31 U.S.C. § 9110 : US Code - Section 9110: Standards for depository institutions holding securities of a Government-sponsored corporation for customers

Search 31 U.S.C. § 9110 : US Code - Section 9110: Standards for depository institutions holding securities of a Government-sponsored corporation for customers

(a) The Secretary shall prescribe by regulation standards for the
safeguarding and use of obligations that are government securities
described in subparagraph (B) or (C) of section 3(a)(42) of the
Securities Exchange Act of 1934. Such regulations shall apply only
to a depository institution that is not a government securities
broker or a government securities dealer and that holds such
obligations as fiduciary, custodian, or otherwise for the account
of a customer and not for its own account. Such regulations shall
provide for the adequate segregation of obligations so held,
including obligations which are purchased or sold subject to resale
or repurchase.
(b) Violation of a regulation prescribed under subsection (a)
shall constitute adequate basis for the issuance of an order under
section 5239(a) or (b) of the Revised Statutes (12 U.S.C. 93(a) or
(b)), section 8(b) or 8(c) of the Federal Deposit Insurance Act,
section 5(d)(2) or 5(d)(3) (!1) of the Home Owners' Loan Act of
1933, section 407(e) or 407(f) (!1) of the National Housing Act, or
section 206(e) or 206(f) of the Federal Credit Union Act. Such an
order may be issued with respect to a depository institution by its
appropriate regulatory agency and with respect to a federally
insured credit union by the National Credit Union Administration.
(c) Nothing in this section shall be construed to affect in any
way the powers of such agencies under any other provision of law.
(d) The Secretary shall, prior to adopting regulations under this
section, determine with respect to each appropriate regulatory
agency and the National Credit Union Administration Board, whether
its rules and standards adequately meet the purposes of regulations
to be promulgated under this section, and if the Secretary so
determines, shall exempt any depository institution subject to such
rules or standards from the regulations promulgated under this
section.
(e) As used in this subsection -
(1) "depository institution" has the meaning stated in clauses
(i) through (vi) of section 19(b)(1)(A) of the Federal Reserve
Act and also includes a foreign bank, an agency or branch of a
foreign bank, and a commercial lending company owned or
controlled by a foreign bank (as such terms are defined in the
International Banking Act of 1978).
(2) "government securities broker" has the meaning prescribed
in section 3(a)(43) of the Securities Exchange Act of 1934.
(3) "government securities dealer" has the meaning prescribed
in section 3(a)(44) of the Securities Exchange Act of 1934.
(4) "appropriate regulatory agency" has the meaning prescribed
in section 3(a)(34)(G) of the Securities Exchange Act of 1934.