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FDIC Federal Register Citations

[Federal Register: May 14, 1997 (Volume 62, Number 93)]
[Proposed Rules]               
[Page 26431-26435]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14my97-35]
      
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Proposed Rules
                                                Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.
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[[Page 26431]]
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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 307
RIN 3064-AB88
 
Notification of Changes of Insured Status
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Proposed rule.
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SUMMARY: The FDIC is proposing to revise its regulation addressing 
notification of changes of insured status to clarify that an assuming 
insured depository institution must provide the FDIC with a 
certification of any partial or total assumption of deposits from 
another insured depository institution. This certification would not be 
required, however, when deposits are transferred and assumed by an 
operating insured depository institution from an insured depository 
institution in default in an FDIC-administered receivership. Forms are 
being provided to assist the industry with compliance with the 
certification and depositor notice requirements.
DATES: Written comments on the proposal must be received by the FDIC on 
or before July 14, 1997.
ADDRESSES: Send written comments to the Office of the Executive 
Secretary, Federal Deposit Insurance Corporation, 550 17th Street, NW., 
Washington, DC 20429. Comments may be hand-delivered to Room F-400, 
1776 F Street, NW., 20429, on business days between 8:30 a.m. and 4:30 
p.m.; sent by facsimile: (202) 898-3838; or by Internet: 
Comments@fdic.gov. Comments may be inspected and photocopied in the 
FDIC Public Information Center, Room 100, 801 17th Street, NW., 
Washington, DC 20429, between 9:00 a.m. and 4:30 p.m. on business days.
FOR FURTHER INFORMATION CONTACT: William P. McNamara, Examination 
Specialist, Division of Supervision, (202) 898-6778; Rodney D. Ray, 
Counsel, Legal Division, (202) 898-3556, Federal Deposit Insurance 
Corporation, 550 17th Street, NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: As required by section 303(a) of the Riegle 
Community Development and Regulatory Improvement Act of 1994 (CDRIA) 
(12 U.S.C. 4803), the FDIC has reviewed part 307 of the Code of Federal 
Regulations and determined that the sections contained therein are 
still beneficial to the public and needed by the FDIC. It is proposed 
that the sections be revised to clarify their scope and applicability, 
eliminate unnecessary compliance requirements, and assist the industry 
with compliance.
Background
    Part 307 was originally promulgated in 1950 and was last revised on 
May 31, 1983, prior to the enactment of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (FIRREA). Public Law 101-
73, 103 Stat. 183 (1989).
    Section 307.1 implements section 8(q) of the Federal Deposit 
Insurance Act (FDI Act) (12 U.S.C. 1818(q)), as amended.1 
The regulation requires an insured bank or insured branch of a foreign 
bank which assumes deposits (assuming institution) of another insured 
bank or insured branch of a foreign bank (transferring institution) to 
provide the FDIC with a certification that it has assumed deposits of 
the transferring institution. The assuming institution is required to 
make the certification to the FDIC within 30 days after the date of the 
assumption, and state the date the assumption took effect. The 
certification is intended to satisfy section 8(q)'s ``satisfactory 
evidence of such assumption'' requirement, which is a condition that 
must be met before the transferring institution's insured status can be 
terminated pursuant to section 8(q)(1) of the FDI Act (12 U.S.C. 
1818(q)(1)). The certification also provides the FDIC with notice of 
when the assumption takes effect for purposes of determining the 
continuation of separate deposit insurance coverage on the assumed 
deposits. See 12 CFR 330.3(g)(2).
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    \1\ Section 8(q) reads as follows:
    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. Where the deposits of an insured depository 
institution are assumed by a newly insured depository institution, 
the depository institution whose deposits are assumed shall not be 
required to pay any assessment with respect to the deposits which 
have been so assumed after the semiannual period in which the 
assumption takes place.
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    Section 307.2, which implements section 8(a)(6) of the FDI Act (12 
U.S.C. 1818(a)(6)),2 requires an insured bank or insured 
branch of a foreign bank (insured institution) seeking to voluntarily 
terminate its insured status, but whose deposits will not be assumed, 
to provide notice to its depositors (depositor notice) of the date its 
insured status will terminate. The regulation further authorizes the 
FDIC, through the appropriate FDIC Regional Director of the Division of 
Supervision, to prescribe the form, manner and timing of the depositor 
notice, as well as such other conditions as may be deemed necessary for 
the protection of the institution's depositors.
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    \2\ 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 known 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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    In response to a Notice of Opportunity for Comment, published on 
December 6, 1995, at 60 FR 62345, as part of the CDRIA review process, 
an industry group suggested that Sec. 307.1 be eliminated because the 
industry group believed the FDIC could obtain the specified information 
from regulatory approvals required for assumptions of deposit 
liabilities by merger, consolidation, assumption or contract. The 
industry group noted that the FDIC received antitrust notices and that 
each governmental agency published administrative approvals in the 
newspapers.
    After investigating the commentor's suggestion, FDIC staff has 
recommended that Sec. 307.1 be retained. While it is possible to obtain 
some of the information required by the regulation from other agencies, 
bank merger applications, and newspaper notices,
[[Page 26432]]
this method of data collection would not provide the FDIC or the 
industry with sufficient certainty of receiving the data or a clear 
standard for judging when the FDIC had received the ``satisfactory 
evidence of such assumption'', required by section 8(q)(1), to 
terminate the transferring institution's insured status. The FDIC's 
preliminary view is that the inefficiency and additional costs 
associated with collecting the statutorily required information through 
these means outweighs any benefit which would be realized by 
eliminating the FDIC certification requirement. Finally, from a 
practical standpoint, timely and accurate submissions of the required 
information are needed to maintain the accuracy of the FDIC's structure 
database, which is utilized to calculate, collect, and process deposit 
insurance assessments.
    The FDIC is, however, proposing to revise Sec. 307.1 to define its 
scope and applicability more precisely. Additionally, consistent with 
the theme of the industry group's suggestion, the FDIC has determined 
that it can obtain timely, accurate, and easily verifiable information 
from records in the FDIC's possession regarding deposit liabilities 
assumed when those liabilities are transferred and assumed by an 
operating insured depository institution from an insured depository 
institution in default, as defined by section 3(x)(1) of the FDI Act 
(12 U.S.C. 1813(x)(1)), in an FDIC-administered receivership, and the 
regulation would be revised accordingly.
    No comments were received regarding Sec. 307.2. Nonetheless, that 
section was reviewed and it is proposed that the section be retained 
because it assists the FDIC in ensuring that the interests of 
depositors are safeguarded when an insured depository institution seeks 
to voluntarily terminate its insured status without the assumption of 
its deposit liabilities by another insured depository institution. See 
e.g. 12 U.S.C. 1818(a)(6) (requiring notification of depositors when 
insured status is voluntarily or involuntarily terminated) 3 
and 1828(i)(4)(E) (requiring the FDIC to consider the convenience and 
needs of the community to be served in approving the conversion of an 
insured depository institution into a non-insured institution).
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    \3\ While part 307 addresses depositor notifications when an 
institution seeks to voluntarily terminate its insured status, part 
308 addresses depositor notifications for involuntary terminations 
which are effected through enforcement proceedings.
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Proposed Revisions
    The existing sections in part 307 would be redesignated Secs. 307.2 
and 307.3, respectively. A new Sec. 307.1 also would be added.
    The proposed revisions to the regulations and reasons supporting 
them are as follows:
A. Institutions Covered
    Proposed Sec. 307.1 is new. It would be added to indicate that the 
part applies to insured depository institutions, as defined in section 
3(c)(2) of the FDI Act.4 Part 307, however, would not apply 
to assumptions of insured deposits by uninsured depository 
institutions; assumptions of uninsured deposits by insured depository 
institutions; or assumptions of uninsured deposits by uninsured 
depository institutions.
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    \4\ An ``insured depository institution'' is defined in section 
3(c)(2) (12 U.S.C. 1813(c)(2)) 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) (12 
U.S.C. 1813(A)(1)(a)). Accordingly, insured branches would be 
subject to the proposed regulation.
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    As revised, any insured depository institution assuming deposits 
from another insured depository institution, other than those excluded 
from coverage by proposed Sec. 307.2(b), would be required to provide 
the certification. Section 307.3 would apply to insured depository 
institutions seeking to voluntarily terminate their insured status 
without the assumption of their deposit liabilities by another insured 
depository institution.
B. Transitions Covered
    Proposed Sec. 307.2 would apply to partial and complete transfers 
of deposits from transferring to assuming institutions.
    As presently written, Sec. 307.1 does not distinguish between 
transactions involving partial deposit assumptions where a transferring 
institution intends to continue in the business of receiving deposits 
after the partial assumption takes effect, and total deposit 
assumptions, where the transferring institution intends to cease 
receiving deposits after the assumption takes effect. In the past, the 
FDIC has viewed Sec. 307.1 as being applicable in both instances.
    The FDIC has taken the view that an order must be entered by the 
FDIC before the transferring institution's insured status is 
terminated.5 12 U.S.C. 1818(q), 12 U.S.C. 1828(i)(3), (4). 
This reading avoids terminating the insured status of the transferring 
institution when only a portion of that institution's deposits are 
assumed and the transferring institution intends to continue in the 
business of receiving deposits after the partial assumption takes 
effect. This continues to be the FDIC's interpretation of the 
termination of insured status provision contained in section 8(q)(1).
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    \5\ Orders are not issued by the Board of Directors in instances 
where deposits are transferred and assumed upon the default of an 
insured depository institution because the insured status of the 
institution terminates automatically after default.
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    To avoid confusion on this issue, Sec. 307.2 (e) and (f) would be 
added to the regulation. New Sec. 307.2(e) addresses the deposit 
insurance coverage of the assumed deposits. It would be applicable to 
partial and total assumptions of deposits from transferring 
institutions and would utilize the assumption date specified in the 
certification to determine when the separate deposit insurance coverage 
on the assumed deposits terminates pursuant to section 
8(q)(2).6 See also 12 CFR 330.3(g).
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    \6\ Under the regulation, FDIC's receipt of the certification 
constitutes satisfactory evidence of the assumption, for purposes of 
section 8(q). In appropriate circumstances, however, such as an 
assuming institution's failure to provide the certification in the 
manner specified, the regulation specifies that the FDIC also may 
consider other evidence of such deposit assumption for purposes of 
section 8(q).
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    Section 307.2(f) would address the insured status of the 
transferring institution. It would be applicable to total deposit 
assumptions where the transferring institution intends to cease 
receiving deposits after the assumption takes effect. Under new 
Sec. 307.2(f), when the FDIC receives the certification and a total 
assumption has taken place (other than in instances where the FDIC has 
been appointed receiver for an insured depository institution in 
default), the FDIC will issue an order terminating the transferring 
institution's insured status pursuant to applicable
[[Page 26433]]
provisions of the FDI Act, including section 8(q)(1).
C. FDIC Appointed Receiver for Insured Depository Institution in 
Default
    Current Sec. 307.1 does not distinguish between deposit assumptions 
where the transferring institution has been placed in receivership and 
deposit assumptions between operating institutions. Since the FDIC 
plays an integral role in the transfer and assumption of deposit 
liabilities by operating institutions when it is appointed as receiver 
for an insured depository institution in default, this situation may 
represent an instance where, consistent with the previously mentioned 
industry group suggestion, the FDIC has access to readily verifiable 
information regarding the deposit transfer and assumption transaction 
which makes compliance with the regulation unnecessary. Therefore, 
Sec. 307.2(b) would be added to confirm that compliance with the 
certification requirement is not necessary when the deposit liabilities 
being transferred and assumed by an operating insured depository 
institution from an insured depository institution in default and the 
FDIC has been appointed as receiver for the institution.
D. Required Certification and Depositor Notice Letters
    Section 307.1 requires the assuming institution to certify that it 
has assumed deposit liabilities from the transferring institution 
within 30 days after the assumption takes effect. The regulation, 
however, is silent regarding the form of the certification. In the 
past, the FDIC has considered this requirement satisfied by a short 
letter from the assuming institution containing the required 
information. Therefore, to assist the industry with compliance and 
eliminate ambiguity, Sec. 307.2(C) would be added to require that the 
certification, which may follow the format provided in appendix A, be 
provided by the assuming institution on its letterhead.
    Section 307.2 also requires that the FDIC approve the form of any 
proposed depositor notices when an insured depository institution 
intends to voluntarily terminate its insured status without having its 
deposits assumed by another institution. Although the FDIC may require 
additional or substitute information to be contained in the depositor 
notice if warranted under the circumstances, the suggested depositor 
notice provided in appendix B is being provided to assist the industry 
with compliance. A copy of this notice must be provided to and approved 
by the appropriate Regional Director of the Division of Supervision 
prior to the notice being distributed to the institution's depositors.
Paperwork Reduction Act
    The collections of information contained in this proposed rule have 
been submitted to the Office of Management and Budget (OMB) for review 
and approval in accordance with the requirements of the Paperwork 
Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et seq.). Comments are 
invited on: (a) Whether the collection of information is necessary for 
the proper performance of the FDIC's functions, including whether the 
information has practical utility; (b) the accuracy of the estimates of 
the burden of the information collection, including the validity of the 
methodology and assumptions used; (c) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (d) ways 
to minimize the burden of the information collection on respondents, 
including through the use of automated collection techniques or other 
forms of information technology.
    Comments should be addressed to the Office of Information and 
Regulatory Affairs, OMB, Attention: Desk Officer Alexander Hunt, New 
Executive Office Building, Room 3208, Washington, DC 20503, with copies 
of such documents sent to Steven F. Hanft, Assistant Executive 
Secretary (Regulatory Analysis), FDIC, Room F-400, 550 17th Street, NW, 
Washington, DC 20429. All comments should refer to ``Part 307--
Certification and Depositor Notification.'' OMB is required to make a 
decision concerning the collection of information contained in these 
proposed regulations between 30 and 60 days after publication of this 
document in the Federal Register. Therefore, a comment to OMB is best 
assured of having its full effect if OMB receives it within 30 days of 
publication. This does not affect the deadline for the public to 
comment to the FDIC on the proposed regulation. Appendix A to this 
Federal Register notice provides an example of a format that will 
satisfy the collection of information requirement contained in 
Sec. 307.2. Appendix B provides an example of a format that will 
satisfy the collection of information requirement contained in 
Sec. 307.3.
    The revisions to the collection of information in this proposed 
rule are found in Secs. 307.2 and 307.3. Section 307.2 would require 
insured depository institutions assuming deposits from other insured 
depository institutions to provide the required certification whenever 
a partial or complete assumption of deposits occurs. The certification 
would be required to determine the date upon which the separate deposit 
insurance coverage on the assumed deposit liabilities terminates, as 
provided in section 8(q)(2) of the FDI Act. The certification also 
would be utilized when a complete assumption of deposit liabilities 
occurs to terminate the insured status of the transferring institution, 
pursuant to section 8(q)(1) of the FDI Act. Section 307.3 would require 
an insured depository institution seeking to voluntarily terminate its 
insured status without the assumption of its deposits by another 
insured depository institution to provide the FDIC with a copy of the 
depositor notification letter required by section 8(a)(6) of the FDI 
Act for review prior to the letter being sent to the institution's 
depositors.
    The estimated average burden associated with all collections of 
information in this proposed regulation is approximately 0.25 hours per 
respondent. Additional information regarding the collections of 
information and total estimated reporting burden in the proposed 
regulation is summarized below:
    Title: Part 307--Certification and Depositor Notification.
    Frequency of Response: Occasional.
    Affected Public: The certification required by Sec. 307.2 would 
affect all insured depository institutions assuming deposit liabilities 
from other insured depository institutions. The depositor notification 
required by Sec. 307.3 would affect all insured depository institutions 
seeking to voluntarily terminate their insured status without having 
their deposit liabilities assumed by another insured depository 
institution.
    Estimated Number of Respondents: 942 for Sec. 307.2 certification 
and 1 for Sec. 307.3 notice.
    Estimated Time per Response: 0.25 for section 307.2 certification 
and 1 hour for Sec. 307.3 notice.
    Estimated Total Annual Burden: 236.50 hours.
Regulatory Flexibility Act
    Pursuant to subsections (b) and (c) of section 603 of the 
Regulatory Flexibility Act, the FDIC provides the following initial 
regulatory flexibility analysis:
    Reasons Why Agency Action is Being Considered: Insured depository 
institutions would be required to provide the FDIC with a 
certification, pursuant to Sec. 307.2, when they partially or 
completely assume deposit liabilities from another insured depository 
institution. The certification is necessary to implement the provisions 
of section 8(q) of the FDI Act, regarding
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termination of the insured status of the transferring institution and 
termination of the separate deposit insurance coverage provided on 
deposit accounts assumed by the assuming institution.
    Insured depository institutions seeking to voluntarily terminate 
their insured status also would be required to provide the FDIC with a 
copy of any proposed depositor notification before the notification is 
provided to the institution's depositors. The depositor notification is 
required by section 8(a)(6) of the FDI Act. The requirement for pre-
review of the proposed depositor notification letter by the FDIC 
establishes a procedure to assure that the institution's depositors 
receive information which the appropriate Regional Director of the 
Division of Supervision deems appropriate regarding the institution's 
intent to terminate its insured status. The requirement for pre-review 
of the proposed depositor notification letter by the FDIC also is 
intended to ensure that, prior to the termination of the institution's 
insured status, depositors receive appropriate information concerning 
federal deposit insurance coverage of their accounts once the 
institution's insured status is terminated.
    Statement of Objectives of and Legal Basis for Proposed Rule: The 
proposed rule implements the statutory requirements imposed by section 
8(q) of the FDI Act for assumptions of deposits from insured depository 
institutions. The proposed rule also implements the statutory depositor 
notification requirement imposed by section 8(a)(6) of the FDI Act when 
an insured depository institution seeks to voluntarily terminate its 
insured status without the assumption of its deposit liabilities by 
another insured depository institution.
    Description of and Estimate of the Number of Small Entities to 
Which Proposed Rule Would Apply: The proposed rule would apply to all 
insured depository institutions assuming deposit liabilities from 
another insured depository institution. It also would apply to insured 
depository institutions seeking to voluntarily terminate their insured 
status without having their deposit liabilities assumed by another 
insured depository institution. Based upon information supplied to the 
FDIC by insured depository institutions or other federal banking 
regulators, approximately 105 insured depository institutions which 
were classified as small entities, for purposes of the RFA, 
7 engaged in transactions during the 1996 calendar year 
which would be covered by the proposed regulation. The FDIC has no 
reason to believe that the number of small entities covered by the 
proposed regulation will vary significantly in the future.
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    \7\ The RFA defines the term ``small entity'', in 5 U.S.C. 601, 
by reference to definitions published by the Small Business 
Administration. The Small Business Administration has defined a 
``small entity'', for banking purposes, as a national or commercial 
bank, savings institution or credit union with less than $100 
million in assets. See 13 CFR 121.201.
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    Projected Reporting, Recordkeeping, and Other Compliance 
Requirements of the Proposed Rule: Small entities engaging in 
transactions governed by the proposed regulation should be maintaining 
information regarding depositor accounts and deposit assumptions as 
part of their normal banking operations. The number of deposit 
assumption certifications required by Sec. 307.2 will depend upon the 
number of deposit assumption transactions engaged in by an assuming 
insured depository institution. The FDIC anticipates that the depositor 
notification process established by Sec. 307.3 will only occur once 
because depositor notification is required prior to the voluntary 
termination of an insured depository institution's insured status with 
the FDIC. The FDIC estimates that small entities will be able to comply 
with the requirements imposed by the regulation by utilizing their 
existing senior management and clerical support.
    Identification of Federal Rules Which may Duplicate, Overlap or 
Conflict With the Proposed Rule: Some information concerning deposit 
liabilities assumed or proposed to be assumed by merger, consolidation, 
other statutory assumption, or contract is required to be filed with 
the FDIC, pursuant to part 327 and Sec. 303.3 of the FDIC's rules and 
regulations (12 CFR part 327 and 12 CFR 303.3, respectively). 
Information filed with the FDIC pursuant to Sec. 303.3, however, is in 
the form of an application which is subject to modification and 
information filed pursuant to part 327, does not specify the 
institution whose deposits were assumed or when the assumption took 
effect. Therefore, while there is some overlapping of general 
information being submitted, the information contained in the 
certification required by proposed Sec. 307.2 provides the FDIC with 
more specific and timely data needed to comply with the requirements of 
section 8(q) of the FDI Act. Additionally, the regulation provides the 
FDIC and industry with a clear standard for judging when an insured 
depository institution's insured status should be terminated.
    Discussion of Significant Alternatives to Proposed Rule: The 
proposed regulation imposes minimal reporting burdens upon insured 
depository institution. As discussed in the preamble to the regulation, 
the FDIC considered obtaining the information from other sources but 
determined that those methods of data collection would not provide the 
FDIC with sufficient certainty of receiving the data required by 
section 8(q). Additionally, absent the regulation, the FDIC and 
industry would have no clear standard for judging when an insured 
depository institution's insured status should be terminated. To reduce 
regulatory burden, however, the FDIC is excluding deposit assumptions 
from FDIC-administered receiverships from the coverage of Sec. 307.2. 
The FDIC also is providing recommended certification and depositor 
notification forms as guidelines for the industry.
List of Subjects in 12 CFR Part 307
    Bank deposit insurance, Reporting and recordkeeping requirements.
    For the reasons set forth in the preamble, the Board of Directors 
proposes to revise part 307 of chapter III of the Code of Federal 
Regulations to read as follows:
PART 307--NOTIFICATION OF CHANGES OF INSURED STATUS
Sec.
307.1  Scope and purpose.
307.2  Certification of assumption of deposit liabilities.
307.3  Notice to depositors when insured status is voluntarily 
terminated and deposits are not assumed.
    Appendix A to Part 307--Certification of Change in Insured 
Status.
    Appendix B to Part 307--Notice to Depositor of Voluntary 
Termination of Insured Status.
    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 of providing the FDIC with a certification 
regarding the assumption of any deposit liabilities of an insured 
depository institution by any insured depository institution; and
    (2) The notification which should be provided to depositors when an 
insured
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depository institution voluntarily terminates its insured status and 
its deposits are not assumed by another insured depository institution.
Sec. 307.2  Certification of assumption of deposit liabilities.
    (a) Certification required. Whenever any of the deposit liabilities 
of an insured depository institution are assumed (whether by merger, 
consolidation, other statutory assumption, or by contract) by another 
insured depository institution, the assuming insured depository 
institution shall provide a written certification to the FDIC that it 
has assumed deposit liabilities from the transferring insured 
depository institution. The certification shall be provided to the FDIC 
within 30 calendar days after the assumption takes effect and shall 
state the date the assumption took effect.
    (b) Exception. The certification required by paragraph (a) of this 
section shall not be required when deposit liabilities are transferred 
and 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)), that has been placed in 
an FDIC-administered receivership.
    (c) Form of certification. The certification required by paragraph 
(a) of this section shall be provided on the letterhead of the assuming 
insured depository institution, be signed by a duly authorized official 
of the institution, and may follow the format of the certification 
contained in appendix A to this part.
    (d) Filing. The certification required by paragraph (a) of this 
section shall be provided to the appropriate FDIC Regional Director of 
the Division of Supervision, as determined by reference to 12 CFR part 
303, for the assuming insured depository institution.
    (e) Evidence of assumption. The receipt by the FDIC of the 
certification required by paragraph (a) 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 
separate deposit insurance on the deposits so assumed shall terminate 
in the manner specified in section 8(q)(2) of the FDI Act (12 U.S.C. 
1818(q)(2)). In appropriate circumstances, the FDIC, in its sole 
discretion, may also consider other evidence of such deposit assumption 
to be satisfactory for purposes of section 8(q).
    (f) Issuance of an order. Except where the FDIC has been appointed 
as receiver for an insured depository institution in default, the FDIC 
shall issue an order terminating the insured status of the transferring 
insured depository institution, pursuant to section 8(q)(1) of the FDI 
Act (12 U.S.C. 1818(q)(1)), in the event that all of the transferring 
institution's deposits are assumed by one or more insured depository 
institutions.
Sec. 307.3  Notice to depositors when insured status is voluntarily 
terminated and deposits are not assumed.
    (a) Notice required. Any insured depository institution seeking to 
voluntarily terminate its insured status, but whose deposit liabilities 
will not be assumed by another insured depository institution, shall 
provide prior written notification to each of its depositors, at the 
depositor's last address of record on the books of the institution, of 
the date of the termination of its insured status under the FDI Act.
    (b) Prior approval of notice. Prior to distributing the notice to 
depositors required by paragraph (a) of this section, a copy of the 
proposed notice shall be provided to the appropriate FDIC regional 
director of the Division of Supervision, as determined by reference to 
12 CFR part 303, for approval. After being approved for distribution, 
the notice shall be provided to depositors in the time and 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 letterhead of the insured 
depository institution and, unless otherwise specified by the 
appropriate Regional Director of the Division of Supervision, may 
follow the format of the notice contained in appendix B to this part.
    (d) Obligations. The FDIC may require the insured depository 
institution to take such other actions as the FDIC considers 
appropriate for the protection of depositors.
Appendix A to Part 307--Certification of Change in Insured Status
(Date)
(Name and Address of Regional Director)
SUBJECT: Certification of Change In Insured Status
    This certification is being provided pursuant to 12 U.S.C. 
1818(q) and 12 CFR 307.2(a). On (state the date the deposit 
assumption took effect), (state the name of the depository 
institution assuming the deposit liabilities) assumed (if a partial 
assumption, state the amount) (if all deposits were assumed, state 
``all'') of the deposits of (state the name of the insured 
depository institution whose deposits were assumed). Please contact 
the undersigned if additional information is needed.
(Name of Assuming Institution)
By:--------------------------------------------------------------------
(Name and Title)
Appendix B to Part 307--Notice to Depositor of Voluntary Termination of 
Insured Status
(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 the ________ Day of 
____________________, 19____ (``termination date''). Insured 
deposits in the (name of insured depository institution) on the 
termination date, less all subsequent withdrawals from such 
deposits, will continue to be insured by the Federal Deposit 
Insurance Corporation, to the extent provided by law, until (date). 
Any deposits made by you after the termination date, either new 
deposits or additions to existing deposits, will not be insured by 
the Federal Deposit Insurance Corporation.
    This notice is being provided pursuant to 12 U.S.C. 1818(a)(6) and 
12 CFR 307.3(a).
    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.
    By order of the Board of Directors. Dated at Washington, D.C., 
this 29th day of April, 1997.
Federal Deposit Insurance Corporation
Robert E. Feldman,
Deputy Executive Secretary.
[FR Doc. 97-12549 Filed 5-13-97; 8:45 am]
BILLING CODE 6714-01-P

Last Updated 05/14/1997 regs@fdic.gov