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F ederal

reserve

Bank

DALLAS, TEXAS

of

Dallas

7S222

Circular No. 73-1^9
June 25, 1973

INTERPRETATION TO REGULATION Q

To All Banks and Others Concerned
in the Eleventh Federal Reserve District:
On the reverse side is the amended first paragraph of a previous
interpretation to Regulation Q, "Interest on Deposits1.
'

The original

interpretation may be found at Paragraph 3261 of the Board’s Published
Interpretations (1970 Bulletin 38).

The amendment provides for the in­

clusion of Minbanc Capital Corporation in the meaning of the term "bank"
in determining the category of "Federal funds" transactions entered into
by member banks that may be classified as nondeposit borrowings.

Minbanc

Capital Corporation was formed by the American Bankers Association to
inject needed capital into minority banks.

Y ours v e r y t r u l y ,
P. E.

C o ld w e ll

President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

TITLE 12— BANKS AND BANKING
CHAPTER II— FEDERAL RESERVE SYSTEM
SUBCHAPTER A — BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
PART 217— INTEREST ON DEPOSITS

Paragraph (a) of § 217.137 is amended to read as follows:
(a)

Effective February 12, 1970, the Board of Governors has

amended § 217.1(f) to narrow the category of "Federal funds" transactions
entered into by member banks that may be classified as nondeposit borrow­
ings rather than as deposits.

One question that arose in connection with

such amendment is the meaning of "bank" as such term is used in the exemp­
tion from Regulation Q for obligations in nondeposit form to another bank.
Such an exemption has been included in § 217.1(f) since its adoption in
1966.

As used in such exemption, "bank1 includes a member bank, a non­
*

member commercial bank, a savings bank (mutual or stock), a building or
savings and loan association or cooperative bank, the Export-Import Bank
of the United States, Minbanc Capital Corp., or a foreign bank.

It also

includes bank subsidiaries that engage in business in which their parents
are authorized to engage and subsidiaries the stock of which is by statute
explicitly eligible for purchase by national banks.
By order of the Board of Governors* June

8> 1973.

(Signed) Tynan Smith

Tynan Smith
Secretary of the Board

[SEAL]


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102