Source: http://www.law.cornell.edu/cfr/text/12/360.8?quicktabs_7=2
Timestamp: 2013-12-06 09:23:19
Document Index: 254251943

Matched Legal Cases: ['art 360', '§ 360', '§ 1817', '§ 1818', '§ 1819', '§ 1820', '§ 1821', '§ 1823']

12 CFR 360.8 - Method for determining deposit and other liability account balances at a failed insured depository institution. | Title 12 - Banks and Banking | Code of Federal Regulations | LII / Legal Information Institute
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12 CFR 360.8 - Method for determining deposit and other liability account balances at a failed insured depository institution.
§ 360.8
Method for determining deposit and other liability account balances at a failed insured depository institution.
The purpose of this section is to describe the process the FDIC will use to determine deposit and other liability account balances for insurance coverage and receivership purposes at a failed insured depository institution.
(1) The FDIC Cutoff Point means the point in time the FDIC establishes after it has been appointed receiver of a failed insured depository institution and takes control of the failed institution.
(4) A sweep account is an account held pursuant to a contract between an insured depository institution and its customer involving the pre-arranged, automated transfer of funds from a deposit account to either another account or investment vehicle located within the depository institution (internal sweep account ), or an investment vehicle located outside the depository institution (external sweep account ).
(c) Principles—
(1) In making deposit insurance determinations and in determining the value and nature of claims against the receivership on the institution's date of failure, the FDIC, as insurer and receiver, will treat deposits and other liabilities of the failed institution according to the ownership and nature of the underlying obligations based on end-of-day ledger balances for each account using, except as expressly provided otherwise in this section, the depository institution's normal posting procedures.
(d) Determining closing day balances—
(1) In determining account balances for insurance coverage and receivership purposes at a failed insured depository institution, the FDIC will use Close-of-Business Account Balances.
(e) Disclosure requirements.
Beginning July 1, 2009, in all new sweep account contracts, in renewals of existing sweep account contracts and within sixty days after July 1, 2009, and no less than annually thereafter, institutions must prominently disclose in writing to sweep account customers whether their swept funds are deposits within the meaning of 12 U.S.C. 1813(l). If the funds are not deposits, the institution must further disclose the status such funds would have if the institution failed—for example, general creditor status or secured creditor status. Such disclosures must be consistent with how the institution reports such funds on its quarterly Consolidated Reports of Condition and Income or Thrift Financial Reports. The disclosure requirements imposed under this provision do not apply to sweep accounts where: The transfers are within a single account, or a sub-account; or the sweep account involves only deposit-to-deposit sweeps, such as zero-balance accounts, unless the sweep results in a change in the customer's insurance coverage.
Title 12 published on 2013-01-01no entries appear in the Federal Register after this date. This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.United States CodeUSC : Title 12 - BANKS AND BANKING§ 1817 - Assessments§ 1818 - Termination of status as insured depository institution§ 1819 - Corporate powers§ 1820 - Administration of Corporation§ 1821 - Insurance Funds§ 1823 - Corporation monies