Pub. L. 113-235, div. E, tit. VI (as amended)

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 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.