12 U.S.C. § 371b–2 — Interbank liabilities

(a) The purpose of this section is to limit the danger that a large depository institution's failure — whether or not it's federally insured — would pose to insured depository institutions that are exposed to it.

(b) The Board must issue rules or orders setting standards that limit how much risk an insured depository institution can take on from its "exposure" to any other depository institution.

(c) "Exposure" is defined as: (1) In general — an insured depository institution's exposure to another depository institution includes: (A) every extension of credit^* to that other institution, no matter what it's called, including deposits at that institution, buying securities or assets from it under a repurchase agreement, and guarantees, acceptances, or letters of credit issued on its behalf; (B) buying or investing in securities that institution issued; (C) accepting securities that institution issued as collateral for a loan to anyone; and (D) any other similar transaction the Board decides by regulation counts as exposure. (2) The Board can, at its discretion, exempt transactions from this definition if doing so serves the public interest and fits this section's purpose. (3) A transaction between an insured institution and any person^* counts as a transaction with another depository institution, to the extent the money from it is used for, or handed to, that other institution.

(d) "Insured depository institution" means the same thing it means under section 1813 of this title.

(e) The Board can issue whatever regulations and orders — including definitions — are needed to run and carry out this section. The appropriate federal banking agency enforces those regulations under section 1818 of this title.