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

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2000 - Rules and Regulations


PART 357—DETERMINATION OF ECONOMICALLY DEPRESSED REGIONS

AUTHORITY:  12 U.S.C. 1819, 1823(k)(5).

SOURCE:  The provisions of this Part 357 appear at 55 Fed. Reg. 11161, March 27, 1990, except as otherwise noted.

§ 357.1 Economically depressed regions.

(a)  Purpose.  Section 13(k)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1823(k)(5)) provides that the FDIC shall consider proposals for financial assistance for eligible insured savings associations before grounds exist for appointment of a conservator or receiver for such member. One of the criteria for eligibility is that an institution's offices are located in an economically depressed region as determined by the FDIC.

(b)  Economically depressed regions.(1) For the purpose of determining ``economically depressed regions'', the FDIC will determine whether an institution qualifies as being located in an ``economically depressed region'' on a case-by-case basis. That determination will be based on four criteria:

(i)  High unemployment rates;

(ii)  Significant declines in non-farm employment;

(iii)  High delinquency rates of real estate assets at insured depository institutions; and

(iv)  Evidence indicating declining real estate values.

(2)  In addition, the FDIC will also consider relevant information from institutions regarding their geographic market area, as well as information on whether that market is ``economically depressed''.

[Codified to 12 C.F.R. § 357.1]

[Section 357.1 amended at 63 Fed. Reg. 10295, March 3, 1998, effective April 2, 1998; 71 Fed. Reg. 20527, April 21, 2006]


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