The Federal Deposit Insurance Corporation (FDIC) is providing flexibility in
the administration of the requirements in the FDIC’s Rules and
Regulations for brokered deposit waivers (Section 303.243), main office and
branch relocations (Section 303.45), and the appraisal requirements in Part
323 for institutions affected by Hurricanes Katrina and Rita.
Brokered Deposit Waivers for Adequately
Capitalized Institutions
Section 29 of the FDIC Act prohibits an institution that is not
well-capitalized from accepting funds for deposit obtained through a deposit
broker. Adequately capitalized institutions must obtain waivers from the
FDIC in order to accept brokered deposits. Section 303.243 (c) contains the
waiver application requirements that include detailed market and financial
information. The FDIC may modify the waiver filing requirements on a
case-by-case basis when information is not available or other good cause for
institutions affected by Hurricanes Katrina and Rita.
Main Office and Branch Relocations
Section 303.45 of the FDIC’s Rules and Regulations requires
institutions to notify the FDIC of temporary relocations and
re-designations, and submit a written application in emergency situations.
The FDIC, on a case-by-case basis, may allow applications to be received
through FDICconnect, electronic mail services, facsimile, and
telephonic communication.
Appraisal Regulations
The FDIC and the other federal financial institution regulatory agencies
have granted a waiver of their appraisal regulations for three years to
institutions affected by Hurricanes Katrina and Rita. This appraisal waiver
covers real estate-related transactions in certain Alabama, Mississippi, and
Texas counties and Louisiana parishes. To qualify for the waiver, a
financial institution needs to document that: (1) the property involved was
directly affected by the major disaster or the transaction would facilitate
recovery from the disaster; (2) there is a binding commitment to fund the
transaction that is made within three years after the date the major
disaster was declared; and (3) the value of the real property supports the
institution’s decision to enter into the transaction. When an
institution decides to rely on the appraisal waiver for a particular real
estate-related transaction, the institution should provide sufficient
documentation in the loan file to support its credit decision and assessment
of the collateral’s value. Such exempted transactions will continue to
be subject to examiner review. The order will be published in the
Federal Register and posted on the FDIC’s Web site (www.fdic.gov).
For additional information about the listed regulations, please communicate
with the contact person for your state.
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Christopher J.
Spoth
Acting Director
Division of Supervision and Consumer Protection
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