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Intraday Extensions of Credit

Regulation W exempts "intraday extensions of credit" from section 23A, except for the safety and soundness requirement. An intraday extension of credit is defined as an extension of credit to an affiliate that the lending bank expects to be repaid, sold, or terminated, or to qualify for a complete exemption from Regulation W, by the end of the bank’s U.S. business day. The availability of this exemption is conditioned on the bank’s establishment and maintenance of certain specified policies and procedures reasonably designed to manage the credit exposure arising from the bank’s intraday extensions of credit in a safe and sound manner.

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