Each depositor insured to at least $250,000 per insured bank

Prepaid Assessment Credit Transfers

1. Transfer of Prepaid Assessment Credits between Open Insured Institutions
   Institutions can transfer their prepaid assessments if they wish to do so. Transfer transactions involve two steps by both the buyer and the seller. Both parties must submit transfer agreement documentation to the FDIC and the seller must enter and the buyer must accept the transfer transaction in FDICconnect.
   
   
   
   1. Transfer Agreement Documentation
      An insured depository institution will be permitted to transfer any portion of its prepaid assessment to another insured depository institution, provided that the institutions involved notify the FDIC’s Division of Finance (DOF) and submit a written agreement signed by the legal representatives of the institutions. In their submission to the FDIC, the institutions must include documentation that each representative has the legal authority to bind the institution. Once documentation is received and reviewed by DOF; it is forwarded to the FDIC Legal Division for approval. Once approval of the transfer is received from FDIC Legal, DOF personnel will approve and notify the institutions of the transfer.
      
      Invoices are published in March, June, September, and December. Transfer documents must be received and FDICconnect entries must be made on or before the 5th day of the publishing month in order to appear on that month’s invoice.  If the 5th falls on a Saturday, Sunday, or Federal Holiday, the closing date to submit documents and make entries in FDICconnect is the previous business day.
   
   

Please mail, email, or fax transfer agreements to the following:

Mail:
Federal Deposit Insurance Corporation
Assessments Policy Manager
3501 N. Fairfax Drive, Room E-5094
Arlington, VA 22226

Email:
assessments@fdic.gov
If you are emailing the documents, please send PDF copies. Originals are not required.

Fax: 703-562-2534

2. Entering a Credit Transfer in FDICConnect:.
   Both the buyer and seller should have their FDICconnect Coordinator, or authorized user with access to the Assessment Actions transaction, enter the particulars of the credit transfer in FDICconnect. Once the selling institution enters the credit transfer, the buying institution can accept the transfer. The coordinators and/or users would take the following steps:

   Go to FDICconnect at: https://www2.fdicconnect.gov
   Sign-in
   Press Continue
   At the Business Center Menu –
   Select Deposit Insurance Assessment
   Select Assessment Actions
   Select Transfer Assessment Credit
   Click on Transfer To (if selling); Click on Receive From (if buying)
   Follow the on screen instructions (click the red HELP button at the center top of the screen for more detailed instructions)
   

2. Transfer of Prepaid Assessment Credits in a Merger
   If your institution merged with another institution that had prepaid assessment credits, any remaining prepaid assessment credit balance belonging to the outgoing institution will be transferred by DOF personnel to the surviving institution. Any prepaid assessment credit balance remaining after payment of the outgoing institution’s final invoice will be transferred to the surviving institution at the start of the quarter following the merger. (Payment of the outgoing institution's final invoice is the responsibility of the surviving institution; please see the Mergers & Acquisitions section.) If you have questions about the transfer process, please contact the Assessments Section at 1-800-759-6596, Option 2, and have the details of the transaction (institution names, FDIC Certificate Numbers, and merger date) readily available. Please note, in a merger, the charter is not retained by the outgoing institution.
   
   
3. Prepaid Assessment Credits belonging to a Failed Institution
   If your institution acquired a failed institution that had prepaid assessment credits, your institution is prohibited by law from acquiring those prepaid assessment credits. In accordance with Section 327.12, any remaining prepaid assessment credit balance is returned to the receivership.



4. Refund of Prepaid Assessment Credits in the case of a Voluntary Liquidation
   Per Section 327.12(h):  “In the event that an insured depository institution's insured status terminates, any amount of its prepaid assessment remaining (other than any amounts needed to satisfy its assessment obligations not yet offset against the prepaid amount) will be refunded to the institution, subject to the provisions of § 327.6 of subpart A." For example, if an institution voluntarily liquidates on November 15th, the institution would owe its December invoice (which is payment for the third quarter, July 1 - September 30) plus a pro-rata assessment for October 1st through November 15th.  Any remaining prepaid credit balance after the final invoice plus pro-rata assessment are paid is returned to the voluntarily liquidated institution.  The institution, or its legal representatives, should contact the Assessments Section at 1-800-759-6596, Option 2, or email assessments@fdic.gov, to arrange for the final payment and the refund of the remaining prepaid credit. Please note, in a voluntary liquidation, the charter is retained by the institution whose insured status is voluntarily terminated.



5. Prepaid Assessment Credits and Branch Sales
   Any redistribution or transfer of prepaid assessment credits is solely between the buyer and seller in a branch sale. The parties might wish to: (1) transfer credits using FDICconnect as noted in Section A above; (2) factor in the credit amount when determining the sale price; or (3) choose not to redistribute or transfer credits since any unused credit balances will be refunded on the invoice billing for the first quarter of 2013 (payment date Friday, June 28, 2013).