Sale of Federal Funds Law and Legal Definition

According to 12 CFR 32.2 [Title 12 -- Banks and Banking; Chapter I -- Comptroller of the Currency, Department of the Treasury; Part 32 -- Lending Limits] sale of Federal funds means “any transaction between depository institutions involving the transfer of immediately available funds resulting from credits to deposit balances at Federal Reserve Banks, or from credits to new or existing deposit balances due from a correspondent depository institution.”