Deposit Insurance Assessments Late Assessment Penalties
FIL-43-2007 June 4, 2007
On November 2, 2006, the FDIC Board of Directors approved the final rule to implement provisions of the Federal Deposit Insurance Reform Act of 2005 that provide penalties for failure to timely pay assessments (12 C.F.R. § 308.132(c)(3)(v)). The FDIC will apply the provisions of the final rule beginning with the assessment collection made on the June 29, 2007, payment date.
The FDIC will implement the new late assessment
penalties rule beginning with the June 29, 2007,
An institution that fails to timely pay an assessment of $10,000 or more is subject to a penalty of not more than 1 percent of the late assessment amount due for each day that the assessment is unpaid. An institution that fails to timely pay an assessment of less than $10,000 is subject to a penalty of not more than $100 per day for each day that the assessment is unpaid.
The FDIC, in its sole discretion, may compromise, modify or remit a late assessment penalty upon finding that good cause prevented timely payment (that is, failure to pay is due to matters outside the institution's control, such as a natural disaster).
Assessment payments are considered timely if the FDIC is able to debit the account designated by an institution for the full amount on the payment due date.
To avoid late assessment penalties, institutions should
make sure that the Automated Clearing House (ACH)
payment information supplied to the FDIC for assessment
collections is up to date and that their designated ACH
accounts are adequately funded prior to the payment
date. Institutions' current payment information is located
in section VI of the Quarterly Certified Statement Invoice.
ACH payment information can be updated via
FDICconnect. To avoid last-minute difficulties, the FDIC
urges all institutions to check the validity of the payment
information, and to make sure they have an active
FDICconnect coordinator and assessment transaction
All FDIC-insured Institutions
Chief Executive Officer
Chief Financial Officer
Federal Deposit Insurance Act, 12 U.S.C. 1817,
FDIC Rules of Practice and Procedure, 12 CFR
308, Subpart H
Donna M. Saulnier, Senior Assessment Policy
Specialist, Division of Finance, on (703) 562-6167
William V. Farrell, Manager, Assessments Section,
Division of Finance, on (703) 562-6168
Christopher Bellotto, Counsel, Legal Division, on