or an agreement corporation has acquired 25 percent or more of the voting shares of the bank or corporation.

§ 20.3

Prior notification of international operations.

On and after the effective date hereof: (a) Prior notification. Prior notification to the Comptroller of the Currency shall be required before a national bank may engage in any of the following international operations:

(1) The establishment of a branch of a national bank in a foreign country, or in a dependency or insular possession of the United States or a foreign country.

(2) The establishment in the United States, in a foreign country, or in a dependency or insular possession of the United States or a foreign country, of an office, branch or agency of an Edge Act corporation, agreement corporation or foreign bank which is controlled by a national bank.

(3) The direct acquisition by a national bank of a controlling interest in an Edge Act corporation, agreement corporation or foreign bank.

(4) The acquisition by a national bank, through an Edge Act corporation, agreement corporation or foreign bank which is controlled by it, of a controlling interest in a foreign bank or in any other corporation or association organized under the laws of a foreign country, or under the laws of a dependency or insular possession of the United States or a foreign country.

(b) Forms. Prior notification shall be made on forms provided by the Comptroller of the Currency.

(a) Reports. A report shall be made to the Comptroller of the Currency within 30 days of the occurrence of any of the following international operations: (1) The relocation of a branch of a national bank in a foreign country, or in a dependency or insular possession of the United States or a foreign country.

(2) The relocation in the United States, in a foreign country, or in a dependency or insular possession of the United States or a foreign country, of an office, branch, or agency of an Edge Act corporation, agreement corporation or foreign bank which is controlled by a national bank.

(3) The direct acquisition by a national bank of an interest in an Edge Act corporation, agreement corporation or foreign bank, where the acquisition does not result in control of the Edge Act corporation, agreement corporation or foreign bank.

(4) The acquisition by a national bank, through an Edge Act corporation, agreement corporation or foreign bank which is controlled by it, of an interest in a foreign bank or in any other corporation or association organized under the laws of a foreign country, or under the laws of a dependency or insular possession of the United States or a foreign country, where the acquisition does not result in control of the foreign bank or other corporation or association.

(b) Forms. Reports shall be made on forms provided by the Comptroller of the Currency.

201.101 Eligibility of Merchant Marine Bonds as security for loans by Federal Reserve Banks.

201.102 Deed of trust notes issued under military housing program as collateral for advances.

201.103 Farmers Home Administration insured notes as collateral for advances.

201.104 Eligibility of consumer loans and finance company paper. 201.105 Export-Import Bank participation certificates as collateral for advances.

201.106 Eligibility of Small Business Administration notes for purchase and as security for advances by Federal Reserve Banks. 201.107 Eligibility of demand paper for discount and as security for advances by Reserve Banks.

AUTHORITY: The provisions of this Part 201 issued under 12 U.S.C. 84, 248, 301, 330, 343-347, 347b, 347c, 348, 349, 351, 352, 361, 371, 372, 373, 374.

REGULATIONS

Source: §§ 201.0 to 201.6 contained in Regulation A, 20 F.R. 263, Jan. 12, 1955, unless otherwise noted.

§ 201.0 Foreword; general principles.

(a) A principal function of the Federal Reserve Banks under the law is to provide credit assistance to member banks, through advances and discounts, in order to accommodate commerce, industry, and agriculture. This function is administered in the light of the basic objective which underlies all Federal Reserve credit policy, i.e., the advancement of the public interest by contributing to the greatest extent possible to economic stability and growth.

(b) The Federal Reserve System promotes this objective largely by influencing the availability and cost of credit through action affecting the volume and cost of reserves available to the member banks. Through open market operations and through changes in reserve requirements of member banks, the Federal Reserve may release or absorb reserve funds in accordance with the credit and monetary needs of the economy as a whole. An individual member bank may also obtain reserves by borrowing from its Federal Reserve Bank at a discount rate which is raised or lowered from time to time to adjust to the credit and economic situation. The effects of borrowing from the Federal Reserve Banks by individual member banks are not localized, as such borrowing adds to the supply of reserves of the banking system as a whole. Therefore, use of the borrowing facility by member banks has an important bearing on the effectiveness of System credit policy.

(c) Access to the Federal Reserve discount facilities is granted as a privilege of membership in the Federal Reserve System in the light of the following general guiding principles.