§4808 Revising Regulatory Requirements for Transfers of All Types of Assets with Recourse

Summary

Starting September 23, 1994, each appropriate Federal banking agency must, within 180 days, review its rules about transfers of assets with recourse by insured depository institutions. The agency must work with the other Federal banking agencies and create and adopt new rules that match the real credit risk of those transfers before the 180 days end. After that period, the risk-based capital a bank must hold for assets transferred with recourse cannot be more than the maximum recourse the bank is contractually liable for. An agency can require more capital if it decides higher amounts are needed for safety and soundness. These rules do not override section 1835(b) of this title. The terms “appropriate Federal banking agency,” “Federal banking agency,” and “insured depository institution” have the meanings given in section 1813 of this title.