(a) Primary credit. The interest rate at each Federal Reserve Bank
for primary credit provided to depository institutions under section
201.4(a) is 4.75 percent.
(b) Secondary credit. The interest rate at
each Federal Reserve Bank for secondary credit provided to depository
institutions under section 201.4(b) is 5.25 percent.
(c) Seasonal credit. The
rate for seasonal credit extended to depository institutions under
section 201.4(c) is a flexible rate that takes into account rates
on market sources of funds.
(d) Primary credit rate in a financial emergency.
(1) The primary credit rate
at a Federal Reserve Bank is the target federal funds rate of the
Federal Open Market Committee or, if the Federal Open Market Committee
has set a target range for the federal funds rate, the rate corresponding
to the top of the target range, if:
(i) in a financial emergency
the Reserve Bank has established the primary credit rate at that rate;
and
(ii) the chairman
of the Board of Governors (or, in the chairman’s absence, his
authorized designee) certifies that a quorum of the Board is not available
to act on the Reserve Bank’s rate establishment.
(2) For purposes of this
paragraph (d), a financial emergency is a significant disruption to
the U.S. money markets resulting from an act of war, military or terrorist
attack, natural disaster, or other catastrophic event.
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(e) Term auction facility. The interest rate on advances to depository institutions made pursuant
to an auction under section 201.4(e) is the rate at which all bids
at that auction may be fulfilled, up to the maximum auction amount
and subject to any minimum bid rate and other conditions as set by
the Board.
