# 12 C.F.R. § 615.5454 (2026): Creation of participant's security entitlement; security interests > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5454 ## Section - **Citation:** 12 C.F.R. § 615.5454 (2026) - **Heading:** Creation of participant's security entitlement; security interests - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 12 CFR: Banks and Banking / Chapter VI: FARM CREDIT ADMINISTRATION / Part 615: FUNDING AND FISCAL AFFAIRS, LOAN POLICIES AND OPERATIONS, AND FUNDING OPERATIONS / Subpart O: Book-Entry Procedures for Farm Credit Securities / § 615.5454: § 615.5454 Creation of participant's security entitlement › security interests. ## Text (a) A participant's security entitlement is created when a Federal Reserve Bank indicates by book entry that a book-entry security has been credited to a participant's securities account. (b) A security interest in a security entitlement of a participant in favor of the United States to secure deposits of public money, including without limitation deposits to the Treasury tax and loan accounts, or other security interest in favor of the United States that is required by Federal statute, regulation, or agreement, and that is marked on the books of a Federal Reserve Bank is thereby effected and perfected, and has priority over any other interest in the securities. Where a security interest in favor of the United States in a security entitlement of a participant is marked on the books of a Federal Reserve Bank, such Federal Reserve Bank may rely, and is protected in relying, exclusively on the order of an authorized representative of the United States directing the transfer of the security. For purposes of this paragraph, an “authorized representative of the United States” is the official designated in the applicable regulations or agreement to which a Federal Reserve Bank is a party, governing the security interest. (c)(1) The Farm Credit Banks, the Funding Corporation, and the Federal Reserve Banks have no obligation to agree to act on behalf of any person or to recognize the interest of any transferee of a security interest or other limited interest in favor of any person except to the extent of any specific requirement of Federal law or regulation or to the extent set forth in any specific agreement with the Federal Reserve Bank on whose books the interest of the participant is recorded ks have no obligation to agree to act on behalf of any person or to recognize the interest of any transferee of a security interest or other limited interest in favor of any person except to the extent of any specific requirement of Federal law or regulation or to the extent set forth in any specific agreement with the Federal Reserve Bank on whose books the interest of the participant is recorded. To the extent required by such law or regulation or set forth in an agreement with a Federal Reserve Bank, or the Federal Reserve Bank Operating Circular, a security interest in a security entitlement that is in favor of a Federal Reserve Bank, a Farm Credit Bank, the Funding Corporation, or a person may be created and perfected by a Federal Reserve Bank marking its books to record the security interest. Except as provided in paragraph (b) of this section, a security interest in a security entitlement marked on the books of a Federal Reserve Bank shall have priority over any other interest in the securities. (2) In addition to the method provided in paragraph (c)(1) of this section, a security interest, including a security interest in favor of a Federal Reserve Bank, may be perfected by any method by which a security interest may be perfected under applicable law as described in § 615.5452(b) or § 615.5453 of this subpart. The perfection, effect of perfection or non-perfection and priority of a security interest are governed by that applicable law. A security interest in favor of a Federal Reserve Bank shall be treated as a security interest in favor of a clearing corporation in all respects under that law, including with respect to the effect of perfection and priority of the security interest. A Federal Reserve Bank Operating Circular shall be treated as a rule adopted by a clearing corporation for such purposes. [62 FR 67192, Dec. 20, 1996, as amended at 62 FR 53229, Oct. 14, 1997] ## Nearby sections - [12 C.F.R. § 615.5450 (2026) § 615.5450 Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5450.md) - [12 C.F.R. § 615.5451 (2026) § 615.5451 Book-entry and definitive securities.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5451.md) - [12 C.F.R. § 615.5452 (2026) § 615.5452 Law governing rights and obligations of Federal Reserve Banks, Farm Credit banks, and Funding Corporation; rights of any person against Federal Reserve Banks, Farm Credit banks, and Funding Corporation.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5452.md) - [12 C.F.R. § 615.5453 (2026) § 615.5453 Law governing other interests.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5453.md) - [12 C.F.R. § 615.5454 (2026) § 615.5454 Creation of participant's security entitlement; security interests.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5454.md) - [12 C.F.R. § 615.5455 (2026) § 615.5455 Obligations of the Farm Credit banks and the Funding Corporation; no adverse claims.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5455.md) - [12 C.F.R. § 615.5456 (2026) § 615.5456 Authority of Federal Reserve Banks.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5456.md) - [12 C.F.R. § 615.5457 (2026) § 615.5457 Withdrawal of eligible book-entry securities for conversion to definitive form.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5457.md) - [12 C.F.R. § 615.5458 (2026) § 615.5458 Waiver of regulations.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5458.md) - [12 C.F.R. § 615.5459 (2026) § 615.5459 Liability of Farm Credit banks, Funding Corporation and Federal Reserve Banks.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5459.md) - [12 C.F.R. § 615.5460 (2026) § 615.5460 Additional provisions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5460.md) - [12 C.F.R. § 615.5461 (2026) § 615.5461 Lost, stolen, destroyed, mutilated or defaced Farm Credit securities, including coupons.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5461.md) - [12 C.F.R. § 615.5462 (2026) § 615.5462 Restrictive endorsement of bearer securities.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5462.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P615_S615_5454. 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