of the participating banks for the twoyear period prior to such transaction or may establish a new factor or factors in accordance with paragraph (g) of this section. A bank resulting from the conversion of a bank shall continue to use the experience factors of the converted bank.

(j) Use of experience factor. Experience factors for the computation of unposted credits or unposted debits or both, once established by any bank and approved by the Corporation, must continue to be used for a period of at least three years and until a new factor or factors are established with the approval of the Corporation or until such time as the accounting methods of the bank are changed to show actual amounts thereof from day to day.

(k) Bank establishing new experience factors. Upon thirty days' written notice to the Corporation, a bank may establish new permanent factors in the manner provided in paragraphs (g) (1) and (2) of this section: Provided, however, That until such new permanent factors have been determined and approved in writing by the Corporation the bank shall continue to use its pre-established factors.

(1) Corporation requiring new experience factors. The Corporation may require a bank to establish new factors at any time as provided in paragraphs (1) or (2), or both, of paragraph (g) of this section, and for this purpose may designate a day or days and a period or periods other than those specified therein for the determination of deposits and the actual amounts of unposted credits or unposted debits, or both. When such new factor or factors have been computed either by the bank or the Corporation and have been approved in writing by the Corporation, the bank shall use such new factor or factors for reports of condition filed thereafter.

(m) Notice to Corporation of changes in accounting methods. When a bank changes its accounting procedures from those used in the period in which its experience factors were established, in such manner as to increase or decrease the amount of unposted credits or unposted debits, it

shall promptly give written notice to the Corporation of such change.

[26 FR 287, Jan. 14, 1961, as amended at 36 FR 3112, Feb. 18, 1971]

§ 327.2 Classification of deposits.

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

(b) The time and savings deposits for the purpose of such reports and for the computation of assessments as provided in subsection (b) of section 7 of the Act (12 U.S.C. 1817) shall consist of:

(1) Time certificates of deposit evidenced by an instrument providing on its face that the amount of such deposit is payable on a certain date not less than thirty days after the date of deposit, at the expiration of a specified period not less than thirty days after the date of the instrument, or upon written notice to be given not less than thirty days before the date of payment;

(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.

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

§ 327.3 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 Certi

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

fied 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.

[26 FR 287, Jan. 14, 1961, as amended at 32 FR 10561, July 19, 1967]

It also prescribes an approved short title which insured banks may use at their option. It imposes no limitations on other proper advertising of insurance of deposits by insured banks and does not apply to advertisements published in foreign countries by insured banks which maintain offices in such foreign countries in which offices the deposits are not insured.

[32 FR 10189, July 11, 1967]

§ 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 twenty-one (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 FR 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 FR 10189, July 11, 1967, as amended at 35 FR 460, Jan. 14, 1970; 39 FR 41358, Nov. 27, 1974]

329.3 Interest on time and savings deposits. 329.4 Payment of time deposits before maturity.

329.5 Withdrawal of savings deposits. 329.6 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 insured nonmember mutual savings banks.

329.8 Advertising of interest on deposits. 329.9 [Reserved]

329.10 Obligations other than deposits. 329.101 Computation and payment of interest on time and savings deposits.

APPENDIX A-Foreign, international and suprenational entities designated as exempt from § 329.6.

AUTHORITY: 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 for §§ 329.7, 329.8, and 329.10, the provisions of this Part 329 do not apply to: (a) Mutual savings banks; (b) guaranty savings banks operating in the State of New Hampshire, so long as the 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; or (c) corporations operating in the Commonwealth of Massachusetts as banking companies pursuant to the provisions of

Wherever the terms "insured nonmember bank" or "insured nonmember mutual savings bank" appear in this Part 329, they shall be deemed to include banks and mutual savings banks, respectively, in Massachusetts that are not insured by the Federal Deposit Insurance Corporation.