cfr_sections
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57 rows where part_number = 255 sorted by section_id
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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
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| 17:17:5.0.1.1.14.1.17.1 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | A | Subpart A—Authority and Definitions | § 255.1 Authority, purpose, scope, and relationship to other authorities. | SEC | [79 FR 5805, Jan. 31, 2014, as amended at 84 FR 35022, July 22, 2019] | (a) Authority. This part is issued by the SEC under section 13 of the Bank Holding Company Act of 1956, as amended (12 U.S.C. 1851). (b) Purpose. Section 13 of the Bank Holding Company Act establishes prohibitions and restrictions on proprietary trading and investments in or relationships with covered funds by certain banking entities, including registered broker-dealers, registered investment advisers, and registered security-based swap dealers, among others identified in section 2(12)(B) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (12 U.S.C. 5301(12)(B)). This part implements section 13 of the Bank Holding Company Act by defining terms used in the statute and related terms, establishing prohibitions and restrictions on proprietary trading and investments in or relationships with covered funds, and explaining the statute's requirements. (c) Scope. This part implements section 13 of the Bank Holding Company Act with respect to banking entities for which the SEC is the primary financial regulatory agency, as defined in this part, but does not include such entities to the extent they are not within the definition of banking entity in § 255.2(c). (d) Relationship to other authorities. Except as otherwise provided under section 13 of the Bank Holding Company Act, and notwithstanding any other provision of law, the prohibitions and restrictions under section 13 of Bank Holding Company Act shall apply to the activities and investments of a banking entity identified in paragraph (c) of this section, even if such activities and investments are authorized for the banking entity under other applicable provisions of law. (e) Preservation of authority. Nothing in this part limits in any way the authority of the SEC to impose on a banking entity identified in paragraph (c) of this section additional requirements or restrictions with respect to any activity, investment, or relationship covered under section 13 of the Bank Holding Company Act or this part, or additional penalties for v… | ||||
| 17:17:5.0.1.1.14.1.17.2 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | A | Subpart A—Authority and Definitions | § 255.2 Definitions. | SEC | [84 FR 62237, Nov. 14, 2019] | Unless otherwise specified, for purposes of this part: (a) Affiliate has the same meaning as in section 2(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(k)). (b) Bank holding company has the same meaning as in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841). (c) Banking entity. (1) Except as provided in paragraph (c)(2) of this section, banking entity means: (i) Any insured depository institution; (ii) Any company that controls an insured depository institution; (iii) Any company that is treated as a bank holding company for purposes of section 8 of the International Banking Act of 1978 (12 U.S.C. 3106); and (iv) Any affiliate or subsidiary of any entity described in paragraph (c)(1)(i), (ii), or (iii) of this section. (2) Banking entity does not include: (i) A covered fund that is not itself a banking entity under paragraph (c)(1)(i), (ii), or (iii) of this section; (ii) A portfolio company held under the authority contained in section 4(k)(4)(H) or (I) of the BHC Act (12 U.S.C. 1843(k)(4)(H), (I)), or any portfolio concern, as defined under 13 CFR 107.50, that is controlled by a small business investment company, as defined in section 103(3) of the Small Business Investment Act of 1958 (15 U.S.C. 662), so long as the portfolio company or portfolio concern is not itself a banking entity under paragraph (c)(1)(i), (ii), or (iii) of this section; or (iii) The FDIC acting in its corporate capacity or as conservator or receiver under the Federal Deposit Insurance Act or Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act. (d) Board means the Board of Governors of the Federal Reserve System. (e) CFTC means the Commodity Futures Trading Commission. (f) Dealer has the same meaning as in section 3(a)(5) of the Exchange Act (15 U.S.C. 78c(a)(5)). (g) Depository institution has the same meaning as in section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)). (h) Derivative. (1) Except as provided in paragraph (h)(2) of this … | ||||
| 17:17:5.0.1.1.14.2.17.1 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | B | Subpart B—Proprietary Trading | § 255.3 Prohibition on proprietary trading. | SEC | [79 FR 5779, 5805, Jan. 31, 2014, as amended at 84 FR 62239, Nov. 14, 2019] | (a) Prohibition. Except as otherwise provided in this subpart, a banking entity may not engage in proprietary trading. Proprietary trading means engaging as principal for the trading account of the banking entity in any purchase or sale of one or more financial instruments. (b) Definition of trading account. (1) Trading account. Trading account means: (i) Any account that is used by a banking entity to purchase or sell one or more financial instruments principally for the purpose of short-term resale, benefitting from actual or expected short-term price movements, realizing short-term arbitrage profits, or hedging one or more of the positions resulting from the purchases or sales of financial instruments described in this paragraph; (ii) Any account that is used by a banking entity to purchase or sell one or more financial instruments that are both market risk capital rule covered positions and trading positions (or hedges of other market risk capital rule covered positions), if the banking entity, or any affiliate with which the banking entity is consolidated for regulatory reporting purposes, calculates risk-based capital ratios under the market risk capital rule; or (iii) Any account that is used by a banking entity to purchase or sell one or more financial instruments, if the banking entity: (A) Is licensed or registered, or is required to be licensed or registered, to engage in the business of a dealer, swap dealer, or security-based swap dealer, to the extent the instrument is purchased or sold in connection with the activities that require the banking entity to be licensed or registered as such; or (B) Is engaged in the business of a dealer, swap dealer, or security-based swap dealer outside of the United States, to the extent the instrument is purchased or sold in connection with the activities of such business. (2) Trading account application for certain banking entities. (i) A banking entity that is subject to paragraph (b)(1)(ii) of this section in determining the scope of its trading … | ||||
| 17:17:5.0.1.1.14.2.17.2 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | B | Subpart B—Proprietary Trading | § 255.4 Permitted underwriting and market making-related activities. | SEC | [84 FR 62241, Nov. 14, 2019] | (a) Underwriting activities —(1) Permitted underwriting activities. The prohibition contained in § 255.3(a) does not apply to a banking entity's underwriting activities conducted in accordance with this paragraph (a). (2) Requirements. The underwriting activities of a banking entity are permitted under paragraph (a)(1) of this section only if: (i) The banking entity is acting as an underwriter for a distribution of securities and the trading desk's underwriting position is related to such distribution; (ii)(A) The amount and type of the securities in the trading desk's underwriting position are designed not to exceed the reasonably expected near term demands of clients, customers, or counterparties, taking into account the liquidity, maturity, and depth of the market for the relevant types of securities; and (B) Reasonable efforts are made to sell or otherwise reduce the underwriting position within a reasonable period, taking into account the liquidity, maturity, and depth of the market for the relevant types of securities; (iii) In the case of a banking entity with significant trading assets and liabilities, the banking entity has established and implements, maintains, and enforces an internal compliance program required by subpart D of this part that is reasonably designed to ensure the banking entity's compliance with the requirements of paragraph (a) of this section, including reasonably designed written policies and procedures, internal controls, analysis and independent testing identifying and addressing: (A) The products, instruments or exposures each trading desk may purchase, sell, or manage as part of its underwriting activities; (B) Limits for each trading desk, in accordance with paragraph (a)(2)(ii)(A) of this section; (C) Written authorization procedures, including escalation procedures that require review and approval of any trade that would exceed a trading desk's limit(s), demonstrable analysis of the basis for any temporary or permanent increase to a trading desk's limit(s), and in… | ||||
| 17:17:5.0.1.1.14.2.17.3 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | B | Subpart B—Proprietary Trading | § 255.5 Permitted risk-mitigating hedging activities. | SEC | [79 FR 5779, 5805, Jan. 31, 2014, as amended at 84 FR 62243, Nov. 14, 2019] | (a) Permitted risk-mitigating hedging activities. The prohibition contained in § 255.3(a) does not apply to the risk-mitigating hedging activities of a banking entity in connection with and related to individual or aggregated positions, contracts, or other holdings of the banking entity and designed to reduce the specific risks to the banking entity in connection with and related to such positions, contracts, or other holdings. (b) Requirements. (1) The risk-mitigating hedging activities of a banking entity that has significant trading assets and liabilities are permitted under paragraph (a) of this section only if: (i) The banking entity has established and implements, maintains and enforces an internal compliance program required by subpart D of this part that is reasonably designed to ensure the banking entity's compliance with the requirements of this section, including: (A) Reasonably designed written policies and procedures regarding the positions, techniques and strategies that may be used for hedging, including documentation indicating what positions, contracts or other holdings a particular trading desk may use in its risk-mitigating hedging activities, as well as position and aging limits with respect to such positions, contracts or other holdings; (B) Internal controls and ongoing monitoring, management, and authorization procedures, including relevant escalation procedures; and (C) The conduct of analysis and independent testing designed to ensure that the positions, techniques and strategies that may be used for hedging may reasonably be expected to reduce or otherwise significantly mitigate the specific, identifiable risk(s) being hedged; (ii) The risk-mitigating hedging activity: (A) Is conducted in accordance with the written policies, procedures, and internal controls required under this section; (B) At the inception of the hedging activity, including, without limitation, any adjustments to the hedging activity, is designed to reduce or otherwise significantly mitigate one or more spe… | ||||
| 17:17:5.0.1.1.14.2.17.4 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | B | Subpart B—Proprietary Trading | § 255.6 Other permitted proprietary trading activities. | SEC | [79 FR 5779, 5805, Jan. 31, 2014, as amended at 84 FR 62244, Nov. 14, 2019; 85 FR 46522, July 31, 2020] | (a) Permitted trading in domestic government obligations. The prohibition contained in § 255.3(a) does not apply to the purchase or sale by a banking entity of a financial instrument that is: (1) An obligation of, or issued or guaranteed by, the United States; (2) An obligation, participation, or other instrument of, or issued or guaranteed by, an agency of the United States, the Government National Mortgage Association, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, a Federal Home Loan Bank, the Federal Agricultural Mortgage Corporation or a Farm Credit System institution chartered under and subject to the provisions of the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq. ); (3) An obligation of any State or any political subdivision thereof, including any municipal security; or (4) An obligation of the FDIC, or any entity formed by or on behalf of the FDIC for purpose of facilitating the disposal of assets acquired or held by the FDIC in its corporate capacity or as conservator or receiver under the Federal Deposit Insurance Act or Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act. (b) Permitted trading in foreign government obligations —(1) Affiliates of foreign banking entities in the United States. The prohibition contained in § 255.3(a) does not apply to the purchase or sale of a financial instrument that is an obligation of, or issued or guaranteed by, a foreign sovereign (including any multinational central bank of which the foreign sovereign is a member), or any agency or political subdivision of such foreign sovereign, by a banking entity, so long as: (i) The banking entity is organized under or is directly or indirectly controlled by a banking entity that is organized under the laws of a foreign sovereign and is not directly or indirectly controlled by a top-tier banking entity that is organized under the laws of the United States; (ii) The financial instrument is an obligation of, or issued or guaranteed by, the foreign sovere… | ||||
| 17:17:5.0.1.1.14.2.17.5 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | B | Subpart B—Proprietary Trading | § 255.7 Limitations on permitted proprietary trading activities. | SEC | (a) No transaction, class of transactions, or activity may be deemed permissible under §§ 255.4 through 255.6 if the transaction, class of transactions, or activity would: (1) Involve or result in a material conflict of interest between the banking entity and its clients, customers, or counterparties; (2) Result, directly or indirectly, in a material exposure by the banking entity to a high-risk asset or a high-risk trading strategy; or (3) Pose a threat to the safety and soundness of the banking entity or to the financial stability of the United States. (b) Definition of material conflict of interest. (1) For purposes of this section, a material conflict of interest between a banking entity and its clients, customers, or counterparties exists if the banking entity engages in any transaction, class of transactions, or activity that would involve or result in the banking entity's interests being materially adverse to the interests of its client, customer, or counterparty with respect to such transaction, class of transactions, or activity, and the banking entity has not taken at least one of the actions in paragraph (b)(2) of this section. (2) Prior to effecting the specific transaction or class or type of transactions, or engaging in the specific activity, the banking entity: (i) Timely and effective disclosure. (A) Has made clear, timely, and effective disclosure of the conflict of interest, together with other necessary information, in reasonable detail and in a manner sufficient to permit a reasonable client, customer, or counterparty to meaningfully understand the conflict of interest; and (B) Such disclosure is made in a manner that provides the client, customer, or counterparty the opportunity to negate, or substantially mitigate, any materially adverse effect on the client, customer, or counterparty created by the conflict of interest; or (ii) Information barriers. Has established, maintained, and enforced information barriers that are memorialized in written policies and procedures, such as … | |||||
| 17:17:5.0.1.1.14.2.17.6 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | B | Subpart B—Proprietary Trading | §§ 255.8-255.9 [Reserved] | SEC | ||||||
| 17:17:5.0.1.1.14.3.17.1 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | C | Subpart C—Covered Funds Activities and Investments | § 255.10 Prohibition on acquiring or retaining an ownership interest in and having certain relationships with a covered fund. | SEC | [79 FR 5779, 5805, Jan. 31, 2014, as amended at 84 FR 35022, July 22, 2019; 84 FR 62244, Nov. 14, 2019; 85 FR 46523, July 31, 2020] | (a) Prohibition. (1) Except as otherwise provided in this subpart, a banking entity may not, as principal, directly or indirectly, acquire or retain any ownership interest in or sponsor a covered fund. (2) Paragraph (a)(1) of this section does not include acquiring or retaining an ownership interest in a covered fund by a banking entity: (i) Acting solely as agent, broker, or custodian, so long as; (A) The activity is conducted for the account of, or on behalf of, a customer; and (B) The banking entity and its affiliates do not have or retain beneficial ownership of such ownership interest; (ii) Through a deferred compensation, stock-bonus, profit-sharing, or pension plan of the banking entity (or an affiliate thereof) that is established and administered in accordance with the law of the United States or a foreign sovereign, if the ownership interest is held or controlled directly or indirectly by the banking entity as trustee for the benefit of persons who are or were employees of the banking entity (or an affiliate thereof); (iii) In the ordinary course of collecting a debt previously contracted in good faith, provided that the banking entity divests the ownership interest as soon as practicable, and in no event may the banking entity retain such ownership interest for longer than such period permitted by the SEC; or (iv) On behalf of customers as trustee or in a similar fiduciary capacity for a customer that is not a covered fund, so long as: (A) The activity is conducted for the account of, or on behalf of, the customer; and (B) The banking entity and its affiliates do not have or retain beneficial ownership of such ownership interest. (b) Definition of covered fund. (1) Except as provided in paragraph (c) of this section, covered fund means: (i) An issuer that would be an investment company, as defined in the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq. ), but for section 3(c)(1) or 3(c)(7) of that Act (15 U.S.C. 80a-3(c)(1) or (7)); (ii) Any commodity pool under section 1a(10)… | ||||
| 17:17:5.0.1.1.14.3.17.2 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | C | Subpart C—Covered Funds Activities and Investments | § 255.11 Permitted organizing and offering, underwriting, and market making with respect to a covered fund. | SEC | [79 FR 5779, 5805, Jan. 31, 2014, as amended at 84 FR 35022, July 22, 2019; 84 FR 62244, Nov. 14, 2019] | (a) Organizing and offering a covered fund in general. Notwithstanding § 255.10(a) of this subpart, a banking entity is not prohibited from acquiring or retaining an ownership interest in, or acting as sponsor to, a covered fund in connection with, directly or indirectly, organizing and offering a covered fund, including serving as a general partner, managing member, trustee, or commodity pool operator of the covered fund and in any manner selecting or controlling (or having employees, officers, directors, or agents who constitute) a majority of the directors, trustees, or management of the covered fund, including any necessary expenses for the foregoing, only if: (1) The banking entity (or an affiliate thereof) provides bona fide trust, fiduciary, investment advisory, or commodity trading advisory services; (2) The covered fund is organized and offered only in connection with the provision of bona fide trust, fiduciary, investment advisory, or commodity trading advisory services and only to persons that are customers of such services of the banking entity (or an affiliate thereof), pursuant to a written plan or similar documentation outlining how the banking entity or such affiliate intends to provide advisory or similar services to its customers through organizing and offering such fund; (3) The banking entity and its affiliates do not acquire or retain an ownership interest in the covered fund except as permitted under § 255.12 of this subpart; (4) The banking entity and its affiliates comply with the requirements of § 255.14 of this subpart; (5) The banking entity and its affiliates do not, directly or indirectly, guarantee, assume, or otherwise insure the obligations or performance of the covered fund or of any covered fund in which such covered fund invests; (6) The covered fund, for corporate, marketing, promotional, or other purposes: (i) Does not share the same name or a variation of the same name with the banking entity (or an affiliate thereof) except that a covered fund may share the same… | ||||
| 17:17:5.0.1.1.14.3.17.3 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | C | Subpart C—Covered Funds Activities and Investments | § 255.12 Permitted investment in a covered fund. | SEC | [79 FR 5779, 5805, Jan. 31, 2014, as amended at 84 FR 62244, Nov. 14, 2019; 85 FR 46527, July 31, 2020] | (a) Authority and limitations on permitted investments in covered funds. (1) Notwithstanding the prohibition contained in § 255.10(a) of this subpart, a banking entity may acquire and retain an ownership interest in a covered fund that the banking entity or an affiliate thereof organizes and offers pursuant to § 255.11, for the purposes of: (i) Establishment. Establishing the fund and providing the fund with sufficient initial equity for investment to permit the fund to attract unaffiliated investors, subject to the limits contained in paragraphs (a)(2)(i) and (iii) of this section; or (ii) De minimis investment. Making and retaining an investment in the covered fund subject to the limits contained in paragraphs (a)(2)(ii) and (iii) of this section. (2) Investment limits —(i) Seeding period. With respect to an investment in any covered fund made or held pursuant to paragraph (a)(1)(i) of this section, the banking entity and its affiliates: (A) Must actively seek unaffiliated investors to reduce, through redemption, sale, dilution, or other methods, the aggregate amount of all ownership interests of the banking entity in the covered fund to the amount permitted in paragraph (a)(2)(i)(B) of this section; and (B) Must, no later than 1 year after the date of establishment of the fund (or such longer period as may be provided by the Board pursuant to paragraph (e) of this section), conform its ownership interest in the covered fund to the limits in paragraph (a)(2)(ii) of this section; (ii) Per-fund limits. (A) Except as provided in paragraph (a)(2)(ii)(B) of this section, an investment by a banking entity and its affiliates in any covered fund made or held pursuant to paragraph (a)(1)(ii) of this section may not exceed 3 percent of the total number or value of the outstanding ownership interests of the fund. (B) An investment by a banking entity and its affiliates in a covered fund that is an issuing entity of asset-backed securities may not exceed 3 percent of the total fair market value of the own… | ||||
| 17:17:5.0.1.1.14.3.17.4 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | C | Subpart C—Covered Funds Activities and Investments | § 255.13 Other permitted covered fund activities and investments. | SEC | [79 FR 5779, 5805, Jan. 31, 2014, as amended at 84 FR 62244, Nov. 14, 2019; 85 FR 46528, July 31, 2020] | (a) Permitted risk-mitigating hedging activities. (1) The prohibition contained in § 255.10(a) of this subpart does not apply with respect to an ownership interest in a covered fund acquired or retained by a banking entity that is designed to reduce or otherwise significantly mitigate the specific, identifiable risks to the banking entity in connection with: (i) A compensation arrangement with an employee of the banking entity or an affiliate thereof that directly provides investment advisory, commodity trading advisory or other services to the covered fund; or (ii) A position taken by the banking entity when acting as intermediary on behalf of a customer that is not itself a banking entity to facilitate the exposure by the customer to the profits and losses of the covered fund. (2) The risk-mitigating hedging activities of a banking entity are permitted under this paragraph (a) only if: (i) The banking entity has established and implements, maintains and enforces an internal compliance program in accordance with subpart D of this part that is reasonably designed to ensure the banking entity's compliance with the requirements of this section, including: (A) Reasonably designed written policies and procedures; and (B) Internal controls and ongoing monitoring, management, and authorization procedures, including relevant escalation procedures; and (ii) The acquisition or retention of the ownership interest: (A) Is made in accordance with the written policies, procedures, and internal controls required under this section; (B) At the inception of the hedge, is designed to reduce or otherwise significantly mitigate one or more specific, identifiable risks arising: ( 1 ) Out of a transaction conducted solely to accommodate a specific customer request with respect to the covered fund; or ( 2 ) In connection with the compensation arrangement with the employee that directly provides investment advisory, commodity trading advisory, or other services to the covered fund; (C) Does not give rise, at the inception… | ||||
| 17:17:5.0.1.1.14.3.17.5 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | C | Subpart C—Covered Funds Activities and Investments | § 255.14 Limitations on relationships with a covered fund. | SEC | [79 FR 5779, 5805, Jan. 31, 2014, as amended at 84 FR 62245, Nov. 14, 2019; 85 FR 46528, Oct. 1, 2020] | (a) Relationships with a covered fund. (1) Except as provided for in paragraph (a)(2) of this section, no banking entity that serves, directly or indirectly, as the investment manager, investment adviser, commodity trading advisor, or sponsor to a covered fund, that organizes and offers a covered fund pursuant to § 255.11 of this subpart, or that continues to hold an ownership interest in accordance with § 255.11(b) of this subpart, and no affiliate of such entity, may enter into a transaction with the covered fund, or with any other covered fund that is controlled by such covered fund, that would be a covered transaction as defined in section 23A of the Federal Reserve Act (12 U.S.C. 371c(b)(7)), as if such banking entity and the affiliate thereof were a member bank and the covered fund were an affiliate thereof. (2) Notwithstanding paragraph (a)(1) of this section, a banking entity may: (i) Acquire and retain any ownership interest in a covered fund in accordance with the requirements of §§ 255.11, 255.12, or 255.13; (ii) Enter into any prime brokerage transaction with any covered fund in which a covered fund managed, sponsored, or advised by such banking entity (or an affiliate thereof) has taken an ownership interest, if: (A) The banking entity is in compliance with each of the limitations set forth in § 255.11 of this subpart with respect to a covered fund organized and offered by such banking entity (or an affiliate thereof); (B) The chief executive officer (or equivalent officer) of the banking entity certifies in writing annually no later than March 31 to the SEC (with a duty to update the certification if the information in the certification materially changes) that the banking entity does not, directly or indirectly, guarantee, assume, or otherwise insure the obligations or performance of the covered fund or of any covered fund in which such covered fund invests; and (C) The Board has not determined that such transaction is inconsistent with the safe and sound operation and condition of the bank… | ||||
| 17:17:5.0.1.1.14.3.17.6 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | C | Subpart C—Covered Funds Activities and Investments | § 255.15 Other limitations on permitted covered fund activities. | SEC | (a) No transaction, class of transactions, or activity may be deemed permissible under §§ 255.11 through 255.13 of this subpart if the transaction, class of transactions, or activity would: (1) Involve or result in a material conflict of interest between the banking entity and its clients, customers, or counterparties; (2) Result, directly or indirectly, in a material exposure by the banking entity to a high-risk asset or a high-risk trading strategy; or (3) Pose a threat to the safety and soundness of the banking entity or to the financial stability of the United States. (b) Definition of material conflict of interest. (1) For purposes of this section, a material conflict of interest between a banking entity and its clients, customers, or counterparties exists if the banking entity engages in any transaction, class of transactions, or activity that would involve or result in the banking entity's interests being materially adverse to the interests of its client, customer, or counterparty with respect to such transaction, class of transactions, or activity, and the banking entity has not taken at least one of the actions in paragraph (b)(2) of this section. (2) Prior to effecting the specific transaction or class or type of transactions, or engaging in the specific activity, the banking entity: (i) Timely and effective disclosure. (A) Has made clear, timely, and effective disclosure of the conflict of interest, together with other necessary information, in reasonable detail and in a manner sufficient to permit a reasonable client, customer, or counterparty to meaningfully understand the conflict of interest; and (B) Such disclosure is made in a manner that provides the client, customer, or counterparty the opportunity to negate, or substantially mitigate, any materially adverse effect on the client, customer, or counterparty created by the conflict of interest; or (ii) Information barriers. Has established, maintained, and enforced information barriers that are memorialized in written policies and pr… | |||||
| 17:17:5.0.1.1.14.3.17.7 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | C | Subpart C—Covered Funds Activities and Investments | § 255.16 Ownership of interests in and sponsorship of issuers of certain collateralized debt obligations backed by trust-preferred securities. | SEC | [79 FR 5228, Jan. 31, 2014] | (a) The prohibition contained in § 255.10(a)(1) does not apply to the ownership by a banking entity of an interest in, or sponsorship of, any issuer if: (1) The issuer was established, and the interest was issued, before May 19, 2010; (2) The banking entity reasonably believes that the offering proceeds received by the issuer were invested primarily in Qualifying TruPS Collateral; and (3) The banking entity acquired such interest on or before December 10, 2013 (or acquired such interest in connection with a merger with or acquisition of a banking entity that acquired the interest on or before December 10, 2013). (b) For purposes of this § 255.16, Qualifying TruPS Collateral shall mean any trust preferred security or subordinated debt instrument issued prior to May 19, 2010 by a depository institution holding company that, as of the end of any reporting period within 12 months immediately preceding the issuance of such trust preferred security or subordinated debt instrument, had total consolidated assets of less than $15,000,000,000 or issued prior to May 19, 2010 by a mutual holding company. (c) Notwithstanding paragraph (a)(3) of this section, a banking entity may act as a market maker with respect to the interests of an issuer described in paragraph (a) of this section in accordance with the applicable provisions of §§ 255.4 and 255.11. (d) Without limiting the applicability of paragraph (a) of this section, the Board, the FDIC and the OCC will make public a non-exclusive list of issuers that meet the requirements of paragraph (a). A banking entity may rely on the list published by the Board, the FDIC and the OCC. | ||||
| 17:17:5.0.1.1.14.3.17.8 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | C | Subpart C—Covered Funds Activities and Investments | §§ 255.17-255.19 [Reserved] | SEC | ||||||
| 17:17:5.0.1.1.14.4.17.1 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | D | Subpart D—Compliance Program Requirement; Violations | § 255.20 Program for compliance; reporting. | SEC | [79 FR 5779, 5805, Jan. 31, 2014, as amended at 84 FR 62245, Nov. 14, 2019; 85 FR 46529, July 31, 2020] | (a) Program requirement. Each banking entity (other than a banking entity with limited trading assets and liabilities or a qualifying foreign excluded fund under section 255.6(f) or 255.13(d)) shall develop and provide for the continued administration of a compliance program reasonably designed to ensure and monitor compliance with the prohibitions and restrictions on proprietary trading and covered fund activities and investments set forth in section 13 of the BHC Act and this part. The terms, scope, and detail of the compliance program shall be appropriate for the types, size, scope, and complexity of activities and business structure of the banking entity. (b) Banking entities with significant trading assets and liabilities. With respect to a banking entity with significant trading assets and liabilities, the compliance program required by paragraph (a) of this section, at a minimum, shall include: (1) Written policies and procedures reasonably designed to document, describe, monitor and limit trading activities subject to subpart B (including those permitted under §§ 255.3 to 255.6 of subpart B), including setting, monitoring and managing required limits set out in § 2554 and § 2555, and activities and investments with respect to a covered fund subject to subpart C (including those permitted under §§ 255.11 through 255.14 of subpart C) conducted by the banking entity to ensure that all activities and investments conducted by the banking entity that are subject to section 13 of the BHC Act and this part comply with section 13 of the BHC Act and this part; (2) A system of internal controls reasonably designed to monitor compliance with section 13 of the BHC Act and this part and to prevent the occurrence of activities or investments that are prohibited by section 13 of the BHC Act and this part; (3) A management framework that clearly delineates responsibility and accountability for compliance with section 13 of the BHC Act and this part and includes appropriate management review of trading limits, stra… | ||||
| 17:17:5.0.1.1.14.4.17.2 | 17 | Commodity and Securities Exchanges | II | 255 | PART 255—PROPRIETARY TRADING AND CERTAIN INTERESTS IN AND RELATIONSHIPS WITH COVERED FUNDS | D | Subpart D—Compliance Program Requirement; Violations | § 255.21 Termination of activities or investments; penalties for violations. | SEC | (a) Any banking entity that engages in an activity or makes an investment in violation of section 13 of the BHC Act or this part, or acts in a manner that functions as an evasion of the requirements of section 13 of the BHC Act or this part, including through an abuse of any activity or investment permitted under subparts B or C, or otherwise violates the restrictions and requirements of section 13 of the BHC Act or this part, shall, upon discovery, promptly terminate the activity and, as relevant, dispose of the investment. (b) Whenever the SEC finds reasonable cause to believe any banking entity has engaged in an activity or made an investment in violation of section 13 of the BHC Act or this part, or engaged in any activity or made any investment that functions as an evasion of the requirements of section 13 of the BHC Act or this part, the SEC may take any action permitted by law to enforce compliance with section 13 of the BHC Act and this part, including directing the banking entity to restrict, limit, or terminate any or all activities under this part and dispose of any investment. | |||||
| 20:20:1.0.2.8.31.0.155.1 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.1 Introduction. | SSA | Section 10 of the Railroad Retirement Act provides for the recovery of an overpayment of benefits to an individual. This part explains when an overpayment must be recovered, from whom an overpayment may be recovered, and when recovery of the overpayment may be waived or administrative relief from recovery granted, and circumstances under which the overpayment may be compromised, or circumstances under which recovery of the overpayment may be suspended or terminated. | ||||||
| 20:20:1.0.2.8.31.0.155.10 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.10 Waiver of recovery. | SSA | There shall be no recovery from any person in any case where more than the correct amount of annuities or other benefits has been paid to an individual or where payment has been made to an individual not entitled thereto if in the judgment of the Board: (a) The overpaid individual is without fault, and (b) Recovery would be contrary to the purpose of the Railroad Retirement Act or would be against equity or good conscience. | ||||||
| 20:20:1.0.2.8.31.0.155.11 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.11 Fault. | SSA | (a) Before recovery of an overpayment may be waived, it must be determined that the overpaid individual was without fault in causing the overpayment. If recovery is sought from other than the overpaid individual but the overpaid individual was not without fault, then waiver is not available. However, see § 255.16 of this part for provisions as to when administrative relief from recovery may be granted in such circumstances. (b) Fault means a defect of judgment or conduct arising from inattention or bad faith. Judgment or conduct is defective when it deviates from a standard of reasonable care taken to comply with the entitlement provisions of this chapter. Conduct includes both action and inaction. Unlike fraud, fault does not require a deliberate intent to deceive. (c) Whether an individual is at fault in causing an overpayment generally depends on all circumstances surrounding the overpayment. Among the factors the Board will consider are: the ability of the overpaid individual to understand the reporting requirements of the Railroad Retirement Act or to realize that he or she is being overpaid ( e.g., age, education, comprehension, physical and mental condition); the particular cause of non-entitlement to benefits; and the number of instances in which the individual may have made erroneous statements. (d)(1) Circumstances in which the Board will find an individual at fault include but are not limited to: (i) Failure to furnish to the Railroad Retirement Board information which the individual knew or should have known to be material; (ii) An incorrect statement made by the individual which he or she knew or should have known was incorrect (including furnishing an opinion or conclusion when asked for facts); and (iii) Failure to return a payment which the individual knew or should have known was incorrect. (2) Where any of the circumstances listed in paragraph (d)(1) are found to have occurred, the individual shall be presumed to be not without fault. This presumption may be rebutted, but the burden of p… | ||||||
| 20:20:1.0.2.8.31.0.155.12 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.12 When recovery is contrary to the purpose of the Railroad Retirement Act. | SSA | (a) The purpose of the Railroad Retirement Act is to pay retirement and survivor annuities and other benefits to eligible beneficiaries. It is contrary to the purpose of the Act for an overpayment to be recovered from income and resources which the individual requires to meet ordinary and necessary living expenses. If either income or resources, or a combination thereof, are sufficient to meet such expenses, recovery of an overpayment is not contrary to the purpose of the Act. (b) For purposes of this section, income includes any funds which may reasonably be considered available for the individual's use, regardless of source, including inheritance prospects. Income to the individual's spouse or dependents is available to the individual if the spouse or dependent lived with the individual at the time waiver is considered. Types of income include but are not limited to: (1) Government benefits, such as Black Lung, Social Security, Workers' Compensation, and Unemployment Compensation benefits; (2) Wages and self-employment income; (3) Regular incoming payments, such as rent or pensions; and (4) Investment income. (c) For purposes of this section, resources may include: (1) Liquid assets, such as cash on hand, the value of stocks, bonds, savings accounts, mutual funds and the like; (2) Non-liquid assets (except an individual's primary residence) at their fair market value; and (3) Accumulated, unpaid Federal benefits. (4) For purposes of paragraphs (c)(1) and (2) of this section, assets concealed or improperly transferred on and after the date of notification of the overpayment, other than cash expended to meet ordinary and necessary living expenses, shall be included. (d) Whether an individual has sufficient income and resources to meet ordinary and necessary living expenses depends not only on the amount of his or her income and resources, but also on whether the expenses are ordinary and necessary. While the level of expenses which is ordinary and necessary may vary among individuals, it must be held a… | ||||||
| 20:20:1.0.2.8.31.0.155.13 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.13 When recovery is against equity or good conscience. | SSA | (a) Recovery is considered to be against equity or good conscience if a person, in reliance on payments made to him or her or on notice that payment would be made, relinquished a significant and valuable right (Example 1 of this section) or changed his or her position to his or her substantial detriment (Example 2 of this section). (b) An individual's ability to repay an overpayment is not material to a finding that recovery would be against equity or good conscience but is relevant with respect to the credibility of a claim of detrimental reliance under paragraph (a) of this section. (c) This section may be illustrated by the following examples: | ||||||
| 20:20:1.0.2.8.31.0.155.14 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.14 Waiver not available when recovery can be made from accrual of social security benefits. | SSA | Where the overpayment is the result of a reduction of benefits payable under the Railroad Retirement Act due to the overpaid individual's entitlement to social security benefits and recovery of such overpayment may be made by offset against an accrual of social security benefits, it shall not be considered to be against equity or good conscience or contrary to the purpose of the Railroad Retirement Act to recover the overpayment by offset against the accrual. Consequently, in such a case recovery of an overpayment is not subject to waiver consideration. | ||||||
| 20:20:1.0.2.8.31.0.155.15 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.15 Waiver to an estate. | SSA | It shall never be considered contrary to the purpose of the Railroad Retirement Act to recover an overpayment from the estate of an overpaid individual. | ||||||
| 20:20:1.0.2.8.31.0.155.16 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.16 Administrative relief from recovery. | SSA | (a) Where the Board seeks to recover an overpayment from someone other than the overpaid individual, as provided for in § 255.4 of this part, and where waiver of recovery, as provided for in § 255.10 of this part, is not available because the overpaid individual was at fault as defined in § 255.11 of this part, the Board may forego recovery of the overpayment where the individual from whom recovery is sought was not at fault in causing the overpayment and where recovery is contrary to the purpose of the Railroad Retirement Act as defined in § 255.12 of this part. (b) Application of administrative relief from recovery with respect to a given person from whom recovery may be made shall have no effect on the authority of the Board to recover the overpayment from anyone else from whom recovery may be sought. (c) This section may be illustrated by the following examples: | ||||||
| 20:20:1.0.2.8.31.0.155.17 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.17 Recovery of overpayments from a representative payee. | SSA | (a) Joint liability. In general, if an overpayment is made to an individual receiving benefits as a representative payee (see part 266 of this chapter) the Board may recover the overpayment from either the representative payee or the beneficiary, or both. If the beneficiary is currently receiving benefits, either in his or her own right or through a representative payee, the Board will generally propose to recover the overpayment by setoff against those benefits as provided for in § 255.6 of this part. If the beneficiary is not currently receiving benefits but the representative payee is receiving benefits, then the Board will generally propose to recover the overpayment by setoff against those benefits. (b) Waiver of overpayments. For purposes of § 255.10 of this part (Waiver of recovery), if it is determined that the representative payee was at fault in causing the overpayment there may be no waiver of the overpayment either as to the representative payee or the beneficiary. However, if the beneficiary was not at fault in causing the overpayment he or she may be eligible for administrative relief from recovery under § 255.16 of this part. (c) This section may be illustrated by the following examples: | ||||||
| 20:20:1.0.2.8.31.0.155.18 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.18 Compromise of overpayments. | SSA | (a) This section sets forth the principal standards which the Board applies in exercising its authority under 31 U.S.C. 3711 to compromise an overpayment. In addition, the Board may compromise an overpayment under the Federal Claims Collection Standards set forth in 4 CFR part 103. (b) An overpayment may be compromised only if it is in the best interest of the agency. Circumstances and factors to be considered are: (1) The overpayment cannot be collected because of the overpaid individual's inability to pay the full amount of the overpayment within a reasonable time; (2) The overpaid individual refuses to pay the overpayment in full and it appears that enforced collection procedures will take an inordinate amount of time or that the cost of collecting does not justify the enforced collection of the full amount; or (3) There is doubt that the Board could prove its case in court for the full amount claimed because of a bona fide dispute as to the facts or because of the legal issues involved. | ||||||
| 20:20:1.0.2.8.31.0.155.19 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.19 Suspension or termination of the collection of overpayments. | SSA | This section sets forth the principal standards which the Board applies in approving the suspension or termination of the collection of an overpayment. In addition the Board may suspend or terminate collection under the Federal Claims Collection Standards set forth in 4 CFR part 104. (a) Collection action on a Board claim may be suspended temporarily when the debtor cannot be located and there is reason to believe future collection action may be productive or collection may be effected by offset in the near future. (b) Collection action may be terminated when: (1) The debtor is unable to make any substantial payment; (2) The debtor cannot be located and offset is too remote to justify retention of the claim; (3) The cost of collection action will exceed the amount recoverable; or (4) The claim is legally without merit or cannot be substantiated by the evidence. | ||||||
| 20:20:1.0.2.8.31.0.155.2 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.2 Overpayments. | SSA | An overpayment, within the meaning of this part, is made in any case in which an individual receives a payment under the Railroad Retirement Act, all or part of which payment he or she is not entitled to receive. | ||||||
| 20:20:1.0.2.8.31.0.155.3 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.3 When overpayments are to be recovered. | SSA | Overpayments shall be recovered in all cases except those in which recovery is waived under § 255.10 of this part or administrative relief from recovery is granted under § 255.16 of this part, or where the overpayment is compromised or recovery is terminated or suspended under § 255.18 or § 255.19 of this part. | ||||||
| 20:20:1.0.2.8.31.0.155.4 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.4 Persons from whom overpayments may be recovered. | SSA | (a) Overpaid individual. The Board may recover an overpayment from the individual to whom the overpayment has been made by any method permitted by this part, or by the Federal Claims Collection Standards (4 CFR chapter 2) (Example 1 of this section). If the overpaid individual dies before recovery is completed, then recovery may be effected by recovery from the estate or the heirs of such individual. (b) Other than overpaid individual. The Board may recover an overpayment from a person other than the overpaid individual if such person is receiving benefits based upon the same record of compensation as the overpaid individual under a statute administered by the Board. In such a case, the Board will ordinarily recover the overpayment by setoff against such benefits as are provided for in § 255.6 of this part (Example 2 of this section). However, the Board may ask for a cash refund of the overpayment. (c) Individual not in the same household. Recovery under paragraph (b) of this section may be made from an individual who was not living in the same household, as defined in part 216 of this chapter, as the overpaid individual at the time of the overpayment, if the individual from whom recovery is to be made either was aware that benefits were being paid incorrectly or benefitted from the overpayment. (Example 3 of this section). (d) Examples. This section may be illustrated by the following examples: | ||||||
| 20:20:1.0.2.8.31.0.155.5 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.5 Recovery by cash payment. | SSA | The Board shall have the right to require that an overpayment to an individual be immediately and fully repaid in cash by that individual. However, if the Board determines that the individual is financially unable to pay the amount of the indebtedness in a lump sum, payment may be accepted in regular installments in accordance with the Federal Claims Collection Standards, found in 4 CFR chapter 2. These standards provide that whenever possible installment payments should be sufficient in amounts and frequency to liquidate the debt in not more than 3 years. | ||||||
| 20:20:1.0.2.8.31.0.155.6 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.6 Recovery by setoff. | SSA | An overpayment may be recovered by setoff from any subsequent payment determined to be payable under any statute administered by the Board to the individual who received the overpayment. An overpayment may be recovered from someone other than the overpaid individual by setoff from a subsequent payment determined to be payable to that other individual on the basis of the same record of compensation as that of the overpaid individual. | ||||||
| 20:20:1.0.2.8.31.0.155.7 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.7 Recovery by deduction in computation of death benefit. | SSA | In computing the residual lump sum provided for in part 234, subpart D, of this chapter, the Board shall include in the benefits to be deducted from the applicable percentages of the aggregate compensation provided for in that part all overpayments, whether waived under § 255.10 of this part or otherwise not recovered, that were paid to the employee or to his or her spouse or to his or her survivors with respect to the employee's employment. | ||||||
| 20:20:1.0.2.8.31.0.155.8 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.8 Recovery by adjustment in connection with subsequent payments. | SSA | [63 FR 29548, June 1, 1998] | (a) Recovery of an overpayment may be made by permanently reducing the amount of any annuity payable to the individual or individuals from whom recovery is sought. This method of recovery is called an actuarial adjustment of the annuity. The Board cannot require any individual to take an actuarial adjustment in order to recover an overpayment nor is an actuarial adjustment available as a matter of right. An actuarial adjustment becomes effective and the debt is considered recovered when, in the case of an individual paid by electronic funds transfer, the first annuity payment reflecting the annuity rate after actuarial adjustment is deposited to the account of the overpaid individual, or, in the case of an individual paid by check, the first annuity check reflecting the annuity rate after actuarial adjustment is negotiated. (b) In calculating any adjustment under this section, beginning with the first day of January after the tables and long-term or ultimate interest rate go into effect under section 15(g) of the Railroad Retirement Act (the triennial evaluation), the Board shall use those tables and long-term or ultimate interest rate. | |||||
| 20:20:1.0.2.8.31.0.155.9 | 20 | Employees' Benefits | II | B | 255 | PART 255—RECOVERY OF OVERPAYMENTS | § 255.9 Individual enrolled under supplementary medical insurance plan. | SSA | Where recovery of the overpayment is by setoff as provided for in § 255.6 of this part, and where recovery of the overpayment by such means will be accomplished within a period of 5 months, and the individual from whom recovery is sought is an enrollee under Part B of Title XVIII of the Social Security Act (Supplementary Medical Insurance Benefits for the Aged and Disabled), an amount of such individual's monthly benefit which is equal to his or her obligation for supplementary medical insurance premiums will be applied toward payment of such premiums, and the balance of the monthly benefit will be applied toward recovery of the overpayment. | ||||||
| 24:24:2.1.1.2.27.0.211.1 | 24 | Housing and Urban Development | II | B | 255 | PART 255—COINSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS | § 255.1 Termination of program. | HUD | [55 FR 41320, Oct. 10, 1990, as amended at 56 FR 14642, Apr. 11, 1991] | (a) Effective on November 12, 1990, the authority to coinsure mortgages under this part is terminated, except that the Department: (1) Will honor legally binding and validly issued commitments issued before November 12, 1990 and (2) Will accept for review the coinsurance applications described in paragraph (b) of this section. Part 255, as it existed immediately before November 12, 1990, will continue to govern the rights and obligations of coinsured lenders, mortgagors, and the Department of Housing and Urban Development with respect to loans coinsured under this part. (b) A precommitment review procedure applies to any application for mortgage coinsurance for which a lender has accepted a non-refundable application fee before November 12, 1990 under this part and for which a legally binding Conditional or Firm Commitment is proposed to be issued. This procedure applies to lenders with preliminary as well as full approval to process coinsurance applications and without regard to whether the lender is under probation. For any coinsurance application for which the lender has accepted an application and a non-refundable application fee before November 12, 1990, the lender shall, prior to commitment, submit to HUD headquarters and to the HUD field office with jurisdiction for the proposed project such exhibits and other information as has been specified in administrative instructions of the Commissioner. The lender shall not issue a commitment without written approval from the Commissioner. Field Offices shall not endorse any case covered by this precommitment review requirement unless the lender submits with the endorsement package evidence of the Commissioner's approval of the processing and evidence of compliance with any conditions imposed by the Commissioner. (c) Extensions of commitments for projects which had outstanding legally binding commitments as of November 12, 1990 are limited as follows: (1) Conditional commitments may be extended not to exceed 180 days from the date of original issuance; (2) F… | |||||
| 24:24:2.1.1.2.27.0.211.2 | 24 | Housing and Urban Development | II | B | 255 | PART 255—COINSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS | § 255.2 GNMA right to assignment. | HUD | [59 FR 1475, Jan. 11, 1994] | If the lender-issuer defaults on its obligations under the GNMA Mortgage-Backed Securities Program, GNMA will have the right to cause all Coinsured Mortgages held in GNMA pools by the defaulting coinsuring lender-issuer to be assigned to another GNMA-approved coinsuring lender-issuer, or to GNMA itself. (a) For any Coinsured Mortgage that is not in default and is held by a defaulting lender-issuer, GNMA will have the right to perfect an assignment of the mortgage to itself. However, before exercising this right, GNMA will attempt to have the Mortgage assigned to another eligible coinsuring lender (unless GNMA determines, with the agreement of the Commissioner, that the attempt would prove ineffectual because of market conditions or other factors). This attempt will be undertaken by soliciting offers to assume the defaulting lender-issuer's rights and obligations under the Mortgage from those eligible coinsuring lenders that are also GNMA issuers and that are indicated on a periodically updated listing furnished to GNMA by the Commissioner. (b) For any Coinsured Mortgage that is in default and held by a defaulting lender-issuer, GNMA will have the right to perfect an assignment of the Coinsured Mortgage directly to itself before extinguishing the Mortgage by completion of foreclosure action or acquisition of title by deed-in-lieu of foreclosure. (c) GNMA, as assignee, will give the Commissioner written notice, within 30 days after taking a Mortgage by assignment in accordance with this section, in order to allow an appropriate endorsement and necessary changes in the Commissioner's records. (d) The Commissioner will endorse any Mortgage assigned to GNMA as provided by this section for full insurance, effective as of the date of assignment in accordance with the appropriate provisions of 24 CFR part 207. Any future claim by GNMA, or any assignment of the fully insured Mortgage, will be governed by the appropriate provisions of 24 CFR part 207, except that any payment will be made in cash instead of debentures. | |||||
| 24:24:2.1.1.2.27.0.211.3 | 24 | Housing and Urban Development | II | B | 255 | PART 255—COINSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS | § 255.3 Case-by-case conversion to full insurance. | HUD | [61 FR 49038, Sept. 17, 1996] | The provisions of 24 CFR 251.3 apply to this part. | |||||
| 24:24:2.1.1.2.27.0.211.4 | 24 | Housing and Urban Development | II | B | 255 | PART 255—COINSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS | § 255.6 Method of payment of mortgage insurance premiums. | HUD | [63 FR 1303, Jan. 8, 1998] | The provisions of 24 CFR 251.6 shall apply to this part. | |||||
| 40:40:27.0.1.4.36.1.17.1 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | A | Subpart A—General Provisions | § 255.1 Scope and purpose. | EPA | (a) These guidelines are applicable to policies, procedures, and criteria for the identification of those areas which have common solid waste management problems and which are appropriate units for planning regional solid waste management services pursuant to section 4002(a) of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 (the Act). The guidelines also define and guide the identification of which functions will be carried out by which agencies pursuant to section 4006 of the Act. (b) The purposes of these guidelines are to (1) provide useful criteria for selecting the regions and agencies to be identified pursuant to section 4006 of the Act and (2) provide guidance for conducting the process which will result in formal identification of those regions and agencies. (c) Identifications made pursuant to these guidelines should be consistent with State solid waste management plans and strategies. A State strategy establishes: Goals for prevention of adverse effects on the environment resulting from improper solid waste disposal including protection of surface and ground water quality, air quality and the land; priorities among waste types; priorities among disposal practices; and the roles of existing agencies with responsibilities in solid waste management. The identification process should cover all waste types (residential and commercial solid waste, hazardous wastes, industrial sludges and pretreatment residues, municipal sewage sludge, air pollution control residue, septage, mining and agricultural waste, other industrial waste, and solid waste from community activities), all disposal practices (impoundments, pits, ponds, lagoons, landfills, dumps, land-spreading, and industrial leaching fields) and all technological approaches (conservation, recovery, incineration, disposal). | ||||
| 40:40:27.0.1.4.36.1.17.2 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | A | Subpart A—General Provisions | § 255.2 Definitions. | EPA | [42 FR 24927, May 16, 1977, as amended at 48 FR 29302, June 24, 1983] | The Act contains an extensive list of definitions in section 1004 which are applicable here. There are further definitions of terms in 40 CFR part 29 of this chapter which apply unless the context herein requires otherwise. | |||
| 40:40:27.0.1.4.36.2.17.1 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | B | Subpart B—Criteria for Identifying Regions and Agencies | § 255.10 Criteria for identifying regions. | EPA | The following criteria are to assist in identifying regions pursuant to section 4006(a) of the Act. (a) Geographic areas which have a history of cooperating to solve problems in environmental or other related matters should be considered. (1) Regions encompassing existing regional, including countywide, systems or institutions, including those of the private sector, should be evaluated. Changes in their boundaries may be needed for economic viability or other reasons in keeping with the State plan. (2) Boundary selection which would require the creation of new agencies should be considered only where necessary. The relationship among established agencies should be considered. Where institutional gaps or inadequacies are found, regions should be identified keeping in mind which agencies would be able to fill those needs. (b) The size and location of regions should permit resource recovery and conservation in accordance with the objectives in section 4001 of the Act. (1) A region's size and configuration should be considered, weighing transportation costs against economies of scale. (2) Left-over regions having inadequate resources or volumes of waste should be avoided. (3) Location should be considered relative to available transportation and to markets for recovered resources. (c) The volume of wastes within a region will influence the technology choices for recovery and disposal, determine economies of scale, and affect marketability of resources recovered. A region should include sufficient volume of waste to support the goals and objectives of the State plan, including materials or energy recovery as appropriate. (d) Waste type should be considered since it also affects management options. Industrial or hazardous waste streams may warrant special consideration or special boundaries. (e) The effect of geologic and hydrologic conditions, such as soil suitability, land availability, natural barriers (rivers and mountains), the quantity and availability of water resources, and the susceptibility of groun… | ||||
| 40:40:27.0.1.4.36.2.17.2 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | B | Subpart B—Criteria for Identifying Regions and Agencies | § 255.11 Criteria for identifying agencies. | EPA | The following criteria are intended to assist in the process of agency selection pursuant to section 4006(b) of the Act. They may also be useful in pointing out needed improvements in the qualifications of the selected agencies. (a) Existing agencies with demonstrated satisfactory ability to plan, manage, or operate solid waste management services should be considered for planning and implementation responsibilities. Agencies which have completed planning that resulted in successful implementation of solid waste management facilities or services should be given priority consideration for future planning responsibilities when they otherwise meet these criteria. (b) An agency to be identified as responsible for conducting regional solid waste management planning should: (1) Be a representative organization composed of, or whose membership is composed of, individuals at least a majority of whom are elected officials of local governments or their designees having jurisdiction in the planning region. (2) Have planning jurisdiction in the entire planning region. (3) Be capable of having the planning process fully underway within 1 year after identification. (4) Have established procedures for adoption, review, and revision of plans and resolution of major issues, including procedures for public participation in the planning process. (5) Have appropriate experience and skills to perform all of its assigned responsibilities, including expertise for the particular waste type, processing or disposal technology, and functional area. (Attention is directed to OMB Circular No. A-95, paragraph 1.e., part IV of Attachment A which encourages the designation of established substate district comprehensive planning agencies as the agencies to carry out areawide planning assisted or required under any Federal program). (c) In identifying agencies for solid waste management planning and implementation under section 4006 of the Act, the State should review the solid waste activities being conducted by water quality management … | ||||
| 40:40:27.0.1.4.36.3.17.1 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | C | Subpart C—Procedures for Identifying Regions and Agencies | § 255.20 Preliminary identification of regions. | EPA | [42 FR 24927, May 16, 1977, as amended at 48 FR 29303, June 24, 1983] | Preliminary identification of regions should be made by the Governor or his representative after consultation with regional and areawide planning agencies, water quality and solid waste management planning agencies, cities, and counties and other appropriate units of general purpose local government. The Governor should notify the concerned agencies of his recommendations concerning boundaries. Where the regional identification has already been established by State legislation or other method in keeping with these guidelines, this notification need only request comments on the existing arrangement. | |||
| 40:40:27.0.1.4.36.3.17.2 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | C | Subpart C—Procedures for Identifying Regions and Agencies | § 255.21 Local consultation on boundaries. | EPA | Any chief executive of a general purpose government within the State may comment on the Governor's recommendation concerning the boundaries. (a) The purposes of these comments are to assure that the experience of local agencies is used to fullest advantage in boundary decisions, that incompatible institutional arrangements are not forced, and that significant local considerations are not overlooked. (b) When the objectives of the Act concerning local consultation can be met by an equivalent or existing process established under State administrative procedures acts or other State procedural guidance, the Governor may request that the EPA accept that process in fulfillment of the grant eligibility criteria under section 4007 of the Act. | ||||
| 40:40:27.0.1.4.36.3.17.3 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | C | Subpart C—Procedures for Identifying Regions and Agencies | § 255.22 Establishing regional boundaries. | EPA | Under section 4006(a) of the Act the formal means for identifying regional boundaries are to be regulations promulgated by the Governor. Where the identification of areas has already been made by State legislation or other means which have legal stature equivalent to the required regulations, and where notification and consultation have occurred pursuant to §§ 255.20 and 255.21 of this part, such legislation may be used in lieu of those regulations. Where substantial disagreement persists between the Governor and local officials, normal State administrative and judicial appeals procedures are available to resolve such conflict. | ||||
| 40:40:27.0.1.4.36.3.17.4 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | C | Subpart C—Procedures for Identifying Regions and Agencies | § 255.23 Joint identification of agencies. | EPA | [42 FR 24927, May 16, 1977, as amended at 48 FR 29303, June 24, 1983] | (a) The Governor should designate a lead agency to manage the identification process. That agency should review established notification procedures to determine that at least all general purpose local governments within the State, all units of regional governance, all existing solid waste and water quality management planning agencies, and all areawide agencies and the state process under Executive Order 12372 will be notified. If necessary, a supplemental distribution list should be prepared. Consideration should be given to addressing individual offices within those agencies. (b) The Governor should, by correspondence or State notification procedures, notify the agencies on the distribution list (paragraph (a) of this section) of the purpose and schedule of the joint identification process. This may be coincident with the notification in § 255.20. (c) The Governor, an appropriate legislative committee, and appropriate local elected officials may submit nominations of agencies and functions to the lead agency appointed by the Governor. This lead agency should make such nominations public. (d) Chief executives of agencies on the distribution list may comment by letter on the nominations. (e) If a disagreement exists which cannot be settled by correspondence or a meeting with the Governor's representative, a public hearing should be held and all elected officials of local general purpose governments within the region should be invited. The purpose of this meeting will be for the local officials to reach a consensus regarding the agency(ies) to be formally identified. (f) When a consensus is reached among local elected officials a formal agreement should be made in conformance with State administrative procedures. It should be binding until revised in accordance with this subpart. (g) When the local consensus is in agreement with the State opinion, the State should confirm that agreed arrangement, formally establishing the duties and responsibilities of the identified agencies by legislative resolution or exe… | |||
| 40:40:27.0.1.4.36.3.17.5 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | C | Subpart C—Procedures for Identifying Regions and Agencies | § 255.24 Procedure for identifying interstate regions. | EPA | If the Governor's recommendation, the local consensus, or a neighboring Governor's recommendation is that an interstate region be identified, the procedures described in this subpart should be extended to include notification and comment of all concerned officials in the entire recommended region. (a) Section 4006(c) of the Act establishes specific procedures for the conduct of interstate identification processes. (b) Recommendations, nominations, and comments resulting from processes described in §§ 255.20 and 255.21 that concern interstate regions should be brought to the attention of the appropriate EPA Regional Administrator. (c) The Governor should evaluate the use of interstate metropolitan area (Standard Metropolitan Statistical Area) boundaries for planning and management purposes, and consider nominating such areas where appropriate. | ||||
| 40:40:27.0.1.4.36.3.17.6 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | C | Subpart C—Procedures for Identifying Regions and Agencies | § 255.25 Public participation. | EPA | Public participation in the process of identifying regions and agencies should be provided for, encouraged, and assisted by the State and local officials. | ||||
| 40:40:27.0.1.4.36.4.17.1 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | D | Subpart D—Responsibilities of Identified Agencies and Relationship to Other Programs | § 255.30 Responsibilities established. | EPA | The following duties and responsibilities should be assigned for all appropriate areas pursuant to section 4006. (a) Disposal of municipal solid waste should be an identified responsibility throughout the State. In the event that no local or regional agency is held responsible for disposal for a region, a State agency should be identified and held accountable. (b) Where the State plan identifies municipal sewage sludge disposal, hazardous waste disposal or other functions needing attention in a region, an agency should be identified as being responsible for that function in that region. (c) These responsibilities may be assigned with the intent that private industry be the actual purveyor of service. | ||||
| 40:40:27.0.1.4.36.4.17.2 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | D | Subpart D—Responsibilities of Identified Agencies and Relationship to Other Programs | § 255.31 Integration with other acts. | EPA | The Governor shall integrate the provisions of these guidelines for purposes of administration and enforcement, and should avoid duplication to the maximum extent practicable, with the appropriate regional identification provisions of the Clean Air Act (42 U.S.C. 1857 et seq. ), the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq. ), the Safe Drinking Water Act (42 U.S.C. 300f et seq. ), the Toxic Substances Control Act (15 U.S.C. 2601 et seq. ), the Marine Protection, Research and Sanctuaries Act of 1972 (33 U.S.C. 1401 et seq. ) and other appropriate Acts of Congress. | ||||
| 40:40:27.0.1.4.36.4.17.3 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | D | Subpart D—Responsibilities of Identified Agencies and Relationship to Other Programs | § 255.32 Coordination with other programs. | EPA | The region and agency identification criteria (§ 255.11) specify review of solid waste activities being conducted by water quality management planning agencies, underground injection control agencies, and air quality management agencies. There should be a formal means of coordination established between any agencies established under section 4006 which are not identical with these agencies. Coordination should be established so that permittees under the National Pollutant Discharge Elimination System of the Federal Water Pollution Control Act will be consulted concerning disposal of residual sludges. | ||||
| 40:40:27.0.1.4.36.4.17.4 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | D | Subpart D—Responsibilities of Identified Agencies and Relationship to Other Programs | § 255.33 Inclusion of Federal facilities and Native American Reservations. | EPA | Major Federal facilities and Native American Reservations should be treated for the purposes of these guidelines as though they are incorporated municipalities, and the facility director or administrator should be considered the same as a locally elected official. | ||||
| 40:40:27.0.1.4.36.5.17.1 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | E | Subpart E—Submission and Revision of Identifications | § 255.40 Notification of status. | EPA | This subpart describes procedures which may ultimately be required by EPA when it publishes regulations governing application and eligibility for grants under section 4007. Under these regulations the appropriate EPA Regional Administrator will consider the identifications made under section 4006 as one of the conditions of grant eligibility. The Regional Administrator may accept, in State grant applications, notification of the status of these identifications to ensure that premature decisions on State plan development will not be forced by the timing of the identifications specified in the Act. Procedures are outlined here to advise the States of what EPA expects to require in such notification. (a) The notification should specify those regional boundaries and agencies which are uncontested at the time of submission, and specify a schedule of hearings and determinations of subsequent identification of regions and agencies as consensus is reached. (b) The appropriate level of detail and the timing of the identifications to be made should be established for each planning region after agreement between the State and the appropriate EPA Regional Administrator. The timing should depend upon how well the State plan is developed, the environmental and economic decisions to be made, and the existing management approaches to their resolution. (c) The notification should list the major known interested agencies and private operators within each planning region and describe how they will be included in the process. Where appropriate, it should include an expression of their interest and a definition of the extent and limits of their role in solid waste management planning. (d) The notification should provide a schedule for phasing of plan development with the identification of agencies to carry out those plans, showing the projected maturation of management agencies and the milestones for those agencies in taking over the plan implementation process. (e) This notification should include establishment of State agenci… | ||||
| 40:40:27.0.1.4.36.5.17.2 | 40 | Protection of Environment | I | I | 255 | PART 255—IDENTIFICATION OF REGIONS AND AGENCIES FOR SOLID WASTE MANAGEMENT | E | Subpart E—Submission and Revision of Identifications | § 255.41 Procedure for revision. | EPA | The procedure for revising regional identifications or agency responsibilities should be specified by the notification. (a) The State should review and, if appropriate, revise or modify the identification of regions and the responsibilities of local and regional agencies at intervals of less than 3 years. Review and modification should include, but not be limited to, the following areas: (1) Whether new regions should be identified, or whether present boundaries should be modified. (2) Whether responsibilities of an agency should be expanded or reduced due to changes in the needs for solid waste functions in the region. (b) Revisions or adjustments to the State plan may require minor boundary or agency changes from time to time. The appropriate EPA Regional Administrator should be notified of such revisions by the State solid waste agency. (c) Major revisions or adjustments in agencies or boundaries should be made in consultation with local officials and be subject to the same procedures used in the original identification process. Notification of such revisions should be submitted with State plan updates. |
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