12 CFR § 223.56 - What transactions are exempt from the market-terms requirement of section 23B?

---
identifier: "/us/cfr/t12/s223.56"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 223.56 - What transactions are exempt from the market-terms requirement of section 23B?"
title_number: 12
title_name: "Banks and Banking"
section_number: "223.56"
section_name: "What transactions are exempt from the market-terms requirement of section 23B?"
chapter_name: "FEDERAL RESERVE SYSTEM"
subchapter_number: "A"
subchapter_name: "BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM"
part_number: "223"
part_name: "TRANSACTIONS BETWEEN MEMBER BANKS AND THEIR AFFILIATES (REGULATION W)"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 371c(b)(1)(E), (b)(2)(A), and (f), 371c-1(e), 1828(j), 1468(a), and section 312(b)(2)(A) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5412)."
regulatory_source: "67 FR 76604, Dec. 12, 2002, unless otherwise noted."
cfr_part: "223"
---


# 223.56 What transactions are exempt from the market-terms requirement of section 23B?

The following transactions are exempt from the market-terms requirement of § 223.51.

(a) *Purchases of certain asset-backed commercial paper.* Purchases of asset-backed commercial paper from an affiliated SEC-registered open-end investment company that holds itself out as a money market mutual fund under SEC Rule 2a-7 (17 CFR 270.2a-7), if the member bank:

(1) Purchases the asset-backed commercial paper on or after September 19, 2008;

(2) Pledges the asset-backed commercial paper to a Federal Reserve Bank to secure financing from the asset-backed commercial paper lending facility (AMLF) established by the Board on September 19, 2008; and

(3) Has not been specifically informed by the Board, after consultation with the member bank's appropriate Federal banking agency, that the member bank may not use this exemption.

(b) [Reserved]

[Reg. W, 74 FR 6228, Feb. 6, 2009]