Board of Governors of the Federal Reserve System

Federal Reserve Board staff have developed appropriate Frequently Asked Questions (FAQs) to assist organizations in aligning with the W Board's recommendations. Except as noted below, these FAQs are employee interpretations and have not been approved by the Governing Council. Employees will have every opportunity to supplement and amend these FAQs as necessary. Any issues with the content of the FAQs or requests to change, discontinue, or remove the Footprints should be addressed through the Contact Us form.

As a Whole

Part A Introduction and Definitions

12 CFR 223. 2 (What is the "connected face" of sections 23A and 23B and the portions provided?)

12 CFR 223. 3 (The meaning of sections 23A, 23B, and other definitions used in the provisions).

Part B Joint Provisions of Section 23A

12 CFR 223. 11 (What is the maximum number of covered transactions that an affiliate bank may enter into with any one affiliate?) 12 CFR 223. 14 (What are the requirements for securing related party credit transactions?)

12 CFR 223. 15 (Can a lower-quality member bank purchase from a related party?)

12 CFR 223. 16 (What activities of a member bank with at least one related party are considered related party operations?)

Subsection C - Valuation and time-setting basis in coordination with Section 23A

R. 223, §§ 21-22 (What are the valuation and time-setting basis used for credit transactions and asset purchases?)

Subsection D - Other requirements in coordination with Section 23A

12 CFR 223. 31 (When Section 23A is used for a purchase of an affiliate by a bank member and the affiliate is purchased by an operating subsidiary of the member bank). Part E - Exceptions to the Provisions of Section 23A 11

12 CFR 223. 41 (What activities are excluded from the quantitative limitations and secured claims?)

12 CFR 223. 42 (What edits would eliminate the quantitative limitations, secured claims, and prohibitions on low-quality assets?)

Subpart F of Section 23B Joint Position

12 CFR 223. 56 (General Provisions of Section 23B)

Question 1: Has State W been amended to reflect the amendments to Sections 23A and 23B of the Federal Reserve Act (FRA) implemented by the Dodd-Frank Wall Street Reform and Customer Advocacy Act (Dodd-Frank Act)?

A1: Regulation W has not yet been revised, reflecting changes in FRA Articles 23A and 23B by the Dodd Frank Law. However, a change in FRA Article 23A and 23B by the Dodd Frank Act was enforced on July 21, 2011. The Dodd Frank Act has revised the exemption of the application of Article 23A to the deposit organization (IDI), and generally gives the authority of the iDi's major Bank Organization for such a request by orders. It was. Therefore, if the board of directors and the OCC jointly not allowed such exemptions and determined that it would match the purpose of the 23A Article, the currency supervision (OCC) was native. The transaction of the bank or the federal savings union can be exempted from the requirements of Article 23A. (II) If you notify the Federal Deposit Insurance Corporation (FDIC) to the Federal Deposit Insurance Corporation, and within 60 days, the exemption is not an objection in writing, stating that it is an unacceptable risk for the deposit insurance fund. By order, FDIC can compensate for the Bank of State Bank and the State Saving Association.

In General

Source: The United States Law Collection Article 371C; PUB. L. 111-203, Article 608 (D), Article 609 (D).

Question 2: Where can I see the interpretation and statements of the council about regulation W? < SPAN> A1: Regulation W has not yet been revised, reflecting changes in the FRA Article 23A and 23B by the Dodd Frank Law. However, a change in FRA Article 23A and 23B by the Dodd Frank Act was enforced on July 21, 2011. The Dodd Frank Act has revised the exemption of the application of Article 23A to the deposit organization (IDI), and generally gives the authority of the iDi's major Bank Organization for such a request by orders. It was. Therefore, if the board of directors and the OCC jointly not allowed such exemptions and determined that it would match the purpose of the 23A Article, the currency supervision (OCC) was native. The transaction of the bank or the federal savings union can be exempted from the requirements of Article 23A. (II) If you notify the Federal Deposit Insurance Corporation (FDIC) to the Federal Deposit Insurance Corporation, and within 60 days, the exemption is not an objection in writing, stating that it is an unacceptable risk for the deposit insurance fund. By order, FDIC can compensate for the Bank of State Bank and the State Saving Association.

Source: The United States Law Collection Article 371C; PUB. L. 111-203, Article 608 (D), Article 609 (D).

Question 2: Where can I see the interpretation and statements of the council about regulation W? A1: Regulation W has not yet been revised, reflecting changes in FRA Articles 23A and 23B by the Dodd Frank Law. However, a change in FRA Article 23A and 23B by the Dodd Frank Act was enforced on July 21, 2011. The Dodd Frank Act has revised the exemption of the application of Article 23A to the deposit organization (IDI), and generally gives the authority of the iDi's major Bank Organization for such a request by orders. It was. Therefore, if the board of directors and the OCC jointly not allowed such exemptions and determined that it would match the purpose of the 23A Article, the currency supervision (OCC) was native. The transaction of the bank or the federal savings union can be exempted from the requirements of Article 23A. (II) If you notify the Federal Deposit Insurance Corporation (FDIC) to the Federal Deposit Insurance Corporation, and within 60 days, the exemption is not an objection in writing, stating that it is an unacceptable risk for the deposit insurance fund. By order, FDIC can compensate for the Bank of State Bank and the State Saving Association.

Source: The United States Law Collection Article 371C; PUB. L. 111-203, Article 608 (D), Article 609 (D).

Subpart A—Introduction and Definitions

12 CFR 223.2 (What is an "affiliate" for purposes of sections 23A and 23B and this part?)

Question 2: Where can I see the interpretation and statements of the council about regulation W?

A2: In addition to the pr e-W's position (67 fed. 76560 (December 12, 2002)), some of the views of the board of directors related to FRA Article 23A and 23B are the federal report on the KK's decision (). It is published in 85 fed. REG. 76560 (December 12, 2002)). Notifications on the adoption of all exceptions of the regulation W provided by the Council since 1996 have also published on their own websites. See here. Federal Service Review Service (FRRS) has some staff support statements. The council's website contains the state notes on the full use of Article 23A, Article 23b, and the specified W.

Q1: Are the companies that dominate the subsidiaries of member banks (however, do not dominate banks and contradict the other definitions of W223. 2) are related to banks?

A1: No.

Q2: If the foreign government dominates the participants and other companies, will the company be considered a bank official?

A2: Yes, it's the relationship with the complete control of the foreign government.

Question 3: Investment portfolio companies of commercial banks or insurance companies are 223. 2 (a) (i) (i) function w, and the holding company of participating banks is Article 4 of the Bank holding company law (BHC Law). In cooperation with the abilities of (K) (H) (H) (H) or (I) commercial banks or the investment holding company of the insurance company, 12 % of the investment company's joint shares and the exercise of voting rights, When holding 4 % of the joint stock funds under Article 4 (C) (6) and the funds of the investment company for exercising voting rights, the investment company is 223.

A3: Bank holders do not have the ability to own a promotes that configure 5 % or more of each class of voting rights of the company that falls under the BHC Law, Paragraph 4 (C) (C) (C) (C) (C) (C) (6). yes.

Keypoint 67 Fed. REG. 76560, 76565 N. 39 (12 Decementer 2002).

Question 4: What kind of living situation is that the company is excluded from the definition of an "affiliated company" because the company prefers saving the site of the participating bank? < SPAN> A2: In addition to the pr e-sentence (67 Fed. 76560 (December 12, 2002)), part of the Board of Directors about FRA Article 23A and Article 23b is a federal relating to KK's decision. It is published in government report (85 fed. REG. 76560 (December 12, 2002)). Notifications on the adoption of all exceptions of the regulation W provided by the Council since 1996 have also published on their own websites. See here. Federal Service Review Service (FRRS) has some staff support statements. The council's website contains the state notes on the full use of Article 23A, Article 23b, and the specified W.

12 CFR 223.3 (What are the meanings of the other terms used in sections 23A and 23B and this part?)

Q1: Are the companies that dominate the subsidiaries of member banks (however, do not dominate banks and contradict the other definitions of W223. 2) are related to banks?

A1: No.

Q2: If the foreign government dominates the participants and other companies, will the company be considered a bank official?

A2: Yes, it's the relationship with the complete control of the foreign government.

Question 3: Investment portfolio companies of commercial banks or insurance companies are 223. 2 (a) (i) (i) function w, and the holding company of participating banks is Article 4 of the Bank holding company law (BHC Law). In cooperation with the abilities of (K) (H) (H) (H) or (I) commercial banks or the investment holding company of the insurance company, 12 % of the investment company's joint shares and the exercise of voting rights, When holding 4 % of the joint stock funds under Article 4 (C) (6) and the funds of the investment company for exercising voting rights, the investment company is 223.

A3: Bank holders do not have the ability to own a promotes that configure 5 % or more of each class of voting rights of the company that falls under the BHC Law, Paragraph 4 (C) (C) (C) (C) (C) (C) (6). yes.

Keypoint 67 Fed. REG. 76560, 76565 N. 39 (12 Decementer 2002).

Question 4: What kind of living situation is that the company is excluded from the definition of an "affiliated company" because the company prefers saving the site of the participating bank? A2: In addition to the pr e-W's position (67 fed. 76560 (December 12, 2002)), some of the views of the board of directors related to FRA Article 23A and 23B are the federal report on the KK's decision (). It is published in 85 fed. REG. 76560 (December 12, 2002)). Notifications on the adoption of all exceptions of the regulation W provided by the Council since 1996 have also published on their own websites. See here. Federal Service Review Service (FRRS) has some staff support statements. The council's website contains the state notes on the full use of Article 23A, Article 23b, and the specified W.

Q1: Are the companies that dominate the subsidiaries of member banks (however, do not dominate banks and contradict the other definitions of W223. 2) are related to banks?

A1: No.

Q2: If the foreign government dominates the participants and other companies, will the company be considered a bank official?

A2: Yes, it's the relationship with the complete control of the foreign government.

Question 3: Investment portfolio companies of commercial banks or insurance companies are 223. 2 (a) (i) (i) function w, and the holding company of participating banks is Article 4 of the Bank holding company law (BHC Law). In cooperation with the abilities of (K) (H) (H) (H) or (I) commercial banks or the investment holding company of the insurance company, 12 % of the investment company's joint shares and the exercise of voting rights, When holding 4 % of the joint stock funds under Article 4 (C) (6) and the funds of the investment company for exercising voting rights, the investment company is 223.

A3: Bank holders do not have the ability to own a promotes that configure 5 % or more of each class of voting rights of the company that falls under the BHC Law, Paragraph 4 (C) (C) (C) (C) (C) (C) (6). yes.

Keypoint 67 Fed. REG. 76560, 76565 N. 39 (12 Decementer 2002).

Question 4: What kind of living situation is that the company is excluded from the definition of an "affiliated company" because the company prefers saving the site of the participating bank?

A4: The Region excludes from the definition of "affiliated" a company that operates exclusively on the premises of an affiliated member bank. 12 CFR 223. 2 (b) (2). To claim this exception, the company must participate only in the ownership of real property used exclusively (other than that portion rented by an outside party). The bank and the nursing bank must participate under Regulation W (as found in 12 CFR 225. 24 (b)). They cannot own other property, including buildings for banks that are not nursing banks of the participating bank, and they cannot conduct other activities.

Source: J. Virgil Mattingley, Deputy Chief Counsel to the Board, Mark Oldrich, Esk. (June 20, 1986).

Question 1: If the first company consolidates other companies, does it control the other companies?

A1: Yes. A first company is considered to have controlling influence over a second company if it consolidates the second company in financial statements prepared in accordance with generally accepted accounting principles (GAAP). 12 CFR 223. 3 (g) (1) (iii).

GAAP generally requires consolidation when the consolidated company has financial control of the consolidated company. Consolidation in accordance with GAAP is generally required when a company owns a majority of the voting securities of another company and substantially exceeds the 25% threshold of voting securities for control pursuant to the FRA. GAAP also requires a company to be consolidated under the variable participation company standard if (i) the company has significant economic exposure to the variable participation company and has the ability to control the company that has the greatest influence on the company's economic indicators, or (ii) the company controls the variable participation company under a contract. These circumstances also indicate the existence of a consolidated company with a related equity investment.

This view corresponds to the Board's view on accounting consolidation and control set forth in Position Y.

Source: 12 CFR 225.

Question 2: Can a member bank increase its authorized capital through a WA and clean up the reserves used in the computation of the quantitative limits to reflect capital raised since the last consolidated status statement and profit and loss statement as of the publication date?

A2: No. Capital and excess bank membership are determined based on the last consolidated statement. 12 CFR 223.

Question 3: Related banks need to reduce cash balance and surplus used in the calculation of regulatory W quantitative restrictions in order to reflect the loss or other cas h-based loss generated after the final income and loss calculation date. Is there?

A3: No. Bank of the Bank of the Bank is based on a bank's most recent consolidated review report. 12 CFR 223. 3 (D).

Question 4: When merging with other deposits handling financial institutions, how can the related bank evaluate the capital and surplus to calculate quantitative restrictions based on regulations?

A4: Related banks that merge with other deposit handling institutions include the cash of two deposits handling institutions to calculate the quantitative restrictions of regulation W until the merged bank submits their next report. There is an option to use the total of the positive and surplus.

Question 5: Are sole proprietors considered a company in the sense of W regulation?

A5: No.

Q6: Is the trust for paid (employee stock system, pension system, etc.) be considered a company called regulation W?

A6: Yes.

Question 7 If the company dominates the promotion from a trustee, but has voting rights for the shares alone, the definition of "dominance" is the promotion owned or dominated from the trustee. Can you claim exceptions?

A7: Yes. However, the exemption of the trustee prescribed by Article 4 (F) (2) of the BHC Act is not directly applied to the trustee who has the only voting right to promotion.

Question 8: Is it regarded as a target transaction that the affiliate company purchases the proposition issued by the affiliated bank?

Question 8: No.

Question 9: When the related bank compensates for the negligence of the bank or the intentional shareholding company based on the bid contract, is this considered to be a target transaction?

O9: No.

Q10: Is this a target transaction if a shareholder company compensates to a subsidiary of the negligence or intentionally caused bank as part of the proposal contract?

O10: No.

Question 11: If a subsidiary purchases assets from a related bank and pays the assets to the subsidiary later, will this be considered a loan from a bank to a subsidiary?

O11: Yes.

Question 12: What are the specific "guarantee or letter of credit issued by related banks on behalf of related banks"?

A12: A guarantee or letter of credit issued by an affiliate bank on behalf of an affiliate bank is a guarantee or letter of credit issued by a bank to which the affiliate bank is a party (not a beneficiary) to the account. In other words, it is a transaction in which the affiliate bank promises to make payments to an unrelated party if the affiliate bank defaults on its debt.

Source: John T. Rose and Samuel H. Talley, Bank Affiliate Act of 1982: Amendments to Section 23A, 68 Fed. Res. Bull. 693, 697 n. 8 (November 1982); S. Rep. No. 97-536, at 32 (1982).

Q13: Can an affiliate bank's lien on a loan from an affiliate bank be guaranteed by the bank on behalf of the affiliate bank?

A13: Yes, up to the lesser of (i) the market value of the collateral or (ii) the amount of the loan.

Source: Letter from Board Counsel J. Virgil Mattingly to Attorney Richard Lasner (August 6, 1993).

Q14: Are keepwell agreements, in which an affiliate bank commits to maintain the affiliate bank's capital levels or solvency, guaranteed by the affiliate bank on behalf of the affiliate bank?

O14: Yes.

Source: 67 Fed. Reg. 76560, 76569 (December 12, 2002).

Q15: Is an affiliate bank that purchases from a non-affiliate a guarantee or letter of credit issued on behalf of an affiliate, or a committed letter of credit issued by the non-affiliate on behalf of an affiliate, treated as having issued a guarantee or letter of credit on behalf of the affiliate?

O15: Yes.

Q16: What subordinated debt is considered to be the company's capital?

A16: Subordinated debt that is accounted for in the company's regulatory capital is treated as the company's capital. In addition, subordinated debt that is mandatorily convertible or convertible at the option of the holder into share capital of the company is treated as share capital of the company. Other subordinated debt may be treated as capital of the company after considering all facts and circumstances.

Q17: If an affiliated bank purchases a loan or other asset from an affiliated bank but retains a right of recourse against the affiliated bank in respect of the asset, is that considered a loan from the bank to the affiliated bank?

O17: Yes.

Q18: If an affiliated bank purchases a loan provided to an affiliated bank by a non-affiliated bank, was the loan provided by the affiliated bank to the affiliated bank?

A18: Yes.

Question 19: When related banks lease real estate from an affiliated company, the lease is considered a rental with absolute payment and does not fall under successful leasing, but the US Federal Law and Federal Regulations. Is it permissible that an affiliate will make a loan based on the 12th part of the collection 12 (CFR PART 23)?

A19: Yes.

A19: Yes: 67 fed. REG. 76560, 76570 (12 Decementer 2002).

Q20: When a member bank lends a no n-related company that uses the method acquired to get the promotion issued by a bank affiliate, and the loan bank loan to an affiliated company, the promotion is stipulated. If so, will such a loan be made?

Subpart B—General Provisions of Section 23A

12 CFR 223.11 (What is the maximum amount of covered transactions that a member bank may enter into with any single affiliate?)

A20: Yes, the work provided is considered a loan by the Bank of the Bank (not considered to be the approval of securities issued by the stakeholders). In accordance with this, the Member Bank needs to comply with the quantitative restrictions prescribed in the W regulations and requests for provision.

Вопос 21: ооман «аноцац «санал» быт хой дочоч оом сом сом ц и с w?

O21: н.

К: 67 fed. REG. 76560, 76565 (12 деаб 2002 г.).

Вопос 22: м мо возожос иата иана ой саты ворац «касованы» оомопде н нокач нача в с с с рац?

12 CFR 223.14 (What are the collateral requirements for a credit transaction with an affiliate?)

O22: е. Ио ае ным еы аом тор палам.

Вопос 23: б пан подае мованом лавом оава, бде банас що уованого ла, с оало салокачач аом аом оол иол иол?

O23: да, уов, чом налалалалаласасасом иом яом яос яос яос зокачом.

В24: с возого, того, чотом потоводатые поворы иац, вац саная сая сана аеа ва в ванон

O24: No. Later, due to the review of criteria and restructures related to the transfer of funds from the financial state of the borrower, the real estate remained lo w-quality assets each time, and the borrower had long been tailed to the assets.

Question 25: Is it considered to be acquired by assets of relevant if the relevant transfers real estate to participating banks and receives it as a single price of the bank promotion?

A25: No, this is treated as an affiliated company's investment in banks and is not generally considered to be a regulation W target transaction.

Q26: Is this a target transaction if an affiliated company transfers the promised money to an affiliated bank, and at the same time swinging the same amount of foreign currency into the bank?

A26: No, if the transfer is performed at the same time, the currency method is displayed in the same currency, and the required required amount is constant, it is not eligible.

Q27: If the related banks and related banks perform asset swaps, will they be considered a asset purchase from related banks by related banks?

12 CFR 223.15 (May a member bank purchase a low-quality asset from an affiliate?)

A27: Yes, if only the assets received by affiliated banks are not considered foreign exchange rates.

Q28: How is the "securities" defined in W regulations?

A28: When determining which financial products will be regarded as securities in W regulations, the council generally relies on the Federal Securities Law.

Question 1: If the Bank of the Bank holds 100 % of the partner A and the partner A owns 100 % of the partner B, the bank receives a 10 % separate frame for both partner A and partner B. Is it more?

A1: Yes, if branch A uses branch B as a fund broker, you can apply the regulatory W.

12 CFR 223.16 (What transactions by a member bank with any person are treated as transactions with an affiliate?)

Question 2: If the banking bank has a decrease in bank funds or the price of the previously existed cover transactions exceeds 10 % or 20 % quantitative restrictions, the state W has an existing cover transaction to the participating bank. Do you want to cancel?

A2: No. The quantitative restriction of regulation W is to prohibit the Bank from participating in new cover transactions if the bank later exceeds 10 % or 20 %. However, margin trading is needed every day to meet the collateral requirements prescribed in the rules, so raising the price of existing margin transactions may require related banks to provide collateral. 。

Basebook: 67 fed. REG. 76560, 76572 (December 12, 2002).

Q1: Is it possible for related banks to apply for a guarantee of no n-related party to meet the collateral requirements of regulations?

A1: Even if collateral is provided by US local government agencies, that is not possible. The conspiracy that restricts the privilege of US regional organizations as the only credit risk is not yet the exception of Article 223, Paragraph 42 (C).

Question 2: Does state require a partner bank that accepts a deposit account to have another deposit account that has been separated in order to secure the target transactions with the partner?

A2: No. Depending on the living environment, it may be appropriate to increase the number of relevant and certain transactions and introduce a joint separation certificate account. In any case, the bank needs to maintain the intermediate equity of the pledge that satisfies the completion and priority rights 12 CFR 223. 14.

Key: 67 fed. REG. 76560, 76573 (December 12, 2002).

Question 3: Do you have the ability to execute the provisions of the provisions of the provisions that receive credit protection that referring to credit positions with relevant, under the name of credit, standard swaps and other credit deriva tibes?

A3: Not.

Key: 67 Fed. REG. 76560, 76573 N. 91 (Decementer 12, 2002).

Question 4: How can the member Bank, which have repeatedly provided credit frames with related people, guarantee exceptions stipulated in 12CFR223. 14 (F) (2)?

A4: Banks that use this exception are that the amount of collateral committed to providing the loan part during all new use of the loan is equivalent to the threshold specified in 12CFR223. 14 (b). You need to guarantee. Other textbooks include affiliated personality, adjusting to a claim to the provided W, and has a sufficient volume to cover all unprocessed imports (including new charms) to secure a new recruitment at the time of new recruitment. Must be given.

Question 1: How is the participating bank relevant to the transactions that buy Dalias's contributions with all the promotions of lo w-quality promises and assets? < SPAN> Question 2: Does the state require a partner bank that accepts a deposit account to have another deposit account that has been separated in order to secure the target transactions with the partner?

A2: No. Depending on the living environment, it may be appropriate to increase the number of relevant and certain transactions and introduce a joint separation certificate account. In any case, the bank needs to maintain the intermediate equity of the pledge that satisfies the completion and priority rights 12 CFR 223. 14.

Key: 67 fed. REG. 76560, 76573 (December 12, 2002).

Question 3: Do you have the ability to execute the provisions of the provisions of the provisions that receive credit protection that referring to credit positions with relevant, under the name of credit, standard swaps and other credit deriva tibes?

A3: Not.

Key: 67 Fed. REG. 76560, 76573 N. 91 (Decementer 12, 2002).

Question 4: How can the member Bank, which have repeatedly provided credit frames with related people, guarantee exceptions stipulated in 12CFR223. 14 (F) (2)?

A4: Banks that use this exception are that the amount of collateral committed to providing the loan part during all new use of the loan is equivalent to the threshold specified in 12CFR223. 14 (b). You need to guarantee. Other textbooks include affiliated personality, adjusting to a claim to the provided W, and has a sufficient volume to cover all unprocessed imports (including new charms) to secure a new recruitment at the time of new recruitment. Must be given.

Source: 12 CFR 225.

A2: No. Depending on the living environment, it may be appropriate to increase the number of relevant and certain transactions and introduce a joint separation certificate account. In any case, the bank needs to maintain the intermediate equity of the pledge that satisfies the completion and priority rights 12 CFR 223. 14.

Key: 67 fed. REG. 76560, 76573 (December 12, 2002).

Question 3: Do you have the ability to execute the provisions of the provisions of the provisions that receive credit protection that referring to credit positions with relevant, under the name of credit, standard swaps and other credit deriva tibes?

A3: Not.

Key: 67 Fed. REG. 76560, 76573 N. 91 (Decementer 12, 2002).

Question 4: How can the member Bank, which have repeatedly provided credit frames with related people, guarantee exceptions stipulated in 12CFR223. 14 (F) (2)?

A4: Banks that use this exception should be equivalent to the threshold specified by 12CFR223. 14 (b) when the loan is all new when used in the loan. You need to guarantee. Other textbooks include affiliated personality, adjusting to a claim to the provided W, and has a sufficient volume to cover all unprocessed imports (including new charm) to secure a new recruitment at the time of new recruitment. Must be given.

Question 1: How is the participating bank relevant to the transactions that buy Dalias's contributions with all the promotions of lo w-quality promises and assets?

A1: This conspiracy would be considered a purchase of assets by an affiliated bank from an affiliated bank pursuant to 12 CFR 223. 31 and should be measured pursuant to this section, except that the Board would not consider it a purchase of low-quality assets from a subsidiary if (i) the working capital contributed to the affiliated bank as part of the transaction (the value of the assets of the business transferred, less any promises for the business transferred, plus any foreign exchange that may otherwise be contributed to the bank) is equal to or greater than the value of the low-quality assets transferred, and (ii) the capital contributed to the bank as part of the transaction (less the low-quality assets transferred) leaves the transferred branch reasonably capitalized.

Legend Message from Robert D. W. Frierson, Deputy Secretary of the Board, to Winthrop N. Brown, Attorney, December 22, 2004, available here. Message from Robert D. W. Frierson, Deputy Secretary of the Board, to Carl W. Howard, Attorney, August 28, 2001, available here.

Question 2: If an affiliated bank receives substandard assets from an affiliated bank free of charge, does the affiliated bank have the right to buy the assets?

A2: No, unless the assets transferred are unused loan portions or relate to other promises the bank receives in accepting deposits.

Question 1: What transactions are subject to the attribution rule? Will the Board use the attribution rule to prevent evasion of Regulation W?

A1: The rules for the Wraws are transactions between related banks and relevant banks, as long as the transaction profits are used or relocated for the interests of related banks. It is set. The purpose of the belonging criteria is to prevent related banks from avoiding restrictions on regulation W by using intermediaries, and restrict the risk of related banks to the relevant bank customers. Furthermore, unlike regulations O, State W does not stipulate the exemption of the application of belonging criteria for transactions used for fair and normal products from affiliates from affiliates. However, W State has many specific exceptions to the belonging standard. 12 CFR 223. 16 (b)-(c). Furthermore, the council staff generally did not know whether the banks of the bank were used for the interests of the affiliated companies at the time of transactions, or that they were transferred to an affiliate. In this case, we do not advise the council to take forced measures to the related banks. However, it is limited to if the bank has maintained a reasonable policy and procedure to secure the compliance with regulation W during the transaction.

Source: 67 Fed. 76560, 76576 (December 12, 2002).

Subpart C—Valuation and Timing Principles under Section 23A

12 CFR 223.21-.22 (What valuation and timing principles apply to credit transactions and asset purchases?)

Q2: Is the roles applicable only to transactions with related banks and no n-related banks?

A2: No. The rules are applied to transactions between related banks and parties (whether they are related banks). Therefore, it is not possible for a series bank to mediate with other affiliated banks with the affiliated bank that exceeds the quantitative restrictions of the banks applied to the affiliated bank. For example, if an affiliated bank transfers a loan to an affiliated company A and lends it to an affiliated company B, the Board of Directors usually uses the belonging rules and evaluates the transaction as a bank has transferred a loan to an affiliated company B.

Question 3: If the related bank lends $ 100 to no n-related companies, and only the US $ 5 is transferred or allocated to the relevant bank, how much is the transaction amount to be based on the belonging rules? < SPAN> A1: The rules of the Wraws are transactions between related banks and relevant banks, as long as the transaction revenue is used or relocated for the interests of related banks. It is stipulated. The purpose of the belonging criteria is to prevent related banks from avoiding restrictions on regulation W by using intermediaries, and restrict the risk of related banks to the relevant bank customers. Furthermore, unlike regulations O, State W does not stipulate the exemption of the application of belonging criteria for transactions used for fair and normal products from affiliates from affiliates. However, W State has many specific exceptions to the belonging standard. 12 CFR 223. 16 (b)-(c). Furthermore, the council staff generally did not know whether the banks of the bank were used for the interests of the affiliated companies at the time of transactions, or that they were transferred to an affiliate. In this case, we do not advise the council to take forced measures to the related banks. However, it is limited to if the bank has maintained a reasonable policy and procedure to secure the compliance with regulation W during the transaction.

Source: 67 Fed. 76560, 76576 (December 12, 2002).

Q2: Is the roles applicable only to transactions with related banks and no n-related banks?

A2: No. The rules are applied to transactions between related banks and parties (whether they are related banks). Therefore, it is not possible for a series bank to mediate with other affiliated banks with the affiliated bank that exceeds the quantitative restrictions of the banks applied to the affiliated bank. For example, when related banks transfer loans to affiliated company A and lend them to affiliated company B, the Board of Directors usually uses the belonging rules and evaluates transactions as the bank has transferred a loan to an affiliated company B.

Question 3: If the related bank lends $ 100 to no n-related companies, and only the US $ 5 is transferred or allocated to the relevant bank, how much is the transaction amount to be based on the belonging rules? A1: The rules for the Wraws are transactions between related banks and relevant banks, as long as the transaction profits are used or relocated for the interests of related banks. It is set. The purpose of the belonging criteria is to prevent related banks from avoiding restrictions on regulation W by using intermediaries, and restrict the risk of related banks to the relevant bank customers. Furthermore, unlike regulations O, State W does not stipulate the exemption of the application of belonging criteria for transactions used for fair and normal products from affiliates from affiliates. However, W State has many specific exceptions to the belonging standard. 12 CFR 223. 16 (b)-(c). Furthermore, the council staff generally did not know whether the banks of the bank were used for the interests of affiliated companies, or were transferred to affiliated companies at the time of transactions. In this case, we do not advise the council to take forced measures to the related banks. However, it is limited to if the bank has maintained a reasonable policy and procedure to secure the compliance with regulation W during the transaction.

Source: 67 Fed. 76560, 76576 (December 12, 2002).

Q2: Is the roles applicable only to transactions with related banks and no n-related banks?

A2: No. The rules are applied to transactions between related banks and parties (whether they are related banks). Therefore, it is not possible for a series bank to mediate with other affiliated banks with the affiliated bank that exceeds the quantitative restrictions of the banks applied to the affiliated bank. For example, when related banks transfer loans to affiliated company A and lend them to affiliated company B, the Board of Directors usually uses the belonging rules and evaluates transactions as the bank has transferred a loan to an affiliated company B.

Question 3: If the related bank lends $ 100 to no n-related companies, and only the US $ 5 is transferred or allocated to the relevant bank, how much is the transaction amount to be based on the belonging rules?

A3: The To Own Rule is used for transactions that are within the range of transactions applied to the interests of affiliated companies or relocated to the interests of affiliated companies. Therefore, the amount of target transactions in this scenario is $ 5.

Question 3: Investment portfolio companies of commercial banks or insurance companies are 223. 2 (a) (i) (i) function w, and the holding company of participating banks is Article 4 of the Bank holding company law (BHC Law). In cooperation with the abilities of (K) (H) (H) (H) or (I) commercial banks or the investment holding company of the insurance company, 12 % of the investment company's joint shares and the exercise of voting rights, When holding 4 % of the joint stock funds under Article 4 (C) (6) and the funds of the investment company for exercising voting rights, the investment company is 223.

A4: In the adjustments with the classification rules, the provided operations are considered to be the transfer of loans to stakeholders by banks. 12 CFR 223.

Key: Richard S. Brennan Michael Bradfield message (March 21, 1988).

Question 5: Bank of Nursing Bank B has lent borrowings to Bank B, but Bank of Nursing B. In this case, the target transaction of the Bank of Nursing is ta x-exempt, but will the provisions of allocation apply?

A5: As a rule, not. B Nursing Bank is not ta x-exempt to trade with stakeholders. The pocket of Nursing Bank and Nursing Bank B will be ta x-exempt for Nursing Banks, and the Nursing Bank A is the Nursing Bank A and the Nursing Bank A in the position of ta x-exempt between the Nursing Bank B and the related persons. In order to resolve the requests of the Article and the provisions of W., it is not possible with the division rules unless such a contract content.

Subpart D—Other Requirements under Section 23A

12 CFR 223.31 (How does section 23A apply to a member bank's acquisition of an affiliate that becomes an operating subsidiary of the member bank after the acquisition?)

Q6: If the participating bank purchases assets from related people within the ta x-exempt transaction, and transferred the methods obtained with the related person to the related person B, the participating banks will be subject to the relevant person B. Are the rules of the classification applied?

O6: Generally, not. For example, the rules of classification do not apply, such as when participating banks are colluding with related person B, but if the contract is not to avoid the request of Article 23A or W regulations, the rules of the classification. In cooperation with, participating banks will not be collusion with related B.

Question 7: The rules of the Allocation understand that the interests of affiliated banks are likely to be allocated for the interests of related people or relocated to relevant people. Is it used only when it contains the cause of aristocracy?

A7: Credit Rules coordinates the standards and coordinates when the profit caused by the Bank of Member is allocated to the interests of the affiliates of the member Bank, or to the affiliated Bank. Used. 12 CFR 223. 16. However, in principle, the counsel employee does not actually know the nobles at the time of trading, or if there is no reason, the profit of profit transactions is actually applied in interest. Or that the bank may be transferred to an affiliated person, the bank will control the provisions W that controls the interests of credit transactions with the parties that include business items that are actually related to banks. We do not advise on the Bank of Paylords to take forced measures on the condition that we support careful procedures and processes.

Q8: When the member bank lends to an unrelated person, considering the aristocratic reasons, the actual personality is to transmit the method of the member of the Bank, and the transfer of the loan to the unrelated person. Do you convert it for many days unless you have a duty to consider it?

A8: Member banks are obliged to consider the transfer of a loan as a position covered by more appropriate factors: (i), or (II) Bank when executing an affiliated company. In the case of a noble or reason, as it is actually assumed, the method is to receive it from an affiliated company, and the possibility of what will happen when a loan is actually granted. There is.

Question 9: Bank holding companies have more than 25 % of Company A's joint investment funds. Ban k-shaped Banking Society of Bank holding companies agrees the regulation W and lends Company A, which is not an affiliated bank.

O9: No. Whether the bank's parent company holding company has some promotions of Company A, Company A itself is not regarded as an affiliated bank of the consent book W, so the rules of the overall classification are provided. Not used as a scheme.

Q10: The loan provided by the bank member employee of the stakeholders applied to most of the employees' interests and was not sent to the stakeholders in cooperation with Lady Lek to provide people involved. Are you considered something?

O10: No.

Question 11: Will the rules for the loan issued by bank members be used only because it was actually provided by the insider of a bank official?

A11: No, but there is a good chance that other precedents and situations will lead to the use of belonging criteria. In any case, the transfer of loans shall be in accordance with other requirements related to Article 22 (H) of the Federal Preparatory Law (Article 375 B) (Article 375 of the United States Law Collection) and the Board of Directors O (Article 215 of the 12 CFR). It will be.

Subpart E—Exemptions from the Provisions of Section 23A

12 CFR 223.41 (What covered transactions are exempt from the quantitative limits and collateral requirements?)

Q12: When the related banks make loans to no n-related people, and use the loan slot to purchase securities issued by related banks, will they apply?

A12: In the primary market, if no n-related people purchase securities from relevant people, they apply the rules to be resigned. If no n-related people purchase securities from affiliates from no n-related companies in the distribution market, unless they are adjusted in this way to avoid the requirements of section 23A and regulation W from an affiliated company. , Usually, no attribution rules are not used.

Q13: A loan branch of a bank loan the property purchase funds to a retailer that is not an affiliated bank, and the affiliated bank purchases the product from a no n-related company that is obtained with the funds obtained. If I make a loan to a no n-company person, will the attribution rules be applied?

A13: Yes. The Rules of the Remarks are used for the size of the floor finance provided by related bank lenders to no n-related retailers.

Q14: Based on the belonging rules, if a part of the loan provided by the affiliated bank to no n-relevant people is treated as provided to the affiliated bank, if the no n-related person repays the amount required of the loan, the target is eligible. How will the transaction amount be reduced? A14: If you repay the amount required of the loan, how will the amount of the target transaction be reduced?

A14: Participating banks have an option that reduces the amount required for target transactions in proportion to the repayment of the loan by no n-related parties. For example, a relevant bank has made a 100 euros loan to a no n-related entity, and that the entity purchased assets from a ban k-related entity using 20 euros out of the loan. The initial cover transaction amount is $ 20. If a no n-related company pays a bank loan required by $ 10, the bank has an option to reduce the required amount of target transactions by $ 2 (20 % of the initial amount of this loan) Along with the initial distribution of allocation to affiliated companies).

Question 15: Is it only used by related banks to issue a guarantee of a securities issued by the relevant banks considered a no n-affiliated person?

O15: No. However, the transaction is applied to the regulatory W market conditions requirements. 12 CFR 223. 51.

Source: 67 fed. REG. 76560, 76569 (12 Decementers 2002) (62 Fed. Reg. 45295, 45299 (Aug. 27, 1997)).

Q16: Is it possible to extend the loan if the related bank loan to a no n-related business and purchases assets from a related bank with the funds (that is, when it is considered to have been loaned by the related entities)? Also, is it treated as a loan to related companies based on the rules of allocation?

Question 11: Will the rules for the loan issued by bank members be used only because it was actually provided by the insider of a bank official?

Question 17: If the related bank provides a roan to no n-related companies for 5 years, and the no n-related company provides a loan for one year to the related banks, the bank will provide a year roan, Will it not be applied? Will the loan for 5 years or one year be repaid?

Keypoint 67 Fed. REG. 76560, 76565 N. 39 (12 Decementer 2002).

Question 1: When related banks buy a revolving credit facility party, from an affiliated company, the bank is an affiliated company only at the first purchase of the parties. Do you get assets from affiliated companies if you get assets from or if your bank supplies additional money under the revolving credit line?

A1: If the related banks are first purchased, they are obliged to provide funds to additional loans, and if they do not give the right to make their own credit decisions before the loan based on the credit frame. It is considered to have acquired a party. Therefore, even if it becomes a subprime asset, the participating bank can continue to raise additional financing under the revolving credit facility.

12 CFR 223.42 (What covered transactions are exempt from the quantitative limits, collateral requirements, and low-quality asset prohibition?)

Question 2: Should a accidental debt be included as a debt when calculating the target transaction amount in order to evaluate the acquisition or purchase of related banks? < SPAN> O15: No. However, the transaction is applied to the regulatory W market conditions requirements. 12 CFR 223. 51.

Source: 67 fed. REG. 76560, 76569 (12 Decementers 2002) (62 Fed. Reg. 45295, 45299 (Aug. 27, 1997)).

Q16: Is it possible to extend the loan if the related bank loan to a no n-related business and purchases assets from a related bank with the funds (that is, when it is considered to have been loaned by the related entities)? Also, is it treated as a loan to related companies based on the rules of allocation?

O16: Yes.

Question 17: If the related bank provides a roan to no n-related companies for 5 years, and the no n-related company provides a loan for one year to the related banks, the bank will provide a year roan, Will it not be applied? Will the loan for 5 years or one year be repaid?

A17: A roan for a no n-related company provided by a no n-related company to affiliates, the repayment deadline, the debt was repaid in full, and the repayment of the loan was repaid to the related banks, and related bank lines. If it is not used for profit, the allocation rules will not be applied.

Question 1: When related banks buy a revolving credit facility party, from an affiliated company, the bank is an affiliated company only at the first purchase of the parties. Do you get assets from affiliated companies if you get assets from or if your bank supplies additional money under the revolving credit line?

A1: If the related banks are first purchased, they are obliged to provide funds to additional loans, and if they do not give the right to make their own credit decisions before the loan based on the credit frame. It is considered to have acquired a party. Therefore, even if it becomes a subprime asset, the participating bank can continue to raise additional financing under the revolving credit facility.

Question 2: Should a accidental debt be included as a debt when calculating the target transaction amount in order to evaluate the acquisition or purchase of related banks? O15: No. However, the transaction is applied to the regulatory W market conditions requirements. 12 CFR 223. 51.

Source: 67 fed. REG. 76560, 76569 (12 Decementers 2002) (62 Fed. Reg. 45295, 45299 (Aug. 27, 1997)).

Q16: Is it possible to extend the loan if the related bank loan to a no n-related business and purchases assets from a related bank with the funds (that is, when it is considered to have been loaned by the related entities)? Also, is it treated as a loan to related companies based on the rules of allocation?

O16: Yes.

Subpart F—General Provisions of Section 23B

12 CFR 223.51–.56 (General provisions of section 23B)

Question 17: If the related bank provides a roan to no n-related companies for 5 years, and the no n-related company provides a loan for one year to the related banks, the bank will provide a year roan, Will it not be applied? Will the loan for 5 years or one year be repaid?

A17: A roan for a no n-related company provided by a no n-related company to affiliates, the repayment deadline, the debt was repaid in full, and the repayment of the loan was repaid to the related banks, and related bank lines. If it is not used for profit, the allocation rules will not be applied.

Question 1: When related banks buy a revolving credit facility party, from an affiliated company, the bank is an affiliated company only at the first purchase of the parties. Do you get assets from affiliated companies if you get assets from or if your bank supplies additional money under the revolving credit line?

A1: If the related banks are first purchased, they are obliged to provide funds to additional loans, and if they do not give the right to make their own credit decisions before the loan based on the credit frame. It is considered to have acquired a party. Therefore, even if it becomes a subprime asset, the participating bank can continue to raise additional financing under the revolving credit facility.

Question 2: Should a accidental debt be included as a debt when calculating the target transaction amount in order to evaluate the acquisition or purchase of related banks?

A2: Yes. In addition, when calculating the transaction amount to be purchased for specified asset, the W State will be requested to include the pledges underwent by the participating bank. 12 CFR Article 223. 21 (A) (2), Article 223. 22 (a), and Article 223. 31. In the purpose of these sections, promises include not only promises on the balance sheet adopted by the member bank in connection with the transaction, but also generally relative promises. However, when the member Bank purchases an unused relative promise in the name of the unused credit series (that is, the trusted affiliate that the member bank is regarded as the borrower), the unused part of the confidential affiliate data is eligible. It may not be associated with the payment of the transaction amount.

A12: A guarantee or letter of credit issued by an affiliate bank on behalf of an affiliate bank is a guarantee or letter of credit issued by a bank to which the affiliate bank is a party (not a beneficiary) to the account. In other words, it is a transaction in which the affiliate bank promises to make payments to an unrelated party if the affiliate bank defaults on its debt.