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1000
- Federal Deposit Insurance Act
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SEC. 7 (a)(1) Each
insured State nonmember bank and each foreign bank having an
insured branch which is not a Federal branch shall make to the
Corporation reports of condition which shall be in such form and
shall contain such information as the Board of Directors may
require. Such reports shall be made to the Corporation on the
dates selected as provided in paragraph (3) of this subsection and
the deposit liabilities shall be reported therein in accordance
with and pursuant to paragraphs (4) and (5) of this subsection.
The Board of Directors may call for additional reports of
condition on dates to be fixed by it and may call for such other
reports as the Board may from time to time require. Any such bank
which (A) maintains procedures reasonably adapted to avoid any
inadvertent error and, unintentionally and as a result of such an
error, fails to make or publish any report required under this
paragraph, within the period of time specified by the Corporation,
or submits or publishes any false or misleading report or
information, or (B) inadvertently transmits or publishes any
report which is minimally late, shall be subject to a penalty of
not more than $2,000 for each day during which such failure
continues or such false or misleading information is not
corrected. Such bank shall have the burden of proving that an
error was inadvertent and that a report was inadvertently
transmitted or published late. Any such bank which fails to make
or publish any report required under this paragraph, within the
period of time specified by the Corporation, or submits or
publishes any false or misleading report or information, in a
manner not described in the 2nd preceding sentence shall be
subject to a penalty of not more than $20,000 for each day during
which such failure continues or such false or misleading
information is not corrected. Notwithstanding the preceding
sentence, if any such bank knowingly or with reckless disregard
for the accuracy of any information or report described in such
sentence submits or publishes any false or misleading report or
information, the Corporation may assess a penalty of not more than
$1,000,000 or 1 percent of total assets of such bank, whichever is
less, per day for each day during which such failure continues or
such false or misleading information is not corrected. Any penalty
imposed under any of the 4 preceding sentences shall be assessed
and collected by the Corporation in the manner provided in
subparagraphs (E), (F), (G), and (I) of section 8(i)(2) (for
penalties imposed under such section) and any such assessment
(including the determination of the amount of the penalty) shall
be subject to the provisions of such section. Any such bank
against which any penalty is assessed under this subsection shall
be afforded an agency hearing if such bank submits a request for
such hearing within 20 days after the issuance of the notice of
assessment. Section 8(h) shall apply to any proceeding under this
paragraph.
(2)(A) The
Corporation and, with respect to any State depository
instititution, any appropriate State bank supervisor for such
institution, shall have access to reports of examination made by,
and reports of condition made to, the Comptroller of the Currency,
the Director of the Office of Thrift Supervision, the Federal
Housing Finance Board, any Federal home loan bank, or any Federal
Reserve bank and to all revisions of reports of condition made to
any of them, and they shall promptly advise the Corporation of any
revisions or changes in respect to deposit liabilities made or
required to be made in any report of condition. The Corporation
may accept any report made by or to any commission, board, or
authority having supervision of a depository institution, and may
furnish to the Comptroller of the Currency, the Director of the
Office of Thrift Supervision, the Federal Housing Finance Board,
any Federal home loan bank, to any Federal Reserve bank, and to
any such commission, board, or authority, reports of examinations
made on behalf of, and reports of condition made to, the
Corporation.
(B) ADDITIONAL
REPORTS.--The Board of Directors may from time to time require any
insured depository institution to file such additional reports as
the Corporation, after agreement with the Comptroller of the
Currency, the Board of Governors of the Federal Reserve System,
and the Director of the Office of Thrift Supervision, as
appropriate, may deem advisable for insurance purposes.
(C) DATA
SHARING WITH OTHER AGENCIES AND PERSONS.--In addition to reports
of examination, reports of condition, and other reports required
to be regularly provided to the Corporation (with respect to all
insured depository institutions, including a depository
institution for which the Corporation has been appointed
conservator or receiver) or an appropriate State bank supervisor
(with respect to a State depository institution) under
subparagraph (A) or (B), a Federal banking agency may, in the
discretion of the agency,
{{12-29-06
p.1112}}furnish
any report of examination or other confidential supervisory
information concerning any depository institution or other entity
examined by such agency under authority of any Federal law, to--
(i) any other
Federal or State agency or authority with supervisory or
regulatory authority over the depository institution or other
entity;
(ii) any
officer, director, or receiver of such depository institution or
entity; and
(iii) any
other person that the Federal banking agency determines to be
appropriate.
(3) Each
insured depository institution shall make to the appropriate
Federal banking agency 4 reports of condition annually upon dates
which shall be selected by the Chairman of the Board of Directors,
the Comptroller of the Currency, the Chairman of the Board of
Governors of the Federal Reserve System, and the Director of the
Office of Thrift Supervision. The dates selected shall be the same
for all insured depository institutions, except that when any of
said reporting dates is a nonbusiness day for any depository
institution, the preceding business day shall be its reporting
date. Such reports of condition shall be the basis for the
certified statements to be filed pursuant to subsection (c). The
deposit liabilities shall be reported in said reports of condition
in accordance with and pursuant to paragraphs (4) and (5) of this
subsection, and such other information shall be reported therein
as may be required by the respective agencies. Each said report of
condition shall contain a declaration by the president, a vice
president, the cashier or the treasurer, or by any other officer
designated by the board of directors or trustees of the reporting
depository institution to make such declaration, that the report
is true and correct to the best of his knowledge and belief. The
correctness of said report of conditions shall be attested by the
signatures of at least two directors or trustees of the reporting
depository institution other than the officer making such
declaration, with a declaration that the report has been examined
by them and to the best of their knowledge and belief is true and
correct. At the time of making said reports of condition each
insured depository institution shall furnish to the Corporation a
copy thereof containing such signed declaration and attestations.
Nothing herein shall preclude any of the foregoing agencies from
requiring the banks or savings associations under its jurisdiction
to make additional reports of condition at any time.
(4) In
the reports of condition required to be made by paragraph (3) of
this subsection, each insured depository institution shall report
the total amount of the liability of the depository institution
for deposits in the main office and in any branch located in any
State of the United States, the District of Columbia, any
Territory of the United States, Puerto Rico, Guam, American Samoa,
the Trust Territory of the Pacific Islands, or the Virgin Islands,
according to the definition of the term "deposit" in and
pursuant to subsection (1) of section 3 of this Act, without any
deduction for indebtedness of depositors or creditors or any
deduction for cash items in the process of collection drawn on
others than the reporting depository institution: Provided,
That
the depository institution in reporting such deposits may (i)
subtract from the deposit balance due to any depository
institution the deposit balance due from the same depository
institution (other than trust funds deposited by either depository
institution) and any cash items in the process of collection due
from or due to such depository institutions shall be included in
determining such net balance, except that balances of time
deposits of any depository institution and any balances standing
to the credit of private depository institutions, of depository
institutions in foreign countries, of foreign branches of other
American depository institutions, and of American branches of
foreign depository institutions shall be reported gross without
any such subtraction, and (ii) exclude any deposits received in
any office of the depository institution for deposit in any other
office of the depository institution: And
provided further, That
outstanding drafts (including advices and authorizations to charge
depository institution's balance in another bank) drawn in the
regular course of business by the reporting depository institution
on depository institutions need not be reported as deposit
liabilities. The amount of trust funds held in the depository
institution's own trust department, which the reporting depository
institution keeps segregated and apart from its general assets and
does not use in the conduct of its business, shall not be included
in the total deposits in such reports, but shall be separately
stated in such reports. Deposits which are accumulated for the
payment of personal loans and are assigned or pledged to assure
payment of loans at maturity shall not be included in the total
deposits in such reports, but shall be deducted from the loans for
which such deposits are assigned or pledged to assure repayment.
{{12-29-06
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(5) The deposits to be
reported on such reports of condition shall be segregated between
(i) time and savings deposits and (ii) demand deposits. For this
purpose, the time and savings deposits shall consist of time
certificates of deposit, time deposits-open account and savings
deposits; and demand deposits shall consist of all deposits other
than time and saving deposits.
(6) LIFELINE
ACCOUNT DEPOSITS.--In the reports of condition required to be
reported under this subsection, the deposits in lifeline accounts
(as defined in section
232(a)(3)(C)
of the Bank Enterprise Act of 1991) shall be reported separately.
(7) The Board of
Directors, after consultation with the Comptroller of the
Currency, the Director of the Office of Thrift Supervision, and
the Board of Governors of the Federal Reserve System, may by
regulation define the terms "cash items" and "process
of collection", and shall classify deposits as "time",
"savings", and "demand" deposits, for the
purposes of this section.
(8) In
respect of any report required or authorized to be supplied or
published pursuant to this subsection or any other provision of
law, the Board of Directors or the Comptroller of the Currency, as
the case may be, may differentiate between domestic banks and
foreign banks to such extent as, in their judgment, may be
reasonably required to avoid hardship and can be done without
substantial compromise of insurance risk or supervisory and
regulatory effectiveness.
(9) DATA
COLLECTIONS.--In addition to or in connnection with any other
report required under this subsection, the Corporation shall take
such action as may be necessary to ensure that--
(A) each
insured depository institution maintains; and
(B) the
Corporation receives on a regular basis from such institution,
information on the total amount of all insured deposits,
preferred deposits, and uninsured deposits at the institution.
In
prescribing reporting and other requirements for the collection of
actual and accurate information pursuant to this paragraph, the
Corporation shall minimize the regulatory burden imposed upon
insured depository institutions that are well capitalized (as
defined in section
38)
while taking into account the benefit of the information to the
Corporation, including the use of the information to enable the
Corporation to more accurately determine the total amount of
insured deposits in each insured depository institution for
purposes of compliance with this Act.
(10) A
Federal banking agency may not, by regulation or otherwise,
designate, or require an insured institution or an affiliate to
designate, a corporation as highly leveraged or a transaction with
a corporation as a highly leveraged transaction solely because
such corporation is or has been a debtor or bankrupt under title
11, United States Code, if, after confirmation of a plan of
reorganization, such corporation would not otherwise be highly
leveraged.
(11) STREAMLINING
REPORTS OF CONDITION.--
(A) REVIEW
OF INFORMATION AND SCHEDULES.--Before the end of the 1-year period
beginning on the date of enactment of the Financial Services
Regulatory Relief Act of 2006 and before the end of each 5-year
period thereafter, each Federal banking agency shall, in
conjunction with the other relevant Federal banking agencies,
review the information and schedules that are required to be filed
by an insured depository institution in a report of condition
required under paragraph (3).
(B) Reduction
or elimination of information found to be unnecessary.--After
completing the review required by subparagraph (A), a Federal
banking agency, in conjunction with the other relevant Federal
banking agencies, shall reduce or eliminate any requirement to
file information or schedules under paragraph (3) (other than
information or schedules that are otherwise required by law) if
the agency determines that the continued collection of such
information or schedules is no longer necessary or appropriate.
[Codified
to 12 U.S.C. 1817(a)]
[Source:
Section 2[7(a)] of the Act of September 21, 1950 (Pub. L. No. 797;
64 Stat. 876), effective September 21, 1950, as amended by section
2 of the Act of July 14, 1960 (Pub. L. No. 86--671; 74 Stat. 547),
effective January 1, 1961; section 910(g) of title IX of the Act
of December 31, 1970 (Pub. L. No. 91--609; 84 Stat. 1812),
effective December 31, 1970; {{12-29-06
p.1114}}sections
6(c)(8), (9), and (10) of the Act of September 17, 1978 (Pub. L.
No. 95--369; 92 Stat. 617), effective September 17, 1978; sections
302 and 310(a) and (b) of title III of the Act of November 10,
1978 (Pub. L. No. 95--630; 92 Stat. 3676 and 3678), effective
March 10, 1979; section 103 of title I of the Act of December 26,
1981 (Pub. L. No. 97--110; 95 Stat. 1514), effective December 26,
1981; sections 113(d), (e) and (f) of title I of the Act of
October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1473), effective
October 15, 1982; sections 201(a) and (b) and 208(1)--(3) of title
II and sections 911(c) and 931(a) of title IX of the Act of August
9, 1989 (Pub. L. No. 101--73; 103 Stat. 187--188, 206--207, 479
and 493, respectively), effective August 9, 1989; section 141(c)
of title I, section 232(b)(1) of title II, section 302(e)(2) of
title III, and section 474 of title IV of the Act of December 19,
1991 (Pub. L. No. 102--242; 105 Stat. 2277, 2310, 2349, and 2386,
respectively), effective December 19, 1991; section 1606(i)(1) of
title XVI of the Act of October 28, 1992 (Pub. L. No. 102--550;
106 Stat. 4089), effective December 19, 1991; section 303(b)(1) of
title III of the Act of October 28, 1992 (Pub. L. No. 102--558;
106 Stat. 4224), effective March 1, 1992; sections 305(b), 308(b),
and 348 of title III and section 602(a)(4) of title VI of the Act
of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2217, 2218,
2241 and 2288, respectively), effective September 23, 1994;
section 8(a)(2) of the Act of October 30, 2004 (Pub. L. No.
108-386; 118 Stat. 2231), effective October 30, 2004; Section
3(a)(1) of the Act of February 15, 2006 (Pub. L. No. 100--173; 119
Stat. 3605), effective date shall take effect on the date that the
final regulations required under section 2109(a)(5) of the Federal
Deposit Insurance Reform Act of 2005 take effect; section 604 of
title VI and section 707(a) of title VII of the Act of October 13,
2006 (Pub. L. No. 109--351; 120 Stat. 1980 and 1987]
(b) ASSESSMENTS.--
(1) RISK-BASED ASSESSMENT
SYSTEM.--
(A) RISK-BASED
ASSESSMENT SYSTEM REQUIRED.--The Board of Directors shall, by
regulation, establish a risk-based assessment system for insured
depository institutions.
(B) PRIVATE
REINSURANCE AUTHORIZED.--In carrying out this paragraph, the
Corporation may--
(i) obtain
private reinsurance covering not more than 10 percent of any loss
the Corporation incurs with respect to an insured depository
institution; and
(ii) base
that institution's assessment (in whole or in part) on the cost of
the reinsurance.
(C) RISK-BASED
ASSESSMENT SYSTEM DEFINED.--For purposes of this paragraph, the
term "risk-based assessment system" means a system for
calculating a depository institution's assessment based on--
(i) the
probability that the Deposit Insurance Fund will incur a loss with
respect to the institution, taking into consideration the risks
attributable to--
(I) different
categories and concentrations of assets;
(II) different
categories and concentrations of liabilities, both insured and
uninsured, contingent and noncontingent; and
(III) any
other factors the Corporation determines are relevant to assessing
such probability;
(ii) the
likely amount of any such loss; and
(iii) the
revenue needs of the Deposit Insurance Fund.
(D) SEPARATE
ASSESSMENT SYSTEMS.--The Board of Directors may establish separate
risk-based assessment systems for large and small members of the
Deposit Insurance Fund.
(E) Information
concerning risk of loss and economic conditions.--
(i) SOURCES
OF INFORMATION. -- For purposes of determining risk of
losses at insured depository institutions and economic conditions
generally affecting depository institutions, the Corporation shall
collect information, as appropriate, from all sources the Board of
Directors considers appropriate, such as reports of condition,
inspection reports, and other information from all Federal banking
agencies, any information available from State bank supervisors,
State insurance and securities regulators, the Securities and
Exchange Commission (including information described in section
35), the Secretary of the Treasury, the Commodity Futures Trading
Commission, the Farm Credit Administration, the Federal Trade
Commission, any Federal reserve bank or Federal home loan bank,
and other
{{12-29-06
p.1114.01}}regulators
of financial institutions, and any information available from
credit rating entities, and other private economic or business
analysts.
(ii) CONSULTATION
WITH FEDERAL BANKING AGENCIES. --
(I) IN
GENERAL. -- Except as provided in subclause (II), in
assessing the risk of loss to the Deposit Insurance Fund with
respect to any insured depository institution, the Corporation
shall consult with the appropriate Federal banking agency of such
institution.
(II) TREATMENT
ON AGGREGATE BASIS. -- In the case of insured depository
institutions that are well capitalized (as defined in section 38)
and, in the most recent examination, were found to be well
managed, the consultation under subclause (I) concerning the
assessment of the risk of loss posed by such institutions may be
made on an aggregate basis.
(iii) RULE
OF CONSTRUCTION.--No provision of this paragraph shall be
construed as providing any new authority for the Corporation to
require submission of information by insured depository
institutions to the Corporation.
{{4-28-06
p.1115}}
(F) Modifications
to the risk-based assessment system allowed only after notice and
comment.--In revising or modifying the risk-based assessment
system at any time after the date of the enactment of the Federal
Deposit Insurance Reform Act of 2005, the Board of Directors may
implement such revisions or modification in final form only after
notice and opportunity for comment.
(2) SETTING
ASSESSMENTS.--
(A) IN
GENERAL.--The Board of Directors shall set assessments for insured
depository institutions in such amounts as the Board of Directors
may determine to be necessary or appropriate, subject to
subparagraph (D).
(B) FACTORS
TO BE CONSIDERED.--In setting assessments under subparagraph (A),
the Board of Directors shall consider the following factors:
(i) The
estimated operating expenses of the Deposit Insurance Fund.
(ii) The
estimated case resolution expenses and income of the Deposit
Insurance Fund.
(iii) The
projected effects of the payment of assessments on the capital and
earnings of insured depository institutions.
(iv) The
risk factors and other factors taken into account pursuant to
paragraph (1) under the risk-based assessment system, including
the requirement under such paragraph to maintain a risk-based
system.
(v) Any
other factors the Board of Directors may determine to be
appropriate.
(C) NOTICE
OF ASSESSMENTS.--The Corporation shall notify each insured
depository institution of that institution's assessment.
(D) NO
DISCRIMINATION BASED ON SIZE.--No insured depository institution
shall be barred from the lowest-risk category solely because of
size.
(E) BANK
ENTERPRISE ACT REQUIREMENT.--The Corporation shall design the
risk-based assessment system so that, insofar as the system bases
assessments, directly or indirectly, on deposits, the portion of
the deposits of any insured depository institution which are
attributable to lifeline accounts established in accordance with
the Bank Enterprise Act of 1991 shall be subject to assessment at
a rate determined in accordance with such Act.
(3) DESIGNATED RESERVE
RATIO.--
(A) ESTABLISHMENT.--
(i) IN
GENERAL.--Before the beginning of each calendar year, the Board of
Directors shall designate the reserve ratio applicable with
respect to the Deposit Insurance Fund and publish the reserve
ratio so designated.
(ii) RULEMAKING
REQUIREMENT.--Any change to the designated reserve ratio shall be
made by the Board of Directors by regulation after notice and
opportunity for comment.
(B) RANGE.--The
reserve ratio designated by the Board of Directors for any year.--
(i) may
not exceed 1.5 percent of estimated insured deposits; and
(ii) may
not be less than 1.15 percent of estimated insured deposits.
(C) FACTORS.--In
designating a reserve ratio for any year, the Board of Directors
shall--
(i) take
into account the risk of losses to the Deposit Insurance Fund in
such year and future years, including historic experience and
potential and estimated losses from insured depository
institution;
(ii) take
into account economic conditions generally affecting insured
depository institutions so as to allow the designated reserve
ratio to increase during more favorable economic conditions and to
decrease during less favorable economic conditions,
notwithstanding the increased risks of loss that may exist during
such less favorable conditions, as determined to be appropriate by
the Board of Directors;
(iii) seek
to prevent sharp swings in the assessment rates for insured
depository institutions; and
(iv) take
into account such other factors as the Board of Directors may
determine to be appropriate, consistent with the requirements of
this subparagraph.
(D) PUBLICATION
OF PROPOSED CHANGE IN RATIOS.--In soliciting comment on any
proposed change in the designated reserve ratio in accordance with
subparagraph (A), the
{{4-28-06
p.1116}}Board
of Directors shall include in the published proposal a thorough
anaylsis of the data and projections on which the proposal is
based.
(E) DIF
RESTORATION PLANS.--
(i) IN
GENERAL.--Whenever--
(I) the
Corporaiton projects that the reserve ratio of the Deposit
Insurance Fund will, within 6 months of such determination, fall
below the minimum amount specified in subparagraph (B)(ii) for the
designated reserve ratio; or
(II) the
reserve ratio of the Deposit Insurance Fund actually falls below
the minimum amount specified in subparagraph (B)(ii) for the
designated reserve ratio without any determination under subclause
(I) having been made, the Corporation shall establish and
implement a Deposit Insurance Fund restroation plan within 90 days
that meets the requirements of clause (ii) and such other
conditions as the Corporation determines to be appropriate.
(ii) REQUIREMENTS
OF RESTORATION PLAN.--A Deposit Insurance Fund restoration plan
meets the requirements of this clause if the plan provides that
the reserve ratio of the Fund will meet or exceed the minimum
amount specified in subparagraph (B)(ii) for the designated
reserve ratio before the end of the 5-year period beginning upon
the implementation of the plan (or such longer period as the
Corporation may determine to be necessary due to extraordinary
circumstances).
(iii) RESTRICTION
ON ASSESSMENT CREDITS.--As part of any restoration plan under this
subparagraph, the Corporation may elect to restrict the
application of assessment credits provided under subsection (e)(3)
for any period that the plan is in effect.
(iv) LIMITATION
ON RESTRICTION.--Notwithstanding clause (iii), while any
restoration plan under this subparagraph is in effect, the
Corporation shall apply credits provided to an insured depository
institution under subsection (e)(3) against any assessment imposed
on the institution for any assessment period in an amount equal to
the lesser of--
(I) the
amount of the assessment; or
(II) the
amount equal to 3 basis points of the institution's assessment
base.
(v) TRANSPARENCY.--Not
more than 30 days after the Corporation establishes and implements
a restoration plan under clause (i), the Corporation shall publish
in the Federal Register a detailed analysis of the factors
considered and the basis for the actions taken with regard to the
plan.
(4) Depository
institution required to maintain assessment-related records.--Each
insured depository institution shall maintain all records that the
Corporation may require for verifying the correctness of any
assessment on the insured depository institution under this
subsection until the later of--
(A) the
end of the 3-year period beginning on the due date of the
assessment; or
(B) in
the case of a dispute between the insured depository institution
and the Corporation with respect to such assessment, the date of a
final determination of any such dispute.
(5) Emergency
special assessments.--In addition to the other assessments imposed
on insured depository institutions under this subsection, the
Corporation may impose 1 or more special assessments on insured
depository institutions in an amount determined by the Corporation
if the amount of any such assessment is necessary--
(A) to
provide sufficient assessment income to repay amounts borrowed
from the Secretary of the Treasury under section
14(a)
in accordance with the repayment schedule in effect under section
14(c) during the period with respect to which such assessment is
imposed;
(B) to
provide sufficient assessment income to repay obligations issued
to and other amounts borrowed from insured depository institutions
under section 14(d); or
{{4-28-06
p.1117}}
(C) for any
other purpose that the Corporation may deem necessary.
(6) COMMUNITY ENTERPRISE
CREDITS.--The Corporation shall allow a credit against any
assessment to any insured depository institution which satisfies
the requirements of the Community Enterprise Assessment Credit
Board under section
233(a)(1)
of the Bank Enterprise Act of 1991 in the amount determined by
such Board by regulation.
[Codified
to 12 U.S.C. 1817(b)]
[Source: Section
2[7(b)] of the Act of September 21, 1950 (Pub. L. No. 797; 64
Stat. 877), effective September 21, 1950, as amended by section 2
of the Act of July 14, 1960 (Pub. L. No. 86--671; 74 Stat. 548),
effective January 1, 1961; section 910(h) of title IX of the Act
of December 31, 1970 (Pub. L. No. 91--609; 84 Stat. 1812),
effective December 31, 1970; section 6(c)(11) of the Act of
September 17, 1978 (Pub. L. No. 95--369; 92 Stat. 617), effective
September 17, 1978; section 310(c) of title III of the Act of
November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3678), effective
March 10, 1979; section 103 of title I of the Act of December 26,
1981 (Pub. L. No. 97--110; 95 Stat. 1514), effective December 26,
1981; section 505(a) of title V of the Act of August 10, 1987
(Pub. L. No. 100--86; 101 Stat. 633), effective August 10, 1987;
sections 201(a) and 208(4) and (6) of title II of the Act of
August 9, 1989 (Pub. L. No. 101--73; 102 Stat. 187 and 212,
respectively), effective August 9, 1989; sections 2002, 2003(a)
and (b), and 2004 of title II of the Act of November 5, 1990 (Pub.
L. No. 101--508), effective November 5, 1990; sections 103(b),
104, and 113(c) of title I and sections 232(b)(2) and 232(b)(3) of
title II of the Act of December 19, 1991 (Pub. L. No. 102--242;
105 Stat. 2238, 2239, 2247, and 2310, respectively), effective
December 19, 1991; section 302(a) of title III of the Act of
December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2345),
effective the earlier of-- 1) 180 days after the date on which
final regulations promulgated in accordance with section 302(c) of
the Act become effective; or 2) January 1, 1994, and section
311(a)(2) of title III of the Act of December 19, 1991 (Pub. L.
No. 102--242; 105 Stat. 2363), effective December 19, 1991;
sections 931(a)--(b) and 1603(a)(1) of titles IX and XVI of the
Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 3888 and
4078), effective December 19, 1991; sections 303(a)(2), 303(b)(7)
and 303(b)(8) of title III of the Act of October 28, 1992 (Pub. L.
No. 102--558; 106 Stat. 4224, 4225), effective March 1, 1992;
section 8(h) of the Act of December 17, 1993 (Pub. L. No.
103--204; 107 Stat. 2388), effective January 1, 1994; section
602(a)(5) of title VI of the Act of September 23, 1994 (Pub. L.
No. 103--325; 108 Stat. 2288), effective September 23, 1994;
sections 2703(b), 2707 and 2708 of title II of the Act of
September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--486,
3009--496 and 3009--497, respectively), effective September 30,
1996; sections 2104(a) and (b) of title II of the Act of February
8, 2006 (Pub. L. No. 109--171; 120 Stat. 12), effective date shall
take effect on the date the final regulations required under
section 9(a)(2) take effect; sections 2105 of title II of the Act
of February 8, 2006 (Pub. L. No. 109--171; 120 Stat. 14),
effective date shall take effect on the date that the final
regulations required under section 9(a)(1) take effect; section
2106 of title II of the Act of February 8, 2006 (Pub. L. No.
109--171; 120 Stat. 15), effective February 8, 2006; section
3(a)(2), (3) and (4) of the Act of February 15, 2006 (Pub. L. No.
109--173; 119 Stat. 3605), effective date shall take effect on the
date that the final regulations required under section 2109(a)(5)
of the Federal Deposit Insurance Reform Act of 2005 take effect;
section 8(a)(8) of the Act of February 15, 2006 (Pub. L. No.
109--173; 119 Stat. 3611), effective date shall take effect on the
day of the merger of the Bank Insurance Fund and the Savings
Association Insurance Fund pursuant to the Federal Deposit
Insurance Reform Act of 2005]
(c) CERTIFIED
STATEMENTS; PAYMENTS.--
(1) CERTIFIED
STATEMENTS REQUIRED.--
(A) IN
GENERAL.--Each insured depository institution shall file with the
Corporation a certified statement containing such information as
the Corporation may require for determining the institution's
assessment.
(B) FORM
OF CERTIFICATION.--The certified statement required under
subparagraph (A) shall--
(i) be
in such form and set forth such supporting information as the
Board of Directors shall prescribe; and
(ii) be
certified by the president of the depository institution or any
other officer designated by its board of directors or trustees
that to the best of his or her knowledge and
{{4-28-06
p.1118}}belief,
the statement is true, correct and complete, and in accordance
with this Act and regulations issued hereunder.
(2) PAYMENTS
REQUIRED.--
(A) IN
GENERAL.--Each insured depository institution shall pay to the
Corporation the assessment imposed under subsection (b).
(B) FORM OF
PAYMENT.--The payments required under subparagraph (A) shall be
made in such manner and at such time or times as the Board of
Directors shall prescribe by regulation.
(3) NEWLY
INSURED INSTITUTIONS.--To facilitate the administration of this
section, the Board of Directors may waive the requirements of
paragraphs (1) and (2) for the initial assessment period in which
a depository institution becomes insured.
(4) Penalty
for failure to make accurate certified statement.--
(A) FIRST
TIER.--Any insured depository institution which--
(i) maintains
procedures reasonably adapted to avoid any inadvertent error and,
unintentionally and as a result of such an error, fails to submit
the certified statement under paragraph (1) within the period of
time required under paragraph (1) or submits a false or misleading
certified statement; or
(ii) submits
the statement at a time which is minimally after the time required
in such paragraph,
shall be subject to a penalty
of not more than $2,000 for each day during which such failure
continues or such false and misleading information is not
corrected. The institution shall have the burden of proving that
an error was inadvertent or that a statement was inadvertently
submitted late.
(B) SECOND
TIER.--Any insured depository institution which fails to submit
the certified statement under paragraph (1) within the period of
time required under paragraph (1) or submits a false or misleading
certified statement in a manner not described in subparagraph (A)
shall be subject to a penalty of not more than $20,000 for each
day during which such failure continues or such false and
misleading information is not corrected.
(C) THIRD
TIER.--Notwithstanding subparagraphs (A) and (B), if any insured
depository institution knowingly or with reckless disregard for
the accuracy of any certified statement described in paragraph (1)
submits a false or misleading certified statement under paragraph
(1), the Corporation may assess a penalty of not more than
$1,000,000 or not more than 1 percent of the total assets of the
institution, whichever is less, per day for each day during which
the failure continues or the false or misleading information in
such statement is not corrected.
(D) ASSESSMENT
PROCEDURE.--Any penalty imposed under this paragraph shall be
assessed and collected by the Corporation in the manner provided
in subparagraphs (E), (F), (G), and (I) of section 8(i)(2) (for
penalties imposed under such section) and any such assessment
(including the determination of the amount of the penalty) shall
be subject to the provisions of such section.
(E) HEARING.--Any
insured depository institution against which any penalty is
assessed under this paragraph shall be afforded an agency hearing
if the institution submits a request for such hearing within 20
days after the issuance of the notice of the assessment. Section
8(h)
shall apply to any proceeding under this subparagraph.
[Codified
to 12 U.S.C. 1817(c)]
[Source: Section
2[7(c)] of the Act of September 21, 1950 (Pub. L. No. 797; 64
Stat. 877), effective September 21, 1950, as amended by section 2
of the Act of July 14, 1960 (Pub. L. No. 86--671; 74 Stat. 550),
effective January 1, 1961; sections 201(a)(1) and 208(7) of title
II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat.
187 and 213, respectively), effective August 9, 1989; section
302(b) of title III of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2348), effective the earlier of-- (1) 180 days
after the date on which final regulations promulgated in
accordance with section 302(c) of the Act become effective; or 2)
January 1, 1994, and section 313(a) of title III of the Act of
December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2368),
effective December 19, 1991; section {{2-29-08
p.1119}}1605(b)(1)
and (2) of title XVI of the Act of October 28, 1992 (Pub. L. No.
102--550; 106 Stat. 4086), effective December 19, 1991; section
3(a)(5) of the Act of February 15, 2006 (Pub. L. No. 109--173; 119
Stat. 3605), effective date shall take effect on the date that the
final regulations required under section 2109(a)(5) of the Federal
Deposit Insurance Reform Act of 2005 take effect]
(d) Corporation
Exempt From Apportionment.--Notwithstanding any other provision of
law, amounts received pursuant to any assessment under this
section and any other amounts received by the Corporation shall
not be subject to apportionment for the purposes of chapter 15 of
title 31, United States Code, or under any other authority.
[Codified
to 12 U.S.C. 1817(d)]
[Source: Section
2[7(d)] of the Act of September 21, 1950 (Pub. L. No. 797; 64
Stat. 877), effective September 21, 1950, as amended by section 3
of the Act of July 14, 1960 (Pub. L. No. 86--671; 74 Stat. 551),
effective January 1, 1961; section 308 of title III of the Act of
March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 147 and 148),
effective March 31, 1980; section 117 of title I of the Act of
October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1479), effective
October 15, 1982; sections 201(a)(1) and 208(5) of title II of the
Act of August 9, 1989 (Pub. L. No. 101--73; 102 Stat. 187 and 210,
respectively), effective August 9, 1989; section 2003(c) of title
II of the Act of November 5, 1990 (Pub. L. No. 101--508),
effective November 5, 1990; section 233(c) of title II and section
302(e)(3) of title III of the Act of December 19, 1991 (Pub. L.
No. 102--242; 105 Stat. 2314 and 2349, respectively, effective
December 19, 1991; section 303(b)(3) of title III of the Act of
October 28, 1992 (Pub. L. No. 102--558; 106 Stat. 4224), effective
March 1, 1992]
(e) REFUNDS,
DIVIDENDS, AND CREDITS.--
(1) REFUNDS
OF OVERPAYMENTS.--In the case of any payment of an assessment by
an insured depository institution in excess of the amount due to
the Corporation, the Corporation may--
(A) refund
the amount of the excess payment to the insured depository
institution; or
(B) credit
such excess amount toward the payment of subsequent assessments
until such credit is exhausted.
(2) Dividends
from excess amounts in deposit insurance fund.--
(A) Reserve
ratio in excess of 1.5 percent of estimated insured deposits.--If;
at the end of a calendar year, the reserve ratio of the Deposit
Insurance Fund exceeds 1.5 percent of estimated insured deposits,
the Corporation shall declare the amount in the Fund in excess of
the amount required to maintain the reserve ratio at 1.5 percent
of estimated insured deposits, as dividends to be paid to insured
depository institutions.
(B) Reserve
ratio equal to or in excess of 1.35 percent of estimated insured
deposits and not more than 1.5 percent.--If, at the end of a
calendar year, the reserve ratio of the Deposit Insurance Fund
equals or exceeds 1.35 percent of estimated insured deposits and
is not more than 1.5 percent of such deposits, the Corporation
shall declare the amount in the Fund that is equal to 50 percent
of the amount in excess of the amount required to maintain the
reserve ratio at 1.35 percent of the estimated insured deposits as
dividends to be paid to insured depository institutions.
(C) BASIS FOR
DISTRIBUTION OF DIVIDENDS.--
(i) IN
GENERAL.--Solely for the purposes of dividend distribution under
this paragraph, the Corporation shall determine each insured
depository institution's relative contribution to the Deposit
Insurance Fund (or any predecessor deposit insurance fund) for
calculating such institution's share of any dividend declared
under this paragraph, taking into account the factors described in
clause (ii).
(ii) FACTORS
FOR DISTRIBUTION.--In implementing this paragraph in accordance
with regulations, the Corporation shall take into account the
following factors:
(I) The
ratio of the assessment base of an insured depository institution
(including any predecessor) on December 31, 1996, to the
assessment base of all eligible insured depository institutions on
that date.
{{2-29-08
p.1120}}
(II) The
total amount of assessments paid on or after January 1, 1997, by
an insured depository institution (including any predecessor) to
the Deposit Insurance Fund (and any predecessor deposit insurance
fund).
(III) That
portion of assessments paid by an insured depository institution
(including any predecessor) that reflects higher levels of risk
assumed by such institution.
(IV) Such
other factors as the Corporation may determine to be appropriate.
(D) NOTICE
AND OPPORTUNITY FOR COMMENT.--The Corporation shall prescribe by
regulation, after notice and opportunity for comment, the method
for the calculation, declaration, and payment of dividends under
this paragraph.
(E) *
LIMITATION.--The Board of Directors may suspend or
limit dividends paid under subparagraph (B), if the Board
determines in writing that--
(i) a
significant risk of losses to the Deposit Insurance Fund exists
over the next 1-year period; and
(ii) it
is likely that such losses will be sufficiently high as to justify
a finding by the Board that the reserve ratio should temporarily
be allowed--
(I) to
grow without requiring dividends under subparagraph (B); or
(II) to
exceed the maximum amount established under subsection
(b)(3)(B)(i).
(F) CONSIDERATIONS.--In
making a determination under subparagraph (E), the Board shall
consider--
(i) national
and regional conditions and their impact on insured depository
institutions;
(ii) potential
problems affecting insured depository institutions or a specific
group or type of depository institution;
(iii) the
degree to which the contingent liability of the Corporation for
anticipated failures of insured institutions adequately addresses
concerns over funding levels in the Deposit Insurance Fund; and
(iv) any
other factors that the Board determines are appropriate.
(G) REVIEW OF
DETERMINATION.--
(i) ANNUAL
REVIEW.--A determination to suspend or limit dividends under
subparagraph (E) shall be reviewed by the Board of Directors
annually.
(ii) ACTION
BY BOARD.--Based on each annual review under clause (i), the Board
of Directors shall either renew or remove a determination to
suspend or limit dividends under subparagraph (E), or shall make a
new determination in accordance with this paragraph. Unless
justified under the terms of the renewal or new determination, the
Corporation shall be required to provide cash dividends under
subparagraph (A) or (B), as appropriate.
(3) One-time
credit based on total assessment base at year-end 1996.--
(A) IN
GENERAL.--Before the end of the 270-day period beginning on the
date of the enactment of the Federal Deposit Insurance Reform Act
of 2005, the Board of Directors shall, by regulation after notice
and opportunity for comment, provide for a credit to each eligible
insured depository institution (or a successor insured depository
institution), based on the assessment base of the institution on
December 31, 1996, as compared to the combined aggregate
assessment base of all eligible insured depository institutions,
taking into account such factors as the Board of Directors may
determine to be appropriate.
{{2-29-08
p.1120.01}}
(B) CREDIT
LIMIT.--The aggregate amount of credits available under
subparagraph (A) to all eligible insured depository institutions
shall equal the amount that the Corporation could collect if the
Corporation imposed an assessment of 10.5 basis points on the
combined assessment base of the Bank Insurance Fund and the
Savings Association Insurance Fund as of December 31, 2001.
(C) Eligible
insured depository institution defined.--For purposes of this
paragraph, the term "eligible insured depository institution"
means any insured depository institution that--
(i) was
in existence on December 31, 1996, and paid a deposit insurance
assessment prior to that date; or
(ii) is
a successor to any insured depository institution described in
clause (i).
(D) APPLICATION
OF CREDITS.--
(i) IN
GENERAL.--Subject to clause (ii), the amount of a credit to any
eligible insured depository institution under this paragraph shall
be applied by the Corporation, subject to subsection (b)(3)(E), to
the assessments imposed on such institution under subsection (b)
that become due for assessment periods beginning after the
effective date of regulations prescribed under subparagraph (A).
(ii) TEMPORARY
RESTRICTION ON USE OF CREDITS.--The amount of a credit to any
eligible insured depository institution under this paragraph may
not be applied to more than 90 percent of the assessments imposed
on such institution under subsection (b) that become due for
assessment periods beginning in fiscal years 2008, 2009, and 2010.
(iii) REGULATIONS.--The
regulations prescribed under subparagraph (A) shall establish the
qualifications and procedures governing the application of
assessment credits pursuant to clause (i).
(E) Limitation
on amount of credit for certain depository institutions.--In the
case of an insured depository institution that exhibits financial,
operational, or compliance weaknesses ranging from moderately
severe to unsatisfactory, or is not adequately capitalized (as
defined in section 38) at the beginning of an assessment period,
the amount of any credit allowed under this paragraph against the
assessment on that depository institution for such period may not
exceed the amount calculated by applying to that depository
institution the average assessment rate on all insured depository
institutions for such assessment period.
(F) SUCCESSOR
DEFINED.--The Corporation shall define the term successor' for
purposes of this paragraph, by regulation, and may consider any
factors as the Board may deem appropriate.
(4) ADMINISTRATIVE
REVIEW.--
(A) IN
GENERAL.--The regulations prescribed under paragraphs (2)(D) and
(3) shall include provisions allowing an insured depository
institution a reasonable opportunity to challenge administratively
the amount of the credit or dividend determined under paragraph
(2) or (3) for such institution.
(B) ADMINISTRATIVE
REVIEW.--Any review under subparagraph (A) of any determination of
the Corporation under paragraph (2) or (3) shall be final and not
subject to judicial review.
[Codified
to 12 U.S.C. 1817(e)]
[Source: Section
2[11(e)] of the Act of September 21, 1950 (Pub. L. No. 797; 64
Stat. 885), effective September 21, 1950, as amended by sections
6(c)(18) and (19) of the Act of September 17, 1978 (Pub. L. No.
95--369; 92 Stat. 619), effective September 17, 1978; section
212(a) of title II of the Act of August 9, 1989 (Pub. L. No.
101--73; 103 Stat. 222), effective August 9, 1989; section 161(a)
of title I of the Act of December 19, 1991 (Pub. L. No. 102--242;
105 Stat. 2285), effective December 19, 1991; section 325 of Title
III and section 602(a)(26) and (27) of title VI of the Act of
September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2228 and 2289,
respectively), effective September 23, 1994; section 501(c)(2) of
title V of the Act of October 22, 1994 (Pub. L. No. 103--394; 108
Stat. 4143, effective October 22, 1994; section 2706 of title II
of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat.
3009--496), effective September 30, 1996; section 2107(a)
{{2-29-08
p.1120.02}}of
title II of the Act of February 8, 2006 (Pub. L. No. 109--171; 120
Stat. 16), effective February 8, 2006]
(f) Any
insured depository institution which fails to make any report of
condition under subsection (a) of this section or to file any
certified statement required to be filed by it in connection with
determining the amount of any assessment payable by the depository
institution to the Corporation may be compelled to make such
report or file such statement by mandatory injunction or other
appropriate remedy in a suit brought for such purpose by the
Corporation against the depository institution and any officer or
officers thereof in any court of the United States of competent
jurisdiction in the District or Territory in which such depository
institution is located.
[Codified
to 12 U.S.C. 1817(f)]
[Source: Section
2[7(f)] of the Act of September 21, 1950 (Pub. L. No. 797; 64
Stat. 878), effective September 21, 1950, as amended by section 3
of the Act of July 14, 1960 (Pub. L. No. 86--671; 74 Stat. 551),
effective January 1, 1961; sections 201(a)(1) and 208(7) of title
II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat.
187 and 213, respectively), effective August 9, 1989]
(g) ASSESSMENT
ACTIONS.--
(1) IN
GENERAL.--The Corporation, in any court of competent jurisdiction,
shall be entitled to recover from any insured depository
institution the amount of any unpaid assessment lawfully payable
by such insured depository institution.
(2) STATUTE
OF LIMITATIONS.--The following provisions shall apply to actions
relating to assessments, notwithstanding any other provision in
Federal law, or the law of any State:
(A) Any
action by an insured depository institution to recover from the
Corporation the overpaid amount of any assessment shall be brought
within 3 years after the date the assessment payment was due,
subject to the exception in subparagraph (E).
(B) Any
action by the Corporation to recover from an insured depository
institution the underpaid amount of any assessment shall be
brought within 3 years after the date the assessment payment was
due, subject to the exceptions in subparagraphs (C) and (E).
(C) If an
insured depository institution has made a false or fraudulent
statement with intent to evade any or all of its assessment, the
Corporation shall have until 3 years after the date of discovery
of the false or fraudulent statement in which to bring an action
to recover the underpaid amount.
(D) Except
as provided in subparagraph (C), assessment deposit information
contained in records no longer required to be maintained pursuant
to subsection (b)(4) shall be considered conclusive and not
subject to change.
(E) Any
action for the underpaid or overpaid amount of any assessment that
became due before the amendment to this subsection under the
Federal Deposit Insurance Reform Act of 2005 took effect shall be
subject to the statute of limitations for assessments in effect at
the time the assessment became due.
[Codified
to 12 U.S.C. 1817(g)]
[Source: Section
2[7(g)] of the Act of September 21, 1950 (Pub. L. No. 797; 64
Stat. 878), effective September 21, 1950, as amended by section 3
of the Act of July 14, 1960 (Pub. L. No. 86--671; 74 Stat. 551),
effective January 1, 1961; sections 201(a)(1) and 208(7) of title
II of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat.
187 and 213, respectively), effective August 9, 1989; section
2104(d) of title II of the Act of February 8, 2006 (Pub. L. No.
109--171; 120 Stat. 13), effective date shall take effect on the
date that the final regulations required by section 9(a)(1) take
effect]
(h) Should
any national member bank or any insured national nonmember bank
fail to make any report of condition under subsection (a) of this
section or to file any certified statement required to be filed by
such bank under any provision of this section, or fail to pay any
assessment required to be paid by such bank under any provision of
this Act, and should the bank not correct such failure within
thirty days after written notice has been given by the Corporation
to an officer of the bank, citing this subsection, and stating
that the bank has failed to make any report of condition under
subsection (a) of this section or to file or pay as required by
law, all the rights, privileges, and franchises of the bank
granted to it under the National Bank Act, as amended, the Federal
Reserve Act, as
{{2-29-08
p.1120.02-A}}amended,
or this Act, shall be thereby forfeited. Whether or not the
penalty provided in this subsection has been incurred shall be
determined and adjudged in the manner provided in the sixth
paragraph of section 2 of the Federal Reserve Act, as amended. The
remedies provided in this subsection and in the two preceding
subsections shall not be construed as limiting any other remedies
against any insured depository institution, but shall be in
addition thereto.
[Codified
to 12 U.S.C. 1817(h)]
[Source: Section
2[7(h)] of the Act of September 21, 1950 (Pub. L. No. 797; 64
Stat. 879), effective September 21, 1950, as amended by section 3
of the Act of July 14, 1960 (Pub. L. {{12-29-06
p.1120.03}}No.
86--671; 74 Stat. 551), effective January 1, 1961; section
201(a)(1) of title II of the Act of August 9, 1989 (Pub. L. No.
101--73; 103 Stat. 187), effective August 9, 1989]
*
Editor's
note: Section
5 of the Act of February 15, 2006 (Pub. L. No. 109--173; 119 Stat.
3606) provides that: SEC. 5. REPORT TO CONGRESS ON
REFUNDS, DIVIDENDS, AND CREDITS FROM DEPOSIT INSURANCE
FUND. (a) SUBMISSION.--Any determination
under section 7(e)(2)(E) of the Federal Deposit Insurance Act, as
added by section 2107(a) of the Federal Deposit Insurance Reform
Act of 2005, shall be submitted to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives, not later than
270 days after making such determination. (b) CONTENT.--The
report submitted under subsection (a) shall include-- (1) a
detailed explanation for the determination; and (2) a
discussion of the factors required to be considered under section
7(e)(2)(F) of the Federal Deposit Insurance Act, as added by
section 2107(a) of the Federal Deposit Insurance Reform Act of
2005. Go
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