Page:United States Statutes at Large Volume 96 Part 2.djvu/157

 PUBLIC LAW 97-320—OCT. 15, 1982

96 STAT. 1519

guarantee, acceptance, or letter of credit equal to the minimum percentage required at the inception of the transaction. "(3) A low-quality asset shall not be acceptable as collateral for a loan or extension of credit to, or guarantee, acceptance, or letter of credit issued on behalf of, an affiliate. "(4) The securities issued by an affiliate of the member bank shall not be acceptable as collateral for a loan or extension of credit to, or guarantee, acceptance, or letter of credit issued on behalf of, that affiliate or any other affiliate of the member bank. "(5) The collateral requirements of this paragraph shall not be applicable to an acceptance that is already fully secured either by attached documents or by other property having an ascertainable market value that is involved in the transaction. "(d) EXEMPTIONS.—The provisions of this section, except paragraph (a)(4), shall not be applicable to— "(1) any transaction, except for the purchase of a low-quality asset which is prohibited, with a bank— "(A) which controls 80 per centum or more of the voting shares of the member bank; "(B) in which the member bank controls 80 per centum or more of the voting shares; or "(C) in which 80 per centum or more of the voting shares are controlled by the company that controls 80 per centum or more of the voting shares of the member bank; "(2) making deposits in an affiliated bank or affiliated foreign bank in the ordinary course of correspondent business, subject to any restrictions that the Board may prescribe by regulation or order; "(3) giving immediate credit to an affiliate for uncollected items received in the ordinary course of business; "(4) making a loan or extension of credit to, or issuing a guarantee, acceptance, or letter of credit on behalf of, an affiliate that is fully secured by— "(A) obligations of the United States or its agencies; "(B) obligations fully guaranteed by the United States or its agencies as to principal and interest; or "(C) a segregated, earmarked deposit account with the member bank; "(5) purchasing securities issued by any company of the kinds described in section 4(c)(1) of the Bank Holding Company Act of 1956; "(6) purchasing assets having a readily identifiable and publicly available market quotation and purchased at that market quotation or purchasing loans on a non-recourse basis from affiliated banks; and "(7) purchasing from an affiliate a loan or extension of credit that was originated by the member bank and sold to the affiliate subject to a repurchase agreement or with recourse. "(e) RULEMAKING AND ADDITIONAL EXEMPTIONS.—

"(1) The Board may issue such further regulations and orders, including definitions consistent with this section, as may be necessary to administer and carry out the purposes of this section and to prevent evasions thereof. "(2) The Board may, at its discretion, by regulation or order exempt transactions or relationships from the requirements of

12 USC 1843.

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