View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE B A N K OF D ALLAS
DALLAS, TEXAS

M arch 22, 1962

REPRINT OF REGULATION N

To All Member Banks and Others Concerned
in the Eleventh Federal Reserve District:

Enclosed is a copy o f Regulation N o f the Board o f Gov­
ernors o f the Federal R eserve System. The Regulation has
been reprinted to conform with the style o f the Code o f the
Federal Regulations.
M em ber banks are requested to rem ove the old copy of
the Regulation from their ring binders containing the R egu­
lations o f the Board o f Governors and insert the enclosed copy
in lieu thereof.
Y ours very truly,
W atrous H. Irons
President

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

BOARD OF GOVERNORS
o f the
FEDERAL RESERVE SYSTEM

RELATIONS WITH FOREIGN BANKS
AND BANKERS
▼
REGULATION N
(1 2 CFR 214)
As amended effective February 13, 1962

REGULATION N
(12 CFR 214)

As amended effective February 13, 1962

RELATIONS WITH FOREIGN BANKS AND BANKERS*
SECTION 214.1—SCOPE OF PART

Pursuant to the authority conferred upon it by section 14 of the
Federal Reserve Act, as amended (40 Stat. 235, 48 Stat. 181; 12 U.S.C.
358, 348a), and by other provisions of law, the Board of Governors of
the Federal Reserve System prescribes the following regulations gov­
erning relationships and transactions between Federal Reserve Banks
and foreign banks or bankers or groups of foreign banks or bankers or
a foreign State as defined in section 25(b) of the Federal Reserve Act
(55 Stat. 131; 12 U.S.C. 632).

SECTION 214.2—INFORMATION TO BE FURNISHED TO THE BOARD

In order that the Board of Governors of the Federal Reserve System
may perform its statutory duty of exercising special supervision over
all relationships and transactions of any kind entered into by any
Federal Reserve Bank with any foreign bank or banker or with any
group of foreign banks or bankers or with any foreign State, each Fed­
eral Reserve Bank shall promptly submit to the Board of Governors
of the Federal Reserve System in writing full information concerning
all existing relationships and transactions of any kind heretofore en­
tered into by such Federal Reserve Bank with any foreign bank or
banker or with any group of foreign banks or bankers or with any
foreign State and copies of all written agreements between it and any
foreign bank or banker or any group of foreign banks or bankers or
any foreign State which are now in force, unless copies have heretofore
been furnished to the Board. Each Federal Reserve Bank shall also
keep the Board of Governors of the Federal Reserve System promptly
and fully advised of all transactions with any foreign bank or banker
or with any group of foreign banks or bankers or with any foreign
State, except transactions of a routine character.
•The text corresponds to the Code of Federal Regulations, Part 212, Chapter II, Part 214
cited as 12 CFR 214.

S ecs . 214.3-214.4

R E G U L A T IO N N

2

SECTION 214.3—CONFERENCES AND NEGOTIATIONS WITH
FOREIGN BANKS, BANKERS OR STATES

(a) Without first obtaining the permission of the Board of Govern­
ors of the Federal Reserve System, no officer or other representative of
any Federal Reserve Bank shall conduct negotiations of any kind with
the officers or representatives of any foreign bank or banker or any
group of foreign banks or bankers of any foreign State, except com­
munications in the ordinary course of business in connection with
transactions pursuant to agreements previously approved by the Board
of Governors of the Federal Reserve System. Any request for the
Board’s permission to conduct any such negotiations shall be submitted
in writing and shall include a full statement of the occasion and objects
of the proposed negotiations.
( b ) The Board of Governors of the Federal Reserve System reserves
the right, in its discretion, to be represented by such representatives as
it may designate in any negotiations between any officer or other repre­
sentative of any Federal Reserve Bank and any officers or representa­
tives of any foreign bank or banker or any group of foreign banks or
bankers or any foreign State; and the Board shall be given reasonable
notice in advance of the time and place of any such negotiations; and
may itself designate the time and place of any such negotiations.
(c) A full report of all such conferences or negotiations and all
understandings or agreements arrived at or transactions agreed upon
and all other material facts appertaining to such conferences or nego­
tiations shall be filed with the Board of Governors of the Federal
Reserve System in writing by a duly authorized officer of each Fed­
eral Reserve Bank which shall have participated in such conferences
or negotiations, including copies of all correspondence appertaining
thereto.
SECTION 214.4—AGREEMENTS WITH FOREIGN BANKS, BANKERS,
OR STATES, AND PARTICIPATION IN FOREIGN ACCOUNTS

(а) No Federal Reserve Bank shall enter into any agreement, con­
tract, or understanding with any foreign bank or banker or with any
group of foreign banks or bankers or with any foreign State without
first obtaining the permission of the Board of Governors of the Federal
Reserve System.
(б) When any Federal Reserve Bank, with the approval of the
Board of Governors of the Federal Reserve System, has opened an
account for any foreign bank or banker or group of foreign banks
or bankers or for any foreign State, or has entered into any agree­
ment, contract, or understanding with reference to opening or main­
taining such an account, or with reference to any other matter or
matters, any other Federal Reserve Bank may participate in such
account, or in such agreement, contract, or understanding, and in

3

R E G U L A T IO N N

Secs. 214.4-214.5-214.6

operations and transactions performed therein or pursuant thereto,
with the approval of the Board of Governors of the Federal Reserve
System.
SECTION 214.5—ACCOUNTS WITH FOREIGN BANKS

(a) Any Federal Reserve Bank, with the consent of the Board, may
open and maintain accounts payable in foreign currencies with such
foreign banks as may be designated by the Board.
( b ) Notwithstanding other provisions of this Part, any officer or
other representative of a Federal Reserve Bank which maintains an
account with a foreign bank may conduct such negotiations and enter
into such agreements, contracts, or understandings with such foreign
bank as may be authorized or directed by the Federal Open Market
Committee in order to effectuate the conduct of open market trans­
actions of the Federal Reserve Banks incident to the opening, mainte­
nance, operation, increase, reduction, or discontinuance of such
account; and, in any such case, such negotiations, agreements, con­
tracts, or understandings shall be subject to such authorizations,
directions, regulations, and limitations as may be prescribed by, or
pursuant to authority of, the Federal Open Market Committee.
(c) Any Federal Reserve Bank may, when authorized or directed
so to do by, or under the authority of, the Federal Open Market Com­
mittee, carry on or conduct, through any other Federal Reserve Bank
which maintains an account with a a foreign bank, any open market
transactions authorized by section 14 of the Federal Reserve Act.
Transactions authorized by section 14 which are not open market
transactions may be carried on or conducted through such other Fed­
eral Reserve Bank only with the approval of the Board.
(d) Notwithstanding other provisions of this Part, reports with
respect to any accounts opened and maintained, and negotiations,
agreements, contracts, and understandings entered into, pursuant to
this section shall be made to the Board at least quarterly, and more
frequently if so requested by the Board, by a duly authorized officer
of the Federal Reserve Bank involved.
SECTION 214.6—AMENDMENTS

The Board of Governors of the Federal Reserve System reserves the
right, in its discretion, to alter, amend or repeal these regulations and
to prescribe such additional regulations, conditions, and limitations as
it may deem desirable, respecting relationships and transactions of any
kind entered into by any Federal Reserve Bank with any foreign bank
or banker or with any group of foreign banks or bankers or with any
foreign State.