[Federal Register Volume 75, Number 74 (Monday, April 19, 2010)]
[Notices]
[Pages 20358-20363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-8923]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Intra-Agency Appeal Process: Guidelines for Appeals of Material 
Supervisory Determinations and Guidelines for Appeals of Deposit 
Insurance Assessment Determinations

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Notice of guidelines.

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SUMMARY: On April 13, 2010, the Federal Deposit Insurance Corporation 
(``FDIC'') Board of Directors (``Board'') adopted revised Guidelines 
for Appeals of Material Supervisory Determinations (``SARC 
Guidelines''). The SARC Guidelines govern the Supervision Appeals 
Review Committee (``SARC'') process and supersede the FDIC's prior SARC 
Guidelines, which were adopted by the FDIC's Board of Directors on 
September 16, 2008. In addition, on April 13, 2010, the Board also 
adopted revised Guidelines for Appeals of Deposit Insurance Assessment 
Determinations (``AAC Guidelines''), which govern the Assessment 
Appeals Committee (``AAC'') process and supersede the FDIC's prior AAC 
Guidelines, which were adopted on June 28, 2004. The SARC Guidelines 
have been amended to extend the decision deadline for requests for 
review and to clarify the decisional deadline for written decisions by 
the SARC. Also, both the SARC Guidelines and the AAC Guidelines have 
been amended to make additional, limited technical clarifying and 
conforming amendments. Both sets of revised guidelines are effective 
upon adoption.

DATES: The revised SARC Guidelines and the revised AAC Guidelines 
became effective on April 13, 2010.
    For Further Information Concerning the SARC Guidelines Contact: 
Patricia Colohan, Acting Associate Director, Division of Supervision 
and Consumer Protection, (202) 898-7283; Richard Bogue, Counsel, Legal 
Division, (202) 898-3726; Jeannette E. Roach, Counsel, Legal Division, 
(202) 898-3785, Federal Deposit Insurance Corporation, 550 17th Street, 
NW., Washington, DC 20429.
    For Further Information Concerning the AAC Guidelines Contact: 
Christopher Bellotto, Counsel, (202) 898-3801, Legal Division, Federal 
Deposit Insurance Corporation, 550 17th Street, NW., Washington, DC 
20429.

SUPPLEMENTARY INFORMATION: 

Background

1. Guidelines for Appeals of Material Supervisory Determinations

    Section 309(a) of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (Pub. L. 103-325, 108 Stat. 2160) (``Riegle 
Act'') required the FDIC (as well as the other Federal banking agencies 
and the National Credit Union Administration Board) to establish an 
independent intra-agency appellate process to review material 
supervisory determinations.
    The Riegle Act defines the term ``independent appellate process'' 
to mean a review by an agency official who does not directly or 
indirectly report to the agency official who made the material 
supervisory determination under review. In the appeals process, the 
FDIC is required to ensure that (1) an appeal of a material supervisory 
determination by an insured depository institution is heard and decided 
expeditiously; and (2) appropriate safeguards exist for protecting 
appellants from retaliation by agency examiners.
    On March 21, 1995, the FDIC's Board of Directors adopted the 
original Guidelines for Appeals of Material Supervisory Determinations, 
which established and set forth procedures governing the SARC, whose 
purpose was to consider and decide appeals of material supervisory 
determinations as required by the Riegle Act. The SARC Guidelines were 
amended, after notice and comment, on July 9, 2004, adopting revised 
Guidelines and changing the composition and procedures of the SARC. (69 
FR 41479 (July 9, 2004)).
    The SARC Guidelines were amended again in 2008, after notice and 
comment, to modify the supervisory determinations eligible for appeal 
to eliminate the ability of an FDIC-supervised institution to file an 
appeal with the SARC with respect to determinations or the facts and 
circumstances underlying a recommended or pending formal enforcement-
related action or decision, and to make limited technical amendments. 
(73 FR 54822 (Sept. 23, 2008)).
    Although the FDIC considered it desirable in those instances to 
garner comments regarding the Guidelines, notice and comment rulemaking 
was not required, and the FDIC pointed out that notice and comment 
rulemaking need not be employed in making future

[[Page 20359]]

amendments. Notice and comment rulemaking was not employed in making 
the present amendments.

2. Guidelines for Appeals of Deposit Insurance Assessment 
Determinations

    The FDIC Board of Directors created the AAC in 1999 to provide a 
high-level process for considering all deposit insurance assessment 
appeals brought from determinations made by the appropriate FDIC 
Divisions. Responsibility for deposit insurance assessments is shared 
by the Division of Finance (``DOF''), the Division of Insurance and 
Research (``DIR'') and, in some respects, the Division of Supervision 
and Consumer Protection (``DSC''). DOF is responsible for calculating 
the assessments owed by individual insured institutions based on 
assessment risk rates assigned by DIR, which in turn uses supervisory 
information provided by DSC.
    Institutions that dispute the computation of their quarterly 
assessment payments may request revision of their assessment payments 
by following the procedures set forth at 12 CFR 327.3(f). Institutions 
that dispute their risk assignment--or dispute any determination for 
which review may be requested as provided in Part 327--may request 
review by following the procedures set forth at 12 CFR 327.4(c).
    The AAC provides a process for considering all deposit insurance 
assessment appeals brought from determinations made by the appropriate 
FDIC divisions pursuant to 12 CFR 327.3(f) and 327.4(c). Having 
complied with those procedures and received a determination from the 
appropriate division, an institution dissatisfied with that division's 
determination may file an appeal with the AAC. After reviewing the 
determination made at the division level, the AAC will issue a final 
decision.
    The AAC Guidelines were promulgated by the FDIC on July 2, 2004, 
following notice and comment rulemaking. (69 FR 41479 (July 9, 2004)). 
Although the FDIC considered it desirable in that instance to garner 
comments regarding the AAC Guidelines, notice and comment rulemaking 
was not required, and the FDIC pointed out that notice and comment 
rulemaking need not be employed in making future amendments. Notice and 
comment rulemaking was not employed in making the present amendments.

Amendments to the Guidelines

    The SARC Guidelines provide that following an institution's filing 
of a request for review of a material supervisory determination with 
the Director of DSC, the Director ``will issue a written determination 
of the request for review, setting forth the grounds for that 
determination, within 30 days of receipt of the request.'' Paragraph 
F(b). This deadline has proven to provide insufficient time for the 
issuance of a determination following the necessary analysis of the 
request and coordination between FDIC divisions and offices charged 
with carrying out the appeals process. To provide the necessary time, 
this language has been amended to provide that the Director will issue 
the written determination ``within 45 days of receipt of the request.''
    The SARC Guidelines provided that written decisions of the SARC 
were to be issued ``within 60 days from the date the appeal is filed, 
or within 60 days from oral presentation, if held.'' It was 
contemplated that oral presentations would be made at SARC meetings to 
aid the Committee in issuing written decisions within 60 days 
thereafter. The prior language of the SARC Guidelines (paragraph M), 
however, contemplated a period of less than 60 days after the SARC met 
in which the Committee was to issue a decision in cases where no oral 
presentation was held. To clarify the decisional deadline for the 
Committee, the prior language has been amended to provide that, whether 
or not oral presentation has been held, the SARC will issue a decision 
``within 45 days from the date the SARC meets to consider the appeal, 
which meeting will be held within 90 days from the date of the filing 
of the appeal.''
    At various places throughout both the SARC Guidelines and AAC 
Guidelines, minor modifications of language are made to standardize 
references to FDIC divisions and FDIC officials who are charged with 
carrying out the appeals processes. In addition, where the FDIC's 
regulations have been amended since the AAC Guidelines were 
promulgated, the current regulatory citations have been provided.
    Paragraph E of the AAC Guidelines (Appeal to the AAC) provides that 
a division director may, with the approval of the Chairperson of the 
AAC, transfer a request for review or request for revision directly to 
the AAC if the director lacks delegated authority to grant relief. In 
order to further facilitate the prompt resolution of such requests for 
review or requests for revision, a mechanism through which a division 
director may seek guidance from the AAC Chairperson has been added to 
Paragraph E, which conforms to similar, current language at Paragraph G 
of the SARC Guidelines. In addition, both Paragraph E of the AAC 
Guidelines and Paragraph G of the SARC Guidelines have been amended to 
provide that a division director's request to transfer a matter 
directly to the SARC or AAC will be done on the director's 
recommendation, rather than the director's determination, since no 
determination will have been made.
    Paragraph L of the AAC Guidelines (Publication of Decisions) 
provides that published AAC decisions will be redacted to avoid the 
disclosure of exempt information. Because there may be circumstances 
where no amount of redaction of the full-text AAC decision would be 
sufficient to prevent improper disclosure while at the same time 
providing a meaningful statement of what the AAC has decided, Paragraph 
L has been revised to provide for summary form publication where 
redaction is deemed to be insufficient to prevent improper disclosure. 
This amendment mirrors a change made to the corresponding Paragraph N 
of the SARC Guidelines in 2008.
    For the reasons stated in the Preamble, the Board has adopted the 
Guidelines for Appeals of Material Supervisory Determinations and the 
Guidelines for Appeals of Deposit Insurance Assessment Determinations 
as set forth below.

Guidelines for Appeals of Material Supervisory Determinations

A. Introduction

    Section 309(a) of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (Pub. L. 103-325, 108 Stat. 2160) (``Riegle 
Act'') required the Federal Deposit Insurance Corporation (``FDIC'') to 
establish an independent intra-agency appellate process to review 
material supervisory determinations made at insured depository 
institutions that it supervises. The Guidelines for Appeals of Material 
Supervisory Determinations (``guidelines'') describe the types of 
determinations that are eligible for review and the process by which 
appeals will be considered and decided. The procedures set forth in 
these guidelines establish an appeals process for the review of 
material supervisory determinations by the Supervision Appeals Review 
Committee (``SARC'').

B. SARC Membership

    The following individuals comprise the three (3) voting members of 
the SARC: (1) One inside FDIC Board member, either the Chairperson, the 
Vice Chairperson, or the FDIC Director (Appointive), as designated by 
the FDIC Chairperson (this person would serve as

[[Page 20360]]

the Chairperson of the SARC); and (2) one deputy or special assistant 
to each of the inside FDIC Board members who are not designated as the 
SARC Chairperson. The General Counsel is a non-voting member of the 
SARC. The FDIC Chairperson may designate alternate member(s) to the 
SARC if there are vacancies so long as the alternate member was not 
involved in making or affirming the material supervisory determination 
under review. A member of the SARC may designate and authorize the most 
senior member of his or her staff within the substantive area of 
responsibility related to cases before the SARC to act on his or her 
behalf.

C. Institutions Eligible To Appeal

    The guidelines apply to the insured depository institutions that 
the FDIC supervises (i.e., insured State nonmember banks and insured 
branches of foreign banks) and also to other insured depository 
institutions with respect to which the FDIC makes material supervisory 
determinations.

D. Determinations Subject To Appeal

    An institution may appeal any material supervisory determination 
pursuant to the procedures set forth in these guidelines. Material 
supervisory determinations include:
    (a) CAMELS ratings under the Uniform Financial Institutions Rating 
System;
    (b) IT ratings under the Uniform Interagency Rating System for Data 
Processing Operations;
    (c) Trust ratings under the Uniform Interagency Trust Rating 
System;
    (d) CRA ratings under the Revised Uniform Interagency Community 
Reinvestment Act Assessment Rating System;
    (e) Consumer compliance ratings under the Uniform Interagency 
Consumer Compliance Rating System;
    (f) Registered transfer agent examination ratings;
    (g) Government securities dealer examination ratings;
    (h) Municipal securities dealer examination ratings;
    (i) Determinations relating to the adequacy of loan loss reserve 
provisions;
    (j) Classifications of loans and other assets in dispute the amount 
of which, individually or in the aggregate, exceeds 10 percent of an 
institution's total capital;
    (k) Determinations relating to violations of a statute or 
regulation that may impact the capital, earnings, or operating 
flexibility of an institution, or otherwise affect the nature and level 
of supervisory oversight accorded an institution;
    (l) Truth in Lending (Regulation Z) restitution;
    (m) Filings made pursuant to 12 CFR 303.11(f), for which a Request 
for Reconsideration has been granted, other than denials of a change in 
bank control, change in senior executive officer or board of directors, 
or denial of an application pursuant to section 19 of the FDI Act 
(which are contained in 12 CFR 308, subparts D, L, and M, 
respectively), if the filing was originally denied by the Director, 
Deputy Director, or Associate Director of the Division of Supervision 
and Consumer Protection; and
    (n) Any other supervisory determination (unless otherwise not 
eligible for appeal) that may impact the capital, earnings, operating 
flexibility, or capital category for prompt corrective action purposes 
of an institution, or otherwise affect the nature and level of 
supervisory oversight accorded an institution.
    Material supervisory determinations do not include:
    (a) Decisions to appoint a conservator or receiver for an insured 
depository institution;
    (b) Decisions to take prompt corrective action pursuant to section 
38 of the Federal Deposit Insurance Act, 12 U.S.C. 1831o;
    (c) Determinations for which other appeals procedures exist (such 
as determinations of deposit insurance assessment risk classifications 
and payment calculations);
    (d) Decisions to initiate informal enforcement actions (such as 
memoranda of understanding); and
    (e) Formal enforcement-related actions and decisions, including 
determinations and the underlying facts and circumstances that form the 
basis of a recommended or pending formal enforcement action, and FDIC 
determinations regarding compliance with an existing formal enforcement 
action.
    A formal enforcement-related action or decision commences, and 
therefore becomes unappealable, when the FDIC initiates a formal 
investigation under 12 U.S.C. 1820(c) or provides written notice to the 
bank indicating its intention to pursue available formal enforcement 
remedies under applicable statutes or published enforcement-related 
policies of the FDIC, including written notice of a referral to the 
Attorney General or a notice to the Secretary of Housing and Urban 
Development for violations of the Equal Credit Opportunity Act or the 
Fair Housing Act. For the purposes of these guidelines, remarks in a 
Report of Examination do not constitute written notice of intent to 
pursue formal enforcement remedies.

E. Good-Faith Resolution

    An institution should make a good-faith effort to resolve any 
dispute concerning a material supervisory determination with the on-
site examiner and/or the appropriate Regional Office. The on-site 
examiner and the Regional Office will promptly respond to any concerns 
raised by an institution regarding a material supervisory 
determination. Informal resolution of disputes with the on-site 
examiner and/or the appropriate Regional Office is encouraged, but 
seeking such a resolution is not a condition to filing a request for 
review with the Division of Supervision and Consumer Protection or an 
appeal to the SARC under these guidelines.

F. Filing a Request for Review With the FDIC Division of Supervision 
and Consumer Protection

    An institution may file a request for review of a material 
supervisory determination with the Director, Division of Supervision 
and Consumer Protection (``Director'' or ``Division Director''), 550 
17th Street, NW., Room F-4076, Washington, DC 20429, within 60 calendar 
days following the institution's receipt of a report of examination 
containing a material supervisory determination or other written 
communication of a material supervisory determination. A request for 
review must be in writing and must include:
    (a) A detailed description of the issues in dispute, the 
surrounding circumstances, the institution's position regarding the 
dispute and any arguments to support that position (including citation 
of any relevant statute, regulation, policy statement, or other 
authority), how resolution of the dispute would materially affect the 
institution, and whether a good-faith effort was made to resolve the 
dispute with the on-site examiner and the Regional Office; and
    (b) A statement that the institution's board of directors has 
considered the merits of the request and authorized that it be filed.
    The Division Director will issue a written determination of the 
request for review, setting forth the grounds for that determination, 
within 45 days of receipt of the request. No appeal to the SARC will be 
allowed unless an institution has first filed a timely request for 
review with the Division of Supervision and Consumer Protection.

[[Page 20361]]

G. Appeal to the SARC

    An institution that does not agree with the written determination 
rendered by the Division Director must appeal that determination to the 
SARC within 30 calendar days from the date of that determination. The 
Director's determination will inform the institution of the 30-day time 
period for filing with the SARC and will provide the mailing address 
for any appeal the institution may wish to file. Failure to file within 
the 30-day time limit may result in denial of the appeal by the SARC. 
If the Division Director recommends that an institution receive relief 
that the Director lacks delegated authority to grant, the Director may, 
with the approval of the Chairperson of the SARC, transfer the matter 
directly to the SARC without issuing a determination. Notice of such a 
transfer will be provided to the institution. The Division Director may 
also request guidance from the SARC Chairperson as to procedural or 
other questions relating to any request for review.

H. Filing With the SARC

    An appeal to the SARC will be considered filed if the written 
appeal is received by the FDIC within 30 calendar days from the date of 
the Division Director's written determination or if the written appeal 
is placed in the U.S. mail within that 30-day period. If the 30th day 
after the date of the Division Director's written determination is a 
Saturday, Sunday, or Federal holiday, filing may be made on the next 
business day. The appeal should be sent to the address indicated on the 
Division Director's determination being appealed.

I. Contents of Appeal

    The appeal should be labeled to indicate that it is an appeal to 
the SARC and should contain the name, address, and telephone number of 
the institution and any representative, as well as a copy of the 
Division Director's determination being appealed. If oral presentation 
is sought, that request should be included in the appeal. Only matters 
previously reviewed at the division level, resulting in a written 
determination or direct referral to the SARC, may be appealed to the 
SARC. Evidence not presented for review to the Division Director may be 
submitted to the SARC only if authorized by the SARC Chairperson. The 
institution should set forth all of the reasons, legal and factual, why 
it disagrees with the Division Director's determination. Nothing in the 
SARC administrative process shall create any discovery or other such 
rights.

J. Burden of Proof

    The burden of proof as to all matters at issue in the appeal, 
including timeliness of the appeal if timeliness is at issue, rests 
with the institution.

K. Oral Presentation

    The SARC may, in its discretion, whether or not a request is made, 
determine to allow an oral presentation. The SARC generally grants a 
request for oral presentation if it determines that oral presentation 
is likely to be helpful or would otherwise be in the public interest. 
Notice of the SARC's determination to grant or deny a request for oral 
presentation will be provided to the institution. If oral presentation 
is held, the institution will be allowed to present its positions on 
the issues raised in the appeal and to respond to any questions from 
the SARC. The SARC may also require that FDIC staff participate as the 
SARC deems appropriate.

L. Dismissal, Withdrawal and Rejection

    An appeal may be dismissed by the SARC if it is not timely filed, 
if the basis for the appeal is not discernable from the appeal, or if 
the institution moves to withdraw the appeal. An appeal may be rejected 
if the right to appeal has been cut off under Section D, above.

M. Scope of Review and Decision

    The SARC will review the appeal for consistency with the policies, 
practices and mission of the FDIC and the overall reasonableness of and 
the support offered for the positions advanced, and notify the 
institution, in writing, of its decision concerning the disputed 
material supervisory determination(s) within 45 days from the date the 
SARC meets to consider the appeal, which meeting will be held within 90 
days from the date of the filing of the appeal. SARC review will be 
limited to the facts and circumstances as they existed prior to or at 
the time the material supervisory determination was made, even if later 
discovered, and no consideration will be given to any facts or 
circumstances that occur or corrective action taken after the 
determination was made. The SARC may reconsider its decision only on a 
showing of an intervening change in the controlling law or the 
availability of material evidence not reasonably available when the 
decision was issued.

N. Publication of Decisions

    SARC decisions will be published, and the published SARC decisions 
will be redacted to avoid disclosure of exempt information. In cases 
where redaction is deemed to be insufficient to prevent improper 
disclosure, published decisions may be presented in summary form. 
Published SARC decisions may be cited as precedent in appeals to the 
SARC.

O. SARC Guidelines Generally

    Appeals to the SARC will be governed by these guidelines. The SARC 
will retain the discretion to waive any provision of the guidelines for 
good cause; the SARC may adopt supplemental rules governing SARC 
operations; the SARC may order that material be kept confidential; and 
the SARC may consolidate similar appeals.

P. Limitation on Agency Ombudsman

    The subject matter of a material supervisory determination for 
which either an appeal to the SARC has been filed or a final SARC 
decision issued is not eligible for consideration by the Ombudsman.

Q. Coordination With State Regulatory Authorities

    In the event that a material supervisory determination subject to a 
request for review is the joint product of the FDIC and a State 
regulatory authority, the Director, Division of Supervision and 
Consumer Protection, will promptly notify the appropriate State 
regulatory authority of the request, provide the regulatory authority 
with a copy of the institution's request for review and any other 
related materials, and solicit the regulatory authority's views 
regarding the merits of the request before making a determination. In 
the event that an appeal is subsequently filed with the SARC, the SARC 
will notify the institution and the State regulatory authority of its 
decision. Once the SARC has issued its determination, any other issues 
that may remain between the institution and the State authority will be 
left to those parties to resolve.

R. Effect on Supervisory or Enforcement Actions

    The use of the procedures set forth in these guidelines by any 
institution will not affect, delay, or impede any formal or informal 
supervisory or enforcement action in progress or affect the FDIC's 
authority to take any supervisory or enforcement action against that 
institution.

S. Effect on Applications or Requests for Approval

    Any application or request for approval made to the FDIC by an

[[Page 20362]]

institution that has appealed a material supervisory determination that 
relates to or could affect the approval of the application or request 
will not be considered until a final decision concerning the appeal is 
made unless otherwise requested by the institution.

T. Prohibition on Examiner Retaliation

    The FDIC has an experienced examination workforce and is proud of 
its professionalism and dedication. FDIC policy prohibits any 
retaliation, abuse, or retribution by an agency examiner or any FDIC 
personnel against an institution. Such behavior against an institution 
that appeals a material supervisory determination constitutes 
unprofessional conduct and will subject the examiner or other personnel 
to appropriate disciplinary or remedial action. Institutions that 
believe they have been retaliated against are encouraged to contact the 
Regional Director for the appropriate FDIC region. Any institution that 
believes or has any evidence that it has been subject to retaliation 
may file a complaint with the Director, Office of the Ombudsman, 
Federal Deposit Insurance Corporation, 550 17th Street, Washington, DC 
20429, explaining the circumstances and the basis for such belief or 
evidence and requesting that the complaint be investigated and 
appropriate disciplinary or remedial action taken. The Office of the 
Ombudsman will work with the Division of Supervision and Consumer 
Protection to resolve the allegation of retaliation.

Guidelines for Appeals of Deposit Insurance Assessment Determinations

A. Introduction

    The Assessment Appeals Committee (``AAC'') was formed in 1999 and, 
pursuant to the direction of the FDIC Board of Directors, has been 
functioning as the appellate entity responsible for making final 
determinations pursuant to Part 327 of the FDIC's regulations regarding 
the assessment risk assignment, the assessment payment computation, and 
other related assessment determinations affecting insured depository 
institutions. Institutions that dispute the computation of their 
quarterly assessment payments must comply with the time limits and 
other filing requirements set forth at 12 CFR 327.3(f). Generally, any 
such request may be made within 90 days of the quarterly assessment 
invoice for which a revision is requested. Institutions that dispute 
their risk assignment--or dispute any determination for which review 
may be requested as provided in part 327--must comply with the time 
limits and other filing requirements set forth at 12 CFR 327.4(c). 
Generally, an institution may request review within 90 days from the 
date it receives notice of its risk assignment or other disputed 
determination from the FDIC. The AAC provides a process for considering 
all deposit insurance assessment appeals brought from determinations 
made by the appropriate FDIC divisions pursuant to 12 CFR 327.3(f) and 
327.4(c). The procedures set forth in these guidelines apply to all 
appeals to the AAC.

B. AAC Membership

    The following individuals comprise the five (5) voting members of 
the AAC, representing each member of the FDIC Board of Directors: (1) 
One inside FDIC Board member, either the Vice Chairperson or the 
Director (Appointive), as designated by the FDIC Chairperson (this 
person would serve as Chairperson of the AAC); (2) one of the deputies 
or special assistants to the FDIC Chairperson, to be designated by the 
FDIC Chairperson; (3) a deputy or special assistant to the Office of 
the Comptroller of the Currency's member on the FDIC's Board of 
Directors; (4) a deputy or special assistant to the Office of Thrift 
Supervision's member on the FDIC's Board of Directors; and (5) a deputy 
or special assistant to either the Vice Chairperson or the inside 
Director (Appointive), whoever is not the AAC Chairperson. The General 
Counsel is a non-voting member of the AAC. The FDIC Chairperson may 
designate alternative member(s) for the AAC if vacancies occur. A 
member of the AAC may designate and authorize the most senior member of 
his or her staff within the substantive area of responsibility related 
to cases before the AAC to act on his or her behalf.

C. Institutions Eligible to Appeal

    These guidelines apply to all depository institutions insured by 
the FDIC.

D. Determinations Subject to Appeal

    The AAC, upon appeal by an insured depository institution, reviews 
determinations of the Director of the Division of Insurance and 
Research or the Director of the Division of Supervision and Consumer 
Protection made pursuant to the procedures set forth at 12 CFR 327.4(c) 
regarding the assessment risk assignment provided by the FDIC to the 
institution--or any determination for which review may be requested as 
provided in Part 327--and renders a final determination. The AAC also, 
upon appeal by an insured depository institution, reviews 
determinations made pursuant to 12 CFR 327.3(f) by the Director of the 
Division of Finance regarding the computation of the institution's 
assessment payment and renders a final determination.

E. Appeal to the AAC

    An institution that does not agree with the written determination 
rendered by the appropriate Division Director pursuant to 12 CFR 
327.4(c) and 327.3(f) must appeal that determination to the AAC within 
30 calendar days from the date of the determination. The division 
director's determination will inform the institution of the 30-day time 
limit for filing with the AAC and will provide the mailing address for 
any appeal the institution may wish to file. Failure to file within the 
30-day time period may result in denial of the appeal by the AAC.
    If a Division Director recommends that an institution receive 
relief that the Director lacks delegated authority to grant, the 
Director may, with the approval of the Chairperson of the AAC, transfer 
the matter directly to the AAC without issuing a determination. Notice 
of such a transfer will be provided to the institution. A Division 
Director may also request guidance from the AAC Chairperson as to 
procedural or other questions relating to any request for revision or 
request for review.

F. Filing With the AAC

    An appeal to the AAC will be considered filed if the written appeal 
is received by the FDIC within 30 calendar days from the date of the 
Division Director's written determination or if the written appeal is 
placed in the U.S. mail within that 30-day period. If the 30th day 
after the date of the Division Director's written determination is a 
Saturday, Sunday or Federal holiday, filing may be made on the next 
business day. The appeal should be sent to the address indicated on the 
determination being appealed.

G. Contents of Appeal

    The appeal should be labeled to indicate that it is an appeal to 
the AAC and should contain the name, address, and telephone number of 
the institution and any representative, as well as a copy of the 
determination being appealed. If oral presentation is sought, that 
request should be included in the appeal. Only matters previously 
reviewed at the division level, resulting in either a written 
determination or a direct referral to the AAC, may be appealed to the 
AAC. Evidence not presented for review at the division level may be 
submitted to the AAC only

[[Page 20363]]

if authorized by the AAC Chairperson. The institution should set forth 
all of the reasons, legal and factual, why it disagrees with the 
determination. Nothing in the AAC administrative process shall create 
any discovery or other such rights.

H. Burden of Proof

    The burden of proof as to all matters at issue in the appeal, 
including timeliness of the appeal if timeliness is at issue, rests 
with the institution.

I. Oral Presentation

    The AAC may, in its discretion, whether or not a request is made, 
determine to allow an oral presentation. The AAC generally grants a 
request for oral presentation if it determines that oral presentation 
is likely to be helpful or would otherwise be in the public interest. 
Notice of the AAC's determination to grant or deny a request for oral 
presentation will be provided to the institution. If oral presentation 
is held, the institution will be allowed to present its position on the 
issues raised in the appeal and to respond to any questions from the 
AAC. The AAC may also require that FDIC staff participate as the AAC 
deems appropriate.

J. Dismissal and Withdrawal

    An appeal may be dismissed by the AAC if it is not timely filed, if 
the legal or factual basis for the appeal is not discernable from the 
appeal, or if the institution moves to withdraw the appeal.

K. Scope of Review and Decision

    The AAC will review all submissions concerning an appeal, review 
the final determination being appealed, consider any other matters it 
deems in its discretion to be appropriate, and issue a written decision 
within 60 days from the date the appeal is filed, or within 60 days 
from oral presentation, if held. The AAC may reconsider its decision 
only on a showing of an intervening change in the controlling law or 
the availability of material evidence not reasonably available when the 
decision was issued.

L. Publication of Decisions

    AAC decisions will be published and the published AAC decisions 
will be redacted to avoid disclosure of exempt information. In cases 
where redaction is deemed to be insufficient to prevent improper 
disclosure, published decisions may be presented in summary form. 
Published decisions of the AAC may be cited as precedent in appeals to 
the AAC.

M. AAC Guidelines Generally

    Appeals to the AAC will be governed by these guidelines. The AAC 
will retain the discretion to waive any provision of the guidelines for 
good cause; the AAC may adopt supplemental rules governing AAC 
operations; the AAC may order that material be kept confidential; and 
the AAC may consolidate similar appeals.

N. Effect on Deposit Insurance Assessment Payments

    The use of the procedures set forth in these guidelines by an 
insured institution will not affect, delay, or impede the obligation of 
that institution to make timely payment of any deposit insurance 
assessment.

    By order of the Board of Directors.

    Dated at Washington, DC, this 13th day of April 2010.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2010-8923 Filed 4-16-10; 8:45 am]
BILLING CODE 6714-01-P