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2000 - Rules and Regulations
{{12-31-08 p.2281}}
PART 327—ASSESSMENTS
Subpart A—In General
Sec.
327.1
Purpose and scope.
327.2
Certified statements.
327.3
Payment of assessments.
327.4
Assessment rates.
327.5
Assessment base.
327.6
Terminating transfers; other terminations of insurance.
327.7
Payment of interest on assessment underpayments and overpayments.
327.8
Definitions.
327.9
Assessment risk categories and pricing methods.
327.10
Assessment rate schedules.
Appendix A to Part
327 — Method to Derive Pricing Multipliers and Uniform Amount
Appendix B to Part
327 — Numerical Conversion of Long-Term Debt Issuer Ratings
Appendix C to Part
327 — Additional Risk Considerations for Large Risk Category I
Institutions
Subpart B—Implementation of One-Time Assessment Credit
327.30
Purpose and scope.
327.31
Definitions.
327.32
Determination of aggregate credit amount.
327.33
Determination of eligible institution's credit amount.
327.34
Transferability of credits.
327.35
Application of credits.
327.36
Requests for review of credit amount.
Subpart C—Implementation of Dividend Requirements
327.50
Purpose and scope.
327.51
Definitions.
327.52
Annual dividend determination.
327.53
Allocation and payment of dividends.
327.54
Request for review.
AUTHORITY: 12 U.S.C. 1441, 1813, 1815, 1817--1819, 1821;
Sec. 2101--2109, Pub. L. 109--171, 120 Stat. 9--21, and Sec. 3, Pub. L.
109--173, 119 Stat. 3605.
SOURCE: The provisions of this Part 327 appear at 54 Fed. Reg.
51374, December 15, 1989,
71
Fed. Reg. 61383, effective November 17, 2006,
71
Fed. Reg. 61389, October 18, 2006, effective January 1, 2007
and 73 Fed. Reg. 73162, December 2, 2008, effective January 1, 2009
except as otherwise noted.
Subpart A—In
General
§ 327.1 Purpose and scope.
(a) Scope. This Part 327 applies to any insured
depository institution, including any insured branch of a foreign bank.
(b) Purpose. (1) Except as specified in paragraph (b)(2)
of this section, this Part 327 sets forth the rules for:
(i) The time and manner of filing certified statements by insured
depository institutions;
(ii) The time and manner of payment of the assessments by such
institutions; and
(iii) The payment of assessments by depository institutions whose
insured status has terminated.
(iv) The classification of depository institutions for risk; and
(v) The processes for review of assessments.
(2) Deductions from the assessment base of an insured branch of a
foreign bank are stated in
subpart B part 347 of
this chapter.
{{12-31-08 p.2282}}
[Codified to 12 C.F.R. § 327.1]
[Section 327.2 amended at 59 Fed. Reg. 67160, December 29,
1994, effective April 1, 1995; 63 Fed. Reg. 17075, April 8, 1998,
effective July 1, 1998; 71 Fed. Reg. 69277, November 30, 2006,
effective January 1, 2007]
§ 327.2 Certified statements.
(a) Required. (1) The certified statement shall also be
known as the quarterly certified statement invoice. Each insured
depository institution shall file and certify its quarterly certified
statement invoice in the manner and form set forth in this section.
(2) The quarterly certified statement invoice shall reflect the
institution's risk assignment, assessment base, assessment
computation, and assessment amount, for each quarterly assessment
period.
(b) Availability and access. (1) The Corporation shall
make available to each insured depository institution via the FDIC's
e-business Web site FDICconnect a quarterly certified
statement invoice each assessment period.
(2) Insured depository institutions shall access their quarterly
certified statement invoices via FDICconnect, unless the
FDIC provides notice to insured depository institutions of a successor
system. In the event of a contingency, the FDIC may employ an
alternative means of delivering the quarterly certified statement
invoices. A quarterly certified statement invoice delivered by any
alternative means will be treated as if it had been downloaded from
FDICconnect.
(3) Institutions that do not have Internet access may request a
renewable one-year exemption from the requirement that quarterly
certified statement invoices be accessed through
FDICconnect. Any exemption request must be submitted in
writing to the Manager of the Assessment Section.
(4) Each assessment period, the FDIC will provide courtesy e-mail
notification to insured depository institutions indicating that new
quarterly certified statement invoices are available and may be
accessed on FDICconnect. E-mail notification will be sent to
all individuals with FDICconnect access to quarterly
certified statement invoices.
(5) E-mail notification may be used by the FDIC to communicate
with insured depository institutions regarding quarterly certified
statement invoices and other assessment-related matters.
(c) Review by institution. The president of each insured
depository institution, or such other officer as the institution's
president or board of directors or trustees may designate, shall review
the information shown on each quarterly certified statement invoice.
(d) Retention by institution. If the appropriate officer
of the insured depository institution agrees that, to the best of his
or her knowledge and belief, the information shown on the quarterly
certified statement invoice is true, correct, and complete and in
accordance with the Federal Deposit Insurance Act and the regulations
issued under it, the institution shall pay the amount specified on the
quarterly certified statement invoice and shall retain it in the
institution's files for three years as specified in
section 7(b)(4) of the Federal
Deposit Insurance Act.
(e) Amendment by institution. If the appropriate officer
of the insured depository institution determines that, to the best of
his or her knowledge and belief, the information shown on the quarterly
certified statement invoice is not true, correct, and complete and in
accordance with the Federal Deposit Insurance Act and the regulations
issued under it, the institution shall pay the amount specified on the
quarterly certified statement invoice, and may:
(1) Amend its report of conditions, or other similar report, to
correct any data believed to be inaccurate on the quarterly certified
statement invoice; amendments to such reports timely filed under
section 7(g) of the Federal Deposit Insurance Act but not permitted to
be made by an institution's primary federal regulator may be filed
with the FDIC for consideration in determining deposit insurance
assessments; or
(2) Amend and sign its quarterly certified statement invoice to
correct a calculation believed to be inaccurate and return it to the
FDIC by the applicable payment date specified in
§ 327.3(b)(2).
{{12-29-06 p.2283}}
(f) Certification. Data used by the Corporation to
complete the quarterly certified statement invoice has been previously
attested to by the institution in its reports of condition, or other
similar reports, filed with the institution's primary federal
regulator. When an insured institution pays the amount shown on the
quarterly certified statement invoice and does not correct that invoice
as provided in paragraph (e) of this section, the information on that
invoice shall be deemed true, correct, complete, and certified for
purposes of paragraph (a) of this section and section 7(c) of the
Federal Deposit Insurance Act.
(g) Requests for revision of assessment computation. (1)
The timely filing of an amended report of condition or other similar
report under paragraph (e)(1) of this section, or the timely filing of
an amended quarterly certified statement invoice under paragraph
(e)(2), that will result in a change to deposit insurance assessments
owed or paid by an insured depository institution, shall be treated as
a timely filed request for revision of computation of quarterly
assessment payment under § 327.3(f).
(2) The assessment rate on the quarterly certified statement
invoice shall be amended only if it is inconsistent with the assessment
risk assignment(s) provided to the institution by the Corporation for
the assessment period in question pursuant to § 327.4(a). Agreement
with the assessment rate shall not be deemed to constitute agreement
with the assessment risk assignment. An institution may request review
of an assessment risk assignment it believes to be incorrect pursuant
to § 327.4(c).
[Codified to 12 C.F.R. § 327.2]
[Section 327.2 amended at 59 Fed. Reg. 67160, December 29,
1994, effective April 1, 1995; revised at 69 Fed. Reg. 68073, November
23, 2004, effective March 1, 2005; 71 Fed. Reg. 69277, November 30,
2006, effective January 1, 2007]
§ 327.3 Payment of assessments.
(a) Required. (1) In general. Except as
provided in paragraph (b) of this section, each insured depository
institution shall pay to the Corporation for each assessment period an
assessment determined in accordance with this part 327.
(2) Notice of designated deposit account. For the
purpose of making such payments, each insured depository institution
shall designate a deposit account for direct debit by the Corporation.
No later than 30 days prior to the next payment date specified in
paragraph (b)(2) of this section, each institution shall provide notice
to the Corporation via FDICconnect of the account
designated, including all information and authorizations needed by the
Corporation for direct debit of the account. After the initial notice
of the designated account, no further notice is required unless the
institution designates a different account for assessment debit by the
Corporation, in which case the requirements of the preceding sentence
apply.
(3) Transition Rule for Financing Corporation (FICO)
Payments. Quarterly FICO payments shall be collected by the FDIC
without interruption during the assessment system transitional period
in 2007. All insured depository institutions shall make scheduled
quarterly FICO payments on January 2, 2007 (unless prepaid on December
30, 2006), and March 30, 2007, based upon, respectively, their
September 30, 2006, and December 31, 2006 reported assessment bases,
which shall be the final assessment bases calculated pursuant to 12 CFR
327.5(a) and (b) (2006). Simultaneous collection of deposit insurance
assessments and FICO assessments will resume in June of 2007, based on
the March 31, 2007 reported assessment base.
(b) Assessment payment--(1) Quarterly certified
statement invoice. Starting with the first assessment period of
2007, no later than 15 days prior to the payment date specified in
paragraph (b)(2) of this section, the Corporation will provide to each
insured depository institution a quarterly certified statement invoice
showing the amount of the assessment payment due from the institution
for the prior quarter (net of credits or dividends, if any), and the
computation of that amount. Subject to paragraph (e) of this section,
the invoiced amount of the quarterly certified statement invoice shall
be the product of the following:
{{12-29-06 p.2284}}the assessment base of the
institution for the prior quarter computed in accordance with § 327.5
multiplied by the institution's rate for the prior quarter as assigned
to the institution pursuant to §§ 327.4(a) and 327.9.
(2) Quarterly payment date and manner. The Corporation
will cause the amount stated in the applicable quarterly certified
statement invoice to be directly debited on the appropriate payment
date from the deposit account designated by the insured depository
institution for that purpose as follows:
(i) In the case of the assessment payment for the quarter that
begins on January 1, the payment date is the following June 30;
(ii) In the case of the assessment payment for the quarter that
begins on April 1, the payment date is the following September 30;
(iii) In the case of the assessment payment for the quarter that
begins on July 1, the payment date is the following December 30; and
(iv) In the case of the assessment payment for the quarter that
begins on October 1, the payment date is the following March 30.
(c) Necessary action, sufficient funding by institution.
Each insured depository institution shall take all actions
necessary to allow the Corporation to debit assessments from the
insured depository institution's designated deposit account. Each
insured depository institution shall, prior to each payment date
indicated in paragraph (b)(2) of this section, ensure that funds in an
amount at least equal to the amount on the quarterly certified
statement invoice are available in the designated account for direct
debit by the Corporation. Failure to take any such action or to provide
such funding of the account shall be deemed to constitute nonpayment of
the assessment. Penalties for failure to timely pay assessments are
provided for at 12 CFR
308.132(c)(3)(v).
(d) Business days. If a payment date specified in
paragraph (b)(2) falls on a date that is not a business day, the
applicable date shall be the previous business day.
(e) Payment adjustments in succeeding quarters.
Quarterly certified statement invoices provided by the Corporation
may reflect adjustments, initiated by the Corporation or an
institution, resulting from such factors as amendments to prior
quarterly reports of condition, retroactive revision of the
institution's assessment risk assignment, and revision of the
Corporation's assessment computations for prior quarters.
(f) Request for revision of computation of quarterly
assessment payment--(1) In general. An institution may
submit a written request for revision of the computation of the
institution's quarterly assessment payment as shown on the quarterly
certified statement invoice in the following circumstances:
(i) The institution disagrees with the computation of the
assessment base as stated on the quarterly certified statement invoice;
(ii) The institution determines that the rate applied by the
Corporation is inconsistent with the assessment risk assignment(s)
provided to the institution in writing by the Corporation for the
assessment period for which the payment is due; or
(iii) The institution believes that the quarterly certified
statement invoice does not fully or accurately reflect adjustments
provided for in paragraph (e) of this section.
(2) Inapplicability. This paragraph (f) is not
applicable to requests for review of an institution's assessment risk
assignment, which are covered by § 327.4(c) of this part.
(3) Requirements. Any such request for revision must
be submitted within 90 days from the date the computation being
challenged appears on the institution's quarterly certified statement
invoice. The request for revision shall be submitted to the Manager of
the Assessments Section and shall provide documentation sufficient to
support the change sought by the institution. If additional information
is requested by the Corporation, such information shall be provided by
the institution within 21 days of the date of the request for
additional information. Any institution submitting a timely request for
revision will receive written notice form the Corporation regarding the
outcome of its request. Upon completion of a review, the DOF Director
(or designee) shall promptly notify the institution in writing of his
or her determination of whether revision is warranted. If the
institution requesting revision disagrees with that determination, it
may appeal to the FDIC's
{{10-31-07 p.2285}}Assessment Appeals Committee.
Notice of the procedures applicable to appeals will be included with
the written determination.
(g) Quarterly certified statement invoice unavailable.
Any institution whose quarterly certified statement invoice is
unavailable on FDICconnect by the fifteenth day of the month
in which the payment is due shall promptly notify the Corporation.
Failure to provide prompt notice to the Corporation shall not affect
the institution's obligation to make full and timely assessment
payment. Unless otherwise directed by the Corporation, the institution
shall preliminarily pay the amount shown on its quarterly certified
statement invoice for the preceding assessment period, subject to
subsequent correction.
[Codified to 12 C.F.R. § 327.3]
[Section 327.3 added at 59 Fed. Reg. 67161, December 29,
1994, effective April 1, 1995; amended at 60 Fed. Reg. 50407, September
29, 1995; 61 Fed. Reg. 67696, December 24, 1996, effective December 11,
1996; 64 Fed. Reg. 70181, December 16, 1999, effective April 1, 2000;
71 Fed. Reg. 69278, November 30, 2006, effective January 1,
2007]
§ 327.4 Assessment rates.
(a) Assessment risk assignment. For the purpose of
determining the annual assessment rate for insured depository
institutions under § 327.9 each insured depository institution will
be provided an assessment risk assignment. Notice of an institution's
current assessment risk assignment will be provided to the institution
with each quarterly certified statement invoice. Adjusted assessment
risk assignments for prior periods may also be provided by the
Corporation. Notice of the procedures applicable to reviews will be
included with the notice of assessment risk assignment provided
pursuant to paragraph (a) of this section.
(b) Payment of assessment at rate assigned. Institutions
shall make timely payment of assessments based on the assessment risk
assignment in the notice provided to the institution pursuant to
paragraph (a) of this section. Timely payment is required
notwithstanding any request for review filed pursuant to paragraph (c)
of this section. Assessment risk assignments remain in effect for
future assessment periods until changed. If the risk assignment in the
notice is subsequently changed, any excess assessment paid by the
institution will be credited by the Corporation, with interest, and any
additional assessment owned shall be paid by the institution, with
interest, in the next assessment payment after such subsequent
assignment or change. Interest payable under this paragraph shall be
determined in accordance with § 327.7.
(c) Requests for review. An institution that believes
any assessment risk assignment provided by the Corporation pursuant to
paragraph (a) of this section is incorrect and seeks to change it must
submit a written request for review of that risk assignment. An
institution cannot request review through this process of the CAMELS
ratings assigned by its primary federal regulator; each federal
regulator has established procedures for that purpose. An institution
may also request review of a determination by the FDIC to assess the
institution as a large or a small institution (12 CFR 327.9(d)(6)) or a
determination by the FDIC that the institution is a new institution (12
CFR 327.9(d)(7)). Any request for review must be submitted within 90
days from the date the assessment risk assignment being challenged
pursuant to paragraph (a) of this section appears on the institution's
quarterly certified statement invoice. The request shall be submitted
to the Corporation's Director of the Division of Insurance and
Research in Washington, DC, and shall include documentation sufficient
to support the change sought by the institution. If additional
information is requested by the Corporation, such information shall be
provided by the institution within 21 days of the date of the request
for additional information. Any institution submitting a timely request
for review will receive written notice from the Corporation regarding
the outcome of its request. Upon completion of a review, the Director
of the Division of Insurance and Research (or designee) or the Director
of the Division of Supervision and Consumer Protection (or designee),
as appropriate, shall promptly notify the institution in writing of his
or her determination of whether a change is warranted. If the
institution requesting review disagrees with that determination, it may
appeal to the FDIC's Assessment Appeals Committee. Notice of the
procedures applicable to appeals will be included with the written
determination.
{{10-31-07 p.2286}}
(d) Disclosure restrictions. The portion of an
assessment risk assignment provided to an institution by the
Corporation pursuant to paragraph (a) of this section that reflects any
supervisory evaluation or confidential information is deemed to be
exempt information within the scope of
§ 309.5(g)(8) of this
chapter and, accordingly, is governed by the disclosure restrictions
set out at § 309.6 of
this chapter.
(e) Limited use of assessment risk assignment. Any
assessment risk assignment provided to a depository institution under
this part 327 is for purposes of implementing and operating the FDIC's
risk-based assessment system. Unless permitted by the Corporation or
otherwise required by law, no institution may state in any
advertisement or promotional material, or in any other public place or
manner, the assessment risk assignment provided to it pursuant to this
part.
(f) Effective date for changes to risk assignment. (1)
Changes to an insured institution's risk assignment resulting from a
supervisory ratings change become effective as of the date of written
notification to the institution by its primary federal regulator or
state authority of its supervisory rating (even when the CAMELS
component ratings have not been disclosed to the institution), if the
FDIC, after taking into account other information that could affect the
rating, agrees with the rating. If the FDIC does not agree, changes to
an insured institution's risk assignment become effective as of the
date that the FDIC determines that a change in the supervisory rating
is warranted.
(g) Designated reserve ratio. The designated reserve
ratio for the Deposit Insurance Fund is 1.25 percent.
(2) Changes to an insured institution's risk assignment
resulting from a change in a long-term debt issuer rating become
effective as of the date the change is announced by the rating agency.
[Codified to 12 C.F.R. § 327.4]
[Section 327.3 amended at 57 Fed. Reg. 45284, October 1,
1992, effective November 2, 1992; 58 Fed. Reg. 34364, June 25, 1993,
effective October 1, 1993; redesignated as section 327.4 and amended at
59 Fed. Reg. 67161, December 29, 1994, effective April 1, 1995; 61 Fed.
Reg. 67696, December 24, 1996, effective December 11, 1996; 63 Fed.
Reg. 17075, April 8, 1998, effective July 1, 1998; 64 Fed. Reg. 70181,
December 16, 1999, effective April 1, 2000; 67 Fed. Reg. 44351, July 2,
2002, effective June 30, 2002; 70 Fed. Reg. 17560, April 6, 2005,
effective July 1, 2005; 71 Fed. Reg. 69279, November 30, 2006,
effective January 1, 2007; 71 Fed. Reg. 69326, November 30, 2006,
effective January 1, 2007]
§ 327.5 Assessment base.
(a) Quarter-end balances and average daily balances. An
insured depository institution shall determine its assessment base
using quarter-end balances until changes in the quarterly report of
condition allow it to report average daily deposit balances on the
quarterly report of condition, after which--
(1) An institution that becomes newly insured after the first
report of condition allowing for average daily balances shall have its
assessment base determined using average daily balances;
(2) An insured depository institution (other than one covered in
paragraph (a)(1) of this section) reporting assets of $1 billion or
more on the first report of condition allowing for average daily
balances, shall within one year after so reporting have its assessment
base determined using average daily balances;
(3) An insured depository institution (other than one covered in
paragraph (a)(1) of this section) that was insured prior to the first
report of condition allowing for average daily balances, reporting less
than $1 billion in assets on the first report of condition allowing for
average daily balances--
(i) May continue to have its assessment base determined using
quarter end balances; or
(ii) May opt permanently to have its assessment base determined
using average daily balances after notice to the Corporation,
but
{{12-29-06 p.2287}}
(iii) Shall have its assessment rate determined using average
daily balances for any quarter beginning six months after the
institution reported that its assets equaled or exceeded $1 billion for
two consecutive quarters and thereafter; and
(4) In any event, an insured depository institution that files
its report of condition on a consolidated basis by including a
subsidiary bank(s) or savings association(s) shall report its
assessment base on an unconsolidated basis.
(b) Computation of assessment base. Whether computed on
a quarter-end balance or an average daily balance, the assessment base
for any insured institution that is required to file a quarterly report
of condition shall be computed by:
(1) Adding all deposit liabilities as defined in section
3(l) of the Federal
Deposit Insurance Act, to include deposits that are held in any insured
branches of the institution that are located in the territories and
possessions of the Untied States, but does not include unposted credits
and is not reduced by unposted debits; and
(2) Subtracting the following allowable exclusions, in the case
of any institution that maintains such records as will readily permit
verification of the correctness of its assessment base--
(i) Any demand deposit balance due from or cash item in the
process of collection due from any depository institution (not
including a private depository institution, a foreign depository
institution, a foreign office of another U.S. depository institution,
or a U.S. branch of a foreign depository institution) up to the total
of the amount of deposit balances due to and cash items in the process
of collection due to such depository institution that are included in
paragraph (b)(1) of this section;
(ii) Any outstanding drafts (including advises and authorization
to charge deposit institution's balance in another bank) drawn in the
regular course of business;
(iii) Any pass-through reserve balances;
(iv) Liabilities arising from a depository institution investment
contract that are not treated as insured deposits under section
11(a)(5) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(a)(5)); and
(v) Deposits accumulated for the payment of personal loans, which
represent actual loan payments received by the depository institution
from borrowers and accumulated by the depository institution in
hypothecated deposit accounts for payment of the loans at maturity.
Time and savings deposits that are pledged as collateral to secure
loans are not "deposits accumulated for the payment of personal
loans."
(c) Newly insured institutions. A newly insured
institution shall pay an assessment for the assessment period during
which it became an insured institution.
[Codified to 12 C.F.R. § 327.5]
[Section 327.4 amended at 58 Fed. Reg. 34365, June 25,
1993, effective October 1, 1993; redesignated as section 327.5 and
amended at 59 Fed. Reg. 67162, December 29, 1994, effective April 1,
1995; 71 Fed. Reg. 69279, November 30, 2006, effective January 1,
2007]
§ 327.6 Terminating transfers; other terminations of insurance.
(a) Terminating institution's final two quarterly certified
statement invoices. If a terminating institution does not file a
report of condition for the quarter prior to the quarter in which the
terminating transfer occurs, its assessment base for the quarterly
certified statement invoice or invoices for which it failed to file a
report of condition shall be deemed to be its assessment base for the
last quarter for which the institution filed a report of condition. The
acquiring institution in a terminating transfer is liable for paying
the final invoices of the terminating institution. The terminating
institution's assessment for the quarter prior to the quarter in which
the terminating transfer occurs shall be calculated at the terminating
institution's rate.
(b) Assessment for quarter in which the terminating transfer
occurs--(1) Acquirer using Average Daily Balances. If
an acquiring institution's assessment base is computed using average
daily balances pursuant to § 327.5, the terminating institution's
assessment for the quarter in which the terminating transfer occurs
shall be reduced by the percentage of the quarter remaining after the
terminating transfer and calculated at the acquiring institution's
rate.
{{12-29-06 p.2288}}
(2) Acquirer using Quarter-end Balances. If an
acquiring institution's assessment base is computed as a quarter-end
balance pursuant to § 327.5, its assessment for the quarter in which
the terminating transfer occurs shall be the acquiring institution's
quarter-end balance calculated at the acquiring institution's
assessment rate, and the terminating institution shall not be assessed
separately for that quarter.
(c) Other termination. When the insured status of an
institution is terminated, and the deposit liabilities of such
institution are not assumed by another insured depository institution--
(1) Payment of assessments; quarterly certified statement
invoices. The terminating depository institution shall continue to
file and certify its quarterly certified statement invoice and pay
assessments for the assessment period its deposits are insured. Such
terminating institution shall not be required to certify its quarterly
certified statement invoice and pay further assessments after it has
paid in full its deposit liabilities and the assessment to the
Corporation required to be paid for the assessment period in which its
deposit liabilities are paid in full, and after it, under applicable
law, goes out of business or transfers all or substantially all of its
assets and liabilities to other institutions or otherwise ceases to be
obliged to pay subsequent assessments.
(2) Payment of deposits; certification to Corporation.
When the deposit liabilities of the depository institution have been
paid in full, the depository institution shall certify to the
Corporation that the deposit liabilities have been paid in full and
give the date of the final payment. When the depository institution has
unclaimed deposits, the certification shall further state the amount of
the unclaimed deposits and the disposition made of the funds to be held
to meet the claims. For assessment purposes, the following will be
considered as payment of the unclaimed deposits:
(i) The transfer of cash funds in an amount sufficient to pay the
unclaimed and unpaid deposits to the public official authorized by law
to receive the same; or
(ii) If no law provides for the transfer of funds to a public
official, the transfer of cash funds or compensatory assets to an
insured depository institution in an amount sufficient to pay the
unclaimed and unpaid deposits in consideration for the assumption of
the deposit obligations by the insured depository institution.
(3) Notice to depositors. (i) The terminating
depository institution shall give sufficient advance notice of the
intended transfer to the owners of the unclaimed deposits to enable the
depositors to obtain their deposits prior to the transfer. The notice
shall be mailed to each depositor and shall be published in a local
newspaper of general circulation. The notice shall advise the
depositors of the liquidation of the depository institution, request
them to call for and accept payment of their deposits, and state the
disposition to be made of their deposits if they fail to promptly claim
the deposits.
(ii) If the unclaimed and unpaid deposits are disposed of as
provided in paragraph (b)(2)(i) of this section, a certified copy of
the public official's receipt issued for the funds shall be furnished
to the Corporation.
(iii) If the unclaimed and unpaid deposits are disposed of as
provided in paragraph (b)(2)(ii) of this section, an affidavit of the
publication and of the mailing of the notice to the depositors,
together with a copy of the notice and a certified copy of the contract
of assumption, shall be furnished to the Corporation.
(4) Notice to Corporation. The terminating depository
institution shall advise the Corporation of the date on which it goes
out of business or transfers all or substantially all of its assets and
liabilities to other institutions or otherwise ceases to be obligated
to pay subsequent assessments and the method whereby the termination
has been effected.
(d) Resumption of insured status before insurance of deposits
ceases. If a depository institution whose insured status has been
terminated is permitted by the Corporation to continue or resume its
status as an insured depository institution before the insurance of its
deposits has ceased, the institution will be deemed, for assessment
purposes, to continue as an insured depository institution and must
thereafter file and certify its quarterly certified statement invoices
and pay assessments as though its insured status had not been
terminated. The procedure for applying for the continuance or
resumption of insured status is set forth in § 303.248 of this
chapter.
[Codified to 12 C.F.R. § 327.6]
{{12-29-06 p.2289}}
[Section 327.6 amended at 59 Fed. Reg. 67164, December 29,
1994, effective April 1, 1995; 61 Fed. Reg. 64983, December 10, 1996,
effective January 1, 1997; 71 Fed. Reg. 69280, November 30, 2006,
effective January 1, 2007]
§ 327.7 Payment of interest on assessment underpayments and
overpayments.
(a) Payment of interest--(1) Payment by
institutions. Each insured depository institution shall pay
interest to the Corporation on any underpayment of the institution's
assessment.
(2) Payment by Corporation. The Corporation will pay
interest on any overpayment by the institution of its assessment.
(3) Accrual of interest. (i) Interest on an amount
owed to or by the Corporation for the underpayment or overpayment of an
assessment shall accrue interest at the relevant interest rate.
(ii) Interest on an amount specified in paragraph (a)(3)(i) of
this section shall begin to accrue on the day following the regular
payment date, as provided for in § 327.3(b)(2), for the amount so
overpaid or underpaid, provided, however, that interest shall not begin
to accrue on any overpayment until the day following the date such
overpayment was received by the Corporation. Interest shall continue to
accrue through the date on which the overpayment or underpayment
(together with any interest thereon) is discharged.
(iii) The relevant interest rate shall be redetermined for each
quarterly assessment interval. A quarterly assessment interval begins
on the day following a regular payment date, as specified in
§ 327.3(b)(2), and ends on the immediately following regular payment
date.
(b) Interest rates. (1) The relevant interest rate for a
quarterly assessment interval that includes the month of January,
April, July, and October, respectively, is the coupon equivalent yield
of the average discount rate set on the 3-month Treasury bill at the
last auction held by the United States Treasury Department during the
preceding December, March, June, and September, respectively.
(2) The relevant interest rate for a quarterly assessment
interval will apply to any amounts overpaid or underpaid on the payment
date immediately prior to the beginning of the quarterly assessment
interval. The relevant interest rate will also apply to any amounts
owed for previous overpayments or underpayments (including any interest
thereon) that remain outstanding, after any adjustments to such
overpayments or underpayments have been made thereon, at the end of the
regular payment date immediately prior to the beginning of the
quarterly assessment interval. Interest will be compounded daily.
[Codified to 12 C.F.R. § 327.7]
[Section 327.7 amended at 57 Fed. Reg. 45286, October 1,
1992, effective November 2, 1992; 59 Fed. Reg. 67164, December 29,
1994, effective April 1, 1995; 60 Fed. Reg. 50409, September 29, 1995,
effective October 30, 1995; 71 Fed. Reg. 69281, November 30, 2006,
effective January 1, 2007]
§ 327.8 Definitions.
For purposes of this part 327:
(a) Deposits. The term deposit has the
meaning specified in section 3(l) of the Federal Deposit
Insurance Act.
(b) Quarterly report of condition. The term
quarterly report of condition means a report required to be
filed pursuant to section
7(a)(3) of the Federal Deposit Insurance Act.
(c) Assessment period--In general. The term
assessment period means a period beginning on January 1 of
any calendar year and ending on March 31 of the same year, or a period
beginning on April 1 of any calendar year and ending on June 30 of the
same year; or a period beginning on July 1 of any calendar year and
ending on September 30 of the same year; or a period beginning on
October 1 of any calendar year and ending on December 31 of the same
year.
(d) Acquiring institutions. The term acquiring
institution means an insured depository institution that assumes
some or all of the deposits of another insured depository institution
in a terminating transfer.
{{12-29-06 p.2290}}
(e) Terminating institution. The term terminating
institution means an insured depository institution some or all of
the deposits of which are assumed by another insured depository
institution in a terminating transfer.
(f) Terminating transfer. The term terminating
transfer means the assumption by one insured depository
institution of another insured depository institution's liability for
deposits, whether by way of merger, consolidation, or other statutory
assumption, or pursuant to contract, when the terminating institution
goes out of business or transfers all or substantially all its assets
and liabilities to other institutions or otherwise ceases to be obliged
to pay subsequent assessments by or at the end of the assessment period
during which such assumption of liability for deposits occurs. The term
terminating transfer does not refer to the assumption of
liability for deposits from the estate of a failed institution, or to a
transaction in which the FDIC contributes its own resources in order to
induce a surviving institution to assume liabilities of a terminating
institution.
(g) Small Institution. An insured depository institution
with assets of less than $10 billion as of December 31, 2006 (other
than an insured branch of a foreign bank) shall be classified as a
small institution. If, after December 31, 2006, an institution
classified as large under paragraph (h) of this section reports assets
of less than $10 billion in its reports of condition for four
consecutive quarters, the FDIC will reclassify the institution as small
beginning the following quarter.
(h) Large Institution. An insured depository institution
with assets of $10 billion or more as of December 31, 2006 (other than
an insured branch of a foreign bank) shall be classified as a large
institution. If, after December 31, 2006, an institution classified as
small under paragraph (g) of this section reports assets of $10 billion
or more in its reports of condition for four consecutive quarters, the
FDIC will reclassify the institution as large beginning the following
quarter.
(i) Long-Term Debt Issuer Rating. A long-term debt
issuer rating shall mean a current rating of an insured depository
institution's long-term debt obligations by Moody's Investor
Services, Standard & Poor's, or Fitch Ratings. A long-term debt issuer
rating does not include a rating of a company that controls an insured
depository institution, or an affiliate or subsidiary of the
institution. A current rating shall mean one that has been confirmed or
assigned within 12 months before the end of the quarter for which an
assessment rate is being determined. If no current rating is available,
the institution will be deemed to have no long-term debt issuer rating.
(j) CAMELS composite and CAMELS component ratings. The terms
CAMELS composite ratings and CAMELS component ratings
shall have the same meaning as in the Uniform Financial Institutions
Rating System as published by the Federal Financial Institutions
Examination Council.
(k) ROCA supervisory ratings. ROCA supervisory ratings
rate risk management, operational controls, compliance, and asset
quality.
(l) New depository institution. A new insured depository
institution is a bank or thrift that has not been chartered for at
least five years as of the last day of any quarter for which it is
being assessed.
(m) Established depository institution. An established
institution is a bank or thrift that has been chartered for at least
five years as of the last day of any quarter for which it is being
assessed.
(n) Risk assignment. An institution's risk assignment
includes assignment to Risk Category I, II, III, or IV, and, within
Risk Category I, assignment to an assessment rate or rates.
[Codified to 12 C.F.R. § 327.8]
[Section 327.8 amended at 59 Fed. Reg. 67164, December 29,
1994, effective April 1, 1995; 60 Fed. Reg. 42741, August 16, 1995,
effective September 15, 1995; 61 Fed. Reg. 64983, December 10, 1996,
effective January 1, 1997; 61 Fed. Reg. 67696, December 24, 1996,
effective December 11, 1996; 62 Fed. Reg. 27176, May 19, 1997,
effective May 6, 1997; 71 Fed. Reg. 69281, November 30, 2006, effective
January 1, 2007]
{{12-29-06 p.2291}}
§ 327.9 Assessment risk categories and pricing methods.
(a) Risk Categories.--Each insured depository
institution shall be assigned to one of the following four Risk
Categories based upon the institution's capital evaluation and
supervisory evaluation as defined in this section.
(1) Risk Category I. All institutions in Supervisory
Group A that are Well Capitalized;
(2) Risk Category II. All institutions in Supervisory
Group A that are Adequately Capitalized, and all institutions in
Supervisory Group B that are either Well Capitalized or Adequately
Capitalized;
(3) Risk Category III. All institutions in Supervisory
Groups A and B that are Undercapitalized, and all institutions in
Supervisory Group C that are Well Capitalized or Adequately
Capitalized; and
(4) Risk Category IV. All institutions in Supervisory
Group C that are Undercapitalized.
(b) Capital evaluations. An institution will receive one
of the following three capital evaluations on the basis of data
reported in the institution's Consolidated Reports of Condition and
Income, Report of Assets and Liabilities of U.S. Branches and Agencies
of Foreign Banks, or Thrift Financial Report dated as of March 31 for
the assessment period beginning the preceding January 1; dated as of
June 30 for the assessment period beginning the preceding April 1;
dated as of September 30 for the assessment period beginning the
preceding July 1; and dated as of December 31 for the assessment period
beginning the preceding October 1.
(1) Well Capitalized. (i) Except as provided in
paragraph (b)(1)(ii) of this section, a Well Capitalized institution is
one that satisfies each of the following capital ratio standards: Total
risk-based ratio, 10.0 percent or greater; Tier 1 risk-based ratio, 6.0
percent or greater; and Tier 1 leverage ratio, 5.0 percent or greater.
(ii) For purposes of this section, an insured branch of a foreign
bank will be deemed to be Well Capitalized if the insured branch:
(A) Maintains the pledge of assets required under
§ 347.209 of this
chapter; and
(B) Maintains the eligible assets prescribed under
§ 347.210 of this
chapter at 108 percent or more of the average book value of the insured
branch's third-party liabilities for the quarter ending on the report
date specified in paragraph (b) of this section.
(2) Adequately Capitalized. (i) Except as provided in
paragraph (b)(2)(ii) of this section, an Adequately Capitalized
institution is one that does not satisfy the standards of Well
Capitalized under this paragraph but satisfies each of the following
capital ratio standards: Total risk-based ratio, 8.0 percent or
greater; Tier 1 risk-based ratio, 4.0 percent or greater; and Tier 1
leverage ratio, 4.0 percent or greater.
(ii) For purposes of this section, an insured branch of a foreign
bank will be deemed to be Adequately Capitalized if the insured branch:
(A) Maintains the pledge of assets required under § 347.209 of
this chapter; and
(B) Maintains the eligible assets prescribed under § 347.210 of
this chapter at 106 percent or more of the average book value of the
insured branch's third-party liabilities for the quarter ending on the
report date specified in paragraph (b) of this section; and
(C) Does not meet the definition of a Well Capitalized insured
branch of a foreign bank.
(3) Undercapitalized. An undercapitalized institution
is one that does not qualify as either Well Capitalized or Adequately
Capitalized under paragraphs (b)(1) and (b)(2) of this section.
(c) Supervisory evaluations. Each institution will be
assigned to one of three Supervisory Groups based on the Corporation's
consideration of supervisory evaluations provided by the institution's
primary federal regulator. The supervisory evaluations include the
results of examination findings by the primary federal regulator, as
well as other information that the primary federal regulator determines
to be relevant. In addition, the Corporation will take into
consideration such other information (such as state examination
findings, if
{{12-29-06 p.2292}}appropriate) as it determines to
be relevant to the institution's financial condition and the risk
posed to the Deposit Insurance Fund. The three Supervisory Groups are:
(1) Supervisory Group "A." This Supervisory
Group consists of financially sound institutions with only a few minor
weaknesses;
(2) Supervisory Group "B." This Supervisory
Group consists of institutions that demonstrate weaknesses which, if
not corrected, could result in significant deterioration of the
institution and increased risk of loss to the Deposit Insurance Fund;
and
(3) Supervisory Group "C." This Supervisory
Group consists of institutions that pose a substantial probability of
loss to the Deposit Insurance Fund unless effective corrective action
is taken.
(d) Determining Assessment Rates for Risk Category I
Institutions. Subject to paragraphs (d)(4), (6), (7) and (8) of
this section, an insured depository institution in Risk Category I,
except for a large institution that has at least one long-term debt
issuer rating, as defined in § 327.8(i), shall have its assessment
rate determined using the supervisory ratings and financial ratios
method set forth in paragraph (d)(1) of this section. A large insured
depository institution in Risk Category I that has at least one
long-term debt issuer rating shall have its assessment rate determined
using the supervisory and debt ratings method set forth in paragraph
(d)(2) of this section (subject to paragraphs (d)(4), (6), (7) and (8)
of this section). The assessment rate for a large institution whose
assessment rate in the prior quarter was determined using the
supervisory and debt ratings method, but which no longer has a
long-term debt issuer rating, shall be determined using the supervisory
ratings and financial ratios method.
(1) Supervisory ratings and financial ratios method.
Under the supervisory ratings and financial ratios method for Risk
Category I institutions, each of five financial ratios and a weighted
average of CAMELS component ratings will be multiplied by a
corresponding pricing multiplier. The sum of these products will be
added to or subtracted from a uniform amount. The resulting sum,
subject to adjustment pursuant to paragraph (d)(4) of this section, if
appropriate, and adjusted for the actual assessment rates set by the
Board under § 327.10, will equal an institution's assessment rate;
provided, however, that no institution's assessment rate will be less
than the minimum rate in effect for Risk Category I institutions for
that quarter nor greater than the maximum rate in effect for Risk
Category I institutions for that quarter. The five financial ratios
are: Tier 1 Leverage Ratio; Loans past due 30--89 days/gross assets;
Nonperforming assets/gross assets; Net loan charge-offs/gross assets;
and Net income before taxes/risk-weighted assets. The ratios are
defined in Table A.1 of Appendix A to this subpart. The ratios will be
determined for an assessment period based upon information contained in
an institution's report of condition filed as of the last day of the
assessment period as set out in § 327.9(b). The weighted average of
CAMELS component ratings is created by multiplying each component by
the following percentages and adding the products: Capital
adequacy--25%, Asset quality--20%, Management--25%, Earnings--10%,
Liquidity--10%, and Sensitivity to market risk--10%. Appendix A to
this subpart contains the initial values of the pricing multipliers and
uniform amount, describes their derivation, and explains how they will
be periodically updated.
(i) Publication and uniform amount and pricing
multipliers. The FDIC will publish notice in the Federal
Register whenever a change is made to the uniform amount or the
pricing multipliers for the supervisory ratings and financial ratios
method.
(ii) Implementation of CAMELS rating changes--(A)
Changes between risk categories. If, during a quarter, a
CAMELS rating change occurs that results in an institution whose Risk
Category I assessment rate is determined using the supervisory ratings
and financial ratios method moving from Risk Category I to Risk
Category II, III or IV, the institution's assessment rate for the
portion of the quarter that it was in Risk Category I shall be
determined using the CAMELS rating in effect before the change, subject
to adjustment pursuant to paragraph (d)(4) of this section, if
appropriate, and adjusted for the actual assessment rates set by the
Board under § 327.10. For the portion of the quarter that the
institution was not in Risk Category I, the institution's assessment
rate shall be determined under the assessment schedule for the
appropriate Risk Category. If, during a
{{12-29-06 p.2293}}quarter, a CAMELS rating change
occurs that results in an institution (other than a large institution
that has at least one long-term debt issuer rating) moving from Risk
Category II, III or IV to Risk Category I, the institution's
assessment rate for the portion of the quarter that it was in Risk
Category I shall be determined using the supervisory ratings and
financial ratios method, subject to adjustment pursuant to paragraph
(d)(4) of this section, if appropriate, and adjusted for the actual
assessment rates set by the Board under § 327.10. For the portion of
the quarter that the institution was not in Risk Category I, the
institution's assessment rate shall be determined under the assessment
schedule for the appropriate Risk Category.
(B) Changes within Risk Category I. If, during a
quarter, an institution's CAMELS component ratings change in a way
that would change the institution's assessment rate within Risk
Category I, the assessment rate for the period before the change shall
be determined under the supervisory ratings and financial ratios method
using the CAMELS component ratings in effect before the change.
Beginning on the date of the CAMELS component ratings change, the
assessment rate for the remainder of the quarter shall be determined
using the CAMELS component ratings in effect after the change.
(2) Supervisory and debt ratings method. A large
insured depository institution in Risk Category I that has at least one
long-term debt issuer rating shall have its assessment rate determined
using the supervisory and debt ratings method (subject to paragraphs
(d)(4) through (8) of this section). Its CAMELS component ratings will
be weighted to derive a weighted average CAMELS rating using the same
weights applied in the supervisory ratings and financial ratios method
as set forth under paragraph (d)(1) of this section. Long-term debt
issuer ratings will be converted to numerical values between 1 and 3 as
provided in Appendix B to this subpart and the converted values will be
averaged. The weighted average CAMELS rating and the average of
converted long-term debt issuer ratings each will be multiplied by
1.176 (which shall be the pricing multiplier), and the products will be
summed. To this result will be added --1.882 (which shall be a uniform
amount for all institutions subject to the supervisory and debt ratings
method). The resulting sum, subject to adjustment pursuant to paragraph
(d)(4) of this section, if appropriate, and adjusted for the actual
assessment rates set by the Board pursuant to § 327.10, will equal an
institution's assessment rate; provided, however, that no
institution's assessment rate will be less than the minimum rate in
effect for Risk Category I institutions for that quarter nor greater
than the maximum rate in effect for Risk Category I institutions for
that quarter.
(3) Assessment rate for insured branches of foreign
banks--(i) Insured branches of foreign banks in Risk
Category I. Insured branches of foreign banks in Risk Category I
shall be assessed using the weighted average ROCA component rating, as
determined under paragraph (d)(3)(ii) of this section.
(ii) Weighted average ROCA component rating. The
weighted average ROCA component rating shall equal the sum of the
products that result from multiplying ROCA component ratings by the
following percentages: Risk Management--35%, Operational
Controls--25%, Compliance--25%, and Asset Quality--15%. The weighted
average ROCA rating will be multiplied by 2.353 (which shall be the
pricing multiplier). To this result will be added --1.882 (which shall
be a uniform amount for all insured branches of foreign banks). The
resulting sum, subject to adjustment pursuant to paragraph (d)(4) of
this section and adjusted for assessment rates set by the FDIC pursuant
to § 327.10(b), will equal an institution's assessment rate;
provided, however, that no institution's assessment rate will be less
than the minimum rate in effect for Risk Category I institutions for
that quarter nor greater than the maximum rate in effect for Risk
Category I institutions for that quarter.
(4) Adjustments to the initial risk assignment for large
banks or insured branches of foreign banks--(i) Basis for
and size of adjustment. Within Risk Category I, large institutions
and insured branches of foreign banks are subject to risk assignment
adjustment. In determining whether to make an adjustment for a large
institution or an insured branch of a foreign bank, the FDIC may
consider other relevant information in addition to the factors used to
derive the risk assignment under paragraphs (d)(1), (2), or (3) of this
section. Relevant information includes financial performance and
condition information,
{{12-29-06 p.2294}}other market information, and
stress considerations, as described in Appendix C to this subpart. Any
such adjustment shall be limited to a change in assessment rate of up
to 0.5 basis points higher or lower than the rate determined using the
supervisory ratings and financial ratios method, the supervisory and
debt ratings method, or the weighted average ROCA component rating
method, whichever is applicable.
(ii) Adjustment subject to maximum and minimum rates.
No rate will be adjusted below the minimum rate or above the maximum
rate for Risk Category I institutions in effect for the quarter.
(iii) Prior notice of adjustments--(A) Prior
notice of upward adjustment. Prior to making any upward adjustment
to an institution's rate because of considerations of additional risk
information, the FDIC will formally notify the institution and its
primary federal regulator and provide an opportunity to respond. This
notification will include the reasons for the adjustment and when the
adjustment will take effect.
(B) Prior notice of downward adjustment. Prior to
making any downward adjustment to an institution's rate because of
considerations of additional risk information, the FDIC will formally
notify the institution's primary federal regulator and provide an
opportunity to respond.
(iv) Determination whether to adjust upward; effective
period of adjustment. After considering an institution's and the
primary federal regulator's responses to the notice, the FDIC will
determine whether the adjustment to an institution's assessment rate
is warranted, taking into account any revisions to weighted average
CAMELS component ratings, long-term debt issuer ratings, and financial
ratios, as well as any actions taken by the institution to address the
FDIC's concerns described in the notice. The FDIC will evaluate the
need for the adjustment each subsequent assessment period, until it
determines that an adjustment is no longer warranted. The amount of
adjustment will in no event be larger than that contained in the
initial notice without further notice to, and consideration of,
responses from the primary federal regulator and the institution.
(v) Determination whether to adjust downward; effective
period of adjustment. After considering the primary federal
regulator's responses to the notice, the FDIC will determine whether
the adjustment to an institution's assessment rate is warranted,
taking into account any revisions to weighted average CAMELS component
ratings, long-term debt issuer ratings, and financial ratios, as well
as any actions taken by the institution to address the FDIC's concerns
described in the notice. Any downward adjustment in an institution's
assessment rate will remain in effect for subsequent assessment periods
until the FDIC determines that an adjustment is no longer warranted.
Downward adjustments will be made without notification to the
institution. However, the FDIC will provide advance notice to an
institution and its primary federal regulator and give them an
opportunity to respond before removing a downward adjustment.
(vi) Adjustment without notice. Notwithstanding the
notice provisions set forth above, the FDIC may change an
institution's assessment rate without advance notice under this
paragraph, if the institution's supervisory or agency ratings or the
financial ratios set forth in Appendix A to this subpart (for an
institution without long-term debt issuer ratings) deteriorate.
(5) Implementation of Supervisory and Long-Term Debt Issuer
Rating Changes.--(i) Changes between risk categories.
If, during a quarter, a CAMELS rating change occurs that results in an
institution whose risk Category I assessment rate is determined using
the supervisory and debt ratings method or an insured branch of a
foreign bank moving from Risk Category I to Risk Category II, III or
IV, the institution's assessment rate for the portion of the quarter
that it was in Risk Category I shall be based upon its assessment rate
for the prior quarter; no new Risk Category I assessment rate will be
developed for the quarter in which the institution moved to Risk
Category II, III or IV. If, during a quarter, a CAMELS rating change
occurs that results in a large institution with a long-term debt issuer
rating or an insured branch of a foreign bank moving from Risk Category
II, III or IV to Risk Category I, the institution's assessment rate
for the portion of the quarter that it
{{12-29-06 p.2295}}was in Risk Category I shall
equal the rate determined under paragraphs (d)(2) and (4) or (d)(3) and
(4) of this section, as appropriate.
(ii) Changes within Risk Category I. If, during a
quarter, an institution whose Risk Category I assessment rate is
determined using the supervisory and debt ratings method remains in
Risk Category I, but a CAMELS component or a long-term debt issuer
rating changes that would affect the institution's assessment rate, or
if, during a quarter, an insured branch of a foreign bank remains in
Risk Category I, but a ROCA component rating changes that would affect
the institution's assessment rate, separate assessment rates for the
portion(s) of the quarter before and after the change(s) shall be
determined under paragraphs (d)(2) and (4) or (d)(3) and (4) of this
section, as appropriate.
(6) Request to be treated as a large institution--(i)
Procedure. Any institution in Risk Category I with assets of
between $5 billion and $10 billion may request that the FDIC determine
its assessment rate as a large institution. The FDIC will grant such a
request if it determines that it has sufficient information to do so.
The absence of long-term debt issuer ratings alone will not preclude
the FDIC from granting a request. The assessment rate for an
institution without a long-term debt issuer rating will be derived
using the supervisory ratings and financial ratios method, but will be
subject to adjustment. Any such request must be made to the FDIC's
Division of Insurance and Research. Any approved change will become
effective within one year from the date of the request. If an
institution whose request has been granted subsequently reports assets
of less than $5 billion in its report of condition for four consecutive
quarters, the FDIC will consider such institution to be a small
institution subject to the supervisory ratings and financial ratios
method. An institution that disagrees with the FDIC's determination
that it is a large or small institution may request review of that
determination pursuant to § 327.4(c).
(ii) Time limit on subsequent request for alternate method.
An institution whose request to be assessed as a large institution
is granted by the FDIC shall not be eligible to request that it be
assessed as a small institution for a period of three years from the
first quarter in which its approved request to be assessed as a large
bank became effective. Any request to be assessed as a small
institution must be made to the FDIC's Division of Insurance and
Research.
(7) New and established institutions and
exceptions--(i) New Risk Category I institutions--(A)
Rule as of January 1, 2010. Effective for assessment periods
beginning on or after January 1, 2010, a new institution shall be
assessed the Risk Category I maximum rate for the relevant assessment
period, except as provided in paragraphs (d)(7)(ii)--(viii) of this
section.
(B) Rule prior to January 1, 2010. Prior to January 1,
2010, a new institution's risk assignment shall be determined under
paragraph (d)(1) or (2) of this section, as appropriate. Prior to
January 1, 2010, a Risk Category I institution that has no CAMELS
component ratings shall be assessed at one basis point above the
minimum rate applicable to Risk Category I institutions until it
receives CAMELS component ratings. If an institution has less than $10
billion in assets or has at least $10 billion in assets and no
long-term debt issuer rating, its assessment rate will be determined
under the supervisory ratings and financial ratios method once it
receives CAMELS component ratings. The assessment rate will be
determined by annualizing, where appropriate, financial ratios obtained
from the reports of condition that have been filed, until the earlier
of the following two events occurs: the institution files four reports
of condition, or, if it has at least $10 billion in assets, it receives
a long-term debt issuer rating.
(ii) Merger or consolidation involving new and established
institution(s). Subject to paragraphs (d)(7)(iii)--(viii) of this
section, when an established institution merges into or consolidates
with a new institution, the resulting institution is a new institution
unless:
(A) The assets of the established institution, as reported in its
report of condition for the quarter ending immediately before the
merger, exceeded the assets of the new institution, as reported in its
report of condition for the quarter ending immediately before the
merger; and
(B) Substantially all of the management of the established
institution continued as management of the resulting or surviving
institution.
{{12-29-06 p.2296}}
(iii) Consolidation involving established institutions.
When established institutions consolidate into a new institution,
the resulting institution is an established institution.
(iv) Grandfather exception. If a new institution
merges into an established institution, and the merger agreement was
entered into on or before July 11, 2006, the resulting institution
shall be deemed to be an established institution for purposes of this
section.
(v) Subsidiary exception. Subject to paragraph
(d)(7)(vi) of this section, a new institution will be considered
established if it is a wholly owned subsidiary of:
(A) A company that is a bank holding company under the Bank
Holding Company Act of 1956 or a savings and loan holding company,
under the Home Owners' Loan Act, and:
(1) At least one eligible depository institution (as
defined in 12 CFR 303.2(r)) that is owned by the holding company has
been chartered as a bank or savings association for at least five years
as of the date that the otherwise new institution was established; and
(2) The holding company has a composite rating of at
least "2" for bank holding companies or an above average or
"A" rating for savings association holding companies and at least
75 percent of its insured depository institution assets are assets of
eligible depository institutions, as defined in 12 CFR 303.2(r); or
(B) An eligible depository institution, as defined in
12 CFR 303.2(r), that has
been chartered as a bank or savings association for at least five years
as of the date that the otherwise new institution was established.
(vi) Effect of credit union conversion. In determining
whether an insured depository institution is new or established, as
those terms are defined in § 327.8, the FDIC will include any period
of time that the institution was a federally insured credit union.
(vii) CAMELS ratings for the surviving institution in a
merger or consolidation. When an established institution merges
with or consolidates into a new institution, if the FDIC determines the
resulting institution to be an established institution under paragraph
(d)(ii) of this section, its CAMELS ratings will be based upon the
established institution's ratings prior to the merger or consolidation
until new ratings become available.
(viii) Rate applicable to institutions subject to
subsidiary or credit union exception. On or after January 1, 2010,
if an institution is considered established under paragraph (d)(7)(v)
or (vi) of this section, but does not have CAMELS component ratings, it
shall be assessed at one basis point above the minimum rate applicable
to Risk Category I institutions until it receives CAMELS component
ratings. If an institution has less than $10 billion in assets or has
at least $10 billion in assets and no long-term debt issuer rating, its
assessment rate will be determined under the supervisory ratings and
financial ratios method once it receives CAMELS component ratings. The
assessment rate will be determined by annualizing, where appropriate,
financial ratios obtained from all reports of condition that have been
filed, until the earlier of the following two events occurs: the
institution files four reports of condition, or, if it has at least $10
billion in assets, it receives a long-term debt issuer rating.
(ix) Request for review. An institution that disagrees
with the FDIC's determination that it is a new institution may request
review of that determination pursuant to § 327.4(c).
(8) Assessment rates for bridge banks and conservatorships.
Institutions that are bridge banks under
12 U.S.C. 1821(n) and
institutions for which the Corporation has been appointed or serves as
conservator shall, in all cases, be assessed at the Risk Category I
minimum rate.
[Codified to 12 C.F.R. § 327.9]
[Section 327.13 amended at 55 Fed. Reg. 40817,
October 5, 1990, effective November 5, 1990; 56 Fed. Reg. 21068, May 7,
1991, effective June 6, 1991; 57 Fed. Reg. 45286, October 1, 1992,
effective November 2, 1992; 58 Fed. Reg. 31159, June 1, 1993, effective
July 1, 1993; 58 Fed. Reg. 34365, June 25, 1993, effective October 1,
1993; section 327.13 redesignated as § 327.9 and amended at 59 Fed.
Reg. 67165, December 29, 1994, effective April 1, 1995; amended and
retained at 60 Fed. Reg. 42741, August 16, 1995, effective September
15, 1995; 60 Fed. Reg. 50409, September 29, 1995, effective October 30,
1995; 60 Fed. Reg. 60755, December 28, 1995, effective September 15,
1995; 61 Fed. Reg. 67696,
{{12-31-08 p.2296.01}}December 24, 1996, effective
December 11, 1996; 62 Fed. Reg. 27176, May 19, 1997, effective May 6,
1997; 64 Fed. Reg. 70181, December 16, 1999, effective April 1, 2000;
71 Fed. Reg. 69309, November 30, 2006 effective January 1,
2007]
§ 327.10 Assessment rate schedules.
(a) Base Assessment Schedule. The base annual assessment
rate for an insured depository institution shall be the rate prescribed
in the following schedule:
TABLE 1 TO PARAGRAPH (a)
| | Risk Category
| I*
| II |
III |
IV |
|---|
|
Minimum |
Maximum |
|
|
|
|
| Annual
Rates (in basis
points) |
2 |
4 |
7 |
25 |
40 |
| *Rates for
institutions that do not pay the minimum or maximum rate vary between
these rates.
| |
|---|
(1) Risk Category I Base Rate Schedule. The base
annual assessment rates for all institutions in Risk Category I shall
range from 2 to 4 basis points.
(2) Risk Category II, III, and IV Base Rate Schedule.
The base annual assessment rates for Risk Categories II, III, and
IV shall be 7, 25, and 40 basis points respectively.
(3) All institutions in any one risk category, other than Risk
Category I, will be charged the same assessment rate.
(b) Adjusted Rate Schedule. Beginning on January 1,
2007, the adjusted annual assessment rate for an insured depository
institution shall be the rate prescribed in the following schedule.
TABLE 1 TO PARAGRAPH (b)
| | Risk Category
| I*
| II |
III |
IV |
|---|
|
Minimum |
Maximum |
|
|
|
|
| Annual
Rates (in basis
points) |
5 |
7 |
10 |
28 |
43 |
| *Rates
for institutions that do not pay the minimum or maximum rate vary
between these rates.
| |
(1) Risk Category I Adjusted Rate Schedule. The
adjusted annual assessment rates for all institutions in Risk Category
I shall range from 5 to 7 basis points.
(2) Risk Category II, III, and IV Adjusted Rate Schedule.
The adjusted annual assessment rates for Risk Categories II, III,
and IV shall be 10, 28, and 43 basis points respectively.
(3) All institutions in any one risk category, other than Risk
Category I, will be charged the same assessment rate.
(c) Rate schedule adjustments and procedures--(1)
Adjustments. The Board may increase or decrease the base
assessment schedule up to a maximum increase of 3 basis points or a
fraction thereof or a maximum decrease of 3 basis points or a fraction
thereof (after aggregating increases and decreases), as the Board deems
necessary. Any such adjustment shall apply uniformly to each rate in
the base assessment schedule. In no case may such adjustments result in
an assessment rate that is mathematically less than zero or in a rate
schedule that, at any time, is more than 3 basis points above or below
the base assessment schedule for the Deposit Insurance Fund, nor may
any one such adjustment constitute an increase or decrease of more than
3 basis points.
(2) Amount of revenue. In setting assessment rates,
the Board shall take into consideration the following:
(i) Estimated operating expenses of the Deposit Insurance Fund;
(ii) Case resolution expenditures and income of the Deposit
Insurance Fund;
{{12-31-08 p.2296.02}}
(iii) The projected effects of assessments on the capital and
earnings of the institutions paying assessments to the Deposit
Insurance Fund;
(iv) The risk factors and other factors taken into account
pursuant to 12 U.S.C.
1817(b)(1); and
(v) Any other factors the Board may deem appropriate.
(3) Adjustment procedure. Any adjustment adopted by
the Board pursuant to this paragraph will be adopted by rulemaking,
except that the Corporation may set assessment rates as necessary to
manage the reserve ratio, within set parameters not exceeding
cumulatively 3 basis points, pursuant to paragraph (c)(1) of this
section, without further rulemaking.
(4) Announcement. The Board shall announce the
assessment schedule and the amount and basis for any adjustment thereto
not later than 30 days before the quarterly certified statement invoice
date specified in § 327.3(b) of this part for the first assessment
period for which the adjustment shall be effective. Once set, rates
will remain in effect until changed by the Board.
(d) Assessment Rate Schedule for First Assessment Period of
2009. The annual assessment rate for an insured depository
institution for the assessment period beginning January 1, 2009 and
ending March 31, 2009, shall be the rate prescribed in the following
schedule.
| | Risk Category
| I*
| II |
III |
IV |
|---|
|
Minimum |
Maximum |
|
|
|
|
| Annual
Rates (in basis
points) |
12 |
14 |
17 |
35 |
50 |
| *Rates
for institutions that do not pay the minimum or maximum rate will vary
between these rates.
| |
|---|
(1) Risk Category I Rate Schedule. The annual
assessment rates for all institutions in Risk Category I shall range
from 12 to 14 basis points.
(2) Risk Category II, III, and IV Rate Schedule. The
annual assessment rates for Risk Categories II, III, and IV shall be
17, 35, and 50 basis points respectively.
(3) All institutions in any one risk category, other than Risk
Category I, will be charged the same assessment rate.
[Codified to 12 C.F.R. § 327.10]
[Section 327.10 amended at 71 Fed. Reg. 69312, November
30, 2006 effective January 1, 2007; 73 Fed. Reg. 78161, December 22,
2008, effective January 1,
2009]
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