---
kind: "section"
citation: "12 C.F.R. § 3.304"
title: "12"
number: "3.304"
heading: "Temporary exclusions from total leverage exposure."
url: "https://uscodex.org/cfr/12/3.304"
---

# §3.304. 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, a national bank or Federal savings association, when calculating on-balance sheet assets as of each day of a reporting quarter for purposes of determining the national bank's or Federal savings association's total leverage exposure under [§ 3.10(d)](/cfr/12/3.10.md?p=d), 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 national bank or Federal savings association must first notify the OCC 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 national bank or Federal savings association 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) **Custody bank.** A custody bank must reduce the amount in [§ 3.10(c)(2)(x)(A)](/cfr/12/3.10.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 [§ 3.173](/cfr/12/3.173.md), a national bank or Federal savings association that is required to make the disclosures pursuant to [§ 3.173](/cfr/12/3.173.md) must exclude the items excluded pursuant to [paragraph (a)](#a) of this section from Table 13 to [§ 3.173](/cfr/12/3.173.md).
- (g) **OCC approval for distributions.** During the calendar quarter beginning on July 1, 2020, and until March 31, 2021, no national bank or Federal savings association 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 OCC approval. When reviewing a request under this [paragraph (g)](#g), the OCC will consider all relevant factors, including whether the distribution would be contrary to the safety and soundness of the national bank or Federal savings association; the nature, purpose, and extent of the request; and the particular circumstances giving rise to the request.

## Notes

### Amendments

[85 FR 32988, June 1, 2020, as amended at 86 FR 731, Jan. 6, 2021]

### Source

Source: 78 FR 62157, 62273, Oct. 11, 2013, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 93a, 161, 1462, 1462a, 1463, 1464, 1818, 1828(n), 1828 note, 1831n note, 1835, 3907, 3909, 5371, 5371 note, 5412(b)(2)(B), and Pub. L. 116-136, 134 Stat. 281.

### Source

Source: 50 FR 10216, Mar. 14, 1985, unless otherwise noted.

### Amendments

[85 FR 32988, June 1, 2020, as amended at 86 FR 731, Jan. 6, 2021]