Board of Governors of the Federal Reserve System 12 CFR pt 211 Flashcards
211.1 authority, purpose and scope
c. scope
1. member banks with respect to foreign branches and investments in foreign banks and
2. corps organized under 25A of the FRA
3. corps having an agreement or undertaking with the board under section 25 of the FRA
4. bank holding companies with respect to exemption from the nonbonding prohibitions of the BHS act 12 USC 1843(c)(13)
211.2 definitions
a. an affiliate of an organization means:
1. any entity of which the organization is a direct or indirect subsidiary or
2. any direct or indirect subsidiary of the organization or such entity
c. capital and surplus means
1. for organizations subject to the capital adequacy guidelines
(i) tier 1 and tier 2 capital included in an organizations risk based capital and
(ii) the balance of allowance for loan and lease losses not included in an organization’s tier 2 capital for calculation of risk based capital, based on the organizations most recent consolidated report of condition income
2. for all other organizations, paid in and unimpaired capital and surplus, and includes undivided profits but does not include the proceeds of capital notes or debentures
d. directly or indirectly, when used in reference to activities or investments of an organization, means activities or investments of the organizations or any subsidiary of the organization
e. eligible country means any country:
1. for which an allocated transfer risk reserve is required pursuant to 211.43 and
2. any other country that the board deems to be eligible
f. an edge corporation is engage in banking if it is ordinary engaged in the business of accepting deposits in the US from nonaffiliated persons
g. engaged in business or engaged in actives in the US means maintaining and operating an office or subsidiary in the US
h. equity means an ownership interest in an organization, through
1. voting or nonvoting shares
2. general or limited partnership interest;
3. any other form of interest conferring ownership rights, including warrants, debt, or any other interests that are convertible into shares or other ownership rights in the organization; or
4. loans that provide rights to participate in the profits or an organization, unless the investor receives a determination that such loans should not be considered equity in the circumstances of the particular investment
i. foreign or foreign country refers to one or more foreign nations, and includes the overseas territories, dependencies and insular possessions of those nations and of the US, and the commonwealth of Puerto ric
