69U-100.003. Definitions

For purposes of Rule 69U-100.004, F.A.C., the following definitions apply:

(1) “International banking facility deposit,” or “IBF time deposit,” means a deposit, placement, borrowing or similar obligation represented by a promissory note, acknowledgement of advance, or similar instrument that is not issued in negotiable or bearer form and which can be in currencies other than U.S. dollars; and,

(a)1. That must remain on deposit at the IBF at least overnight; and,

2. That is issued to:

a. Any office located outside the United States of another depository institution organized under the laws of the United States or of an Edge or Agreement Corporation;

b. Any office located outside the United States of a foreign bank;

c. A United States office or a non-United States office of the entity establishing the IBF;

d. Another IBF; or

e. A foreign national government, or an agency or instrumentality thereof (other than states, provinces, municipalities, or other regional or local governmental units or agencies or instrumentalities thereof) engaged principally in activities which are ordinarily performed in the United States by governmental entities; an international entity of which the United States is a member; or any other foreign, international or supranational entity specifically designated by the Federal Reserve Board as exempt from 12 C.F.R. §204.125 (1-1-2020 Edition), http://www.flrules.org/Gateway/reference.asp?No=Ref-12641, adopted and incorporated herein by reference and also available at the OFR’s website at www.flofr.com; or

(b)1. That is payable:

a. On a specified date not less than two business days after the date of deposit;

b. Upon expiration of a specified period of time not less than two business days after the date of deposit; or

c. Upon written notice that actually is required to be given by the depositor not less than two business days prior to the date of withdrawal;

2. That represents funds deposited to the credit of a non-United States resident or a foreign branch, office, subsidiary, affiliate, or other foreign establishment (“foreign affiliate”) controlled by one or more domestic corporations provided that such funds are used only to support the operations outside the United States of the depositor or of its affiliates located outside the United States; and,

3. That is maintained under an agreement or arrangement under which no deposit or withdrawal of less than $100,000 is permitted, except that a withdrawal of less than $100,000 is permitted if such withdrawal closes an account. For purposes of this clause, interest payments are exempted from the deposit and withdrawal limitations.

(2) International Banking Facility Borrowing or “IBF Borrowing” means borrowing represented by a promissory note, acknowledgement of advance or similar instrument that is not issued in negotiable or bearer form.

(a)1. That said borrowing must remain on deposit at the IBF at least overnight; and,

2. That is issued to:

a. Any office located outside the United States of another depository institution organized under the laws of the United States or of an Edge or Agreement Corporation;

b. Any office located outside the United States of a foreign bank;

c. A United States office or a non-United States office of the entity establishing the IBF; or

d. Another IBF; or

(b)1. That is payable:

a. On a specified date not less than two business days after the date of the borrowing; or

b. Upon expiration of a specified period of time not less than two business days after the date of the borrowing;

c. Upon written notice required to be given by the lender not less than two business days prior to the date of approval;

2. That represents borrowed funds deposited to the credit of a non-United States resident or a foreign branch, office, subsidiary, affiliate, or other foreign establishment (“foreign affiliate”) controlled by one or more domestic corporations provided that such funds are used only to support the operations outside the United States of the depositor or of its affiliates located outside of the United States; and,

3. That is maintained under an agreement or arrangement under which no deposit or withdrawal of less than $100,000 is permitted, except that a withdrawal of less than $100,000 is permitted if such withdrawal closes an account. For purposes of this clause, interest payments are exempted from the deposit and withdrawal limitations.

(3) “International banking facility extension of credit,” or “IBF loan,” means any transaction where an IBF supplies funds by making a loan, or placing funds in a deposit account. Such transactions may be represented by a promissory note, security, acknowledgement of advance, due bill, repurchase agreement, or any other form of credit transaction. Such credit may be extended only to:

(a) Any office located outside the United States of another depository institution organized under the laws of the United States or of any Edge or Agreement Corporation;

(b) Any office located outside the United States of a foreign bank;

(c) A United States or a non-United States office of the institution establishing the IBF;

(d) Another IBF;

(e) A foreign national government, or an agency or instrumentality thereof (other than states, provinces, municipalities, or other regional or local governmental units or agencies or instrumentalities thereof) engaged principally in activities which are ordinarily performed in the United States by governmental entities; an international entity of which the United States is a member; or any other foreign, international or supranational entity Specifically designated by the Federal Reserve Board as exempt from 12 C.F.R. §204.125 (1-1-2020 Edition), incorporated herein by reference; or

(f) A non-United States resident or a foreign branch, office, subsidiary, affiliate or other foreign establishment (“foreign affiliate”) controlled by one or more domestic corporations provided that the funds are used only to finance the operations outside the United States of the borrower or of its affiliates located outside the United States.

(4) Solely for the purpose of Section 220.63(5), F.S., the terms “banking facility deposits,” “borrowings,” and “extensions of credit,” fall within the general definition of the terms “loans to foreign persons,” “deposits with foreign persons,” and “foreign exchange trading and hedging transactions,” as such terms are used in Section 220.63(5)(b), F.S. Further, solely for the purpose of Section 220.62(3), F.S., the terms “banking facility deposits,” “borrowings,” and “extensions of credit,” include, without limitation, the following transactions:

(a) Letters of credit;

(b) Acceptances;

(c) Currency transactions;

(d) Currency transfers;

(e) Participations;

(f) Investments in securities;

(g) Trading in securities;

(h) Activities of international representative offices and international administrative offices; and,

(i) Any other international transactions of any bank or banking organization, as defined in Sections 220.62(1) and (4), F.S., provided that the income from the above transactions is derived from sources outside the United States.

(5) Notwithstanding the provisions of subsection (4), “deposits,” “borrowings,” and “extensions of credit,” as defined in subsection (4), shall also include:

(a) All transactions by and between banking organizations, as defined in Section 220.62(4), F.S., provided that the income from such transactions is derived by non-United States banking organizations; and,

(b) International banking facility transactions as defined in subsections (1), (2) and (3) of this rule.

Rulemaking Authority 655.012(2), 655.071 FS. Law Implemented 220.62(3), 220.63(5), 655.071 FS. History–New 1-24-82, Amended 1-30-84, Formerly 3C-17.02, Amended 5-27-87, Formerly 3C-17.002, 3C-100.003, Amended 1-18-21.