The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Federal Reserve Bank OF DALLAS ROBERT D. M C T E E R , J R . DALLAS, TE X A S P R E S ID E N T and chief executive officer December 23, 1994 75265-5906 Notice 94-126 TO: The Chief Executive Officer of each bank in the Eleventh Federal Reserve District SUBJECT Discount Rate Booklet DETAILS The Board of Governors of the Federal Reserve System has recently published a revised edition of its Discount Window booklet. The booklet is designed to promote understanding of the general policies governing the use of Federal Reserve credit. The revised booklet incorporates many recent changes. For example, both statutory and policy changes resulting from the Federal Deposit Insurance Corporation Improvement Act of 1991 are included in the booklet. Some institutions may be interested in the section of the booklet dedicated to the seasonal borrowing privilege, often referred to as seasonal credit. Seasonal credit is designed to enable qualifying institutions to meet liquidity shortfalls resulting from significant seasonal swings in their loans and deposits. Seasonal credit is subject to a market-driven interest rate that is reset every two weeks. For additional qualifying information on seasonal credit, please contact Nellie Lamb at one of the numbers listed below. ENCLOSURE A copy of the Discount Window booklet is enclosed. F o r additional copies, bankers and others are encouraged to use one of the following toll-free num bers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333 -4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; H ouston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San A ntonio Branch Intrastate (800) 292-5810. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) - 2- MORE INFORMATION For more information or additional copies of the booklet, please contact John Phillips, Finlay Higgins, or other Discount Window personnel at (214) 922-5333 or (800) 333-4460. For additional copies of this Bank’s notice, please contact the Public Affairs Department at (214) 922-5254. Sincerely yours, Reserve OUNT OW V Reserve OUNT A Publication of the Federal Reserve System 1994 Table o f C o n ten ts Preface..................................................................................................................4 I. O verview .......................................................................................................... 5 Types of C red it............................................................................................ 5 Adjustment Credit................................................................................. 5 Seasonal C redit..................................................................................... 5 Extended Credit.................................................................................... 5 Emergency C redit.................................................................................6 Discount R ates.............................................................................................6 Eligibility to B orrow ...................................................................................7 Provisions of the Federal Deposit Insurance Corporation Improvement Act of 1991........................................... 7 Arrangements for B orrow ing....................................................................7 Pledging of Collateral.................................................................................8 Posting of Discount Window Credits and D ebits................................ 9 Requirements for R eporting......................................................................9 II. Adjustment C re d it...................................................................................... 10 Basic Principles..........................................................................................10 Appropriateness of B orrow ing.............................................................. 10 Other Reasonably Available Sources of F u n d s ........................... 10 Net Sales of Federal F u n d s.............................................................. 11 Affiliates of Bank Holding Com panies................................................. 11 Branches and Agencies of Foreign B an k s...........................................11 Administration of B orrow ings............................................................... 12 III. Seasonal Credit...........................................................................................13 IV. Extended Credit..........................................................................................14 Appendix Regulation A, Extensions of Credit by Federal Reserve B a n k s .................................................................. i Relevant Provisions of the Federal Reserve A ct.................................iv Boundaries of Federal Reserve Districts and their Branch T erritories.......................................................... viii List of Federal Reserve Banks and B ranches....................................... x 3 Preface W hen the Federal Reserve System w as established in 1913, lending reserve funds through the discount w indow was intended as the principal instrument of central banking operations. Although the w indow was long ago superseded by open market operations as the most im portant tool of monetary policy, it still has a complementary role in the day-to-day implementation of policy. The discount w indow functions as a safety valve in relieving pressures in reserve markets; in circum stances w here extensions of credit can help relieve liquidity strains in the banking system, the w indow also helps to assure the basic stability of financial markets more generally. The Federal Reserve’s lending authority has been subject to statutory change from time to time. The most recent significant change occurred in 1991 with the passage of the FDIC Im provem ent Act (FDICIA). This revised edition of The Federal R eserve D iscou nt W indow provides information relating to the legislation and its effects on Federal Reserve policies governing extensions of credit to depository institutions that are in weak financial condition. The appendix to this booklet contains both the am ended statutory language in the Fed eral Reserve Act (Section 10B) and the Federal Reserve’s Regulation A, which has been recently revised to reflect the new statutory provisions. 4 I. OVERVIEW The purpose of this booklet is to help de pository institutions understand the general poli cies governing the use of Federal Reserve credit. It describes the programs under which Federal Reserve credit is m ade available and clarifies the purposes for which Federal Reserve credit is pro vided, the differences betw een such credit and credit supplied by market sources of funds or special industry lenders, and the requirement that depository institutions fully utilize reasonably available alternative sources of funds before turn ing to the discount window. Discount w indow policies have evolved over time in response to the changing needs of the econom y and financial system. Guidelines used by discount officers in implementing these policies are intentionally general, and they are administered with judgment and discretion so that the legitimate funding needs of individual insti tutions may be met. For institutions that do not meet minimum capital standards or that have re ceived a composite CAMEL rating of 5 (or its equivalent), however, there are limits on exten sions of Federal Reserve credit, as established in FDICIA, which may be exceeded only after con sultation with the Federal Reserve Board of Gov ernors. Types o f Credit A d ju stm e n t C redit Adjustment credit is available on a short-term basis to help eligible depository institutions to meet temporary require ments for funds or to cushion briefly more per sistent funds outflows while orderly balance sheet adjustments are being made. The Federal Re serve p ro v id e s cred it w h e n fu n d s are n o t reasonably available in the money markets or from usual sources, including special industry lenders. Seasonal Credit Seasonal credit is available to institutions that can dem onstrate a clear pat tern of recurring intra-yearly swings in funding needs. The Federal Reserve established the sea sonal program in the early 1970s because a lack of access to funds in national m oney markets appeared to be limiting some small banks’ abil ity to serve customers in their local communi ties. In the absence of funds from national markets, small institutions w ere tending to posi tion themselves to accommodate customer needs at times of peak seasonal dem ands by accumu lating oversized liquid asset positions during the rest of the year. Under the seasonal program, borrowers may obtain longer-term funds from the discount w indow during periods of seasonal need so they can carry fewer liquid assets dur ing the rest of the year and can make more funds available for local lending. E xtended Credit The Federal Reserve may provide longer-term funds to institutions experi encing special difficulties arising from exceptional circumstances or practices involving individual institutions or from liquidity strains affecting a broad range of depository institutions. Extended credit is provided only after all other sources of funds, including special industry lenders, have been exhausted and other responsible supervi sory agencies have been consulted. Also, the Federal Reserve must judge such lending to be in the public interest, and a plan for eliminating the liquidity problem of the borrowing institu tion must be in process. 5 Em ergency Credit In unusual and exigent circumstances, the Board of Governors may au thorize a Reserve Bank to provide emergency credit to individuals, partnerships, and corpora tions that are not depository institutions. Such lending may occur only w hen, in the judgment of the Reserve Bank, credit is not available from other sources and failure to provide credit w ould adversely affect the economy. When not secured by U. S. governm ent or agency securities, loans of this type require the affirmative vote of at least five members of the Board of Governors of the Federal Reserve System. No emergency credit loans have been made since the mid-1950s. D iscou n t Rates By statutory requirement, each Federal Re serve Bank must establish its discount rates at least every fourteen days, subject to review and determination by the Board of Governors of the Federal Reserve System. As described below, the applicable discount rate varies with the type of credit obtained and the circumstances sur rounding the need for credit. • A d ju stm en t credit - The basic discount rate generally is charged on adjustment credit, athough the Federal Reserve retains the op tion to impose a surcharge above that rate w hen conditions warrant. However, on ad justment credit loans of unusually large size that result from a major operating problem at the borrow er’s facility, the highest rate cur rently established for loans to depository in stitutions may be charged. • Seasonal credit - The rate applied to sea sonal credit is based on market interest rates and is never less than the discount rate ap plicable to adjustment credit. The seasonal 6 rate is reset on the first business day of each tw o-w eek reserve maintenance period to re flect movements in market interest rates over the previous maintenance period. • E xtended credit - The basic discount rate may be charged on extended credit for the first 30 days it is outstanding, although Re serve Banks may shorten this time period at their discretion. A flexible rate linked to market interest rates and at least 50 basis points above the basic discount rate may be charged on extended credit outstanding more than 30 days. The flexible rate is adjusted on the first business day of each two-week reserve maintenance period to reflect move ments in market interest rates over the previ ous maintenance period. • Em ergency credit - the Federal Reserve does not currently establish a discount rate applicable to emergency credit, but Regula tion A indicates that such a rate w ould be above the highest rate in effect for advances to depository institutions. Changes in the basic discount rate are made infrequently and on a judgmental basis. In re cent years, discount-rate adjustments typically have com plem ented open m arket operations designed to achieve broad policy goals, and in such cases they have tended to result in roughly similar changes in short-term market interest rates. Increases in the discount rate generally have re flected the Federal Reserve’s concern over infla tionary pressures, w hereas decreases typically have reflected a concern over current or incipi ent w eakness in economic activity. On occa sion, however, the discount rate has been adjusted to align it more closely with short-term market rates and to discourage excessive borrowing by depository institutions at the discount window. Over the years, the discount rate generally has been lower than market interest rates such as the federal funds rate, but the gap has varied across a relatively wide range depending on the stance of monetary policy. W hen implementing a policy of monetary restraint, the Federal Re serve increases the pressure on the reserve posi tions of depository institutions by meeting less of their reserve needs through open market op erations. To obtain the needed reserves, institu tio n s r e s p o n d in itia lly b y b id d in g m o re aggressively for funds in the m arketplace-thereby driving up interest rates and widening the spread of the funds rate over the discount ra te -b u t ulti mately by turning to the discount window. In this way, the discount w indow serves as a needed safety valve for the banking system as well as for individual institutions in times of monetary re straint. An easing of m onetary policy is associ ated with reductions in the pressure on reserve positions, declines in market interest rates, and less borrowing. E ligibility to B orrow Under the provisions of the Monetary Con trol Act (MCA) of 1980, all depository institutions that maintain reservable transaction accounts or nonpersonal time deposits (as defined in Regu lation D) are entitled to the same borrowing privi leges at the discount w indow as banks that are members of the Federal Reserve System. Eligi bility to b o rro w is not d e p e n d e n t u p o n or related to the use of Federal Reserve priced services. Under the terms of the MCA, bankers’ banks, ow ned by the financial institutions with which they do business and not engaged in business with the public, are not required to maintain re serves under Regulation D and do not have ac cess to the discount window. However, the Board of Governors has determined that a bankers’ bank may obtain access to the discount w indow if it voluntarily undertakes to maintain reserves. P rovision s o f th e Federal D ep osit Insurance C orporation Im provem en t Act o f 1991 The lending provisions in FDICIA set limits on extensions of Federal Reserve credit to an FDIC insured depository institution that has fallen below minimum capital standards or has received a composite CAMEL rating of 5 (or its equivalent under a com parable rating system) from its fed eral banking regulator. Federal Reserve lending to a depository institution that is undercapital ized, significantly undercapitalized, or rated a composite CAMEL 5 (or its equivalent) is limited to 60 days in any 120-day period. An institution that is critically undercapitalized may receive dis count w indow credit only during the five-day period that begins on the day it becom es criti cally undercapitalized. FDICIA provides that lending beyond these limits may result in Federal Reserve liability to the FDIC. Accordingly, any depository institu tion subject to one of these limits is strongly en couraged to maintain liquidity sufficient to keep its needs for discount w indow credit within ap propriate bounds. W here it appears that liquid ity may prove inadequate, the institution should consult with its Federal Reserve Bank as far in advance as possible. Such consultations may also include discussions of collateral arrangements n eeded to ensure the orderly continuation of Federal Reserve paym ent services. A rrangem ents fo r B orrow ing Any depository institution that expects to use the discount w indow should file the neces sary corporate resolutions and lending agree ments with its Reserve Bank. Also, depository institutions that do not envision turning to the w indow in the ordinary course of events are encouraged to execute the necessary docum ents because a need for discount w indow credit may arise suddenly and unexpectedly. Pledging o f Collateral All extensions of credit must be secured to the satisfaction of the Reserve Bank by collateral that is acceptable for that purpose. Assignments of collateral are made by the borrow er under the terms and conditions of the Federal Reserve Bank’s lending agreement. The Reserve Bank may require a perfected security interest on col lateral pledged and in certain situations may re quire a public filing. The following forms of collateral are most commonly used to secure discount w indow ad vances: • Obligations of the United States Government • Obligations of U.S. Government Agencies which have the full faith and credit of the U.S. Government • Obligations of U.S. Government sponsored agencies • Certain collateralized mortgage obligations • Obligations of states or political subdivisions of the United States • Corporate Bonds and money market instruments • One-to-four family residential mortgage notes • Commercial, industrial or agricultural notes Reserve Bank staff can offer guidance on the process for pledging the collateral listed above as well as discuss other types of collateral that may be acceptable. Assets that have been ac cepted as collateral are assigned a value deem ed appropriate by the Reserve Bank. The financial condition of an institution may be considered w hen assigning values. Arrangements for pledging the collateral should be reviewed with the Reserve Bank. Se curities issued by the U.S. Government and most securities issued by U.S. Government agencies are held in a com puterized book-entry records system at the Federal Reserve. Physical securi ties or loans (custom er notes) pledged as collat eral generally must be held on the Reserve Bank’s premises. Under certain conditions, securities offered as collateral may also be held by a custo dian or depository through a third-party custody arrangement or by the borrow er under a bor rower-in-custody arrangement (used primarily for residential mortgages notes). Institutions that have relationships with spe cial industry lenders should be aware that collat eral in which the special industry lender retains a superior legal interest is not eligible to secure discount w indow loans. P o stin g o f D isco u n t W in d ow C redits and Debits Discount w indow loan credits and loan re payment debits are normally posted after the close of Fedwire; however, in the occasional circum stance w here a depository institution does not have ready access to money markets and must make unanticipated payments earlier during the business day, the Reserve Bank may post the loan during the business day and post the repay ment at the same time of day on the date it is repaid. Further, on an exception basis at the Re serv e B a n k ’s in itiativ e or at a d e p o s ito ry institution’s request, a loan may be repaid b e fore twenty-four hours, or a multiple thereof, has expired. For example, the need for early repay ment might be associated with a borrow er’s need to obtain release of securities pledged as dis count w indow collateral in time to permit sameday transfer. Discount w indow loans and repaym ents posted intraday are subject to the review and approval of the Reserve Bank discount officer. R equirem ents for R eporting Certain information flows and administra tive contacts by discount officers or their staff are necessary to remain informed about liquidity conditions and to ensure the appropriateness o f borro w in g s and the co n tin u in g security interest in collateral pledged to secure loans. These are related only to the lending activity and do not reflect any supervisory authority or responsibility. 9 II. ADJUSTMENT CREDIT The Federal Reserve provides adjustment credit only w hen other sources of funds are not reasonably available and w hen the need for credit is appropriate. Guidelines for administering ad justment credit are fairly general, in recognition of the wide range of circumstances that may give rise to borrowings by institutions that differ in size, in the nature of their businesses, and in the econom ic environments in which they operate. Discount officers exercise judgment and discre tion in the administration of borrowings and re spond flexibly to the particular needs of individual institutions. Basic P rinciples The basic principles governing the provi sion of adjustment credit include the following: • Such credit will be granted at the discre tion of the Reserve Bank. • The borrow er should have an appropriate reason for using the discount window. • The borrow er should fully utilize other reasonably available sources of funds b e fore turning to the w indow for assistance. A pp rop riaten ess o f B orrow ing The appropriateness of adjustment credit re lates generally to the circumstances confronting the borrowing institution. Appropriate reasons for seeking temporary Federal Reserve credit may include the following: • To m eet liquidity needs arising from an unexpected loss of deposits or nondeposit funds; • To assist temporarily in meeting an unex p e c te d su rg e of c re d it d e m a n d s in an institution’s normal servicing area; 10 • To avoid o v e rn ig h t o v erd rafts in an institution’s reserve account caused by un expected financial flows; • To m eet liquidity needs due to forces b e yond the immediate control of an institution, such as an internal operating problem or an external developm ent like a natural disaster. Adjustment credit can accommodate a broad range of funding needs; however, there are vari ous situations in which borrowing is not appro priate. These include: • To take advantage of a differential b e tw een the discount rate and the rate of alter native sources of funds; • To substitute Federal Reserve credit for short-term interest-sensitive funds normally acquired as a part of the institution’s liability structure; • To substitute Federal Reserve credit for capital; • To support a planned increase in or continued holdings of investments or loans. Other Reasonably Available Sources o f Funds Adjustment credit normally is provided only af ter other reasonably available sources of funds, including credit from correspondents, market sources, and special industry lenders, have been fully used. As part of appropriate planning for contingencies, all institutions are encouraged to establish credit lines to which they can gain ac cess on a timely basis. Depository institutions that have access to liquidity advances from insti tutional lenders (such as the Federal Home Loan Bank System, credit union centrals, or the Cen tral Liquidity Facility of the National Credit Union Administration) must seek assistance from these sources before approaching the discount w in dow. However, w hen an institution requires funds on short notice and is unable to gain timely access to its special industry lender, discount w indow credit may be provided. Such advances are made with the expectation that the borrower will repay w hen access to usual sources of funds is restored, usually the next business day. Institutions that are liability m anaged and thus regularly rely on discretionary sources of funds (such as federal funds, repurchase agree ments, Eurodollar borrowings and large nego tiable CDs) may use the discount w indow only w hen these other funding sources are not rea sonably available. Because liability m anaged institutions have ready access to the national money markets, they seldom need to borrow for more than occasional overnight needs. W hen market sources of funds cannot be used effectively—perhaps because of internal operating problems (com puter failure, miscalculation of reserve position, and so forth), an abnormally large need for purchased funds, or market indications of an overall shortage of funds—borrowings from the Federal Reserve are appropriate. on w hich it borrows, or the institution could ex perience a significant reversal in funds flows within the reserve period in which the borrow ing occurred. Net Sales o f Federal Funds As a general rule, it is inappropriate for a depository institution to have net sales of federal funds while borrowing. The purpose of this restriction is to discourage the use of adjustment credit for purposes of rate arbitrage. A depository institution dem onstrating a pattern of net sales of federal funds while bor rowing will be contacted by its discount officer. However, discount officers recognize that, on oc casion, a depository institution may be unable to avoid being a net seller of federal funds while borrowing. For example, an institution’s fund ing needs could change radically during the day B ranches and A gencies o f Foreign Banks A ffiliates o f Bank H olding C om panies Federal Reserve credit is made available to depository institutions that are affiliated with hold ing com panies on much the same basis as for independent institutions. However, such credit is not available for funding the operations of the parent holding com pany or other affiliates with out the prior permission of the Federal Reserve Bank. In determining the appropriateness of bor rowings by affiliated institutions, the Federal Re serve considers the availability of assistance from the holding com pany or from another affiliate, w hich may be an important funding resource not available to independent institutions. Affiliated institutions are m onitored to ensure the appro priateness not only of their individual borrow ings but also of the borrowings of their holding com pany system as a whole. To this end, lend ing to all such institutions is coordinated and m onitored on a nationwide basis. Under the International Banking Act of 1978, U.S. branches of foreign banks and agencies of foreign banks that hold reserves are eligible to borrow at the discount w indow under the same general terms and conditions that apply to do mestic depository institutions. The guidelines governing the access of branches and agencies to the discount w indow are generally the same as those that apply to domestic money center banks-w hich, in most cases, are their principal competitors and are functionally similar in their corporate and international lending activities and their ready ability to meet funding requirements 11 in national and international m oney markets. In so m e in sta n c e s, h o w ev er, in d iv id u a l U.S. branches and agencies may not operate in the same m anner as major domestic banks and may have more limited sources of funds available. These situations will be dealt with flexibly by discount officers on a case-by-case basis. As with depository institutions, U.S. branches and agencies of foreign banks normally are ex pected to draw on other reasonably available sources of funds before turning to the discount window. To the extent possible, such sources should include, besides additional U.S. sources, funds from foreign bank parents and foreign af filiates. In this regard, a U.S. branch or agency should not use funds borrow ed at the discount w indow to fund the needs of its parent or its affiliates or to reduce its reliance on those of fices in meeting its regular needs. The International Banking Act provides that in making Federal Reserve credit available to U.S. branches and agencies, the Reserve Banks should give due regard to the reserve balances being maintained and their level relative to total assets. The discount w indow is administered in a flex ible manner designed to meet the legitimate shortterm fu n d in g n e e d s o f U.S. b ra n c h e s an d agencies, but their overall needs for Federal Re serve credit, measured in frequency and amount, generally should be consistent with the overall borrow ing n eeds of dom estic m oney center banks; how ever, th e funding n eed s o f U.S. branches and agencies occasionally may be large relative to their U.S. deposits, and these will be handled flexibly. In instances w here foreign banks with more than one branch or agency operating in the United States have access to the discount w in 12 dow in more than one Reserve District, lending to all such offices is coordinated and monitored on a nationwide basis to ensure overall compli ance with discount w indow policies. A dm inistration o f B orrow ings To ensure that Federal Reserve credit is ex tended for appropriate purposes, discount offic ers review pertinent information relating to the borrow er’s liquidity needs and its reasons for use of the window. Data on selected assets and li abilities, including federal funds purchased and sold, are used in conjunction with other avail able data to monitor overall use of the window. Frequency and duration of borrowings are moni tored and review ed with the borrow er w hen necessary to ensure that appropriate measures are being taken to reduce reliance on the win dow and to confirm that a more serious liquidity problem does not exist. As part of their review of the borrowing records of individual institutions, discount offic ers rely in part on historical experience with com mon borrowing patterns in similar circumstances; however, the test of appropriateness of borrow ing remains the primary criterion for credit at all times. As a general rule, smaller institutions are granted greater access to adjustment credit than are larger ones. This policy has been adopted in recognition of the few er funding alternatives normally available to small institutions in adjust ing their assets and liabilities. To ensure compliance with the provisions of FDICIA, Reserve Banks routinely monitor the capital condition and other supervisory informa tion, including CAMEL ratings, for borrow ing institutions. III. SEASONAL CREDIT The Federal Reserve’s seasonal borrowing privilege is designed to assist small and medium sized institutions meet significant seasonal swings in their loans and deposits during the year. Eli gible institutions are usually located in agricul tural or tourist areas. Seasonal advances are available for periods of up to nine months, typically maturing and renew able on a periodic basis, and generally are restricted to institutions that can show a clear historical pattern of recurring intra-yearly need. To becom e eligible for such credit, an insti tution must establish a seasonal qualification with its Reserve Bank. In calculating this qualifi cation, the institution’s monthly net fund avail ability (deposits minus loans) is first projected for the next 12 months on the basis of actual experience over the previous several years. Its seasonal need is then com puted for each month by subtracting the projected net fund avail ability for that month from the peak projected net fund availability within the year. The institution is expected to cover a part of its seasonal need from its ow n liquidity re serves. As a result, an am ount based on the institution’s deposits is deducted from the esti m ated seasonal need before the seasonal qualifi cation is established. Net sales of Federal funds or purchases of liquid assets by an institution while using the seasonal credit may be perm is sible to a limited extent. Institutions anticipating a possible need for seasonal credit are encouraged to make neces sary arrangements with the Reserve Bank in ad vance. Prearrangement does not obligate the institution to borrow. Institutions occasionally may experience un usual seasonal requirements for credit during p e riods of general liquidity strain, w hich are not identified adequately by the normal calculations. Discount officers have discretionary authority to accommodate such unusual needs. 13 IV EXTENDED CREDIT Discount officers exercise considerable dis cretion in establishing seasonal qualifications and extending seasonal credit w hen a borrow er is in less than satisfactory financial condition. In par ticular, a critically undercapitalized institution is not eligible for seasonal credit and an undercapi talized or significantly undercapitalized institu tion will be eligible only after careful review of the institution’s condition and prospects. Extended credit may be provided w hen ex ceptional circumstances or practices are adversely affecting an individual institution. The condi tions governing access to extended credit are as follows: 1. An applicant must make full use of other reasonably available sources of funds, in cluding its access to special industry lend ers, before turning to the Federal Reserve for assistance. 2. To ensure effective coordination of re quests for special assistance, all such re quests will be review ed by the Federal Reserve after communication with other re sponsible supervisory agencies. 3. The conditions governing extended credit are generally concerned with an institution’s ability to restore liquidity and remain viable. 14 4. In determining w hether to extend credit to any institution, appropriate weight will be given to the financial condition of the institution. If the institution is undercapi talized or critically undercapitalized, as de fined in Section 142 of FDICIA, the duration of extended credit loans is monitored to en sure compliance with the FDICIA lending limits. W hen conditions warrant, extended credit also may be provided to accommodate the needs of institutions, including those with longer-term asset portfolios, that may be experiencing diffi culties adjusting to changing money market con ditions. In cases of serious liquidity strains affecting a broad range of depository institutions, Federal Reserve credit will be available to ad dress the associated problems of individual insti tu tio ns. B efore ex ten d in g credit, how ever, Reserve Banks will consult with other official agencies responsible for supervising the affected institution to determine, among other things, why funds are not available from other sources. Loan agreements may be drawn to establish the con ditions under which credit will be provided and to ensure that the borrower adopts an appropri ate plan to restore adequate liquidity and to re pay the loan, within a reasonable period of time. Regulation A 12 CFR 201 as am ended effective Ju n e 2, 1994 Extensions of Credit by Federal Reserve Banks SECTION 201 .2 Definitions S ectio n 201.1 Authority, scope, and p urpose 201.2 Definitions 201.3 Availability an d term s 201.4 Limitations on availability and assessm ents 201.5 Advances and discounts 201.6 G eneral requirem ents 201.7 Branches and agencies 201.8 Federal Interm ediate Credit Banks 201.9 No obligation to m ake a d vances or discounts 201.51 Adjustm ent credit for deposi tory institutions 201.52 Extended credit for depository institutions SECTION 201.1 Authority, Scope and Purpose (a) A u th ority a n d sc o p e . This part* is is sued under the authority of sections 10A, 10B, 13, 13A, and 19 o f the FRA (12 USC 347a, 347b, 343 et seq., 347c, 348 et seq., 374, 374a, a nd 461), other provisions of the FRA, and section 7(b) o f the International Banking Act of 1978 (12 USC 347d) and relates to exten sions o f credit by Federal Reserve Banks to depository institutions and others. (b) P u rp o se. This part establishes rules u nder w hich Federal Reserve Banks m ay ex ten d credit to depository institutions and oth ers. Extending credit to depository institutions to accom m odate comm erce, industry, and ag riculture is a principal function o f Federal Reserve Banks. While o pen market operations are the prim ary m eans of affecting the over all supply of reserves, the lending function o f the Federal Reserve Banks is an effective m ethod o f supplying reserves to m eet the particular credit need s of individual deposi tory institutions. T he lending functions of the Federal Reserve System are conducted with due regard to the basic objectives o f m on etary policy and the m aintenance of a sound and orderly financial system. * The words “thispart, ” as used herein, mean Regu lation A (Code o f Federal Regulations, title 12, chap ter II, p art 201). For pu rpo ses of this part, the follow ing defi nitions shall apply: (a) A p p rop riate fed eral b a n k in g a g en cy has th e sam e m eaning as in section 3 o f the FDI Act (12 USC 1813(q)). (b) Critically un dercapitalized in su red d e p o sito r y in stitu tio n m eans any insured d e pository institution as defined in section 3 of th e FDI Act (12 USC 1 813(c)(2)) th at is deem ed to be critically undercapitalized un d e r se c tio n 38 o f th e FDI Act (12 USC 1831o(b)(l)(E)) and the im plem enting regu lations. (c) (1) D e p o sito r y in stitu tio n m eans an in stitution that m aintains reservable trans actio n a c c o u n ts o r n o n p e rs o n a l tim e deposits and is— (i) an insured ban k as defined in sec tion 3 of the FDI Act (12 USC 1813(h)) or a bank w hich is eligible to m ake application to becom e an insured bank un d e r section 5 of such act (12 USC 1815); (ii) a m utual savings bank as defined in section 3 of the FDI Act (12 USC 1813(f)) or a bank w hich is eligible to m ake application to becom e an in sured bank u n der section 5 of such act (12 USC 1815); (iii) a savings bank as defined in sec tion 3 of the FDI Act (12 USC 1813(g)) or a bank w hich is eligible to m ake application to becom e an insured bank u nd er section 5 of such act (12 USC 1815); (iv) an insured credit union as defined in section 101 of the Federal Credit Union Act (12 USC 1752(7)) or a credit union w hich is eligible to m ake appli cation to becom e an insured credit union pursuant to section 201 o f such Act (12 USC 1781); (v) a m em ber as defined in section 2 of the Federal H om e Loan Bank Act (12 USC 1422(4)); or (vi) a savings association as defined in section 3 of the FDI Act (12 USC 1813(b)) w hich is a n insured deposi i tory institution as defined in section 3 o f the act (12 USC 1813(c)(2)) or is eligible to apply to becom e an insured depository institution u nd er section 5 o f the act (12 USC 1815(a)). (2) T he term d e p o s ito r y in stitu tio n does not include a financial institution that is not required to m aintain reserves u n der Regulation D (12 CFR 204) because it is organized solely to d o business with other financial institutions, is o w ned pri marily by the financial institutions with w hich it does business, and does not do business with the general public. (d) L iquidation lo ss m eans the loss that any deposit insurance fund in the FDIC w ould have incurred if the FDIC h ad liquidated the institution— (1) in the case o f an undercapitalized in sured depository institution, as o f the end o f th e later of— (i) 60 days— (A) in any 120-day period; (B) during w hich the institution was an undercapitalized insured de pository institution; and (C) during w hich advances or dis counts w ere outstanding to the de p o s ito r y i n s titu tio n fro m a n y Federal Reserve Bank; or (ii) the 60-calendar-day period follow ing the receipt by a Federal Reserve Bank of a written certification from the chairm an o f the Board of G overnors or the head o f the appropriate federal banking agency that the institution is viable. (2) in the case of a critically undercapi talized insured depository institution, as of the end o f the 5-day period beginning on the date the institution becam e a criti cally undercapitalized insured depository institution. (e) In crea sed lo ss m eans the am ount of loss to any deposit insurance fund in the FDIC that exceeds the liquidation loss d u e to— (1) an advance u nd er section 10B(l)(a) of the FRA that is outstanding to an un dercapitalized or critically undercapitalized insured depository institution w ithout pay m ent having been dem anded as of the end o f the p eriod s specified in paragrap hs (d)(1) a n d (2) o f this section; or (2) an advance u n der section 10B(l)(a) of the Federal Reserve Act that is m ade after the e n d of such periods. ( 0 E x cess lo s s m eans the lesser o f the in creased loss or that portion o f the increased loss equal to the lesser of— (1) the loss the Board of G overnors or any Federal Reserve Bank w ould have in curred o n the am ount by w hich advances u n d e r s e c tio n 1 0 B ( l) (a ) e x c e e d th e am ount of advances outstanding at the end o f the p eriods specified in paragraphs (d)(1) and (2) o f this section if those in creased advances h ad b e en unsecured; or (2) the interest received on the am ount by w h ic h the a d v an ces u n d e r section 10B(l)(a) exceed the am ount of advances outstanding, if any, at the e n d of the peri ods specified in paragraphs (d)(1) and (2) o f this section. (g) T ransaction a ccou n t and n o n p e rso n a l tim e d e p o sit have the m eanings specified in Regulation D (12 CFR 204). (h) U n d erca p italized in su re d d e p o sito r y in stitu tio n m eans any insured depository institution as defined in section 3 of the FDI Act (12 USC 1813(c)(2)) that— (1) is n o t a critically undercapitalized in sured depository institution; and (2) (i) is d eem ed to b e undercapitalized u nd er section 38 of the FDI Act (12 USC 1831o(b)(l)(C )) a n d the imple m enting regulations; or (ii) has received from its appropriate federal banking agency a com posite CAMEL rating of 5 u n d e r the Uniform Financial Institutions Rating System (or an equivalent rating by its appropriate federal banking agency u n d e r a com parable rating system) as of the m ost recent exam ination o f such institution. (i) V iable, w ith respect to a depository insti tution, m eans that the Board of G overnors or the appropriate federal banking agency has determ ined, giving due regard to the eco nom ic conditions and circum stances in the m arket in w hich the institution operates, that the institution is not critically undercapital ized, is n o t e x p ected to beco m e critically undercapitalized, and is no t expected to be placed in conservatorship or receivership. Al though there are a num ber of criteria that may be used to determ ine viability, the Board o f G overnors believes that ordinarily an u n dercapitalized insured depository institution is viable if the appropriate federal banking agency has accepted a capital restoration plan for the depository institution u n der 12 USC 1831o(e)(2) a n d the depository institution is com plying w ith that plan. SECTION 201.3 Availability and Terms (a) A d justm ent cred it. Federal Reserve Banks extend adjustm ent credit o n a short term basis to depository institutions to assist in m eeting tem porary requirem ents for funds or to cushion m ore persistent shortfalls of funds pen ding an orderly adjustm ent o f a borrow ing institution’s assets and liabilities. Such credit generally is available only for appropriate purpo ses and after reasonable alternative sources of funds have b e en fully used, including credit from special industry lenders such as Federal Hom e Loan Banks, the National Credit Union Adm inistration’s Central Liquidity Facility, and corporate cen tral credit unions. Adjustm ent credit is usu ally granted at the basic discount rate, but under certain circum stances a special rate or rates above the basic discount rate m ay be applied. (b) Sea so n a l cred it. Federal Reserve Banks extend seasonal credit for periods longer than those perm itted und er adjustm ent credit to assist sm aller depository institutions in m eet ing regular needs for funds arising from ex pected patterns of m ovem ent in their deposits and loans. A special rate or rates at or above the basic discount rate m ay be applied to seasonal credit. ers. Such credit may b e provided w here there are exceptional circum stances o r practices affecting a particular depository institution including sustained deposit drains, im paired access to m oney m arket funds, or sudd en deterioration in loan-repaym ent performance. Extended credit m ay also be provided to ac com m odate the needs of depository institu tions, including those with longer-term asset portfolios, that m ay b e experiencing difficul ties adjusting to changing m oney m arket con ditions over a longer period, particularly at times of deposit disinterm ediation. A special rate o r rates above the basic discount rate m ay be applied to extend ed credit. (d) E m erg en cy cred it fo r oth ers. In u n usual and exigent circum stances, a Federal Reserve Bank may, after consultation with the Board of Governors, advance credit to indi viduals, partnerships, and corporations that are not depository institutions if, in the judg m ent o f the Federal Reserve Bank, credit is no t available from oth er sources and failure to obtain such credit w ould adversely affect the econom y. T he rate applicable to such credit will be above the highest rate in effect for advances to depository institutions. W here the collateral used to secure such credit con sists o f assets other than obligations of, or fully guaranteed as to principal and interest by, the United States or an agency thereof, an affirmative vote o f five o r m ore m em bers o f the Board of G overnors is required before credit m ay b e extended. SECTION 2 0 1 .4 Limitations o n Availability and Assessm ents (1) Seasonal credit is only available if— (i) the depository institution’s seasonal n eed s exceed a threshold that the in stitution is expected to m eet from other sources o f liquidity (this threshold is calculated as certain percentages, es tablished by the Board o f Governors, of the institution’s average total d ep os its in the preceding calendar year); (ii) th e Federal Reserve Bank is satis fied th at th e institution’s qualifying n e e d for funds is seasonal a n d will persist for at least four w eeks; and (iii) similar assistance is not available from special industry lenders. (2) The Board m ay establish special terms for seasonal credit w h en depository insti tutions are experiencing unusual seasonal dem ands for credit in a period of liquid ity strain. (c) E xten d ed credit. Federal Reserve Banks extend credit to depository institutions u n der extended credit arrangem ents w here simi lar assistance is not reasonably available from other sources, including special industry lend ii (a) A d vances to o r d isc o u n ts fo r u n d er c a p ita liz e d in su r e d d e p o s ito r y in s titu tio n s. A Federal Reserve Bank m ay m ake or have outstanding advances to o r discounts for a depository institution that it know s to be an undercapitalized insured depository in stitution, only— (1) if, in any 120-day period, advances or discounts from any Federal Reserve Bank to that depository institution are not out standing for m ore than 60 days during w hich the institution is an undercapital ized insured depository institution; or (2) during the 60 calendar days after the receipt of a written certification from the chairm an o f the Board o f G overnors or the h ead o f the appropriate federal b a n k ing agency that the borrow ing depository institution is viable; or (3) after consultation w ith the Board of G overnors.1 1 In unusual circumstances, when prior consulta tion with the Board is not possible, a Federal Re serve Bank should consult with the Board as soon as possible after extending credit that requires con sultation under this paragraph. (b) A dvances to o r d isc o u n ts fo r critically u n d erca p ita lized in su re d d e p o sito r y in stitu tio n s. A Federal Reserve Bank may m ake or have outstanding advances to or dis co u n ts for a d ep o sito ry institution th at it know s to be a critically undercapitalized in sured depository institution only— (1) during the 5-day period beginning o n the date the institution becam e a criti cally undercapitalized insured depository institution; or (2) after consultation w ith the Board of G overnors.2 United States governm ent and federal-agency securities, and, if of acceptable quality, m ort gage notes covering one-to-four family resi dences, state an d local governm ent securities, and business, consum er, and other custom er notes. (c) If a Federal Reserve Bank concludes that a depository institution will b e better accom m odated by the discount of p a p er than by an advance, it m ay discount any p ap er endorsed by the depository institution that m eets the requirem ents specified in the FRA. SECTION 201.6 G eneral Requirem ents SECTION 201 .8 Federal Interm ediate Credit Banks (a) A Federal Reserve Bank m ay discount for any Federal Interm ediate Credit Bank ag ricultural p a p er or notes payable to an d bear in g th e e n d o r s e m e n t o f th e F e d e r a l Interm ediate Credit Bank that cover loans or advances m ade under subsections (a) and (b) of section 2.3 o f the Farm Credit Act of 1971 (12 USC 2074) and that are secured by pap er elig ible fo r d isc o u n t by F ederal Reserve Banks. Any p ap er so discounted shall have a period rem aining to maturity at the tim e of discount o f not m ore than nine months. 2 Seefootnote 1 in section 201.4(a)(3). (c) A sse ssm e n ts. The Board of G overnors will assess the Federal Reserve Banks for any am ount that it pays to the FDIC due to any excess loss. Each Federal Reserve Bank shall be assessed that portion o f th e am ount that the Board o f G overnors pays to the FDIC that is attributable to an extension of credit by that Federal Reserve Bank, u p to 1 percent of its capital as reported at the beginning o f the calendar year in w h ich the assessm ent is m ade. The Board o f G overnors will assess all o f the Federal Reserve Banks for the rem ain der of the am ount it pays to the FDIC in the ratio that the capital of each Federal Reserve Bank bears to the total capital o f all Federal Reserve Banks at the beginning o f the calen dar year in w hich the assessm ent is m ade, provided, how ever, that if any assessm ent exceeds 50 percent of the total capital and surplus o f all Federal Reserve Banks, w hether to distribute the excess over such 50 percent shall be m ade at the discretion o f the Board of Governors. (d) In fo rm a tio n . Before extending credit a Federal Reserve Bank should ascertain if an institution is an undercapitalized insured d e pository institution or a critically undercapi talized insured depository institution. SECTION 201.5 A dvances and Discounts (a) Federal Reserve Banks m ay lend to d e pository institutions either through advances secured by acceptable collateral or through the discount of certain types of paper. Credit ex tended by the Federal Reserve Banks gen erally takes the form o f an advance. (b) Federal Reserve Banks m ay m ake ad vances to any depository institution if secured to the satisfaction o f the Federal Reserve Bank. S atisfactory co lla te ral g e n e ra lly in clu d e s (a) C redit fo r cap ita l p u rp o ses. Federal Reserve credit is not a substitute for capital. (b) C o m p lia n ce w ith la w a n d regu lation. All credit extended u nder this part shall com ply with applicable requirem ents of law and o f this part. Each Federal Reserve Bank— (1) shall k eep itself inform ed of the gen eral character and am ount of the loans and investm ents of depository institutions w ith a view to ascertaining w hether u n du e use is being m ade of depository-institution credit for the speculative carrying o f or trading in securities, real estate, or com m odities, or for any o th er p urp ose in c o n siste n t w ith th e m a in te n a n c e o f soun d credit conditions; and SECTION 201 .9 No Obligation to Make Advances or Discounts (a) A Federal Reserve Bank shall have no obligation to m ake, increase, renew , or ex ten d any advance or discount to any deposi tory institution. SECTION 201.51 Adjustm ent Credit for D epository Institutions The rates for adjustm ent credit provided to depository institutions under section 201.3(a) o f Regulation A m ay b e provided by your local Federal Reserve Bank. (2) shall consider such information in de term ining w hether to extend credit. (c) In form a tio n . A Federal Reserve Bank shall require any inform ation it believes ap propriate or desirable to ensure that pap er tend ered as collateral for advances or for dis count is acceptable and that the credit pro vided is used in a m anner consistent with this part. (d) In d irect cred it fo r o th ers. No deposi tory institution shall act as the m edium or agent of another depository institution in re ceiving Federal Reserve credit except with the perm ission o f the Federal Reserve Bank ex tending credit. SECTION 201 .7 Branches and Agencies (a) Except as m ay b e otherw ise provided, this part shall be applicable to United States branches and agencies o f foreign banks sub ject to reserve requirem ents u nd er Regula tion D (12 CFR 204) in the sam e m anner and to the sam e extent as depository institutions. iii SECTION 20 1 .5 2 Extended Credit for D epository Institutions (a) S ea so n a l cred it. The rate for seasonal credit e x te n d e d to d ep o sito ry institutions u nd er section 201.3(b) is a flexible rate that takes into account rates on m arket sources of funds, but in no case will the rate charged be less than the rate for adjustm ent credit as set out in section 201.51. (b) E x ten d ed cred it. For extended credit to d e p o s ito ry in stitu tio n s u n d e r se c tio n 201.3(c), for credit outstanding for m ore than 30 days, a flexible rate will be charged that takes into account rates on m arket sources of funds, but in n o case will the rate charged be less than the rate for adjustm ent credit, as set out in section 201.51, plus one-half percent age point. At the discretion o f the Federal Reserve Bank, this time period m ay be short ened, and the rate m ay be the discount rate applicable to adjustm ent credit. Relevant Provisions from the Federal Reserve Act SECTION 10A E m erg en cy A dv ances to G roups o f M em ber Banks* SECTION I0B Advances to Individual M em ber Banks* 1. A u th o r ity o f R eserve B a n k s to M a k e A dvances U pon receiving the consent of not less than five m em bers o f the Board of G overnors of the Federal Reserve System, any Federal Re serve B ank m ay m ake advances, in such am ount as the board of directors of such Fed eral Reserve Bank m ay determ ine, to groups of five or m ore m em ber banks w ithin its dis trict, a majority o f them independently ow ned and controlled, u p o n their time or dem and promissory notes, provided the bank or banks w hich receive the proceeds o f such advances as herein provided have no adequate amounts o f eligible and acceptable assets available to enable such ban k or banks to obtain suffi cient credit accom m odations from the Fed eral Reserve B ank th rou gh rediscounts or advances other than as provided in section 10 (b). The liability o f the individual banks in each group m ust be limited to such pro por tion of the total am ount advanced to such group as the deposit liability of the respec tive banks bears to the aggregate deposit li ability of all banks in such group, but such advances m ay b e m ade to a lesser num ber of such m em ber banks if the aggregate am ount of their deposit liability constitutes at least 10 p er centum of the entire deposit liability of the m em ber banks w ithin such district. Such banks shall b e authorized to distribute the proceeds of such loans to such of their num b e r and in such am ount as they m ay agree u pon, b u t before so doing they shall require such recipient banks to deposit w ith a suit able trustee, representing the entire group, their individual notes m ade in favor o f the group protected by such collateral security as m ay b e agreed upon. Any Federal Reserve Bank m aking such advance shall charge in terest o r discount thereon at a rate not less than 1 p er centum above its discount rate in effect at the time of m aking such advance. No such note u pon w hich advances are m ade by a Federal Reserve Bank u n d e r this section shall be eligible u n d e r section 16 o f this Act as collateral security for Federal Reserve notes. (a) Any Federal Reserve Bank, under rules and regulations prescribed by the Board of Governors o f the Federal Reserve System, may m ake advances to any m em ber bank o n its time or dem and notes having maturities of not m ore than four m onths and w hich are secured to the satisfaction o f such Federal Reserve Bank. Notwithstanding the forego ing, any Federal Reserve Bank, u nd er rules a nd regulations prescribed by the Board of Governors of the Federal Reserve System, may m ake advances to any m em ber bank o n its time notes having such maturities as the Board m ay prescrib e a n d w hich are secu red by m ortgage loans covering a one-to-four fam ily residence. Such advances shall bear inter est at a rate equal to the low est discount rate in effect at such Federal Reserve Bank o n the date of such note. [12 use 347a. As added by act of Feb. 27, 1932 (47 Stat. 56).] Previously section 10(a), ibis section was redesignated by act o f Dec. 19, 1991 (105 Stat. 2279). * 2 . F o re ig n O b lig a tio n s a s S e c u r ity f o r A dvances No obligations of any foreign governm ent, individual, partnership, association, or cor poration organized u n d e r the laws thereof shall be eligible as collateral security for ad vances u nder this section. [12 USC 347a. As added by act of Feb. 27, 1932 (47 Stat. 56).] 3. A u th o rity o f M em ber B a n k s to O bligate Themselves M em ber b an ks are au th o rized to obligate them selves in accordance w ith the provisions o f this section. [12 USC 347a. As added by act of Feb. 27, 1932 (47 Stat. 56).] [12 USC 347b(a). As added by act of Feb. 27, 1932 (47 Stat. 56); and am ended by acts o f Feb. 3, 1933 (47 Stat. 794); March 9, 1933 (48 Stat. 7); Aug. 23, 1935 (49 Stat. 705); Oct. 18, 1974 (88 Stat. 1368); March 31, 1980 (94 Stat. 140); and Dec. 19, 1991 (105 Stat. 2279).] * Previously section 10(b), this section was redesignated by act o f Dec. 19, 1991 (105 Stat. 2279). Limitations o n Advances (b)(1) Except as provided in paragraph (2), n o advances to any undercapitalized de pository institution by any Federal Reserve Bank u nd er this section m ay be outstand ing for m ore than 60 days in any 120-day period. (2) (A) If— (i) the h ead o f the appropriate Federal banking agency certifies in advance in writing to the Federal Reserve Bank that any depository institution is viable; or (ii) the Board conducts an exam i nation o f any depository institution a n d the C hairm an o f the B oard certifies in writing to the Federal Reserve Bank that the institution is viable, the limitation contained in paragraph (1) shall not apply dur ing the 60-day period beginning on the date such certification is re ceived. (B) The 60-day period may be ex ten d ed for additional 60-day periods u p o n receipt by the Federal Reserve Bank of additional written certifications u n d e r subparagraph (A) with respect to each such additional period. (C) The authority o f the head o f any agency to issue a written certification of viability u n der this paragraph may no t be delegated to any other person. (D) Notwithstanding paragraph (1), an undercapitalized depository insti tution w hich does not have a certifi cate o f viability in effect u nder this p aragraph m ay have advances o u t iv standing for m ore than 60 days in any 120-day period if the Board elects to treat— (i) such institution as critically u n dercapitalized u nder paragraph (3); and (ii) any such advance as an advance described in subparagraph (A)(i) of paragraph (3). (3) (A) Notwithstanding any other provision o f this section, if— (i) in th e case o f any critically u n d e r c a p it a li z e d d e p o s i to r y institution— (I) any advance u n d e r this sec tion to such institution is out s t a n d in g w i t h o u t p a y m e n t having been dem anded as of the e n d of the 5-day period begin ning on the date the institution becom es a critically undercapi talized depository institution; or (II) any new advance is m ade to such institution u n d e r this section after the end o f such period; and (ii) after the end of that 5-day p e riod, any deposit insurance fund in the Federal D eposit Insurance Cor poration incurs a loss exceeding the loss that th e C orporation w ould have incurred if it had liquidated that institution as of the end of that period, the Board shall, subject to the limitations in subparagraph (B), b e liable to the Federal D eposit Insurance C orporation for the excess loss, w ithout regard to the term s o f the ad vance or any collateral pledged to secure the advance. (B) The liability of the Board u n der subparagraph (A) shall not exceed the lesser o f the following: (i) T he am o u n t o f th e loss the Board or any Federal Reserve Bank w ou ld have incurred o n the in creases in the am ount o f advances m ade after th e 5-day p erio d re ferred to in su b paragraph (A) if those increased advances had been unsecured. (ii) The interest received on the in creases in th e a m o u n t o f a d vances m ade after the 5-day period referred to in subparagraph (A). (C) The Board shall pay the Federal D e posit Insurance Corporation the am ount of any liability o f the Board u nder subparagraph (A). (D) The Board shall report to the Con gress o n any excess loss liability it incurs under subparagraph (A), as limited by subparagraph (B)(i), and the reasons there fore, not later than 6 months after incurring the liability. (4) A Federal Reserve Bank shall have no obligation to m ake, increase, renew , or ex ten d any advance or discount u n d e r this Act to any depository institution. (5) (A) The term “appropriate Federal b a n k ing a g en cy’ has the sam e m eaning as in sec tion 3 o f the Federal D eposit Insurance Act. (B) The term “critically undercapitalized' has the sam e m eaning as in section 38 of the Federal D eposit Insurance Act. (C) The term “depository institution" has the sam e m eaning as in section 3 o f the Federal D eposit Insurance Act. (D) The term “u n d erca p ita lized deposi tory in stitu tio n” m eans any depository in stitution w hich— (i) is undercapitalized, as defined in section 38 of the Federal D eposit In surance Act; or (ii) has a com posite CAMEL rating of 5 u nder the Uniform Financial Institu tions Rating System (or an equivalent rating by any such agency u n d e r a com parable rating system ) as of the m ost recent exam ination o f such insti tution. (E) A depository institution is “v ia b le if the Board or the appropriate Federal bank ing agency determ ines, giving d ue regard to the econom ic conditions and circum stances in the m arket in w hich the institu tion operates, that th e institution— SECTION 13 Pow ers o f Federal Reserve Banks 2. D iscount o f Comm ercial, A gricultural, a n d In d u stria l Paper U pon the indorsem ent of any o f its m em ber banks, w hich shall be deem ed a w aiver of dem and, notice and protest by such bank as to its o w n in d o rse m e n t exclu sively, any Federal Reserve Bank m ay discount notes, drafts, and bills of exchange arising out of actual com m ercial transactions; that is, notes, drafts, and bills of exchange issued or draw n for agricultural, industrial, or commercial pur poses, or the proceeds of w hich have been used, or are to be used, for such purposes, th e B o a rd o f G o v e rn o rs o f th e F e d e ra l Reserve System to have the right to deter mine or define the character of the p aper thus eligible for discount, within the m eaning of this Act. Nothing in this Act contained shall be construed to prohibit such notes, drafts, and bills o f exchange, secured by staple agri cultural products, or other goods, wares, or m erchandise from being eligible for such dis count, and the notes, drafts, and bills o f ex c h an g e o f factors issued as su ch m aking advances exclusively to producers of staple agricultural products in their raw state shall be eligible for such discount; but such defi nition shall not include notes, drafts, or bills covering m erely investm ents or issued or draw n for the p urp ose of carrying o r trading in stocks, bonds, or other investm ent securi ties, except b o nds and notes of the govern m ent o f th e United States. Notes, drafts, and bills adm itted to discount u nder the term s of this paragraph m ust have a maturity at the time of discount o f not m ore than 90 days, exclusive of grace. (ii) is not exp ected to becom e criti cally undercapitalized; and [12 USC 343. As am ended by act of Sept. 7, 1916 (39 Stat. 752), which completely revised this section; and by act of March 4, 1923 (42 Stat. 1478). As used in this paragraph the phrase “bonds and notes of Government of the United States” includes Treasury bills or certificates of indebtedness. (See act of June 17, 1929, amending section 5 o f Second Liberty Bond Act of Sept. 24, 1917). As to eligibility for discount under this paragraph of notes representing loans to finance building construction, see this act, section 24).] (iii) is not expected to be placed in conservatorship or receivership. 3. D iscounts f o r In d ivid u a ls, P artnerships, a n d Corporations [12 USC 347b(b). As added by act of Dec. 19, 1991 (105 Stat. 2279).) In unusual and exigent circum stances, the Board of G overnors o f the Federal Reserve System, by the affirmative vote of not less th a n five m e m b e rs, m ay a u th o riz e a n y Federal Reserve Bank, during such periods as the said b oard m ay determ ine, at rates es tablished in accordance w ith th e provisions o f section 14, subdivision (d), of this Act, to discount for any individual, partnership, or corporation, notes, drafts, a n d bills o f ex change w hen such notes, drafts, and bills of exchange are indorsed or otherw ise secured to the satisfaction of the Federal Reserve Bank: Provided, That before discounting any such note, draft, or bill of exchange for an indi v id u a l, p a r tn e r s h ip , o r c o rp o r a tio n th e Federal Reserve Bank shall obtain evidence that such individual, partnership, or corpora tion is unable to secure adequate credit ac c o m m o d a tio n s fro m o t h e r b a n k in g institutions. All such discounts for individu als, partnerships, o r corporations shall be (i) is not critically undercapitalized; SECTION 11 Pow ers o f Board of G overnors o f the Federal Reserve System T he Board of G overnors of the Federal Re serve System shall b e authorized and em pow ered: R ediscounts by O ne Reserve B a n k fo r A n oth er (b) To permit, or, o n the affirmative vote of at least five m em bers o f the B oard o f Gover nors of the Federal Reserve System to require Federal Reserve Banks to rediscount the dis counted paper of other Federal Reserve Banks at rates o f interest to b e fixed by the Board of G overnors of the Federal Reserve System. [12 USC 248(b). Part of original Federal Reserve Act; not amended.] V subject to such limitations, restrictions, and regulations as the Board o f G overnors of the Federal Reserve System m ay prescribe. [12 USC 343- As added by act of July 21, 1932 (47 Stat. 715); and am ended by acts of Aug. 23, 1935 (49 Stat. 714) and Dec. 19, 1991 (105 Stat. 2386).] 4. D iscount or P urchase o f Sight D rafts U pon the indorsem ent of any of its m em ber banks, w hich shall be deem ed a w aiver of dem and, notice, and protest by such b ank as to its o w n indorsem ent exclusively, and sub ject to regulations and limitations to be p re scribed by the Board o f G overnors of the Federal Reserve System, any Federal Reserve Bank m ay discount or purchase bills of ex change payable at sight or on dem and w hich grow out of the dom estic shipm ent or the exportation of nonperishable, readily m arket able agricultural and other staples and are secured by bills o f lading or oth er shipping docum ents conveying or securing title to such staples: Provided, That all such bills of ex change shall be forw arded prom ptly for col lection, and dem an d for paym ent shall be m ade w ith reasonable prom ptness after the arrival of such staples at their destination: P rovided fu rth er, that no such bill shall in any event be held by or for the account o f a Federal Reserve Bank for a period in excess o f n inety days. In d isco u n tin g such bills Federal Reserve Banks m ay com pute the in terest to b e ded ucted o n the basis of the esti m ated life o f each bill and adjust the discount after paym ent o f such bills to conform to the actual life thereof. [12 USC 344. As added by act of March 4, 1923 (42 Stat. 1479); and am ended by act o f May 29, 1928 (45 Stat. 975).] 5. L im itation on D iscount o f P aper o f One B orrow er The aggregate of notes, drafts, and bills up on w hich any person, copartnership, association, or corporation is liable as maker, acceptor, indorser, drawer, or guarantor, rediscounted for any m em ber bank, shall at no time ex ceed the am ount for w hich such person, co partnership, association, or corporation may lawfully becom e liable to a national banking association u nd er the term s of section 5200 of the Revised Statutes, as amended: Provided, however, That nothing in this paragraph shall b e c o n stru ed to ch an g e th e ch aracter or class of pap er now eligible for rediscount by Federal Reserve Banks. [12 USC 345. As reenacted without change by act of March 3, 1915 (38 Stat. 958); and am ended by act o f Sept. 7, 1916 (39 Stat. 752), which completely revised this section; and by act of April 12, 1930 (46 Stat. 162).] 6. D isco u nt o f A cceptances Any Federal Reserve Bank may discount ac ceptances o f the kinds hereinafter described, w hich have a maturity at the tim e o f discount o f not m ore than 90 days’ sight, exclusive of days o f grace, and w hich are indorsed by at least one m em ber bank: Provided, That such acceptances if draw n for an agricultural pur pose and secured at the time of acceptance by w arehouse receipts or oth er such do cu m ents conveying or securing title covering readily m arketable staples m ay b e discounted with a m aturity at th e time of discount of not m ore than six m onths’ sight exclusive of days o f grace. [12 USC 346. As am ended by act of March 3, 1915 (38 Stat. 958); by act of Sept. 7, 1916 (39 Stat. 752), which com pletely revised this section; and by act of March 4,1923 (42 Stat. 1479).] 7. B a n k e r’s A cceptances (A) Any m em ber bank and any Federal or State branch or agency of a foreign bank subject to reserve requirem ents u nd er sec tion 7 o f the International Banking Act of 1978 (hereinafter in this paragraph referred to as “institutions”), m ay accept drafts or bills of exchange draw n u p o n it having not m ore than six m onths’ sight to run, exclusive of days of grace— (i) w hich grow out o f transactions involving the im portation or exporta tion of goods; (ii) w hich grow out o f transactions involving the dom estic shipm ent of goods; or (iii) w hich are secured at the time of acceptance by a w arehouse receipt or o th er such d o cu m en t conveying or securing title covering readily m arket able staples. (B) Except as provided in subparagraph (C), n o institution shall accept such bills, or b e obligated for a participation share in such bills, in an am ount equal at any time in the aggregate to m ore than 150 per centum of its paid-up and unim paired capital stock and surplus or, in the case of a U nited States branch o r agency o f a foreign bank, its dollar equivalent as d e term ined b y the Board u n d e r subp ara graph (H). (C) The Board, und er such conditions as it m ay prescribe, m ay authorize, by regu lation or order, any institution to accept such bills, o r b e obligated for a participa tion share in such bills, in an am ount not exceeding at any time in the aggregate 200 per centum o f its paid-up and unim paired capital stock an d surplus or, in the case o f a United States branch or agency of a foreign bank, its dollar equivalent as determ ined by the Board u n d e r subpara graph (H). (D) Notwithstanding subparagraphs (B) a nd (C), w ith respect to any institution, the aggregate acceptances, including o b ligations for a participation share in such a ccep tan ces, grow ing o u t o f dom estic tra n s a c tio n s shall n o t e x c e e d 50 p e r centum of the aggregate o f all acceptan ces, including obligations for a participa tion share in such acceptances, authorized for such institution u nder this paragraph. (E) No institution shall accept bills, or be obligated for a participation share in such bills, w h eth er in a foreign or dom estic transaction, for any o ne person, partner ship, corporatio n, association or o th er entity in an am ount equal at any time in the aggregate to m ore than 10 per centum of its paid-up and unim paired capital stock and surplus, or, in the case of a United States branch or agency o f a foreign bank, its dollar equivalent as determ ined by the Board under subparagraph (H), unless the institution is secured either by attached docum ents or by som e o ther actual secu rity grow ing out o f the sam e transaction as the acceptance. (F) W ith respect to a n institution w hich issues an acceptance, the limitations con tained in this paragraph shall not apply to that portion of an acceptance w hich is issued by such institution and w hich is covered by a participation agreem ent sold to an other institution. (G) In order to carry ou t the purposes of this paragraph, the Board m ay define any of the term s used in this paragraph, and, with respect to institutions w hich do not have capital or capital stock, the Board shall define an eq uivalen t m easure to w hich the lim itations contained in this paragraph shall apply. (H) Any limitation or restriction in this paragraph based on paid-up and unim paired capital stock and surplus of an in stitution shall be deem ed to refer, with respect to a United States branch or agency of a foreign bank, to the dollar equivalent of the paid-up capital stock and surplus of the foreign bank, as determ ined by the Board, and if the foreign bank has m ore than o n e United States branch or agency, th e b u s in e s s tra n s a c te d b y all su c h branches and agencies shall be aggregated in determ ining com pliance with the limi tation or restriction. [Formerly 12 USC 372, as am ended by act of March 3, 1915 (38 Stat. 958); by act of Sept. 7, 1916 (39 Stat. 752), which completely revised this section; and by acts of June 21, 1917 (40 Stat. 235) and Oct. 8, 1982 (96 Stat. 1239). Omitted from the U.S. Code.] 8. A d va n ces to M em ber B anks on Promissory Notes Any Federal Reserve B ank m ay m ake a d vances for periods not exceeding fifteen days to its m em ber banks on their promissory notes secured by the deposit or pledge of bonds, notes, certificates of indebtedness, or Trea sury bills of the United States, or by the d e posit or pledge o f debentures or other such obligations o f Federal Interm ediate Credit Banks w hich are eligible for purchase by Fed eral Reserve Banks under section 13a o f this Act, or by the deposit or pledge of bonds issued u n d e r the provisions o f subsection (c) of section 4 of the H om e O w ners’ Loan Act o f 1933, as am ended; and any Federal Re serve Bank m ay m ake advances for periods not e x ceed ing n inety days to its m em ber banks o n their prom issory notes secured by such notes, drafts, bills o f exchange, or ban k ers’ acceptances as are eligible for rediscount o r for purchase by Federal Reserve Banks under th e provisions of this Act, or secured by such obligations as are eligible for pu r chase u n der section 14(b) o f this Act. All such advances shall be m ade at rates to be estab lished by such Federal Reserve Banks, such vi rates to be subject to the review and determ i nation of the Board of G overnors of the Fed eral Reserve System. If an y m em ber b ank to w hich any such advance has b een m ade shall, during the life or continuance of such ad vance, and despite an official w arning of the reserve bank of the district or of the Board of G overnors of the Federal Reserve System to the contrary, increase its outstanding loans secured by collateral in the form o f stocks, bonds, debentures, or oth er such obligations, or loans m ade to m em bers o f any organized stock exchange, investm ent house, or dealer in securities, upo n any obligation, note, or bill, secured or unsecured, for the p urpose of purchasing a n d /o r carrying stocks, bonds, or other investm ent securities (except obli gations of the United States) such advance shall b e d eem ed im m ediately due and pay able, a n d such m em ber bank shall be ineli gible as a borrow er at th e reserve bank of the district u n der the provisions o f this para graph for such period as the Board o f G over nors o f the Federal Reserve System shall determ ine: Provided, That n o tem porary car rying or clearance loans m ade solely for the p urpose o f facilitating the purchase or deliv ery of securities offered for public subscrip tion shall be included in the loans referred to in this paragraph. [12 use 347. As added by act of Sept. 7,1916 (39 Stat. 753), which completely revised this section; and am ended by acts o f May 19, 1932 (47 Stat. 160); May 12, 1933 (48 Stat. 46); June 16, 1933 (48 Stat. 180); Jan. 31, 1934 (48 Stat. 348); April 27, 1934 (48 Stat. 646); Oct. 4, 1961 (75 Stat. 773); and Sept. 21, 1968 (82 Stat. 856).) 10. R egulation by B oard o f Governors o f D is counts, P urchases a n d Sales The discount and rediscount and the purchase a nd sale by any Federal Reserve Bank o f any bills receivable and o f dom estic and foreign bills o f exchange, and o f acceptances autho rized by this Act, shall be subject to such re strictions, limitations, and regulations as m ay be im posed by the Board o f G overnors of the Federal Reserve System. [Omitted from U.S. Code. As am ended by act of Sept. 7, 1916 (39 Stat. 753), which completely revised this section.] 13. A d va n ces to In d ivid u a ls, P artnerships, a n d C orporations on O bligations o f U nited States Subject to such limitations, restrictions and regulations as the Board of G overnors of the Federal Reserve System m ay prescribe, any Federal Reserve Bank m ay m ake advances to any individual, partnership or corporation on the prom issory notes o f such individual, part nership or corporation secured by direct o b ligation s o f th e U n ited States o r by any obligation w hich is a direct obligation of, or fully guaranteed as to principal and interest by, any agency of the U nited States. Such ad vances shall b e m ade for periods not exceed ing 90 days and shall b ear interest at rates fix ed from tim e to tim e b y th e F ed eral Reserve Bank, subject to the review and de term ination of the Board o f G overnors of the Federal Reserve System. [12 USC 347c. As a d d ed b y a rt o f March 9, 1933 (48 Stat. 7) a n d am e n d ed by act o f Sept. 21, 1968 (82 Stat. 856).] 14. Receipt o f Deposits fro m , D isco u nt Paper Endorsed by, a n d A dvances to Foreign B an ks Subject to such restrictions, limitations, and regulations as m ay b e im posed by the Board o f G overnors o f the Federal Reserve System, each Federal Reserve Bank m ay receive d e posits from, discount p ap er endorsed by, and m ake advances to any branch or agency o f a foreign bank in the sam e m anner and to the sam e extent that it m ay exercise such p o w ers w ith respect to a m em ber bank if such branch or agency is maintaining reserves with such Reserve Bank pursuant to section 7 of the International Banking Act of 1978. In ex ercising any such pow ers w ith respect to any such branch or agency, each Federal Reserve Bank shall give d u e regard to account bal ances being m aintained by such branch or agency with such Reserve Bank and the pro portion of the assets o f such branch or agency being held as reserves u n d e r section 7 of the International Banking Act of 1978. For the p u r p o s e s o f th is p a r a g r a p h , th e te rm s “b ranch ”, “agency”, an d “foreign b a n k ” shall have the sam e m eanings assigned to them in section 1 o f the International Banking Act of 1978. (12 USC 347d. As added by act of Sept. 17, 1978 (92 Stat. 621).] SECTION 13A Paper* D isc o u n t o f A gricultural 1. A u th o rity o f Federal Reserve B a n ks to Dis c o u n t A g ricu ltu ra l Paper U pon the indorsem ent o f any of its m em ber banks, w hich shall b e d eem ed a w aiver of dem and, notice, and protest by such bank as to its o w n in d o rse m e n t exclusively, any Federal Reserve Bank may, subject to regula tions an d limitations to be prescribed by the Board o f G overnors o f the Federal Reserve System, discount notes, drafts, and bills of exchange issued or draw n for an agricultural purpose, or based u p o n live stock, a n d hav ing a maturity, at the time of discount, exclu sive o f days o f grace, no t exceeding nine m onths, a n d such notes, drafts, and bills of exchange m ay b e offered as collateral secu rity for the issuance of Federal Reserve notes un der the provisions o f section 16 o f this Act: Provided, That notes, drafts, and bills of ex change with maturities in excess o f six months shall not be eligible as a basis for the issu ance o f Federal Reserve notes unless secured by w arehouse receipts o r other such n eg o tiable docum ents conveying or securing title to readily marketable staple agricultural prod ucts or by chattel m ortgage u p o n live stock w hich is being fattened for market. [12 USC 348. As added by act of March 4, 1923 (42 Stat. 1479).] Previously section 13a, this section was redesignated by act o f Dec. 19, 1991 (105 Stat. 2281). • 2. R ediscounts for, a n d D iscount o f Notes P ay able to, Federal In term edia te Credit B anks T hat any Federal Reserve Bank may, subject to regulations and limitations to be prescribed by the Board o f G overnors of th e Federal Reserve System, rediscount such notes, drafts, and bills for any Federal Interm ediate Credit Bank, except that no Federal Reserve Bank shall rediscount for a Federal Interm ediate Credit Bank any such note or obligation which bears the indorsem ent of a nonm em ber State b an k or trust com pany w hich is eligible for m em bership in the Federal Reserve System, in accordance w ith section 9 o f this Act. Any Federal Reserve Bank m ay also, subject to regulations and limitations to be prescribed by the Board of G overnors o f the Federal Reserve System, discount notes payable to and bearing the indorsem ent of any Federal In term ediate Credit Bank, covering loans or ad vances m ade by such bank pursuant to the provisions o f section 202(a) of Title II of the Federal Farm Loan Act, as am ended (U.S.C., title 12, ch. 8, sec. 1031), which have maturities at the time o f discount of not m ore than nine m onths, exclusive of days of grace, and which are secured by notes, drafts, or bills o f ex change eligible for rediscount by Federal Re serve Banks. [12 USC 349. As added by act of March 4, 1923 (42 Stat. 1480); and am ended by act of May 19, 1932 (47 Stat. 160).] tions as eligible for rediscount shall not be construed as rendering ineligible any other class o f p ap er o f such associations w hich is now eligible for rediscount. [12 USC 351. As added by act of March 4, 1923 (42 Stat. 1480).] 5. L im itations T he Board of G overnors of the Federal Re serve System may, by regulation, limit to a percentage o f the assets o f a Federal Reserve Bank the am ount of notes, drafts, acceptan ces, or bills having a maturity in excess of three m onths, but not exceeding six months, exclusive o f days of grace, w hich m ay be dis c ounted by such bank, and the am ount of notes, drafts, bills, or acceptance having a m aturity in excess o f six m onths, but not ex ceeding nine m onths, w hich may be redis c ounted by such bank. [12 USC 352. As added by act of March 4, 1923 (42 Stat. 1480).] SECTION 14 O pen Market O perations Every Federal Reserve Bank shall have power: 3. P urchase a n d Sale o f D ebentures o f Fed eral In term edia te C redit B a nks Any Federal Reserve Bank m ay also buy and sell deb entu res and other such obligations issued by a Federal Interm ediate Credit Bank or by a National Agricultural Credit C orpora tion, b ut only to the sam e extent as and sub ject to the sam e limitations as those upo n w hich it m ay buy and sell b o nd s issued u n d er Title I of the Federal Farm Loan Act. [12 USC 350. As added by act of March 4, 1923 (42 Stat. 1480). The meaning of the term “debentures", as used above, was affected by act of Aug. 19, 1937 (50 Stat. 718), 12 USC 1040, which provides: “The terms 'debenture’ and 'debentures’, when used in any Act of Congress, whenever enacted, except the Federal Farm Loan Act, relating to the purchase, sale, o r use as security, of debentures issued by or for the benefit and account of any Federal Intermediate Credit Bank or Banks, shall be deemed to mean debentures issued by any such bank indi vidually and consolidated debentures issued by such banks acting together.”] Rates o f D iscount (d) To establish from time to time, subject to review and determ ination of th e Board of G overnors o f th e Federal Reserve System, ra te s o f d isc o u n t to b e c h a rg e d b y th e Federal Reserve Bank for each class of pa per, w hich shall be fixed w ith a view o f ac com m odating com m erce and business; but each such b an k shall establish such rates ev ery fourteen days, or oftener if d eem ed nec essary by the Board; [12 USC 357. As am ended by acts o f April 13, 1920 (41 Stat. 550); March 4, 1923 (42 Stat. 1480); Aug. 23, 1935 (49 Stat. 706).] SECTION 19 Bank Reserves Reserve R equirem ents 4. Paper o f Cooperative M arketing Associations Notes, drafts, bills o f exchange or acceptan ces issued or draw n by cooperative m arket ing associations com posed of producers of agricultural products shall be deem ed to have b e en issued o r draw n for an agricultural pur pose, within the m eaning of this section, if the proceeds thereof have been or are to be advanced by such association to any m em bers thereof for an agricultural purpose, or have b e en or are to b e used by such associa tion in m aking paym ents to any m em bers th ereof on account o f agricultural products delivered by such m em bers to the associa tion, or if such proceeds have b e en or are to b e used by such association to m eet e xp en ditures incurred o r to b e incurred by the as sociation in co n n ectio n with the grading, processing, packing, preparation for market, o r m ark etin g o f any agricultural p ro d u c t handled by such association for any of its m em bers: Provided, That the express e n u m eration in this paragraph of certain classes o f p a p er o f cooperative m arketing associa vii (7) D isco un t a n d borrowing. Any deposi tory institution in w hich transaction accounts or nonpersonal tim e deposits are held shall b e entitled to the sam e discount and borrow ing privileges as m em ber banks. In the ad m in istra tio n o f d isc o u n t a n d b o rro w in g privileges, the Board and the Federal Reserve Banks shall take into consideration the sp e cial needs of savings and o ther depository institutions for access to discount and bor row ing facilities consistent w ith their long term asset portfolios and the sensitivity of such institutions to trends in the national m oney markets. [12 USC 461(c). As am ended by acts of March 31, 1980 (94 Stat. 133, 138).] Boundaries of the Federal Reserve Districts and their Branches Legend Both pages ■ Federal Reserve Bank city □ Board o f Governors o f the Federal Reserve System Facing page • Federal Reserve Branch city — Branch boundary N ote The Federal Reserve officially identifies Districts by number and Reserve Bank city (shown on both pages) and by letter (shown on the facing page). In the 12th District, the Seattle Branch serves Alaska, and the San Francisco Bank serves Hawaii. The System serves commonwealths and territories as follows: the New York Bank serves the Commonwealth o f Puerto Rico and the U.S. Virgin Islands; the San Francisco Bank serves American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. The Board o f Governors revised the boundaries o f the System most recently in August 1986. 1-A 2 -B 5_E 4 -D 3 -C Pittsburgh") Ii Buffalo K . B o sto n N ew Y ork P h il a d e l p h ia 9 -1 M in n e a p o l i s 10-J K a n s a s C it y ix Cleveland B altim ojj List o f Federal Reserve System Locations Board o f G o ve rn o rs o f the Federal Reserve System, W ashington, D.C. 20551 Federal Reserve Bank T ele p h o n e N um ber District BOSTON* 617-973-3000 1 600 Atlantic Avenue, Boston, Massachusetts 02106-2076 NEW YORK* Buffalo Branch 212-720-5000 716-849-5000 2 33 Liberty Street (Federal Reserve P.O. Station), New York, N ew York 10045 160 D elaw are Avenue, Buffalo, N ew Y ork 14202 (P.O. Box 961, Buffalo, New Y ork 14240-0961) PHILADELPHIA 215-574-6000 3 T en In d e p e n d en c e Mall, Philadelphia, Pennsylvania 19106 (P.O. Box 66, Philadelphia, Pennsylvania 19105) CLEVELAND* 216-579-2000 4 1455 East Sixth Street, C leveland, O h io 44114 (P.O. B ox 6387, Cleveland, O h io 44101) 150 Fourth Street, C incinnati, O hio 45202-0999 (P.O. Box 999, C incinnati, O h io 45201-0999) 717 G rant Street, Pittsburgh, Pennsylvania 15219 (P.O. Box 867, Pittsburgh, Pennsylvania 15230) 5 701 East Byrd Street, R ichm ond, Virginia 23219-7622 (P.O. Box 27622, R ichm ond, Virginia 23261-7622) 502 South Sharp Street, Baltimore, M aryland 21201 (P.O. Box 1378, Baltimore, M aryland 21203) 530 E. T rade Street, C harlotte, N orth Carolina 28202 (P.O. Box 30248, C harlotte, N orth Carolina 28230) M ount P ony Road, State Route 658, (P.O. D raw er 20) Culpeper, Virginia 22701 6 104 Marietta Street, N.W., Atlanta, G eorgia 30303 (P.O. B ox 1731, Atlanta, Georgia 30301-1731) 1801 Fifth Avenue, N orth, B irmingham, Alabama 35203 (P.O. Box 830447, Birmingham, Alabama 35283-0447) 800 W est W ater Street, Jacksonville, Florida 32204 (P.O. Box 929, Jacksonville, Florida 32231-0044) 910 0 N o rthw est 36th Street, Miami, Florida 33178-2525 (P.O. B ox 520847, Miami, Florida 33152-0847) 301 Eighth Avenue, N orth, Nashville, Tennessee 37203-4407 (P.O. B ox 4407, Nashville, Tennessee 37203-4407) 525 St. Charles Avenue, N ew O rleans, Louisiana 70130 (P.O. B ox 61630, New Orleans, Louisiana 70161-1630) 7 230 South Lasalle Street, Chicago, Illinois 60604-1413 (P.O. B ox 834, Chicago, Illinois 60690-0834) 160 W. Fort Street, D etroit, Michigan 48226-3217 (P.O. B ox 1059, Detroit, Michigan 48231) 8 411 Locust Street, St. Louis, Missouri 63102 (P.O. B ox 442, St. Louis, Missouri 63166) 325 W est Capitol Avenue, Little Rock, Arkansas 72201 (P.O. Box 1261, Little Rock, Arkansas 72203) 410 South Fifth Street, Louisville, K entucky 40202 (P.O. Box 32710, Louisville, K entucky 40232) 200 N orth Main Street, M emphis, Tennessee 38103 (P.O. Box 407, Memphis, T ennessee 38101) 9 250 M arquette Avenue, M inneapolis, M innesota 55401-2171 (P.O. Box 291, M inneapolis, M innesota 55480-0291 100 Neill Avenue, Helena, M ontana 59601 10 925 G rand B oulevard, Kansas City, Missouri 64198 1020 16th Street, D enver, C olorado 80202 (Terminal Annex-P.O. Box 5228, D enver, C olorado 80217-5228) 226 Dean A. McGee Avenue, (P.O. Box 25129) O klahom a City, O klaho m a 73125 2201 Farnam Street, O m aha, Nebraska 68102 (P.O. Box 3958, O m aha, Nebraska 68103) 11 2200 N orth Pearl Street, Dallas, Texas 75201-2272 (P.O. B ox 655906, Station K, Dallas, Texas 75265-5906 301 East Main Street, El Paso, Texas 79901-1326 (P.O. B ox 100, El Paso, Texas 79999-0100) 1701 San Jacinto Street, H ouston, Texas 77002-8215 (P.O. B ox 2578, H ouston, Texas 77252-2578) 126 East Nueva Street, San A ntonio, Texas 78204-1020 (P.O. Box 1471, San A ntonio, Texas 78295-1491) 12 101 Market Street, San Francisco, California 94105 (P.O. B ox 7702, San Francisco, California 94120) 950 South G ran d Avenue, Los Angeles, California 90015 (Terminal Annex-P.O. Box 2077, Los Angeles, California 90051) 915 S.W. Stark Street, Portland, O rego n 97025 (P.O. B ox 3436, Portland, O re g o n 97208) 120 South State Street, Salt Lake City, Utah 84111 (P.O. B ox 30780, Salt Lake City, Utah 84130) 1015 S econd Avenue, Seattle, W ashington 98104 (P.O. Box 3567, Seattle, W ashington 98124) Cincinnati Branch 513-721-4787 Pittsburgh Branch 412-261-7800 RICHMOND* 804-697-8000 Baltimore Branch 410-576-3300 C harlotte Branch 704-358-2100 C u lpep er Facility 703-825-1261 ATLANTA 404-521-8500 Birm ingham Branch 205-731-8500 Jacksonville Branch 904-632-1000 Miami Branch 305-591-2065 Nashville Branch 615-251-7100 New O rleans 504-593-3200 CHICAGO* D etroit B ranch ST. LOUIS 312-322-5322 313-961-6880 314-444-8444 Little Rock Branch 501-372-5451 Louisville Branch 502-568-9200 M em phis Branch 901-523-7171 MINNEAPOLIS 612-340-2345 Helena Branch 406-447-3800 KANSAS CITY D enver Branch 816-881-2000 303-572-2300 O klahom a City Branch O m aha Branch DALLAS 405-270-8400 402-221-5500 214-922-6000 El Paso Branch 915-544-4730 H ouston Branch 713-659-4433 San A ntonio Branch 210-978-2100 SAN FRANCISCO 415-974-2000 Los Angeles Branch 213-683-2300 Po rtland Branch 503-221-5900 Salt Lake City Branch 801-322-7900 Seattle Branch 206-343-3600 A ddress * A dditional offices o f these Banks are located at Lewiston, Maine 04240; W indsor Locks, C onnecticu t 06096; Cranford, New Jersey 07016; Jericho, N ew York 11753; Utica O riskany, New York 13424; C olum bus, O h io 43229; Coulm bia, South Carolina 29210; C harleston, West Virginia 25328; Des Moines, Iow a 50306; Indianapolis, Indiana 46206; an d Milwaukee, W isconsin 53201. X
@FedFRASER