(a) Lending to undercapitalized insured depository institutions. A Federal Reserve Bank may make or have outstanding advances to
or discounts for a depository institution that it knows to be an undercapitalized
insured depository institution, only—
(1) if, in any 120-day period, advances
or discounts from any Federal Reserve Bank to that depository institution
are not outstanding for more than 60 days during which the institution
is an undercapitalized insured depository institution; or
(2) during the 60 calendar
days after the receipt of a written certification from the chairman
of the Board of Governors or the head of the appropriate federal banking
agency that the borrowing depository institution is viable; or
(3) after consultation
with the Board of Governors. In unusual circumstances, when prior
consultation with the Board is not possible, a Federal Reserve Bank
should consult with the Board as soon as possible after extending credit
that requires consultation under this paragraph (a)(3).
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(b) Lending to critically undercapitalized
insured depository institutions. A Federal Reserve Bank may make
or have outstanding advances to or discounts for a depository institution
that it knows to be a critically undercapitalized insured depository
institution only—
(1) during the 5-day period beginning on
the date the institution became a critically undercapitalized insured
depository institution; or
(2) after consultation with the Board of
Governors. In unusual circumstances, when prior consultation with
the Board is not possible, a Federal Reserve Bank should consult with
the Board as soon as possible after extending credit that requires
consultation under this paragraph (b)(2).
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(c) Assessments. The Board of Governors
will assess the Federal Reserve Banks for any amount that the Board
pays to the FDIC due to any excess loss in accordance with section
10B(b) of the Federal Reserve Act. Each Federal Reserve Bank shall
be assessed that portion of the amount that the Board of Governors
pays to the FDIC that is attributable to an extension of credit by
that Federal Reserve Bank, up to 1 percent of its capital as reported
at the beginning of the calendar year in which the assessment is made.
The Board of Governors will assess all of the Federal Reserve Banks
for the remainder of the amount it pays to the FDIC in the ratio that
the capital of each Federal Reserve Bank bears to the total capital
of all Federal Reserve Banks at the beginning of the calendar year
in which the assessment is made, provided, however, that if any assessment
exceeds 50 percent of the total capital and surplus of all Federal
Reserve Banks, whether to distribute the excess over such 50 percent
shall be made at the discretion of the Board of Governors.
