The term ”financial consideration” is broad and includes, but is not limited to, bank holding companies (and their affiliates), custodian banks, credit unions, trusts and other trustees, industrial banks, credit and credit companies, money services companies, broker-dealers, investment advisors, registered investment companies, private funds, commodity mutual funds, futures commission brokers, employee pension plans and money services companies and insurance companies, among others. The definition of ”financial consideration” also includes foreign banks that carry on banking activities directly outside the United States and foreign companies that carry on activities that would fall within the definition of ”financial consideration” if they were organized under the laws of the United States or another state of the United States. In general, ”small financial institutions” are banks, savings banks and credit unions with total assets of $10 billion or less. The definitions of ”financial consideration” and ”small financial institution” are quite complex, and whether your institution falls under one of these definitions (or exceptions to them) may depend on the exact nature of the activities in which you are involved. The Dodd-Frank Wall Street Reform and Consumer Protection Act1, commonly known as the ”Dodd-Frank”, defines a QFC very broadly. The definition includes all securities contracts, commodity contracts, futures, repurchase agreements, swap agreements and similar arrangements that the Federal Deposit Insurance Corporation (FDIC) establishes as an eligible financial contract by regulation, regulation or order.2 In general, framework agreements (such as those adopted by the International Swaps and Derivatives Association (ISDA) that relate to QFCs are themselves QFC. The QFCs that are the subject of the QFC suspension rules discussed below are those that contain certain provisions that U.S. banking regulators have determined to be or could be detrimental to the orderly resolution of a GSIB. These are called ”QFC in scope” and are the driving force behind your financial institution`s notification. (d) Nothing in this Section shall be construed as limiting or modifying a party`s obligation to comply with all reasonable business practices and requirements, non-insolvency requirements and any other requirements imposed by other provisions of the FDI Act. This Section does not in any way limit the Corporation`s authority to take supervisory or enforcement measures or otherwise manage the affairs of any financial institution for which the Corporation has been appointed custodian or receiver.
We collectively refer to these rules as QFC rules. (b) repurchase agreements. The following agreements are considered ”repurchase agreements” under Section 11(e)(8)(D)(v) of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1821(e)(8)(D)(v)): An eligible foreign government bond repurchase agreement is an agreement or combination of agreements (including framework agreements) that provides for the transfer of securities that meet the direct obligations of central governments (pursuant to Article 12 CFR 324.2 (definition of Government Risk), which may be amended from time to time) of the OECD-based group of countries or are fully guaranteed by them. 324.32) against the transfer of funds by the purchaser of such securities with the simultaneous consent of that acquirer to transfer securities to the assignor as described above at a specified time no later than one year after such transfers or upon request against the transfer of funds. . . .