Federal Deposit Insurance Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-15-2010
April 13, 2010
TRANSACTION ACCOUNT GUARANTEE EXTENSION
Interim Final Rule With Request for Comments
Summary: Summary: On April 13, 2010, the FDIC adopted the attached interim final rule extending the Transaction
Account Guarantee (TAG) component of the Temporary Liquidity Guarantee Program for six months, through
December 31, 2010, with the possibility of extending the program an additional 12 months without further rulemaking.
For institutions choosing to remain in the TAG, the basis for calculating the current assessments is modified to one that
uses average daily balances in TAG-related accounts. Interest rates on NOW accounts guaranteed under the TAG
program are also lowered. Comments on the interim rule are due 30 days following its publication in the Federal
Register.
Distribution:
All FDIC-Insured Institutions
Suggested Routing:
Chief Executive Officer
President
Chief Financial Officer
Related Topics:
Temporary Liquidity Guarantee Program
Attachment:
Interim Final Rule
Contact:
Christopher Hencke, Legal Division, (202) 898-8839 or
chencke@fdic.gov; Donna Saulnier, Manager,
Assessment Policy Section, Division of Finance, (703)
562-6167 or dsaulnier@fdic.gov; or Rose Kushmeider,
Acting Chief, Banking and Regulatory Policy Section,
Division of Insurance and Research, (202) 898-3861 or
rkushmeider@fdic.gov
Note:
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site at
http://www.fdic.gov/news/news/financial/2010.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-
877-275-3342 or 703-562-2200).
Highlights:
• The TAG program is extended for six months, through
December 31, 2010. IDIs currently participating in the
program that wish to opt out of the TAG extension must
submit their request to opt out on or before April 30,
2010. Such election will be effective on July 1, 2010.
• The interim rule gives the FDIC’s Board of Directors the
authority to grant an additional 12-month extension of
the program, through December 31, 2011, without
further rulemaking, if it determines that continuing
economic difficulties warrant such extension. IDIs
participating in the extended TAG program are obligated
to remain in the program an additional 12 months if it is
extended.
• Beginning with the September 30, 2010, Report of
Condition or Thrift Financial Report, the total dollar
amount of TAG-qualifying accounts and the total
number of accounts must be reported as an average
daily balance.
• The maximum interest rate limit for NOW accounts
guaranteed under the TAG program will be 0.25
percent, effective July 1, 2010.
• Every IDI currently participating in the TAG program
should review its disclosures and modify them as
necessary to ensure that they will be accurate after
June 30, 2010.
• TAG assessment rates will remain the same during the
six-month extension.Inactive
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-15-2010
April 13, 2010
TRANSACTION ACCOUNT GUARANTEE EXTENSION
Interim Final Rule With Request for Comments
Summary: Summary: On April 13, 2010, the FDIC adopted the attached interim final rule extending the Transaction
Account Guarantee (TAG) component of the Temporary Liquidity Guarantee Program for six months, through
December 31, 2010, with the possibility of extending the program an additional 12 months without further rulemaking.
For institutions choosing to remain in the TAG, the basis for calculating the current assessments is modified to one that
uses average daily balances in TAG-related accounts. Interest rates on NOW accounts guaranteed under the TAG
program are also lowered. Comments on the interim rule are due 30 days following its publication in the Federal
Register.
Distribution:
All FDIC-Insured Institutions
Suggested Routing:
Chief Executive Officer
President
Chief Financial Officer
Related Topics:
Temporary Liquidity Guarantee Program
Attachment:
Interim Final Rule
Contact:
Christopher Hencke, Legal Division, (202) 898-8839 or
chencke@fdic.gov; Donna Saulnier, Manager,
Assessment Policy Section, Division of Finance, (703)
562-6167 or dsaulnier@fdic.gov; or Rose Kushmeider,
Acting Chief, Banking and Regulatory Policy Section,
Division of Insurance and Research, (202) 898-3861 or
rkushmeider@fdic.gov
Note:
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site at
http://www.fdic.gov/news/news/financial/2010.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-
877-275-3342 or 703-562-2200).
Highlights:
• The TAG program is extended for six months, through
December 31, 2010. IDIs currently participating in the
program that wish to opt out of the TAG extension must
submit their request to opt out on or before April 30,
2010. Such election will be effective on July 1, 2010.
• The interim rule gives the FDIC’s Board of Directors the
authority to grant an additional 12-month extension of
the program, through December 31, 2011, without
further rulemaking, if it determines that continuing
economic difficulties warrant such extension. IDIs
participating in the extended TAG program are obligated
to remain in the program an additional 12 months if it is
extended.
• Beginning with the September 30, 2010, Report of
Condition or Thrift Financial Report, the total dollar
amount of TAG-qualifying accounts and the total
number of accounts must be reported as an average
daily balance.
• The maximum interest rate limit for NOW accounts
guaranteed under the TAG program will be 0.25
percent, effective July 1, 2010.
• Every IDI currently participating in the TAG program
should review its disclosures and modify them as
necessary to ensure that they will be accurate after
June 30, 2010.
• TAG assessment rates will remain the same during the
six-month extension.Inactive