12 C.F.R. Subpart B—Insured Depository Institutions Participating in Section 5(d)(3) Transactions
Title 12 - Banks and Banking
(a) Affected institutions. This subpart B applies to any insured depository institution that: (1) Is either a BIF or SAIF member; and (2) Is the assuming, surviving, or resulting institution in a transaction undertaken pursuant to section 5(d)(3) of the Federal Deposit Insurance Act. (b) Duration. This subpart B shall cease to apply to an insured depository institution if: (1) On or after August 9, 1994, the Corporation approves an application by an insured depository institution to treat the transaction described in paragraph (a) of this section as a conversion transaction; and (2) The insured depository institution pays the amount of any exit and entrance fee assessed by the Corporation with respect to such transaction. [57 FR 45286, Oct. 1, 1992, as amended at 59 FR 67165, Dec. 29, 1994] (a) Rate of assessment—(1) BIF and SAIF member rates. (i) Except as provided in paragraph (a)(2) of this section, and consistent with the provisions of §327.4, the assessment to be paid by an institution that is subject to this subpart B shall be computed at the rate applicable to institutions that are members of the primary fund of such institution. (ii) Such applicable rate shall be applied to the institution's assessment base less that portion of the assessment base which is equal to the institution's adjusted attributable deposit amount. (2) Rate applicable to the adjusted attributable deposit amount. Notwithstanding paragraph (a)(1)(i) of this section, that portion of the assessment base of any acquiring, assuming, or resulting institution which is equal to the adjusted attributable deposit amount of such institution shall: (i) Be subject to assessment at the assessment rate applicable to members of the secondary fund of such institution pursuant to subpart A of this part; and (ii) Not be taken into account in computing the amount of any assessment to be allocated to the primary fund of such institution. (3) Adjusted attributable deposit amount. An insured depository institution's “adjusted attributable deposit amount” for any semiannual period is equal to the sum of: (i) The amount of any deposits acquired by the institution in connection with the transaction (as determined at the time of such transaction) described in §327.31(a), but subject to the adjustment specified in paragraph (c) of this section; (ii) The total of the amounts determined under paragraph (a)(3)(iii) of this section for semiannual periods preceding the semiannual period for which the determination is being made under this section; and (iii) The amount by which the sum of the amounts described in paragraphs (a)(3)(i) and (a)(3)(ii) of this section would have increased during the preceding semiannual period (other than any semiannual period beginning before the date of such transaction) if such increase occurred at a rate equal to the annual rate of growth of deposits of the acquiring, assuming, or resulting depository institution minus the amount of any deposits acquired through the acquisition, in whole or in part, of another insured depository institution. (4) Deposits acquired by the institution. As used in paragraph (a)(3)(i) of this section, the term “deposits acquired by the institution” means all deposits that are held in the institution acquired by such institution on the date of such transaction; provided, that if on or before June 30, 1997, the Corporation has been appointed or serves as conservator or receiver for the acquired institution, such term: (i) Does not include any deposit held in the acquired institution on the date of such transaction which the acquired institution has obtained, directly or indirectly, by or through any deposit broker; (ii) Does not include that part of any remaining deposit held in the acquired institution on the date of such transaction that is in excess of $80,000; and (iii) Is limited to 80 per centum of the remaining portion of the aggregate of the deposits specified in paragraph (a)(4)(ii) of this section. (5) Deposit broker. As used in paragraph (a)(4) of this section, the term “deposit broker” has the meaning specified in section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f). (b) Procedures for computation and payment. An insured depository institution subject to this subpart B shall follow the payment procedure that is set forth in subpart A of this part. (c) Reduction of deposits acquired by certain institutions. In the case of a transaction occurring on or before March 31, 1995, the amount determined under paragraph (a)(3)(i) of this section shall be reduced by 20 percent for the purpose of computing the adjusted attributable deposit amount for any semiannual period beginning after December 31, 1996, of a BIF member bank that, as of June 30, 1995: (1) Had an adjusted attributable deposit amount the value of which was less than 50 percent of the amount of its total deposits; or (2)(i) Had an adjusted attributable deposit amount the value of which was less than 75 percent of the value of its total deposits; (ii) Had total deposits greater than $5,000,000,000; and (iii) Was owned or controlled by a bank holding company that owned or controlled insured depository institutions having an aggregate amount of deposits insured or treated as insured by the BIF greater than the aggregate amount of deposits insured or treated as insured by the SAIF. [59 FR 67165, Dec. 29, 1994, as amended at 61 FR 53839, Oct. 16, 1996; 61 FR 64983, Dec. 10, 1996] This section interprets the phrase “deposits acquired by the institution” as used in §327.32(a)(3)(i). (a) In general—(1) Secondary-fund deposits. The phrase “deposits acquired by the institution” refers to deposits that are insured by the secondary fund of the acquiring institution, and does not include deposits that are insured by the acquiring institution's primary fund. (2) Nominal dollar amount. Except as provided in paragraph (b) of this section, an acquiring institution is deemed to acquire the entire nominal dollar amount of any deposits that the transferring institution holds on the date of the transaction and transfers to the acquiring institution. (b) Conduit deposits—(1) Defined. As used in this paragraph (b), the term “conduit deposits” refers to deposits that an acquiring institution has assumed from another institution (original transferor) in the course of a transaction described in §327.31(a), and that are treated as insured by the secondary fund of the acquiring institution, but which the acquiring institution has been explicitly and specifically ordered by the Corporation, or by the appropriate federal banking agency for the institution, or by the Department of Justice to commit to re-transfer to another insured depository institution (re-transferee institution) as a condition of approval of the transaction. The commitment must be enforceable, and the divestiture must be required to occur and must occur within 6 months after the date of the initial transaction. (2) Treatment with respect to acquiring institution. Conduit deposits are not considered to be acquired by the acquiring institution within the meaning of §327.32(a)(3)(i) for the purpose of computing the acquiring institution's adjusted attributable deposit amount for a current semiannual period that begins after the end of the semiannual period following the semiannual period in which the acquiring institution re-transfers the deposits. (3) Treatment with respect to re-transferee institution. Conduit deposits are treated as insured by the same insurance fund after having been acquired by the re-transferee institution as when held by the original transferor. [61 FR 64983, Dec. 10, 1996] This section interprets the meaning of the phrase “an insured depository institution's ‘adjusted attributable deposit amount’ for any semiannual period” as used in the introductory text of §327.32(a)(3). (a) In general. The phrase “for any semiannual period” refers to the current semiannual period: that is, the period for which the assessment is due, and for which an institution's adjusted attributable deposit amount (AADA) is computed. (b) Quarterly components of AADAs. An AADA for a current semiannual period consists of 2 quarterly AADA components. The first quarterly AADA component for the current period is determined with respect to the first quarter of the prior semiannual period, and the second quarterly AADA component for the current period is determined with respect to the second quarter of the prior period. (c) Application of AADAs. The value of an AADA that is to be applied to a quarterly assessment base in accordance with §327.32(a)(2) is the value of the quarterly AADA component for the corresponding quarter. (d) Initial AADAs. If an AADA for a current semiannual period has been generated in a transaction that has occurred in the second calendar quarter of the prior semiannual period, the first quarterly AADA component for the current period is deemed to have a value of zero. (e) Transition rule. Paragraphs (b), (c) and (d) of this section shall apply to any AADA for any semiannual period beginning on or after July 1, 1997. [61 FR 64984, Dec. 10, 1996] This section explains the meaning of the phrase “total of the amounts determined under paragraph (a)(3)(iii)” in §327.32(a)(3)(ii). The phrase “total of the amounts determined under paragraph (a)(3)(iii)” refers to the aggregate of the increments of growth determined in accordance with §327.32(a)(3)(iii). Each such increment is deemed to be computed in accordance with the contemporaneous provisions and interpretations of such section. Accordingly, any increment of growth that is computed with respect to a semiannual period has the value appropriate to the proper calculation of the institution's assessment for the semiannual period immediately following such semiannual period. [61 FR 64984, Dec. 10, 1996] This section interprets various phrases used in the computation of growth as prescribed in §327.32(a)(3)(iii). (a) Annual rate. The annual rate of growth of deposits refers to the rate, which may be expressed as an annual percentage rate, of growth of an institution's deposits over any relevant interval. A relevant interval may be less than a year. (b) Growth; increase; increases. Except as provided in paragraph (c) of this section, references to “growth”, “increase”, and “increases” may generally include negative values as well as positive ones. (c) Growth of deposits. “Growth of deposits” does not include any decrease in an institution's deposits representing deposits transferred to another insured depository institution, if the transfer occurs on or after July 1, 1996. (d) Quarterly determination of growth. For the purpose of computing assessments for semiannual periods beginning on July 1, 1997, and thereafter, the rate of growth of deposits for a semiannual period, and the amount by which the sum of the amounts specified in §327.32(a)(3)(i) and (ii) would have grown during a semiannual period, is to be determined by computing such rate of growth and such sum of amounts for each calendar quarter within the semiannual period. [61 FR 64984, Dec. 10, 1996] This section explains the attribution of deposits to the BIF and the SAIF when one insured depository institution (acquiring institution) acquires deposits from another insured depository institution (transferring institution). For the purpose of determining whether the assumption of deposits (assumption transaction) constitutes a transaction undertaken pursuant to section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)), and for the purpose of computing the adjusted attributable deposit amounts, if any, of the acquiring and the transferring institutions after the transaction: (a) Transferring institution—(1) Transfer of primary-fund deposits. To the extent that the aggregate volume of deposits that is transferred by a transferring institution in a transaction, or in a related series of transactions, does not exceed the volume of deposits that is insured by its primary fund (primary-fund deposits) immediately prior to the transaction (or, in the case of a related series of transactions, immediately prior to the initial transaction in the series), the transferred deposits shall be deemed to be insured by the institution's primary fund. The primary institution's volume of primary-fund deposits shall be reduced by the aggregate amount so transferred. (2) Transfer of secondary-fund deposits. To the extent that the aggregate volume of deposits that is transferred by the transferring institution in a transaction, or in a related series of transactions, exceeds the volume of deposits that is insured by its primary fund immediately prior to the transaction (or, in the case of a related series of transactions, immediately prior to the initial transaction in the series), the following volume of the deposits so transferred shall be deemed to be insured by the institution's secondary fund (secondary-fund deposits): the aggregate amount of the transferred deposits minus that portion thereof that is equal to the institution's primary-fund deposits. The transferring institution's volume of secondary-fund deposits shall be reduced by the volume of the secondary-fund deposits so transferred. (b) Acquiring institution. The deposits shall be deemed, upon assumption by the acquiring institution, to be insured by the same fund or funds in the same amount or amounts as the deposits were so insured immediately prior to the transaction. [61 FR 64984, Dec. 10, 1996]
Title 12: Banks and Banking
PART 327—ASSESSMENTS
Subpart B—Insured Depository Institutions Participating in Section 5(d)(3) Transactions
§ 327.31 Scope.
§ 327.32 Computation and payment of assessment.
§ 327.33 “Acquired” deposits.
§ 327.34 Application of AADAs.
§ 327.35 Grandfathered AADA elements.
§ 327.36 Growth computation.
§ 327.37 Attribution of transferred deposits.
