§ 9110. — Standards for depository institutions holding securities of a Governmentsponsored corporation for customers.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 31USC9110]
TITLE 31--MONEY AND FINANCE
SUBTITLE VI--MISCELLANEOUS
CHAPTER 91--GOVERNMENT CORPORATIONS
Sec. 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) 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 (12 U.S.C. 93(a) or (b)), section
8(b) or 8(c) of the Federal Deposit Insurance Act, section 5(d)(2) or
5(d)(3) \1\ of the Home Owners' Loan Act of 1933, section 407(e) or
407(f) \1\ 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.
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\1\ See References in Text note below.
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(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.
(Added Pub. L. 99-571, title II, Sec. 201(b)(1), Oct. 28, 1986, 100
Stat. 3223; amended Pub. L. 103-272, Sec. 4(f)(1)(AA), July 5, 1994, 108
Stat. 1363.)
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.
Section 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 Pub. L. 101-73, title III,
Sec. 301, Aug. 9, 1989, 103 Stat. 282, and no longer relates to issuance
of orders. See section 1464(d)(1) of Title 12.
Section 407 of the National Housing Act, referred to in subsec. (b),
which was classified to section 1730 of Title 12, was repealed by Pub.
L. 101-73, title IV, Sec. 407, Aug. 9, 1989, 103 Stat. 363.
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.
The International Banking Act of 1978, referred to in subsec.
(e)(1), is Pub. L. 95-369, Sept. 17, 1978, 92 Stat. 607, which enacted
sections 347d, 611a, and 3101 to 3111 of Title 12, 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 section 3101 of Title 12 and Tables.
Amendments
1994--Subsec. (e)(1). Pub. L. 103-272 substituted ``section'' for
``subparagraph''.
Effective Date; Promulgation of Regulations
Section effective 270 days after Oct. 28, 1986, except that the
Secretary of the Treasury and each appropriate regulatory agency shall
publish for notice and public comment within 120 days after Oct. 28,
1986, initial implementing regulations to become effective as temporary
regulations 210 days after Oct. 28, 1986, and as final regulations not
later than 270 days after Oct. 28, 1986, see title IV of Pub. L. 99-571,
set out as a note under section 78o-5 of Title 15, Commerce and Trade.
Transitional and Savings Provisions
For transitional and savings provisions of Pub. L. 99-571, see
section 301 of Pub. L. 99-571, set out as a note under section 78o-5 of
Title 15, Commerce and Trade.
