[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: 12CFR217.1]

[Page 454-455]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 217--PROHIBITION AGAINST THE PAYMENT OF INTEREST ON DEMAND DEPOSITS (REGULATION Q)--Table of Contents
 
Sec. 217.1  Authority, purpose, and scope.

    (a) Authority. This part is issued under the authority of section 19 
of the Federal Reserve Act (12 U.S.C. 371a, 461, 505), section 7 of the 
International

[[Page 455]]

Banking Act of 1978 (12 U.S.C. 3105), section 11 of the Federal Reserve 
Act (12 U.S.C. 248), and section 8 of the Federal Deposit Insurance Act 
(12 U.S.C. 1818), unless otherwise noted.
    (b) Purpose. This part prohibits the payment of interest on demand 
deposits by member banks and other depository institutions within the 
scope of this part.
    (c) Scope. (1) This regulation applies to state chartered banks that 
are members of the Federal Reserve under section 9 of the Federal 
Reserve Act (12 U.S.C. 321, et seq.) and to all national banks. The 
regulation also applies to any Federal branch or agency of a foreign 
bank and to a State uninsured branch or agency of a foreign bank in the 
same manner and to the same extent as if the branch or agency were a 
member bank, except as may be otherwise provided by the Board, if:
    (i) Its parent foreign bank has total worldwide consolidated bank 
assets in excess of $1 billion;
    (ii) Its parent foreign bank is controlled by a foreign company 
which owns or controls foreign banks that in the aggregate have total 
worldwide consolidated bank assets in excess of $1 billion; or
    (iii) Its parent foreign bank is controlled by a group of foreign 
companies that own or control foreign banks that in the aggregate have 
total worldwide consolidated bank assets in excess of $1 billion.
    (2) For deposits held by a member bank or a foreign bank, this 
regulation does not apply to ``any deposit that is payable only at an 
office located outside of the United States'' (i.e., the States of the 
United States and the District of Columbia) as defined in Sec. 204.2(t) 
of the Board's Regulation D-- Reserve Requirements of Depository 
Institutions (12 CFR 20.4).

[Reg. Q, 51 FR 9637, Mar. 20, 1986, as amended at 57 FR 43336, Sept. 21, 
1992]