This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
Proposed Rules Federal Register
60015
Vol. 70, No. 198
Friday, October 14, 2005
1 FDI Act section 18(c)(2), (12 U.S.C. 1828(c)(2)),
reads as follows:
No insured depository institution shall merge or
consolidate with any other insured depository
institution or, either directly or indirectly, acquire
the assets of, or assume liability to pay any deposits
made in, any other insured depository institution
except with the prior written approval of the
responsible agency. * * *
2 62 FR 26431, May 14, 1997. That proposal is
withdrawn.
3 This proposal would not affect the requirements
for FDIC approval of voluntary deposit insurance
terminations under sections 8(a) and 8(p) of the FDI
Act and for prior written consent for the conversion
of an insured depository institution into a
noninsured bank or institution as required by
section 18(i)(3).
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 307
RIN 3064–AC93
Notification of Changes of Insured
Status
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice of proposed rulemaking.
SUMMARY: The FDIC is proposing to
revise its regulation addressing the
certification to the FDIC of the
assumption of deposits and the
notification to depositors of a change in
insured status. The proposed revision
would clarify that a certification is
required only when all of an insured
institution’s deposit liabilities have
been assumed and that no certification
is required for partial deposit
assumptions. The proposal would
require the institution whose deposits
are transferred, or its legal successor, to
provide the notification rather than the
institution assuming the deposits.
Finally, the proposal would also clarify
the circumstances in which the FDIC
would issue orders reflecting that an
institution’s insured status has been
terminated under section 8(q) of the
Federal Deposit Insurance Act.
Generally, no orders would be issued
when an insured institution transfers all
of its deposits and its authority to
engage in banking is contemporaneously
cancelled, nor when the FDIC has been
appointed receiver for an insured
institution in default.
DATES: Written comments on the
Proposal must be received by the FDIC
on or before December 13, 2005 for
consideration.
ADDRESSES: Interested parties are
invited to submit written comments to
the FDIC by any of the following
methods:
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Agency Web Site: http://
www.fdic.gov/regulations/laws/federal/
propose.html. Follow the instructions
for submitting comments.
• E-mail: comments@fdic.gov.
Include ‘‘Part 307—Notification of
Changes of Insured Status’’ in the
subject line of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
• Hand Delivery: Comments may be
hand-delivered to the guard station
located at the rear of the FDIC’s 550
17th Street building (accessible from F
Street) on business days between 7 a.m.
and 5 p.m.
Instructions: All submissions must
include the agency name and use the
title ‘‘Part 307—Notification of Changes
of Insured Status.’’
All comments received will be posted
without change to, http://www.fdic.gov/
regulations/laws/federal/propose.html,
including any personal information
provided.
Comments may be inspected and
photocopied in the FDIC Public
Information Center, Room 100, 801 17th
Street, NW., Washington, DC, between 9
a.m. and 4:30 p.m. on business days.
FOR FURTHER INFORMATION CONTACT:
Kevin W. Hodson, Chief, Risk
Management and Applications Section
II, Division of Supervision and
Consumer Protection, (202) 898–6919;
Donald R. Hamm, Review Examiner,
Division of Supervision and Consumer
Protection, (202) 898–3528; Thomas
Nixon, Counsel, Legal Division, (202)
898–8766; Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Background
The FDIC’s Part 307 contains two
sections. Section 307.1 implements
section 8(q) of the Federal Deposit
Insurance Act (FDI Act) (12 U.S.C.
1818(q)), which states:
Whenever the liabilities of an insured
depository institution for deposits shall have
been assumed by another insured depository
institution or depository institutions,
whether by way of merger, consolidation, or
other statutory assumption, or pursuant to
contract
(1) the insured status of the depository
institution whose liabilities are so assumed
shall terminate on the date of receipt by the
Corporation of satisfactory evidence of such
assumption;
(2) the separate insurance of all deposits so
assumed shall terminate at the end of six
months from the date such assumption takes
effect or, in the case of any time deposit, the
earliest maturity date after the six-month
period. * * *
All assumptions of insured deposit
liabilities, whether a ‘‘total’’ assumption
of all the transferring institution’s
deposits or an assumption of only a
portion of its deposits (a ‘‘partial’’
assumption), by an insured institution
are subject to the Bank Merger Act and
require the prior written approval of the
‘‘responsible agency.’’ 1 The responsible
agency is the primary Federal regulator
of the assuming institution.
The current section 307.1 was last
revised in 1983. It requires an assuming
institution to provide a certification to
the FDIC ‘‘[w]henever the deposit
liabilities of an insured bank * * * are
assumed by another insured bank.
* * * ’’ In 1997, the FDIC published a
notice of proposed rulemaking
concerning Part 307 which was not
made final.2 The preamble to that
proposed rulemaking indicated that the
FDIC’s view of the current text of
section 307.1 was that certifications
should be made for both partial and
total assumptions. Since the text of
section 307.1 does not clearly
distinguish between partial and total
assumptions, institutions may be unsure
whether a certification is required for
partial deposit assumptions.
An insured depository institution that
proposes to voluntarily terminate its
insured status without transferring all of
its deposits to an FDIC insured
institution must obtain the FDIC’s
permission. (FDI Act section 18(i)(3), 12
U.S.C. 1828(i)(3)).3 Section 307.2
VerDate Aug<31>2005 15:37 Oct 13, 2005 Jkt 208001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\14OCP1.SGM 14OCP1
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
Proposed Rules Federal Register
60015
Vol. 70, No. 198
Friday, October 14, 2005
1 FDI Act section 18(c)(2), (12 U.S.C. 1828(c)(2)),
reads as follows:
No insured depository institution shall merge or
consolidate with any other insured depository
institution or, either directly or indirectly, acquire
the assets of, or assume liability to pay any deposits
made in, any other insured depository institution
except with the prior written approval of the
responsible agency. * * *
2 62 FR 26431, May 14, 1997. That proposal is
withdrawn.
3 This proposal would not affect the requirements
for FDIC approval of voluntary deposit insurance
terminations under sections 8(a) and 8(p) of the FDI
Act and for prior written consent for the conversion
of an insured depository institution into a
noninsured bank or institution as required by
section 18(i)(3).
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 307
RIN 3064–AC93
Notification of Changes of Insured
Status
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice of proposed rulemaking.
SUMMARY: The FDIC is proposing to
revise its regulation addressing the
certification to the FDIC of the
assumption of deposits and the
notification to depositors of a change in
insured status. The proposed revision
would clarify that a certification is
required only when all of an insured
institution’s deposit liabilities have
been assumed and that no certification
is required for partial deposit
assumptions. The proposal would
require the institution whose deposits
are transferred, or its legal successor, to
provide the notification rather than the
institution assuming the deposits.
Finally, the proposal would also clarify
the circumstances in which the FDIC
would issue orders reflecting that an
institution’s insured status has been
terminated under section 8(q) of the
Federal Deposit Insurance Act.
Generally, no orders would be issued
when an insured institution transfers all
of its deposits and its authority to
engage in banking is contemporaneously
cancelled, nor when the FDIC has been
appointed receiver for an insured
institution in default.
DATES: Written comments on the
Proposal must be received by the FDIC
on or before December 13, 2005 for
consideration.
ADDRESSES: Interested parties are
invited to submit written comments to
the FDIC by any of the following
methods:
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Agency Web Site: http://
www.fdic.gov/regulations/laws/federal/
propose.html. Follow the instructions
for submitting comments.
• E-mail: comments@fdic.gov.
Include ‘‘Part 307—Notification of
Changes of Insured Status’’ in the
subject line of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
• Hand Delivery: Comments may be
hand-delivered to the guard station
located at the rear of the FDIC’s 550
17th Street building (accessible from F
Street) on business days between 7 a.m.
and 5 p.m.
Instructions: All submissions must
include the agency name and use the
title ‘‘Part 307—Notification of Changes
of Insured Status.’’
All comments received will be posted
without change to, http://www.fdic.gov/
regulations/laws/federal/propose.html,
including any personal information
provided.
Comments may be inspected and
photocopied in the FDIC Public
Information Center, Room 100, 801 17th
Street, NW., Washington, DC, between 9
a.m. and 4:30 p.m. on business days.
FOR FURTHER INFORMATION CONTACT:
Kevin W. Hodson, Chief, Risk
Management and Applications Section
II, Division of Supervision and
Consumer Protection, (202) 898–6919;
Donald R. Hamm, Review Examiner,
Division of Supervision and Consumer
Protection, (202) 898–3528; Thomas
Nixon, Counsel, Legal Division, (202)
898–8766; Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Background
The FDIC’s Part 307 contains two
sections. Section 307.1 implements
section 8(q) of the Federal Deposit
Insurance Act (FDI Act) (12 U.S.C.
1818(q)), which states:
Whenever the liabilities of an insured
depository institution for deposits shall have
been assumed by another insured depository
institution or depository institutions,
whether by way of merger, consolidation, or
other statutory assumption, or pursuant to
contract
(1) the insured status of the depository
institution whose liabilities are so assumed
shall terminate on the date of receipt by the
Corporation of satisfactory evidence of such
assumption;
(2) the separate insurance of all deposits so
assumed shall terminate at the end of six
months from the date such assumption takes
effect or, in the case of any time deposit, the
earliest maturity date after the six-month
period. * * *
All assumptions of insured deposit
liabilities, whether a ‘‘total’’ assumption
of all the transferring institution’s
deposits or an assumption of only a
portion of its deposits (a ‘‘partial’’
assumption), by an insured institution
are subject to the Bank Merger Act and
require the prior written approval of the
‘‘responsible agency.’’ 1 The responsible
agency is the primary Federal regulator
of the assuming institution.
The current section 307.1 was last
revised in 1983. It requires an assuming
institution to provide a certification to
the FDIC ‘‘[w]henever the deposit
liabilities of an insured bank * * * are
assumed by another insured bank.
* * * ’’ In 1997, the FDIC published a
notice of proposed rulemaking
concerning Part 307 which was not
made final.2 The preamble to that
proposed rulemaking indicated that the
FDIC’s view of the current text of
section 307.1 was that certifications
should be made for both partial and
total assumptions. Since the text of
section 307.1 does not clearly
distinguish between partial and total
assumptions, institutions may be unsure
whether a certification is required for
partial deposit assumptions.
An insured depository institution that
proposes to voluntarily terminate its
insured status without transferring all of
its deposits to an FDIC insured
institution must obtain the FDIC’s
permission. (FDI Act section 18(i)(3), 12
U.S.C. 1828(i)(3)).3 Section 307.2
VerDate Aug<31>2005 15:37 Oct 13, 2005 Jkt 208001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\14OCP1.SGM 14OCP1
60016 Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Proposed Rules
4 12 U.S.C. 1818(a)(6). Section 8(a)(6) reads as
follows:
PUBLICATION OF NOTICE OF
TERMINATION.—The Corporation may publish
notice of such termination and the depository
institution shall give notice of such termination to
each of its depositors at his last address of record
on the books of the depository institution, in such
manner and at such time as the Board of Directors
may find to be necessary and may order for the
protection of depositors.
5 Public Law 101–73, 103 Stat. 103.
6 12 U.S.C. 1813(c)(2). An ‘‘insured depository
institution’’ is defined as ‘‘any bank or savings
association the deposits of which are insured by the
Corporation pursuant to this [the FDI] Act.’’ Federal
branches and insured branches are included in the
definition of ‘‘bank’’ in section 3(a)(1)(A) (12U.S.C.
1813(a)(1)(A)).
7 Public Law 104–208, Sept. 30, 1996, 12 U.S.C.
3311.
8 The 1997 proposed rule had envisioned that the
certification of partial assumption could be used by
the FDIC to determine when the separate deposit
insurance coverage provided by section 8(q) on the
assumed deposits ended. However, the FDIC can
rely on other sources of information to make a
separate deposit insurance coverage determination
when necessary (for example, from information
provided directly to the FDIC by insured depository
institutions or by other Federal banking agencies, as
well from the underlying transactional documents).
applies section 8(a)(6) of the FDI Act 4
to voluntary terminations of insured
status. Under section 307.2, an insured
bank or insured branch of a foreign bank
seeking to voluntarily terminate its
insured status, but whose deposits will
not be assumed by another insured
depository institution, must provide
notice to its depositors of the date its
insured status will terminate. The
regulation authorizes the appropriate
FDIC Regional Director of the Division
of Supervision and Consumer Protection
to approve the form, manner, and timing
of the notice to depositors and provides
authority to the FDIC to take such other
steps as may be deemed necessary for
the protection of the institution’s
depositors.
II. The Proposed Rule
A. Revised Caption of the Part
The caption of the Part would be
changed from ‘‘Notification of Changes
of Insured Status’’ to ‘‘Certification of
Assumption of Deposits and
Notification of Changes of Insured
Status.’’ This would make the caption
more descriptive of the content of the
Part and alert institutions that the Part
addresses deposit assumptions as well
as changes in insured status.
B. Section 307.1—Scope and Purpose
The current Part 307 does not have a
scope and purpose section. In addition,
since Part 307 has not been revised
since 1983, sections 307.1 and 307 .2
continue to refer to an ‘‘insured bank’’
rather than to an ‘‘insured depository
institution,’’ consistent with the changes
made to the FDIC’s responsibilities and
terminology by sections 201 and 202 of
the Financial Institutions Reform,
Recovery, and Enforcement Act of
1989.5 The proposed rule would add a
new section 307.1 to indicate that the
Part applies to insured depository
institutions as defined in section 3(c)(2)
of the FDI Act,6 and to describe the
purpose of the Part. The existing
sections 307.1 and 307.2 would be
redesignated as sections 307.2 and
307.3, respectively.
C. Section 307.2—Certification of
Assumption of Deposit Liabilities
When certification is required. As
noted, there may be some ambiguity
whether the current certification
requirement applies only to total
deposit assumptions, or also to partial
assumptions. Today’s proposed rule
would clarify that a certification is
required only when there has been a
total assumption of deposits. No
certification would be required in the
case of a partial transfer of deposits, for
example when a single branch of an
institution is sold. Clarifying that no
certification is necessary for a partial
assumption is consistent with the
FDIC’s goal of reducing regulatory
burden pursuant to Section 2222 of the
Economic Growth and Regulatory
Paperwork Reduction Act of 1996 7
while obtaining sufficient information
for the proper implementation of section
8(q) of the FDI Act.8
There may be situations in which an
insured depository institution disposes
of all of its deposits through a series of
simultaneous partial deposit
assumptions involving multiple
assuming institutions, rather than
through a single total deposit
assumption by one assuming institution.
An example of this would be where all
of the deposits of a transferring
institution were assumed through a
series of branch acquisitions by different
assuming institutions that occurred on
the same day. Viewed cumulatively,
these partial assumptions would
amount to a total assumption of the
deposits of the transferring institution
making certification necessary. In this
situation, today’s proposal would
require that the transferring institution
file a certification.
The current section 307.1 also does
not distinguish between a deposit
assumption involving operating
institutions versus an assumption
involving an institution in default and
in FDIC receivership. The FDIC plays an
integral role in the transfer and
assumption of deposit liabilities when it
is appointed as receiver for an insured
depository institution in default, and
has in its possession information
regarding the deposit transfer and
assumption transaction. Section 307.2(a)
of today’s proposal would create an
explicit exception from the certification
requirement when the deposit liabilities
are being transferred from an insured
depository institution in default and the
FDIC has been appointed as receiver.
Who must make the certification. The
proposed rule would require the
transferring institution, or its legal
successor (‘‘transferring institution’’),
rather than the assuming institution, to
provide certification to the FDIC.
Generally, an institution transferring
deposit liabilities will be in a better
position than the assuming institution
to know whether the transfer constitutes
all of its deposits, thus triggering
application of Part 307 and FDI Act
section 8(q). This would be particularly
true in the case of an institution that
transfers all of its deposit liabilities
through multiple transfers to a variety of
assuming institutions. In such a
situation, it may be difficult for the
assuming institutions to have sufficient
knowledge of key facts in order to make
accurate certifications. In a merger or
consolidation there may be only one
surviving entity which is the legal
successor to both the transferring and
assuming institutions. In such instances,
that surviving entity would provide any
required certification.
Content and form of the certification.
Proposed section 307.2(b) would
establish the certification’s content. The
requirements are similar to the current
section 307.1 but clarify certain issues,
such as where certifications should be
filed with the FDIC, and the need for the
certification to be on the letterhead of
the transferring institution or its legal
successor and to be signed by an
authorized official. In addition, the
proposal would require an institution
that is contemporaneously relinquishing
its authority to engage in the business of
receiving deposits to provide the date
that its authority terminated (or will
terminate) as well as the method of
termination (e.g., whether by the
surrender of its charter, the cancellation
of its charter or license to conduct a
banking business, or otherwise). As
discussed below, this information
would be used by the FDIC to evaluate
the need to issue an order terminating
insurance. To assist the industry with
compliance, the proposed rule provides
a template (Appendix A) that may be
used to satisfy with proposed section
307.2 certification requirements.
Evidence of Assumption. The current
section 307.1 states that a certification
made pursuant to section 307.1 ‘‘shall
VerDate Aug<31>2005 15:37 Oct 13, 2005 Jkt 208001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\14OCP1.SGM 14OCP1
4 12 U.S.C. 1818(a)(6). Section 8(a)(6) reads as
follows:
PUBLICATION OF NOTICE OF
TERMINATION.—The Corporation may publish
notice of such termination and the depository
institution shall give notice of such termination to
each of its depositors at his last address of record
on the books of the depository institution, in such
manner and at such time as the Board of Directors
may find to be necessary and may order for the
protection of depositors.
5 Public Law 101–73, 103 Stat. 103.
6 12 U.S.C. 1813(c)(2). An ‘‘insured depository
institution’’ is defined as ‘‘any bank or savings
association the deposits of which are insured by the
Corporation pursuant to this [the FDI] Act.’’ Federal
branches and insured branches are included in the
definition of ‘‘bank’’ in section 3(a)(1)(A) (12U.S.C.
1813(a)(1)(A)).
7 Public Law 104–208, Sept. 30, 1996, 12 U.S.C.
3311.
8 The 1997 proposed rule had envisioned that the
certification of partial assumption could be used by
the FDIC to determine when the separate deposit
insurance coverage provided by section 8(q) on the
assumed deposits ended. However, the FDIC can
rely on other sources of information to make a
separate deposit insurance coverage determination
when necessary (for example, from information
provided directly to the FDIC by insured depository
institutions or by other Federal banking agencies, as
well from the underlying transactional documents).
applies section 8(a)(6) of the FDI Act 4
to voluntary terminations of insured
status. Under section 307.2, an insured
bank or insured branch of a foreign bank
seeking to voluntarily terminate its
insured status, but whose deposits will
not be assumed by another insured
depository institution, must provide
notice to its depositors of the date its
insured status will terminate. The
regulation authorizes the appropriate
FDIC Regional Director of the Division
of Supervision and Consumer Protection
to approve the form, manner, and timing
of the notice to depositors and provides
authority to the FDIC to take such other
steps as may be deemed necessary for
the protection of the institution’s
depositors.
II. The Proposed Rule
A. Revised Caption of the Part
The caption of the Part would be
changed from ‘‘Notification of Changes
of Insured Status’’ to ‘‘Certification of
Assumption of Deposits and
Notification of Changes of Insured
Status.’’ This would make the caption
more descriptive of the content of the
Part and alert institutions that the Part
addresses deposit assumptions as well
as changes in insured status.
B. Section 307.1—Scope and Purpose
The current Part 307 does not have a
scope and purpose section. In addition,
since Part 307 has not been revised
since 1983, sections 307.1 and 307 .2
continue to refer to an ‘‘insured bank’’
rather than to an ‘‘insured depository
institution,’’ consistent with the changes
made to the FDIC’s responsibilities and
terminology by sections 201 and 202 of
the Financial Institutions Reform,
Recovery, and Enforcement Act of
1989.5 The proposed rule would add a
new section 307.1 to indicate that the
Part applies to insured depository
institutions as defined in section 3(c)(2)
of the FDI Act,6 and to describe the
purpose of the Part. The existing
sections 307.1 and 307.2 would be
redesignated as sections 307.2 and
307.3, respectively.
C. Section 307.2—Certification of
Assumption of Deposit Liabilities
When certification is required. As
noted, there may be some ambiguity
whether the current certification
requirement applies only to total
deposit assumptions, or also to partial
assumptions. Today’s proposed rule
would clarify that a certification is
required only when there has been a
total assumption of deposits. No
certification would be required in the
case of a partial transfer of deposits, for
example when a single branch of an
institution is sold. Clarifying that no
certification is necessary for a partial
assumption is consistent with the
FDIC’s goal of reducing regulatory
burden pursuant to Section 2222 of the
Economic Growth and Regulatory
Paperwork Reduction Act of 1996 7
while obtaining sufficient information
for the proper implementation of section
8(q) of the FDI Act.8
There may be situations in which an
insured depository institution disposes
of all of its deposits through a series of
simultaneous partial deposit
assumptions involving multiple
assuming institutions, rather than
through a single total deposit
assumption by one assuming institution.
An example of this would be where all
of the deposits of a transferring
institution were assumed through a
series of branch acquisitions by different
assuming institutions that occurred on
the same day. Viewed cumulatively,
these partial assumptions would
amount to a total assumption of the
deposits of the transferring institution
making certification necessary. In this
situation, today’s proposal would
require that the transferring institution
file a certification.
The current section 307.1 also does
not distinguish between a deposit
assumption involving operating
institutions versus an assumption
involving an institution in default and
in FDIC receivership. The FDIC plays an
integral role in the transfer and
assumption of deposit liabilities when it
is appointed as receiver for an insured
depository institution in default, and
has in its possession information
regarding the deposit transfer and
assumption transaction. Section 307.2(a)
of today’s proposal would create an
explicit exception from the certification
requirement when the deposit liabilities
are being transferred from an insured
depository institution in default and the
FDIC has been appointed as receiver.
Who must make the certification. The
proposed rule would require the
transferring institution, or its legal
successor (‘‘transferring institution’’),
rather than the assuming institution, to
provide certification to the FDIC.
Generally, an institution transferring
deposit liabilities will be in a better
position than the assuming institution
to know whether the transfer constitutes
all of its deposits, thus triggering
application of Part 307 and FDI Act
section 8(q). This would be particularly
true in the case of an institution that
transfers all of its deposit liabilities
through multiple transfers to a variety of
assuming institutions. In such a
situation, it may be difficult for the
assuming institutions to have sufficient
knowledge of key facts in order to make
accurate certifications. In a merger or
consolidation there may be only one
surviving entity which is the legal
successor to both the transferring and
assuming institutions. In such instances,
that surviving entity would provide any
required certification.
Content and form of the certification.
Proposed section 307.2(b) would
establish the certification’s content. The
requirements are similar to the current
section 307.1 but clarify certain issues,
such as where certifications should be
filed with the FDIC, and the need for the
certification to be on the letterhead of
the transferring institution or its legal
successor and to be signed by an
authorized official. In addition, the
proposal would require an institution
that is contemporaneously relinquishing
its authority to engage in the business of
receiving deposits to provide the date
that its authority terminated (or will
terminate) as well as the method of
termination (e.g., whether by the
surrender of its charter, the cancellation
of its charter or license to conduct a
banking business, or otherwise). As
discussed below, this information
would be used by the FDIC to evaluate
the need to issue an order terminating
insurance. To assist the industry with
compliance, the proposed rule provides
a template (Appendix A) that may be
used to satisfy with proposed section
307.2 certification requirements.
Evidence of Assumption. The current
section 307.1 states that a certification
made pursuant to section 307.1 ‘‘shall
VerDate Aug<31>2005 15:37 Oct 13, 2005 Jkt 208001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\14OCP1.SGM 14OCP1