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Can you summarize 12 CFR Part 223?
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM > TRANSACTIONS BETWEEN MEMBER BANKS AND THEIR AFFILIATES (REGULATION W)
Short Summary
The provided legal document content consists of excerpts from Regulation W issued by the Board of Governors of the Federal Reserve System. This regulation governs transactions between member banks and their affiliates. It establishes limitations on covered transactions between member banks and affiliates based on the aggregate amount of such transactions in relation to the member bank’s capital stock and surplus. The regulation also requires member banks to ensure that credit transactions with affiliates are secured by collateral, with specific requirements for the type of collateral and maintenance of a perfected security interest. The document mentions exemptions to the collateral requirements for certain types of transactions, such as fully secured acceptances, unused portions of certain credit extensions, and purchases of affiliate debt securities in the secondary market. Additionally, there are exemptions for renewals of loan participations involving nonaffiliate loans that were not low-quality assets at the time of purchase, subject to certain conditions. The document also addresses the treatment of transactions with any person as a transaction with an affiliate if the proceeds are used for the benefit of or transferred to an affiliate, with exemptions for certain types of transactions such as riskless principal transactions, brokerage commissions, agency fees, riskless principal mark-ups, preexisting lines of credit, and general purpose credit card transactions. The content does not mention specific penalties for non-compliance or violation of the document’s provisions.
Whom does it apply to?
Member banks, insured State nonmember banks, insured savings associations
What does it govern?
Transactions between member banks and their affiliates
What are exemptions?
Exemptions for certain transactions, such as fully secured acceptances, unused portions of certain credit extensions, purchases of affiliate debt securities in the secondary market, renewals of loan participations involving nonaffiliate loans that were not low-quality assets at the time of purchase, riskless principal transactions, brokerage commissions, agency fees, riskless principal mark-ups, preexisting lines of credit, general purpose credit card transactions
What are the Penalties?
No specific penalties mentioned
Jurisdiction
U.S. Federal Government