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Financial Institution Letters

Deposit Insurance Assessments
Final Rule on Late Assessment Penalties
FIL-97-2006
November 9, 2006


Summary: The FDIC Board of Directors has approved the attached final rule to implement the Late Assessment Penalties provisions of the Federal Deposit Insurance Reform Act of 2005. The final rule takes effect on January 1, 2007.

Highlights:

The Federal Deposit Insurance Reform Act of 2005 changed the Federal Deposit Insurance Act provisions for failing to timely pay assessments.
  • An institution that fails to timely pay its assessment is subject to a penalty of not more than 1 percent of the late assessment amount due for each day that the assessment is unpaid.
  • For late assessment payments less than $10,000, a penalty of not more than $100 may be imposed for each day the assessment is unpaid.
  • The FDIC, in its sole discretion, may compromise or modify a late assessment penalty upon finding that good cause prevented timely payment.

Distribution:
All FDIC-insured Institutions

Suggested Routing:
Chief Executive Office
President
Chief Financial Officer

Related Topics:
FDIC Rules of Practice and Procedure, 12 CFR 308, Subpart H

Attachment:
Final Rule - PDF 55k (PDF Help)

Contact:
Donna M. Saulnier, Senior Assessment Policy Specialist, Division of Finance, (703) 562-6167
William V. Farrell, Manager, Assessments Section, Division of Finance, (703) 562-6168
Christopher Bellotto, Counsel, Legal Division, (202) 898-3801
Stephen T. Weisweaver, Attorney, Legal Division, (202) 898-6976
assessments@fdic.gov

Printable Format:
FIL-97-2006 - PDF 27k (PDF Help)

Note:
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2006/index.html.

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).



Last Updated 11/09/2006 communications@fdic.gov