For purposes of this part, the
following definitions apply unless otherwise specified:
(a) (1) Deposit means—
(i) the
unpaid balance of money or its equivalent received or held by a depository
institution in the usual course of business and for which it has given
or is obligated to give credit, either conditionally or unconditionally,
to an account, including interest credited, or which is evidenced
by an instrument on which the depository institution is primarily
liable;
(ii) money
received or held by a depository institution, or the credit given
for money or its equivalent received or held by the depository institution
in the usual course of business for a special or specific purpose,
regardless of the legal relationships established thereby, including
escrow funds, funds held as security for securities loaned by the
depository institution, funds deposited as advance payment on subscriptions
to United States government securities, and funds held to meet its
acceptances;
(iii)
an outstanding teller’s check, or an outstanding draft, certified
check, cashier’s check, money order, or officer’s check drawn on the
depository institution, issued in the usual course of business for
any purpose, including payment for services, dividends, or purchases;
2-127
(iv) any due bill or other
liability or undertaking on the part of a depository institution to
sell or deliver securities to, or purchase securities for the account
of, any customer (including another depository institution), involving
either the receipt of funds by the depository institution, regardless
of the use of the proceeds, or a debit to an account of the customer
before the securities are delivered. A deposit arises thereafter,
if after three business days from the date of issuance of the obligation,
the depository institution does not deliver the securities purchased
or does not fully collateralize its obligation with securities similar
to the securities purchased. A security is similar if it is of the
same type and if it is of comparable maturity to that purchased by
the customer;
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(v) any liability of
a depository institution’s affiliate that is not a depository institution,
on any promissory note, acknowledgment of advance, due bill, or similar
obligation (written or oral), with a maturity of less than one and
one-half years, to the extent that the proceeds are used to supply
or to maintain the availability of funds (other than capital) to the
depository institution, except any such obligation that, had it been
issued directly by the depository institution, would not constitute
a deposit. If an obligation of an affiliate of a depository institution
is regarded as a deposit and is used to purchase assets from the depository
institution, the maturity of the deposit is determined by the shorter
of the maturity of the obligation issued or the remaining maturity
of the assets purchased. If the proceeds from an affiliate’s obligation
are placed in the depository institution in the form of a reservable
deposit, no reserves need be maintained against the obligation of
the affiliate since reserves are required to be maintained against
the deposit issued by the depository institution. However, the maturity
of the deposit issued to the affiliate shall be the shorter of the maturity
of the affiliate’s obligation or the maturity of the deposit;
(vi) credit
balances;
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(vii) any liability
of a depository institution on any promissory note, acknowledgment
of advance, banker’s acceptance, or similar obligation (written or
oral), including mortgage-backed bonds, that is issued or undertaken
by a depository institution as a means of obtaining funds, except
any such obligation that—
(A) is issued or undertaken and held for the
account of—
(1) an office located in
the United States of another depository institution, foreign bank,
Edge or agreement corporation, or New York Investment (article XII)
Company;
(2) the United
States government or an agency thereof; or
(3) the Export-Import Bank of the United
States, Minbanc Capital Corporation, the Government Development Bank
for Puerto Rico, a Federal Reserve Bank, a Federal Home Loan Bank,
or the National Credit Union Administration Central Liquidity Facility;
(B) arises
from a transfer of direct obligations of, or obligations that are
fully guaranteed as to principal and interest by, the United States
government or any agency thereof that the depository institution is
obligated to repurchase;
(C) is not insured by a federal agency, is subordinated to the claims
of depositors, has a weighted average maturity of five years or more,
and is issued by a depository institution with the approval of, or
under the rules and regulations of, its primary federal supervisor;
(D) arises from a borrowing
by a depository institution from a dealer in securities, for one business
day, of proceeds of a transfer of deposit credit in a Federal Reserve
Bank or other immediately available funds, (commonly referred to as
“federal funds”), received by such dealer on the date of the loan
in connection with clearance of securities transactions; or
(E) arises from the creation,
discount and subsequent sale by a depository institution of its banker’s
acceptance of the type described in paragraph 7 of section 13 of the
Federal Reserve Act (12 U.S.C. 372);
2-129.1
(viii) any liability of a depository
institution that arises from the creation after June 20, 1983, of
a banker’s acceptance that is not of the type described in paragraph
7 of section 13 of the Federal Reserve Act (12 U.S.C. 372) except
any such liability held for the account of an entity specified in
section 204.2(a)(1)(vii)(A).
2-130
(2) Deposit does not include—
(i) trust funds received or held by the depository institution that
it keeps properly segregated as trust funds and apart from its general
assets or which it deposits in another institution to the credit of
itself as trustee or other fiduciary. If trust funds are deposited
with the commercial department of the depository institution or otherwise
mingled with its general assets, a deposit liability of the institution
is created;
(ii)
an obligation that represents a conditional, contingent or endorser’s
liability;
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(iii) obligations, the
proceeds of which are not used by the depository institution for purposes
of making loans, investments, or maintaining liquid assets such as
cash or “due from” depository institutions or other similar purposes.
An obligation issued for the purpose of raising funds to purchase
business premises, equipment, supplies, or similar assets is not a
deposit;
(iv) accounts
payable;
(v) hypothecated
“deposits” created by payments on an installment loan where (A) the
amounts received are not used immediately to reduce the unpaid balance
due on the loan until the sum of the payments equals the entire amount
of loan principal and interest; (B) and where such amounts are irrevocably
assigned to the depository institution and cannot be reached by the
borrower or creditors of the borrower;
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(vi) dealer reserve and differential
accounts that arise from the financing of dealer installment accounts
receivable, and which provide that the dealer may not have access
to the funds in the account until the installment loans are repaid,
as long as the depository institution is not actually (as distinguished
from contingently) obligated to make credit or funds available to
the dealer;
(vii)
a dividend declared by a depository institution for the period intervening
between the date of the declaration of the dividend and the date on
which it is paid;
(viii) an obligation representing a “pass-through account,” as defined
in this section;
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(ix)
an obligation arising from the retention by the depository institution
of no more than a 10 percent interest in a pool of conventional one-
to four-family mortgages that are sold to third parties;
(x) an obligation issued
to a state or municipal housing authority under a loan-to-lender program
involving the issuance of tax exempt bonds and the subsequent lending
of the proceeds to the depository institution for housing finance
purposes;
(xi) shares
of a credit union held by the National Credit Union Administration
or the National Credit Union Administration Central Liquidity Facility
under a statutorily authorized assistance program; and
(xii) any liability of
a United States branch or agency of a foreign bank to another United
States branch or agency of the same foreign bank, or the liability
of the United States office of an Edge corporation to another United
States office of the same Edge corporation.
2-134
(b) (1) Demand deposit means
a deposit that is payable on demand, or a deposit issued with an original
maturity or required notice period of less than seven days, or a deposit
representing funds for which the depository institution does not reserve
the right to require at least seven days’ written notice of an intended
withdrawal. Demand deposits may be in the form of—
(i) checking
accounts;
(ii) certified,
cashier’s, teller’s and officer’s checks (including such checks issued
in payment of dividends);
(iii) traveler’s checks and money orders
that are primary obligations of the issuing institution;
(iv) checks or drafts drawn
by, or on behalf of, a non-United States office of a depository institution
on an account maintained at any of the institution’s United States
offices;
(v) letters
of credit sold for cash or its equivalent;
(vi) withheld taxes, withheld insurance
and other withheld funds;
(vii) time deposits that have matured
or time deposits upon which the contractually required notice of withdrawal
was given and the notice period has expired and which have not been
renewed (either by action of the depositor or automatically under
the terms of the deposit agreement); and
(viii) an obligation to pay, on demand
or within six days, a check (or other instrument, device, or arrangement
for the transfer of funds) drawn on the depository institution, where
the account of the institution’s customer already has been debited.
2-134.1
(2) The term demand deposit also means deposits or accounts on which the depository
institution has reserved the right to require at least seven days’
written notice prior to withdrawal or transfer of any funds in the
account and from which the depositor is authorized to make withdrawals
or transfers in excess of the withdrawal or transfer limitations specified
in section 204.2(d)(2) for such an account and the account is not
a NOW account, or an ATS account or other account that meets the criteria
specified in either section 204.2(b)(3)(ii) or (iii) below.
2-134.2
(3) Demand deposit does not include—
(i) any account that is a time deposit or a savings deposit under
this part;
(ii)
any deposit or account on which the depository institution has reserved
the right to require at least seven days’ written notice prior to
withdrawal or transfer of any funds in the account and either—
(A) is subject to check, draft, negotiable order of withdrawal, share
draft, or similar item, such as an account authorized by 12 U.S.C.
1832(a) (NOW account) and a savings deposit described in section 204.2(d)(2),
provided that the depositor is eligible to hold a NOW account; or
(B) from which the depositor
is authorized to make transfers by preauthorized transfer or telephonic
(including data transmission) agreement, order or instruction to another
account or to a third party, provided that the depositor is eligible
to hold a NOW account;
(iii) any deposit or account on which
the depository institution has reserved the right to require at least
seven days’ written notice prior to withdrawal or transfer of any
funds in the account and from which withdrawals may be made automatically
through payment to the depository institution itself or through transfer
of credit to a demand deposit or other account in order to cover checks
or drafts drawn upon the institution or to maintain a specified balance
in, or to make periodic transfers to such other account, such as accounts
authorized by 12 U.S.C. 371a (automatic transfer account or ATS account),
provided that the depositor is eligible to hold an ATS account; or
(iv) IBF time deposits
meeting the requirements of section 204.8(a)(2).
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(c) (1) Time deposit means—
(i) a deposit that the depositor does not have a right and is not
permitted to make withdrawals from within six days after the date
of deposit unless the deposit is subject to an early withdrawal penalty
of at least seven days’ simple interest on amounts withdrawn within
the first six days after deposit.
1 A time
deposit from which partial early withdrawals are permitted must impose
additional early withdrawal penalties of at least seven days’ simple
interest on amounts withdrawn within six days after each partial with
drawal. If
such additional early withdrawal penalties are not imposed, the account
ceases to be a time deposit. The account may become a savings deposit
if it meets the requirements for a saving deposit; otherwise it becomes
a transaction account.
Time deposit includes
funds—(A) payable on
a specified date not less than seven days after the date of deposit;
(B) payable at the expiration
of a specified time not less than seven days after the date of deposit;
(C) payable only upon written
notice that is actually required to be given by the depositor not
less than seven days prior to withdrawal;
(D) held in “club” accounts (such as “Christmas
club” accounts and “vacation club” accounts that are not maintained
as “savings deposits”) that are deposited under written contracts
providing that no withdrawal shall be made until a certain number
of periodic deposits have been made during a period of not less than
three months even though some of the deposits may be made within six
days from the end of the period; or
(E) share certificates and certificates of
indebtedness issued by credit unions, and certificate accounts and
notice accounts issued by savings and loan associations;
(ii) an “IBF time deposit”
meeting the requirements of section 204.8(a)(2); and
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(iii) borrowings, regardless of maturity,
represented by a promissory note, an acknowledgment of advance, or
similar obligation described in section 204.2(a)(1)(vii) that is issued
to, or any banker’s acceptance (other than the type described in 12
U.S.C. 372) of the depository institution held by—
(A) any office
located outside the United States of another depository institution
or Edge or agreement corporation organized under the laws of the United
States;
(B) any office
located outside the United States of a foreign bank;
(C) a foreign national government, or an agency
or instrumentality thereof,
2 engaged principally
in activities which are ordinarily performed in the United States
by governmental entities,
(D) an international entity of which the United States is a member,
or
(E) any other foreign,
international, or supranational entity specifically designated by
the Board.
32-137
(2) A time deposit may
be represented by a transferable or nontransferable, or a negotiable
or nonnegotiable, certificate, instrument, passbook, or statement,
or by book entry or otherwise.
2-138
(d) (1) Savings deposit means
a deposit or account with respect to which the depositor is not required
by the deposit contract but may at any time be required by the depository
institution to give written notice of an intended withdrawal not less
than seven days before withdrawal is made, and that is not payable
on a specified date or at the expiration of a specified time after
the date of deposit. The term “savings deposit” includes a regular
share account at a credit union and a regular account at a savings
and loan association.
2-138.1
(2) The term savings deposit also
means: A deposit or account, such as an account commonly known as
a passbook savings account, a statement savings account, or as a money
market deposit account (MMDA), that otherwise meets the requirements
in paragraph (d)(1) of this section and from which, under the terms
of the deposit contract or by practice of the depository institution,
the depositor may be permitted or authorized to make transfers and
withdrawals to another account (including a transaction account) of
the depositor at the same institution or to a third party, regardless
of the number of such transfers and withdrawals or the manner in which
such transfers and withdrawals are made.
2-139
(3) A deposit may continue to be classified
as a savings deposit even if the depository institution exercises
its right to require notice of withdrawal.
(4) Savings deposit does not include
funds deposited to the credit of the depository institution’s own
trust department where the funds involved are utilized to cover checks
or drafts. Such funds are “transaction accounts.”
2-140
(e) Transaction account means a deposit or account from which
the depositor or account holder is permitted to make transfers or
withdrawals by negotiable or transferable instrument, payment order
of withdrawal, telephone transfer, or other similar device for the
purpose of making payments or transfers to third persons or others
or from which the depositor may make third party payments at an automated
teller machine (ATM) or a remote service unit, or other electronic
device, including by debit card. Transaction account includes:
(1) demand deposits;
(2) deposits or accounts on which the depository
institution has reserved the right to require at least seven days’
written notice prior to withdrawal or transfer of any funds in the
account and that are subject to check, draft, negotiable order of
withdrawal, share draft, or other similar item, including accounts
described in paragraph (d)(2) of this section (savings deposits) and
including accounts authorized by 12 U.S.C. 1832(a) (NOW accounts).
2-141
(3) Deposits or accounts on
which the depository institution has reserved the right to require
at least seven days’ written notice prior to withdrawal or transfer
of any funds in the account and from which withdrawals may be made
automatically through payment to the depository institution itself
or through transfer or credit to a demand deposit or other account
in order to cover checks or drafts drawn upon the institution or to
maintain a specified balance in, or to make periodic transfers to
such accounts, including accounts authorized by 12 U.S.C. 371a (automatic
transfer accounts or ATS accounts).
2-142
(4) Deposits or accounts on which the depository
institution has reserved the right to require at least seven days’
written notice prior to withdrawal or transfer of any funds in the
account and under the terms of which, or by practice of the depository
institution, the depositor is permitted or authorized to make withdrawals
for the purposes of transferring funds to another account of the depositor
at the same institution (including transaction account) or for making
payment to a third party, regardless of the number of such transfers
and withdrawals and regardless of the manner in which such transfers
and withdrawals are made.
2-142.1
(5) Deposits or accounts maintained in
connection with an arrangement that permits the depositor to obtain
credit directly or indirectly through the drawing of a negotiable
or nonnegotiable check, draft, order or instruction or other similar
device (including telephone or electronic order or instruction) on
the issuing institution that can be used for the purpose of making
payments or transfers to third persons or others, or to a deposit
account of the depositor.
(6) All deposits other than time deposits, including those accounts
that are time deposits in form but that the Board has determined,
by rule or order, to be transaction accounts.
2-143
(f)(1) Nonpersonal time deposit means—
(i) a time deposit, including an MMDA
or any other savings deposit, representing funds in which any beneficial
interest is held by a depositor which is not a natural person;
(ii) a time deposit,
including an MMDA or any other savings deposit, that represents funds
deposited to the credit of a depositor that is not a natural person,
other than a deposit to the credit of a trustee or other fiduciary
if the entire beneficial interest in the deposit is held by one or
more natural persons;
(iii) a transferable time deposit. A time deposit is transferable
unless it contains a specific statement on the certificate, instrument,
passbook, statement or other form representing the account that it
is not transferable. A time deposit that contains a specific statement
that it is not transferable is not regarded as transferable even if
the following transactions can be effected: a pledge as collateral
for a loan, a transaction that occurs due to circumstances arising
from death, incompetency, marriage, divorce, attachment, or otherwise
by operation of law or a transfer on the books or records of the institution;
and
2-145
(iv) a time deposit
represented by a promissory note, an acknowledgment of advance, or
similar obligation described in section 204.2(a)(1)(vii) that is issued
to, or any banker’s acceptance (other than the type described in 12
U.S.C. 372) of the depository institution held by—
(A) any office
located outside the United States of another depository institution
or Edge or agreement corporation organized under the laws of the United
States,
(B) any office
located outside the United States of a foreign bank,
(C) a foreign national government, or an agency
or instrumentality thereof,
5 engaged principally
in activities which are ordinarily performed in the United States
by governmental entities,
(D) an international entity of which the United States is a member,
or
(E) any other foreign,
international, or supranational entity specifically designated by
the Board.
62-146
(2) Nonpersonal time
deposit does not include nontransferable time deposits to the
credit of or in which the entire beneficial interest is held by an
individual pursuant to an individual retirement account or Keogh (H.R.
10) plan under 26 U.S.C. 408, 401, or nontransferable time deposits
held by an employer as part of an unfunded deferred-compensation plan
established pursuant to subtitle D of the Revenue Act of 1978 (Pub.
L. No. 95-600, 92 Stat. 2763), or a “401(k) plan” under 26 U.S.C.
401(k).
2-147
(g) Natural person means an
individual or a sole proprietorship. The term does not mean a corporation
owned by an individual, a partnership or other association.
2-148
(h) Eurocurrency liabilities means—
(1) For a depository institution or an
Edge or agreement corporation organized under the laws of the United
States, the sum, if positive, of the following:
(i) net
balances due to its non-United States offices and its international
banking facilities (IBFs) from its United States offices;
(ii) (A) for
a depository institution organized under the laws of the United States,
assets (including participations) acquired from its United States
offices and held by its non-United States offices, by its IBF, or
by non-United States offices of an affiliated Edge or agreement corporation;
7 or
(B) for an Edge or agreement corporation,
assets (including participations) acquired from its United States
offices and held by its non-United States offices, by its IBF, by
non-United States offices of its U.S. or foreign parent institution,
or by non-United States offices of an affiliated Edge or agreement
corporation; and
2-149
(iii) credit outstanding from its non-United
States offices to United States residents (other than assets acquired
and net balances due from its United States offices), except credit
extended (A) from its non-United States offices in the aggregate amount
of $100,000 or less to any United States resident, (B) by a non-United
States office that at no time during the computation period had credit
outstanding to United States residents exceeding $1 million, (C) to
an international banking facility, or (D) to an institution that will
be maintaining reserves on such credit pursuant to this part. Credit
extended from non-United States offices or from IBFs to a foreign
branch, office, subsidiary, affiliate, or other foreign establishment
(“foreign affiliate”) controlled by one or more domestic corporations
is not regarded as credit extended to a United States resident if
the proceeds will be used to finance the operations outside the United
States of the borrower or of other foreign affiliates of the controlling
domestic corporation(s).
2-150
(2) For a United States branch or agency
of a foreign bank, the sum, if positive, of the following:
(i) net
balances due to its foreign bank (including offices thereof located
outside the United States) and its international banking facility
after deducting an amount equal to 8 percent of the following: the
United States branch’s or agency’s total assets less the sum of (A)
cash items in process of collection; (B) unposted debits; (C) demand
balances due from depository institutions organized under the laws
of the United States and from other foreign banks; (D) balances due
from foreign central banks; and (E) positive net balances due from
its IBF, its foreign bank, and the foreign bank’s United States and
non-United States offices; and
(ii) assets (including participations)
acquired from the United States branch or agency (other than assets
required to be sold by federal or state supervisory authorities) and
held by its foreign bank (including offices thereof located outside
the United States), by its parent holding company, by non-United States
offices or an IBF of an affiliated Edge or agreement corporation,
or by its IBFs.
82-151
(i)(1) Cash item in process of
collection means—
(i) checks in the process of collection,
drawn on a bank or other depository institution that are payable immediately
upon presentation in the United States, including checks forwarded
to a Federal Reserve Bank in process of collection and checks on hand
that will be presented for payment or forwarded for collection on
the following business day;
(ii) government checks drawn on the
Treasury of the United States that are in the process of collection;
and
2-152
(iii) such other items
in the process of collection, that are payable immediately upon presentation
in the United States and that are customarily cleared or collected
by depository institutions as cash items, including—
(A) drafts payable
through another depository institution;
(B) matured bonds and coupons (including bonds
and coupons that have been called and are payable on presentation);
(C) food coupons and certificates;
(D) postal and other money
orders, and traveler’s checks;
(E)
amounts credited to deposit accounts in connection with automated
payment arrangements where such credits are made one business day
prior to the scheduled payment date to insure that funds are available
on the payment date;
(F)
commodity or bill of lading drafts payable immediately upon presentation
in the United States;
(G)
returned items and unposted debits; and
(H) broker security drafts.
(2) Cash
item in process of collection does not include items handled as
noncash collections and credit card sales slips and drafts.
2-153
(j) Net transaction accounts means the total amount
of a depository institution's transaction accounts less the deductions
allowed under the provisions of section 204.3.
(k) (1) Vault cash means United
States currency and coin owned and booked as an asset by a depository
institution that may, at any time, be used to satisfy claims of that
depository institution's depositors and that meets the requirements
of paragraph (k)(2)(i) or (k)(2)(ii) of this section.
(2) Vault cash must
be either:
(i) Held at a physical location of the
depository institution (including the depository institution’s proprietary
ATMs) from which the institution’s depositors may make cash withdrawals;
or
(ii) Held at an
alternate physical location if—
(A) The depository institution
claiming the currency and coin as vault cash at all times retains
full rights of ownership in and to the currency and coin held at the
alternate physical location;
(B) The depository institution claiming the currency and coin as
vault cash at all times books the currency and coin held at the alternate
physical location as an asset of the depository institution;
(C) No other depository institution
claims the currency and coin held at the alternate physical location
as vault cash in satisfaction of that other depository institution’s
reserve requirements;
(D)
The currency and coin held at the alternate physical location is reasonably
nearby a location of the depository institution claiming the currency
and coin as vault cash at which its depositors may make cash withdrawals
(an alternate physical location is considered “reasonably nearby”
if the depository institution that claims the currency and coin as
vault cash can recall the currency and coin from the alternate physical
location by 10 a.m. and, relying solely on ground transportation,
receive the currency and coin not later than 4 p.m. on the same calendar
day at a location of the depository institution at which its depositors
may make cash withdrawals); and
(E) The depository institution claiming the
currency and coin as vault cash has in place a written cash delivery
plan and written contractual arrangements necessary to implement that
plan that demonstrate that the currency and coin can be recalled and
received in accordance with the requirements of paragraph (k)(2)(ii)(D)
of this section at any time. The depository institution shall provide
copies of the written cash delivery plan and written contractual arrangements
to the Federal Reserve Bank that holds its account or to the Board
upon request.
(3) Vault cash includes United States
currency and coin in transit to a Federal Reserve Bank or a correspondent
depository institution for which the reporting depository institution
has not yet received credit, and United States currency and coin in
transit from a Federal Reserve Bank or a correspondent depository
institution when the reporting depository institution’s account at
the Federal Reserve or correspondent bank has been charged for such
shipment.
(4) Silver
and gold coin and other currency and coin whose numismatic or bullion
value is substantially in excess of face value is not vault cash for
purposes of this part.
2-154
(l) Pass-through account means a balance maintained by a depository
institution with a correspondent institution under section 204.5(d).
2-155
(m) (1) Depository institution means—
(i) any insured bank as defined in section
3 of the Federal Deposit Insurance Act (12 U.S.C. 1813(h)) or any
bank that is eligible to apply to become an insured bank under section
5 of such act (12 U.S.C. 1815);
(ii) any savings bank or mutual savings
bank as defined in section 3 of the Federal Deposit Insurance Act
(12 U.S.C. 1813(f), (g));
(iii) any insured credit union as defined
in section 101 of the Federal Credit Union Act (12 U.S.C. 1752(7))
or any credit union that is eligible to apply to become an insured
credit union under section 201 of such act (12 U.S.C. 1781);
(iv) any member as defined
in section 2 of the Federal Home Loan Bank Act (12 U.S.C. 1422(4));
and
(v) any insured
institution as defined in section 401 of the National Housing Act
(12 U.S.C. 1724(a)) or any institution which is eligible to apply
to become an insured institution under section 403 of such act (12
U.S.C. 1726).
(2) Depository institution does
not include international organizations such as the World Bank, the
Inter-American Development Bank, and the Asian Development Bank.
2-156
(n) Member bank means a depository institution
that is a member of the Federal Reserve System.
(o) Foreign bank means any bank or other similar institution
organized under the laws of any country other than the United States
or organized under the laws of Puerto Rico, Guam, American Samoa,
the Virgin Islands, or other territory or possession of the United
States.
(p) [Reserved]
2-157
(q) Affiliate includes any corporation, association, or other organization—
(1) of which a depository
institution, directly or indirectly, owns or controls either a majority
of the voting shares or more than 50 percent of the numbers of shares
voted for the election of its directors, trustees, or other persons
exercising similar functions at the preceding election, or controls
in any manner the election of a majority of its directors, trustees,
or other persons exercising similar functions;
(2) of which control is held, directly
or indirectly, through stock ownership or in any other manner, by
the shareholders of a depository institution or more than 50 percent
of the number of shares voted for the election of directors of such
depository institution at the preceding election, or by trustees for
the benefit of the shareholders of any such depository institution;
(3) of which a majority
of its directors, trustees, or other persons exercising similar functions
are directors of any one depository institution; or
(4) which owns or controls, directly or
indirectly, either a majority of the shares of capital stock of a
depository institution or more than 50 percent of the number of shares
voted for the election of directors, trustees or other persons exercising
similar functions of a depository institution at the preceding election,
or controls in any manner the election of a majority of the directors,
trustees, or other persons exercising similar functions of a depository
institution, or for the benefit of whose shareholders or members all
or substantially all the capital stock of a depository institution
is held by trustees.
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(r) United States means the states of the United States and the District of Columbia.
(s) United States resident means (1) any
individual residing (at the time of the transaction) in the United
States; (2) any corporation, partnership, association or other entity organized
in the United States (“domestic corporation”); and (3) any branch
or office located in the United States of any entity that is not organized
in the United States.
(t)
Any deposit that is
payable only at an office located outside the United States means
(1) a deposit of a United States resident
9 that is in a denomination of $100,000 or
more, and as to which the depositor is entitled, under the agreement
with the institution, to demand payment only outside the United States
or (2) a deposit of a person who is not a United States resident
9 as to which the depositor is entitled, under the agreement
with the institution, to demand payment only outside the United States.
(u) Teller's check means a check drawn by
a depository institution on another depository institution, a Federal
Reserve Bank, or a Federal Home Loan Bank, or payable at or through
a depository institution, a Federal Reserve Bank, or a Federal Home
Loan Bank, and which the drawing depository institution engages or
is obliged to pay upon dishonor.
(v) [Reserved]
(w) [Reserved]
(x) [Reserved]
(y) Eligible institution means—
(1) Any depository institution as described
in section 204.1(c) of this part;
(2) Any trust company;
(3) Any corporation organized under section
25A of the Federal Reserve Act (12 U.S.C. 611 et seq.) or having
an agreement with the Board under section 25 of the Federal Reserve
Act (12 U.S.C. 601 et seq.); and
(4) Any branch or agency of a foreign bank
(as defined in section 1(b) of the International Banking Act of 1978,
12 U.S.C. 3101(b)).
(z) Excess balance means the average balance maintained in an account at a Federal
Reserve Bank by or on behalf of an institution over a reserve maintenance
period that exceeds the top of the penalty-free band.
(aa) Excess balance account means an account at a Reserve
Bank pursuant to section 204.10(d) of this chapter that is established
by one or more eligible institutions through an agent and in which
only balances of the participating eligible institutions may at any
time be maintained. An excess balance account is not a “pass-through
account” for purposes of this part.
(bb) Balance
maintained to satisfy a reserve balance requirement means the
average balance held in an account at a Federal Reserve Bank by or
on behalf of an institution over a reserve maintenance period to satisfy
a reserve balance requirement of this part.
(cc) Targeted federal funds rate means the federal funds rate established
from time to time by the Federal Open Market Committee.
(dd) Term deposit means those funds of an eligible
institution that are maintained by that institution for a specified
maturity at a Federal Reserve Bank pursuant to section 204.10(e) of
this part.
(ee) Reserve balance requirement means the balance that a depository institution is required to maintain
on average over a reserve maintenance period in an account at a Federal
Reserve Bank if vault cash does not fully satisfy the depository institution’s
reserve requirement imposed by this part.
(ff) Deficiency means the bottom of the penalty-free band less the
average balance maintained in an account at a Federal Reserve Bank
by or on behalf of an institution over a reserve maintenance period.
(gg) Top of the penalty-free band means an
amount equal to an institution’s reserve balance requirement plus
an amount that is the greater of 10 percent of the institution’s reserve
balance requirement or $50,000. The top of the penalty-free band for
a pass-through correspondent is an amount equal to the aggregate reserve
balance requirement of the correspondent (if any) and all of its respondents
plus an amount that is the greater of 10 percent of that aggregate
reserve balance requirement or $50,000.
(hh) Bottom of the penalty-free band means an amount equal to an institution’s
reserve balance requirement less an amount that is the greater of
10 percent of the institution’s reserve balance requirement or $50,000.
The bottom of the penalty-free band for a pass-through correspondent
is an amount equal to the aggregate reserve balance requirement of
the correspondent (if any) and all of its respondents less an amount
that is the greater of 10 percent of that aggregate reserve balance
requirement or $50,000. In no case will the penalty-free band be less
than zero.
