New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter III - SUPERINTENDENT'S REGULATIONS
Subchapter A - BANKING ORGANIZATIONS
Part 322 - Pledge Of Assets And Maintenance Of Assets By Licensed Foreign Banking Corporations In New York
Section 322.2 - Assets that may be deposited; conditions and limitations
Universal Citation: 3 NY Comp Codes Rules and Regs ยง 322.2
Current through Register Vol. 46, No. 12, March 20, 2024
(a) The following categories of assets are eligible for pledge, to the extent they are included on the superintendent's asset pledge list (APL). The APL will be made available to the public by the Banking Department and posted on the Banking Department's website.
(1) Specified assets. Obligations specified
in Banking Law section 202- b(1) (the specified assets).
(2) Permitted assets. Assets permitted as
eligible for pledge (the permitted assets) shall include:
(i) commercial paper, provided such paper is
accorded the highest rating of a rating service designated by the Banking Board
pursuant to section
61.1 of this
Title. In the event that an issue of commercial paper is rated by more than one
designated rating service, it must have the highest rating of each;
(ii) negotiable certificates of deposit
issued by an unaffiliated domestic banking institution or a domestic office of
an unaffiliated foreign banking corporation; and
(iii) bankers' acceptances issued by an
unaffiliated domestic banking institution or a domestic office of an
unaffiliated foreign banking corporation.
(3) Additional assets. Additional assets that
may be included on the superintendent's APL (the additional assets).
Under special circumstances, the superintendent may approve otherwise ineligible assets upon written application by the foreign banking corporation.
(b) Unless the superintendent specifically permits otherwise, the following conditions and limitations shall apply to the asset pledge:
(1) All assets must be payable in the United
States in United States' dollars.
(2) Additional assets may not comprise more
than 50 percent of the foreign banking corporation's total asset pledge
requirement.
(3) For all foreign
banking corporations, additional assets may include assets that have been
accorded an investment grade rating of a rating service designated by the
Banking Board pursuant to section
61.1 of this
Title. In the event that an asset is rated by more than one designated rating
service, it must have received at least an investment grade rating from
each.
(4) No foreign banking
corporation may pledge any obligations issued or guaranteed by an entity
located or domiciled in, or any governmental entity of, the home country of
such foreign banking corporation (same-country obligor).
(5) With respect to any asset, the
superintendent may determine that, for purposes of this Part, such asset shall
be valued at other than face value, or shall be held in such form or subject to
such conditions as the superintendent may prescribe. The superintendent may
expressly disallow one or more otherwise eligible assets, either for all
institutions or for specific institutions. All assets shall be subject to any
additional conditions or limitations as determined by the superintendent with
respect to such assets.
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