[Federal Register Volume 71, Number 218 (Monday, November 13, 2006)]
[Rules and Regulations]
[Pages 66098-66104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-18802]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 328

RIN 3064-AD05


Advertisement of Membership

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Final rule.

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SUMMARY: The FDIC is promulgating a final rule revising its regulation 
governing official FDIC signs and advertising of FDIC membership. The 
final rule replaces the separate signs used by Bank Insurance Fund 
(BIF) and Savings Association Insurance Fund (SAIF) members with a new 
sign, or insurance logo, to be used by all insured

[[Page 66099]]

depository institutions. In addition, the final rule extends the 
advertising requirements to savings associations, consolidates the 
exceptions to those requirements, and restricts the use of the official 
advertising statement when advertising non-deposit products. The final 
rule also restructures the text in certain sections in order to make 
them easier to read. Lastly, the final rule places the current 
prohibition pertaining to receipt of deposits at the same teller 
station or window as noninsured institutions in its own section.

DATES: The final rule will become effective on November 13, 2007.

FOR FURTHER INFORMATION CONTACT: David P. Lafleur, Policy Analyst, 
(202) 898-6569, Division of Supervision and Consumer Protection (DSC); 
John M. Jackwood, Acting Chief, Compliance Section, (202) 898-3991, 
DSC; Kathleen G. Nagle, Supervisory Consumer Affairs Specialist, (202) 
898-6541, DSC; or Richard B. Foley, Counsel, (202) 898-3784, Legal 
Division, Federal Deposit Insurance Corporation, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: 

I. Background

    A notice of proposed rulemaking (NPR) was published in the Federal 
Register at 71 FR 40440 (July 17, 2006). The public comment period 
ended on September 15, 2006. The FDIC received a total of twelve 
comments. Nine of the comments were from insured depository 
institutions and three were from trade associations.

II. The Final Rule

A. Section 328.0--Scope

    (i) Proposed rule. Under the proposed rule, the scope provision 
would be revised by the proposed rule to reflect that there would now 
be one sign used by all insured depository institutions and the 
advertising requirements in Sec.  328.3 would be extended to savings 
associations.
    (ii) Comments. No comments were received on this aspect of the 
proposed rule.
    (iii) Final rule. No changes were made to this aspect of the 
proposed rule.

B. Section 328.1--Official Sign

    (i) Proposed rule. Pursuant to section 18(a) of the Federal Deposit 
Insurance Act (FDI Act), as amended by section 2(c)(2) of the Federal 
Deposit Insurance Reform Conforming Amendments Act of 2005, Public Law 
109-173, 119 Stat. 3601-19 (FDIRCA Act), the proposed rule would revise 
Sec.  328.1 to eliminate the separate official bank sign and official 
savings association sign, and to display a black and white version of 
the new official sign that would be used by all insured depository 
institutions.
    Under the proposed rule, the official sign would be 7'' by 3'' in 
size, with black lettering and gold background. The design is similar 
in color scheme and layout to the current bank sign but with the 
following differences: First, the language above ``FDIC'' states ``Each 
depositor insured to at least $100,000,'' instead of ``Each depositor 
insured to $100,000.'' The revised language more accurately reflects 
the new deposit insurance coverage limits in the FDIRCA Act and the 
Federal Deposit Insurance Reform Act of 2005, Public Law 109-171, title 
II, subtitle B, 120 Stat. 9-21. Second, the proposed sign includes the 
FDIC's internet Web site and leaves out the FDIC seal. Finally, the 
full faith and credit statement required by the FDIRCA Act is in 
italics on the left side of the proposed sign and is bordered by a 
semi-circle of stars, a design that partially reflects the current 
savings association sign.
    Section 328.1 also describes the ``symbol'' of the Corporation that 
insured depository institutions could use at their option as the 
official advertising statement. Under the proposed rule, the symbol 
would be that portion of the proposed official sign consisting of 
``FDIC'' and the two lines of smaller type above and below ``FDIC.''
    (ii) Comments. Some commenters expressed support for having one 
official sign for all insured depository institutions, but one of those 
commenters objected to the language ``Each depositor insured to at 
least $100,000,'' arguing that the language may require changing the 
official sign every five years if the insurance limit changes.
    (iii) Final rule. No changes were made to this aspect of the 
proposed rule. The FDIC believes that the proposed language indicating 
the minimum dollar amount of insurance coverage provides customers with 
important information, despite the fact that a depositor may in some 
situations have greater insurance coverage and the minimum dollar 
amount of insurance coverage may increase in the future. By saying that 
each depositor is insured to ``at least''--rather than ``up to''--
$100,000, the new official sign will remain accurate even if there are 
future increases in insurance coverage.

C. Section 328.2--Display and Procurement of Official Sign

    (i) Proposed rule. The proposed rule would make conforming changes 
to this section so that it applies to all insured depository 
institutions, not just insured banks. The proposed rule also 
restructures this section to make it easier to read but without making 
any substantive changes.
    Part 328 uses the term ``automatic service facilities'' in some 
places, and the term ``remote service facilities'' in other places, 
although the two terms have the same meaning within that part. The 
proposed rule uses the term ``remote service facility'' in each place 
and defines that term in Sec.  328.2(a)(1)(ii) to include any automated 
teller machine, cash dispensing machine, point-of-sale terminal, or 
other remote electronic facility where deposits are received.
    The current Sec. Sec.  328.2 and 328.4 are virtually identical, 
except that one applies to insured banks and the other applies to 
insured savings associations. The key difference between these 
provisions is that Sec.  328.4 has a paragraph (e) prohibiting insured 
savings associations from using the official bank sign. As the new 
official sign would be applicable to all insured depository 
institutions, the proposed rule would combine current Sec. Sec.  328.2 
and 328.4 into a new Sec.  328.2.
    As in the current Sec.  328.2, the proposed revision would allow an 
insured depository institution to vary the size, color, or material of 
the official sign at its expense, and to display such altered signs 
within the institution at locations other than where insured deposits 
are received. However, under the proposed rule, only the official sign 
adhering to the specifications of Sec.  328.1 could have been displayed 
where insured deposits are received. The proposed rule refers to the 
FDIC's internet Web site, http://www.fdic.gov, for information on 
obtaining the official sign.
    (ii) Comments. Some commenters opposed the requirement in the 
proposed rule that only the official sign--i.e., the black and gold 
design specified in Sec.  328.1--could be displayed at each station or 
window where insured deposits are received. Those commenters maintained 
that the FDIC currently allows institutions to display signs that vary 
in color or material at stations or windows where insured deposits are 
received.
    Some commenters noted that section 18(a)(1)(A) of the FDI Act, 12 
U.S.C. 1828(a)(1)(A), requires an insured depository institution to 
display a sign ``at each place of business maintained by that 
institution,'' not at each station or window where insured deposits are 
received. Therefore, according to those commenters, the FDIC could 
simply

[[Page 66100]]

require that the official sign be displayed at each customer entrance 
to an institution's office.
    Some commenters stated that they assumed the FDIC would provide 
insured depository institutions, without charge, as many official signs 
as they need to comply with the final rule. However, one of those 
commenters suggested that current signage could be ``grandfathered,'' 
since providing the new signs would impose a cost on taxpayers for what 
could be considered a non-substantive change.
    (iii) Final rule. The final rule retains the longstanding 
requirement that the official sign be displayed at each station or 
window where insured deposits are received. Requiring that signs be 
displayed at each station or window where insured deposits are 
received, rather than at each customer entrance to an institution's 
office, is consistent with section 18(a)(1)(A) of the FDI Act. 
Moreover, because depository institutions offer uninsured non-deposit 
products in other parts of their premises, the requirement better 
informs customers about where FDIC-insured deposits are received.\1\
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    \1\ Insured depository institutions are required to disclose 
that certain non-deposit products are not FDIC-insured, and such 
products generally must be sold at physical locations distinct from 
the area where retail deposits are taken. See 12 CFR part 343 
(Consumer Protection in Sales of Insurance--rules applicable to 
FDIC-supervised institutions) and the Interagency Policy Statement 
on Retail Sales of Nondeposit Investment Products, issued on 
February 15, 1994 (NDIP Policy Statement).
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    The final rule permits an institution to display signs varying in 
size, color, or material from the specifications for the official sign 
in Sec.  328.1 at stations or windows where insured deposits are 
received. However, in locations where display of the official sign is 
required under Sec.  328.2(a), the final rule prohibits variations in 
size that are smaller than the official sign. In the required 
locations, signs must also use the same color for the text and symbols. 
These requirements are intended to ensure that customers are able to 
recognize the sign. A new sub-paragraph (2) of Sec.  328.2(a) 
implements these changes, and Sec.  328.2(a)(2) of the proposed rule 
has been redesignated as Sec.  328.2(a)(3). Finally, Sec.  
328.2(a)(1)(i) of the proposed rule has been revised to provide that, 
in addition to those locations where the official sign must be 
displayed under Sec.  328.2(a), an institution may display the official 
sign in other locations at the institution.
    Like the proposed rule, the final rule will allow insured 
depository institutions to obtain from the FDIC, at no charge, the 
official signs they need to comply with part 328. The final rule does 
not adopt the suggestion by one commenter that current signage could be 
``grandfathered,'' since that would be inconsistent with section 18(a) 
of the FDI Act.

D. Section 328.3--Official Advertising Statement Requirements

(1) Proposal To Extend Official Advertising Statement Requirement to 
Savings Associations
    (i) Proposed rule. Section 328.3 requires insured banks to include 
the official advertising statement in all their advertisements (with 
certain exceptions). The basic form of the statement is ``Member of the 
Federal Deposit Insurance Corporation,'' which may be shortened to 
``Member FDIC.'' There is no equivalent requirement for insured savings 
associations. The proposed rule would revise Sec.  328.3 to provide for 
consistent treatment of banks and savings associations by requiring all 
insured depository institutions to include the official advertising 
statement in their advertisements.
    (ii) Comments. One commenter voiced support for this aspect of the 
proposed rule. No commenters objected to it.
    (iii) Final rule. No changes were made to this aspect of the 
proposed rule.
(2) Proposals To Consolidate Exceptions to the Required Use of the 
Official Advertising Statement
    (i) Proposed rule. There are currently twenty exceptions to the 
required use of the official advertising statement. The proposed rule 
would have simplified the advertising requirements by reducing the 
number of exceptions to five. The proposed rule would have done this by 
limiting the applicability of Sec.  328.3 to advertisements that 
specifically promote deposit products or generally promote banking 
services offered by an insured depository institution. The latter would 
have included advertisements that contain an institution's name and a 
statement about the availability of general banking services. The term 
``advertisement'' would have been defined as a commercial message, in 
any medium, that is designed to attract public attention or patronage 
to a product or business. By limiting the applicability of Sec.  328.3 
in this way, the NPR asserted that most of the current exceptions to 
the advertising requirements would become unnecessary. The exemptions 
eliminated from the proposed rule would have been for: Statements and 
reports of condition; bank supplies; listings in directories; and 
advertisements relating to loan services, safekeeping box services, 
trust services, real estate services, armored car services, service or 
analysis charges, securities services, travel department business, and 
savings bank life insurance.
    (ii) Comments. Some commenters found the phrase ``generally promote 
banking services'' ambiguous enough to be interpreted to include 
advertisements that fall within the current exceptions--e.g., the 
exceptions for bank supplies, listings in directories, and 
advertisements for loan and safekeeping box services. Those commenters 
maintained that the advertising requirements should only apply to 
advertisements promoting deposit products. One commenter suggested 
clarifying the final rule by explaining that promoting only non-deposit 
banking products is not ``generally promoting banking services.'' 
Another commenter suggested substituting the phrase ``promote non-
specific banking services'' for ``generally promoting banking 
services.'' Some commenters advocated retaining the current list of 
exceptions to the advertising requirements. One commenter thought that 
the paragraph heading for 328.3(c)--``Use of official advertising 
statement in all advertisements''--should be revised by deleting the 
word ``all,'' since there will no longer be a laundry list of 
exceptions.
    (iii) Final rule. In order to avoid ambiguity as to the scope of 
the advertising requirements, the final rule substitutes the phrase, 
``promote non-specific banking products and services,'' for the phrase, 
``generally promote banking services.'' In addition, the final rule 
explains that an advertisement promotes non-specific banking products 
and services if it includes the name of the insured depository 
institution but does not list or describe particular products or 
services offered by the institution--e.g., ``Anytown Bank, offering a 
full range of banking services.'' Lastly, the final rule explicitly 
references the exceptions listed at Sec.  328.3(c)(1), (2), (4), (5) 
and (6) of the current rule. The word ``all'' has been deleted from the 
heading for Sec.  328.3(c), as suggested by one commenter. Taken 
together, these revisions clarify when the advertising requirements 
apply and when they do not apply. The final rule is not intended to 
expand the applicability of the advertising requirements.
(3) Other Proposed Revisions
    (i) Proposed rule. The proposed rule also would make certain 
clarifying, non-substantive, and conforming editorial

[[Page 66101]]

changes in Sec.  328.3. In addition, three provisions in the current 
rule have not been included in the proposed rule because they address 
narrow situations that rarely occur. The first provision, Sec.  
328.3(a)(2), allows the Board to grant temporary exemptions from the 
advertising requirements for good cause. The second provision, Sec.  
328.3(a)(3), concerns advertising copy not including the official 
advertising statement that is on hand on the date the advertising 
requirements become operative. The third provision, Sec.  328.3(d), 
addresses how to handle outstanding billboard advertisements that 
require use of the official advertising statement.
    (ii) Comments. One commenter voiced no objection to this aspect of 
the proposed rule.
    (iii) Final rule. No changes were made to this aspect of the 
proposed rule.

E. Section 328.3(e)--Restrictions on Using the Official Advertising 
Statement When Advertising Non-Deposit Products

    (i) Proposed rule. The NPR solicited comment on whether the final 
rule should include a provision that would: (1) Prohibit use of the 
official advertising statement in advertisements relating solely to 
non-deposit products (NDPs) or hybrid products containing NDP and 
deposit features (e.g., sweep accounts); and (2) require that the 
official advertising statement be clearly segregated from information 
about NDPs in advertisements containing information about both NDPs and 
insured deposit products.
    (ii) Comments. Several commenters supported having a provision in 
the final rule setting forth the requirements for using, not using, 
and/or segregating the official advertising statement in advertisements 
for NDPs only, advertisements for hybrid products, and advertisements 
for both NDPs and insured deposit products. Some commenters advocated 
clarification of the advertising requirements in the final rule. One 
commenter recommended that the final rule clarify the advertising 
requirements by providing that the official advertising statement is 
not mandatory in advertisements for NDPs only or in advertisements for 
hybrid products. One commenter thought the proposal is consistent with 
the NDIP Policy Statement except with regard to hybrid products. That 
commenter opposed the prohibition against displaying the official 
advertising statement in advertisements for hybrid products only. 
Another commenter asserted that the proposed provision is unnecessary, 
but argued that if the FDIC acted in this area, it should do so through 
a separate rulemaking.
    (iii) Final rule. The final rule includes a new provision, in Sec.  
328.3(e), restricting use of the official advertising statement when 
advertising NDPs, as described above and in the NPR. The final rule 
defines the term ``non-deposit product'' to include, without 
limitation, insurance products, annuities, mutual funds, and 
securities. The products specifically included in the definition of 
non-deposit product are products that, in the FDIC's experience, have 
been mistakenly viewed by customers as being FDIC-insured. Credit 
products are excluded from this definition. The term ``hybrid product'' 
is defined as a product or service that has both deposit and non-
deposit product features--e.g., a sweep account.
    Under Sec.  328.3(e), insured depository institutions will be 
prohibited from using the official advertising statement in 
advertisements containing information only about NDPs or hybrid 
products. In mixed advertisements, containing information about both 
NDPs or hybrid products and insured deposit products, the official 
advertising statement will have to be clearly segregated from 
information about the NDPs or hybrid products in order to make it clear 
that the statement refers only to the insured deposit products. Since 
the new provision is consistent with the proposal set forth in the NPR, 
the FDIC does not believe that a separate rulemaking is necessary for 
this provision. Section 328.3(e) of the proposed rule has been 
redesignated as Sec.  328.3(f).

F. Section 328.4--Prohibition Against Receiving Deposits at Same Teller 
Station or Window as Noninsured Institution

    (i) Proposed rule. Section 328.2 currently has a provision that 
prohibits banks from receiving deposits at the same teller station or 
window where a noninsured institution receives deposits, except for a 
remote service facility. Since this provision does not relate directly 
to the display and procurement of the official sign and is significant 
enough that it should be set apart in a separate section, the proposed 
rule would move the provision to Sec.  328.4.
    (ii) Comments. One commenter voiced no objection to this aspect of 
the proposed rule.
    (iii) Final rule. No changes were made to this aspect of the 
proposed rule.

G. Effective Date

    (i) Proposed rule. The NPR also solicited comment on whether the 
proposed effective date of six months after publication of the final 
rule in the Federal Register would give insured depository institutions 
sufficient time to adjust to the new requirements in the proposed 
revision of part 328.
    (ii) Comments. Several commenters advocated a one-year transition 
period. Some commenters believed that six months would not be enough 
time for institutions to use their existing inventory of promotional 
materials containing the current official signs and to change such 
materials to comply with the requirements for the new sign. One 
commenter maintained that six months might be enough time for display 
of the official sign at teller windows, but at least one year should be 
allowed with respect to paper supplies. One commenter thought January 
17, 2007, would be appropriate for site specific advertising, such as 
signs on teller windows or bank doors, and for modifying an 
institution's internet pages, but felt that for changing paper 
materials the effective date should be extended to January 1, 2008.
    One commenter was concerned that the effective date provision in 
the preamble to the NPR would not allow institutions to implement 
measures to comply with requirements of the final rule until the very 
end of the transition period, because doing so earlier would violate 
the current requirements in Part 328. That commenter also believed that 
institutions should be allowed to use existing stocks of printed 
materials until they are exhausted.
    (iii) Final rule. The final rule extends the effective date until 
one year after the date when it is published in Federal Register. Such 
a transition period should give institutions sufficient time to use 
existing printed materials before the new requirements become 
mandatory. During the transition period, between publication of the 
final rule in the Federal Register and the effective date, insured 
depository institutions will not be deemed in violation of the current 
requirements in Part 328 if they implement measures to comply with 
requirements of the final rule. Indeed, the very purpose of the 
transition period is to give institutions time to implement such 
measures.

III. Paperwork Reduction Act

    The final rule does not contain any ``collections of information'' 
within the meaning of section 3502(3) of the Paperwork Reduction Act of 
1995 (44 U.S.C. 3502(3)).

IV. Regulatory Flexibility Act

    Display of the official sign is required by section 18(a) of FDI 
Act, as amended by section 2(c)(2) of the FDIRCA Act. There would not 
be any significant

[[Page 66102]]

compliance costs with displaying the official sign, because it would be 
provided by the FDIC free of charge. Insured banks have complied with 
similar advertising requirements for over seventy years without 
significant expense. Although savings associations have not been 
subject to such advertising requirements, many have used the official 
advertising statement voluntarily. Moreover, mandatory compliance with 
the advertising requirements by savings association would not entail 
significant expense. Accordingly, the Board hereby certifies that the 
final rule would not have a significant economic impact on a 
substantial number of small entities within the meaning of the 
Regulatory Flexibility Act (5 U.S.C. 601-612).

V. The Treasury and General Government Appropriations Act, 1999--
Assessment of Federal Regulations and Policies on Families

    The FDIC has determined that the final rule will not affect family 
well-being within the meaning of section 654 of the Treasury and 
General Government Appropriations Act, enacted as part of the Omnibus 
Consolidated and Emergency Supplemental Appropriations Act of 1999 
(Pub. L. 105-277, 112 Stat. 2681).

VI. Small Business Regulatory Enforcement Fairness Act

    The Office of Management and Budget has determined that the final 
rule is not a ``major rule'' within the meaning of the relevant 
sections of the Small Business Regulatory Enforcement Fairness Act of 
1996 (``SBREFA'') (5 U.S.C. 801 et seq.). As required by SBREFA, the 
FDIC will file the appropriate reports with Congress and the Government 
Accountability Office so that the final rule may be reviewed.

List of Subjects in 12 CFR Part 328

    Advertising, Bank deposit insurance, Savings associations, Signs 
and symbols.

0
For the reasons stated above, the Board of Directors of the Federal 
Deposit Insurance Corporation hereby amends title 12, chapter III of 
the Code of Federal Regulations by revising part 328 to read as 
follows:

PART 328--ADVERTISEMENT OF MEMBERSHIP

Sec.
328.0 Scope.
328.1 Official sign.
328.2 Display and procurement of official sign.
328.3 Official advertising statement requirements.
328.4 Prohibition against receiving deposits at same teller station 
or window as noninsured institution.

    Authority: 12 U.S.C. 1818(a), 1819 (Tenth), 1828(a).


Sec.  328.0  Scope.

    Part 328 describes the official sign of the FDIC and prescribes its 
use by insured depository institutions. It also prescribes the official 
advertising statement insured depository institutions must include in 
their advertisements. For purposes of part 328, the term ``insured 
depository institution'' includes insured branches of a foreign 
depository institution. Part 328 does not apply to non-insured offices 
or branches of insured depository institutions located in foreign 
countries.


Sec.  328.1  Official sign.

    (a) The official sign referred to in this part shall be 
7 by 3 in size, with black lettering and gold 
background, and of the following design:
[GRAPHIC] [TIFF OMITTED] TR13NO06.000

    (b) The ``symbol'' of the Corporation, as used in this part, shall 
be that portion of the official sign consisting of ``FDIC'' and the two 
lines of smaller type above and below ``FDIC.''


Sec.  328.2  Display and procurement of official sign.

    (a) Display of official sign. Each insured depository institution 
shall continuously display the official sign at each station or window 
where insured deposits are usually and normally received in the 
depository institution's principal place of business and in all its 
branches.
    (1) Other locations--
    (i) Within the institution. In addition to locations where display 
of the official sign is required under this Sec.  328.2(a), an insured 
depository institution may display the official sign in other locations 
at the institution.
    (ii) Other facilities. An insured depository institution may 
display the official sign on or at Remote Service Facilities. If an 
insured depository institution displays the official sign at a Remote 
Service Facility, and if there are any noninsured institutions that 
share in the Remote Service Facility, any insured depository 
institution that displays the official sign must clearly show that the 
sign refers only to a designated insured depository institution(s). As 
used in this part, the term ``Remote Service Facility'' includes any 
automated teller machine, cash dispensing machine, point-of-sale 
terminal, or other remote electronic facility where deposits are 
received.
    (2) Varied signs. Instead of displaying the official sign, an 
insured depository institution may display signs that vary from the 
official sign in size, color, or material at any location where display

[[Page 66103]]

of the official sign is required or permitted under this Sec.  
328.2(a). However, any such varied sign that is displayed in locations 
where display of the official sign is required under this Sec.  
328.2(a) must not be smaller in size than the official sign and must 
have the same color for the text and symbols.
    (3) Newly insured institutions. A depository institution shall 
display the official sign no later than its twenty-first day of 
operation as an insured depository institution, unless the institution 
promptly requested the official sign from the Corporation, but did not 
receive it before that date.
    (b) Procuring official sign. An insured depository institution may 
procure the official sign from the Corporation for official use at no 
charge. Information on obtaining the official sign is posted on the 
FDIC's internet Web site, http://www.fdic.gov. Alternatively, insured 
depository institutions may, at their expense, procure from commercial 
suppliers signs that vary from the official sign in size, color, or 
material. Any insured depository institution which has promptly 
submitted a written request for an official sign to the Corporation 
shall not be deemed to have violated this Sec.  328.2 by failing to 
display the official sign, unless the insured depository institution 
fails to display the official sign after receipt thereof.
    (c) Required changes in sign. The Corporation may require any 
insured depository institution, upon at least thirty (30) days' written 
notice, to change the wording of the official sign in a manner deemed 
necessary for the protection of depositors or others.


Sec.  328.3  Official advertising statement requirements.

    (a) Advertisement defined. The term ``advertisement,'' as used in 
this part, shall mean a commercial message, in any medium, that is 
designed to attract public attention or patronage to a product or 
business.
    (b) Official advertising statement. The official advertising 
statement shall be in substance as follows: ``Member of the Federal 
Deposit Insurance Corporation.''
    (1) Optional short title and symbol. The short title ``Member of 
FDIC'' or ``Member FDIC,'' or a reproduction of the symbol of the 
Corporation (as described in Sec.  328.1(b)), may be used by insured 
depository institutions at their option as the official advertising 
statement.
    (2) Size and print. The official advertising statement shall be of 
such size and print to be clearly legible. If the symbol of the 
Corporation is used as the official advertising statement, and the 
symbol must be reduced to such proportions that the two lines of 
smaller type above and below ``FDIC'' are indistinct and illegible, 
those lines of smaller type may be blocked out or dropped.
    (c) Use of official advertising statement in advertisements--(1) 
General requirement. Except as provided in Sec.  328.3(d), each insured 
depository institution shall include the official advertising statement 
prescribed in Sec.  328.3(b) in all advertisements that either promote 
deposit products and services or promote non-specific banking products 
and services offered by the institution. For purposes of this Sec.  
328.3, an advertisement promotes non-specific banking products and 
services if it includes the name of the insured depository institution 
but does not list or describe particular products or services offered 
by the institution. An example of such an advertisement would be, 
``Anytown Bank, offering a full range of banking services.''
    (2) Foreign depository institutions. When a foreign depository 
institution has both insured and noninsured U.S. branches, the 
depository institution must also identify which branches are insured 
and which branches are not insured in all of its advertisements 
requiring use of the official advertising statement.
    (3) Newly insured institutions. A depository institution shall 
include the official advertising statement in its advertisements no 
later than its twenty-first day of operation as an insured depository 
institution.
    (d) Types of advertisements which do not require the official 
advertising statement. The following types of advertisements do not 
require use of the official advertising statement:
    (1) Statements of condition and reports of condition of an insured 
depository institution which are required to be published by State or 
Federal law;
    (2) Insured depository institution supplies such as stationery 
(except when used for circular letters), envelopes, deposit slips, 
checks, drafts, signature cards, deposit passbooks, certificates of 
deposit, etc.;
    (3) Signs or plates in the insured depository institution offices 
or attached to the building or buildings in which such offices are 
located;
    (4) Listings in directories;
    (5) Advertisements not setting forth the name of the insured 
depository institution;
    (6) Entries in a depository institution directory, provided the 
name of the insured depository institution is listed on any page in the 
directory with a symbol or other descriptive matter indicating it is a 
member of the Federal Deposit Insurance Corporation;
    (7) Joint or group advertisements of depository institution 
services where the names of insured depository institutions and 
noninsured institutions are listed and form a part of such 
advertisements;
    (8) Advertisements by radio or television, other than display 
advertisements, which do not exceed thirty (30) seconds in time;
    (9) Advertisements which are of the type or character that make it 
impractical to include the official advertising statement, including, 
but not limited to, promotional items such as calendars, matchbooks, 
pens, pencils, and key chains; and
    (10) Advertisements which contain a statement to the effect that 
the depository institution is a member of the Federal Deposit Insurance 
Corporation, or that the depository institution is insured by the 
Federal Deposit Insurance Corporation, or that its deposits or 
depositors are insured by the Federal Deposit Insurance Corporation to 
at least $100,000 for each depositor.
    (e) Restrictions on using the official advertising statement when 
advertising non-deposit products--(1) Definitions--
    (i) Non-deposit product. As used in this part, the term ``non-
deposit product'' shall include, but is not limited to, insurance 
products, annuities, mutual funds, and securities. For purposes of this 
definition, a credit product is not a non-deposit product.
    (ii) Hybrid product. As used in this part, the term ``hybrid 
product'' shall mean a product or service that has both deposit product 
features and non-deposit product features. A sweep account is an 
example of a hybrid product.
    (2) Non-deposit product advertisements. Except as provided in Sec.  
328.3(e)(4), an insured depository institution shall not include the 
official advertising statement, or any other statement or symbol which 
implies or suggests the existence of Federal deposit insurance, in any 
advertisement relating solely to non-deposit products.
    (3) Hybrid product advertisements. Except as provided in Sec.  
328.3(e)(4), an insured depository institution shall not include the 
official advertising statement, or any other statement or symbol which 
implies or suggests the existence of federal deposit insurance, in any 
advertisement relating solely to hybrid products.
    (4) Mixed advertisements. In advertisements containing information 
about both insured deposit products and non-deposit products or hybrid

[[Page 66104]]

products, an insured depository institution shall clearly segregate the 
official advertising statement or any similar statement from that 
portion of the advertisement that relates to the non-deposit products.
    (f) Official advertising statement in non-English language. The 
non-English equivalent of the official advertising statement may be 
used in any advertisement, provided that the translation has had the 
prior written approval of the Corporation.


Sec.  328.4  Prohibition against receiving deposits at same teller 
station or window as noninsured institution.

    (a) Prohibition. An insured depository institution may not receive 
deposits at any teller station or window where any noninsured 
institution receives deposits or similar liabilities.
    (b) Exception. This Sec.  328.4 does not apply to deposits received 
at a Remote Service Facility.

    By order of the Board of Directors.

    Dated at Washington, DC, this 2nd day of November, 2006.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
 [FR Doc. E6-18802 Filed 11-9-06; 8:45 am]
BILLING CODE 6714-01-P