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Title 31 — Money and FinanceRelease 119-73not60

§9110 Standards for Depository Institutions Holding Securities of a Government-sponsored Corporation for Customers

Title 31 › Subtitle SUBTITLE VI— MISCELLANEOUS › Chapter 91— GOVERNMENT CORPORATIONS › § 9110

Last updated Apr 5, 2026|Official source

Summary

The Secretary must write rules to protect and control certain government securities when a bank or similar institution holds them for a customer and not for itself. The rules only apply to institutions that are not government-securities brokers or dealers. The rules must make the institution keep those customer securities separate and properly tracked, even when they are bought or sold under repurchase or resale agreements. Breaking the rules can lead to enforcement orders by the institution’s bank regulator or, for federally insured credit unions, by the National Credit Union Administration. Before making rules, the Secretary must check whether each regulator (and the NCUA Board) already has good enough standards and can exempt institutions that are already covered. Definitions (short): depository institution — the usual banks and similar lenders, and also foreign banks, their branches or agencies, and related foreign-owned lending firms; government securities broker — a broker in government securities as defined in the Securities Exchange Act of 1934; government securities dealer — a dealer in government securities as defined in that Act; appropriate regulatory agency — the agency named in the Securities Exchange Act of 1934 that oversees the institution.

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 5, 2026

Release point: 119-73not60