Division E — Financial Services and General Government Appropriations Act, 2015
E Financial Services and General Government Appropriations Act, 2015
I Department of the Treasury
102.
103.
104.
105.
106.
107.
108.
109.
110.
111.
112.
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
II Executive office of the president and funds appropriated to the president
201.
202.
203.
204.
205.
206.
207.
III The judiciary
301.
302.
303.
304.
305.
306.
307.
308.
IV District of columbia
V Independent agencies
501.
502.
510.
511.
512.
513.
514.
515.
516.
517.
520.
521.
VI General provisions—this act
601.
602.
603.
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615.
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617.
618.
619.
620.
621.
622.
623.
624.
625.
626.
627.
628.
629.
630.
“(3) Covered depository institution—The term covered depository institution means—
“(A) an insured depository institution, as that term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
“(B) a United States uninsured branch or agency of a foreign bank.”
“(d) Only bona fide hedging and traditional bank activities permitted
“(1) In general—The prohibition in subsection (a) shall not apply to any covered depository institution that limits its swap and security-based swap activities to the following:
“(A) Hedging and other similar risk mitigation activities—Hedging and other similar risk mitigating activities directly related to the covered depository institution's activities.
“(B) Non-structured finance swap activities—Acting as a swaps entity for swaps or security-based swaps other than a structured finance swap.
“(C) Certain structured finance swap activities—Acting as a swaps entity for swaps or security-based swaps that are structured finance swaps, if—
“(i) such structured finance swaps are undertaken for hedging or risk management purposes; or
“(ii) each asset-backed security underlying such structured finance swaps is of a credit quality and of a type or category with respect to which the prudential regulators have jointly adopted rules authorizing swap or security-based swap activity by covered depository institutions.
“(2) Definitions—For purposes of this subsection:
“(A) Structured finance swap—The term structured finance swap means a swap or security-based swap based on an asset-backed security (or group or index primarily comprised of asset-backed securities).
“(B) Asset-backed security—The term asset-backed security has the meaning given such term under section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).”