R. Kinney Williams - Yennik, Inc.
R. Kinney Williams
Yennik, Inc.

The Community Banker
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Summary of Federal Reserve Regulations

Extensions of Credit by Federal Reserve Banks
Governs borrowing by depository institutions at the Federal Reserve discount window

Equal Credit Opportunity
Prohibits lenders from discriminating against credit applicants, establishes guidelines for gathering and evaluating credit information, and requires written notification when credit is denied

Home Mortgage Disclosure
Requires certain mortgage lenders to disclose data regarding their lending patterns  

Reserve Requirements of Depository Institutions
Sets uniform requirements for all depository institutions to maintain reserve balances either with their Federal Reserve Bank or as cash in their vaults

Electronic Funds Transfers
Establishes the rights, liabilities, and responsibilities of parties in electronic funds transfers and protects consumers when they use such systems

Limitations on Interbank Liabilities
Prescribes standards to limit the risks posed by obligations of insured depository institutions to other depository institutions

Securities Credit by Persons other than Banks, Brokers, or Dealers
Governs extension of credit by parties other than banks, brokers, or dealers to finance the purchase or the carrying of margin securities; see also regulations T, U, and X

Membership of State Banking Institutions in the Federal Reserve System
Defines the requirements for membership by state-chartered banks in the Federal Reserve System and establishes minimum levels for the ratio of capital to assets to be maintained by state member banks

Issue and Cancellation of Capital Stock of Federal Reserve Banks
Sets forth stock-subscription requirements for all banks joining the Federal Reserve System

Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire
Establishes procedures, duties, and responsibilities among (1) Federal Reserve Banks, (2) the senders and payors of checks and other items, and (3) the senders and recipients of wire transfers of funds

International Banking Operations
Governs the international banking operations of U.S. banking organizations and the operations of foreign banks in the United States

Management Official Interlocks
Restricts the management relationships that an official in one depository institution may have with other depository institutions

Consumer Leasing
Implements the consumer leasing provisions of the Truth in Lending Act by requiring meaningful disclosure of leasing terms

Relations with Foreign Banks and Bankers
Governs relationships and transactions between Federal Reserve Banks and foreign banks, bankers, or governments

Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks
Restricts credit that a member bank may extend to its executive officers, directors, and principal shareholders and their related interests

Privacy of Consumer Financial Information
Implements the provisions of the Gramm-Leach-Bliley Act that prohibit a financial institution from disclosing nonpublic personal information to third parties that are not affiliated with the financial institution

Prohibition against Payment of Interest on Demand Deposits
Prohibits member banks from paying interest on demand deposits (for example, checking accounts)

Relationships with Dealers in Securities under Section 32 of the Banking Act of 1933
Restricts employment relations between securities dealers and member banks to avoid conflict of interest, collusion, or undue influence on member bank investment policies or advice to customers

Reimbursement to Financial Institutions for Assembling or Providing Financial Records
Establishes rates and conditions for reimbursement to financial institutions for providing customer records to a government authority

Credit by Brokers and Dealers
Governs extension of credit by securities brokers and dealers, including all members of national securities exchanges; see also regulations G, U, and X

Credit by Banks for Purchasing or Carrying Margin Stocks
Governs extension of credit by banks to finance the purchase or the carrying of margin securities; see also regulations G, T, and X

Loan Guarantees for Defense Production (Dormant)
Facilitates the financing of contracts deemed necessary to national defense production

Transactions between Member Banks and Their Affiliates
Implements sections 23A and 23B of the Federal Reserve Act, which establish certain restrictions on and requirements for transactions between a member bank and its affiliates

Borrowers of Securities Credit
Extends to borrowers who are subject to U.S. laws the provisions of regulations G, T, and U for obtaining credit within or outside the United States for the purpose of purchasing securities

Bank Holding Companies and Change in Bank Control
Governs the bank and nonbank expansion of bank holding companies, the divestiture of impermissible nonbank interests, and the acquisition of a bank by individuals

Truth in Lending
Prescribes uniform methods for computing the cost of credit, for disclosing credit terms, and for resolving errors on certain types of credit accounts

Unfair or Deceptive Acts or Practices
Establishes consumer complaint procedures and defines unfair or deceptive practices in extending credit to consumers

Community Reinvestment
Implements the Community Reinvestment Act and encourages banks to help meet the credit needs of their communities

Availability of Funds and Collection of Checks
Governs the availability of funds deposited in checking accounts and the collection and return of checks

Truth in Savings
Requires depository institutions to provide disclosures to enable consumers to make meaningful comparisons of deposit accounts

Netting Eligibility for Financial Institutions
Defines financial institutions to be covered by statutory provisions regarding netting contracts--that is, contracts in which the parties agree to pay or receive the net, rather than the gross, payment due

Obtaining and Using Medical Information in Connection with Credit
Creates exceptions to the statutory prohibition against obtaining or using medical information in connection with determining eligibility for credit

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The above information was obtained from The Board of Governor of the Federal Reserve System at http://www.federalreserve.gov/regulations/default.htm


Company Information
Yennik, Inc.

4409 101st Street
Lubbock, Texas 79424
Office 806-798-7119


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