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PUBLIC LAW 111–203—JULY 21, 2010 124 STAT. 1435

SEC. 170. SAFE HARBOR. 12 USC 5370.
(a) REGULATIONS.—The Board of Governors shall promulgate Criteria.
regulations on behalf of, and in consultation with, the Council
setting forth the criteria for exempting certain types or classes
of U.S. nonbank financial companies or foreign nonbank financial
companies from supervision by the Board of Governors.
(b) CONSIDERATIONS.—In developing the criteria under sub-
section (a), the Board of Governors shall take into account the
factors for consideration described in subsections (a) and (b) of
section 113 in determining whether a U.S. nonbank financial com-
pany or foreign nonbank financial company shall be supervised
by the Board of Governors.
(c) RULE OF CONSTRUCTION.—Nothing in this section shall be
construed to require supervision by the Board of Governors of
a U.S. nonbank financial company or foreign nonbank financial
company, if such company does not meet the criteria for exemption
established under subsection (a).
(d) REVISIONS.—
(1) IN GENERAL.—The Board of Governors shall, in consulta- Review.
tion with the Council, review the regulations promulgated
under subsection (a), not less frequently than every 5 years,
and based upon the review, the Board of Governors may revise
such regulations on behalf of, and in consultation with, the
Council to update as necessary the criteria set forth in such
regulations.
(2) TRANSITION PERIOD.—No revisions under paragraph (1)
shall take effect before the end of the 2-year period after the
date of publication of such revisions in final form.
(e) REPORT.—The Chairman of the Board of Governors and
the Chairperson of the Council shall submit a joint report to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Represent-
atives not later than 30 days after the date of the issuance in
final form of regulations under subsection (a), or any subsequent
revision to such regulations under subsection (d), as applicable.
Such report shall include, at a minimum, the rationale for exemp-
tion and empirical evidence to support the criteria for exemption.

SEC. 171. LEVERAGE AND RISK-BASED CAPITAL REQUIREMENTS. 12 USC 5371.
(a) DEFINITIONS.—For purposes of this section, the following
definitions shall apply:
(1) GENERALLY APPLICABLE LEVERAGE CAPITAL REQUIRE-
MENTS.—The term ‘‘generally applicable leverage capital
requirements’’ means—
(A) the minimum ratios of tier 1 capital to average
total assets, as established by the appropriate Federal
banking agencies to apply to insured depository institutions
under the prompt corrective action regulations imple-
menting section 38 of the Federal Deposit Insurance Act,
regardless of total consolidated asset size or foreign finan-
cial exposure; and
(B) includes the regulatory capital components in the

LAWS numerator of that capital requirement, average total assets in the denominator of that capital requirement, and the required ratio of the numerator to the denominator.PUBLIC with on anorris VerDate Nov 24 2008 00:54 Jul 29, 2010 Jkt 089139 PO 00203 Frm 00061 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203