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 

1FDI 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withdrawn. 

3This 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 

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. 

5Public 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)). 

7Public Law 104–208, Sept. 30, 1996, 12 U.S.C. 

3311. 

8The 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 

Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Proposed Rules 60017 

9The 1997 proposed rule would have provided 

that the FDIC would generally issue an order 

terminating the insured status of an institution that 

transferred all of its deposits. 

10The transfer of the charter would require prior 

approval under the Bank Merger Act or the Change 

in Bank Control Act. 

be considered satisfactory evidence of 

the assumption.’’ Proposed section 

307.2(d) makes a similar statement for 

accurate certifications that have been 

made consistent with the requirements 

of proposed section 307.2 (a), (b) and 

(c). The term ‘‘accurate’’ has been added 

to indicate that a materially inaccurate 

certification would not trigger the 

automatic termination of the 

transferring institution’s insured status. 

The proposed section 307.2(d) would 

also allow the FDIC to consider other 

evidence, in addition to a certification, 

of a total deposit assumption to 

constitute satisfactory evidence of an 

assumption for the purposes of section 

8(q). 

Issuance of an Order. Section 8(q) can 

be construed as automatically 

terminating an institution’s insured 

status upon the FDIC’s receipt of 

satisfactory evidence of a total 

assumption. The FDIC did not generally 

issue orders terminating the insured 

status of transferring institutions before 

1983 when the rule was last revised, 

and the current section 307.1 does not 

discuss the issuance of such orders.9 In 

most cases of total deposit assumptions, 

the transferring institution’s authority to 

engage in banking is contemporaneously 

cancelled. In such a situation, an FDIC 

order confirming the termination of 

insurance has no practical effect and is 

unnecessary. Accordingly, under the 

proposed rule no order confirming the 

termination of an institution’s insured 

status would generally be issued when 

the transferring institution’s authority to 

engage in banking is cancelled 

contemporaneously (i.e., generally 

within five business days after all 

deposits have been assumed). The 

proposed rule also would not require 

orders when deposits are transferred 

and assumed after a default when the 

FDIC has been appointed as receiver. 

The proposed rule would provide for 

the issuance of an FDIC order 

confirming the termination of the 

insured status of a transferring 

institution in the relatively limited 

circumstance in which a total transfer of 

deposit liabilities has occurred but the 

transferring institution’s charter is not 

contemporaneously cancelled. Absent 

the entry of an order confirming the 

termination of insured status, an 

institution in such a situation might 

attempt to resume accepting deposits 

sometime after the assumption 

transaction occurs; an institution might 

also attempt to sell its charter, which 

could allow what is in fact a new entity 

to conduct banking operations without 

always requiring FDIC review and 

approval.10

D. Section 307.3—Notice to Depositors 

When Insurance Is Voluntarily 

Terminated and Deposits Are Not 

Assumed 

As noted earlier, a bank that has 

obtained the FDIC’s permission under 

sections 8(a), 8(p) or 18(i)(3) of the FDI 

Act to terminate its insured status 

without transferring all of its deposits to 

an FDIC insured institution is required 

by the current section 307.2 to provide 

notice to each of its depositors. A copy 

of this notice must be provided to and 

approved by the appropriate Regional 

Director of the Division of Supervision 

and Consumer Protection prior to the 

notice being distributed to the 

institution’s depositors. The proposed 

rule would clarify that the notice must 

be on the institution’s letterhead, signed 

by a duly authorized officer and sent to 

the depositor’s last known address on 

the institution’s books. To assist the 

industry with compliance, the proposed 

rule provides a template (Appendix B) 

that may be used to satisfy with 

proposed section 307.3 certification 

requirements. 

III. Regulatory Analysis and Procedure 

A. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act (44 U.S.C. 3501 et seq.) 

the FDIC may not conduct or sponsor, 

and a person is not required to respond 

to, a collection of information unless it 

displays a currently valid Office of 

Management and Budget (OMB) control 

number. The collection of information 

contained in this proposed rule has 

been submitted to OMB for review. 

ADDRESSES: Interested parties are 

invited to submit written comments to 

the FDIC concerning the Paperwork 

Reduction Act implications of this 

proposal. Such comments should refer 

to ‘‘Notification of Changes of Insured 

Status, 3064–0124.’’ Comments on 

Paperwork Reduction Act issues may be 

submitted by any of the following 

methods: 

• http://www.FDIC.gov/regulations/ 

laws/federal/propose.html. 

• E-mail: comments@FDIC.gov. 

Include ‘‘Notification of Changes of 

Insured Status, 3064–0124’’ in the 

subject line of the message. 

• Mail: Thomas Nixon (202–898–

8766), Counsel, Federal Deposit 

Insurance Corporation, 550 17th Street, 

NW., Washington, DC 20429. 

• Hand Delivery: Comments may be 

hand-delivered to the guard station at 

the rear of the 17th Street Building 

(located on F Street), on business days 

between 7 a.m. and 5 p.m. 

• A copy of the comments may also 

be submitted to the OMB desk officer for 

the FDIC: Mark Menchik, Office of 

Information and Regulatory Affairs, 

Office of Management and Budget, New 

Executive Office Building, Room 3208, 

Washington, DC 20503, or by electronic 

mail to mmenchik@omb.eop.gov. 

Comment is solicited on: 

(1) Whether the proposed collection 

of information is necessary for the 

proper performance of the functions of 

the agency, including whether the 

information will have practical utility; 

(2) The accuracy of the agency’s 

estimate of the burden of the proposed 

collection of information, including the 

validity of the methodology and 

assumptions used; 

(3) The quality, utility, and clarity of 

the information to be collected; and 

(4) Ways to minimize the burden of 

the collection of information on those 

who are to respond, including the use 

of appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology; e.g., permitting 

electronic submission of responses. 

(5) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchases of services 

to provide information. 

Title of the collection: The proposed 

rule will modify an information 

collection previously approved by OMB 

titled ‘‘Notification of Changes of 

Insured Status’’ under control number 

3064–0124. The collection’s title would 

be changed to ‘‘Certification of 

Assumption of Deposits and 

Notification of Changes of Insured 

Status.’’

Summary of the current collection: 

The collection consists of two parts: a 

certification that an insured depository 

institution provides when it has 

assumed the deposit liabilities of 

another insured institution; and a 

notification to depositors that an 

insured institution provides if it has 

obtained FDIC approval to voluntarily 

terminate its insured status without an 

assumption of deposits. 

Need and use of the information: The 

certification is required to implement 

section 8(q) of the FDI Act to determine 

when the insured status of an institution 

is terminated based on an assumption of 

its deposits. The depositor notification, 

required by Part 307 informs depositors 

60018 Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Proposed Rules 

that the insured status of their deposits 

in the institution will terminate. 

Proposed changes to the collection: 

The proposed rule will modify the 

collection by eliminating certifications 

of assumption for partial assumptions of 

deposits and will require certifications 

to be made by the transferring 

institution rather than the assuming 

institution. No changes are proposed in 

the notice to depositors. 

Respondents: Insured depository 

institutions. 

Frequency of response: Occasional. 

Annual burden estimate: Number of 

certifications: 280; number of depositor 

notices: 5. Average time to prepare a 

certification: one quarter hour; depositor 

notice: 1 hour. Total annual burden: 75 

hours. 

B. Regulatory Flexibility Act 

Pursuant to section 605(b) of the 

Regulatory Flexibility Act (5 U.S.C. 601 

et seq.) the FDIC certifies that this 

proposed rule will not have a significant 

economic impact on a substantial 

number of small entities. The proposed 

rule would reduce regulatory burden by 

eliminating the need for a certification 

to be filed with the FDIC when the 

liability for some, but not all, of the 

deposits of an insured institution are 

transferred to another institution. A 

certification requires a minimal amount 

of time and resources since it reports 

information readily available to the 

institution making the certification. 

List of Subject in 12 CFR Part 307 

Bank deposit insurance, Reporting 

and recordkeeping requirements. 

The Board of Directors of the Federal 

Deposit Insurance Corporation hereby 

proposes to revise Part 307 of Title 12 

of the Code of Federal Regulations to 

read as follows: 

PART 307—CERTIFICATION OF 

ASSUMPTION OF DEPOSITS AND 

NOTIFICATION OF CHANGES OF 

INSURED STATUS 

Sec. 

307.1 Scope and purpose. 

307.2 Certification of assumption of deposit 

liabilities. 

307.3 Notice to depositor when insured 

status is voluntarily terminated and 

deposits are not assumed. 

Appendix A to Part 307—[Transferring 

Institution Letterhead] 

Appendix B to Part 307—[Institution 

Letterhead] 

Authority: 12 U.S.C. 1818(a)(6); 1818(q); 

and 1819(a) [Tenth]. 

§ 307.1 Scope and purpose. 

(a) Scope. This Part applies to all 

insured depository institutions, as 

defined in section 3(c)(2) of the Federal 

Deposit Insurance Act (FDI Act) (12 

U.S.C. 1813(c)(2)). 

(b) Purpose. This Part sets forth the 

rules governing: (1) The time and 

manner for providing certification to the 

FDIC regarding the assumption of all of 

the deposit liabilities of an insured 

depository institution by one or more 

insured depository institutions; and (2) 

The notification that an insured 

depository institution shall provide its 

depositors when a depository 

institution’s insured status is being 

voluntarily terminated without its 

deposits being assumed by one or more 

insured depository institutions. 

§ 307.2 Certification of assumption of 

deposit liabilities. 

(a) When certification is required. 

Whenever all of the deposit liabilities of 

an insured depository institution are 

assumed by one or more insured 

depository institutions by merger, 

consolidation, other statutory 

assumption, or by contract, the 

transferring insured depository 

institution, or its legal successor, shall 

provide an accurate written certification 

to the FDIC that its deposit liabilities 

have been assumed. No certification 

shall be required when deposit 

liabilities are assumed by an operating 

insured depository institution from an 

insured depository institution in 

default, as defined in section 3(x)(1) of 

the FDI Act (12 U.S.C. 1813(x)(1)), and 

that has been placed under FDIC 

receivership. 

(b) Certification requirements. The 

certification required by paragraph (a) of 

this section shall be provided on official 

letterhead of the transferring insured 

depository institution or its legal 

successor, signed by a duly authorized 

official, and state the date the 

assumption took effect. The certification 

shall indicate the date on which the 

transferring institution’s authority to 

engage in banking has terminated or 

will terminate as well as the method of 

termination (e.g., whether by the 

surrender of its charter, by the 

cancellation of its charter or license to 

conduct a banking business, or 

otherwise). The certification may follow 

the form contained in appendix A of 

this part. In a merger or consolidation 

where there is only one surviving entity 

which is the legal successor to both the 

transferring and assuming institutions, 

the surviving entity shall provide any 

required certification. 

(c) Filing. The certification required 

by paragraph (a) of this section shall be 

provided within 30 calendar days after 

the assumption takes effect, and shall be 

submitted to the appropriate Regional 

Director of the FDIC’s Division of 

Supervision and Consumer Protection, 

as defined in 12 CFR 303.2(g). 

(d) Evidence of assumption. The 

receipt by the FDIC of an accurate 

certification for a total assumption as 

required by paragraphs (a), (b) and (c) of 

this section shall constitute satisfactory 

evidence of such deposit assumption, as 

required by section 8(q) of the FDI Act 

(12 U.S.C. 1818(q)), and the insured 

status of the transferring institution 

shall terminate on the date of the receipt 

of the certification. In appropriate 

circumstances, the FDIC, in its sole 

discretion, may require additional 

information, or may consider other 

evidence of a deposit assumption to 

constitute satisfactory evidence of such 

assumption for purposes of section 8(q). 

(e) Issuance of an order. The 

Executive Secretary, upon request from 

the Director of the Division of 

Supervision and Consumer Protection 

and with the concurrence of the General 

Counsel, or their respective designees, 

shall issue an order confirming that the 

insured status of the transferring 

insured depository institution has been 

terminated as of the date of receipt by 

the FDIC of satisfactory evidence of 

such assumption, pursuant to section 

8(q) of the FDI Act and this regulation. 

Generally, no order shall be issued, 

under this paragraph, and insured status 

shall be cancelled by operation of law: 

(1) If the charter of the transferring 

institution has been cancelled, revoked, 

rescinded, or otherwise terminated by 

operation of applicable state or federal 

statutes or regulations, or by action of 

the chartering authority for the 

transferring institution essentially 

contemporaneously, that is, generally 

within five business days after all 

deposits have been assumed; or 

(2) If the transferring institution is an 

insured depository institution in default 

and for which the FDIC has been 

appointed receiver. 

§ 307.3 Notice to depositors when insured 

status is voluntarily terminated and 

deposits are not assumed. 

(a) Notice required. An insured 

depository institution that has obtained 

authority from the FDIC to terminate its 

insured status under sections 8(a), 8(p) 

or 18(i)(3) of the FDI Act without its 

deposit liabilities being assumed by one 

or more insured depository institutions, 

shall provide to each of its depositors, 

at the depositor’s last known address of 

record on the books of the institution, 

prior written notification of the date the 

institution’s insured status shall 

terminate. 

(b) Prior approval of notice. The 

insured depository institution shall 

Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Proposed Rules 60019 

1 Generally, an operating subsidiary is a majorityowned subsidiary of a bank or savings association 

that engages only in activities that its parent bank 

or savings association may engage in. 

provide the appropriate Regional 

Director of the FDIC’s Division of 

Supervision and Consumer Protection, 

as defined in 12 CFR 303.2(g), a copy of 

the proposed notice for approval. After 

being approved, the notice shall be 

provided to depositors by the insured 

depository institution at the time and in 

the manner specified by the appropriate 

Regional Director. 

(c) Form of notice. The notice to 

depositors required by paragraph (a) of 

this section shall be provided on the 

official letterhead of the insured 

depository institution, shall bear the 

signature of a duly authorized officer, 

and, unless otherwise specified by the 

appropriate Regional Director, may 

follow the form of the notice contained 

in appendix B of this part. 

(d) Other requirements possible. The 

FDIC may require the insured 

depository institution to take such other 

actions as the FDIC considers necessary 

and appropriate for the protection of 

depositors. 

Appendix A to Part 307—[Transferring 

Institution Letterhead] 

[Date] 

[Name and Address of appropriate FDIC 

Regional Director] 

SUBJECT: Certification of Total Assumption 

of Deposits 

This certification is being provided 

pursuant to 12 U.S.C. 1818(q) and 12 CFR 

307.2. On [state the date the deposit 

assumption took effect], [state the name of 

the depository institution assuming the 

deposit liabilities] assumed all of the deposits 

of [state the name and location of the 

Transferring Institution whose deposits were 

assumed]. [If applicable, state the date and 

method by which the transferring 

institution’s authority to engage in banking 

was or will be terminated.] Please contact the 

undersigned, at [telephone number], if 

additional information is needed. 

Sincerely, 

By: 

[Name and Title of Authorized 

Representative] 

Appendix B to Part 307—[Institution 

Letterhead] 

[Date] 

[Name and Address of Depositor] 

SUBJECT: Notice to Depositor of Voluntary 

Termination of Insured Status 

The insured status of [name of insured 

depository institution] under the provisions 

of the Federal Deposit Insurance Act, will 

terminate as of the close of business on [state 

the date] (‘‘termination date’’). Insured 

deposits in the [name of insured depository 

institution] on the termination date, less all 

withdrawals from such deposits made 

subsequent to that date, will continue to be 

insured by the Federal Deposit Insurance 

Corporation, to the extent provided by law, 

until [state the date]. The Federal Deposit 

Insurance Corporation will not insure any 

new deposits or additions to existing 

deposits made by you after the termination 

date. 

This Notice is being provided pursuant to 

12 U.S.C. 1818(a)(6) and 12 CFR 307.3. 

Please contact [name of institution official 

in charge of depositor inquiries], at [name 

and address of insured depository 

institution] if additional information is 

needed regarding this Notice or the insured 

status of your account(s). 

Sincerely, 

By: [Name and Title of Authorized 

Representative] 

By order of the Board of Directors, at 

Washington DC on this 6th day of October, 

2005. 

Federal Deposit Insurance Corporation. 

Valerie J. Best, 

Assistant Executive Secretary. 

[FR Doc. 05–20590 Filed 10–13–05; 8:45 am] 

BILLING CODE 6714–01–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Parts 331 and 362 

RIN 3064–AC95 

Interstate Banking; Federal Interest 

Rate Authority 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The FDIC received a petition 

for rulemaking to preempt certain state 

laws with the stated purpose of 

establishing parity between national 

banks and state-chartered banks in 

interstate activities and operations. The 

petition also requested rulemaking to 

implement the interest rate authority 

contained in the Federal Deposit 

Insurance Act. Generally, the requested 

rules would provide that the home state 

law of a state bank applies to the 

interstate activities of the bank and its 

operating subsidiaries to the same 

extent that the National Bank Act 

applies to the interstate activities of a 

national bank and its operating 

subsidiaries. They would also 

implement the federal statutory 

provisions addressing interest charged 

by FDIC-insured state banks and insured 

U.S. branches of foreign banks. The 

FDIC is requesting comments on a 

proposed rule to amend the FDIC’s 

regulations in response to the 

rulemaking petition. Issuance of the 

proposed rules would serve as the 

FDIC’s response to the rulemaking 

petition. 

DATES: Comments must be submitted on 

or before December 13, 2005. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• Agency Web site: http:// 

www.FDIC.gov/regulations/laws/ 

federal/propose.html. Follow the 

instructions for submitting comments. 

• E-mail: comments@FDIC.gov. 

• Mail: Robert E. Feldman, Executive 

Secretary, Attention: Comments/Legal 

ESS, Federal Deposit Insurance 

Corporation, 550 17th Street, NW., 

Washington, DC 20429. 

• Hand Delivered/Courier: The guard 

station at the rear of the 550 17th Street 

Building (located on F Street), on 

business days between 7 a.m. and 5 p.m. 

• Public Inspection: 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. 

• Internet Posting: Comments 

received will be posted without change 

to http://www.FDIC.gov/regulations/ 

laws/federal/propose.html, including 

any personal information provided. 

FOR FURTHER INFORMATION CONTACT: 

Robert C. Fick, Counsel, (202) 898–8962; 

Rodney D. Ray, Counsel, (202) 898–

3556; or Joseph A. DiNuzzo, Counsel, 

(202) 898–7349; Legal Division, Federal 

Deposit Insurance Corporation, 

Washington, DC 20429. 

SUPPLEMENTARY INFORMATION: 

I. The Petition 

The Financial Services Roundtable, a 

trade association for integrated financial 

services companies (‘‘Petitioner’’), has 

petitioned the FDIC to adopt rules 

concerning the interstate activities of 

insured state banks and their 

subsidiaries that are intended to provide 

parity between state banks and national 

banks. Generally, the requested rules 

would provide that a state bank’s home 

state law governs the interstate activities 

of state banks and their operating 

subsidiaries (‘‘Op Subs’’) 1 to the same 

extent that the National Bank Act 

(‘‘NBA’’) governs a national bank’s 

interstate business. The Petitioner 

requests that the FDIC adopt rules with 

respect to the following areas: 

• The law applicable to activities 

conducted in a host state by a state bank 

that has a branch in that state, 

• The law applicable to activities 

conducted by a state bank in a state in 

which the state bank does not have a 

branch, 

• The law applicable to activities 

conducted by an Op Sub of a state bank,