Standards for depository institutions holding securities of a Government-sponsored corporation for customers

The Secretary shall prescribe by regulation standards for the safeguarding and use of obligations that are government securities described in subparagraph (B) or (C) of section 3(a)(42) of the Securities Exchange Act of 1934. Such regulations shall apply only to a depository institution that is not a government securities broker or a government securities dealer and that holds such obligations as fiduciary, custodian, or otherwise for the account of a customer and not for its own account. Such regulations shall provide for the adequate segregation of obligations so held, including obligations which are purchased or sold subject to resale or repurchase.

(Added Pub. L. 99–571, title II, § 201(b)(1) , Oct. 28, 1986 , 100 Stat. 3223 ; amended Pub. L. 103–272, § 4(f)(1)(AA) , July 5, 1994 , 108 Stat. 1363 .)