§ 563.9 - Eurodollar deposits.

(a) Definitions. As used in this section:

(1) Eurodollar certificate means a certificate account, denominated in United States dollars, evidencing a Eurodollar deposit;

(2) Eurodollar deposit means a deposit by a person who is not a United States person;

(3) United States person means any national or resident of the United States of America, its territories and possessions, including any corporation, trust, estate, or other entity organized under the laws thereof or of any political subdivision thereof; and

(4) Participation means an interest or participation in a Eurodollar certificate.

(b) General. To the extent that it has legal authority to do so, a savings association may issue Eurodollar certificates in conformity with this section and § 563.7 of this part.

(c) Collateralization of certificates. A savings association may give security for Eurodollar deposits subject to any notification or right of repurchase requirements that may be imposed by the FDIC.

(d) Requirements as to distribution. (1) In exercising authority under this section, a savings association shall require an undertaking in writing from each purchaser of a Eurodollar certificate or participation therein to the effect that:

(i) If the purchaser is not a dealer, he will not offer, sell or deliver such Eurodollar certificate(s) or participations therein directly or indirectly in the United States of America or its territories or possessions or to nationals or residents thereof, including any corporation, trust, estate or other entity organized under the laws thereof or of any political subdivision thereof; or

(ii) If the purchaser is a dealer, he has not offered, sold or delivered, and agrees that he will not offer, sell or deliver, any such Eurodollar certificate(s) or participations therein directly or indirectly in the United States of America or its territories or possessions or to nationals or residents thereof and he is not purchasing any such Eurodollar certificate(s) or participations therein for the account of any such nationals or residents. Further, if the purchaser is a dealer, he shall agree that he will require the undertaking required by paragraph (d)(1)(i) of this section on any sales of the Eurodollar certificate(s) or participations therein and that he will inform the issuing savings association promptly if any beneficial ownership by a United States person comes to his attention.

(2) Upon completion of the distribution of any Eurodollar certificates or participations therein, the lead or managing underwriter shall deliver to the issuing savings associations a certification as to the sale stating that to the knowledge of the underwriter no beneficial owner or owners of the Eurodollar certificate(s) or participants therein is a United States person; and, further, that the underwriter has not knowingly sold or offered for sale and will not sell or offer for sale, the Eurodollar certificate(s) or participations therein to any United States person.

(3) Upon issuance of any certificate under this section, the issuing savings association shall provide to the Office such information as the Office deems necessary to monitor effectively the use of the authority provided by this section.

(e) Requirements as to certificates. Each Eurodollar certificate and participation, including a temporary Eurodollar certificate or participation, shall bear on its face, in boldface type, a legend substantially in the following form:

(f) Pooling of certificates. A savings association may engage in pooling or participate in pooling funds, or soliciting or promoting pooled accounts, in connection with the issuance of a Eurodollar certificate in conformity with this section.