Financial Institution Letter
FIL-48-2009
August 27, 2009
TRANSACTION ACCOUNT GUARANTEE EXTENSION
Third Quarter 2009
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
Summary: On August 26, 2009, the FDIC adopted the attached final rule extending the Transaction
Account Guarantee (TAG) portion of the Temporary Liquidity Guarantee Program for six months,
through June 30, 2010. For institutions that choose to remain in the program, the fee will be raised and
adjusted to reflect the institution’s risk.
Distribution:
All FDIC-Insured Institutions
Suggested Routing:
Chief Executive Officer
President
Chief Financial Officer
Related Topics:
Temporary Liquidity Guarantee Program
Attachment:
Final Rule
Contacts:
Donna Saulnier, Manager, Assessment Policy
Section, Division of Finance, (703) 562-6167;
Christopher L. Hencke, Counsel, Legal Division,
(202) 898-8839; or Joe Fellerman, Senior Program
Analyst, Division of Insurance and Research, (202)
898-6591
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2009/index.html.
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:
• Any insured depository institution that is currently
participating in the TAG program may continue in the
program during the extension period that ends on June
30, 2010.
• The annual assessment rate that will apply to
participating institutions during the extension period will
be either 15 basis points, 20 basis points or 25 basis
points, depending on the Risk Category assigned to the
institution under the FDIC’s risk-based premium
system.
• Any institution currently participating in the TAG
program that wishes to opt out of the TAG extension
must submit its opt-out election to the FDIC on or
before November 2, 2009. See page 2 for instructions
on how to opt out.
• Any such election to opt out will be effective on January
1, 2010.
• Every institution currently participating in the TAG
program should review its disclosures and modify them
as necessary to ensure that they will be accurate after
December 31, 2009.
• The maximum interest rate limit for NOW accounts
remains unchanged.
FIL-48-2009
August 27, 2009
TRANSACTION ACCOUNT GUARANTEE EXTENSION
Third Quarter 2009
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
Summary: On August 26, 2009, the FDIC adopted the attached final rule extending the Transaction
Account Guarantee (TAG) portion of the Temporary Liquidity Guarantee Program for six months,
through June 30, 2010. For institutions that choose to remain in the program, the fee will be raised and
adjusted to reflect the institution’s risk.
Distribution:
All FDIC-Insured Institutions
Suggested Routing:
Chief Executive Officer
President
Chief Financial Officer
Related Topics:
Temporary Liquidity Guarantee Program
Attachment:
Final Rule
Contacts:
Donna Saulnier, Manager, Assessment Policy
Section, Division of Finance, (703) 562-6167;
Christopher L. Hencke, Counsel, Legal Division,
(202) 898-8839; or Joe Fellerman, Senior Program
Analyst, Division of Insurance and Research, (202)
898-6591
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2009/index.html.
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:
• Any insured depository institution that is currently
participating in the TAG program may continue in the
program during the extension period that ends on June
30, 2010.
• The annual assessment rate that will apply to
participating institutions during the extension period will
be either 15 basis points, 20 basis points or 25 basis
points, depending on the Risk Category assigned to the
institution under the FDIC’s risk-based premium
system.
• Any institution currently participating in the TAG
program that wishes to opt out of the TAG extension
must submit its opt-out election to the FDIC on or
before November 2, 2009. See page 2 for instructions
on how to opt out.
• Any such election to opt out will be effective on January
1, 2010.
• Every institution currently participating in the TAG
program should review its disclosures and modify them
as necessary to ensure that they will be accurate after
December 31, 2009.
• The maximum interest rate limit for NOW accounts
remains unchanged.
Financial Institution Letters
FIL-48-2009
August 27, 2009
TRANSACTION ACCOUNT GUARANTEE EXTENSION
Third Quarter 2009
On August 26, 2009, the FDIC adopted the attached final rule extending the Transaction
Account Guarantee (TAG) portion of the Temporary Liquidity Guarantee Program for six
months, through June 30, 2010. All insured depository institutions currently participating in
the TAG program may continue in the TAG program during the extension period (i.e,
January 1, 2010, through June 30, 2010). For those institutions that choose to remain in the
program, the fee for the program will be raised and adjusted to reflect the institution’s risk.
TAG Assessment: The annual assessment rate for the TAG program after December 31,
2009, will be raised to either 15 basis points, 20 basis points or 25 basis points, depending on
the Risk Category assigned to an institution in the FDIC’s risk-based premium system. All
institutions participating in the extended TAG program that are assigned to Risk Category I
of the risk-based premium system will be charged an annualized fee of 15 basis points on
their deposits in noninterest-bearing transaction accounts for the portion of the quarter in
which they are assigned to Risk Category I. Institutions in Risk Category II will be charged
an annualized fee of 20 basis points on deposits in noninterest-bearing transaction accounts
for the portion of the quarter in which they are assigned to Risk Category II. Institutions in
either Risk Category III or Risk Category IV will be charged an annualized fee of 25 basis
points on deposits in noninterest-bearing transaction accounts for the portion of the quarter in
which they are assigned to either Risk Category III or Risk Category IV. The fee will apply
to any deposit amounts exceeding the existing deposit insurance limit of $250,000, as
reported on the quarterly Call Report in any noninterest-bearing transaction accounts,
including any such amounts swept from a noninterest-bearing transaction account into a
noninterest-bearing savings deposit account.
One-time Opportunity to Opt Out: Institutions that wish to opt out of the extension period
must do so on or before 11:59 p.m. EST on Monday, November 2, 2009. Any election to opt
out will be effective on January 1, 2010. Any institution that opts out will continue in the
TAG program through December 31, 2009, and must continue to report its TAG deposits
accordingly. To opt out of the TAG extension, an institution must send an email to
dcas@fdic.gov conveying the institution’s election to opt out. The subject line of the email
must include: “TLGP Election Opt Out – Cert. No. _____.” The email must include the
following: (i) institution name; (ii) FDIC certificate number; (iii) city, state and zip code; (iv)
name, telephone number, and email address of a contact person; (v) a statement that the
institution is opting out of the Transaction Account Guarantee program effective January 1,
2010; and (vi) confirmation that no later than November 16, 2009, the institution will post a
prominent notice in the lobby of its main office and each domestic branch and, if it offers
Internet deposit services, on its website clearly indicating that after December 31, 2009,
funds held in noninterest-bearing transaction accounts will no longer be guaranteed in full
2
FIL-48-2009
August 27, 2009
TRANSACTION ACCOUNT GUARANTEE EXTENSION
Third Quarter 2009
On August 26, 2009, the FDIC adopted the attached final rule extending the Transaction
Account Guarantee (TAG) portion of the Temporary Liquidity Guarantee Program for six
months, through June 30, 2010. All insured depository institutions currently participating in
the TAG program may continue in the TAG program during the extension period (i.e,
January 1, 2010, through June 30, 2010). For those institutions that choose to remain in the
program, the fee for the program will be raised and adjusted to reflect the institution’s risk.
TAG Assessment: The annual assessment rate for the TAG program after December 31,
2009, will be raised to either 15 basis points, 20 basis points or 25 basis points, depending on
the Risk Category assigned to an institution in the FDIC’s risk-based premium system. All
institutions participating in the extended TAG program that are assigned to Risk Category I
of the risk-based premium system will be charged an annualized fee of 15 basis points on
their deposits in noninterest-bearing transaction accounts for the portion of the quarter in
which they are assigned to Risk Category I. Institutions in Risk Category II will be charged
an annualized fee of 20 basis points on deposits in noninterest-bearing transaction accounts
for the portion of the quarter in which they are assigned to Risk Category II. Institutions in
either Risk Category III or Risk Category IV will be charged an annualized fee of 25 basis
points on deposits in noninterest-bearing transaction accounts for the portion of the quarter in
which they are assigned to either Risk Category III or Risk Category IV. The fee will apply
to any deposit amounts exceeding the existing deposit insurance limit of $250,000, as
reported on the quarterly Call Report in any noninterest-bearing transaction accounts,
including any such amounts swept from a noninterest-bearing transaction account into a
noninterest-bearing savings deposit account.
One-time Opportunity to Opt Out: Institutions that wish to opt out of the extension period
must do so on or before 11:59 p.m. EST on Monday, November 2, 2009. Any election to opt
out will be effective on January 1, 2010. Any institution that opts out will continue in the
TAG program through December 31, 2009, and must continue to report its TAG deposits
accordingly. To opt out of the TAG extension, an institution must send an email to
dcas@fdic.gov conveying the institution’s election to opt out. The subject line of the email
must include: “TLGP Election Opt Out – Cert. No. _____.” The email must include the
following: (i) institution name; (ii) FDIC certificate number; (iii) city, state and zip code; (iv)
name, telephone number, and email address of a contact person; (v) a statement that the
institution is opting out of the Transaction Account Guarantee program effective January 1,
2010; and (vi) confirmation that no later than November 16, 2009, the institution will post a
prominent notice in the lobby of its main office and each domestic branch and, if it offers
Internet deposit services, on its website clearly indicating that after December 31, 2009,
funds held in noninterest-bearing transaction accounts will no longer be guaranteed in full
2