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1000 - Federal Deposit Insurance Act
{{12-29-06 p.1111}}
SEC. 7 (a)(1) Each insured State nonmember bank and each foreign
bank having an insured branch which is not a Federal branch shall make
to the Corporation reports of condition which shall be in such form and
shall contain such information as the Board of Directors may require.
Such reports shall be made to the Corporation on the dates selected as
provided in paragraph (3) of this subsection and the deposit
liabilities shall be reported therein in accordance with and pursuant
to paragraphs (4) and (5) of this subsection. The Board of Directors
may call for additional reports of condition on dates to be fixed by it
and may call for such other reports as the Board may from time to time
require. Any such bank which (A) maintains procedures reasonably
adapted to avoid any inadvertent error and, unintentionally and as a
result of such an error, fails to make or publish any report required
under this paragraph, within the period of time specified by the
Corporation, or submits or publishes any false or misleading report or
information, or (B) inadvertently transmits or publishes any report
which is minimally late, shall be subject to a penalty of not more than
$2,000 for each day during which such failure continues or such false
or misleading information is not corrected. Such bank shall have the
burden of proving that an error was inadvertent and that a report was
inadvertently transmitted or published late. Any such bank which fails
to make or publish any report required under this paragraph, within the
period of time specified by the Corporation, or submits or publishes
any false or misleading report or information, in a manner not
described in the 2nd preceding sentence shall be subject to a penalty
of not more than $20,000 for each day during which such failure
continues or such false or misleading information is not corrected.
Notwithstanding the preceding sentence, if any such bank knowingly or
with reckless disregard for the accuracy of any information or report
described in such sentence submits or publishes any false or misleading
report or information, the Corporation may assess a penalty of not more
than $1,000,000 or 1 percent of total assets of such bank, whichever is
less, per day for each day during which such failure continues or such
false or misleading information is not corrected. Any penalty imposed
under any of the 4 preceding sentences shall be assessed and collected
by the Corporation in the manner provided in subparagraphs (E), (F),
(G), and (I) of section 8(i)(2) (for penalties imposed under such
section) and any such assessment (including the determination of the
amount of the penalty) shall be subject to the provisions of such
section. Any such bank against which any penalty is assessed under this
subsection shall be afforded an agency hearing if such bank submits a
request for such hearing within 20 days after the issuance of the
notice of assessment. Section 8(h) shall apply to any proceeding under
this paragraph.
(2)(A) The Corporation and, with respect to any State depository
instititution, any appropriate State bank supervisor for such
institution, shall have access to reports of examination made by, and
reports of condition made to, the Comptroller of the Currency, the
Director of the Office of Thrift Supervision, the Federal Housing
Finance Board, any Federal home loan bank, or any Federal Reserve bank
and to all revisions of reports of condition made to any of them, and
they shall promptly advise the Corporation of any revisions or changes
in respect to deposit liabilities made or required to be made in any
report of condition. The Corporation may accept any report made by or
to any commission, board, or authority having supervision of a
depository institution, and may furnish to the Comptroller of the
Currency, the Director of the Office of Thrift Supervision, the Federal
Housing Finance Board, any Federal home loan bank, to any Federal
Reserve bank, and to any such commission, board, or authority, reports
of examinations made on behalf of, and reports of condition made to,
the Corporation.
(B) ADDITIONAL REPORTS.--The Board of Directors may from
time to time require any insured depository institution to file such
additional reports as the Corporation, after agreement with the
Comptroller of the Currency, the Board of Governors of the Federal
Reserve System, and the Director of the Office of Thrift Supervision,
as appropriate, may deem advisable for insurance purposes.
(C) DATA SHARING WITH OTHER AGENCIES AND PERSONS.--In
addition to reports of examination, reports of condition, and other
reports required to be regularly provided to the Corporation (with
respect to all insured depository institutions, including a depository
institution for which the Corporation has been appointed conservator or
receiver) or an appropriate State bank supervisor (with respect to a
State depository institution) under subparagraph (A) or (B), a Federal
banking agency may, in the discretion of the agency,
{{12-29-06 p.1112}}furnish any report of examination or other
confidential supervisory information concerning any depository
institution or other entity examined by such agency under authority of
any Federal law, to--
(i) any other Federal or State agency or authority with
supervisory or regulatory authority over the depository institution or
other entity;
(ii) any officer, director, or receiver of such depository
institution or entity; and
(iii) any other person that the Federal banking agency determines
to be appropriate.
(3) Each insured depository institution shall make to the
appropriate Federal banking agency 4 reports of condition annually
upon dates which shall be selected by the Chairman of the Board of
Directors, the Comptroller of the Currency, the Chairman of the Board
of Governors of the Federal Reserve System, and the Director of the
Office of Thrift Supervision. The dates selected shall be the same for
all insured depository institutions, except that when any of said
reporting dates is a nonbusiness day for any depository institution,
the preceding business day shall be its reporting date. Such reports of
condition shall be the basis for the certified statements to be filed
pursuant to subsection (c). The deposit liabilities shall be reported
in said reports of condition in accordance with and pursuant to
paragraphs (4) and (5) of this subsection, and such other information
shall be reported therein as may be required by the respective
agencies. Each said report of condition shall contain a declaration by
the president, a vice president, the cashier or the treasurer, or by
any other officer designated by the board of directors or trustees of
the reporting depository institution to make such declaration, that the
report is true and correct to the best of his knowledge and belief. The
correctness of said report of conditions shall be attested by the
signatures of at least two directors or trustees of the reporting
depository institution other than the officer making such declaration,
with a declaration that the report has been examined by them and to the
best of their knowledge and belief is true and correct. At the time of
making said reports of condition each insured depository institution
shall furnish to the Corporation a copy thereof containing such signed
declaration and attestations. Nothing herein shall preclude any of the
foregoing agencies from requiring the banks or savings associations
under its jurisdiction to make additional reports of condition at any
time.
(4) In the reports of condition required to be made by paragraph
(3) of this subsection, each insured depository institution shall
report the total amount of the liability of the depository institution
for deposits in the main office and in any branch located in any State
of the United States, the District of Columbia, any Territory of the
United States, Puerto Rico, Guam, American Samoa, the Trust Territory
of the Pacific Islands, or the Virgin Islands, according to the
definition of the term "deposit" in and pursuant to subsection
(1) of section 3 of this Act, without any deduction for indebtedness of
depositors or creditors or any deduction for cash items in the process
of collection drawn on others than the reporting depository
institution: Provided, That the depository institution in
reporting such deposits may (i) subtract from the deposit balance due
to any depository institution the deposit balance due from the same
depository institution (other than trust funds deposited by either
depository institution) and any cash items in the process of collection
due from or due to such depository institutions shall be included in
determining such net balance, except that balances of time deposits of
any depository institution and any balances standing to the credit of
private depository institutions, of depository institutions in foreign
countries, of foreign branches of other American depository
institutions, and of American branches of foreign depository
institutions shall be reported gross without any such subtraction, and
(ii) exclude any deposits received in any office of the depository
institution for deposit in any other office of the depository
institution: And provided further, That outstanding drafts
(including advices and authorizations to charge depository
institution's balance in another bank) drawn in the regular course of
business by the reporting depository institution on depository
institutions need not be reported as deposit liabilities. The amount of
trust funds held in the depository institution's own trust department,
which the reporting depository institution keeps segregated and apart
from its general assets and does not use in the conduct of its
business, shall not be included in the total deposits in such reports,
but shall be separately stated in such reports. Deposits which are
accumulated for the payment of personal loans and are assigned or
pledged to assure payment of loans at maturity shall not be included in
the total deposits in such reports, but shall be deducted from the
loans for which such deposits are assigned or pledged to assure
repayment.
{{12-29-06 p.1113}}
(5) The deposits to be reported on such reports of condition
shall be segregated between (i) time and savings deposits and (ii)
demand deposits. For this purpose, the time and savings deposits shall
consist of time certificates of deposit, time deposits-open account and
savings deposits; and demand deposits shall consist of all deposits
other than time and saving deposits.
(6) LIFELINE ACCOUNT DEPOSITS.--In the reports of
condition required to be reported under this subsection, the deposits
in lifeline accounts (as defined in
section 232(a)(3)(C) of the
Bank Enterprise Act of 1991) shall be reported separately.
(7) The Board of Directors, after consultation with the
Comptroller of the Currency, the Director of the Office of Thrift
Supervision, and the Board of Governors of the Federal Reserve System,
may by regulation define the terms "cash items" and "process
of collection", and shall classify deposits as "time",
"savings", and "demand" deposits, for the purposes of this
section.
(8) In respect of any report required or authorized to be
supplied or published pursuant to this subsection or any other
provision of law, the Board of Directors or the Comptroller of the
Currency, as the case may be, may differentiate between domestic banks
and foreign banks to such extent as, in their judgment, may be
reasonably required to avoid hardship and can be done without
substantial compromise of insurance risk or supervisory and regulatory
effectiveness.
(9) DATA COLLECTIONS.--In addition to or in connnection
with any other report required under this subsection, the Corporation
shall take such action as may be necessary to ensure that--
(A) each insured depository institution maintains; and
(B) the Corporation receives on a regular basis from such
institution,
information on the total amount of all insured deposits, preferred
deposits, and uninsured deposits at the institution.
In prescribing reporting and other requirements for the collection of
actual and accurate information pursuant to this paragraph, the
Corporation shall minimize the regulatory burden imposed upon insured
depository institutions that are well capitalized (as defined in
section 38) while taking into
account the benefit of the information to the Corporation, including
the use of the information to enable the Corporation to more accurately
determine the total amount of insured deposits in each insured
depository institution for purposes of compliance with this Act.
(10) A Federal banking agency may not, by regulation or
otherwise, designate, or require an insured institution or an affiliate
to designate, a corporation as highly leveraged or a transaction with a
corporation as a highly leveraged transaction solely because such
corporation is or has been a debtor or bankrupt under title 11, United
States Code, if, after confirmation of a plan of reorganization, such
corporation would not otherwise be highly leveraged.
(11) STREAMLINING REPORTS OF CONDITION.--
(A) REVIEW OF INFORMATION AND SCHEDULES.--Before the end
of the 1-year period beginning on the date of enactment of the
Financial Services Regulatory Relief Act of 2006 and before the end of
each 5-year period thereafter, each Federal banking agency shall, in
conjunction with the other relevant Federal banking agencies, review
the information and schedules that are required to be filed by an
insured depository institution in a report of condition required under
paragraph (3).
(B) Reduction or elimination of information found to be
unnecessary.--After completing the review required by subparagraph
(A), a Federal banking agency, in conjunction with the other relevant
Federal banking agencies, shall reduce or eliminate any requirement to
file information or schedules under paragraph (3) (other than
information or schedules that are otherwise required by law) if the
agency determines that the continued collection of such information or
schedules is no longer necessary or appropriate.
[Codified to 12 U.S.C. 1817(a)]
[Source: Section 2[7(a)] of the Act of September 21, 1950
(Pub. L. No. 797; 64 Stat. 876), effective September 21, 1950, as
amended by section 2 of the Act of July 14, 1960 (Pub. L. No. 86--671;
74 Stat. 547), effective January 1, 1961; section 910(g) of title IX of
the Act of December 31, 1970 (Pub. L. No. 91--609; 84 Stat. 1812),
effective December 31, 1970;
{{12-29-06 p.1114}}sections 6(c)(8), (9), and (10) of the Act of
September 17, 1978 (Pub. L. No. 95--369; 92 Stat. 617), effective
September 17, 1978; sections 302 and 310(a) and (b) of title III of the
Act of November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3676 and 3678),
effective March 10, 1979; section 103 of title I of the Act of December
26, 1981 (Pub. L. No. 97--110; 95 Stat. 1514), effective December 26,
1981; sections 113(d), (e) and (f) of title I of the Act of October 15,
1982 (Pub. L. No. 97--320; 96 Stat. 1473), effective October 15, 1982;
sections 201(a) and (b) and 208(1)--(3) of title II and sections 911(c)
and 931(a) of title IX of the Act of August 9, 1989 (Pub. L. No.
101--73; 103 Stat. 187--188, 206--207, 479 and 493, respectively),
effective August 9, 1989; section 141(c) of title I, section 232(b)(1)
of title II, section 302(e)(2) of title III, and section 474 of title
IV of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat.
2277, 2310, 2349, and 2386, respectively), effective December 19, 1991;
section 1606(i)(1) of title XVI of the Act of October 28, 1992 (Pub. L.
No. 102--550; 106 Stat. 4089), effective December 19, 1991; section
303(b)(1) of title III of the Act of October 28, 1992 (Pub. L. No.
102--558; 106 Stat. 4224), effective March 1, 1992; sections 305(b),
308(b), and 348 of title III and section 602(a)(4) of title VI of the
Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2217, 2218,
2241 and 2288, respectively), effective September 23, 1994; section
8(a)(2) of the Act of October 30, 2004 (Pub. L. No. 108-386; 118 Stat.
2231), effective October 30, 2004; Section 3(a)(1) of the Act of
February 15, 2006 (Pub. L. No. 100--173; 119 Stat. 3605), effective
date shall take effect on the date that the final regulations required
under section 2109(a)(5) of the Federal Deposit Insurance Reform Act of
2005 take effect; section 604 of title VI and section 707(a) of title
VII of the Act of October 13, 2006 (Pub. L. No. 109--351; 120 Stat.
1980 and 1987]
(b) ASSESSMENTS.--
(1) RISK-BASED ASSESSMENT SYSTEM.--
(A) RISK-BASED ASSESSMENT SYSTEM REQUIRED.--The Board of
Directors shall, by regulation, establish a risk-based assessment
system for insured depository institutions.
(B) PRIVATE REINSURANCE AUTHORIZED.--In carrying out
this paragraph, the Corporation may--
(i) obtain private reinsurance covering not more than 10 percent
of any loss the Corporation incurs with respect to an insured
depository institution; and
(ii) base that institution's assessment (in whole or in part) on
the cost of the reinsurance.
(C) RISK-BASED ASSESSMENT SYSTEM DEFINED.--For purposes
of this paragraph, the term "risk-based assessment system" means
a system for calculating a depository institution's assessment based
on--
(i) the probability that the Deposit Insurance Fund will incur a
loss with respect to the institution, taking into consideration the
risks attributable to--
(I) different categories and concentrations of assets;
(II) different categories and concentrations of liabilities, both
insured and uninsured, contingent and noncontingent; and
(III) any other factors the Corporation determines are relevant
to assessing such probability;
(ii) the likely amount of any such loss; and
(iii) the revenue needs of the Deposit Insurance Fund.
(D) SEPARATE ASSESSMENT SYSTEMS.--The Board of Directors
may establish separate risk-based assessment systems for large and
small members of the Deposit Insurance Fund.
(E) Information concerning risk of loss and economic
conditions.--
(i) SOURCES OF INFORMATION. -- For purposes of
determining risk of losses at insured depository institutions and
economic conditions generally affecting depository institutions, the
Corporation shall collect information, as appropriate, from all sources
the Board of Directors considers appropriate, such as reports of
condition, inspection reports, and other information from all Federal
banking agencies, any information available from State bank
supervisors, State insurance and securities regulators, the Securities
and Exchange Commission (including information described in section
35), the Secretary of the Treasury, the Commodity Futures Trading
Commission, the Farm Credit Administration, the Federal Trade
Commission, any Federal reserve bank or Federal home loan bank, and
other
{{12-29-06 p.1114.01}}regulators of financial institutions, and any
information available from credit rating entities, and other private
economic or business analysts.
(ii) CONSULTATION WITH FEDERAL BANKING AGENCIES. --
(I) IN GENERAL. -- Except as provided in subclause
(II), in assessing the risk of loss to the Deposit Insurance Fund with
respect to any insured depository institution, the Corporation shall
consult with the appropriate Federal banking agency of such
institution.
(II) TREATMENT ON AGGREGATE BASIS. -- In the case of
insured depository institutions that are well capitalized (as defined
in section 38) and, in the most recent examination, were found to be
well managed, the consultation under subclause (I) concerning the
assessment of the risk of loss posed by such institutions may be made
on an aggregate basis.
(iii) RULE OF CONSTRUCTION.--No provision of this
paragraph shall be construed as providing any new authority for the
Corporation to require submission of information by insured depository
institutions to the Corporation.
{{4-28-06 p.1115}}
(F) Modifications to the risk-based assessment system
allowed only after notice and comment.--In revising or modifying
the risk-based assessment system at any time after the date of the
enactment of the Federal Deposit Insurance Reform Act of 2005, the
Board of Directors may implement such revisions or modification in
final form only after notice and opportunity for comment.
(2) SETTING ASSESSMENTS.--
(A) IN GENERAL.--The Board of Directors shall set
assessments for insured depository institutions in such amounts as the
Board of Directors may determine to be necessary or appropriate,
subject to subparagraph (D).
(B) FACTORS TO BE CONSIDERED.--In setting assessments
under subparagraph (A), the Board of Directors shall consider the
following factors:
(i) The estimated operating expenses of the Deposit Insurance
Fund.
(ii) The estimated case resolution expenses and income of the
Deposit Insurance Fund.
(iii) The projected effects of the payment of assessments on the
capital and earnings of insured depository institutions.
(iv) The risk factors and other factors taken into account
pursuant to paragraph (1) under the risk-based assessment system,
including the requirement under such paragraph to maintain a risk-based
system.
(v) Any other factors the Board of Directors may determine to be
appropriate.
(C) NOTICE OF ASSESSMENTS.--The Corporation shall notify
each insured depository institution of that institution's assessment.
(D) NO DISCRIMINATION BASED ON SIZE.--No insured
depository institution shall be barred from the lowest-risk category
solely because of size.
(E) BANK ENTERPRISE ACT REQUIREMENT.--The Corporation
shall design the risk-based assessment system so that, insofar as the
system bases assessments, directly or indirectly, on deposits, the
portion of the deposits of any insured depository institution which are
attributable to lifeline accounts established in accordance with the
Bank Enterprise Act of 1991 shall be subject to assessment at a rate
determined in accordance with such Act.
(3) DESIGNATED RESERVE RATIO.--
(A) ESTABLISHMENT.--
(i) IN GENERAL.--Before the beginning of each calendar
year, the Board of Directors shall designate the reserve ratio
applicable with respect to the Deposit Insurance Fund and publish the
reserve ratio so designated.
(ii) RULEMAKING REQUIREMENT.--Any change to the
designated reserve ratio shall be made by the Board of Directors by
regulation after notice and opportunity for comment.
(B) RANGE.--The reserve ratio designated by the Board of
Directors for any year.--
(i) may not exceed 1.5 percent of estimated insured deposits; and
(ii) may not be less than 1.15 percent of estimated insured
deposits.
(C) FACTORS.--In designating a reserve ratio for any
year, the Board of Directors shall--
(i) take into account the risk of losses to the Deposit Insurance
Fund in such year and future years, including historic experience and
potential and estimated losses from insured depository institution;
(ii) take into account economic conditions generally affecting
insured depository institutions so as to allow the designated reserve
ratio to increase during more favorable economic conditions and to
decrease during less favorable economic conditions, notwithstanding the
increased risks of loss that may exist during such less favorable
conditions, as determined to be appropriate by the Board of Directors;
(iii) seek to prevent sharp swings in the assessment rates for
insured depository institutions; and
(iv) take into account such other factors as the Board of
Directors may determine to be appropriate, consistent with the
requirements of this subparagraph.
(D) PUBLICATION OF PROPOSED CHANGE IN RATIOS.--In
soliciting comment on any proposed change in the designated reserve
ratio in accordance with subparagraph (A), the
{{4-28-06 p.1116}}Board of Directors shall include in the
published proposal a thorough anaylsis of the data and projections on
which the proposal is based.
(E) DIF RESTORATION PLANS.--
(i) IN GENERAL.--Whenever--
(I) the Corporaiton projects that the reserve ratio of the
Deposit Insurance Fund will, within 6 months of such determination,
fall below the minimum amount specified in subparagraph (B)(ii) for the
designated reserve ratio; or
(II) the reserve ratio of the Deposit Insurance Fund actually
falls below the minimum amount specified in subparagraph (B)(ii) for
the designated reserve ratio without any determination under subclause
(I) having been made, the Corporation shall establish and implement a
Deposit Insurance Fund restroation plan within 90 days that meets the
requirements of clause (ii) and such other conditions as the
Corporation determines to be appropriate.
(ii) REQUIREMENTS OF RESTORATION PLAN.--A Deposit
Insurance Fund restoration plan meets the requirements of this clause
if the plan provides that the reserve ratio of the Fund will meet or
exceed the minimum amount specified in subparagraph (B)(ii) for the
designated reserve ratio before the end of the 5-year period beginning
upon the implementation of the plan (or such longer period as the
Corporation may determine to be necessary due to extraordinary
circumstances).
(iii) RESTRICTION ON ASSESSMENT CREDITS.--As part of any
restoration plan under this subparagraph, the Corporation may elect to
restrict the application of assessment credits provided under
subsection (e)(3) for any period that the plan is in effect.
(iv) LIMITATION ON RESTRICTION.--Notwithstanding clause
(iii), while any restoration plan under this subparagraph is in effect,
the Corporation shall apply credits provided to an insured depository
institution under subsection (e)(3) against any assessment imposed on
the institution for any assessment period in an amount equal to the
lesser of--
(I) the amount of the assessment; or
(II) the amount equal to 3 basis points of the institution's
assessment base.
(v) TRANSPARENCY.--Not more than 30 days after the
Corporation establishes and implements a restoration plan under clause
(i), the Corporation shall publish in the Federal Register a detailed
analysis of the factors considered and the basis for the actions taken
with regard to the plan.
(4) Depository institution required to maintain
assessment-related records.--Each insured depository institution
shall maintain all records that the Corporation may require for
verifying the correctness of any assessment on the insured depository
institution under this subsection until the later of--
(A) the end of the 3-year period beginning on the due date of the
assessment; or
(B) in the case of a dispute between the insured depository
institution and the Corporation with respect to such assessment, the
date of a final determination of any such dispute.
(5) Emergency special assessments.--In addition to the other
assessments imposed on insured depository institutions under this
subsection, the Corporation may impose 1 or more special assessments on
insured depository institutions in an amount determined by the
Corporation if the amount of any such assessment is necessary--
(A) to provide sufficient assessment income to repay amounts
borrowed from the Secretary of the Treasury under
section 14(a) in accordance
with the repayment schedule in effect under section 14(c) during the
period with respect to which such assessment is imposed;
(B) to provide sufficient assessment income to repay obligations
issued to and other amounts borrowed from insured depository
institutions under section 14(d); or
{{4-28-06 p.1117}}
(C) for any other purpose that the Corporation may deem
necessary.
(6) COMMUNITY ENTERPRISE CREDITS.--The Corporation shall
allow a credit against any assessment to any insured depository
institution which satisfies the requirements of the Community
Enterprise Assessment Credit Board under
section 233(a)(1) of the
Bank Enterprise Act of 1991 in the amount determined by such Board by
regulation.
[Codified to 12 U.S.C. 1817(b)]
[Source: Section 2[7(b)] of the Act of September 21, 1950
(Pub. L. No. 797; 64 Stat. 877), effective September 21, 1950, as
amended by section 2 of the Act of July 14, 1960 (Pub. L. No. 86--671;
74 Stat. 548), effective January 1, 1961; section 910(h) of title IX of
the Act of December 31, 1970 (Pub. L. No. 91--609; 84 Stat. 1812),
effective December 31, 1970; section 6(c)(11) of the Act
of September 17, 1978 (Pub. L. No. 95--369; 92 Stat. 617), effective
September 17, 1978; section 310(c) of title III of the Act of November
10, 1978 (Pub. L. No. 95--630; 92 Stat. 3678), effective March 10,
1979; section 103 of title I of the Act of December 26, 1981 (Pub. L.
No. 97--110; 95 Stat. 1514), effective December 26, 1981; section
505(a) of title V of the Act of August 10, 1987 (Pub. L. No. 100--86;
101 Stat. 633), effective August 10, 1987; sections 201(a) and 208(4)
and (6) of title II of the Act of August 9, 1989 (Pub. L. No. 101--73;
102 Stat. 187 and 212, respectively), effective August 9, 1989;
sections 2002, 2003(a) and (b), and 2004 of title II of the Act of
November 5, 1990 (Pub. L. No. 101--508), effective November 5, 1990;
sections 103(b), 104, and 113(c) of title I and sections 232(b)(2) and
232(b)(3) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2238, 2239, 2247, and 2310, respectively),
effective December 19, 1991; section 302(a) of title III of the Act of
December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2345), effective the
earlier of-- 1) 180 days after the date on which final regulations
promulgated in accordance with section 302(c) of the Act become
effective; or 2) January 1, 1994, and section 311(a)(2) of title III of
the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2363),
effective December 19, 1991; sections 931(a)--(b) and 1603(a)(1) of
titles IX and XVI of the Act of October 28, 1992 (Pub. L. No. 102--550;
106 Stat. 3888 and 4078), effective December 19, 1991; sections
303(a)(2), 303(b)(7) and 303(b)(8) of title III of the Act of October
28, 1992 (Pub. L. No. 102--558; 106 Stat. 4224, 4225), effective March
1, 1992; section 8(h) of the Act of December 17, 1993 (Pub. L. No.
103--204; 107 Stat. 2388), effective January 1, 1994; section 602(a)(5)
of title VI of the Act of September 23, 1994 (Pub. L. No. 103--325; 108
Stat. 2288), effective September 23, 1994; sections 2703(b), 2707 and
2708 of title II of the Act of September 30, 1996 (Pub. L. No.
104--208; 110 Stat. 3009--486, 3009--496 and 3009--497, respectively),
effective September 30, 1996; sections 2104(a) and (b) of title II of
the Act of February 8, 2006 (Pub. L. No. 109--171; 120 Stat. 12),
effective date shall take effect on the date the final regulations
required under section 9(a)(2) take effect; sections 2105 of title II
of the Act of February 8, 2006 (Pub. L. No. 109--171; 120 Stat. 14),
effective date shall take effect on the date that the final regulations
required under section 9(a)(1) take effect; section 2106 of title II of
the Act of February 8, 2006 (Pub. L. No. 109--171; 120 Stat. 15),
effective February 8, 2006; section 3(a)(2), (3) and (4) of the Act of
February 15, 2006 (Pub. L. No. 109--173; 119 Stat. 3605), effective
date shall take effect on the date that the final regulations required
under section 2109(a)(5) of the Federal Deposit Insurance Reform Act of
2005 take effect; section 8(a)(8) of the Act of February 15, 2006 (Pub.
L. No. 109--173; 119 Stat. 3611), effective date shall take effect on
the day of the merger of the Bank Insurance Fund and the Savings
Association Insurance Fund pursuant to the Federal Deposit Insurance
Reform Act of 2005]
(c) CERTIFIED STATEMENTS; PAYMENTS.--
(1) CERTIFIED STATEMENTS REQUIRED.--
(A) IN GENERAL.--Each insured depository institution
shall file with the Corporation a certified statement containing such
information as the Corporation may require for determining the
institution's assessment.
(B) FORM OF CERTIFICATION.--The certified statement
required under subparagraph (A) shall--
(i) be in such form and set forth such supporting information as
the Board of Directors shall prescribe; and
(ii) be certified by the president of the depository institution
or any other officer designated by its board of directors or trustees
that to the best of his or her knowledge and
{{4-28-06 p.1118}}belief, the statement is true, correct and
complete, and in accordance with this Act and regulations issued
hereunder.
(2) PAYMENTS REQUIRED.--
(A) IN GENERAL.--Each insured depository institution
shall pay to the Corporation the assessment imposed under subsection
(b).
(B) FORM OF PAYMENT.--The payments required under
subparagraph (A) shall be made in such manner and at such time or times
as the Board of Directors shall prescribe by regulation.
(3) NEWLY INSURED INSTITUTIONS.--To facilitate the
administration of this section, the Board of Directors may waive the
requirements of paragraphs (1) and (2) for the initial assessment
period in which a depository institution becomes insured.
(4) Penalty for failure to make accurate certified
statement.--
(A) FIRST TIER.--Any insured depository institution
which--
(i) maintains procedures reasonably adapted to avoid any
inadvertent error and, unintentionally and as a result of such an
error, fails to submit the certified statement under paragraph (1)
within the period of time required under paragraph (1) or submits a
false or misleading certified statement; or
(ii) submits the statement at a time which is minimally after the
time required in such paragraph,
shall be subject to a penalty of not more than $2,000 for each day
during which such failure continues or such false and misleading
information is not corrected. The institution shall have the burden of
proving that an error was inadvertent or that a statement was
inadvertently submitted late.
(B) SECOND TIER.--Any insured depository institution
which fails to submit the certified statement under paragraph (1)
within the period of time required under paragraph (1) or submits a
false or misleading certified statement in a manner not described in
subparagraph (A) shall be subject to a penalty of not more than $20,000
for each day during which such failure continues or such false and
misleading information is not corrected.
(C) THIRD TIER.--Notwithstanding subparagraphs (A) and
(B), if any insured depository institution knowingly or with reckless
disregard for the accuracy of any certified statement described in
paragraph (1) submits a false or misleading certified statement under
paragraph (1), the Corporation may assess a penalty of not more than
$1,000,000 or not more than 1 percent of the total assets of the
institution, whichever is less, per day for each day during which the
failure continues or the false or misleading information in such
statement is not corrected.
(D) ASSESSMENT PROCEDURE.--Any penalty imposed under
this paragraph shall be assessed and collected by the Corporation in
the manner provided in subparagraphs (E), (F), (G), and (I) of section
8(i)(2) (for penalties imposed under such section) and any such
assessment (including the determination of the amount of the penalty)
shall be subject to the provisions of such section.
(E) HEARING.--Any insured depository institution against
which any penalty is assessed under this paragraph shall be afforded an
agency hearing if the institution submits a request for such hearing
within 20 days after the issuance of the notice of the assessment.
Section 8(h) shall apply to any
proceeding under this subparagraph.
[Codified to 12 U.S.C. 1817(c)]
[Source: Section 2[7(c)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 877), effective September 21, 1950, as amended by
section 2 of the Act of July 14, 1960 (Pub. L. No. 86--671; 74 Stat.
550), effective January 1, 1961; sections 201(a)(1) and 208(7) of title
II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187 and
213, respectively), effective August 9, 1989; section 302(b) of title
III of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat.
2348), effective the earlier of-- (1) 180 days after the date on which
final regulations promulgated in accordance with section 302(c) of the
Act become effective; or 2) January 1, 1994, and section 313(a) of
title III of the Act of December 19, 1991 (Pub. L. No. 102--242; 105
Stat. 2368), effective December 19, 1991; section
{{2-29-08 p.1119}}1605(b)(1) and (2) of title XVI of the Act of
October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4086), effective
December 19, 1991; section 3(a)(5) of the Act of February 15, 2006
(Pub. L. No. 109--173; 119 Stat. 3605), effective date shall take
effect on the date that the final regulations required under section
2109(a)(5) of the Federal Deposit Insurance Reform Act of 2005 take
effect]
(d) Corporation Exempt From
Apportionment.--Notwithstanding any other provision of law, amounts
received pursuant to any assessment under this section and any other
amounts received by the Corporation shall not be subject to
apportionment for the purposes of chapter 15 of title 31, United States
Code, or under any other authority.
[Codified to 12 U.S.C. 1817(d)]
[Source: Section 2[7(d)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 877), effective September 21, 1950, as amended by
section 3 of the Act of July 14, 1960 (Pub. L. No. 86--671; 74 Stat.
551), effective January 1, 1961; section 308 of title III of the Act of
March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 147 and 148), effective
March 31, 1980; section 117 of title I of the Act of October 15, 1982
(Pub. L. No. 97--320; 96 Stat. 1479), effective October 15, 1982;
sections 201(a)(1) and 208(5) of title II of the Act of August 9, 1989
(Pub. L. No. 101--73; 102 Stat. 187 and 210, respectively), effective
August 9, 1989; section 2003(c) of title II of the Act of November 5,
1990 (Pub. L. No. 101--508), effective November 5, 1990; section 233(c)
of title II and section 302(e)(3) of title III of the Act of December
19, 1991 (Pub. L. No. 102--242; 105 Stat. 2314 and 2349, respectively,
effective December 19, 1991; section 303(b)(3) of title III of the Act
of October 28, 1992 (Pub. L. No. 102--558; 106 Stat. 4224), effective
March 1, 1992]
(e) REFUNDS, DIVIDENDS, AND CREDITS.--
(1) REFUNDS OF OVERPAYMENTS.--In the case of any payment
of an assessment by an insured depository institution in excess of the
amount due to the Corporation, the Corporation may--
(A) refund the amount of the excess payment to the insured
depository institution; or
(B) credit such excess amount toward the payment of subsequent
assessments until such credit is exhausted.
(2) Dividends from excess amounts in deposit insurance
fund.--
(A) Reserve ratio in excess of 1.5 percent of estimated
insured deposits.--If; at the end of a calendar year, the reserve
ratio of the Deposit Insurance Fund exceeds 1.5 percent of estimated
insured deposits, the Corporation shall declare the amount in the Fund
in excess of the amount required to maintain the reserve ratio at 1.5
percent of estimated insured deposits, as dividends to be paid to
insured depository institutions.
(B) Reserve ratio equal to or in excess of 1.35 percent of
estimated insured deposits and not more than 1.5 percent.--If, at
the end of a calendar year, the reserve ratio of the Deposit Insurance
Fund equals or exceeds 1.35 percent of estimated insured deposits and
is not more than 1.5 percent of such deposits, the Corporation shall
declare the amount in the Fund that is equal to 50 percent of the
amount in excess of the amount required to maintain the reserve ratio
at 1.35 percent of the estimated insured deposits as dividends to be
paid to insured depository institutions.
(C) BASIS FOR DISTRIBUTION OF DIVIDENDS.--
(i) IN GENERAL.--Solely for the purposes of dividend
distribution under this paragraph, the Corporation shall determine each
insured depository institution's relative contribution to the Deposit
Insurance Fund (or any predecessor deposit insurance fund) for
calculating such institution's share of any dividend declared under
this paragraph, taking into account the factors described in clause
(ii).
(ii) FACTORS FOR DISTRIBUTION.--In implementing this
paragraph in accordance with regulations, the Corporation shall take
into account the following factors:
(I) The ratio of the assessment base of an insured depository
institution (including any predecessor) on December 31, 1996, to the
assessment base of all eligible insured depository institutions on that
date.
{{2-29-08 p.1120}}
(II) The total amount of assessments paid on or after January 1,
1997, by an insured depository institution (including any predecessor)
to the Deposit Insurance Fund (and any predecessor deposit insurance
fund).
(III) That portion of assessments paid by an insured depository
institution (including any predecessor) that reflects higher levels of
risk assumed by such institution.
(IV) Such other factors as the Corporation may determine to be
appropriate.
(D) NOTICE AND OPPORTUNITY FOR COMMENT.--The Corporation
shall prescribe by regulation, after notice and opportunity for
comment, the method for the calculation, declaration, and payment of
dividends under this paragraph.
(E) *
LIMITATION.--The Board of Directors may suspend or limit
dividends paid under subparagraph (B), if the Board determines in
writing that--
(i) a significant risk of losses to the Deposit Insurance Fund
exists over the next 1-year period; and
(ii) it is likely that such losses will be sufficiently high as
to justify a finding by the Board that the reserve ratio should
temporarily be allowed--
(I) to grow without requiring dividends under subparagraph (B);
or
(II) to exceed the maximum amount established under subsection
(b)(3)(B)(i).
(F) CONSIDERATIONS.--In making a determination under
subparagraph (E), 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
Corporation for anticipated failures of insured institutions adequately
addresses concerns over funding levels in the Deposit Insurance Fund;
and
(iv) any other factors that the Board determines are appropriate.
(G) REVIEW OF DETERMINATION.--
(i) ANNUAL REVIEW.--A determination to suspend or limit
dividends under subparagraph (E) shall be reviewed by the Board of
Directors annually.
(ii) ACTION BY BOARD.--Based on each annual review under
clause (i), the Board of Directors shall either renew or remove a
determination to suspend or limit dividends under subparagraph (E), or
shall make a new determination in accordance with this paragraph.
Unless justified under the terms of the renewal or new determination,
the Corporation shall be required to provide cash dividends under
subparagraph (A) or (B), as appropriate.
(3) One-time credit based on total assessment base at
year-end 1996.--
(A) IN GENERAL.--Before the end of the 270-day period
beginning on the date of the enactment of the Federal Deposit Insurance
Reform Act of 2005, the Board of Directors shall, by regulation after
notice and opportunity for comment, provide for a credit to each
eligible insured depository institution (or a successor insured
depository institution), based on the assessment base of the
institution on December 31, 1996, as compared to the combined aggregate
assessment base of all eligible insured depository institutions, taking
into account such factors as the Board of Directors may determine to be
appropriate.
{{2-29-08 p.1120.01}}
(B) CREDIT LIMIT.--The aggregate amount of credits
available under subparagraph (A) to all eligible insured depository
institutions shall equal the amount that the Corporation could collect
if the Corporation imposed an assessment of 10.5 basis points on the
combined assessment base of the Bank Insurance Fund and the Savings
Association Insurance Fund as of December 31, 2001.
(C) Eligible insured depository institution
defined.--For purposes of this paragraph, the term "eligible
insured depository institution" means any insured depository
institution that--
(i) was in existence on December 31, 1996, and paid a deposit
insurance assessment prior to that date; or
(ii) is a successor to any insured depository institution
described in clause (i).
(D) APPLICATION OF CREDITS.--
(i) IN GENERAL.--Subject to clause (ii), the amount of a
credit to any eligible insured depository institution under this
paragraph shall be applied by the Corporation, subject to subsection
(b)(3)(E), to the assessments imposed on such institution under
subsection (b) that become due for assessment periods beginning after
the effective date of regulations prescribed under subparagraph (A).
(ii) TEMPORARY RESTRICTION ON USE OF CREDITS.--The
amount of a credit to any eligible insured depository institution under
this paragraph may not be applied to more than 90 percent of the
assessments imposed on such institution under subsection (b) that
become due for assessment periods beginning in fiscal years 2008, 2009,
and 2010.
(iii) REGULATIONS.--The regulations prescribed under
subparagraph (A) shall establish the qualifications and procedures
governing the application of assessment credits pursuant to clause (i).
(E) Limitation on amount of credit for certain depository
institutions.--In the case of an insured depository institution
that exhibits financial, operational, or compliance weaknesses ranging
from moderately severe to unsatisfactory, or is not adequately
capitalized (as defined in section 38) at the beginning of an
assessment period, the amount of any credit allowed under this
paragraph against the assessment on that depository institution for
such period may not exceed the amount calculated by applying to that
depository institution the average assessment rate on all insured
depository institutions for such assessment period.
(F) SUCCESSOR DEFINED.--The Corporation shall define the
term successor' for purposes of this paragraph, by regulation, and
may consider any factors as the Board may deem appropriate.
(4) ADMINISTRATIVE REVIEW.--
(A) IN GENERAL.--The regulations prescribed under
paragraphs (2)(D) and (3) shall include provisions allowing an insured
depository institution a reasonable opportunity to challenge
administratively the amount of the credit or dividend determined under
paragraph (2) or (3) for such institution.
(B) ADMINISTRATIVE REVIEW.--Any review under
subparagraph (A) of any determination of the Corporation under
paragraph (2) or (3) shall be final and not subject to judicial review.
[Codified to 12 U.S.C. 1817(e)]
[Source: Section 2[11(e)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 885), effective September 21, 1950, as amended by
sections 6(c)(18) and (19) of the Act of September 17, 1978 (Pub. L.
No. 95--369; 92 Stat. 619), effective September 17, 1978; section
212(a) of title II of the Act of August 9, 1989 (Pub. L. No. 101--73;
103 Stat. 222), effective August 9, 1989; section 161(a) of title I of
the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2285),
effective December 19, 1991; section 325 of Title III and section
602(a)(26) and (27) of title VI of the Act of September 23, 1994 (Pub.
L. No. 103--325; 108 Stat. 2228 and 2289, respectively), effective
September 23, 1994; section 501(c)(2) of title V of the Act of October
22, 1994 (Pub. L. No. 103--394; 108 Stat. 4143, effective October 22,
1994; section 2706 of title II of the Act of September 30,
1996 (Pub. L. No. 104--208; 110 Stat. 3009--496), effective
September 30, 1996; section 2107(a)
{{2-29-08 p.1120.02}}of title II of the Act of February 8, 2006
(Pub. L. No. 109--171; 120 Stat. 16), effective February 8,
2006]
(f) Any insured depository institution which fails to make any
report of condition under subsection (a) of this section or to file any
certified statement required to be filed by it in connection with
determining the amount of any assessment payable by the depository
institution to the Corporation may be compelled to make such report or
file such statement by mandatory injunction or other appropriate remedy
in a suit brought for such purpose by the Corporation against the
depository institution and any officer or officers thereof in any court
of the United States of competent jurisdiction in the District or
Territory in which such depository institution is located.
[Codified to 12 U.S.C. 1817(f)]
[Source: Section 2[7(f)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 878), effective September 21, 1950, as amended by
section 3 of the Act of July 14, 1960 (Pub. L. No. 86--671; 74 Stat.
551), effective January 1, 1961; sections 201(a)(1) and 208(7) of title
II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187 and
213, respectively), effective August 9, 1989]
(g) ASSESSMENT ACTIONS.--
(1) IN GENERAL.--The Corporation, in any court of
competent jurisdiction, shall be entitled to recover from any insured
depository institution the amount of any unpaid assessment lawfully
payable by such insured depository institution.
(2) STATUTE OF LIMITATIONS.--The following provisions
shall apply to actions relating to assessments, notwithstanding any
other provision in Federal law, or the law of any State:
(A) Any action by an insured depository institution to recover
from the Corporation the overpaid amount of any assessment shall be
brought within 3 years after the date the assessment payment was due,
subject to the exception in subparagraph (E).
(B) Any action by the Corporation to recover from an insured
depository institution the underpaid amount of any assessment shall be
brought within 3 years after the date the assessment payment was due,
subject to the exceptions in subparagraphs (C) and (E).
(C) If an insured depository institution has made a false or
fraudulent statement with intent to evade any or all of its assessment,
the Corporation shall have until 3 years after the date of discovery of
the false or fraudulent statement in which to bring an action to
recover the underpaid amount.
(D) Except as provided in subparagraph (C), assessment deposit
information contained in records no longer required to be maintained
pursuant to subsection (b)(4) shall be considered conclusive and not
subject to change.
(E) Any action for the underpaid or overpaid amount of any
assessment that became due before the amendment to this subsection
under the Federal Deposit Insurance Reform Act of 2005 took effect
shall be subject to the statute of limitations for assessments in
effect at the time the assessment became due.
[Codified to 12 U.S.C. 1817(g)]
[Source: Section 2[7(g)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 878), effective September 21, 1950, as amended by
section 3 of the Act of July 14, 1960 (Pub. L. No. 86--671; 74 Stat.
551), effective January 1, 1961; sections 201(a)(1) and 208(7) of title
II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 187 and
213, respectively), effective August 9, 1989; section 2104(d) of title
II of the Act of February 8, 2006 (Pub. L. No. 109--171; 120 Stat. 13),
effective date shall take effect on the date that the final regulations
required by section 9(a)(1) take effect]
(h) Should any national member bank or any insured national
nonmember bank fail to make any report of condition under subsection
(a) of this section or to file any certified statement required to be
filed by such bank under any provision of this section, or fail to pay
any assessment required to be paid by such bank under any provision of
this Act, and should the bank not correct such failure within thirty
days after written notice has been given by the Corporation to an
officer of the bank, citing this subsection, and stating that the bank
has failed to make any report of condition under subsection (a) of this
section or to file or pay as required by law, all the rights,
privileges, and franchises of the bank granted to it under the National
Bank Act, as amended, the Federal Reserve Act, as
{{2-29-08 p.1120.02-A}}amended, or this Act, shall be thereby
forfeited. Whether or not the penalty provided in this subsection has
been incurred shall be determined and adjudged in the manner provided
in the sixth paragraph of section 2 of the Federal Reserve Act, as
amended. The remedies provided in this subsection and in the two
preceding subsections shall not be construed as limiting any other
remedies against any insured depository institution, but shall be in
addition thereto.
[Codified to 12 U.S.C. 1817(h)]
[Source: Section 2[7(h)] of the Act of September 21, 1950
(Pub. L. No. 797; 64 Stat. 879), effective September 21, 1950, as
amended by section 3 of the Act of July 14, 1960 (Pub.
L.
{{12-29-06 p.1120.03}}No. 86--671; 74 Stat. 551), effective January
1, 1961; section 201(a)(1) of title II of the Act of August 9, 1989
(Pub. L. No. 101--73; 103 Stat. 187), effective August 9,
1989]
* Editor's note: Section 5 of the Act of February
15, 2006 (Pub. L. No. 109--173; 119 Stat. 3606) provides that: SEC.
5. REPORT TO CONGRESS ON REFUNDS, DIVIDENDS, AND CREDITS FROM DEPOSIT
INSURANCE FUND. (a) SUBMISSION.--Any determination
under section 7(e)(2)(E) of the Federal Deposit Insurance Act, as added
by section 2107(a) of the Federal Deposit Insurance Reform Act of 2005,
shall be submitted to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the
House of Representatives, not later than 270 days after making such
determination. (b) CONTENT.--The report submitted under
subsection (a) shall include-- (1) a detailed explanation for
the determination; and (2) a discussion of the factors required
to be considered under section 7(e)(2)(F) of the Federal Deposit
Insurance Act, as added by section 2107(a) of the Federal Deposit
Insurance Reform Act of 2005. Go Back to Text
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