FDIC Regulations and Parts: Complete Guide to Rules, CFR Sections &
Banking Compliance
Part 303 Filing Procedures: Purpose? - ANS ✔✔Defines filing procedures for submitting to the
FDIC
Part 303 Filing Procedures: - What banks are eligible for Expedited Application Processing? (all
of the following have to apply) - ANS ✔✔o Composite 1 or 2
o Compliance 1 or 2
o Satisfactory or better CRA
o Well-Capitalized
o No Enforcement Action
Part 303 Filing Procedures: - What constitutes as "troubled condition"? - ANS ✔✔o Composite 4
or 5
o 8(a) - Deposit Insurance Termination
o 8 (b) or (c) - C&D to improve financial condition
o FDIC says so
Part 303 Filing Procedures: When must a bank give notice of adding/replacing any Board
member, executive officer, or changing responsibilities of EO to assume different role? How far
in advance must it be given? - ANS ✔✔o A bank must give FDIC notice at least 30 DAYS in
advance if:
§ In "troubled condition"
§ Not in compliance with minimum capital requirements (adequately cap)
,Part 303 Filing Procedures: - What 7 factors are considered for Applications by Proposed or
Newly Organized Banks? - ANS ✔✔o Capital Structure - T1Cap of >8% for 3 years. Initial capital
amount should be in excess of $2MM after consideration for any pre-operating expenses.
o Character of Management - MOST important factor (followed by capital)
o Earnings Prospects
o Financial History and Condition
o Corporate Powers
o Needs of the Community
o Risk Presented to the DIF à only factor unique to applications for newly organized banks. The
other 6 are considered for most other applications.
Part 303 Filing Procedures: What is the minimum fidelity coverage for new banks? - ANS
✔✔$1MM
Part 303 Filing procedures: What is the minimum level of directors for a new bank? - ANS ✔✔5
Part 303 Filing Procedures: When is a change in control application needed? - ANS ✔✔o
Whenever a person/entity seeks to acquire control (25% or more of stock)
o Must apply 60 days in advance
o Include completed and signed Financial Report and Biography
o Factors Considered by FDIC:
§ Competition
§ Competence
§ DIF Risk
§ Experience/Integrity
§ Financial Condition
§ Failure to provide info
§ Monopoly
, Part 303 Filing Procedures: What is included in a brokered deposit waiver? - ANS ✔✔o Period
(time waiver is requested - 2-year max.)
o Statement of Policy (governing use)
o Current & Prospective Volumes
o Cost Structure
o Solicitation & Sources
o MIS Overseeing
o Balance Sheet & IS
o Reasons
Part 303 Filing Procedures: When is a notice of changes in Executive Officers Required? - ANS
✔✔1. charted for less than 2 years
2. change in control within last 2 years
3, not in compliance with capital requirement
4. in troubled condition.
Part 307 Notification of Acquiring Deposits: when and when isnt a certification required? - ANS
✔✔Need a certification whenever all of a bank's deposits are assumed by one or more banks
through merger, consolidation, contract, ect. No certification required if acquired deposits from
defaulted bank
Part 307 Notification of Acquiring Deposits: How many days required to file notif ation after
acquisition? - ANS ✔✔30 days
Part 307 Notification of Acquiring Deposits: - Notice to Depositors when insured status of a bank
is voluntarily terminated and deposits are not assumed required before insured status is
terminated. - ANS ✔✔
Banking Compliance
Part 303 Filing Procedures: Purpose? - ANS ✔✔Defines filing procedures for submitting to the
FDIC
Part 303 Filing Procedures: - What banks are eligible for Expedited Application Processing? (all
of the following have to apply) - ANS ✔✔o Composite 1 or 2
o Compliance 1 or 2
o Satisfactory or better CRA
o Well-Capitalized
o No Enforcement Action
Part 303 Filing Procedures: - What constitutes as "troubled condition"? - ANS ✔✔o Composite 4
or 5
o 8(a) - Deposit Insurance Termination
o 8 (b) or (c) - C&D to improve financial condition
o FDIC says so
Part 303 Filing Procedures: When must a bank give notice of adding/replacing any Board
member, executive officer, or changing responsibilities of EO to assume different role? How far
in advance must it be given? - ANS ✔✔o A bank must give FDIC notice at least 30 DAYS in
advance if:
§ In "troubled condition"
§ Not in compliance with minimum capital requirements (adequately cap)
,Part 303 Filing Procedures: - What 7 factors are considered for Applications by Proposed or
Newly Organized Banks? - ANS ✔✔o Capital Structure - T1Cap of >8% for 3 years. Initial capital
amount should be in excess of $2MM after consideration for any pre-operating expenses.
o Character of Management - MOST important factor (followed by capital)
o Earnings Prospects
o Financial History and Condition
o Corporate Powers
o Needs of the Community
o Risk Presented to the DIF à only factor unique to applications for newly organized banks. The
other 6 are considered for most other applications.
Part 303 Filing Procedures: What is the minimum fidelity coverage for new banks? - ANS
✔✔$1MM
Part 303 Filing procedures: What is the minimum level of directors for a new bank? - ANS ✔✔5
Part 303 Filing Procedures: When is a change in control application needed? - ANS ✔✔o
Whenever a person/entity seeks to acquire control (25% or more of stock)
o Must apply 60 days in advance
o Include completed and signed Financial Report and Biography
o Factors Considered by FDIC:
§ Competition
§ Competence
§ DIF Risk
§ Experience/Integrity
§ Financial Condition
§ Failure to provide info
§ Monopoly
, Part 303 Filing Procedures: What is included in a brokered deposit waiver? - ANS ✔✔o Period
(time waiver is requested - 2-year max.)
o Statement of Policy (governing use)
o Current & Prospective Volumes
o Cost Structure
o Solicitation & Sources
o MIS Overseeing
o Balance Sheet & IS
o Reasons
Part 303 Filing Procedures: When is a notice of changes in Executive Officers Required? - ANS
✔✔1. charted for less than 2 years
2. change in control within last 2 years
3, not in compliance with capital requirement
4. in troubled condition.
Part 307 Notification of Acquiring Deposits: when and when isnt a certification required? - ANS
✔✔Need a certification whenever all of a bank's deposits are assumed by one or more banks
through merger, consolidation, contract, ect. No certification required if acquired deposits from
defaulted bank
Part 307 Notification of Acquiring Deposits: How many days required to file notif ation after
acquisition? - ANS ✔✔30 days
Part 307 Notification of Acquiring Deposits: - Notice to Depositors when insured status of a bank
is voluntarily terminated and deposits are not assumed required before insured status is
terminated. - ANS ✔✔
