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

Summary

Within the 180-day period starting September 23, 1994, each appropriate Federal banking agency must review its rules about transfers of assets with recourse by insured banks. The agencies must work together, write new rules that match the banks’ real credit exposure from those transfers, and put the new rules in place before that 180-day period ends. After that period, the risk-based capital a bank must hold for assets transferred with recourse cannot be more than the maximum recourse amount the bank is contractually liable for. An agency may still require more capital if it decides that higher capital is needed for safety and soundness. This does not override section 1835(b). The terms “appropriate Federal banking agency,” “Federal banking agency,” and “insured depository institution” have the same meanings as in section 1813.