Sec.

327.03 Classification of deposits. 327.04 Payment of assessments by banks whose insured status has terminated. 327.05 Time of payment.

327.06 Payment of interest on delinquent assessment payments and assessment overpayments.

AUTHORITY: Secs. 7-9, Pub. L. 797, 64 Stat. 876-882 as amended by secs. 2, 3, Pub. L. 86671, 74 Stat. 547-551 and sec. 304, Pub. L. 95-630, 92 Stat. 3676 (12 U.S.C. 1817-1819). SOURCE: 45 FR 67310, Oct. 10, 1980, unless otherwise noted.

§ 327.01 Purpose and scope.

This part sets forth the rules for: (a) Reporting unposted credits and unposted debits;

(b) The classification of deposits;

(c) The payment of assessments by banks whose insured status has terminated; and

(d) The time for payment of the semiannual assessment required by section 7 of the Federal Deposit Insurance Act. The part applies to any insured bank or insured branch of a foreign bank. Deductions from the assessment base of an insured branch of a foreign bank are stated in Part 346.

§ 327.02 Reporting of assessment base additions for unposted credits and deductions for unposted debits.

(a) Definitions. (1) The term "unposted credit" as used in this section means any deposit received in any office of the bank for deposit in any other office of the bank located in any State of the United States, the District of Columbia, Puerto Rico, Guam, American Samoa, the Northern Marianas Islands, or the Virgin Islands, except those which have been: (i) Included in the total deposits in the report of condition; or (ii) offset in the report of condition by an equal amount of cash items in the bank's possession drawn on itself (on the same type of deposits as those offset) and not charged against deposit liabilities at the close of business on the date of the report of condition.

(2) The term "unposted debit" as used in this section means a cash item in the reporting bank's possession that is drawn on the bank and immediately chargeable, but not yet charged, against the bank's deposit liabilities at

the close of business on the date of the report of condition. The following items are excluded: (i) Cash items drawn on other banks, (ii) overdrafts and nonsufficient fund (NSF) items, (iii) cash items returned unpaid to the last endorser for any reason and (iv) drafts and warrants that are "payable at" or "payable through" the reporting bank for which there is no written authorization on file at the bank or State statute allowing the bank at its discretion to charge the items against the deposit accounts of the drawees.

(3) The above terms "unposted credit" and "unposted debit" do not include items which have been reflected in deposit accounts on the general ledger and in the report of condition, even though they have not been credited or debited to individual deposit accounts.

(b) Methods of reporting unposted credits and unposted debits. (1) Each insured bank shall report unposted credits in reports of condition for addition to the assessment base in the following manner:

(i) If the bank records show the total actual amount of unposted credits segregated into demand deposits and time and savings deposits, the bank must report the segregated amounts for addition to demand deposits and time and savings deposits, respectively.

(ii) If the bank records show the total actual amount of unposted credits but do not segregate the amount as stated in paragraph (b)(1)(i) of this section and if the bank does not elect to segregate the credits on the basis of the experience factors, the bank must report the total actual amount of the unposted credits for addition to time and savings deposits.

(iii) If the bank records show the total actual amount of the unposted credits, but do not segregate the amount as stated in paragraph

(b)(1)(i) of this section and if the bank elects to segregate the credits on the basis of the experience factors, the bank must report the segregated amounts for addition to demand deposits and time and savings deposits.

(iv) If the bank records do not show the total actual amount of unposted credits (either in total or in segregated

amounts), the amount of the unposted credits must be determined by experience factor or factors and reported in a total unsegregated amount for addition to time and savings deposits or in segregated amounts for addition to demand deposits and time and savings deposits.

(2) Unposted debits may be reported in the same manner as stated in paragraph (b)(1) of this section for deduction from the assessment base, except that unsegregated amounts may be reported for deduction only from demand deposits.

(c) Bank reporting on basis of experience factor. Upon written approval by the Fiscal Agent of the Corporation, an insured bank using experience factors may use either (1) separate factors for computing the additions or deductions to demand deposits and time and savings deposits; or (2) a single factor for computing additions to be made in total amount to time and savings deposits or for computing deductions to be made in total amount from demand deposits. When a single factor is used, the additions or deductions are required to be made to or from the type of deposit giving the lesser advantage to the bank in taking the 163 percent deduction from demand deposits and the 1 percent deduction from time and savings deposits.

(d) Procedure for obtaining approval to use experience factors. Each insured bank which intends to use an experience factor in computing the amounts of unposted credits or unposted debits shall state its intention in writing to the Corporation. Any bank becoming an insured bank whose records do not show amounts of unposted credits and unposted debits and which proposes to report such items for assessment purposes by means of experience factors, shall so inform the Corporation within thirty (30) days after it becomes an insured bank. Upon receipt of the notice, the Corporation will furnish the bank a form for submitting to the Corporation the computations used in determining the experience factors. If the experience factors are approved by the Corporation, the bank shall use the factors in reporting unposted credits or debits until new experience fac

tors are established under paragraph (h) or (i) of this section or until the bank's accounting methods are changed to show actual amounts from day to day.

(e) Computing and using experience factors. (1) The reporting bank may use either of the following initial experience factors in reporting unposted credits for addition to the assessment base for 2 years:

(i) Separate experience factors for additions to demand deposits and to time and savings deposits. The factor for each semiannual period for:

(A) Demand deposits shall be the percentage obtained by dividing the amount of unposted credits on the first business day of February or August which are creditable to demand deposits by the amount of total demand deposits shown on the books of the bank at the close of business on the same day; and

(B) Time and savings deposits shall be the percentage obtained by dividing the amount of unposted credits on the first business day of February or August which are creditable to time and savings deposits by the amount of total time and savings deposits shown on the books of the bank at the close of business on the same day.

Until 2 years' experience has been obtained, the bank shall determine on the first business day of February or August of each year the total actual amount of unposted credits segregated into demand deposits and time and savings deposits. For assessment purposes, there shall be separately stated in each report of condition for addition to demand deposits the amount obtained by multiplying the amount of total demand deposits shown in the report of condition by the factor for demand deposits for such semiannual period, and for addition to time and savings deposits the amount obtained by multiplying the amount of total time and savings deposits shown in each report of condition by the factor for time and savings deposits for such semiannual period.

(ii) A single experience factor. The factor for each semiannual period shall be the percentage obtained by dividing the amount of total unposted

credits on the first business day of February or August by the total deposits shown on the books of the bank at the close of business on the same day. Until 2 years' experience has been obtained, the bank shall determine on the first business day of February or August of each year the total actual amount of all unposted credits. For assessment purposes, there shall be separately stated in each report of condition for addition to time and savings deposits for assessment purposes the amount obtained by multiplying the amount of total deposits shown in the report of condition by the factor for such semiannual period. When 2 years' experience has been obtained with respect to an experience factor developed under paragraph (e)(1) of this section, a permanent experience factor shall be computed and used for the ninth and subsequent reports of condition. This factor shall be the percentage obtained by dividing the aggregate amount of the unposted credits by the aggregate amount of the deposits which were used in establishing each factor for the four preceding semiannual periods.

(2) The reporting bank may use the S same procedure outlined in paragraph (e)(1) of this section for establishing experience factors in reporting unposted debits for deduction from the assessment base, except (i) the terms "deduction", "chargeable", and "debit" would be substituted for the terms "addition", "creditable", and "credit"; and (ii) in developing the single experience factor, if the amount of the deductions computed exceeds the amount of the demand deposits, the excess may be deducted from time and savings deposits.

(3) When it is impracticable to segregate the amounts of unposted credits or debits outstanding in a "branch clearings" account or similar account or to segregate the unposted credits or debits into demand deposits and time and savings deposits in computing a factor or factors under this paragraph, the bank may apply to the Corporation for permission to compute the amounts by other methods.

(f) Experience factors for newly insured banks. A newly insured bank may determine and use its experience

factors as provided in paragraph (e) of this section, except that in preparing its first report of condition for assessment purposes it shall determine the total actual amounts of unposted credits, debits, and deposits on a day designated by the Corporation, instead of on the first business day of February or August.

(g) Mergers, consolidations, deposit assumptions, and conversions. In a merger, consolidation or deposit assumption transaction involving one or more banks which used an experience factor, the continuing or resulting bank shall use new experience factors based on the combined experience of the participating banks for the 2-year period prior to such transaction or may establish a new factor or factors in accordance with paragraph (e) of this section. A bank resulting from the conversion of a bank shall continue to use the experience factors of the converted bank.

(h) Bank establishing new experience factors. A bank may apply to the Corporation for permission to establish new permanent factors in the manner provided in paragraphs (e) (1) and (2) of this section. Until the new permanent factors have been determined and approved in writing by the Corporation, the bank shall continue to use its existing factors.

(i) Corporation requiring new experience factors. The Corporation at any time may require a bank to establish new factors, and for this purpose may designate a day or days and a period or periods, other than those specified, for the determination of deposits and the total actual amounts of unposted credits or unposted debits, or both. After the new factors have been computed by the bank or the Corporation and have been approved in writing by the Corporation, the bank shall use the new factors for all subsequent reports of condition.

(j) Notice to Corporation of changes in accounting methods. If a bank changes its accounting procedures from those used when its experience factors were established and this causes an increase or decrease in the amount of unposted credits or unposted debits, it shall promptly give writ

ten notice to the Corporation of the change.

§ 327.03 Classification of deposits.

(a) The deposits that are required to be reported in the reports of condition under section 7 of the Federal Deposit Insurance Act (12 U.S.C. 1817) shall be segregated into demand deposits and time and savings deposits.

(b) For the purpose of the reports of condition and for the computation of assessments as provided in subsection (b) of section 7 of the act (12 U.S.C. 18171), the terms "time deposits", "savings deposits", and "demand deposits" shall have the same meaning as those provided in § 329.1, except that deposits accumulated for the payment of personal loans, which represent actual loan payments received by the bank from borrowers and accumulated by the bank in hypothecated deposit accounts for payment of the loans at maturity, shall not be reported as deposits on the report of condition. The deposit amounts covered by the exception are to be deducted from the loan amounts for which these deposits have been accumulated and assigned or pledged to effectuate payment. Time and savings deposits that are pledged as collateral to secure loans are not deposits accumulated for the payment of personal loans and are to be reported in the same manner as if they were not securing a loan.

§ 327.04 Payment of assessments by banks whose insured status has terminated. (a) Liability for assumed deposits. When the deposit liabilities of an insured bank are assumed by another insured bank, the assumed deposits, for assessment purposes, shall be deposit liabilities of the assuming bank and shall cease to be deposit liabilities of the bank whose deposits are assumed.

(b) Payment of assessments by bank whose deposits are assumed. When the deposit liabilities of an insured bank are assumed by another insured bank, the insured bank whose deposits are assumed shall file a final certified statement as provided in § 304.3(u) and shall pay to the Corporation the normal assessment on the deposits. If the deposits of the terminating bank are assumed by a newly insured bank,

the terminating bank is not required to file certified statements or pay any assessment upon the deposits assumed after the semiannual period in which the assumption occurs.

(c) Payment of assessments by as suming bank on assumed deposits. When the deposit liabilities of an insured bank are assumed by another insured bank and the assuming bank agrees to file the certified statement which the terminating bank is required to file, the filing of the certified statement and the payment of the assessment on the deposits by the assuming bank shall satisfy the termi nating bank's obligations in this regard if (1) the requisite notice of assumption, as provided in Part 307 of this chapter, is given to the depositors of the terminating bank, and (2) the certified statement is filed separately from that required to be filed by the assuming bank.

(d) Resumption of insured status before insurance of deposits ceases. If a bank whose insured status has been terminated under section 8(a) of the Federal Deposit Insurance Act is per mitted by the Corporation to continue or resume its status as an insured bank before the insurance of its deposits has ceased, the bank will be deemed, for assessment purposes, to continue as an insured bank and must thereaf ter furnish certified statements 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 § 303.7 of this chapter.

(e) Payment of assessments by bank whose deposits are not assumed. (1) When the deposit liabilities of an insured bank are not assumed by another insured bank, the terminating bank shall continue to file certified statements and pay assessments for the period its deposits are insured as provided by the Federal Deposit Insurance Act. It shall not be required to file further certified statements or to pay further assessments after the bank has paid in full its deposit liabil ities and the assessment to the Corporation required to be paid for the semiannual period in which its deposit liabilities are paid in full, and after it,

inder applicable law, has ceased to have authority to transact a banking business and to have existence, except or the purpose of, and to the extent permitted by law for, winding up its Affairs.

a (2) When the deposit liabilities of he bank have been paid in full, the Dank shall certify to the Corporation hat the deposit liabilities have been Daid in full and give the date of the final payment. When the bank has unclaimed deposits, the certification shall further state the amount of the inclaimed deposits and the disposition nade of the funds to be held to meet he claims. For assessment purposes, The following will be considered as Dayment of the unclaimed deposits:

(i) The transfer of cash funds in an amount sufficient to pay the unClaimed and unpaid deposits to the bublic official authorized by law to receive the same; or

(ii) If no law provides for the transfer of funds to a public official, the ransfer of cash funds or compensatory assets to an insured bank in an amount sufficient to pay the unclaimed and unpaid deposits in consideration for the assumption of the deposit obligations by the insured bank. The terminating bank 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 bank, 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. If the unclaimed. and unpaid deposits are disposed of as provided in paragraph (e)(2)(i) of this section, a certified copy of the public official's receipt issued for the funds shall be furnished to the Corporation. If the unclaimed and unpaid depostis are disposed of as provided in paragraph (e)(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 con

tract of assumption shall be furnished to the Corporation.

(3) The terminating bank shall advise the Corporation of the date on which the authority or right of the bank to do a banking business has terminated and the method whereby the termination has been effected (i.e., whether the termination has been effected by the surrender of the charter, the cancellation of its authority or license to do a banking business by the supervisory authority, or otherwise).

§ 327.05 Time of payment.

Each insured bank shall pay to the Corporation the amount of the semiannual assessment due to the Corporation, as shown on its certified statement, at the time the statement is required to be filed under section 7(c) of the Federal Deposit Insurance Act. Certified statements shall be considered to have been filed in a timely manner if they are postmarked on or before the last day of the first month of the semiannual period for which the certified statements are being filed. Accordingly, certified statements that are based on the deposits in the September 30 and December 31 reports of condition must be postmarked no later than January 31 and certified statements based on the deposits in the March 31 and June 30 reports of condition must be postmarked no later than July 31.

§ 327.06 Payment of interest on delinquent assessment payments and assessment overpayments.

(a) Each insured bank shall pay to the Corporation interest on delinquent assessment payments. All assessments will be considered delinquent if they are postmarked after the time for payment specified in § 327.05, including late payments caused by bank errors in the Certified Statement, unless the delay has been caused by a bank's good faith reliance on a specific FDIC rule, regulation or approval. The interest rate will be the United States Treasury Department's current value of funds rate which is issued under the Treasury Fiscal Requirements Manual (TFRM rate) and published quarters