
(g) Depository institution has the
same meaning as in section 3(c) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(c)).
(h) Derivative.
(1) Except as provided in paragraph (h)(2)
of this section, derivative means:
(i) Any swap, as that term is defined
in section 1a(47) of the Commodity Exchange Act (7 U.S.C. 1a(47)),
or security-based swap, as that term is defined in section 3(a)(68)
of the Exchange Act (15 U.S.C. 78c(a)(68));
(ii) Any purchase or sale of a commodity,
that is not an excluded commodity, for deferred shipment or delivery
that is intended to be physically settled;
(iii) Any foreign exchange forward (as
that term is defined in section 1a(24) of the Commodity Exchange Act
(7 U.S.C. 1a(24)) or foreign exchange swap (as that term is defined
in section 1a(25) of the Commodity Exchange Act (7 U.S.C. 1a(25));
(iv) Any agreement, contract, or
transaction in foreign currency described in section 2(c)(2)(C)(i)
of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(C)(i));
(v) Any agreement, contract, or transaction
in a commodity other than foreign currency described in section 2(c)(2)(D)(i)
of the Commodity Exchange Act (7 U.S.C. 2(c)(2)(D)(i)); and
(vi) Any transaction authorized under
section 19 of the Commodity Exchange Act (7 U.S.C. 23(a) or (b));
(2) A derivative does
not include:
(i)
Any consumer, commercial, or other agreement, contract, or transaction
that the CFTC and SEC have further defined by joint regulation, interpretation,
or other action as not within the definition of swap, as that term
is defined in section 1a(47) of the Commodity Exchange Act (7 U.S.C.
1a(47)), or security-based swap, as that term is defined in section
3(a)(68) of the Exchange Act (15 U.S.C. 78c(a)(68)); or
(ii) Any identified banking product,
as defined in section 402(b) of the Legal Certainty for Bank Products
Act of 2000 (7 U.S.C. 27(b)), that is subject to section 403(a) of
that Act (7 U.S.C. 27a(a)).
(i) Employee includes a member of the immediate family of the employee.
(j) Exchange Act means the Securities Exchange Act of 1934
(15 U.S.C. 78a et seq.).
(k) Excluded commodity has the same meaning as in section 1a(19) of the Commodity Exchange
Act (7 U.S.C. 1a(19)).
(l) FDIC means the Federal
Deposit Insurance Corporation.
(m) Federal banking agencies means the Board, the Office of the Comptroller of the Currency,
and the FDIC.
(n) Foreign banking organization has the
same meaning as in section 211.21(o) of the Board’s Regulation K (12
CFR 211.21(o)), but does not include a foreign bank, as defined in
section 1(b)(7) of the International Banking Act of 1978 (12 U.S.C.
3101(7)), that is organized under the laws of the Commonwealth of
Puerto Rico, Guam, American Samoa, the United States Virgin Islands,
or the Commonwealth of the Northern Mariana Islands.
(o) Foreign insurance regulator means the insurance commissioner,
or a similar official or agency, of any country other than the United
States that is engaged in the supervision of insurance companies under
foreign insurance law.
(p) General account means all of
the assets of an insurance company except those allocated to one or
more separate accounts.
(q) Insurance company means
a company that is organized as an insurance company, primarily and
predominantly engaged in writing insurance or reinsuring risks underwritten
by insurance companies, subject to supervision as such by a state
insurance regulator or a foreign insurance regulator, and not operated
for the purpose of evading the provisions of section 13 of the BHC
Act (12 U.S.C. 1851).
(r) Insured depository institution has the same meaning as in section 3(c) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(c)), but does not include:
(1) An insured depository institution that
is described in section 2(c)(2)(D) of the BHC Act (12 U.S.C. 1841(c)(2)(D));
or
(2) An insured depository institution
if it has, and if every company that controls it has, total consolidated
assets of $10 billion or less and total trading assets and trading
liabilities, on a consolidated basis, that are 5 percent or less of
total consolidated assets.
(s) Limited trading
assets and liabilities means with respect to a banking entity
that:
(1) (i) The banking entity has, together with its affiliates and
subsidiaries, trading assets and liabilities (excluding trading assets
and liabilities attributable to trading activities permitted pursuant
to section 248.6(a)(1) and (2) of subpart B) the average gross sum
of which over the previous consecutive four quarters, as measured
as of the last day of each of the four previous calendar quarters,
is less than $1 billion; and
(ii) The Board has not determined pursuant to section 248.20(g) or
(h) of this part that the banking entity should not be treated as
having limited trading assets and liabilities.
(2) With respect to a banking entity other
than a banking entity described in paragraph (s)(3) of this section,
trading assets and liabilities for purposes of this paragraph (s)
means trading assets and liabilities (excluding trading assets and
liabilities attributable to trading activities permitted pursuant
to section 248.6(a)(1) and (2) of subpart B) on a worldwide consolidated
basis.
(3) (i)
With respect to a banking entity that is a foreign banking organization
or a subsidiary of a foreign banking organization, trading assets
and liabilities for purposes of this paragraph (s) means the trading
assets and liabilities (excluding trading assets and liabilities attributable
to trading activities permitted pursuant to section 248.6(a)(1) and
(2) of subpart B) of the combined U.S. operations of the top-tier
foreign banking organization (including all subsidiaries, affiliates,
branches, and agencies of the foreign banking organization operating,
located, or organized in the United States).
(ii) For purposes of paragraph (s)(3)(i)
of this section, a U.S. branch, agency, or subsidiary of a banking
entity is located in the United States; however, the foreign bank
that operates or controls that branch, agency, or subsidiary is not
considered to be located in the United States solely by virtue of
operating or controlling the U.S. branch, agency, or subsidiary. For
purposes of paragraph (s)(3)(i) of this section, all foreign operations
of a U.S. agency, branch, or subsidiary of a foreign banking organization
are considered to be located in the United States, including branches
outside the United States that are managed or controlled by a U.S.
branch or agency of the foreign banking organization, for purposes
of calculating the banking entity’s U.S. trading assets and liabilities.
(t) Loan means any loan, lease,
extension of credit, or secured or unsecured receivable that is not
a security or derivative.
(u) Moderate trading assets and
liabilities means, with respect to a banking entity, that the
banking entity does not have significant trading assets and liabilities
or limited trading assets and liabilities.
(v) Primary financial
regulatory agency has the same meaning as in section 2(12) of
the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301(12)).
(w) Purchase includes any contract to buy, purchase, or
otherwise acquire. For security futures products, purchase includes
any contract, agreement, or transaction for future delivery. With
respect to a commodity future, purchase includes any contract, agreement,
or transaction for future delivery. With respect to a derivative,
purchase includes the execution, termination (prior to its scheduled
maturity date), assignment, exchange, or similar transfer or conveyance
of, or extinguishing of rights or obligations under, a derivative,
as the context may require.
(x) Qualifying foreign banking
organization means a foreign banking organization that qualifies
as such under section 211.23(a), (c) or (e) of the Board’s Regulation
K (12 CFR 211.23(a), (c), or (e)).
(y) SEC means the
Securities and Exchange Commission.
(z) Sale and sell each include any contract to sell or otherwise dispose of.
For security futures products, such terms include any contract, agreement,
or transaction for future delivery. With respect to a commodity future,
such terms include any contract, agreement, or transaction for future
delivery. With respect to a derivative, such terms include the execution,
termination (prior to its scheduled maturity date), assignment, exchange,
or similar transfer or conveyance of, or extinguishing of rights or
obligations under, a derivative, as the context may require.
(aa) Security has the meaning specified in section 3(a)(10)
of the Exchange Act (15 U.S.C. 78c(a)(10)).
(bb) Security-based
swap dealer has the same meaning as in section 3(a)(71) of the
Exchange Act (15 U.S.C. 78c(a)(71)).
(cc) Security future has the meaning specified in section 3(a)(55) of the Exchange Act
(15 U.S.C. 78c(a)(55)).
(dd) Separate account means
an account established and maintained by an insurance company in connection
with one or more insurance contracts to hold assets that are legally
segregated from the insurance company’s other assets, under which
income, gains, and losses, whether or not realized, from assets allocated
to such account, are, in accordance with the applicable contract,
credited to or charged against such account without regard to other
income, gains, or losses of the insurance company.
(ee) Significant trading assets and liabilities means with respect
to a banking entity that:
(1) (i) The banking entity has,
together with its affiliates and subsidiaries, trading assets and
liabilities the average gross sum of which over the previous consecutive
four quarters, as measured as of the last day of each of the four
previous calendar quarters, equals or exceeds $20 billion; or
(ii) The Board has determined pursuant
to section 248.20(h) of this part that the banking entity should be
treated as having significant trading assets and liabilities.
(2) With respect to a banking entity,
other than a banking entity described in paragraph (ee)(3) of this
section, trading assets and liabilities for purposes of this paragraph
(ee) means trading assets and liabilities (excluding trading assets
and liabilities attributable to trading activities permitted pursuant
to section 248.6(a)(1) and (2) of subpart B) on a worldwide consolidated
basis.
(3) (i)
With respect to a banking entity that is a foreign banking organization
or a subsidiary of a foreign banking organization, trading assets
and liabilities for purposes of this paragraph (ee) means the trading
assets and liabilities (excluding trading assets and liabilities attributable
to trading activities permitted pursuant to section 248.6(a)(1) and
(2) of subpart B) of the combined U.S. operations of the top-tier
foreign banking organization (including all subsidiaries, affiliates,
branches, and agencies of the foreign banking organization operating,
located, or organized in the United States as well as branches outside
the United States that are managed or controlled by a branch or agency
of the foreign banking entity operating, located or organized in the
United States).
(ii) For purposes
of paragraph (ee)(3)(i) of this section, a U.S. branch, agency, or
subsidiary of a banking entity is located in the United States; however,
the foreign bank that operates or controls that branch, agency, or
subsidiary is not considered to be located in the United States solely
by virtue of operating or controlling the U.S. branch, agency, or
subsidiary. For purposes of paragraph (ee)(3)(i) of this section,
all foreign operations of a U.S. agency, branch, or subsidiary of
a foreign banking organization are considered to be located in the
United States for purposes of calculating the banking entity’s U.S.
trading assets and liabilities.
(ff) State means any state, the District of Columbia, the Commonwealth
of Puerto Rico, Guam, American Samoa, the United States Virgin Islands,
and the Commonwealth of the Northern Mariana Islands.
(gg) Subsidiary has the same meaning as in section 2(d) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(d)).
(hh) State
insurance regulator means the insurance commissioner, or a similar
official or agency, of a state that is engaged in the supervision
of insurance companies under state insurance law.
(ii) Swap
dealer has the same meaning as in section 1(a)(49) of the Commodity
Exchange Act (7 U.S.C. 1a(49)).
