An Act to provide for a simpler method of determining assessments under the Federal Deposit Insurance Act, and for other purposes
PL 86-671 (H.R.12465), enacted 07/14/1960

546 
PUBLIC LAW 86-671-JULY 14, 1960 
[74 STAT. 
Public Law 86-671 
July 14, 1960 
AN ACT 
'• 
• 
46 J 
jj^ provide for a simpler method of determining assessments under the Federal 
Deposit Insurance Act, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
Federal Deposit JJnited States of America in Congress assembled, That subsection (1) 
^eiid'ment.^ 
*
"
*
' of sectioii 3 of the Federal Deposit Insurance Act, as amended (12 
64 Stat. 874. 
IT.S.C. 1813 (1)), is amended to read as follows: 
" (1) The term 'deposit' means— 
" (1) the unpaid balance of money or its equivalent received or 
held by a bank in the usual course of business and for which it 
has given or is obligated to give credit, either conditionally or 
unconditionally, to a commercial, checking, savings, time, or 
thrift account, or which is evidenced by its certificate of deposit, 
or a check or draft drawn against a deposit account and certified 
by the bank, or a letter of credit or a traveler's check on which the 
bank is primarily liable: Provided^ That, without limiting the 
generality of the term 'money or its equivalent', any such account 
or instrument must be regarded as evidencing the receipt of the 
equivalent of money when credited or issued in exchange for 
checks or drafts or for a promissory note upon which the person 
obtaining any such credit or instrument is primarily or second-
arily liable, or for a charge against a deposit account, or in settle-
ment of checks, drafts, or other instruments forwarded to such 
bank for collection, 
" (2) trust funds as defined in this Act received or held by such 
bank, whether held in the trust department or held or deposited 
in any other department of such bank, 
"(3) money received or held by a bank, or the credit given for 
money or its equivalent received or held by a bank, in the usual 
course of business for a special or specific purpose, regardless of 
the legal relationship thereby established, including without being 
limited to, escrow funds, funds held as security for an obligation 
due to the bank or others (including funds held as dealers 
reserves) or for securities loaned by the bank, funds deposited by 
a debtor to meet maturing obligations, funds deposited as advance 
payment on subscriptions to United States Government securities, 
funds held for distribution or purchase of securities, funds held 
to meet its acceptances or letters of credit, and withheld taxes: 
Provided, 
That there shall not be included funds which are 
received by the bank for immediate application to the reduction 
of an indebtedness to the receiving bank, or under condition that 
the receipt thereof immediately reduces or extinguishes such an 
indebtedness, 
"(4) outstanding draft (including advice or authorization to 
charge bank's balance in another bank), cashier's check, money 
order, or other officer's check issued in the usual course of business 
for any purpose, including without being limited to those issued 
in payment for services, dividends, or purchases, and 
"(5) such other obligations of a bank as the Board of Direc-
tors, after consultation with the Comptroller of the Currency and 
the Board of Governors of the Federal Reserve System, shall find 
and prescribe by regulation to be deposit liabilities by general 
usage: Provided further, That any obligation of a bank which is 
payable only at an office of the bank located outside of the States 
of the United States, the District of Columbia, Puerto Rico, 
Guam, and the Virgin Islands, shall not be a deposit for any of 
state nonmember 
banks. 
74 S T A T . ] 
PUBLIC LAW 86-671-JULY 14, 1960 
547 
the purposes of this Act or be included as part of total deposits 
or of an insured deposit." 
SEC. 2. Subsections (a), (b), and (c) of section 7 of the Federal 
Deposit Insurance Act (12 TJ.S.C. 1817 (a), (b), and (c)) are 
amended to read as follows: 
"(a)(1) Each insured State nonmember bank (except a District 
bank) shall make to the Corporation reports of condition which shall 
Reports, 
be in such form and shall contain such information as the Board of 
Directors may require. Such reports shall be made to the Corporation 
on the dates selected as provided in parag:raph (3) of this subsection 
and the deposit liabilities shall be reported therein in accordance with 
and pursuant to paragraphs (4) and (5) of this subsection. 
The 
Board of Directors may call for additional reports of condition on 
dates to be fixed by it and may call for such other reports as the 
Board may from time to time require. The Board of Directors may 
require reports of condition to be published in such manner, not in-
consistent with any applicable law, as it may direct. Every such bank 
which fails to make or publish any such report within ten days shall 
be subject to a penalty of not more than $100 for each day of such 
failure recoverable by the Corporation for its use. 
"(2) The Corporation shall have access to reports of examination 
made by, and reports of condition made to, the Comptroller of the 
(\nTency or any Federal Reserve bank and to all revisions of reports 
of condition made to either of them, and they shall promptly advise 
the (Corporation of any revisions or changes in respect to deposit 
liabilities made or required to be made in any report of condition. 
The Corporation may accept any report made by or to any commission, 
board, or authority having supervision of a State nonmember bank 
(except a District bank), and may furnish to the Comptroller of the 
Currency, to any Federal Reserve bank, and to any such commission, 
board, or authority, reports of examinations made on behalf of, and 
reports of condition made to, the Corporation. 
" (3) Each insured State nonmember bank (except a District bank) 
shall make to the Corporation, each insured national bank and each 
insured District bank shall make to the Comptroller of the Currency, 
and each insured State member bank shall make to the Federal 
Reserve bank of which it is a member, four reports of condition 
annually upon dates which shall be selected by the Chairman of the 
Board of Directors, the Comptroller of the Currency, and the Chair-
man of the Board of Governors of the Federal Reserve System, 
or a majority thereof. The dates selected shall be the same tor all 
insured banks, except that when any of said reporting dates is a 
nonbusiness day for any bank, the preceding business day shall be 
its reporting date. 
Two dates shall be selected within the semi-
annual period of January to June inclusive, and the reports on such 
dates shall be the basis for the certified statement to be filed in July 
pursuant to subsection (c) of this section, and two dates shall be 
selected within the semiannual period of July to December inclusive, 
and the reports on such dates shall be the basis for the certified 
statement to be filed in January pursuant to subsection (c) of this 
section. The deposit liabilities shall be reported in said reports of 
condition in accordance with and pursuant to paragraphs (4) and 
(5) of this subsection, and such other information shall be reported 
therein as may be required by the respective agencies. Each said 
report of condition shall contain a declaration by the president, a vice 
president, the cashier or the treasurer, or by any other officer desig-
nated by the board of directors or trustees of the reporting bank to 
make such declaration, that the report is true and correct to the best 
of his knowledge and belief. The correctness of said report of con-
548 
PUBLIC LAW 86-671-JULY 14, 1960 
[74 STAT. 
dition shall be attested by the signatures of at least three of the direc-
tors or trustees of the reporting bank other than the officer making 
such declaration, or by at least two if there are not more than three 
directors or trustees, with the declaration that the report has been 
examined by them and to the best of their knowledge and belief is 
true and correct. At the time of making said reports of condition 
each insured national. District and State member bank shall furnish 
to the Corporation a copy thereof containing such signed declara-
tion and attestations. Nothing herein shall preclude any of the fore-
going agencies from requiring the banks under its jurisdiction to 
make additional reports of condition at any time. 
"(4) In the reports of condition required to be made by paragraph 
(3) of this subsection, each insured bank shall report the total amount 
of the liability of the bank for deposits in the main office and in any 
branch located in any State of the United States, the District of Co-
lumbia, any Territory of the United States, Puerto Rico, Guam, or 
the Virgin Islands, according to the definition of the term 'deposit' in 
and pursuant to subsection (1) of section 3 of this Act, without any 
deduction for indebtedness of depositors or creditors or any deduction 
for cash items in the process of collection drawn on others than the re-
porting bank: Provided, That the bank in reporting such deposits may 
(i) subtract from the deposit balance due to any bank the deposit 
balance due from the same bank (other than trust funds deposited by 
either bank) and any cash items in the process of collection due from 
or due to such banks shall be included in determining such net balance, 
except that balances of time deposits of any bank and any balances 
standing to the credit of private banks, of banks in foreign countries, 
of foreign branches of other American banks, and of American 
branches of foreign banks shall be reported gross without any such 
subtraction, and (ii) exclude any deposits received in any office of the 
bank for deposit in any other office of the bank: And 'provided further^ 
That outstanding drafts (including advices and authorizations to 
charge bank's balance in another bank) drawn in the regular course 
of business by the reporting bank on banks need not be reported as 
deposit liabilities. The amount of trust funds held in the bank's own 
trust department, which the reporting bank keeps segregated and 
apart from its general assets and does not use in the conduct of its 
business, shall not be included in the total deposits in such reports, 
but shall be separately stated in such reports. 
"(5) The deposits to be reported on such reports of condition shall 
be segregated between (i) time and savings deposits and (ii) demand 
deposits. For this purpose and for the computation of assessments 
provided in subsection (b) of this section, the time and savings depos-
its shall consist of time certificates of deposit, time deposits-open 
account, deposits accumulated for the payment of personal loans, and 
savings deposits; and demand deposits shall consist of all deposits 
other than time and savings deposits. 
"(6) The Board of Directors, after consultation with the Comp-
troller of the Currency and the Board of Governors of the Federal 
Reserve System, may by regulation define the terms 'cash items' and 
'process of collection', and shall classify deposits as 'time', 'savings', 
and 'demand' deposits, for the purposes of this section. 
"(b) (1) The annual assessment rate shall be one-twelfth of 1 per 
centum. Except as provided in subsection (c) (2) of this section, the 
semiannual assessment due from any insured bank for any semiannual 
E
eriod shall be equal to one-half the annual assessment rate multiplied 
y such bank's average assessment base for the immediately preceding 
semiannual period. 
74 STAT. ] 
PUBLIC LAW 86-671-JULY 14, 1960 
549 
"(2) For the purposes of this section the term 'semiannual period' 
means a period beginning on January 1 of any calendar year and 
ending on June 30 of the same year, or a period beginning on July 1 
of any calendar year and ending on December 31 of the same year. 
"(3) A bank's average assessment base for any semiannual period 
shall be the average of such bank's assessment bases for the two dates, 
falling within such semiannual period, for which the bank is required 
to submit reports of condition pursuant to paragraph (3) of sub-
section (a) of this section (referred to hereafter in this section as 
'reports of condition'). 
''(4) A bank's assessment base for any date shall be equal to the 
bank's liability for deposits (including the deposits of any other bank 
for which it has assumed liability) as reported in its report of con-
dition for such date, plus the assessment base additions set forth in 
paragraph (5), and less the assessment base deductions set forth in 
paragraph (6). 
"(5) The assessment base additions shall be the amounts of— 
"(A) uninvested trust funds required to be separately stated 
in the bank's report of condition; and 
"(B) any deposits received in any office of the bank for deposit 
in any other office of the bank located in the United States, the 
District of Columbia, Puerto Rico, Guam, or the Virgin Islands, 
except those which have^ been included in deposits in the report 
of condition or which have been offset in the report of condition 
by an equal amount of cash items in its possession drawn on itself 
(on the same type of deposit as those offset) and not charged 
against deposit liabilities at the close of business on the date as 
of which the report of condition is made, either in their actual 
amount as shown on the books of the bank, or, if not so shown, 
in an amount determined by means of an experience factor pur-
suant to regulations prescribed by the Board of Directors. 
"(6) The assessment base deductions shall be the amounts of— 
"(A) cash items in the bank's possession, drawn on itself, 
which have not been charged against deposit liabilities at the 
close of business on the date as of which the report of condition 
is made, either in their actual amount as shown on the books of the 
bank, or, if not so shown, in an amount determined by means of 
an experience factor pursuant to regulations prescribed by the 
Board of Directors; 
"(B) deposits included in reported deposit liabilities which 
are accumulated for the payment of personal loans and are as-
signed or pledged to assure repayment of the loans at maturity; 
"(C) 1 per centum of the bank's adjusted time and savings 
deposits (as defined in paragraph (7)); and 
"(D) 16% per centum of the bank's adjusted demand deposits 
(as defined in paragraph (8)). 
Each insured bank, as a condition to the right to make any such de-
duction in determining its assessment base, shall maintain such records 
as will readily permit verification of the correctness of its assess-
ment base. No insured bank shall be required to retain such records 
for such purpose for a period in excess of five years from the date of 
the filing of any certified statement, except that when there is a dis-
pute between the insured bank and the Corporation over the amount 
of any assessment the bank shall retain such records until final de-
termination of the issue. 
"(7) The term 'the bank's adjusted time and savings deposits' 
means the amount of the bank's time and savings deposits as reported 
in its report of condition, as adjusted— 
550 
PUBLIC LAW 86-671-JULY 14, 1960 
[74 STAT. 
" (A) either by adding the amount of all deposits of the type 
described in subparagraph (5) (B) or, if the bank elects to ascer-
tain the respective amounts of such deposits creditable to time and 
savings deposits and to demand deposits, by adding the amount 
creditable to time and savings deposits; 
"(B) by subtracting, if the bank elects to ascertain the re-
spective amounts of its items of the type described in subpara-
graph (6) (A) chargeable against time and savings deposits and 
against demand deposits, the amount chargeable against time 
and savings deposits; and 
"(C) by subtracting the amount of all deposits of the type 
described in subparagraph (6) (B). 
"(8) The term 'the bank's adjusted demand deposits' means the 
amount of the bank's demand deposits as reported in its report of 
condition, as adjusted— 
"(A) by adding the amount of all deposits of the type de-
scribed in subparagraph (5) ( A ) ; 
"(B) by adding, if the bank elects to ascertain the respective 
amounts of its deposits of the type described in subparagraph 
(5)(B) creditable to time and savings deposits and to demand 
deposits, the amount creditable to demand deposits; and 
"(C) either by subtracting the amount of all items of the type 
described in subparagraph (6) (A), or, if the bank elects to ascer-
tain the respective amounts of such items chargeable against time 
and savings deposits and against demand deposits, by subtracting 
the amount chargeable agamst demand deposits. 
" (c) (1) On or before the last day of the first month following each 
semiannual period, each insured bank which became insured prior to 
the beginning of such period shall file with the Corporation a certified 
statement showing its average assessment base for such period, and 
the amount of the semiannual assessment due to the Corporation for 
the semiannual period which begins with such month. 
Each such 
bank shall pay to the Corporation the amount of the semiannual 
assessment it is required to certify. 
"(2) A bank shall not be required to pay any assessment for the 
semiannual period in which it becomes an insured bank. 
On or 
before the last day of the first month following the semiannual period 
during which any bank becomes an insured bank, such bank shall— 
"(A) file with the Corporation a certified statement showing, 
as its assessment base for such period, its assessment base for the 
last date, if any, within such period for which it was required to 
submit a report of condition, or 
"(B) if such bank became an insured bank after the last date 
in such period for which a report of condition was required, such 
bank shall make a special report of condition as of the last day 
of such semiannual period, and shall file with the Corporation a 
certified statement showing, as its assessment base for such period, 
its assessment base for the date of such special report. 
The semiannual assessment due from such bank for the semiannual 
period which begins with such month shall be equal to one-half the 
annual assessment rate multiplied by the assessment base computed 
pursuant to subparagraph (A) or (B) of this paragraph, and the 
amount of such assessment shall be shown on such certified statement. 
Each such bank shall pay to the Corporation the amount of the semi-
annual assessment it is required to certify. 
"(3) The certified statements required to be filed with the Corpo-
ration under paragraphs (1) and (2) of this subsection shall be in 
such form and set forth such supporting information as the Board 
74 S T A T . ] 
PUBLIC LAW 86-671-JULY 14, 1960 
551 
of Directors shall prescribe and shall be certified by the president of 
the bank or any other officer designated by its board of directors or 
trustees that to the best of his knowledge and belief the statement is 
true, correct and complete and in accordance with the Federal Deposit 
Insurance Act and regulations issued thereunder. 
The assessment 
payments required from insured banks under paragraphs (1) and 
(2) of this subsection shall be made in such manner and at such time 
or times as the Board of Directors shall prescribe, provided the time 
or times so prescribed shall not be later than sixty days after filing 
the certified statement setting forth the amount of assessment. 
"(4) Except as otherwise provided in this section, the Board of 
Directors shall prescribe all needful rules and regulations for the 
enforcement of this section. 
The Board of Directors may limit the 
retroactive effect, if any, of any of its rules or regulations." 
SEC. 3. Section 7 of the Federal Deposit Insurance Act (12 U.S.C. 
1817) is amended by substituting for the date "December 31, 1950" 
in subsection (d) the date "December 31, 1961"; by substituting for 
the numerical figure "40" in subsection (d) the numerical figure 
"33V3"; by substituting for the words "fails to file" in subsection (f) 
the words "fails to make any report of condition under subsection (a) 
of this section or to file"; by substituting for the words "file such 
statement" in subsection (f) the words "make such report or file such 
statement"; by substituting for the word "filed" in the first sentence 
of subsection (g) the words "made any such report of condition under 
subsection (a) of this section or filed"; by substituting for the words 
"to file" in the first sentence of subsection (g) the words "to make 
any such report or file"; by substituting for the words "to file" in the 
first sentence of subsection (h) the words "to make any report of 
condition under subsection (a) of this section or to file"; and by 
substituting for the words "in its trust or deposited in any other 
department or in another bank" in the first sentence of subsection (i) 
the words "in its trust department or held or deposited in any other 
department of the fiduciary bank" and by striking the words after the 
colon in the second sentence and substituting a period for said colon. 
SEC. 4. Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 
1820) is amended by striking out subsections (e) and (f) thereof and 
relettering subsection (g) as subsection (e). 
SEC. 5. (a) Section 5211 of the Revised Statutes of the United 
States (12 U.S.C. 161) is amended by striking out the first paragraph 
thereof and inserting in lieu of such paragraph the following: 
"(a) Every association shall make reports of condition to the 
Comptroller of the Currency in accordance with the Federal Deposit 
Insurance Act. 
The Comptroller of the Currency may call for addi-
tional reports of condition, in such form and containing such infor-
mation as he may prescribe, on dates to be fixed by him, and may call 
for special reports from any particular association whenever in his 
judgment the same are necessary for his use in the performance of 
his supervisory duties. Each report of condition shall contain a 
declaration by the president, a vice president, the cashier, or by any 
other officer designated by the board of directors of the bank to make 
such declaration, that the report is true and correct to the best of his 
knowledge and belief. 
The correctness of the report of condition 
shall be attested by the signatures of at least three of the directors 
of the bank other than the officer making such declaration, with the 
declaration that the report has been examined by them and to the best 
of their knowledge and belief is true and correct. 
Each report shall 
exhibit in detail and under appropriate heads the resources and lia-
Rules and regu-
lations. 
Reports to Comp-
troller of Currency. 
552 
PUBLIC LAW 86-672-JULY 14, 1960 
[74 STAT. 
bilities of the association at the close of business on any past day 
specified by the Comptroller, and shall be transmitted to the Comp-
troller within ten days after the receipt of a request therefor from 
him; and the statement of resources and liabilities in the same form 
in which it is made to the Comptroller shall be published in a news-
paper published in the place where such association is established, or 
if there is no newspaper in the place, then in the one published nearest 
thereto in the same county, at the expense of the association, and such 
proof of publication shall be furnished as may be required by the 
Comptroller. 
Special reports called for by the Comptroller need 
contain only such information as is specified by the Comptroller in 
his request therefor, and publication of such reports need be made 
only if directed by the Comptroller. 
"(b) Every association shall make to the Comptroller reports of 
the payment of dividends, including advance reports of dividends 
proposed to be declared or paid in such cases and under such condi-
tions as the Comptroller deems necessary to carry out the purposes 
of the laws relating to national banking associations in such form 
and at such times as he may require." 
(b) The paragraph which, prior to the amendments made by this 
Act, was the second paragraph of such section, is amended (1) by 
inserting " ( c ) " at the beginning thereof, and (2) by striking out 
"three" in the first sentence and inserting "four" in lieu thereof. 
SEC. 6. The Act of February 26, 1881, entitled "An Act defining 
21 Stat. 352. 
^^Q Verification of returns of national banks" (12 U.S.C. 162) is 
repealed. 
Effective date. 
gjjc. 7. The amendments made by this Act shall take effect on Janu-
ary 1, 1961, except that the certified statements covering the semi-
annual period ending December 31, 1960, and the determination and 
payment of assessments (for the semiannual period ending June 30, 
1961) required to be certified in such statements, shall be made as if 
such amendments were not in effect. 
Approved July 14, 1960. 
Public Law 86-672 
July 14, 1960 
AN ACT 
[H. R. 105 11] 
JQ grant an additional benefit to persons receiving easli relief under the Panama 
Canal Cash Relief Act of July 8, 1937. 
Be it enacted hy the Senate and Houxe of Representatives 
of the 
emTc^'^ls ^^"^' United States of America in Congress assembled^ That each person 
Relief payments, who, Oil or after the date of enactment of this Act, is receiving, or 
becomes entitled to receive, payment of cash relief under authority 
of the Act entitled "An Act authorizing cash relief for certain em-
ployees of the Panama Canal not coming within the provisions of the 
Canal Zone Retirement Act", approved July 8, 1937 (50 Stat. 478), 
as amended by the Act of February 20, 1954 (68 Stat. 17), shall 
receive an additional payment of cash relief in the amount of $10 
per month. 
Such payment shall be in addition to any payments 
received under such Act of July 8, 1937, as amended, and shall be 
made without regard to any limitations contained in such Act. 
Effective date. 
gj,c. 2. Thls Act shall take effect on the first day of the month in 
which it is enacted. 
Approved July 14, 1960.