31 U.S.C. § 9110 | Standards for depository institutions holding securities of a Government-sponsored corporation for customers

(a)

The Secretary shall prescribe by regulation standards for the safeguarding and use of obligations that are government securities described in subparagraph (B) or (C) of section 3(a)(42) of the Securities Exchange Act of 1934. Such regulations shall apply only to a depository institution that is not a government securities broker or a government securities dealer and that holds such obligations as fiduciary, custodian, or otherwise for the account of a customer and not for its own account. Such regulations shall provide for the adequate segregation of obligations so held, including obligations which are purchased or sold subject to resale or repurchase.

(b)

12 U.S.C. 93(a)1

1 See References in Text note below.

1 Violation of a regulation prescribed under subsection (a) shall constitute adequate basis for the issuance of an order under section 5239(a) or (b) of the Revised Statutes ( or (b)), section 8(b) or 8(c) of the Federal Deposit Insurance Act, section 5(d)(2) or 5(d)(3)  of the Home Owners’ Loan Act of 1933, section 407(e) or 407(f)  of the National Housing Act, or section 206(e) or 206(f) of the Federal Credit Union Act. Such an order may be issued with respect to a depository institution by its appropriate regulatory agency and with respect to a federally insured credit union by the National Credit Union Administration.

(c)

Nothing in this section shall be construed to affect in any way the powers of such agencies under any other provision of law.

(d)

The Secretary shall, prior to adopting regulations under this section, determine with respect to each appropriate regulatory agency and the National Credit Union Administration Board, whether its rules and standards adequately meet the purposes of regulations to be promulgated under this section, and if the Secretary so determines, shall exempt any depository institution subject to such rules or standards from the regulations promulgated under this section.

(e)

As used in this subsection—

(1)

“depository institution” has the meaning stated in clauses (i) through (vi) of section 19(b)(1)(A) of the Federal Reserve Act and also includes a foreign bank, an agency or branch of a foreign bank, and a commercial lending company owned or controlled by a foreign bank (as such terms are defined in the International Banking Act of 1978).

(2)

“government securities broker” has the meaning prescribed in section 3(a)(43) of the Securities Exchange Act of 1934.

(3)

“government securities dealer” has the meaning prescribed in section 3(a)(44) of the Securities Exchange Act of 1934.

(4)

“appropriate regulatory agency” has the meaning prescribed in section 3(a)(34)(G) of the Securities Exchange Act of 1934.

Pub. L. 99–571, title II, § 201(b)(1)Oct. 28, 1986100 Stat. 3223 Pub. L. 103–272, § 4(f)(1)(AA)July 5, 1994108 Stat. 1363(Added , , ; amended , , .)

Editorial Notes

References in Text

Section 3(a)(34)(G), (42)(B), (C), (43), (44) of the Securities Exchange Act of 1934, referred to in subsecs. (a) and (e)(2)–(4), is classified to section 78c(a)(34)(G), (42)(B), (C), (43), (44) of Title 15, Commerce and Trade.

Section 8(b) or 8(c) of the Federal Deposit Insurance Act, referred to in subsec. (b), is classified to section 1818(b), (c) of Title 12, Banks and Banking.

Pub. L. 101–73, title III, § 301Aug. 9, 1989103 Stat. 282 section 1464(d)(1) of Title 12Section 5(d)(2) or 5(d)(3) of the Home Owners’ Loan Act of 1933, referred to in subsec. (b), is classified to section 1464(d)(2), (3) of Title 12, but was amended generally by , , , and no longer relates to issuance of orders. See .

section 1730 of Title 12 Pub. L. 101–73, title IV, § 407Aug. 9, 1989103 Stat. 363Section 407 of the National Housing Act, referred to in subsec. (b), which was classified to , was repealed by , , .

Section 206(e) or 206(f) of the Federal Credit Union Act, referred to in subsec. (b), is classified to section 1786(e), (f) of Title 12.

Clauses (i) through (vi) of subparagraph [section] 19(b)(1)(A) of the Federal Reserve Act, referred to in subsec. (e)(1), are classified to section 461(b)(1)(A)(i) to (vi) of Title 12.

Pub. L. 95–369Sept. 17, 197892 Stat. 607 section 3101 of Title 12The International Banking Act of 1978, referred to in subsec. (e)(1), is , , , which enacted chapter 32 (§ 3101 et seq.) and sections 347d and 611a of Title 12, Banks and Banking, amended sections 72, 378, 614, 615, 618, 619, 1813, 1815, 1817, 1818, 1820, 1821, 1822, 1823, 1828, 1829b, 1831b, and 1841 of Title 12, and enacted provisions set out as notes under sections 36, 247, 601, 611a, and 3101 of Title 12. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Amendments

Pub. L. 103–2721994—Subsec. (e)(1). substituted “section” for “subparagraph”.

Statutory Notes and Related Subsidiaries

Effective Date; Promulgation of Regulations

Oct. 28, 1986Oct. 28, 1986Oct. 28, 1986Oct. 28, 1986Pub. L. 99–571oSection effective 270 days after , except that the Secretary of the Treasury and each appropriate regulatory agency shall publish for notice and public comment within 120 days after , initial implementing regulations to become effective as temporary regulations 210 days after , and as final regulations not later than 270 days after , see title IV of , set out as a note under section 78–5 of Title 15, Commerce and Trade.

Transitional and Savings Provisions

Pub. L. 99–571 section 301 of Pub. L. 99–571oFor transitional and savings provisions of , see , set out as a note under section 78–5 of Title 15, Commerce and Trade.