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FDIC Federal Register Citations
[Federal Register: November 13, 2006 (Volume 71, Number 218)]
[Rules and Regulations]              
[Page 66098-66104]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13no06-3]                        
                                      Image of FDIC official sign
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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 328

RIN 3064-AD05
 
Advertisement of Membership

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Final rule.

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SUMMARY: The FDIC is promulgating a final rule revising its regulation
governing official FDIC signs and advertising of FDIC membership. The
final rule replaces the separate signs used by Bank Insurance Fund
(BIF) and Savings Association Insurance Fund (SAIF) members with a new
sign, or insurance logo, to be used by all insured

[[Page 66099]]

depository institutions. In addition, the final rule extends the
advertising requirements to savings associations, consolidates the
exceptions to those requirements, and restricts the use of the official
advertising statement when advertising non-deposit products. The final
rule also restructures the text in certain sections in order to make
them easier to read. Lastly, the final rule places the current
prohibition pertaining to receipt of deposits at the same teller
station or window as noninsured institutions in its own section.

DATES: The final rule will become effective on November 13, 2007.

FOR FURTHER INFORMATION CONTACT: David P. Lafleur, Policy Analyst,
(202) 898-6569, Division of Supervision and Consumer Protection (DSC);
John M. Jackwood, Acting Chief, Compliance Section, (202) 898-3991,
DSC; Kathleen G. Nagle, Supervisory Consumer Affairs Specialist, (202)
898-6541, DSC; or Richard B. Foley, Counsel, (202) 898-3784, Legal
Division, Federal Deposit Insurance Corporation, Washington, DC 20429.

SUPPLEMENTARY INFORMATION:

I. Background

    A notice of proposed rulemaking (NPR) was published in the Federal
Register at 71 FR 40440 (July 17, 2006). The public comment period
ended on September 15, 2006. The FDIC received a total of twelve
comments. Nine of the comments were from insured depository
institutions and three were from trade associations.

II. The Final Rule

A. Section 328.0--Scope

    (i) Proposed rule. Under the proposed rule, the scope provision
would be revised by the proposed rule to reflect that there would now
be one sign used by all insured depository institutions and the
advertising requirements in Sec.  328.3 would be extended to savings
associations.
    (ii) Comments. No comments were received on this aspect of the
proposed rule.
    (iii) Final rule. No changes were made to this aspect of the
proposed rule.

B. Section 328.1--Official Sign

    (i) Proposed rule. Pursuant to section 18(a) of the Federal Deposit
Insurance Act (FDI Act), as amended by section 2(c)(2) of the Federal
Deposit Insurance Reform Conforming Amendments Act of 2005, Public Law
109-173, 119 Stat. 3601-19 (FDIRCA Act), the proposed rule would revise
Sec.  328.1 to eliminate the separate official bank sign and official
savings association sign, and to display a black and white version of
the new official sign that would be used by all insured depository
institutions.
    Under the proposed rule, the official sign would be 7'' by 3'' in
size, with black lettering and gold background. The design is similar
in color scheme and layout to the current bank sign but with the
following differences: First, the language above ``FDIC'' states ``Each
depositor insured to at least $100,000,'' instead of ``Each depositor
insured to $100,000.'' The revised language more accurately reflects
the new deposit insurance coverage limits in the FDIRCA Act and the
Federal Deposit Insurance Reform Act of 2005, Public Law 109-171, title
II, subtitle B, 120 Stat. 9-21. Second, the proposed sign includes the
FDIC's internet Web site and leaves out the FDIC seal. Finally, the
full faith and credit statement required by the FDIRCA Act is in
italics on the left side of the proposed sign and is bordered by a
semi-circle of stars, a design that partially reflects the current
savings association sign.
    Section 328.1 also describes the ``symbol'' of the Corporation that
insured depository institutions could use at their option as the
official advertising statement. Under the proposed rule, the symbol
would be that portion of the proposed official sign consisting of
``FDIC'' and the two lines of smaller type above and below ``FDIC.''
    (ii) Comments. Some commenters expressed support for having one
official sign for all insured depository institutions, but one of those
commenters objected to the language ``Each depositor insured to at
least $100,000,'' arguing that the language may require changing the
official sign every five years if the insurance limit changes.
    (iii) Final rule. No changes were made to this aspect of the
proposed rule. The FDIC believes that the proposed language indicating
the minimum dollar amount of insurance coverage provides customers with
important information, despite the fact that a depositor may in some
situations have greater insurance coverage and the minimum dollar
amount of insurance coverage may increase in the future. By saying that
each depositor is insured to ``at least''--rather than ``up to''--
$100,000, the new official sign will remain accurate even if there are
future increases in insurance coverage.

C. Section 328.2--Display and Procurement of Official Sign

    (i) Proposed rule. The proposed rule would make conforming changes
to this section so that it applies to all insured depository
institutions, not just insured banks. The proposed rule also
restructures this section to make it easier to read but without making
any substantive changes.
    Part 328 uses the term ``automatic service facilities'' in some
places, and the term ``remote service facilities'' in other places,
although the two terms have the same meaning within that part. The
proposed rule uses the term ``remote service facility'' in each place
and defines that term in Sec.  328.2(a)(1)(ii) to include any automated
teller machine, cash dispensing machine, point-of-sale terminal, or
other remote electronic facility where deposits are received.
    The current Sec. Sec.  328.2 and 328.4 are virtually identical,
except that one applies to insured banks and the other applies to
insured savings associations. The key difference between these
provisions is that Sec.  328.4 has a paragraph (e) prohibiting insured
savings associations from using the official bank sign. As the new
official sign would be applicable to all insured depository
institutions, the proposed rule would combine current Sec. Sec.  328.2
and 328.4 into a new Sec.  328.2.
    As in the current Sec.  328.2, the proposed revision would allow an
insured depository institution to vary the size, color, or material of
the official sign at its expense, and to display such altered signs
within the institution at locations other than where insured deposits
are received. However, under the proposed rule, only the official sign
adhering to the specifications of Sec.  328.1 could have been displayed
where insured deposits are received. The proposed rule refers to the
FDIC's internet Web site, http://www.fdic.gov, for information on
obtaining the official sign.
    (ii) Comments. Some commenters opposed the requirement in the
proposed rule that only the official sign--i.e., the black and gold
design specified in Sec.  328.1--could be displayed at each station or
window where insured deposits are received. Those commenters maintained
that the FDIC currently allows institutions to display signs that vary
in color or material at stations or windows where insured deposits are
received.
    Some commenters noted that section 18(a)(1)(A) of the FDI Act, 12
U.S.C. 1828(a)(1)(A), requires an insured depository institution to
display a sign ``at each place of business maintained by that
institution,'' not at each station or window where insured deposits are
received. Therefore, according to those commenters, the FDIC could
simply

[[Page 66100]]

require that the official sign be displayed at each customer entrance
to an institution's office.
    Some commenters stated that they assumed the FDIC would provide
insured depository institutions, without charge, as many official signs
as they need to comply with the final rule. However, one of those
commenters suggested that current signage could be ``grandfathered,''
since providing the new signs would impose a cost on taxpayers for what
could be considered a non-substantive change.
    (iii) Final rule. The final rule retains the longstanding
requirement that the official sign be displayed at each station or
window where insured deposits are received. Requiring that signs be
displayed at each station or window where insured deposits are
received, rather than at each customer entrance to an institution's
office, is consistent with section 18(a)(1)(A) of the FDI Act.
Moreover, because depository institutions offer uninsured non-deposit
products in other parts of their premises, the requirement better
informs customers about where FDIC-insured deposits are received.\1\
---------------------------------------------------------------------------

    \1\ Insured depository institutions are required to disclose
that certain non-deposit products are not FDIC-insured, and such
products generally must be sold at physical locations distinct from
the area where retail deposits are taken. See 12 CFR part 343
(Consumer Protection in Sales of Insurance--rules applicable to
FDIC-supervised institutions) and the Interagency Policy Statement
on Retail Sales of Nondeposit Investment Products, issued on
February 15, 1994 (NDIP Policy Statement).
---------------------------------------------------------------------------

    The final rule permits an institution to display signs varying in
size, color, or material from the specifications for the official sign
in Sec.  328.1 at stations or windows where insured deposits are
received. However, in locations where display of the official sign is
required under Sec.  328.2(a), the final rule prohibits variations in
size that are smaller than the official sign. In the required
locations, signs must also use the same color for the text and symbols.
These requirements are intended to ensure that customers are able to
recognize the sign. A new sub-paragraph (2) of Sec.  328.2(a)
implements these changes, and Sec.  328.2(a)(2) of the proposed rule
has been redesignated as Sec.  328.2(a)(3). Finally, Sec. 
328.2(a)(1)(i) of the proposed rule has been revised to provide that,
in addition to those locations where the official sign must be
displayed under Sec.  328.2(a), an institution may display the official
sign in other locations at the institution.
    Like the proposed rule, the final rule will allow insured
depository institutions to obtain from the FDIC, at no charge, the
official signs they need to comply with part 328. The final rule does
not adopt the suggestion by one commenter that current signage could be
``grandfathered,'' since that would be inconsistent with section 18(a)
of the FDI Act.

D. Section 328.3--Official Advertising Statement Requirements

(1) Proposal To Extend Official Advertising Statement Requirement to
Savings Associations
    (i) Proposed rule. Section 328.3 requires insured banks to include
the official advertising statement in all their advertisements (with
certain exceptions). The basic form of the statement is ``Member of the
Federal Deposit Insurance Corporation,'' which may be shortened to
``Member FDIC.'' There is no equivalent requirement for insured savings
associations. The proposed rule would revise Sec.  328.3 to provide for
consistent treatment of banks and savings associations by requiring all
insured depository institutions to include the official advertising
statement in their advertisements.
    (ii) Comments. One commenter voiced support for this aspect of the
proposed rule. No commenters objected to it.
    (iii) Final rule. No changes were made to this aspect of the
proposed rule.
(2) Proposals To Consolidate Exceptions to the Required Use of the
Official Advertising Statement
    (i) Proposed rule. There are currently twenty exceptions to the
required use of the official advertising statement. The proposed rule
would have simplified the advertising requirements by reducing the
number of exceptions to five. The proposed rule would have done this by
limiting the applicability of Sec.  328.3 to advertisements that
specifically promote deposit products or generally promote banking
services offered by an insured depository institution. The latter would
have included advertisements that contain an institution's name and a
statement about the availability of general banking services. The term
``advertisement'' would have been defined as a commercial message, in
any medium, that is designed to attract public attention or patronage
to a product or business. By limiting the applicability of Sec.  328.3
in this way, the NPR asserted that most of the current exceptions to
the advertising requirements would become unnecessary. The exemptions
eliminated from the proposed rule would have been for: Statements and
reports of condition; bank supplies; listings in directories; and
advertisements relating to loan services, safekeeping box services,
trust services, real estate services, armored car services, service or
analysis charges, securities services, travel department business, and
savings bank life insurance.
    (ii) Comments. Some commenters found the phrase ``generally promote
banking services'' ambiguous enough to be interpreted to include
advertisements that fall within the current exceptions--e.g., the
exceptions for bank supplies, listings in directories, and
advertisements for loan and safekeeping box services. Those commenters
maintained that the advertising requirements should only apply to
advertisements promoting deposit products. One commenter suggested
clarifying the final rule by explaining that promoting only non-deposit
banking products is not ``generally promoting banking services.''
Another commenter suggested substituting the phrase ``promote non-
specific banking services'' for ``generally promoting banking
services.'' Some commenters advocated retaining the current list of
exceptions to the advertising requirements. One commenter thought that
the paragraph heading for 328.3(c)--``Use of official advertising
statement in all advertisements''--should be revised by deleting the
word ``all,'' since there will no longer be a laundry list of
exceptions.
    (iii) Final rule. In order to avoid ambiguity as to the scope of
the advertising requirements, the final rule substitutes the phrase,
``promote non-specific banking products and services,'' for the phrase,
``generally promote banking services.'' In addition, the final rule
explains that an advertisement promotes non-specific banking products
and services if it includes the name of the insured depository
institution but does not list or describe particular products or
services offered by the institution--e.g., ``Anytown Bank, offering a
full range of banking services.'' Lastly, the final rule explicitly
references the exceptions listed at Sec.  328.3(c)(1), (2), (4), (5)
and (6) of the current rule. The word ``all'' has been deleted from the
heading for Sec.  328.3(c), as suggested by one commenter. Taken
together, these revisions clarify when the advertising requirements
apply and when they do not apply. The final rule is not intended to
expand the applicability of the advertising requirements.
(3) Other Proposed Revisions
    (i) Proposed rule. The proposed rule also would make certain
clarifying, non-substantive, and conforming editorial

[[Page 66101]]

changes in Sec.  328.3. In addition, three provisions in the current
rule have not been included in the proposed rule because they address
narrow situations that rarely occur. The first provision, Sec. 
328.3(a)(2), allows the Board to grant temporary exemptions from the
advertising requirements for good cause. The second provision, Sec. 
328.3(a)(3), concerns advertising copy not including the official
advertising statement that is on hand on the date the advertising
requirements become operative. The third provision, Sec.  328.3(d),
addresses how to handle outstanding billboard advertisements that
require use of the official advertising statement.
    (ii) Comments. One commenter voiced no objection to this aspect of
the proposed rule.
    (iii) Final rule. No changes were made to this aspect of the
proposed rule.

E. Section 328.3(e)--Restrictions on Using the Official Advertising
Statement When Advertising Non-Deposit Products

    (i) Proposed rule. The NPR solicited comment on whether the final
rule should include a provision that would: (1) Prohibit use of the
official advertising statement in advertisements relating solely to
non-deposit products (NDPs) or hybrid products containing NDP and
deposit features (e.g., sweep accounts); and (2) require that the
official advertising statement be clearly segregated from information
about NDPs in advertisements containing information about both NDPs and
insured deposit products.
    (ii) Comments. Several commenters supported having a provision in
the final rule setting forth the requirements for using, not using,
and/or segregating the official advertising statement in advertisements
for NDPs only, advertisements for hybrid products, and advertisements
for both NDPs and insured deposit products. Some commenters advocated
clarification of the advertising requirements in the final rule. One
commenter recommended that the final rule clarify the advertising
requirements by providing that the official advertising statement is
not mandatory in advertisements for NDPs only or in advertisements for
hybrid products. One commenter thought the proposal is consistent with
the NDIP Policy Statement except with regard to hybrid products. That
commenter opposed the prohibition against displaying the official
advertising statement in advertisements for hybrid products only.
Another commenter asserted that the proposed provision is unnecessary,
but argued that if the FDIC acted in this area, it should do so through
a separate rulemaking.
    (iii) Final rule. The final rule includes a new provision, in Sec. 
328.3(e), restricting use of the official advertising statement when
advertising NDPs, as described above and in the NPR. The final rule
defines the term ``non-deposit product'' to include, without
limitation, insurance products, annuities, mutual funds, and
securities. The products specifically included in the definition of
non-deposit product are products that, in the FDIC's experience, have
been mistakenly viewed by customers as being FDIC-insured. Credit
products are excluded from this definition. The term ``hybrid product''
is defined as a product or service that has both deposit and non-
deposit product features--e.g., a sweep account.
    Under Sec.  328.3(e), insured depository institutions will be
prohibited from using the official advertising statement in
advertisements containing information only about NDPs or hybrid
products. In mixed advertisements, containing information about both
NDPs or hybrid products and insured deposit products, the official
advertising statement will have to be clearly segregated from
information about the NDPs or hybrid products in order to make it clear
that the statement refers only to the insured deposit products. Since
the new provision is consistent with the proposal set forth in the NPR,
the FDIC does not believe that a separate rulemaking is necessary for
this provision. Section 328.3(e) of the proposed rule has been
redesignated as Sec.  328.3(f).

F. Section 328.4--Prohibition Against Receiving Deposits at Same Teller
Station or Window as Noninsured Institution

    (i) Proposed rule. Section 328.2 currently has a provision that
prohibits banks from receiving deposits at the same teller station or
window where a noninsured institution receives deposits, except for a
remote service facility. Since this provision does not relate directly
to the display and procurement of the official sign and is significant
enough that it should be set apart in a separate section, the proposed
rule would move the provision to Sec.  328.4.
    (ii) Comments. One commenter voiced no objection to this aspect of
the proposed rule.
    (iii) Final rule. No changes were made to this aspect of the
proposed rule.

G. Effective Date

    (i) Proposed rule. The NPR also solicited comment on whether the
proposed effective date of six months after publication of the final
rule in the Federal Register would give insured depository institutions
sufficient time to adjust to the new requirements in the proposed
revision of part 328.
    (ii) Comments. Several commenters advocated a one-year transition
period. Some commenters believed that six months would not be enough
time for institutions to use their existing inventory of promotional
materials containing the current official signs and to change such
materials to comply with the requirements for the new sign. One
commenter maintained that six months might be enough time for display
of the official sign at teller windows, but at least one year should be
allowed with respect to paper supplies. One commenter thought January
17, 2007, would be appropriate for site specific advertising, such as
signs on teller windows or bank doors, and for modifying an
institution's internet pages, but felt that for changing paper
materials the effective date should be extended to January 1, 2008.
    One commenter was concerned that the effective date provision in
the preamble to the NPR would not allow institutions to implement
measures to comply with requirements of the final rule until the very
end of the transition period, because doing so earlier would violate
the current requirements in Part 328. That commenter also believed that
institutions should be allowed to use existing stocks of printed
materials until they are exhausted.
    (iii) Final rule. The final rule extends the effective date until
one year after the date when it is published in Federal Register. Such
a transition period should give institutions sufficient time to use
existing printed materials before the new requirements become
mandatory. During the transition period, between publication of the
final rule in the Federal Register and the effective date, insured
depository institutions will not be deemed in violation of the current
requirements in Part 328 if they implement measures to comply with
requirements of the final rule. Indeed, the very purpose of the
transition period is to give institutions time to implement such
measures.

III. Paperwork Reduction Act

    The final rule does not contain any ``collections of information''
within the meaning of section 3502(3) of the Paperwork Reduction Act of
1995 (44 U.S.C. 3502(3)).

IV. Regulatory Flexibility Act

    Display of the official sign is required by section 18(a) of FDI
Act, as amended by section 2(c)(2) of the FDIRCA Act. There would not
be any significant

[[Page 66102]]

compliance costs with displaying the official sign, because it would be
provided by the FDIC free of charge. Insured banks have complied with
similar advertising requirements for over seventy years without
significant expense. Although savings associations have not been
subject to such advertising requirements, many have used the official
advertising statement voluntarily. Moreover, mandatory compliance with
the advertising requirements by savings association would not entail
significant expense. Accordingly, the Board hereby certifies that the
final rule would not have a significant economic impact on a
substantial number of small entities within the meaning of the
Regulatory Flexibility Act (5 U.S.C. 601-612).

V. The Treasury and General Government Appropriations Act, 1999--
Assessment of Federal Regulations and Policies on Families

    The FDIC has determined that the final rule will not affect family
well-being within the meaning of section 654 of the Treasury and
General Government Appropriations Act, enacted as part of the Omnibus
Consolidated and Emergency Supplemental Appropriations Act of 1999
(Pub. L. 105-277, 112 Stat. 2681).

VI. Small Business Regulatory Enforcement Fairness Act

    The Office of Management and Budget has determined that the final
rule is not a ``major rule'' within the meaning of the relevant
sections of the Small Business Regulatory Enforcement Fairness Act of
1996 (``SBREFA'') (5 U.S.C. 801 et seq.). As required by SBREFA, the
FDIC will file the appropriate reports with Congress and the Government
Accountability Office so that the final rule may be reviewed.

List of Subjects in 12 CFR Part 328

    Advertising, Bank deposit insurance, Savings associations, Signs
and symbols.

0
For the reasons stated above, the Board of Directors of the Federal
Deposit Insurance Corporation hereby amends title 12, chapter III of
the Code of Federal Regulations by revising part 328 to read as
follows:

PART 328--ADVERTISEMENT OF MEMBERSHIP

Sec.
328.0 Scope.
328.1 Official sign.
328.2 Display and procurement of official sign.
328.3 Official advertising statement requirements.
328.4 Prohibition against receiving deposits at same teller station
or window as noninsured institution.

    Authority: 12 U.S.C. 1818(a), 1819 (Tenth), 1828(a).


Sec.  328.0  Scope.

    Part 328 describes the official sign of the FDIC and prescribes its
use by insured depository institutions. It also prescribes the official
advertising statement insured depository institutions must include in
their advertisements. For purposes of part 328, the term ``insured
depository institution'' includes insured branches of a foreign
depository institution. Part 328 does not apply to non-insured offices
or branches of insured depository institutions located in foreign
countries.


Sec.  328.1  Official sign.

    (a) The official sign referred to in this part shall be
7 by 3 in size, with black lettering and gold
background, and of the following design:

FDIC official teller sign
                       Click on image for larger view

    (b) The ``symbol'' of the Corporation, as used in this part, shall
be that portion of the official sign consisting of ``FDIC'' and the two
lines of smaller type above and below ``FDIC.''


Sec.  328.2  Display and procurement of official sign.

    (a) Display of official sign. Each insured depository institution
shall continuously display the official sign at each station or window
where insured deposits are usually and normally received in the
depository institution's principal place of business and in all its
branches.
    (1) Other locations--
    (i) Within the institution. In addition to locations where display
of the official sign is required under this Sec.  328.2(a), an insured
depository institution may display the official sign in other locations
at the institution.
    (ii) Other facilities. An insured depository institution may
display the official sign on or at Remote Service Facilities. If an
insured depository institution displays the official sign at a Remote
Service Facility, and if there are any noninsured institutions that
share in the Remote Service Facility, any insured depository
institution that displays the official sign must clearly show that the
sign refers only to a designated insured depository institution(s). As
used in this part, the term ``Remote Service Facility'' includes any
automated teller machine, cash dispensing machine, point-of-sale
terminal, or other remote electronic facility where deposits are
received.
    (2) Varied signs. Instead of displaying the official sign, an
insured depository institution may display signs that vary from the
official sign in size, color, or material at any location where display

[[Page 66103]]

of the official sign is required or permitted under this Sec. 
328.2(a). However, any such varied sign that is displayed in locations
where display of the official sign is required under this Sec. 
328.2(a) must not be smaller in size than the official sign and must
have the same color for the text and symbols.
    (3) Newly insured institutions. A depository institution shall
display the official sign no later than its twenty-first day of
operation as an insured depository institution, unless the institution
promptly requested the official sign from the Corporation, but did not
receive it before that date.
    (b) Procuring official sign. An insured depository institution may
procure the official sign from the Corporation for official use at no
charge. Information on obtaining the official sign is posted on the
FDIC's internet Web site, http://www.fdic.gov. Alternatively, insured

depository institutions may, at their expense, procure from commercial
suppliers signs that vary from the official sign in size, color, or
material. Any insured depository institution which has promptly
submitted a written request for an official sign to the Corporation
shall not be deemed to have violated this Sec.  328.2 by failing to
display the official sign, unless the insured depository institution
fails to display the official sign after receipt thereof.
    (c) Required changes in sign. The Corporation may require any
insured depository institution, upon at least thirty (30) days' written
notice, to change the wording of the official sign in a manner deemed
necessary for the protection of depositors or others.


Sec.  328.3  Official advertising statement requirements.

    (a) Advertisement defined. The term ``advertisement,'' as used in
this part, shall mean a commercial message, in any medium, that is
designed to attract public attention or patronage to a product or
business.
    (b) Official advertising statement. The official advertising
statement shall be in substance as follows: ``Member of the Federal
Deposit Insurance Corporation.''
    (1) Optional short title and symbol. The short title ``Member of
FDIC'' or ``Member FDIC,'' or a reproduction of the symbol of the
Corporation (as described in Sec.  328.1(b)), may be used by insured
depository institutions at their option as the official advertising
statement.
    (2) Size and print. The official advertising statement shall be of
such size and print to be clearly legible. If the symbol of the
Corporation is used as the official advertising statement, and the
symbol must be reduced to such proportions that the two lines of
smaller type above and below ``FDIC'' are indistinct and illegible,
those lines of smaller type may be blocked out or dropped.
    (c) Use of official advertising statement in advertisements--(1)
General requirement. Except as provided in Sec.  328.3(d), each insured
depository institution shall include the official advertising statement
prescribed in Sec.  328.3(b) in all advertisements that either promote
deposit products and services or promote non-specific banking products
and services offered by the institution. For purposes of this Sec. 
328.3, an advertisement promotes non-specific banking products and
services if it includes the name of the insured depository institution
but does not list or describe particular products or services offered
by the institution. An example of such an advertisement would be,
``Anytown Bank, offering a full range of banking services.''
    (2) Foreign depository institutions. When a foreign depository
institution has both insured and noninsured U.S. branches, the
depository institution must also identify which branches are insured
and which branches are not insured in all of its advertisements
requiring use of the official advertising statement.
    (3) Newly insured institutions. A depository institution shall
include the official advertising statement in its advertisements no
later than its twenty-first day of operation as an insured depository
institution.
    (d) Types of advertisements which do not require the official
advertising statement. The following types of advertisements do not
require use of the official advertising statement:
    (1) Statements of condition and reports of condition of an insured
depository institution which are required to be published by State or
Federal law;
    (2) Insured depository institution 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 insured depository institution offices
or attached to the building or buildings in which such offices are
located;
    (4) Listings in directories;
    (5) Advertisements not setting forth the name of the insured
depository institution;
    (6) Entries in a depository institution directory, provided the
name of the insured depository institution 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 depository institution
services where the names of insured depository institutions and
noninsured institutions are listed and form a part of such
advertisements;
    (8) Advertisements by radio or television, other than display
advertisements, which do not exceed thirty (30) seconds in time;
    (9) Advertisements which are of the type or character that make it
impractical to include the official advertising statement, including,
but not limited to, promotional items such as calendars, matchbooks,
pens, pencils, and key chains; and
    (10) Advertisements which contain a statement to the effect that
the depository institution is a member of the Federal Deposit Insurance
Corporation, or that the depository institution is insured by the
Federal Deposit Insurance Corporation, or that its deposits or
depositors are insured by the Federal Deposit Insurance Corporation to
at least $100,000 for each depositor.
    (e) Restrictions on using the official advertising statement when
advertising non-deposit products--(1) Definitions--
    (i) Non-deposit product. As used in this part, the term ``non-
deposit product'' shall include, but is not limited to, insurance
products, annuities, mutual funds, and securities. For purposes of this
definition, a credit product is not a non-deposit product.
    (ii) Hybrid product. As used in this part, the term ``hybrid
product'' shall mean a product or service that has both deposit product
features and non-deposit product features. A sweep account is an
example of a hybrid product.
    (2) Non-deposit product advertisements. Except as provided in Sec. 
328.3(e)(4), an insured depository institution shall not include the
official advertising statement, or any other statement or symbol which
implies or suggests the existence of Federal deposit insurance, in any
advertisement relating solely to non-deposit products.
    (3) Hybrid product advertisements. Except as provided in Sec. 
328.3(e)(4), an insured depository institution shall not include the
official advertising statement, or any other statement or symbol which
implies or suggests the existence of federal deposit insurance, in any
advertisement relating solely to hybrid products.
    (4) Mixed advertisements. In advertisements containing information
about both insured deposit products and non-deposit products or hybrid

[[Page 66104]]

products, an insured depository institution shall clearly segregate the
official advertising statement or any similar statement from that
portion of the advertisement that relates to the non-deposit products.
    (f) 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.


Sec.  328.4  Prohibition against receiving deposits at same teller
station or window as noninsured institution.

    (a) Prohibition. An insured depository institution may not receive
deposits at any teller station or window where any noninsured
institution receives deposits or similar liabilities.
    (b) Exception. This Sec.  328.4 does not apply to deposits received
at a Remote Service Facility.

    By order of the Board of Directors.

    Dated at Washington, DC, this 2nd day of November, 2006.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
 [FR Doc. E6-18802 Filed 11-9-06; 8:45 am]

BILLING CODE 6714-01-P



Last Updated 12/01/2006 Regs@fdic.gov