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Receivership Settlement Process

Process Overview

Upon closure of a financial institution by the applicable chartering authority and appointment of FDIC as Receiver, the FDIC may enter into a Purchase and Assumption Agreement (P&A) with a winning bid acquirer as determined through the least cost resolution process. The Receivership Settlements process begins with the Assuming Institution’s purchase or assumption of some or all of the failed institution’s assets or liabilities and normally continues for up to 364 days.

The FDIC’s Receivership Settlements department is responsible for the administration of the P&A with the Assuming Institutions. The FDIC Settlement Agent is the Assuming Institution’s primary point of contact for the life of the Receivership and works directly with the Assuming Institution’s Settlement Designee to fulfill all of the obligations as set forth in the agreement. The Settlement period is typically less than one year; however, transactions and adjustments may occur throughout the life of the Receivership.

Receivership Settlements developed the Purchase and Assumption Settlement System (PASS) as an end-to-end business solution that fully automates the settlement business processes and improves communication between the FDIC and Settlement Designees at Assuming Institutions. PASS provides transparency and functionality to submit, process, and approve Settlement requests and transactions in one system. FDICconnect coordinators with financial institutions will grant access to Settlement Designees.

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Frequently Asked Questions

What is the Receiverships Settlement Process?

The Receiverships Settlement Process is the administration of the Purchase and Assumption Agreement between Assuming Institutions, FDIC in its corporate capacity, and FDIC as Receiver for a failed institution. Assuming Institutions purchase certain assets, assume certain liabilities, and are obligated to perform administrative duties as detailed in the agreement.

When does the Settlement process begin?

The Settlement process begins when the FDIC is appointed as Receiver of the failed institution by the chartering authority and a Purchase and Assumption Agreement is executed with a winning bid acquirer.

How long does the Settlement period last?

The Settlement period may last up to 364 days from date of failure. Often, the Settlement period is completed earlier than the deadline.

What type of activities occur during the Settlements period?

Settlement activities include purchases and sales, reimbursement of expenses, adjustments to book value, correction of errors and omissions, and the processing of official notifications on contract options.

Where can I find public information about the Assuming Institution and the Purchase and Assumption Agreement?

Within a few days of an institution's closing, the Purchase and Assumption Agreement (P&A) is published under the institution's name on the FDIC's Failed Bank List website at

How can I determine who the FDICconnect coordinator is for my institution?

Individuals can submit requests for assistance to the FDICconnect Help Desk using the link

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