---
kind: "section"
citation: "12 C.F.R. § 217.303"
title: "12"
number: "217.303"
heading: "Temporary exclusions from total leverage exposure."
url: "https://uscodex.org/cfr/12/217.303"
---

# §217.303. Temporary exclusions from total leverage exposure.

- (a) **In general.** Subject to [paragraphs (b) through (g)](#b..g) of this section and notwithstanding any other requirement in this part, when calculating on-balance sheet assets as of each day of a reporting quarter for purposes of determining the Board-regulated institution's total leverage exposure under [§ 217.10(c)](/cfr/12/217.10.md?p=c), a Board-regulated institution that is a depository institution holding company or a U.S. intermediate holding company must, and a Board-regulated institution that is a state member bank may, exclude the balance sheet carrying value of the following items:
  - (1) U.S. Treasury securities; and
  - (2) **Funds on deposit at a Federal Reserve Bank.**
- (b) **Opt-in period.** Before applying the relief provided in [paragraph (a)](#a) of this section, a state member bank must first notify the Board before July 1, 2020.
- (c) **Calculation of relief.** When calculating on-balance sheet assets as of each day of a reporting quarter, the relief provided in [paragraph (a)](#a) of this section applies from the beginning of the reporting quarter in which the state member bank filed an opt-in notice through the termination date specified in [paragraph (d)](#d) of this section.
- (d) **Termination of exclusions.** This section shall cease to be effective after the reporting period that ends March 31, 2021.
- (e) **Custodial banking organizations.** A custodial banking organization must reduce the amount in [§ 217.10(c)(2)(x)(A)](/cfr/12/217.10.md?p=c-2-x-A) (to no less than zero) by any amount excluded under [paragraph (a)(2)](#a-2) of this section.
- (f) **Disclosure.** Notwithstanding Table 13 to [§ 217.173](/cfr/12/217.173.md), a Board-regulated institution that is required to make the disclosures pursuant to [§ 217.173](/cfr/12/217.173.md) must exclude the items excluded pursuant to [paragraph (a)](#a) of this section from Table 13 to [§ 217.173](/cfr/12/217.173.md).
- (g) **Board approval for distributions.** During the calendar quarter beginning on July 1, 2020, and until March 31, 2021, no state member bank that has opted in to the relief provided under [paragraph (a)](#a) of this section may make a distribution, or create an obligation to make such a distribution, without prior Board approval. When reviewing a request under this [paragraph (g)](#g), the Board will consider all relevant factors, including whether the distribution would be contrary to the safety and soundness of the state member bank; the nature, purpose, and extent of the request; and the particular circumstances giving rise to the request.

## Notes

### Amendments

[Reg. Q, 85 FR 32989, June 1, 2020, as amended at 86 FR 738, Jan. 6, 2021]

### Authority

Authority: 12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 1818, 1828, 1831n, 1831o, 1831p-1, 1831w, 1835, 1844(b), 1851, 3904, 3906-3909, 4808, 5365, 5368, 5371, 5371 note, and sec. 4012, Pub. L. 116-136, 134 Stat. 281.

### Source

Source: Reg. Q, 78 FR 62157, 62285, Oct. 11, 2013, unless otherwise noted.

### Amendments

[Reg. Q, 85 FR 32989, June 1, 2020, as amended at 86 FR 738, Jan. 6, 2021]