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Title 12 — Banks and Banking

Chapter 48 — Financial Institutions Regulatory Improvement

§ 4808. Revising regulatory requirements for transfers of all types of assets with recourse

Statutory text

(a)

Review and revision of regulations

(1)

In general

During the 180-day period beginning on , each appropriate Federal banking agency shall, consistent with the principles of safety and soundness and the public interest—

(A)

review the agency’s regulations and written policies relating to transfers of assets with recourse by insured depository institutions; and

(B)

in consultation with the other Federal banking agencies, promulgate regulations that better reflect the exposure of an insured depository institution to credit risk from transfers of assets with recourse.

(2)

Regulations required

Before the end of the 180-day period beginning on , each appropriate Federal banking agency shall prescribe the regulations developed pursuant to paragraph (1)(B).

(b)

Regulations required

(1)

In general

After the end of the 180-day period beginning on , the amount of risk-based capital required to be maintained, under regulations prescribed by the appropriate Federal banking agency, by any insured depository institution with respect to assets transferred with recourse by such institution may not exceed the maximum amount of recourse for which such institution is contractually liable under the recourse agreement.

(2)

Exception for safety and soundness

The appropriate Federal banking agency may require any insured depository institution to maintain risk-based capital in an amount greater than the amount determined under paragraph (1), if the agency determines, by regulation or order, that such higher amount is necessary for safety and soundness reasons.

(c)

Coordination with section 1835(b) of this title

This section shall not be construed as superseding the applicability of section 1835(b) of this title.

(d)

Definitions

For purposes of this section, the terms “appropriate Federal banking agency”, “Federal banking agency”, and “insured depository institution” have the same meanings as in section 1813 of this title.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Riegle Community Development and Regulatory Improvement Act of 1994

    Pub. L. 103–325 title III § 350 · 108 Stat. 2160

    Enacted · 12 U.S.C. § 4808

    (Pub. L. 103–325, title III, § 350, Sept. 23, 1994, 108 Stat. 2242.)

    Source evidence

    Code source credit
    (Pub. L. 103–325, title III, § 350, Sept. 23, 1994, 108 Stat. 2242.)

    Enacted provision · exact public law section
    SEC. 350. REVISING REGULATORY REQUIREMENTS FOR TRANSFERS OF ALL TYPES OF ASSETS WITH RECOURSE. (a) Review and Revision of Regulations.— (1) In general.— During the 180-day period beginning on the date of enactment of this Act, each appropriate Federal banking agency shall, consistent with the principles of safety and soundness and the public interest— (A) review the agency’s regulations and written policies relating to transfers of assets with recourse by insured depository institutions; and (B) in consultation with the other Federal banking agencies, promulgate regulations that better reflect the exposure of an insured depository institution to credit risk from transfers of assets with recourse. (2) Regulations required.— Before the end of the 180-day period beginning on the date of enactment of this Act, each appropriate Federal banking agency shall prescribe the regulations developed pursuant to paragraph (1)(B). (b) Regulations Required.— (1) In general.— After the end of the 180-day period beginning on the date of enactment of this Act, the amount of risk-based capital required to be maintained, under regulations prescribed by the appropriate Federal banking agency, by any insured depository institution with respect to assets transferred with recourse by such institution may not exceed the maximum amount of recourse for which such institution is contractually liable under the recourse agreement. (2) Exception for safety and soundness.— The appropriate Federal banking agency may require any insured depository institution to maintain risk-based capital in an amount greater than the amount determined under paragraph (1), if the agency determines, by regulation or order, that such higher amount is necessary for safety and soundness reasons. (c) Coordination With Section 208(b).— This section shall not he construed as superseding the applicability of section 208(b). (d) Definitions.— For purposes of this section, the terms “appropriate Federal banking agency”, “Federal banking agency”, and “insured depository institution” have the same meanings as in section 3 of the Federal Deposit Insurance Act.

1 of 1 references resolved to an enrolled provision

Credits

(Pub. L. 103–325, title III, § 350, , 108 Stat. 2242.)

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