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2000 - Rules and Regulations
Subpart B—Implementation of One-Time Assessment
Credit
§ 327.30 Purpose and scope.
(a) Scope. This subpart B of part 327 implements the
one-time assessment credit required by section 7(e)(3) of the Federal
Deposit Insurance Act, 12 U.S.C. 1817(e)(3) and applies to insured
depository institutions.
(b) Purpose. This subpart B of part 327 sets forth the
rules for:
(1) Determination of the aggregate amount of the one-time credit;
(2) Identification of eligible insured depository institutions;
(3) Determination of the amount of each eligible institution's
December 31, 1996 assessment base ratio and one-time credit;
(4) Transferability of credit amounts among insured depository
institutions;
(5) Application of such credit amounts against assessments; and
(6) An institution's request for review of the FDIC's
determination of a credit amount.
[Codified to 12 C.F.R. § 327.30]
§ 327.31 Definitions.
For purposes of this subpart and subpart C:
(a) The average assessment rate for any assessment
period means the aggregate assessment charged all insured depository
institutions for that period divided by the aggregate assessment base
for that period.
(b) Board means the Board of Directors of the FDIC.
(c) De facto rule means any transaction in which an
insured depository institution assumes substantially all of the deposit
liabilities and acquires substantially all of the assets of any other
insured depository institution at the time of the transaction.
(d) An eligible insured depository institution:
(1) Means an insured depository institution that:
(i) Was in existence on December 31, 1996, and paid a deposit
insurance assessment before December 31, 1996; or
(ii) Is a successor to an insured depository institution referred
to in paragraph (d)(1)(i) of this section; and
(2) does not include an institution if its insured status has
terminated as of or after the effective date of this
regulation.
{{12-29-06 p.2296.02-G}}
(e) Merger means any transaction in which an insured
depository institution merges or consolidates with any other insured
depository institution. Notwithstanding part 303, subpart D, for
purposes of this subpart B and subpart C of the part, merger
does not include transactions in which an insured depository
institution either directly or indirectly acquires the assets of, or
assumes liability to pay any deposits made in, any other insured
depository institution, but there is not a legal merger or
consolidation of the two insured depository institutions.
(f) Resulting institution refers to the acquiring,
assuming, or resulting institution in a merger.
(g) Successor means a resulting institution or an
insured depository institution that acquired part of another insured
depository institution's 1996 assessment base ratio under paragraph
327.33(c) of this subpart under the de facto rule.
[Codified to 12 C.F.R. § 327.31]
§ 327.32 Determination of aggregate credit amount.
The aggregate amount of the one-time credit shall equal
$4,707,580,238.19.
[Codified to 12 C.F.R. § 327.32]
§ 327.33 Determination of eligible institution's credit amount.
(a) Subject to paragraph (c) of this section, allocation of the
one-time credit shall be based on each eligible insured depository
institution's 1996 assessment base ratio.
(b) Subject to paragraph (c) of this section, an eligible insured
depository institution's 1996 assessment base ratio shall consist of:
(1) Its assessment base as of December 31, 1996 (adjusted as
appropriate to reflect the assessment base of December 31, 1996, of all
institutions for which it is the successor), as the numerator; and
(2) The combined aggregate assessment bases of all eligible
insured depository institutions, including any successor institutions,
as of December 31, 1996, as the denominator.
(c) If an insured depository institution is a successor to an
eligible insured depository institution under the de facto
rule, as defined in paragraph 327.31(c) of this subpart, the successor
and the eligible insured depository institution will divide the
eligible insured depository institution's 1996 assessment base ratio
pro rata, based on the deposit liabilities assumed in the transaction.
In any subsequent transaction involving an insured depository
institution that previously engaged in a transaction to which the
de facto rule applied, the insured depository institution
may not be deemed to have transferred more than its remaining 1996
assessment base ratio. If the transferring institution is no longer an
insured depository institution after the transfer, the last successor
will acquire the transferring institution's remaining 1996 assessment
base ratio.
[Codified to 12 C.F.R. § 327.33]
§ 327.34 Transferability of credits.
(a) Any remaining amount of the one-time assessment credit and the
associated 1996 assessment base ratio shall transfer to a successor of
an eligible insured depository institution.
(b) Prior to the final determination of its 1996 assessment base
and one-time assessment credit amount by the FDIC, an eligible insured
depository institution may enter into an agreement to transfer any
portion of such institution's one-time credit amount and 1996
assessment base ratio to another insured depository institution. The
parties to the agreement shall notify the FDIC's Division of Finance
and submit a written agreement, signed by legal representatives of both
institutions. The parties must include documentation stating that each
representative has the legal authority to bind the institution. The
adjustment to credit amount and the associated 1996 assessment base
ratio shall be made in the next assessment invoice that is sent at
least 10 days after the FDIC's receipt of the written
agreement.
{{12-29-06 p.2296.02-H}}
(c) An eligible insured depository institution may enter into an
agreement after the final determination of its 1996 assessment base
ratio and one-time credit amount by the FDIC to transfer any portion of
such institution's one-time credit amount to another insured
depository institution. The parties to the agreement shall notify the
FDIC's Division of Finance and submit a written agreement, signed by
legal representatives of both institutions. The parties must include
documentation stating that each representative has the legal authority
to bind the institution. The adjustment to the credit amount shall be
made in the next assessment invoice that is sent at least 10 days after
the FDIC's receipt of the written agreement.
{{10-31-06 p.2296.03}}
[Codified to 12 C.F.R. § 327.34]
§ 327.35 Application of credits.
(a) Subject to the limitations in paragraph (b) of this section,
the amount of an eligible insured depository institution's one-time
credit shall be applied to the maximum extent allowable by law against
that institution's quarterly assessment payment under subpart A of
this part, until the institution's credit is exhausted.
(b) The following limitations shall apply to the application of the
credit against assessment payments.
(1) For assessments that become due for assessment periods
beginning in calendar years 2008, 2009, and 2010, the credit may not be
applied to more than 90 percent of the quarterly assessment.
(2) For an insured depository institution that exhibits
financial, operational, or compliance weaknesses ranging from
moderately severe to unsatisfactory, or is not at least adequately
capitalized (as defined pursuant to section 38 of the Federal Deposit
Insurance Act) at the beginning of an assessment period, the amount of
the credit that may be applied against the institution's quarterly
assessment for that period shall not exceed the amount that the
institution would have been assessed if it had been assessed at the
average assessment rate for all insured institutions for that period.
The FDIC shall determine the average assessment rate for an assessment
period based upon its best estimate of the average rate for the period.
The estimate shall be made using the best information available, but
shall be made no earlier than 30 days and no later than 20 days prior
to the payment due date for the period.
(3) If the FDIC has established a restoration plan pursuant to
section 7(b)(33)(E) of the Federal Deposit Insurance Act, the FDIC may
elect to restrict the application of credit amounts, in any assessment
period, up to the lesser of:
(i) The amount of an insured depository institution's assessment
for that period; or
(ii) The amount equal to 3 basis points of the institution's
assessment base.
[Codified to 12 C.F.R. § 327.35]
§ 327.36 Requests for review of credit amount.
(a)(1) As soon as practicable after the publication date of this
rule, the FDIC shall notify each insured depository institution by
FDICconnect or mail of its 1996 assessment base ratio and
credit amount in a Statement of One-Time Credit ("Statement"), if
any. An insured depository institution may submit a request for review
of the FDIC's determination of the institution's 1996 assessment base
ratio or credit amount as shown on the Statement within 30 days after
the effective date of this rule. Such review may be requested if:
(i) The institution disagrees with a determination as to
eligibility for the credit that relates to that institution's credit
amount;
(ii) The institution disagrees with the calculation of the credit
as stated on the Statement; or
(iii) The institution believes that the 1996 assessment base
ratio attributed to the institution on the Statement does not fully or
accurately reflect its own 1996 assessment base or appropriate
adjustments for successors.
(2) If an institution does not submit a timely request for
review, that institution is barred from subsequently requesting review
of its credit amount, subject to paragraph (e) of this section.
(b)(1) An insured depository institution may submit a request for
review of the FDIC's adjustment to the credit amount in a quarterly
invoice within 30 days of the date on which the FDIC provides the
invoice. Such review may be requested if:
(i) The institution disagrees with the calculation of the credit
as stated on the invoice; or
{{10-31-06 p.2296.04}}
(ii) The institution believes that the 1996 assessment base ratio
attributed to the institution due to the adjustment to the invoice does
not fully or accurately reflect appropriate adjustments for successors
since the last quarterly invoice.
(2) If an institution does not submit a timely request for
review, that institution is barred from subsequently requesting review
of its credit amount, subject to paragraph (e) of this section.
(c) The request for review shall be submitted to the Division of
Finance and shall provide documentation sufficient to support the
change sought by the institution. At the time of filing with the FDIC,
the requesting institution shall notify, to the extent practicable, any
other insured depository institution that would be directly and
materially affected by granting the request for review and provide such
institution with copies of the request for review, the supporting
documentation, and the FDIC's procedures for requests under this
subpart. In addition, the FDIC also shall make reasonable efforts,
based on its official systems of records, to determine that such
institutions have been identified and notified.
(d) During the FDIC's consideration of the request for review, the
amount of credit in dispute shall not be available for use by any
institution.
(e) Within 30 days of being notified of the filing of the request
for review, those institutions identified as potentially affected by
the request for review may submit a response to such request, along
with any supporting documentation, to the Division of Finance, and
shall provide copies to the requesting institution. If an institution
that was notified under paragraph (c) does not submit a response to the
request for review, that institution may not:
(1) Subsequently dispute the information submitted by other
institutions on the transaction(s) at issue in the review process; or
(2) Appeal the decision by the Director of the Division of
Finance.
(f) If additional information is requested of the requesting or
affected institutions by the FDIC, such information shall be provided
by the institution within 21 days of the date of the FDIC's request
for additional information.
(g) Any institution submitting a timely request for review will
receive a written response from the FDIC's Director of the Division of
Finance, (or his or her designee), notifying the requesting and
affected institutions of the determination of the Director as to
whether the requested change is warranted. Notice of the procedures
applicable to appeals under paragraph (h) of this section will be
included with the Director's written determination. Whenever feasible,
the FDIC will provide the institution with the aforesaid written
response the later of:
(1) Within 60 days of receipt by the FDIC of the request for
revision;
(2) If additional institutions have been notified by the
requesting institution or the FDIC, within 60 days of the date of the
last response to the notification; or
(3) If additional information has been requested by the FDIC,
within 60 days of receipt of the additional information.
(h) Subject to paragraph (e) of this section, the insured
depository institution that requested review under this section, or an
insured depository institution materially affected by the Director's
determination, that disagrees with that determination may appeal to the
FDIC's Assessment Appeals Committee on the same grounds as set forth
under paragraph (a) of this section. Any such appeal must be submitted
within 30 calendar days from the date of the Director's written
determination. Notice of the procedures applicable to appeals under
this section will be included with the Director's written
determination. The decision of the Assessment Appeals Committee shall
be the final determination of the FDIC.
(i) Any adjustment to an institution's credits resulting from a
determination by the Director of the FDIC's Assessment Appeals
Committee shall be reflected in the institution's next assessment
invoice. The adjustment to credits shall affect future assessments only
and shall not result in a retroactive adjustment of assessment amounts
owed for prior periods.
[Codified to 12 C.F.R. § 327.36]
{{12-31-08 p.2296.04-A}}
Subpart C—Implementation of Dividend
Requirements
§ 327.50 Purpose and scope.
(a) Scope. This subpart C of part 327 implements the dividend
provisions of section 7(e)(2) of the Federal Deposit Insurance Act, 12
U.S.C. 1817(e)(2), and applies to insured depository institutions.
(b) Purpose. This subpart C of part 327 provides the rules for:
(1) The FDIC's annual determination of whether to declare a
dividend and the aggregate amount of any dividend;
(2) The FDIC's determination of the amount of each insured
depository institution's share of any declared dividend;
(3) The time and manner for the FDIC's payments of dividends;
and
(4) An institution's appeal of the FDIC's determination of its
dividend amount.
[Codified to 12 C.F.R. § 327.50]
§ 327.51 Definitions.
For purposes of this subpart:
(a) Assessment base share means an insured
depository institution's 1996 assessment base ratio divided by
the total of all existing, eligible insured depository institution's
shares of the 1996 assessment base (rounded to 14 decimal places).
(b) Board has the same meaning as under subpart B of
this part.
(c) DIF means the Deposit Insurance Fund.
(d)(1) An eligible premium means an assessment paid by
an insured depository institution (or its predecessor) that did not
exceed, for the applicable assessment period, the maximum assessment
applicable in that assessment period to a Risk Category 1 institution
under subpart A of this part.
(2) An eligible premium does not include any assessments or fees
paid by insured depository institutions for the Temporary Liquidity
Guarantee Program. An eligible premium also does not include any
emergency special assessments paid by insured depository institutions
pursuant to section 13(c)(4)(G) of the Federal Deposit Insurance Act,
12 U.S.C. 1823(c)(4)(G), whether to repay any loss to the FDIC as a
consequence of the Temporary Liquidity Guarantee Program or for any
other reason.
(e) An insured depository institution's eligible premium
share means that institution's cumulative eligible premiums over
the previous five years (ending on December 31st of the year prior to
the year in which the dividend is declared) divided by the cumulative
total of all eligible premiums paid by all existing insured depository
institutions or their predecessors over that five-year period (rounded
to 14 decimal places).
(f) An insured depository institution's 1996 assessment base
ratio means an institution's 1996 assessment base ratio, as
determined pursuant to § 327.33 of this part, adjusted as necessary
to reflect subsequent transactions in which the institution succeeds to
another institution's assessment base ratio, or a transfer of the
assessment base ratio pursuant to § 327.34. The 1996 assessment base
ratio shall be rounded to seven decimal places.
(g) Predecessor, when used in the context of insured
depository institutions, refers to the institution merged with or into
a resulting institution or acquired by an institution under
§ 327.33(c) under the de facto rule, consistent with the definition
of successor in § 327.31.
[Codified to 12 C.F.R. § 327.51]
§ 327.52 Annual dividend determination.
(a) If the DIF reserve ratio as of December 31st of 2008 or any
later year equals or exceeds 1.35 percent, then on or before May 10th
of the following year, the Board shall determine whether to declare a
dividend based upon the reserve ratio of the DIF as of December 31st of
the preceding year, and the amount of the dividend, if any.
(b) Except as provided in paragraph (d) of this section, if the
reserve ratio of the DIF equals or exceeds 1.35 percent of estimated
insured deposits and does not exceed 1.50
{{12-31-08 p.2296.04-B}}percent, the Board shall
declare the amount that is equal to one-half of the amount in excess of
the amount required to maintain the reserve ratio at 1.35 percent as
the aggregate dividend to be paid to insured depository institutions.
(c) Except as provided in paragraph (d) of this section, if the
reserve ratio of the DIF exceeds 1.50 percent of estimated insured
deposits, the Board shall declare the amount in excess of the amount
required to maintain the reserve ratio at 1.50 percent as the aggregate
dividend to be paid to insured depository institutions and shall
declare a dividend under paragraph (b) of this section.
(d)(1) The Board may suspend or limit a dividend otherwise required
to be paid if the Board determines that:
(i) A significant risk of losses to the DIF exists over the next
one-year period; and
(ii) It is likely that such losses will be sufficiently high as
to justify the Board concluding that the reserve ratio should be
allowed:
(A) To grow temporarily without requiring dividends when the
reserve ratio is between 1.35 and 1.50 percent; or
(B) To exceed 1.50 percent.
(2) In making a determination under this paragraph, the Board
shall consider:
(i) National and regional conditions and their impact on insured
depository institutions;
(ii) Potential problems affecting insured depository institutions
or a specific group or type of depository institution;
(iii) The degree to which the contingent liability of the FDIC
for anticipated failures of insured institutions adequately addresses
concerns over funding levels in the DIF; and
(iv) Any other factors that the Board may deem appropriate.
(3) Within 270 days of making a determination under this
paragraph, the Board shall submit a report to the Committee on
Financial Services and the Committee on Banking, Housing, and Urban
Affairs, providing a detailed explanation of its determination,
including a discussion of the factors considered.
(e) The Board shall annually review any determination to suspend or
limit dividend payments and must either:
(1) Make a new finding justifying the renewal of the suspension
or limitation under paragraph (d) of this section, and submit a report
as required under paragraph (d)(3) of this section; or
(2) Reinstate the payment of dividends as required by paragraph
(b) or (c) of this section.
[Codified to 12 C.F.R. § 327.52]
§ 327.53 Allocation and payment of dividends.
(a)(1) The allocation of any dividend among insured depository
institutions shall be based on the institution's 1996 assessment
base share and the institution's eligible premium
share.
(2) As set forth in the following table, the part of a dividend
allocated based upon an institution's 1996 assessment base share
shall decline steadily from 100 percent to zero over fifteen
years, and the part of a dividend allocated based upon an
institution's eligible premium share shall increase
steadily over the same fifteen-year period from zero to 100 percent.
The 15-year period shall begin as if it had applied to a dividend based
upon the reserve ratio at the end of 2006 and shall end with respect to
any dividend based upon the reserve ratio at the end of 2021. Dividends
based upon the reserve ratio as of December 31, 2021, and thereafter
shall be allocated among insured depository institutions based solely
on eligible premium shares.
{{12-31-08 p.2296.04-C}}
TOTAL DIF DIVIDEND DISTRIBUTION TABLE
| Based
upon the DIF reserve ratio at year-end | Part of total DIF
dividenddetermined by:
|
1996 Assessmentbase
shares |
Eligible
premiumshares |
|---|
| 20061 |
1
(100.0%) |
0 (0%)
|
| 20071 |
14/15
(93.3%) |
1/15 (6.7%)
|
| 2008 |
13/15
(86.7%) |
2/15 (13.3%)
|
| 2009 |
4/5
(80.0%) |
1/5 (20.0%)
|
| 2010 |
11/15
(73.3%) |
4/15 (26.7%)
|
| 2011 |
2/3
(66.7%) |
1/3 (33.3%)
|
| 2012 |
3/5
(60.0%) |
2/5 (40.0%)
|
| 2013 |
8/15
(53.3%) |
7/15 (46.7%)
|
| 2014 |
7/15
(46.7%) |
8/15 (53.3%)
|
| 2015 |
2/5
(40.0%) |
3/5 (60.0%)
|
| 2016 |
1/3
(33.3%) |
2/3 (66.7%)
|
| 2017 |
4/15
(26.7%) |
11/15 (73.3%)
|
| 2018 |
1/5
(20.0%) |
4/5 (80.0%)
|
| 2019 |
2/15
(13.3%) |
13/15 (86.7%)
|
| 2020 |
1/15
(6.7%) |
14/15 (93.3%)
|
| 2021 |
0 (0%) |
1
(100.0%) |
| Thereafter |
0 (0%) |
1
(100%)
| 1 The 15-year period shall be computed as if it had
applied to dividends based upon the reserve ratios at the end of 2006
and 2007.
| | |
|---|
(b) The FDIC shall notify each insured depository institution of
the amount of such institution's dividend payment based on its share
as determined pursuant to paragraph (a) of this section. Notice shall
be given as soon as practicable after the Board's declaration of a
dividend through a special notice of dividend.
(c) The FDIC shall pay individual dividend amounts, unless they are
the subject of a request for review under § 327.54, to insured
depository institutions on June 30 of the year the dividend is
declared. The FDIC shall notify institutions whether dividends will
offset the next collection of assessments at the time of the invoice.
An institution's dividend amount will be settled with that
institution's assessment. Any excess dividend amount will be a net
credit to the institution and will be deposited into the deposit
account designated by the institution for assessment payment purposes
pursuant to subpart A of this part. If the dividend amount is less than
the amount of assessment due, then the institution's account will be
directly debited by the FDIC to reflect the net amount owed to the FDIC
as an assessment.
(d) If an insured depository institution's dividend amount is
subject to review under § 327.54, and that request is not finally
resolved prior to the dividend payment date, the FDIC shall withhold
the payment of the disputed portion of the dividend amount involved in
the request for review. Adjustments to an individual institution's
dividend amount based on the final determination of a request for
review will be handled in the same manner as assessment underpayments
and overpayments.
(e) An institution may sell, assign, or otherwise transfer its
right to a current or future dividend. However, the FDIC will pay
dividend amounts to insured institutions without regard to any such
sale, assignment or transfer, regardless of whether the FDIC has
received notice of the sale, assignment or transfer.
[Codified to 12 C.F.R. § 327.53]
§ 327.54 Requests for review.
(a) An insured depository institution may submit a request for
review of the FDIC's determination of the institution's 1996
assessment base share and/or its eligible premium share as shown on the
institution's quarterly assessment invoice. Such requests shall be
subject to the provisions of § 327.3(f)(3) of this part, except for
the invoice provided by the
{{12-31-08 p.2296.04-D}}FDIC in March of any calendar
year in which the FDIC declares a dividend. If the FDIC declares a
dividend, any request for review of an institution's 1996 assessment
base share and/or its eligible premium share as shown on the
institution's March quarterly assessment invoice must be filed within
30 days of the date that the FDIC notifies the institution of its
dividend amount. If an institution does not submit a timely request for
review for the first invoice in which the dividend-related information
that forms the basis for the request appears, the institution shall be
barred from subsequently requesting review of that information.
(b) An insured depository institution may submit a request for
review of the FDIC's determination of the institution's dividend
amount as shown on the special notice of dividend. Such review may be
requested if:
(1) The institution disagrees with the calculation of the
dividend as stated on the special notice of dividend; or
(2) The institution believes that the 1996 assessment base ratio
attributed to the institution is inaccurate or has not been adjusted to
include the 1996 assessment base ratio of an institution acquired by
merger or transfer pursuant to §§ 327.33 and 327.34 of this part and
§ 327.51(g), and the institution has not had a prior opportunity to
request review or appeal under subpart B of this part or paragraph (a)
of this section; or
(3) The institution believes that the special notice does not
fully or accurately reflect its eligible premiums or those of any of
its predecessors and the institution has not had a prior opportunity to
request review or appeal under subpart B of this part or paragraph (a)
of this section.
(c) Any such request for review under paragraph (b) of this section
must be submitted within 30 days of the date of the special notice of
dividend for which a change is requested. The request for review shall
be submitted to the Division of Finance and shall provide documentation
sufficient to support the change sought by the institution. If an
institution does not submit a timely request for review, that
institution may not subsequently request review of its dividend amount,
subject to paragraph (d) of this section. At the time of filing with
the FDIC, the requesting institution shall notify, to the extent
practicable, any other insured depository institution that would be
directly and materially affected by granting the request for review and
provide such institution with copies of the request for review, the
supporting documentation, and the FDIC's procedures for requests under
this subpart. The FDIC shall make reasonable efforts, based on its
official systems of records, to determine that such institutions have
been identified and notified.
(d) During the FDIC's consideration of a request for review, the
amount of dividend in dispute will not be paid.
(e) Within 30 days of receiving notice of the request for review
under paragraph (b) of this section, those institutions identified as
potentially affected by the request for review may submit a response to
such request, along with any supporting documentation, to the Division
of Finance, and shall provide copies to the requesting institution. If
an institution that was notified under paragraph (c) of this section
does not submit a response to the request for review, that institution
may not subsequently:
(1) Dispute the information submitted by any other institution on
the transaction(s) at issue in that review process; or
(2) Appeal the decision by the Director of the Division of
Finance.
(f) If additional information is requested of the requesting or
affected institutions by the FDIC, such information shall be provided
by the institution within 21 days of the date of the FDIC's request
for additional information.
(g) Any institution submitting a timely request for review under
paragraph (b) of this section will receive a written response from the
FDIC's Director of the Division of Finance ("Director"), or his
or her designee, notifying the affected institutions of the
determination of the Director as to whether the requested change is
warranted, whenever feasible:
(1) Within 60 days of receipt by the FDIC of the request for
review;
(2) If additional institutions have been notified by the
requesting institution or the FDIC, within 60 days of the date of the
last response to the notification; or
{{12-31-08 p.2296.04-E}}
(3) If additional information has been requested by the FDIC,
within 60 days of receipt of the additional information, whichever is
later. Notice of the procedures applicable to appeals under paragraph
(g) of this section will be included with the Director's written
determination.
(h) An insured depository institution may appeal the determination
of the Director to the FDIC's Assessment Appeals Committee on the same
grounds as set forth under paragraph (b) of this section. Any such
appeal must be submitted within 30 calendar days from the date of the
Director's written determination. The decision of the Assessment
Appeals Committee shall be the final determination of the FDIC.
[Codified to 12 C.F.R. § 327.54]
[The page following this is 2297.]
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