Sec. 605. Definitions
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For purposes of this title: The term appropriate Federal banking agency — has the meaning given such term under section 3 of the Federal Deposit Insurance Act; and means the National Credit Union Administration, in the case of an insured credit union. The term banking organization means— an insured depository institution; an insured credit union; a depository institution holding company; a company that is treated as a bank holding company for purposes of section 8 of the International Banking Act; and a U.S. intermediate holding company established by a foreign banking organization pursuant to section 252.153 of title 12, Code of Federal Regulations.
The term foreign exchange swap has the meaning given that term under section 1a of the Commodity Exchange Act. The term insured credit union has the meaning given that term under section 101 of the Federal Credit Union Act. The term leverage exposure — with respect to a banking organization other than an insured credit union or a traditional banking organization, has the meaning given the term total leverage exposure under section 3.10(c)(4)(ii), 217.10(c)(4), or 324.10(c)(4) of title 12, Code of Federal Regulations, as applicable, as in effect on the date of the enactment of this Act; with respect to a traditional banking organization other than an insured credit union, means total assets (minus any items deducted from common equity tier 1 capital) as calculated in accordance with generally accepted accounting principles and as reported on the traditional banking organization’s applicable regulatory filing with the banking organization’s appropriate Federal banking agency; and with respect to a banking organization that is an insured credit union, has the meaning given the term total assets under section 702.2 of title 12, Code of Federal Regulations, as in effect on the date of the enactment of this Act.
With respect to a banking organization, the term average leverage ratio means the average of the banking organization’s quarterly leverage ratios for each of the most recently completed four calendar quarters. With respect to a banking organization and a calendar quarter, the term quarterly leverage ratio means the organization’s tangible equity divided by the organization’s leverage exposure, expressed as a percentage, on the last day of such quarter. The term NACR means— book equity less nonperforming assets plus loan loss reserves, divided by total banking organization assets.
The term nonperforming assets means— 20 percent of assets that are past due 30 to 89 days, plus 50 percent of assets that are past due 90 days or more, plus 100 percent of nonaccrual assets and other real estate owned. The term qualifying banking organization means a banking organization that has made an election under section 601 and with respect to which such election is in effect. The term security-based swap has the meaning given that term under section 3 of the Securities Exchange Act of 1934.
The term swap has the meaning given that term under section 1a of the Commodity Exchange Act. The term tangible equity — with respect to a banking organization other than a credit union, means the sum of— common equity tier 1 capital; additional tier 1 capital consisting of instruments issued on or before the date of enactment of this Act; and with respect to a depository institution holding company that had less than $15,000,000,000 in total consolidated assets as of December 31, 2009, or March 31, 2010, or a banking organization that was a mutual holding company as of May 19, 2010, trust preferred securities issued prior to May 19, 2010, to the extent such organization was permitted, as of the date of the enactment of this Act, to consider such securities as tier 1 capital under existing regulations of the appropriate Federal banking agency; and with respect to a banking organization that is a credit union, has the meaning given the term net worth under section 702.2 of title 12, Code of Federal Regulations, as in effect on the date of the enactment of this Act.
The term traditional banking organization means a banking organization that— has zero trading assets and zero trading liabilities; does not engage in swaps or security-based swaps, other than swaps or security-based swaps referencing interest rates or foreign exchange swaps; and has a total notional exposure of swaps and security-based swaps of not more than $8,000,000,000. The terms insured depository institution and depository institution holding company have the meaning given those terms, respectively, under section 3 of the Federal Deposit Insurance Act.
With respect to a banking organization, the terms additional tier 1 capital and common equity tier 1 capital have the meaning given such terms, respectively, under section 3.20, 217.20, or 324.20 of title 12, Code of Federal Regulations, as applicable, as in effect on the date of the enactment of this Act.