(a) A Federal Reserve Bank may
pay interest on balances maintained by a designated financial market
utility at the Federal Reserve Bank in accordance with this section
and under such other terms and conditions as the Board may prescribe.
(b) Interest on balances paid under
this section shall be at the rate paid on balances maintained
by depository institutions or another rate determined by the Board
from time to time, not to exceed the general level of short-term interest
rates.
(c) For purposes of this section, “short-term
interest rates” shall have the same meaning as the meaning provided
for that term in section 204.10(b)(3) of this chapter.
