[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: 12CFR250.245]

[Page 682]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 250--MISCELLANEOUS INTERPRETATIONS--Table of Contents
 
Sec. 250.245  Exemption from section 23A of the Federal Reserve Act for certain loans and extensions of credit by an insured depository institution to a 
          nonaffiliate made pursuant to a preexisting line of credit.

    Section 23A of the Federal Reserve Act (12 U.S.C. 371c) shall not 
apply to an extension of credit by an insured depository institution 
(``depository institution'') to any person other than an affiliate of 
such depository institution if--
    (a) The proceeds of the loan or extension of credit are used to 
purchase a security from or through an affiliate of the depository 
institution that is a broker-dealer registered with the Securities and 
Exchange Commission; and
    (b) The loan or extension of credit is made pursuant to, and 
consistent with any conditions imposed in, a preexisting line of credit 
that was not established in contemplation of the purchase of securities 
from or through an affiliate of the depository institution.

[66 FR 24229, May 11, 2001]

    Effective Date Note: At 67 FR 76622, Dec. 12, 2002, Sec. 250.245 was 
removed, effective Apr. 1, 2003.