§ 50.77 Interest rate swaps entered into by community development financial institutions.  


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  • (a) For the purposes of this section, the term community development financial institution means an entity that satisfies the definition in section 103(5) of the Community Development Banking and Financial Institutions Act of 1994, and is certified by the U.S. Department of the Treasury's Community Development Financial Institution Fund as meeting the requirements set forth in 12 CFR 1805.201(b).

    (b) A swap entered into by a community development financial institution shall not be subject to the clearing requirement of section 2(h)(1)(A) of the Act and this part if:

    (1) The swap is a U.S. dollar denominated interest rate swap in the fixed-to-floating class or the forward rate agreement class of swaps that would otherwise be subject to the clearing requirement under §50.4(a);

    (2) The total aggregate notional value of all swaps entered into by the community development financial institution during the 365 calendar days prior to the day of execution of the swap is less than or equal to $200,000,000;

    (3) The swap is one of ten or fewer swap transactions that the community development financial institution enters into within a period of 365 calendar days;

    (4) One of the counterparties to the swap reports the swap to a swap data repository pursuant to §§45.3 and 45.4 of this chapter, and reports all information as provided in paragraph (b) of §50.50 to a swap data repository; and

    (5) The swap is used to hedge or mitigate commercial risk as provided in paragraph (c) of §50.50.