---
kind: "section"
citation: "12 C.F.R. § 324.304"
title: "12"
number: "324.304"
heading: "Temporary exclusions from total leverage exposure."
url: "https://uscodex.org/cfr/12/324.304"
---

# §324.304. 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, an FDIC-supervised institution, when calculating on-balance sheet assets as of each day of a reporting quarter for purposes of determining the FDIC-supervised institution's total leverage exposure under [§ 324.10(c)](/cfr/12/324.10.md?p=c), 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, an FDIC-supervised institution must first notify the appropriate regional director of the FDIC Division of Risk Management Supervision 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 FDIC-supervised institution 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 [§ 324.10(c)(2)(x)(A)](/cfr/12/324.10.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 [§ 324.173](/cfr/12/324.173.md), an FDIC-supervised institution that is required to make the disclosures pursuant to [§ 324.173](/cfr/12/324.173.md) must exclude the items excluded pursuant to [paragraph (a)](#a) of this section from Table 13 to [§ 324.173](/cfr/12/324.173.md).
- (g) **FDIC approval for distributions.** During the calendar quarter beginning on July 1, 2020, and until March 31, 2021, no FDIC-supervised institution 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 FDIC approval. When reviewing a request under this [paragraph (g)](#g), the FDIC will consider all relevant factors, including whether the distribution would be contrary to the safety and soundness of the FDIC-supervised institution; the nature, purpose, and extent of the request; and the particular circumstances giving rise to the request.

## Notes

### Amendments

[85 FR 32990, June 1, 2020, as amended at 86 FR 745, Jan. 6, 2021]

### Authority

Authority: 12 U.S.C. 1815(a), 1815(b), 1816, 1818(a), 1818(b), 1818(c), 1818(t), 1819(Tenth), 1828(c), 1828(d), 1828(i), 1828(n), 1828(o), 1831o, 1835, 3907, 3909, 4808; 5371; 5412; Pub. L. 102-233, 105 Stat. 1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. L. 102-242, 105 Stat. 2236, 2355, as amended by Pub. L. 103-325, 108 Stat. 2160, 2233 (12 U.S.C. 1828 note); Pub. L. 102-242, 105 Stat. 2236, 2386, as amended by Pub. L. 102-550, 106 Stat. 3672, 4089 (12 U.S.C. 1828 note); Pub. L. 111-203, 124 Stat. 1376, 1887 (15 U.S.C. 78o-7 note), Pub. L. 115-174; section 4014 § 201, Pub. L. 116-136, 134 Stat. 281 (15 U.S.C. 9052).

### Source

Source: 78 FR 55471, Sept. 10, 2013, unless otherwise noted.

### Amendments

[85 FR 32990, June 1, 2020, as amended at 86 FR 745, Jan. 6, 2021]