Title 31 — Money and FinanceRelease 119-73
§9110 Standards for depository institutions holding securities of a Government-sponsored corporation for customers
Title 31 › Subtitle SUBTITLE VI— - MISCELLANEOUS › Chapter CHAPTER 91— - GOVERNMENT CORPORATIONS › § 9110
Summary
The Secretary must make rules to protect certain government securities when banks and similar places hold them for customers, not for themselves. The rules only apply to depository institutions that are not government securities brokers or dealers. The rules must require that customer securities be kept separate and kept safe, including securities bought or sold under repurchase agreements. Breaking these rules can lead the institution’s regulator—or the National Credit Union Administration for federally insured credit unions—to issue enforcement orders. The rules do not limit any other powers regulators already have. Before making rules, the Secretary must check whether each regulator and the NCUA already have good rules and, if they do, exempt institutions covered by those rules. Definitions: depository institution = banks and similar entities (including some foreign bank branches); government securities broker/dealer and appropriate regulatory agency = as defined in the Securities Exchange Act.
Full Legal Text
Title 31, §9110
Money and Finance — Source: USLM XML via OLRC
(a)The Secretary shall prescribe by regulation standards for the safeguarding and use of obligations that are government securities described in subparagraph (B) or (C) of section 3(a)(42) of the Securities Exchange Act of 1934. Such regulations shall apply only to a depository institution that is not a government securities broker or a government securities dealer and that holds such obligations as fiduciary, custodian, or otherwise for the account of a customer and not for its own account. Such regulations shall provide for the adequate segregation of obligations so held, including obligations which are purchased or sold subject to resale or repurchase.
(b)Violation of a regulation prescribed under subsection (a) shall constitute adequate basis for the issuance of an order under section 5239(a) or (b) of the Revised Statutes (12 U.S.C. 93(a) or (b)), section 8(b) or 8(c) of the Federal Deposit Insurance Act, section 5(d)(2) or 5(d)(3) 11 See References in Text note below. of the Home Owners’ Loan Act of 1933, section 407(e) or 407(f) 1 of the National Housing Act, or section 206(e) or 206(f) of the Federal Credit Union Act. Such an order may be issued with respect to a depository institution by its appropriate regulatory agency and with respect to a federally insured credit union by the National Credit Union Administration.
(c)Nothing in this section shall be construed to affect in any way the powers of such agencies under any other provision of law.
(d)The Secretary shall, prior to adopting regulations under this section, determine with respect to each appropriate regulatory agency and the National Credit Union Administration Board, whether its rules and standards adequately meet the purposes of regulations to be promulgated under this section, and if the Secretary so determines, shall exempt any depository institution subject to such rules or standards from the regulations promulgated under this section.
(e)As used in this subsection—
(1)“depository institution” has the meaning stated in clauses (i) through (vi) of section 19(b)(1)(A) of the Federal Reserve Act and also includes a foreign bank, an agency or branch of a foreign bank, and a commercial lending company owned or controlled by a foreign bank (as such terms are defined in the International Banking Act of 1978).
(2)“government securities broker” has the meaning prescribed in section 3(a)(43) of the Securities Exchange Act of 1934.
(3)“government securities dealer” has the meaning prescribed in section 3(a)(44) of the Securities Exchange Act of 1934.
(4)“appropriate regulatory agency” has the meaning prescribed in section 3(a)(34)(G) of the Securities Exchange Act of 1934.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
section 3(a)(34)(G), (42)(B), (C), (43), (44) of the Securities Exchange Act of 1934, referred to in subsecs. (a) and (e)(2)–(4), is classified to section 78c(a)(34)(G), (42)(B), (C), (43), (44) of Title 15, Commerce and Trade. section 8(b) or 8(c) of the Federal Deposit Insurance Act, referred to in subsec. (b), is classified to section 1818(b), (c) of Title 12, Banks and Banking. section 5(d)(2) or 5(d)(3) of the Home Owners’ Loan Act of 1933, referred to in subsec. (b), is classified to section 1464(d)(2), (3) of Title 12, but was amended generally by Pub. L. 101–73, title III, § 301, Aug. 9, 1989, 103 Stat. 282, and no longer relates to issuance of orders. See section 1464(d)(1) of Title 12. section 407 of the National Housing Act, referred to in subsec. (b), which was classified to section 1730 of Title 12, was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363. section 206(e) or 206(f) of the Federal Credit Union Act, referred to in subsec. (b), is classified to section 1786(e), (f) of Title 12. Clauses (i) through (vi) of subparagraph [section] 19(b)(1)(A) of the Federal Reserve Act, referred to in subsec. (e)(1), are classified to section 461(b)(1)(A)(i) to (vi) of Title 12. The International Banking Act of 1978, referred to in subsec. (e)(1), is Pub. L. 95–369, Sept. 17, 1978, 92 Stat. 607, which enacted chapter 32 (§ 3101 et seq.) and section 347d and 611a of Title 12, Banks and Banking, amended section 72, 378, 614, 615, 618, 619, 1813, 1815, 1817, 1818, 1820, 1821, 1822, 1823, 1828, 1829b, 1831b, and 1841 of Title 12, and enacted provisions set out as notes under section 36, 247, 601, 611a, and 3101 of Title 12. For complete classification of this Act to the Code, see
Short Title
note set out under section 3101 of Title 12 and Tables.
Amendments
1994—Subsec. (e)(1). Pub. L. 103–272 substituted “section” for “subparagraph”.
Statutory Notes and Related Subsidiaries
Effective Date
Promulgation of
Regulations
Section effective 270 days after Oct. 28, 1986, except that the Secretary of the Treasury and each appropriate regulatory agency shall publish for notice and public comment within 120 days after Oct. 28, 1986, initial implementing
Regulations
to become effective as temporary
Regulations
210 days after Oct. 28, 1986, and as final
Regulations
not later than 270 days after Oct. 28, 1986, see title IV of Pub. L. 99–571, set out as a note under section 78o–5 of Title 15, Commerce and Trade. Transitional and
Savings Provision
sFor transitional and
Savings Provision
s of Pub. L. 99–571, see section 301 of Pub. L. 99–571, set out as a note under section 78o–5 of Title 15, Commerce and Trade.
Reference
Citations & Metadata
Citation
31 U.S.C. § 9110
Title 31 — Money and Finance
Last Updated
Apr 6, 2026
Release point: 119-73