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FDIC Federal Register Citations

[Federal Register: October 14, 2005 (Volume 70, Number 198)]
[Proposed Rules]              
[Page 60015-60019]
From the Federal Register Online via GPO Access
[DOCID:fr14oc05-15]                        

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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 307

RIN 3064-AC93

 
Notification of Changes of Insured Status

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice of proposed rulemaking.

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SUMMARY: The FDIC is proposing to revise its regulation addressing the
certification to the FDIC of the assumption of deposits and the
notification to depositors of a change in insured status. The proposed
revision would clarify that a certification is required only when all
of an insured institution's deposit liabilities have been assumed and
that no certification is required for partial deposit assumptions. The
proposal would require the institution whose deposits are transferred,
or its legal successor, to provide the notification rather than the
institution assuming the deposits. Finally, the proposal would also
clarify the circumstances in which the FDIC would issue orders
reflecting that an institution's insured status has been terminated
under section 8(q) of the Federal Deposit Insurance Act. Generally, no
orders would be issued when an insured institution transfers all of its
deposits and its authority to engage in banking is contemporaneously
cancelled, nor when the FDIC has been appointed receiver for an insured
institution in default.

DATES: Written comments on the Proposal must be received by the FDIC on
or before December 13, 2005 for consideration.

ADDRESSES: Interested parties are invited to submit written comments to
the FDIC by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.

Follow the instructions for submitting comments.
     Agency Web Site: http://www.fdic.gov/regulations/laws/federal/propose.html.
 Follow the instructions for submitting comments.     E-mail: comments@fdic.gov.
Include ``Part 307--Notification of Changes of Insured Status'' in the subject line of the
message.
     Mail: Robert E. Feldman, Executive Secretary, Attention:
Comments/Legal ESS, Federal Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
     Hand Delivery: Comments may be hand-delivered to the guard
station located at the rear of the FDIC's 550 17th Street building
(accessible from F Street) on business days between 7 a.m. and 5 p.m.
    Instructions: All submissions must include the agency name and use
the title ``Part 307--Notification of Changes of Insured Status.''
    All comments received will be posted without change to, http://www.fdic.gov/regulations/laws/federal/propose.html
, including any

personal information provided.
    Comments may be inspected and photocopied in the FDIC Public
Information Center, Room 100, 801 17th Street, NW., Washington, DC,
between 9 a.m. and 4:30 p.m. on business days.

FOR FURTHER INFORMATION CONTACT: Kevin W. Hodson, Chief, Risk
Management and Applications Section II, Division of Supervision and
Consumer Protection, (202) 898-6919; Donald R. Hamm, Review Examiner,
Division of Supervision and Consumer Protection, (202) 898-3528; Thomas
Nixon, Counsel, Legal Division, (202) 898-8766; Federal Deposit
Insurance Corporation, 550 17th Street, NW., Washington, DC 20429.

SUPPLEMENTARY INFORMATION:

I. Background

    The FDIC's Part 307 contains two sections. Section 307.1 implements
section 8(q) of the Federal Deposit Insurance Act (FDI Act) (12 U.S.C.
1818(q)), which states:

    Whenever the liabilities of an insured depository institution
for deposits shall have been assumed by another insured depository
institution or depository institutions, whether by way of merger,
consolidation, or other statutory assumption, or pursuant to
contract
    (1) the insured status of the depository institution whose
liabilities are so assumed shall terminate on the date of receipt by
the Corporation of satisfactory evidence of such assumption;
    (2) the separate insurance of all deposits so assumed shall
terminate at the end of six months from the date such assumption
takes effect or, in the case of any time deposit, the earliest
maturity date after the six-month period. * * *

    All assumptions of insured deposit liabilities, whether a ``total''
assumption of all the transferring institution's deposits or an
assumption of only a portion of its deposits (a ``partial''
assumption), by an insured institution are subject to the Bank Merger
Act and require the prior written approval of the ``responsible
agency.'' \1\ The responsible agency is the primary Federal regulator
of the assuming institution.
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    \1\ FDI Act section 18(c)(2), (12 U.S.C. 1828(c)(2)), reads as
follows:
    No insured depository institution shall merge or consolidate
with any other insured depository institution or, either directly or
indirectly, acquire the assets of, or assume liability to pay any
deposits made in, any other insured depository institution except
with the prior written approval of the responsible agency. * * *
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    The current section 307.1 was last revised in 1983. It requires an
assuming institution to provide a certification to the FDIC
``[w]henever the deposit liabilities of an insured bank * * * are
assumed by another insured bank. * * * '' In 1997, the FDIC published a
notice of proposed rulemaking concerning Part 307 which was not made
final.\2\ The preamble to that proposed rulemaking indicated that the
FDIC's view of the current text of section 307.1 was that
certifications should be made for both partial and total assumptions.
Since the text of section 307.1 does not clearly distinguish between
partial and total assumptions, institutions may be unsure whether a
certification is required for partial deposit assumptions.
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    \2\ 62 FR 26431, May 14, 1997. That proposal is withdrawn.
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    An insured depository institution that proposes to voluntarily
terminate its insured status without transferring all of its deposits
to an FDIC insured institution must obtain the FDIC's permission. (FDI
Act section 18(i)(3), 12 U.S.C. 1828(i)(3)).\3\ Section 307.2

[[Page 60016]]

applies section 8(a)(6) of the FDI Act \4\ to voluntary terminations of
insured status. Under section 307.2, an insured bank or insured branch
of a foreign bank seeking to voluntarily terminate its insured status,
but whose deposits will not be assumed by another insured depository
institution, must provide notice to its depositors of the date its
insured status will terminate. The regulation authorizes the
appropriate FDIC Regional Director of the Division of Supervision and
Consumer Protection to approve the form, manner, and timing of the
notice to depositors and provides authority to the FDIC to take such
other steps as may be deemed necessary for the protection of the
institution's depositors.
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    \3\ This proposal would not affect the requirements for FDIC
approval of voluntary deposit insurance terminations under sections
8(a) and 8(p) of the FDI Act and for prior written consent for the
conversion of an insured depository institution into a noninsured
bank or institution as required by section 18(i)(3).
    \4\ 12 U.S.C. 1818(a)(6). Section 8(a)(6) reads as follows:
    PUBLICATION OF NOTICE OF TERMINATION.--The Corporation may
publish notice of such termination and the depository institution
shall give notice of such termination to each of its depositors at
his last address of record on the books of the depository
institution, in such manner and at such time as the Board of
Directors may find to be necessary and may order for the protection
of depositors.
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II. The Proposed Rule

A. Revised Caption of the Part

    The caption of the Part would be changed from ``Notification of
Changes of Insured Status'' to ``Certification of Assumption of
Deposits and Notification of Changes of Insured Status.'' This would
make the caption more descriptive of the content of the Part and alert
institutions that the Part addresses deposit assumptions as well as
changes in insured status.

B. Section 307.1--Scope and Purpose

    The current Part 307 does not have a scope and purpose section. In
addition, since Part 307 has not been revised since 1983, sections
307.1 and 307 .2 continue to refer to an ``insured bank'' rather than
to an ``insured depository institution,'' consistent with the changes
made to the FDIC's responsibilities and terminology by sections 201 and
202 of the Financial Institutions Reform, Recovery, and Enforcement Act
of 1989.\5\ The proposed rule would add a new section 307.1 to indicate
that the Part applies to insured depository institutions as defined in
section 3(c)(2) of the FDI Act,\6\ and to describe the purpose of the
Part. The existing sections 307.1 and 307.2 would be redesignated as
sections 307.2 and 307.3, respectively.
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    \5\ Public Law 101-73, 103 Stat. 103.
    \6\ 12 U.S.C. 1813(c)(2). An ``insured depository institution''
is defined as ``any bank or savings association the deposits of
which are insured by the Corporation pursuant to this [the FDI]
Act.'' Federal branches and insured branches are included in the
definition of ``bank'' in section 3(a)(1)(A) (12U.S.C.
1813(a)(1)(A)).
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C. Section 307.2--Certification of Assumption of Deposit Liabilities

    When certification is required. As noted, there may be some
ambiguity whether the current certification requirement applies only to
total deposit assumptions, or also to partial assumptions. Today's
proposed rule would clarify that a certification is required only when
there has been a total assumption of deposits. No certification would
be required in the case of a partial transfer of deposits, for example
when a single branch of an institution is sold. Clarifying that no
certification is necessary for a partial assumption is consistent with
the FDIC's goal of reducing regulatory burden pursuant to Section 2222
of the Economic Growth and Regulatory Paperwork Reduction Act of 1996
\7\ while obtaining sufficient information for the proper
implementation of section 8(q) of the FDI Act.\8\
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    \7\ Public Law 104-208, Sept. 30, 1996, 12 U.S.C. 3311.
    \8\ The 1997 proposed rule had envisioned that the certification
of partial assumption could be used by the FDIC to determine when
the separate deposit insurance coverage provided by section 8(q) on
the assumed deposits ended. However, the FDIC can rely on other
sources of information to make a separate deposit insurance coverage
determination when necessary (for example, from information provided
directly to the FDIC by insured depository institutions or by other
Federal banking agencies, as well from the underlying transactional
documents).
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    There may be situations in which an insured depository institution
disposes of all of its deposits through a series of simultaneous
partial deposit assumptions involving multiple assuming institutions,
rather than through a single total deposit assumption by one assuming
institution. An example of this would be where all of the deposits of a
transferring institution were assumed through a series of branch
acquisitions by different assuming institutions that occurred on the
same day. Viewed cumulatively, these partial assumptions would amount
to a total assumption of the deposits of the transferring institution
making certification necessary. In this situation, today's proposal
would require that the transferring institution file a certification.
    The current section 307.1 also does not distinguish between a
deposit assumption involving operating institutions versus an
assumption involving an institution in default and in FDIC
receivership. The FDIC plays an integral role in the transfer and
assumption of deposit liabilities when it is appointed as receiver for
an insured depository institution in default, and has in its possession
information regarding the deposit transfer and assumption transaction.
Section 307.2(a) of today's proposal would create an explicit exception
from the certification requirement when the deposit liabilities are
being transferred from an insured depository institution in default and
the FDIC has been appointed as receiver.
    Who must make the certification. The proposed rule would require
the transferring institution, or its legal successor (``transferring
institution''), rather than the assuming institution, to provide
certification to the FDIC. Generally, an institution transferring
deposit liabilities will be in a better position than the assuming
institution to know whether the transfer constitutes all of its
deposits, thus triggering application of Part 307 and FDI Act section
8(q). This would be particularly true in the case of an institution
that transfers all of its deposit liabilities through multiple
transfers to a variety of assuming institutions. In such a situation,
it may be difficult for the assuming institutions to have sufficient
knowledge of key facts in order to make accurate certifications. In a
merger or consolidation there may be only one surviving entity which is
the legal successor to both the transferring and assuming institutions.
In such instances, that surviving entity would provide any required
certification.
    Content and form of the certification. Proposed section 307.2(b)
would establish the certification's content. The requirements are
similar to the current section 307.1 but clarify certain issues, such
as where certifications should be filed with the FDIC, and the need for
the certification to be on the letterhead of the transferring
institution or its legal successor and to be signed by an authorized
official. In addition, the proposal would require an institution that
is contemporaneously relinquishing its authority to engage in the
business of receiving deposits to provide the date that its authority
terminated (or will terminate) as well as the method of termination
(e.g., whether by the surrender of its charter, the cancellation of its
charter or license to conduct a banking business, or otherwise). As
discussed below, this information would be used by the FDIC to evaluate
the need to issue an order terminating insurance. To assist the
industry with compliance, the proposed rule provides a template
(Appendix A) that may be used to satisfy with proposed section 307.2
certification requirements.
    Evidence of Assumption. The current section 307.1 states that a
certification made pursuant to section 307.1 ``shall

[[Page 60017]]

be considered satisfactory evidence of the assumption.'' Proposed
section 307.2(d) makes a similar statement for accurate certifications
that have been made consistent with the requirements of proposed
section 307.2 (a), (b) and (c). The term ``accurate'' has been added to
indicate that a materially inaccurate certification would not trigger
the automatic termination of the transferring institution's insured
status. The proposed section 307.2(d) would also allow the FDIC to
consider other evidence, in addition to a certification, of a total
deposit assumption to constitute satisfactory evidence of an assumption
for the purposes of section 8(q).
    Issuance of an Order. Section 8(q) can be construed as
automatically terminating an institution's insured status upon the
FDIC's receipt of satisfactory evidence of a total assumption. The FDIC
did not generally issue orders terminating the insured status of
transferring institutions before 1983 when the rule was last revised,
and the current section 307.1 does not discuss the issuance of such
orders.\9\ In most cases of total deposit assumptions, the transferring
institution's authority to engage in banking is contemporaneously
cancelled. In such a situation, an FDIC order confirming the
termination of insurance has no practical effect and is unnecessary.
Accordingly, under the proposed rule no order confirming the
termination of an institution's insured status would generally be
issued when the transferring institution's authority to engage in
banking is cancelled contemporaneously (i.e., generally within five
business days after all deposits have been assumed). The proposed rule
also would not require orders when deposits are transferred and assumed
after a default when the FDIC has been appointed as receiver.
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    \9\ The 1997 proposed rule would have provided that the FDIC
would generally issue an order terminating the insured status of an
institution that transferred all of its deposits.
---------------------------------------------------------------------------

    The proposed rule would provide for the issuance of an FDIC order
confirming the termination of the insured status of a transferring
institution in the relatively limited circumstance in which a total
transfer of deposit liabilities has occurred but the transferring
institution's charter is not contemporaneously cancelled. Absent the
entry of an order confirming the termination of insured status, an
institution in such a situation might attempt to resume accepting
deposits sometime after the assumption transaction occurs; an
institution might also attempt to sell its charter, which could allow
what is in fact a new entity to conduct banking operations without
always requiring FDIC review and approval.\10\
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    \10\ The transfer of the charter would require prior approval
under the Bank Merger Act or the Change in Bank Control Act.
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D. Section 307.3--Notice to Depositors When Insurance Is Voluntarily
Terminated and Deposits Are Not Assumed

    As noted earlier, a bank that has obtained the FDIC's permission
under sections 8(a), 8(p) or 18(i)(3) of the FDI Act to terminate its
insured status without transferring all of its deposits to an FDIC
insured institution is required by the current section 307.2 to provide
notice to each of its depositors. A copy of this notice must be
provided to and approved by the appropriate Regional Director of the
Division of Supervision and Consumer Protection prior to the notice
being distributed to the institution's depositors. The proposed rule
would clarify that the notice must be on the institution's letterhead,
signed by a duly authorized officer and sent to the depositor's last
known address on the institution's books. To assist the industry with
compliance, the proposed rule provides a template (Appendix B) that may
be used to satisfy with proposed section 307.3 certification
requirements.

III. Regulatory Analysis and Procedure

A. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (44 U.S.C. 3501 et
seq.) the FDIC may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid Office of Management and Budget (OMB) control number.
The collection of information contained in this proposed rule has been
submitted to OMB for review.

ADDRESSES: Interested parties are invited to submit written comments to
the FDIC concerning the Paperwork Reduction Act implications of this
proposal. Such comments should refer to ``Notification of Changes of
Insured Status, 3064-0124.'' Comments on Paperwork Reduction Act issues
may be submitted by any of the following methods:
http://www.FDIC.gov/regulations/laws/federal/propose.html..     
E-mail: comments@fdic.gov. Include ``Notification of

Changes of Insured Status, 3064-0124'' in the subject line of the
message.
     Mail: Thomas Nixon (202-898-8766), Counsel, Federal
Deposit Insurance Corporation, 550 17th Street, NW., Washington, DC
20429.
     Hand Delivery: Comments may be hand-delivered to the guard
station at the rear of the 17th Street Building (located on F Street),
on business days between 7 a.m. and 5 p.m.
     A copy of the comments may also be submitted to the OMB
desk officer for the FDIC: Mark Menchik, Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 3208, Washington, DC 20503, or by electronic mail
to mmenchik@omb.eop.gov.
    Comment is solicited on:
    (1) Whether the proposed collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
    (2) The accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used;
    (3) The quality, utility, and clarity of the information to be
collected; and
    (4) Ways to minimize the burden of the collection of information on
those who are to respond, including the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology; e.g., permitting electronic
submission of responses.
    (5) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchases of services to provide information.
    Title of the collection: The proposed rule will modify an
information collection previously approved by OMB titled ``Notification
of Changes of Insured Status'' under control number 3064-0124. The
collection's title would be changed to ``Certification of Assumption of
Deposits and Notification of Changes of Insured Status.''
    Summary of the current collection: The collection consists of two
parts: a certification that an insured depository institution provides
when it has assumed the deposit liabilities of another insured
institution; and a notification to depositors that an insured
institution provides if it has obtained FDIC approval to voluntarily
terminate its insured status without an assumption of deposits.
    Need and use of the information: The certification is required to
implement section 8(q) of the FDI Act to determine when the insured
status of an institution is terminated based on an assumption of its
deposits. The depositor notification, required by Part 307 informs
depositors

[[Page 60018]]

that the insured status of their deposits in the institution will
terminate.
    Proposed changes to the collection: The proposed rule will modify
the collection by eliminating certifications of assumption for partial
assumptions of deposits and will require certifications to be made by
the transferring institution rather than the assuming institution. No
changes are proposed in the notice to depositors.
    Respondents: Insured depository institutions.
    Frequency of response: Occasional.
    Annual burden estimate: Number of certifications: 280; number of
depositor notices: 5. Average time to prepare a certification: one
quarter hour; depositor notice: 1 hour. Total annual burden: 75 hours.

B. Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.) the FDIC certifies that this proposed rule will not
have a significant economic impact on a substantial number of small
entities. The proposed rule would reduce regulatory burden by
eliminating the need for a certification to be filed with the FDIC when
the liability for some, but not all, of the deposits of an insured
institution are transferred to another institution. A certification
requires a minimal amount of time and resources since it reports
information readily available to the institution making the
certification.

List of Subject in 12 CFR Part 307

    Bank deposit insurance, Reporting and recordkeeping requirements.

    The Board of Directors of the Federal Deposit Insurance Corporation
hereby proposes to revise Part 307 of Title 12 of the Code of Federal
Regulations to read as follows:

PART 307--CERTIFICATION OF ASSUMPTION OF DEPOSITS AND NOTIFICATION
OF CHANGES OF INSURED STATUS

Sec.
307.1 Scope and purpose.
307.2 Certification of assumption of deposit liabilities.
307.3 Notice to depositor when insured status is voluntarily
terminated and deposits are not assumed.
Appendix A to Part 307--[Transferring Institution Letterhead]
Appendix B to Part 307--[Institution Letterhead]

    Authority: 12 U.S.C. 1818(a)(6); 1818(q); and 1819(a) [Tenth].


Sec.  307.1  Scope and purpose.

    (a) Scope. This Part applies to all insured depository
institutions, as defined in section 3(c)(2) of the Federal Deposit
Insurance Act (FDI Act) (12 U.S.C. 1813(c)(2)).
    (b) Purpose. This Part sets forth the rules governing: (1) The time
and manner for providing certification to the FDIC regarding the
assumption of all of the deposit liabilities of an insured depository
institution by one or more insured depository institutions; and (2) The
notification that an insured depository institution shall provide its
depositors when a depository institution's insured status is being
voluntarily terminated without its deposits being assumed by one or
more insured depository institutions.


Sec.  307.2  Certification of assumption of deposit liabilities.

    (a) When certification is required. Whenever all of the deposit
liabilities of an insured depository institution are assumed by one or
more insured depository institutions by merger, consolidation, other
statutory assumption, or by contract, the transferring insured
depository institution, or its legal successor, shall provide an
accurate written certification to the FDIC that its deposit liabilities
have been assumed. No certification shall be required when deposit
liabilities are assumed by an operating insured depository institution
from an insured depository institution in default, as defined in
section 3(x)(1) of the FDI Act (12 U.S.C. 1813(x)(1)), and that has
been placed under FDIC receivership.
    (b) Certification requirements. The certification required by
paragraph (a) of this section shall be provided on official letterhead
of the transferring insured depository institution or its legal
successor, signed by a duly authorized official, and state the date the
assumption took effect. The certification shall indicate the date on
which the transferring institution's authority to engage in banking has
terminated or will terminate as well as the method of termination
(e.g., whether by the surrender of its charter, by the cancellation of
its charter or license to conduct a banking business, or otherwise).
The certification may follow the form contained in appendix A of this
part. In a merger or consolidation where there is only one surviving
entity which is the legal successor to both the transferring and
assuming institutions, the surviving entity shall provide any required
certification.
    (c) Filing. The certification required by paragraph (a) of this
section shall be provided within 30 calendar days after the assumption
takes effect, and shall be submitted to the appropriate Regional
Director of the FDIC's Division of Supervision and Consumer Protection,
as defined in 12 CFR 303.2(g).
    (d) Evidence of assumption. The receipt by the FDIC of an accurate
certification for a total assumption as required by paragraphs (a), (b)
and (c) of this section shall constitute satisfactory evidence of such
deposit assumption, as required by section 8(q) of the FDI Act (12
U.S.C. 1818(q)), and the insured status of the transferring institution
shall terminate on the date of the receipt of the certification. In
appropriate circumstances, the FDIC, in its sole discretion, may
require additional information, or may consider other evidence of a
deposit assumption to constitute satisfactory evidence of such
assumption for purposes of section 8(q).
    (e) Issuance of an order. The Executive Secretary, upon request
from the Director of the Division of Supervision and Consumer
Protection and with the concurrence of the General Counsel, or their
respective designees, shall issue an order confirming that the insured
status of the transferring insured depository institution has been
terminated as of the date of receipt by the FDIC of satisfactory
evidence of such assumption, pursuant to section 8(q) of the FDI Act
and this regulation. Generally, no order shall be issued, under this
paragraph, and insured status shall be cancelled by operation of law:
    (1) If the charter of the transferring institution has been
cancelled, revoked, rescinded, or otherwise terminated by operation of
applicable state or federal statutes or regulations, or by action of
the chartering authority for the transferring institution essentially
contemporaneously, that is, generally within five business days after
all deposits have been assumed; or
    (2) If the transferring institution is an insured depository
institution in default and for which the FDIC has been appointed
receiver.


Sec.  307.3  Notice to depositors when insured status is voluntarily
terminated and deposits are not assumed.

    (a) Notice required. An insured depository institution that has
obtained authority from the FDIC to terminate its insured status under
sections 8(a), 8(p) or 18(i)(3) of the FDI Act without its deposit
liabilities being assumed by one or more insured depository
institutions, shall provide to each of its depositors, at the
depositor's last known address of record on the books of the
institution, prior written notification of the date the institution's
insured status shall terminate.
    (b) Prior approval of notice. The insured depository institution
shall

[[Page 60019]]

provide the appropriate Regional Director of the FDIC's Division of
Supervision and Consumer Protection, as defined in 12 CFR 303.2(g), a
copy of the proposed notice for approval. After being approved, the
notice shall be provided to depositors by the insured depository
institution at the time and in the manner specified by the appropriate
Regional Director.
    (c) Form of notice. The notice to depositors required by paragraph
(a) of this section shall be provided on the official letterhead of the
insured depository institution, shall bear the signature of a duly
authorized officer, and, unless otherwise specified by the appropriate
Regional Director, may follow the form of the notice contained in
appendix B of this part.
    (d) Other requirements possible. The FDIC may require the insured
depository institution to take such other actions as the FDIC considers
necessary and appropriate for the protection of depositors.

Appendix A to Part 307--[Transferring Institution Letterhead]

    [Date]

[Name and Address of appropriate FDIC Regional Director]

SUBJECT: Certification of Total Assumption of Deposits

    This certification is being provided pursuant to 12 U.S.C.
1818(q) and 12 CFR 307.2. On [state the date the deposit assumption
took effect], [state the name of the depository institution assuming
the deposit liabilities] assumed all of the deposits of [state the
name and location of the Transferring Institution whose deposits
were assumed]. [If applicable, state the date and method by which
the transferring institution's authority to engage in banking was or
will be terminated.] Please contact the undersigned, at [telephone
number], if additional information is needed.
     Sincerely,

By:
[Name and Title of Authorized Representative]

Appendix B to Part 307--[Institution Letterhead]

    [Date]

[Name and Address of Depositor]

SUBJECT: Notice to Depositor of Voluntary Termination of Insured
Status

    The insured status of [name of insured depository institution]
under the provisions of the Federal Deposit Insurance Act, will
terminate as of the close of business on [state the date]
(``termination date''). Insured deposits in the [name of insured
depository institution] on the termination date, less all
withdrawals from such deposits made subsequent to that date, will
continue to be insured by the Federal Deposit Insurance Corporation,
to the extent provided by law, until [state the date]. The Federal
Deposit Insurance Corporation will not insure any new deposits or
additions to existing deposits made by you after the termination
date.
    This Notice is being provided pursuant to 12 U.S.C. 1818(a)(6)
and 12 CFR 307.3.
    Please contact [name of institution official in charge of
depositor inquiries], at [name and address of insured depository
institution] if additional information is needed regarding this
Notice or the insured status of your account(s).

     Sincerely,

By: [Name and Title of Authorized Representative]

    By order of the Board of Directors, at Washington DC on this 6th
day of October, 2005.

Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.

[FR Doc. 05-20590 Filed 10-13-05; 8:45 am]

BILLING CODE 6714-01-P

 

Last Updated 10/14/2005 Regs@fdic.gov