[Federal Register Volume 60, Number 248 (Wednesday, December 27, 1995)]
[Proposed Rules]
[Pages 66951-66952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31261]



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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 354

RIN 3064-AA92


Deposit Liabilities, Withdrawal of Proposed Rule

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Withdrawal of proposed rule.

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SUMMARY: The FDIC is withdrawing a proposal issued in 1988 prescribing 
by regulation that certain liabilities of an insured depository 
institution are deposit liabilities by general usage. The proposal 
would have found that an institution's liability on certain obligations 
issued by the institution as a means of obtaining funds constitutes a 
deposit liability. The FDIC has decided to withdraw the proposed rule 
because an FDIC policy statement recommends withdrawal of proposed 
rules that have not been acted upon by the Board of Directors within 
nine months.

DATES: This withdrawal of the proposed rule is made on December 27, 
1995.


[[Page 66952]]


FOR FURTHER INFORMATION CONTACT: Jamey Basham, Counsel, (202) 898-
7265, Legal Division, FDIC, 550 17th Street, N.W., Washington, D.C. 
20429.

SUPPLEMENTARY INFORMATION:

The Proposed Rule

    On November 25, 1988, the FDIC published a proposed rule dealing 
with the definition of the term ``deposit.'' 1 In that rulemaking, 
the FDIC proposed that an insured depository institution's liability on 
a promissory note, bond, acknowledgement of advance, or similar 
obligation that is issued or undertaken by the institution as a means 
of obtaining funds would be a deposit liability. The proposed rule 
would have allowed a number of enumerated exceptions to the general 
provision.

    \1\ 53 FR 47723
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    The proposal was issued because the FDIC had become aware over a 
period of years that institutions were issuing obligations generically 
known as ``deposit notes,'' which typically were general credit 
obligations of the institution; were represented to customers as 
deposits; were designated as deposits on the issuer's report of 
condition; and for which deposit insurance assessments were paid. In 
addition, institutions were issuing instruments generally known as 
``bank notes,'' which were also general obligations of the institution 
but were not otherwise treated as deposits by the institution and may 
or may not have contained representations to the customer about the 
instruments' deposit status. Although the FDIC believes that many of 
these transactions fall within section 3(l)(1) of the Federal Deposit 
Insurance Act (Act), 12 U.S.C. 1813(l)(1), defining what constitutes a 
``deposit,'' the FDIC proposed to use its authority under section 
3(l)(5) of the Act, 12 U.S.C. 1813(l)(5), to determine that certain 
liabilities are deposits by general usage.

The Policy Statement

    An FDIC Statement of Policy 2 provides that any regulation 
upon which final action by the Board of Directors has not been taken 
within nine months from the date the regulation was last proposed will 
be formally withdrawn. If any proposed regulation is so withdrawn, the 
Board of Directors reserves the right to begin the rulemaking process 
anew (i.e., republish in the Federal Register, resolicit public 
comments, etc.). The FDIC believes that withdrawal of the proposed rule 
is appropriate because no action has been taken with respect to the 
proposal for over nine months.

    \2\ Statement of Policy on Development and Review of FDIC Rules 
and Regulations, 44 FR 7288 (May 30, 1979).
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    In consideration of the foregoing, the FDIC hereby withdraws 
proposed new part 354 of title 12 of the Code of Federal Regulations.

    By Order of the Board of Directors.

    Dated at Washington, D.C., this 19th day of December, 1995.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Deputy Executive Secretary.
[FR Doc. 95-31261 Filed 12-26-95; 8:45 am]
BILLING CODE 6174-01-P