Section 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 .
(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 (17 CFR 270.2a-7 ), 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.Reg. W, 74 FR 6228, Feb. 6, 2009