FDIC Federal Register Citations

[Federal Register: February 3, 1997 (Volume 62, Number 22)]

[Rules and Regulations]

[Page 4895-4899]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr03fe97-1]

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Rules and Regulations

Federal Register

________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents

having general applicability and legal effect, most of which are keyed

to and codified in the Code of Federal Regulations, which is published

under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents.

Prices of new books are listed in the first FEDERAL REGISTER issue of each

week.

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[[Page 4895]]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 304

RIN 3064-AB89

Forms, Instructions and Reports

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Final rule.

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SUMMARY: As part of the FDIC's systematic review of its regulations and

written policies under section 303(a) of the Riegle Community

Development and Regulatory Improvement Act of 1994 (CDRI), the FDIC is

revising its regulations relating to forms, instructions and reports.

The regulation was created in 1948 to satisfy the requirement found in

the Administrative Procedure Act (APA) to ``publish in the Federal

Register * * * rules of procedure, descriptions of forms available or

the places at which forms may be obtained, and instructions as to the

scope and contents of all papers, reports, or examinations.'' A portion

of the regulation was added in 1992 to implement the mandate found at

section 122 of the Federal Deposit Insurance Corporation Improvement

Act of 1991 (FDICIA), which requires the FDIC to adopt a regulation

which requires the collection of information on small farm and small

business lending from insured depository institutions. In addition,

section 37 of the Federal Deposit Insurance Act (FDI Act), as added by

FDICIA, requires that the FDIC adopt regulations mandating the

inclusion of ``off balance sheet'' items in all assets and liabilities

(including contingent assets and liabilities) reflected on any balance

sheet, financial statement, report of condition, or other report that

insured depository institutions file with a federal banking agency. The

additional requirement to include contingent assets and liabilities is

being incorporated into a section of the regulation. In an effort to

streamline its regulations and provide the public with information

about its forms, instructions and reports (including specific dates by

which such reports must be filed), the FDIC is revising this

regulation, by removing unneeded language while retaining the listing

of forms and other required information to satisfy the public

information requirements found in FOIA, section 122 of FDICIA, and

section 37 of the FDI Act.

EFFECTIVE DATE: February 3, 1997.

FOR FURTHER INFORMATION CONTACT: Steven F. Hanft, Assistant Executive

Secretary (Regulatory Analysis), (202) 898-3907, Office of the

Executive Secretary; Karen Main, Senior Attorney, (202) 898-8838, Legal

Division; FDIC, 550 17th Street, NW, Washington, D.C. 20429.

SUPPLEMENTARY INFORMATION:

I. Discussion

The FDIC is conducting a systematic review of its regulations and

written policies. Section 303(a) of CDRI, 12 U.S.C. 4803(a), requires

each federal banking agency to streamline and modify its regulations

and written policies in order to improve efficiency, reduce unnecessary

costs, and eliminate unwanted constraints on credit availability.

Section 303(a) also requires each federal banking regulatory agency to

remove inconsistent, outmoded, or duplicative requirements from its

regulations and written policies.

As part of this review, the FDIC has determined that certain

provisions of part 304 contain outmoded and unnecessary language that

needs to be revised or removed. By so doing, the FDIC's regulation

concerning forms, instructions and reports will be updated and

streamlined to provide accurate information.

The FDIC published the current version of the regulation on October

15, 1986 in the Federal Register (51 FR 36684) in accordance with the

APA (U.S.C. 551 et seq.). Section 304.4 was later modified to implement

Section 122 of FDICIA (12 U.S.C. 1817 note) on June 5, 1992 (57 FR

23932). Sections 304.4 and 304.5 are being revised to incorporate the

reporting requirement set forth in Section 37(a)(3)(c) of the FDI Act.

12 U.S.C. 1831n(a)(3)(C). This statutory provision requires that the

Corporation develop a regulation which requires that ``all assets and

liabilities, including contingent assets and liabilities'' be reported

in an insured depository institution's Call Reports. This reporting

requirement, which was enacted as Section 121 of FDICIA in 1991, was

initially implemented by revising the Call Reports in 1992. The

proposed change was published for comment in connection with the FDIC's

Notice of Information Collection submitted to the Office of Management

and Budget. See 57 FR 54235 (Nov. 17, 1992). Section 304.4 is being

further revised to add information which is currently found in the

instructions to the Call Reports regarding the timely filing of the

Call Reports. This requirement was initially issued for notice and

comment under the auspices of the Federal Financial Institutions

Examination Council, and adopted in final in 1988. See, 53 FR 11558

(Apr. 7, 1988) and 53 FR 32104 (Aug. 23, 1988).

Part 304 provides the public with the information about the forms

and reports that insured financial institutions are to submit to the

FDIC. With the exception of the provisions relating to lending to small

farms and small business and the reporting of ``off balance sheet''

items, there is no statutory requirement to provide all of the

information contained in Part 304 by regulation. Thus, through the

proposed changes, the statutory requirements will be retained, FOIA's

publication requirements at 5 U.S.C. 552(a)(1)(C) will continue to be

fulfilled, and the regulatory framework will be streamlined.

II. Public Comment Waiver and Effective Date

This regulation is being issued as a final rule. The APA requires

general notice of proposed rulemaking in the Federal Register; however,

this regulation is exempt from the Federal Register publication

requirement pursuant to 5 U.S.C. 553(b). This section of the APA

exempts ``rules of agency organization, procedure, or practice''. 5

U.S.C. 553(b)(A). Notwithstanding the fact that part 304 is a

procedural rule, some of the proposed language that will be added to

various sections appears to impose new reporting requirements or time

constraints on affected financial institutions. The Call Report filing

deadlines, as well as the requirement to report the contingent assets

and

[[Page 4896]]

liabilities on the Call Report have previously been issued for notice

and comment before being adopted in final form. These requirements have

been in place and insured depository institutions have been complying

with them for a number of years. These pre-existing supervisory

requirements are now being codified in part 304. Moreover, several

other revisions are minor and technical in nature. Therefore, the Board

finds that there is good cause for not providing a notice and comment

period before adopting part 304 in final form. Under the circumstances

described above, notice and comment would be unnecessary and contrary

to the public interest. 5 U.S.C. 553(b)(B).

In addition, the APA provides that a substantive rule shall be

published in the Federal Register not less than 30 days before its

effective date. However, this APA requirement does not apply to Part

304 since it is a rule of agency procedure. 5 U.S.C. 553(d).

Alternatively, the amendments are of such a nature that the public does

not need a delayed period of time in which to conform or adjust to the

amendments. Thus, the Board finds that there exists good cause for not

delaying the effective date of these amendments. 5 U.S.C. 553(d)(3).

III. Matters of Regulatory Procedure

Regulatory Flexibility Act

Part 304 is a rule relating to agency organization, procedure, or

practice, and is therefore not subject to the provisions of the

Regulatory Flexibility Act. Further, because the revisions to part 304

will be published in final form without a notice of proposed

rulemaking, no regulatory flexibility analysis is required.

Paperwork Reduction Act

No further collection of information is required as a result of the

regulatory amendments. Therefore, no material will be submitted to the

OMB for review pursuant to the Paperwork Reduction Act. 44 U.S. 3501 et

seq.

Contract With America/SBREFA Analysis

The Small Business Regulatory Enforcement Fairness Act of 1996

(SBREFA), Title II of the Contract with America Advancement Act of 1996

(Pub. L. 104-121), provides generally for Congressional review of final

agency rules. When required by SBREFA, the FDIC reports rules to

Congress. The reporting requirement is triggered in instances where the

FDIC issues a final rule as defined by the APA at 5 U.S.C. 551. The

FDIC will file the appropriate report pursuant to the statute.

The Office of Management and Budget has determined that this final

revision to part 304 does not constitute a ``major'' rule as defined by

the statute.

List of Subjects in 12 CFR Part 304

Bank deposit insurance, Bank, banking, Freedom of information,

Reporting and recordkeeping requirements.

For the reasons set forth above, 12 CFR part 304 is amended as set

forth below:

PART 304--FORMS, INSTRUCTIONS AND REPORTS

1. The authority citation for part 304 continues to read as

follows:

Authority: 5 U.S.C. 552; 12 U.S.C. 1817, 1818, 1819, 1820;

Public Law 102-242, 105 Stat. 2251 (12 U.S.C. 1817 note).

Sec. 304.1 [Amended]

2. Section 304.1 is amended by removing the word ``all'' from the

last sentence.

3. Section 304.2 is revised to read as follows:

Sec. 304.2 Forms and instructions--general.

Necessary forms with their related instructions to be used in

connection with applications, reports, and other submittals can be

obtained from FDIC regional offices--Division of Supervision. The FDIC

regional offices are listed in the directory of the FDIC Law,

Regulations and Related Acts looseleaf service, published by the FDIC.

A listing of FDIC forms can also be obtained by writing to the FDIC,

Division of Supervision, 550 17th Street, NW, Washington, D.C. 20429.

The forms are also available in the FDIC Public Information Center at

801 17th Street, NW, Washington, D.C. 20429.

4. Section 304.3 is revised to read as follows:

Sec. 304.3 Certified statements.

The certified statements required to be filed by insured

institutions under the provisions of section 7 of the Federal Deposit

Insurance Act (12 U.S.C. 1817), as amended, shall be filed in

accordance with part 327 of this chapter. The applicable forms are Form

6420/07A--Form 6420/07H which show the computation of the semiannual

assessment due to the Corporation from an insured depository

institution. As provided for in part 327 of this chapter, the forms

will be furnished to insured depository institutions by the Corporation

twice each calendar year and the completed statement must be returned

to the Corporation by each institution.

5. Section 304.4 is revised to read as follows:

Sec. 304.4 Reports of condition and income.

(a) Description. Forms FFIEC 031, 032, 033, and 034, Consolidated

Reports of Condition and Income, are quarterly reports for insured

state nonmember banks (except District banks) of different asset sizes

or with foreign offices, as appropriate, that are required to be

prepared as of the close of business on the following report dates:

March 31, June 30, September 30, and December 31. These reports are

also known as the ``Call Report.'' The Call Report includes a balance

sheet, an income statement, and a statement of changes in equity

capital of the reporting bank. Supporting schedules request additional

detail with respect to charge-offs and recoveries, income from

international operations, specific asset and liability accounts, off-

balance sheet items, past due and nonaccrual assets, information for

assessment purposes, and regulatory capital. All assets and

liabilities, including contingent assets and liabilities, must be

reported in, or otherwise taken into account in the preparation of, the

Call Report. Reporting banks must also submit annually such information

on small business and small farm lending as the FDIC may need to assess

the availability of credit to these sectors of the economy. Call

Reports must be prepared in accordance with the appropriate

instructions contained in the Federal Financial Institutions

Examination Council booklet entitled ``Instructions--Consolidated

Reports of Condition and Income''. The report forms, the instructions

for completing the reports, and the accompanying materials will be

furnished to all insured state nonmember banks (except District banks)

by, or may be obtained upon request from, the Call Reports Analysis

Unit, Division of Supervision, FDIC, Washington, D.C. 20429.

(b) Submission of reports. All insured state nonmember banks

(except District banks) shall file their completed reports by the

method and with the appropriate collection agent for the FDIC as

designated in the materials accompanying the report forms each quarter.

Completed reports must be received no more than 30 calendar days after

the report date, subject to the timely filing provisions set forth in

the ``Instructions--Consolidated Reports of Condition and Income'' and

in the materials accompanying the report forms each quarter. Any bank

which has or has had more than one foreign office,

[[Page 4897]]

other than a shell branch or an International Banking Facility, may

take an additional 15 calendar days to submit its Call Reports. A bank

using any of these additional 15 calendar days to complete its reports

is required to submit its reports electronically.

6. Section 304.5 is revised to read as follows:

Sec. 304.5 Other forms.

The forms described in this section have been prepared for the use

of banks.

(a) Form 8020/05: Summary of Deposits. Form 8020/05 is a report on

the amount of deposits for each authorized office of an insured bank

with branches; unit banks do not report. Reports as of June 30 of each

year must be submitted no later than the immediately succeeding July

31. The report is filed with the appropriate collection agent for the

FDIC as designated in the materials accompanying the survey forms each

year. The report forms and the instructions for completing the reports

will be furnished to all such banks by, or may be obtained upon request

from the Trust and Survey Group, Division of Supervision, FDIC, 550

17th Street, NW, Washington, D.C. 20429.

(b) Form 6120/06: Notification of Performance of Bank Services.

Form 6120/06 may be used to satisfy the notice requirement for bank

service arrangements that is contained in section 7 of the Bank Service

Corporation Act (12 U.S.C. 1867), as amended. In lieu of the form, a

bank may satisfy the requirement by submitting a letter stating: The

name of the servicer; the address at which the service is performed;

the service being performed; and the date the service commenced. Either

the form or the letter containing the notice information must be

submitted to the regional director--Division of Supervision of the

region in which the bank's main office is located within 30 days of the

making of the bank service contract or the performance of the bank

service, whichever occurs first.

(c) Form FFIEC 001: Annual Report of Trust Assets. This report must

be filed by all insured state nonmember commercial and savings banks

operating trust departments or banks granted consent by the Corporation

to exercise trust powers, and their trust subsidiaries. The report must

be filed no later than February 15th of each year. When circumstances

necessitate, additional information may be required about certain

operations of the trust department. The report must be prepared and

submitted in accordance with the appropriate instructions. The report

is filed with the appropriate collection agent for the FDIC as

designated in the report form and instructions. The report forms and

instructions for completing the report will be furnished automatically

to all such banks by, or may be obtained upon request from the Trust

and Survey Group, Division of Supervision, FDIC, 550 17th Street, NW,

Washington, D.C. 20429.

(d) Form FFIEC 002: Report of Assets and Liabilities of U.S.

Branches and Agencies of Foreign Banks. Form FFIEC 002 is a report in

the form of a statement of the assets and liabilities of U.S. branches

and agencies of foreign banks together with supporting schedules that

request additional detail with respect to selected assets and

liabilities, off-balance sheet items, and, in the case of insured

branches, information for assessment purposes. All assets and

liabilities, including contingent assets and liabilities, must be

reported in, or otherwise taken into account in the preparation of,

this report. Insured branches must also submit annually such

information on small business and small farm lending as the FDIC may

need to assess the availability of credit to these sectors of the

economy. The report must be prepared in accordance with the

instructions contained in the instruction booklet for the report,

copies of which are furnished to all U.S. branches and agencies of

foreign banks by the Federal Reserve System. The Board of Governors of

the Federal Reserve System collects and processes the report on behalf

of FDIC-supervised branches. The report is submitted quarterly to the

appropriate Federal Reserve district bank.

(e) Form FFIEC 004: Report on Indebtedness of Executive Officers

and Principal Shareholders and their Related Interests to Correspondent

Banks. Form FFIEC 004 is a recommended form that may be used by the

executive officers and principal shareholders of an insured state

nonmember bank to report to the board of directors of their bank on

their indebtedness (and that of their related interests) to

correspondent banks, as required by part 349 of this chapter. The

reports or any form containing identical information must be submitted

to the bank's board of directors by January 31 of each year and cover

indebtedness to correspondent banks during the preceding calendar year.

Form FFIEC 004 is mailed annually by the FDIC to each insured state

nonmember bank.

7. Appendix A to part 304 is revised to read as follows:

Appendix A to Part 304--List of Forms

[Note: See footnotes at end of table.]

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Section of FDICs

regulations (12 CFR

Form Title chapter III) where the OMB No.

form is referenced

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FDIC 6112/01.......................... Initial Statement of 335.413................. 3064-0030

Beneficial Ownership of

Equity Securities (Form F-7).

FDIC 6112/02.......................... Statement of Changes in 335.414................. 3064-0030

Beneficial Ownership of

Equity Securities (Form F-8).

FDIC 6120/06.......................... Notification of Bank Services. 304.5(b)................ 3064-0029

FDIC 6200/05.......................... Application for Federal 303.1................... 3064-0001

Deposit Insurance (Commercial

Banks).

FDIC 6200/06.......................... Financial Report.............. (\1\)................... 3064-0006

FDIC 6200/07.......................... Application for Federal 303.1................... 3064-0069

Deposit Insurance for

Operating Noninsured

Institutions.

FDIC 6200/09.......................... Application for Consent to (\2\)................... 3064-0025

Exercise Trust Powers.

FDIC 6220/01.......................... Application for a Merger or 303.3................... 3064-0016

Other Transaction Pursuant to

Section 19(c) of the Federal

Deposit Insurance Act.

FDIC 6220/07.......................... Application for a Merger or 303.7(b)(1) and 303.3... 3064-0015

Other Transaction Pursuant to

Section 18(c) of the Federal

Deposit Insurance Act

(Phantom or Corporate

Reorganization).

FDIC 6342/12.......................... Request for Deregistration 341.5................... 3064-0027

Registered Transfer Agent.

FDIC 6420/07.......................... Certified Statement........... 304.3(a)................ 3064-0057

FDIC 6440/12.......................... Loan/Application Register..... 338.8(\3\).............. 7100-0247

[[Page 4898]]

FDIC 6710/06.......................... Suspicious Activity Report.... 353.1................... 3064-0077

FDIC 6710/07.......................... Application Pursuant to (\4\)................... 3064-0018

Section 19 of the Federal

Deposit Insurance Act.

FDIC 6810/01.......................... Notification of Addition of a 333.2................... 3064-0097

Director or Employment of a

Senior Executive Officer.

FDIC 6822/01.......................... Notice of Acquisition of 303.4(b)................ 3064-0019

Control.

FDIC 8020/05.......................... Summary of Deposits........... 304.5(a)................ 3064-0061

FFIEC 001............................. Annual Report of Trust Assets. 304.5(c)................ 3064-0024

FFIEC 002............................. Report of Assets and 304.5(d)................ 7100-0032

Liabilities of U.S. Branches

and Agencies of Foreign Banks.

FFIEC 004............................. Report on Indebtedness of 304.5(e)................ 3064-0023

Executive Officers and

Principal Shareholders and

their Related Interests to

Correspondent Banks.

FFIEC 009............................. Country Exposure Report....... 351.3(b)................ 3064-0017

FFIEC 009a............................ Country Exposure Information 351.3................... 3064-0017

Report.

FFIEC 019............................. Country Exposure Report for (\5\)................... 3064-0017

U.S. Branches and Agencies of

Foreign Banks.

FFIEC 030............................. Foreign Branch Report of 347.6(b)................ 3064-0011

Condition.

FFIEC 031............................. Consolidated Reports of 304.4................... 3064-0052

Condition and Income for a

Bank with Domestic and

Foreign Offices.

FFIEC 032............................. Consolidated Reports of 304.4................... 3064-0052

Condition and Income for a

Bank with Domestic Offices

Only and Total Assets of $300

Million or More.

FFIEC 033............................. Consolidated Reports of 304.4................... 3064-0052

Condition and Income for a

Bank with Domestic Offices

Only and Total Assets of $100

Million or More But Less Than

$300 Million.

FFIEC 034............................. Consolidated Reports of 304.4................... 3064-0052

Condition and Income for a

Bank with Domestic Offices

Only and Total Assets of Less

than $100 Million.

FFIEC 035............................. Monthly Consolidated Foreign (\6\)................... 1557-0156

Currency Report of Banks in

the United States.

GFIN.................................. Notice of Government (\7\)................... 1535-0089

Securities Broker or

Government Securities Dealer

Activities to be Filed by a

Financial Institution Under

Section 15C(a)(1)(B).

GFIN-W................................ Notice by Financial (\7\)................... 7100-0224

Institutions of Termination

of Activities as a Government

Securities Broker or

Government Securities Dealer.

GFIN-4................................ Disclosure Form for Person (\7\)................... 1535-0089

Associated With a Financial

Institution Government

Securities Broker or Dealer.

GFIN-5................................ Uniform Termination Notice for (\7\)................... 1535-0089

Person Associated With a

Financial Institution

Government Securities Broker

or Dealer.

MSD 4................................. Uniform Application for 343.3................... 3064-0022

Municipal Securities

Principal or Municipal

Securities Representative

Associated With a Bank

Municipal Securities Dealer.

MSD 5................................. Uniform Termination for 343.3................... 3064-0022

Municipal Securities

Principal or Municipal

Securities Representative

Associated With a Bank

Municipal Securities Dealer.

TA-1.................................. Transfer Agent Registration 341.6................... 3064-0026

and Amendment Form.

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Notes:

\1\ Not referenced in 12 CFR chapter III. The report form is submitted by each individual director or officer of

a proposed or operating bank applying to the FDIC for federal deposit insurance as a state nonmember bank, or

by a person proposing to acquire ownership or control of an insured state nonmember bank.

\2\ The report form can be obtained from the HMDA Assistance line by telephoning (202) 452-2016.

\3\ Not referenced in 12 CFR chapter III. The application form is submitted by insured state nonmember banks

applying for FDIC consent to exercise trust powers.

\4\ Not referenced in 12 CFR chapter III. The application form is submitted by FDIC-insured banks applying for

FDIC consent to employ persons who have been convicted of crimes involving dishonesty or breach of trust.

\5\ Not referenced in 12 CFR chapter III. The report form is submitted by state chartered and federally-licensed

branches and agencies of foreign banks in the U.S. with $30 million or more in total direct claims on foreign

residents. The Federal Reserve Board collects and processes the report on behalf of FDIC-supervised branches.

The report is submitted quarterly to the appropriate Federal Reserve district bank.

\6\ Not referenced in 12 CFR chapter III. The report form is submitted by banks (other than savings banks) and

bank holding companies with a dollar equivalent of $100 million or more in assets, liabilities, foreign

exchange contracts bought and foreign exchange contracts sold in any six specific foreign currencies as of the

end of a month. The Office of the Comptroller of the Currency collects and processes this monthly report on

behalf of insured state nonmember banks.

\7\ Not referenced in 12 CFR chapter III. The report form is submitted by banks or persons associated with banks

required to file under section 15C of the Securities and Exchange Act of 1934.

[[Page 4899]]

Appendix B to Part 304--[Removed]

8. Appendix B to part 304 is removed.

By Order of the Board of Directors.

Dated at Washington, D.C., this 21st day of January, 1997.

Federal Deposit Insurance Corporation.

Jerry L. Langley,

Executive Secretary.

[FR Doc. 97-2530 Filed 1-31-97; 8:45 am]

BILLING CODE 6714-01-P