Pub. L. 113-235, div. E, tit. VI, sec. 630

Sec. 630. Section 716 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (15 U.S.C. 8305) is amended—(1) in subsection (b)—(A) in paragraph (2)(B), by striking “insured depository institution” and inserting “covered depository institution”; and(B) by adding at the end the following:“(3) Covered depository institution.—The term ‘covered depository institution’ means—“(A) an insured depository institution, as that term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and“(B) a United States uninsured branch or agency of a foreign bank.”;(2) in subsection (c)—(A) in the heading for such subsection, by striking “Insured” and inserting “Covered”;(B) by striking “an insured” and inserting “a covered”;(C) by striking “such insured” and inserting “such covered”; and(D) by striking “or savings and loan holding company” and inserting “savings and loan holding company, or foreign banking organization (as such term is defined under Regulation K of the Board of Governors of the Federal Reserve System (12 CFR 211.21(o)))”;(3) by amending subsection (d) to read as follows:“(d) Only Bona Fide Hedging and Traditional Bank Activities Permitted.—“(1) In general.—The prohibition in subsection (a) shall not apply to any covered depository institution that limits its swap and security-based swap activities to the following:“(A) Hedging and other similar risk mitigation activities.—Hedging and other similar risk mitigating activities directly related to the covered depository institution’s activities.“(B) Non-structured finance swap activities.—Acting as a swaps entity for swaps or security-based swaps other than a structured finance swap.“(C) Certain structured finance swap activities.—Acting as a swaps entity for swaps or security-based swaps that are structured finance swaps, if—“(i) such structured finance swaps are undertaken for hedging or risk management purposes; or“(ii) each asset-backed security underlying such structured finance swaps is of a credit quality and of a type or category with respect to which the prudential regulators have jointly adopted rules authorizing swap or security-based swap activity by covered depository institutions.“(2) Definitions.—For purposes of this subsection:“(A) Structured finance swap.—The term ‘structured finance swap’ means a swap or security-based swap based on an asset-backed security (or group or index primarily comprised of asset-backed securities).“(B) Asset-backed security.—The term ‘asset-backed security’ has the meaning given such term under section 128 STAT. 2379 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).”;(4) in subsection (e), by striking “an insured” and inserting “a covered”; and(5) in subsection (f)—(A) by striking “an insured depository” and inserting “a covered depository”; and(B) by striking “the insured depository” each place such term appears and inserting “the covered depository”.