FDIC Seeks Comments on Proposed Notification of Changes of Insured Status
The FDIC Board of Directors proposed amendments on April 29,
1997, to 12 CFR Part 307, regarding notification of changes of
insured status. The amendments, which are being proposed as part
of the FDIC's ongoing review of regulations, are intended to
clarify the scope and applicability of the FDIC's existing
regulation. The proposed amendments also are designed to assist
the industry with compliance. The FDIC will accept comments on
the proposed rule through July 14, 1997.
The proposed amendments would:
Require all insured depository institutions
assuming deposits of another insured depository
institution, other than where the deposits are
being assumed from an institution for which the
FDIC is acting as receiver, to provide the FDIC
with a certification of the partial or total
assumption of the transferring institution's
deposits within 30 calendar days after the
assumption takes effect.
Clarify the extent of deposit insurance coverage
on deposits assumed by an insured depository
institution and the circumstances under which the
insured status of a transferring institution will
Provide for prior review and approval by FDIC of
proposed depositor notification letters when an
insured depository institution seeks to
voluntarily terminate its insured status without
having another insured depository institution
assume its deposits.
Provide sample certification and depositor
notification letters to facilitate compliance with
the proposed amended rule.
The proposed rule is attached. For more information about the
proposal, please contact William P. McNamara, Examination
Specialist in the FDIC's Division of Supervision, at (202) 898-6778, or Rodney D. Ray, Counsel in the FDIC's Legal Division, at
Distribution: All Insured Banks and Savings Associations
Note: Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center, 801 17th
Street, NW, Room 100, Washington, DC 20434 ((703) 562-2200 or 800-276-6003).