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4000 - Advisory Opinions

Documents Required When A Bank Fails and Records Are Missing, Incomplete or Incorrect


December 21, 1988

Roger A. Hood, Assistant General Counsel

You have inquired as to the type and form of documents which would be required by the FDIC, and would be considered as conclusive proof, in the event of the liquidation of an FDIC-insured bank when the bank's records are either missing, incomplete or incorrect. With your December 15 letter you provided samples of certain documents used by *** and its clients in transmitting funds and establishing deposits in FDIC-insured banks.

As you know, the FDIC's regulations (12 C.F.R. 330.1(b)(1)) require that the deposit records of the bank disclose the existence of a relationship, such as agent, on which a claim for insurance is founded.

We recognize that certain conditions can occur, such as the closing of an insured bank because of insolvency either after the receipt of funds transmitted for deposit but prior to its being able to provide to the depositor written evidence of the registration of an account, or during a period in which an account registration is being corrected.

In a case where the records of an insured bank differ from the records of the account holder, as to the question of the intended form of registration the FDIC will accept as conclusive the genuine, unaltered records of the account holder, maintained in good faith and in the ordinary course of business, when such records include, at a minimum, the following:

1)  Federal Reserve wire advice indicating the fiduciary relationship of the account holder, if any.

2)  Confirmation sent by the account holder, or a service company employed by the account holder, to the issuing bank which is consistent with the information contained in the wire advice.

3)  Confirmation sent to the account holder, as agent (or nominee, trustee, custodian, etc.), to their customer evidencing the placing of the deposit in the issuing bank.

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