§ 401.4. Exemption for financial institutions engaged in limited government securities dealer activities.
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/us/cfr/t17/s§ 401.4·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Subject to the requirements of paragraph
(b)of this section, a financial institution shall be exempt from the provisions of sections 15C (a), (b), and
(d)of the Act (15 U.S.C. 78o-5 (a), (b), (d)) and the regulations of this subchapter if its government securities dealer activities are limited to one or more of the following activities:
(1)Sales or purchases in a fiduciary capacity;
(2)The sale and subsequent repurchase and the purchase and subsequent resale of government securities pursuant to a repurchase or reverse repurchase agreement; and
(3)Such other activities as have been exempted by regulation under this subchapter. (b)(1) A financial institution that relies on the exemption contained in paragraph
(a)of this section is required to comply with:
(i)The regulations of part 450 of this chapter concerning custodial holdings of government securities for customers; and
(ii)Section 403.5(d) of this chapter concerning certain repurchase transactions with customers.
(2)A branch or agency of a foreign bank that relies on the exemption contained in paragraph
(a)of this section is in addition required to comply with § 403.5(e) of this chapter.
(c)For the purposes of this section "financial institution" includes an insured credit union, as defined in 12 U.S.C. 1752(7).
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§ 401.4
Exemption for financial institutions engaged in limited government securities dealer activities.
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