Process Overview
Upon closure of a financial institution by the chartering authority and appointment of FDIC as receiver, the FDIC may enter into a Purchase and Assumption Agreement (P&A) with the winning bidder, the Assuming Institution. Settlement 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 after bank failure. 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.
The FDIC Settlement Agent is the Assuming Institution’s primary point of contact for the life of the receivership. The FDIC Settlement Agent works directly with the Assuming Institution's Settlement point of contact to fulfill the terms of the P&A.
Purchase and Assumption Settlement System (PASS) is the communication tool between the Assuming Institution's Settlement point of contact and the FDIC Settlement Agent. The PASS Bankers Portal provides access for Assuming Institutions to electronically submit requests, review and approve transactions.
PASS Bankers Portal Demo Video
This video demonstrates the PASS Bankers Portal for Assuming Institutions. It includes instructions on how to login to the system and access settlement requests, transactions, and payments.
Frequently Asked Questions
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Questions and Answers |
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What is Settlement? Settlement is the administration of the P&A Agreement between an Assuming Institution, FDIC in its corporate capacity, and FDIC as receiver for a failed institution. The Assuming Institution purchases certain assets, assumes certain liabilities, and is obligated to perform administrative duties detailed in the agreement. |
When does the Settlement begin? Settlement begins when the FDIC is appointed receiver of the failed institution by the chartering authority and a P&A is executed with a winning bidder. |
How long does the settlement period last? The settlement period may last up to 364 days after bank failure. |
What happens during the settlement 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? Shortly after the chartering authority closes the institution, FDIC publishes the Purchase and Assumption Agreement and the public bid summary on the FDIC's Failed Bank List website. |
How does the Assuming Institution request access to the PASS Bankers Portal? The Assuming Institution Settlement point of contact should contact the FDICconnect coordinator at one's financial institution to request access. |
How does an Assuming Institution determine who is the FDICconnect coordinator for their financial institution? The Assuming Institution Settlement point of contact can contact the FDICconnect Help Desk for assistance. |