[Code of Federal Regulations]
[Title 12, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR250.160]

[Page 667]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 250--MISCELLANEOUS INTERPRETATIONS--Table of Contents
 
Sec. 250.160  Federal funds transactions.

    (a) It is the position of the Board of Governors of the Federal 
Reserve System that, for purposes of provisions of law administered by 
the Board, a transaction in Federal funds involves a loan on the part of 
the selling bank and a borrowing on the part of the purchasing bank.
    (b) For example, for purposes of section 23A of the Federal Reserve 
Act (12 U.S.C. 371c), a sale of Federal funds by a member bank, whether 
State or national, to an affiliate of the member bank is subject to the 
limitations prescribed in that section.

(12 U.S.C. 371c)

    Effective Date Note: At 67 FR 76622, Dec. 12, 2002, Sec. 250.160 was 
amended by removing paragraph (b), effective Apr. 1, 2003.