corporation or comprising such partnership and, for deposit insurance purposes, the interest of each person in such a deposit account shall be added to any other deposit accounts individually owned by such person and insured up to $100,000 in the aggregate.

(b) Notwithstanding any other provision of this Part 330, any trust or other business arrangement which has filed or is required to file a registration statement with the Securities and Exchange Commission pursuant to section 8 of the Investment Company Act of 1940 shall be deemed to be a corporation for purposes of determining deposit insurance coverage.

[32 FR 10408, July 14, 1967, as amended at 35 FR 460, Jan. 14, 1970; 39 FR 41359, Nov. 27, 1974; 42 FR 10312, Feb. 22, 1977; 45 FR 23646, Apr. 8, 1980]

§ 330.6 Accounts held by an unincorporated association.

Deposit accounts of an unincorporated association engaged in any independent activity shall be insured up to $100,000 in the aggregate. A deposit account of an unincorporated association not engaged in an independent activity shall be deemed to be owned by the persons comprising such association and for deposit insurance purposes, the interest of each owner in such a deposit account shall be added to any other deposit accounts individually owned by such person and insured up to $100,000 in the aggregate. [32 FR 10408, July 14, 1967, as amended at 35 FR 460, Jan. 14, 1970; 39 FR 41359, Nov. 27, 1974; 45 FR 23646, Apr. 8, 1980]

§ 330.7 Independent activity.

The term "independent activity" means any activity other than one directed solely at increasing insurance coverage.

§ 330.8 Public unit accounts.

(a) (1) Each official custodian of funds of the United States depositing the same in time or savings deposits in an insured bank shall be separately insured up to $100,000 as to such deposits. Each such official custodian depositing such funds in a demand deposit shall be separately insured up to $100,000.

(2) Each official custodian of funds of any State of the United States or any county, municipality, or political subdivision thereof depositing the same in time or savings deposits in an insured bank in the same State shall be separately insured up to $100,000.

(3) Each official custodian of funds of the District of Columbia lawfully depositing the same in time or savings deposits in an insured bank in the District of Columbia shall be separately insured up to $100,000.

(4) Each official custodian of funds of the Commonwealth of Puerto Rico, the Virgin Islands, American Samoa, or Guam, or of any county, municipality, or political subdivision thereof lawfully depositing the same in time or savings deposits in an insured bank in Puerto Rico, the Virgin Islands, American Samoa, or Guam, respectively, shall be separately insured up to $100,000.

(5) Each official custodian referred to in paragraphs (a) (2), (3), and (4) of this section lawfully depositing such funds in demand deposits in an insured bank within the same State, District of Columbia, Commonwealth, possession or territory comprising the public unit or wherein the public unit is located, or in any form of deposit, whether time, savings or demand, in an insured bank outside such jurisdiction, shall be separately insured up to $100,000.

(6) For purposes of this paragraph (a), if the same person is an official custodian of more than one public unit, he shall be separately insured with respect to the public funds held by him for each such unit, but shall not be separately insured by virtue of holding different offices in such unit or, except as provided in paragraph (b) of this section, holding such funds for different purposes.

(b) Public bond issues. Where an officer, agent or employee of a public unit has custody of certain funds which by law or under the bond indenture are required to be paid to the holders of bonds issued by the public unit, any deposit of such funds in an insured bank shall be deemed to be a deposit by a trustee of trust funds of which the bondholders are pro rata beneficiaries, and each such beneficial

interest shall be separately insured up to $100,000.

(c) Political subdivision. The term "political subdivision" includes any subdivision of a public unit, as defined in section 3(m) of the Federal Deposit Insurance Act, or any principal department of such public unit, (1) The creation of which subdivision or department has been expressly authorized by State statute, (2) to which some functions of government have been delegated by State statute, and (3) to which funds have been allocated by statute or ordinance for its exclusive use and control. It also includes drainage, irrigation, navigation, improvement, levee, sanitary, school or power districts, and bridge or port authorities and other special districts created by State statute or compacts between the States. Excluded from the term are subordinate or nonautonomous divisions, agencies, or boards within principal departments.

[32 FR 10408, July 14, 1967, as amended at 34 FR 247, Jan. 8, 1969; 35 FR 460, Jan. 14, 1970; 39 FR 41359, Nov. 27, 1974; 45 FR 23646, Apr. 8, 1980]

§ 330.9 Joint accounts.

(a) Separate insurance coverage. Deposits owned jointly, whether as point tenants with right of survivorship, as tenants by the entireties, as tenants in common, or by husband and wife as community property, shall be insured separately from deposit accounts individually owned by the coowners.

(b) Qualifying joint accounts. A joint deposit account shall be deemed to exist, for purposes of insurance of accounts, only if each coowner has personally executed a deposit account signature card and possesses withdrawal rights. The restrictions of this paragraph shall not apply to coowners of a time certificate of deposit or to any deposit obligation evidenced by a negotiable instrument, but such a deposit must in fact be jointly owned.

(c) Failure to qualify. A deposit account owned jointly which does not qualify as a joint account for purposes of insurance of accounts shall be treated as owned by the named persons as individuals and the actual ownership interest of each such person in such account shall be added to any other

accounts individually owned by such person and insured up to $100,000 in the aggregate.

(d) Same combination of individuals. All joint deposit accounts owned by the same combination of individuals shall first be added together and insured up to $100,000 in the aggregate.

(e) Interest of each coowner. The interest of each coowner in all joint deposit accounts owned by different combinations of individuals shall then be added together and insured up to $100,000 in the aggregate.

[32 FR 10408, July 14, 1967, as amended at 33 FR 8505, June 8, 1968; 39 FR 41359, Nov. 27, 1974; 45 FR 23646, Apr. 8, 1980]

§ 330.10 Trust accounts.

All trust interests for the same beneficiary deposited in deposit accounts established pursuant to valid trust agreements created by the same settlor (grantor) shall be added together and insured up to $100,000 in the aggregate, except time and savings deposits of the same beneficiary which qualify as pension or profit-sharing plans under section 401(d) or 408(a) of the Internal Revenue Code of 1954, as amended. The vested and ascertainable interest (excluding any remainder interest) of each beneficial owner in a time or savings deposit established under either of the above sections, shall be added together and insured to an additional $100,000 maximum for each beneficial owner, notwithstanding the insurance provided in this section to other types of deposit accounts. The insurance of such trust interests shall be separate from that afforded deposit accounts of the trustee of such trust funds or the settlor or beneficiary of such trust arrangement.

[43 FR 58081, Dec. 12, 1978, as amended at 45 FR 23646, Apr. 8, 1980]

§ 330.11 Deposits evidenced by negotiable instruments.

If any insured deposit obligation of a bank be evidenced by a negotiable certificate of deposit, negotiable draft, negotiable cashier's or officer's check, negotiable certified check, or negotiable traveler's check or letter of credit, the owner of such deposit obligation

will be recognized for all purposes of claim for insured deposits to the same extent as if his name and interest were disclosed on the records of the bank provided the instrument was in fact negotiated to such owner prior to the date of the closing of the bank. Affirmative proof of such negotiation must be offered in all cases to substantiate the claim.

§ 330.12 Deposit obligations for payment of items forwarded for collection by bank acting as agent.

Where a closed bank has become obligated for the payment of items forwarded for collection by a bank acting solely as agent, the owner of such items will be recognized for all purposes of claim for insured deposits to the same extent as if his name and interest were disclosed on the records of the bank when such claim for insured deposits, if otherwise payable, has been established by the execution and delivery of prescribed forms. Such bank forwarding such items for the owners thereof will be recognized as agent for such owners for the purpose of making an assignment of the rights of such owners against the closed insured bank to the Federal Deposit Insurance Corporation and for the purpose of receiving payment on behalf of such owners.

INTERPRETATIONS

§ 330.101 Recognition of deposit ownership in custodial accounts.

(a) The opinion of the Board of Directors has been requested as to whether a fractional or percentage computation of the interests of owners of commingled funds on deposit in custodial accounts in banks insured by the Federal Deposit Insurance Corporation meets the requirements of § 330.1.

(b) Section 330.1 provides that if the name and interest of an owner of any portion of a specifically designated custodial deposit is disclosed on the records of the person in whose name the deposit is maintained and such records are maintained in good faith and in the regular course of business, such owner will be recognized for all purposes of claim for insured deposits

to the same extent as if his name and interest were disclosed on the records of the bank.

(c) The Board of Directors has concluded that, if the records of the depositor, maintained in good faith and in the regular course of business, reflect, at all times, the name and ascertainable interest of each owner in a specifically designated custodial deposit, such interest may be determined on a fractional or percentage basis. This may be accomplished in any manner which indicates that where the funds of an owner are commingled with other funds held in custody and a portion thereof is placed on deposit in one or more insured banks, his interest in a custodial deposit in any one insured bank would represent at any given time the same fractional share as his share of the total commingled funds.

PART 331-INSURANCE OF TRUST

§ 331.1

FUNDS

Claim by fiduciary bank for insured deposits of trust estates.

In the event of the closing of an insured bank for inability to meet the demands of its depositors, the claim for insured deposits made by a fiduciary bank or trust company which, in the exercise of its trust powers, had deposited trust funds therein will be determined as follows:

(a) Allocated funds of a trust estate. If trust funds of a particular trust estate are allocated by the fiduciary and deposited, the deposit with respect to such estate will be determined by ascertaining the amount of its funds allocated, deposited and remaining to the credit of the claimant as fiduciary in the closed insured bank.

(b) Interest of a trust estate in unallocated trust funds. If trust funds of a particular trust estate be mingled 1 with trust funds of other trust estates and deposited by the fiduciary bank or trust company in one or more insured banks to the credit of the depositing

'This section is not to be construed as an express or implied approval of such commingling of trust funds as may be involved in the maintaining of general trust accounts.

bank or trust company as fiduciary, without allocation of specific amounts from the particular trust estate to an account in such bank or banks, the deposit with respect to such estate in any closed insured bank will be the amount which will bear the same ratio to all unallocated funds of the estate for which the fiduciary is accountable as the entire unallocated trust funds to the credit of the fiduciary bank or trust company in the closed insured bank will bear to the entire amount of such funds so deposited by the fiduciary in all depositories. 2

(c) Claims for funds of corporate trust determined on basis of allocation. The rule stated in paragraph (b) of this section will not be applied to funds of a bank or trust company held as fiduciary under a type of trust created to facilitate the issuance, distribution, or servicing of corporate bonds, debentures, or stock issues, commonly known as corporate trusts. The claim of the fiduciary bank with respect to deposits of such funds will be determined according to allocations of the funds of particular estates to particular deposit accounts.

(d) Insured deposit of a trust estate. In arriving at the total insured deposit of a fiduciary bank or trust company with respect to any trust estate, the deposit of such estate as determined in accordance with any paragraph of this section shall be combined with that determined under any other paragraph of this section and the insured deposit shall be the total less any amount thereof in excess of $100,000, except that trust deposits of the same beneficiary which qualify as pension or profit-sharing plans under section 401(d) or section 408(a) of the Internal Rvenue Code of 1954, as amended, and which are deposited in time or savings accounts, shall be separately insured to the maximum of $100,000 as provided in § 330.10.

(e) Claims for insured deposits of a trust classified as a corporation under § 330.5(b). With respect to any claim for insured deposits made by a fiduciary bank which holds or deposits

2In determining claims under this paragraph, unallocated trust funds in the fiduciary bank will be included in the totals of such funds.

trust funds belonging to a trust which is classified as a corporation under § 330.5(b) of this chapter, beneficial ownership of such deposits shall be attributed to such trust, and not to the individual beneficiaries thereof, for the purposes of Section 7(i) of the Federal Deposit Insurance Act.

(Sec. 9, 64 Stat. 881; 12 U.S.C. 1819)

[15 FR 8644, Dec. 6, 1950, as amended at 32 FR, 10561, July 19, 1967; 35 FR 460, Jan. 14, 1970; 39 FR 41359, Nov. 27, 1974; 42 FR 10312, Feb. 22, 1977; 43 FR 58081, Dec. 12, 1978; 45 FR 23646, Apr. 8, 1980]

PART 332-POWERS INCONSISTENT WITH PURPOSES OF FEDERAL DEPOSIT INSURANCE LAW

Sec.

332.1 Inconsistent powers. 332.2 Exercise prohibited.

§ 332.1 Inconsistent powers.

A State nonmember insured bank (except a District bank) which does not have any of the powers hereinafter enumerated, or which, although it has any such power, does not exercise the same, shall not hereafter exercise, take, or assume the power: (a) To do a surety business; (b) to insure the fidelity of others; (c) to engage in insuring, guaranteeing or certifying titles to real estate; or (d) to guarantee or become surety upon the obligations of others, except as provided in § 347.3(c)(1). 1

(Secs. 6, 9, 64 Stat. 876, 881; 12 U.S.C. 1816, 1819)

[39 FR 29178, Aug. 14, 1974, as amended at 44 FR 25194, Apr. 30, 1979]

§ 332.2 Exercise prohibited.

After the effective date of this part, any State nonmember bank (except a District bank) becoming an insured bank shall not thereafter exercise any of the powers enumerated in § 332.1. (Secs. 6, 9, 64 Stat. 876, 881; 12 U.S.C. 1816, 1819)

[15 FR 8644, Dec. 6, 1950]

'The limitations prescribed in § 332.1(d) do not include acceptances, endorsements, or letters of credit made or issued in the usual course of the banking business.

act as trustee or custodian of Individual Retirement Accounts established pursuant to the Employee Retirement Income Security Act of 1974 and SelfEmployed Retirement Plans established pursuant to the Self-Employed Individuals Retirement Act of 1962 without the prior written consent of the Corporation provided: (1) The bank's duties as trustee or custodian are essentially custodial or ministerial in nature, (2) the bank is required to invest the funds from such plans only in its own time or savings deposits, and (3) the bank's acceptance of such accounts without trust powers is not contrary to State law.

[41 FR 2375, Jan. 16, 1976]

335.41 Form for registration of securities of a bank pursuant to section 12(b) or section 12(g) of the Securities Exchange Act of 1934 (Form F-1).

335.42 Form for annual report of bank (Form F-2).

335.43 Form for current report of a bank (Form F-3).

335.44 Form for quarterly report of bank (Form F-4) to be filed pursuant to § 335.4(i). 335.46 Form for registration of additional class of securities of a bank pursuant to section 12(b) or section 12(g) of the Securities Exchange Act of 1934 (Form F10). 335.47 Form for acquisition statement to be filed pursuant to § 335.4(h)(2)(i) and amendments thereto filed pursuant to § 335.4(h)(3)(i) of Part 335 (Form F-11).