---
kind: "section"
citation: "12 C.F.R. § 223.56"
title: "12"
number: "223.56"
heading: "What transactions are exempt from the market-terms requirement of section 23B?"
url: "https://uscodex.org/cfr/12/223.56"
---

# §223.56. What transactions are exempt from the market-terms requirement of section 23B?


The following transactions are exempt from the market-terms requirement of [§ 223.51](/cfr/12/223.51.md).

- (a) **Purchases of certain asset-backed commercial paper.** Purchases of asset-backed commercial paper from an affiliated SEC-registered open-end investment company that holds itself out as a money market mutual fund under SEC [Rule 2a-7](/cfr/12/2a-7.md) ([17 CFR 270.2a-7](/cfr/17/270.2a-7.md)), if the member bank:
  - (1) Purchases the asset-backed commercial paper on or after September 19, 2008;
  - (2) Pledges the asset-backed commercial paper to a Federal Reserve Bank to secure financing from the asset-backed commercial paper lending facility (AMLF) established by the Board on September 19, 2008; and
  - (3) Has not been specifically informed by the Board, after consultation with the member bank's appropriate Federal banking agency, that the member bank may not use this exemption.
- (b) [Reserved]

## Notes

### Amendments

[Reg. W, 74 FR 6228, Feb. 6, 2009]

### Authority

Authority: 12 U.S.C. 371c(b)(1)(E), (b)(2)(A), and (f), 371c-1(e), 1828(j), 1468(a), and section 312(b)(2)(A) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5412).

### Source

Source: 67 FR 76604, Dec. 12, 2002, unless otherwise noted.

### Amendments

[Reg. W, 74 FR 6228, Feb. 6, 2009]