[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: 12CFR217.2] [Page 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. 217.2 Definitions. For purposes of this part, the following definitions apply unless otherwise specified; (a) Demand deposit means any deposit that is considered to be a demand deposit under Sec. 204.2(b) of the Board's Regulation D--Reserve Requirements of Depository Institutions (12 CFR part 204). (b) Deposit means any liability of a member bank that is considered to be a deposit under Sec. 204.2(a) of the Board's Regulation D--Reserve Requirements of Depository Institutions (12 CFR part 204). (c) Foreign bank means any bank that is considered to be a foreign bank under Sec. 204.2(o) of the Board's Regulation D--Reserve Requirements of Depository Institutions (12 CFR part 204). (d) Interest means any payment to or for the account of any depositor as compensation for the use of funds constituting a deposit. A member bank's absorption of expenses incident to providing a normal banking function or its forbearance from charging a fee in connection with such a service is not considered a payment of interest.