[Code of Federal Regulations]
[Title 12, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR201.6]

[Page 11-12]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 201--EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION A)--Table of Contents
 
Sec. 201.6  General requirements.

    (a) Credit for capital purposes. Federal Reserve credit is not a 
substitute for capital.

[[Page 12]]

    (b) Compliance with law and regulation. All credit extended under 
this part shall comply with applicable requirements of law and of this 
part. Each Federal Reserve Bank:
    (1) Shall keep itself informed of the general character and amount 
of the loans and investments of depository institutions with a view to 
ascertaining whether undue use is being made of depository institution 
credit for the speculative carrying of or trading in securities, real 
estate, or commodities, or for any other purpose inconsistent with the 
maintenance of sound credit conditions; and
    (2) Shall consider such information in determining whether to extend 
credit.
    (c) Information. A Federal Reserve Bank shall require any 
information it believes appropriate or desirable to insure that paper 
tendered as collateral for advances or for discount is acceptable and 
that the credit provided is used in a manner consistent with this part.
    (d) Indirect credit for others. Except for depository institutions 
that receive credit under the Special Liquidity Facility described in 
Sec. 201.3(e), no depository institution shall act as the medium or 
agent of another depository institution in receiving Federal Reserve 
credit except with the permission of the Federal Reserve bank extending 
credit.

[58 FR 68514, Dec. 28, 1993, as amended at 64 FR 41770, Aug. 2, 1999]

    Effective Date Note: At 67 FR 67787, Nov. 7, 2002, Sec. 201.6 was 
removed, effective Jan. 9, 2003.