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U.S. Code as of:
01/19/04
Section 4808. Revising regulatory requirements for transfers of all types of assets with recourse
(a) Review and revision of regulations
(1) In general
During the 180-day period beginning on September 23, 1994, each
appropriate Federal banking agency shall, consistent with the
principles of safety and soundness and the public interest -
(A) review the agency's regulations and written policies
relating to transfers of assets with recourse by insured
depository institutions; and
(B) in consultation with the other Federal banking agencies,
promulgate regulations that better reflect the exposure of an
insured depository institution to credit risk from transfers of
assets with recourse.
(2) Regulations required
Before the end of the 180-day period beginning on September 23,
1994, each appropriate Federal banking agency shall prescribe the
regulations developed pursuant to paragraph (1)(B).
(b) Regulations required
(1) In general
After the end of the 180-day period beginning on September 23,
1994, the amount of risk-based capital required to be maintained,
under regulations prescribed by the appropriate Federal banking
agency, by any insured depository institution with respect to
assets transferred with recourse by such institution may not
exceed the maximum amount of recourse for which such institution
is contractually liable under the recourse agreement.
(2) Exception for safety and soundness
The appropriate Federal banking agency may require any insured
depository institution to maintain risk-based capital in an
amount greater than the amount determined under paragraph (1), if
the agency determines, by regulation or order, that such higher
amount is necessary for safety and soundness reasons.
(c) Coordination with section 1835(b) of this title
This section shall not be construed as superseding the
applicability of section 1835(b) of this title.
(d) Definitions
For purposes of this section, the terms "appropriate Federal
banking agency", "Federal banking agency", and "insured depository
institution" have the same meanings as in section 1813 of this
title.
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