(2) Time deposits, open account, being deposits, other than time certificates of deposit, with respect to which there is in force a written contract with the depositor that neither the whole nor any part of such deposit may be withdrawn prior to the date of maturity, which shall not be less than 30 days after the date of the deposit, or prior to the expiration of the period of notice which must be given by the depositor in writing not less than 30 days in advance of withdrawals, including deposits such as Christmas club accounts and vacation club accounts, which are made under written contracts providing that no withdrawal shall be made until a certain number of periodic deposits have been made during a period of not less than 3 months, even though some of the deposits are made within 30 days from the end of such period; and

(3) Deposits accumulated for the payment of personal loans representing the aggregate of amounts which are accumulated by borrowers for payment of personal loans in accounts opened by borrowers in connection with personal loans (whether or not the bank maintains a separate personal loan department) and which, under contracts between the bank and the borrowers, do not immediately reduce the unpaid balances of the loans but are assigned or pledged to assure repayment of the personal loans at maturity, except that amounts received by the bank which under contracts with the borrowers constitute installment payments on personal loans and immediately reduce the unpaid balances of the loans even though recorded on separate accounts on the books of the bank shall not be reported as deposits; and

(4) Savings deposits as defined in § 329.1(e).

(c) Demand deposits shall consist of all deposits other than time and savings deposits.

126 FR 287, Jan. 14, 1961, as amended at 31 FR 15795, Dec. 15, 1966; 40 FR 57209, Dec. 8, 1975]

8327.3 Payment of assessments by banks whose insured status has terminated.

(a) Assumed deposits of terminating bank become deposits of assuming bank. 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 from and after the effective date of the assumption.

(b) Payment of assessments by assuming bank on assumed deposits of terminating bank. Where 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 such Certified Statement and the payment of the assessment thereon by the assuming bank shall be deemed the acts of the terminating bank: Provided, That the requisite notice of assumption' be given to the depositors of the terminating bank, and Provided further, That such Certified Statement shall be filed separately from that required to be filed by the assuming bank.

(c) Resumption of insured status before insurance of deposits ceases. If a bank whose insured status has been terminated under section 8(a) or (o) of the Federal Deposit Insurance Act, makes application to the Corporation, before the insurance of its deposits shall have ceased, to be permitted to continue or to resume its status as an insured bank and if the Board of Directors grants the application, the bank will be deemed for assessment purposes, to continue as an insured bank and must thereafter furnish Certified Statements and pay assessments as though its insured status had not been terminated. For the procedure to be followed in making such application, see § 303.7 of this chapter. [28 FR. 287, Jan. 14, 1961, as amended at 32 F.R. 10561, July 19, 1967]

§ 327.4 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 such statement is required to be filed under section 7(c) of the Federal Deposit Insurance Act.

The requisite notice of assumption shall be the notice prescribed in § 307.3 of this chapter.

* See §§ 304.1 and 304.3 of this chapter.

maintain offices in such foreign countries in which offices the deposits are not insured.

§ 328.1 Mandatory requirements with regard to the official sign and its display.

(a) Insured banks to display official sign. Each insured bank shall continuously display an official sign as hereinafter prescribed at each station or window where insured deposits are usually and normally received in its principal place of business and in all its branches: Provided, That no bank becoming an insured bank shall be required to display such official sign until twentyone (21) days after its first day of operation as an insured bank. The official sign may be displayed by any insured bank prior to the date display is required. Additional signs in other sizes, colors, or materials, incorporating the basic design of the official sign, may be displayed in other locations within an insured bank.

(b) Official sign. The official sign referred to in paragraph (a) of this section shall be of the following design:

The "symbol" of the Corporation shall be that portion of the official sign represented by the letters and the Corporation seal contained upon the sign.

(1) Any insured bank may procure official signs from the Corporation. Variations in size, color, and materials in the official sign, as described in the "Official Catalog of Insured Bank Signs"-No. ED1, may be procured at no charge from the Corporation by insured banks for official use. The Corporation shall furnish to banks an order blank for use in procuring the official signs. Any bank which promptly, after receipt of the order blank, fills it in, executes it, and

properly directs and forwards it to the Federal Deposit Insurance Corporation, Washington, D.C. 20429, shall not be deemed to have violated this regulation on account of not displaying an official sign, or signs, unless the bank shall omit to display such official sign or signs after receipt thereof.

(2) Official signs reflecting variations in color and materials and additional signs reflecting variations in size, color, and materials may be procured by insured banks from commercial suppliers.

(c) Receipt of deposits at same teller's station or window as noninsured bank or

institution. An insured bank is forbidden to receive deposits at any teller's station or window where any noninsured bank or institution receives deposits or similar liabilities.

(d) Required changes in official sign. The Corporation may require any insured bank, upon at least 30 days' written notice, to change the wording of its official signs in a manner deemed necessary for the protection of depositors or others. [32 F.R. 10189, July 11, 1967, as amended at 35 FR 460, Jan. 14, 1970; 39 FR 41358, Nov. 27, 1974]

§ 328.2

Mandatory requirements with regard to the official advertising statement and manner of use.

(a) Insured banks to include official advertising statement in all advertisements except as provided in paragraph (c) of this section. Each insured bank shall include the official advertising statement, prescribed in paragraph (b) of this section, in all of its advertisements except as provided in paragraph (c) of this section.

(1) An insured bank is not required to include the official advertising statement in its advertisements until thirty (30) days after its first day of operation as an insured bank.

(2) In cases where the Board of Directors of the Federal Deposit Insurance Corporation shall find the application to be meritorious, that there has been no neglect or willful violation in the observance of the section and that undue hardship will result by reason of its requirements, the Board of Directors may grant a temporary exemption from its provision to a particular bank upon its written application setting forth the facts. For the procedure to be followed in making such application see § 303.8 of this chapter.

(3) In cases where advertising copy not including the official advertising statement is on hand on the date the requirements of this section become operative, the insured bank may cause the official advertising statement to be included by use of a rubber stamp or otherwise.

(b) Official advertising statement. The official advertising statement shall be in substance as follows: "Member of the Federal Deposit Insurance Corporation". The word "the" or the words "of the" may be omitted. The words "This bank is a" or the words "This institution is a" or the name of the insured bank

followed by the words "is a" may be added before the word "member". The short title "Member of FDIC" or "Member FDIC" or a reproduction of the "symbol" may be used by insured banks at their option as the official advertising statement. The official advertising statement shall be of such size and print to be clearly legible. Where it is desired to use the "symbol" of the Corporation as the official advertising statement, and the "symbol" must be reduced to such proportions that the small lines of type and the Corporation seal therein are indistinct and illegible, the Corporation seal in the letter C and the two lines of small type may be blocked out or dropped.

(c) Types of advertisements which do not require the official advertising statement. The following is an enumeration of the types of advertisements which need not include the official advertising statement:

(1) Statements of condition and reports of condition of an insured bank which are required to be published by State or Federal law;

(2) Bank supplies such as stationery (except when used for circular letters), envelopes, deposit slips, checks, drafts, signature cards, deposit passbooks, certificates of deposit, etc.;

(3) Signs or plates in the banking office or attached to the building or buildings in which the banking offices are located;

(4) Listings in directories;

(5) Advertisements not setting forth the name of the insured bank;

(6) Display advertisements in bank directory, provided the name of the bank is listed on any page in the directory with a symbol or other descriptive matter indicating it is a member of the Federal Deposit Insurance Corporation;

(7) Joint or group advertisements of banking services where the names of insured banks and noninsured banks or institutions are listed and form a part of such advertisements;

(8) Advertisements by radio which do not exceed thirty (30) seconds in time;

(9) Advertisements by television, other than display advertisements, which do not exceed thirty (30) seconds in time;

(10) Advertisements which are of the type or character making it impractical to include thereon the official advertising statement including, but not limited to, promotional items such as calendars, matchbooks, pens, pencils, and key chains;

(11) Advertisements which contain a statement to the effect that the bank is a member of the Federal Deposit Insurance Corporation, or that the bank is insured by the Federal Deposit Insurance Corporation, or that its deposits or depositors are insured by the Federal Deposit Insurance Corporation to the maximum of $40,000 for each depositor;

(12) Advertisements relating to the making of loans by the bank or loan services;

(13) Advertisements relating to safekeeping box business or services;

(14) Advertisements relating to trust business or trust department services;

(15) Advertisements relating to real estate business or services;

(16) Advertisements relating to armored car services;

(17) Advertisements relating to service charges or analysis charges;

(18) Advertisements relating to securities business or securities department services;

(19) Advertisements relating to travel department business, including traveler's checks on which the bank issuing or causing to be issued the advertisement is not primarily liable;

(20) Advertisements relating to savings bank life insurance.

(d) Outstanding billboard advertisements. Where an insured bank has billboard advertisements outstanding which are required to include the official advertising statement and has direct control of such advertisements either by possession or under the terms of a contract, it shall, as soon as it can consistent with its contractual obligations, cause the official advertising statement to be included therein.

(e) Official advertising statement in non-English language. The non-English equivalent of the official advertising statement may be used in any advertisement: Provided, That the translation has had the prior written approval of the Corporation.

[32 F.R. 10189, July 11, 1967, as amended at 35 FR 460, Jan. 14, 1970; 39 FR 41358, Nov. 27, 1974]

Sec. 329.5 829.6

Withdrawal of savings deposits. Maximum rates of interest payable on time and savings deposits by insured nonmember banks other than insured nonmember mutual savings banks.

329.7 Maximum rates of interest or dividends payable on deposits by in

sured nonmember mutual savings banks.

329.8 Advertising of interest on deposits. 329.10 Obligations other than deposits. 329.101 Computation and payment of interest on time and savings deposits. APPENDIX A-Foreign, international and supranational entities designated as exempt from § 329.6.

AUTHORITY: The provisions of this Part 329 issued under secs. 9, 18, 64 Stat. 881, 891; 12 U.S.C. 1819, 1828.

§ 329.0 Scope.

The provisions of this Part 329 apply to the advertisement and payment of interest or dividends on deposits in insured nonmember banks. The provisions of this Part 329 do not apply to any deposit in a bank outside of, or payable only at a bank's office which is located outside of, the States of the United States and the District of Columbia. Except as provided in §§ 329.7, 329.8, and 329.10, the provisions of this Part 329 do not apply to mutual savings banks or to guaranty savings banks operating in the State of New Hampshire so long as said guaranty savings banks operate substantially under and pursuant to the laws of the State of New Hampshire pertaining to mutual savings banks and do not engage in commercial banking. [38 FR 26355, Sept. 20, 1973]

nonnegotiable instrument which provides on its face that the amount of such deposit is payable:

(1) On a certain date, specified in the instrument, not less than thirty (30) days after the date of the deposit; or

(2) At the expiration of a specified period not less than thirty (30) days after the date of the instrument; or

(3) Upon written notice to be given not less than thirty (30) days before the date of repayment.1

(d) Time deposits, open account. The term "time deposit, open account" means a deposit, other than a "time certificate of deposit," with respect to which there is in force a written contract with the depositor that neither the whole nor any part of such deposit may be withdrawn, by check or otherwise, prior to the date of maturity, which shall be not less than 30 days after the date of the deposit,' or prior to the expiration of the period of notice which must be given by the depositor in writing not less than 30 days in advance of withdrawals.'

(e) Savings deposits. (1) The term "savings deposit” means a deposit:

(i) Which consists of funds deposited to the credit of one or more individuals, or of a public unit, as defined in section 3(m) of the Federal Deposit Insurance Act, or of a corporation, association, or other organization operated primarily for religious, philanthropic, charitable, educational, fraternal, or other similar purposes and not operated for profit, or in which the entire beneficial interest is held by one or more individuals or public units, or by such a corporation, association, or other organization; or

If the certificate of deposit provides merely that the bank reserves the right to require notice of not less than thirty (30) days before any withdrawal is made, the bank must require such notice before permitting withdrawal.

'Deposits, such as Christmas club accounts and vacation club accounts, which are made under written contracts providing that no withdrawal shall be made until a certain number of periodic deposits have been made during a period of not less than 3 months, constitute "time deposits, open account," even though some of the deposits are made within 30 days from the end of such period.

A deposit with respect to which the bank merely reserves the right to require notice of not less than 30 days before any withdrawal is made is not a “time deposit, open account," within the meaning of the above definition.

'Deposits in joint accounts of two or more individuals may be classified as savings de

(ii) Which consists of funds deposited to the credit of, or in which all or part of the beneficial interest is held by a corporation, partnership, association, or other organization which does not come within paragraph (e) (1) (i) of this section, but only to the extent that such deposits do not exceed $150,000 for any such corporation, partnership, association, or other organization in any one bank; and

(iii) In the case of both paragraphs (e) (1) (i) and (e) (1) (ii) of this section, with respect to which the depositor is not required by the deposit contract but may at any time be required by the bank to give notice in writing of an intended withdrawal not less than 30 days before such withdrawal is made and which is not payable on a specified date or at the expiration of a specified time after the date of deposit.

5

(2) (1) Except as provided in paragraph (e) (2) (ii) of this section, the term "savings deposit", as defined in paragraph (e) (1) (i) of this section, shall include all interest-bearing deposits subject to withdrawal by negotiable or transferable instruments for the purpose of making transfers to third parties where such withdrawals are authorized by law.

(ii) No insured nonmember bank or insured nonmember mutual savings bank shall maintain an interest-bearing deposit for a corporation, partnership, association or other organization under paragraph (e) (1) (ii) of this section, or for a public unit, as defined in section 3(m) of the Federal Deposit Insurance Act, if such deposit is subject to withdrawal by negotiable or transferable instrument for the purpose of making transfers to third parties: Provided, That any insured nonmember bank or insured nonmember mutual savings bank may maintain such a deposit for a public unit

posits under paragraph (e) (1) (1) if they meet the other requirements of the definition in paragraph (e)(1) (1), but deposits of a partnership operated for profit may not be so classified. Deposits to the credit of an individual or a public unit of funds in which the beneficial interest is held by a corporation, partnership, association, or other organization operated for profit or not operated primarily for religious, philanthropic, charitable, educational, fraternal, or other similar purposes, may not be classified as savings deposits except to the extent permitted in paragraph (e) (1) (ii).

5 The exercise by the bank of its right to require such notice shall not cause the deposit to cease to be a savings deposit.