(a) Every depository institution,
U.S. branch or agency of a foreign bank, and Edge or Agreement corporation
shall file a report of deposits (or any other form or statement that
may be required by the Board or by a Federal Reserve Bank) with the
Federal Reserve Bank in the Federal Reserve District in which it is
located, regardless of the manner in which it chooses to maintain
required reserve balances.
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(b) A foreign
bank’s U.S. branches and agencies and an Edge or Agreement corporation’s
offices operating within the same State and the same Federal Reserve
District shall prepare and file a report of deposits on an aggregated
basis.
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(c) For purposes of this part, the obligations of
a majority-owned (50 percent or more) U.S. subsidiary (except an Edge
or Agreement corporation) of a depository institution shall be regarded
as obligations of the parent depository institution.
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(d) A depository institution, a foreign bank, or an Edge or Agreement
corporation shall, if possible, assign the low reserve tranche and
reserve requirement exemption prescribed in section 204.4(f) to only
one office or to a group of offices filing a single aggregated report
of deposits. The amount of the reserve requirement exemption allocated
to an office or group of offices may not exceed the amount of the
low reserve tranche allocated to such office or offices. If the low
reserve tranche or reserve requirement exemption cannot be fully utilized
by a single office or by a group of offices filing a single report
of deposits, the unused portion of the tranche or exemption may be
assigned to other offices or groups of offices of the same institution
until the amount of the tranche (or net transaction accounts) or exemption
(or reservable liabilities) is exhausted. The tranche or exemption
may be reallocated each year concurrent with implementation of the
indexed tranche and exemption, or, if necessary during the course
of the year to avoid underutilization of the tranche or exemption,
at the beginning of a reserve computation period.
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(e) Computation of transaction accounts. Overdrafts in demand deposit or other transaction accounts are not
to be treated as negative demand deposits or negative transaction
accounts and shall not be netted since overdrafts are properly reflected
on an institution’s books as assets. However, where a customer maintains
multiple transaction accounts with a depository institution, overdrafts
in one account pursuant to a bona fide cash-management arrangement
are permitted to be netted against balances in other related transaction
accounts for reserve requirement purposes.
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(f) The Board
and the Federal Reserve Banks will not hold a pass-through correspondent
responsible for guaranteeing the accuracy of the reports of deposits
submitted by its respondents.
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(g) (1) For purposes of this section,
a depository institution, a U.S. branch or agency of a foreign bank,
or an Edge or Agreement corporation is located in the Federal Reserve
District that contains the location specified in the institution’s
charter, organizing certificate, license, or articles of incorporation,
or as specified by the institution’s primary regulator, or if no such
location is specified, the location of its head office, unless otherwise
determined by the Board under paragraph (g)(2) of this section.
(2) If the location specified
in paragraph (g)(1) of this section, in the Board’s judgment, is ambiguous,
would impede the ability of the Board or the Federal Reserve Banks
to perform their functions under the Federal Reserve Act, or would
impede the ability of the institution to operate efficiently, the
Board will determine the Federal Reserve District in which the institution
is located, after consultation with the institution and the relevant
Federal Reserve Banks. The relevant Federal Reserve Banks are the
Federal Reserve Bank whose District contains the location specified
in paragraph (g)(1) of this section and the Federal Reserve Bank in
whose District the institution is proposed to be located. In making
this determination, the Board will consider any applicable laws, the
business needs of the institution, the location of the institution’s
head office, the locations where the institution performs its business,
and the locations that would allow the institution, the Board, and
the Federal Reserve Banks to perform their functions efficiently and
effectively.
