Order Form Mail To: Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402 Title 12-Banks and Banking (This book contains Parts 200 to 219) CHAPTER II-Federal Reserve System .......... Part 201 CROSS REFERENCES: Farmers Home Administration: See Agriculture, 7 CFR, Office of Assistant Secretary for Housing-Federal Housing Commissioner, De- Fiscal Service: See Money and Finance: Treasury, 31 CFR, Chapter II. Monetary Offices: See Money and Finance: Treasury, 31 CFR, Chapter I. Commodity Credit Corporation: See Agriculture, 7 CFR, Chapter XIV. Small Business Administration: See Business Credit and Assistance, 13 CFR, Rural Electrification Administration: See Agriculture, 7 CFR, Chapter XVII. 1 ...... Reimbursement to financial institutions for as- SUPPLEMENTAL PUBLICATIONS: The Federal Reserve Act, as amended through December 31, SUBCHAPTER A-BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 201.104 Eligibility of consumer loans and finance company paper. 201.107 Eligibility of demand paper for discount and as security for advances by Reserve Banks. 201.108 Obligations eligible as collateral for advances. 201.109 Eligibility for discount of mortgage company notes. 201.110 Goods held by persons employed by owner. AUTHORITY: Secs. 10(a), 10(b), 13, 13a, 14(d) and 19 of the Federal Reserve Act (12 U.S.C. 347a, 347b, 343 et seq., 347c, 348 et seq., 357, 374, 374a, and 461); and sec. 7(b) of the International Banking Act of 1978 (12 U.S.C. 347d). SOURCE: 45 FR 54010, Aug. 14, 1980, unless otherwise noted. § 201.1 Authority, scope and purpose. (a) Authority and scope. This part is issued under the authority of sections 10(a), 10(b), 13, 13a, and 19 of the Federal Reserve Act (12 U.S.C. 347a, 347b, 343 et seq., 347c, 348 et seq., 374, 374a, and 461), other provisions of the Federal Reserve Act, and section 7(b) of the International Banking Act of 1978 (12 U.S.C. 347d) and relates to extensions of credit by Reserve Banks to depository institutions and others. Except as may be otherwise provided, this part shall be applicable to United States branches and agencies of foreign banks subject to reserve requirements under Regulations D (12 CFR Part 204) in the same manner and to the same extent as member banks. (b) Purpose. This part establishes rules under which Federal Reserve Banks may extend credit to depository institutions and others. Extending credit to depository institutions to accommodate commerce, industry, and agriculture is a principal function of Reserve Banks. While open market operations are the primary means of affecting the overall supply of reserves, the lending function of the Reserve Banks is an effective method of supplying reserves to meet the particular credit needs of individual depository institutions. The lending functions of the Federal Reserve System are conducted with due regard to the basic objectives of monetary policy and the maintenance of a sound and orderly financial system. These basic objectives are promoted by influencing the overall volume and cost of credit through actions that affect the volume and cost of reserves to depository institutions. Borrowing by individual depository institutions, at a rate of interest that is adjusted from time to time in accordance with prevailing economic and money market conditions, has a direct impact on the reserve positions of the borrowing institutions and thus on their ability to meet the credit needs of their customers. However, the effects of such borrowing do not remain localized but have an important bearing on overall monetary and credit conditions. |