[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: 12CFR214.5]

[Page 423]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 214--RELATIONS WITH FOREIGN BANKS AND BANKERS (REGULATION N)--Table of Contents
 
Sec. 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 representatives of the 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 transactions of the 
Federal Reserve Banks incident to the opening, maintenance, operation, 
increase, reduction, or discontinuance of such account; and, in any such 
case, such negotiations, agreements, contracts, 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 Committee, 
carry on or conduct, through any other Federal Reserve Bank which 
maintains an account with 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 Federal 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.

[Reg. N, 27 FR 1719, Feb. 22, 1962]

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