CFR > Title 12 - Banks and Banking > CHAPTER II—FEDERAL RESERVE SYSTEM > SUBCHAPTER A—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (parts 200 to 269b) > PART 223—TRANSACTIONS BETWEEN MEMBER BANKS AND THEIR AFFILIATES (REGULATION W) > SUBPART F—General Provisions of Section 23B (§223.51 to §223.56) > 223.56—What transactions are exempt from the market-terms requirement of section 23B?

223.56—What transactions are exempt from the market-terms requirement of section 23B?

The following transactions are exempt from the market-terms requirement of § 223.51.
(a) Purchases of certain asset-backed commercial paper. Purchases of asset-backed commercial paper from an affiliated SEC-registered open-end investment company that holds itself out as a money market mutual fund under SEC Rule 2a-7 ( 17 CFR 270.2a-7 ), if the member bank:
(1) Purchases the asset-backed commercial paper on or after September 19, 2008;
(2) Pledges the asset-backed commercial paper to a Federal Reserve Bank to secure financing from the asset-backed commercial paper lending facility (AMLF) established by the Board on September 19, 2008; and
(3) Has not been specifically informed by the Board, after consultation with the member bank's appropriate Federal banking agency, that the member bank may not use this exemption.
(b) [Reserved]

Code of Federal Regulations

[Reg. W, 74 FR 6228, Feb. 6, 2009]