[Code of Federal Regulations]
[Title 12, Volume 2, Parts 200 to 219]
[Revised as of January 1, 1999]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR201.5]

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                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 201--EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS (REGULATION A)--Table of Contents
 
Sec. 201.5  Advances and discounts.

    (a) Federal Reserve Banks may lend to depository institutions either 
through advances secured by acceptable collateral or through the 
discount of certain types of paper. Credit extended by the Federal 
Reserve Banks generally takes the form of an advance.
    (b) Federal Reserve Banks may make advances to any depository 
institution if secured to the satisfaction of the Federal Reserve Bank. 
Satisfactory collateral generally includes United States government and 
Federal agency securities, and, if of acceptable quality, mortgage notes 
covering 1-4 family residences, State and local government securities, 
and business, consumer and other customer notes.
    (c) If a Federal Reserve Bank concludes that a depository 
institution will be better accommodated by the discount of paper than by 
an advance, it may discount any paper endorsed by the depository 
institution that meets therequirements specified in the FRA.

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