[Federal Register Volume 84, Number 70 (Thursday, April 11, 2019)]
[Proposed Rules]
[Pages 14814-14840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06713]



[[Page 14813]]

Vol. 84

Thursday,

No. 70

April 11, 2019

Part III





Federal Deposit Insurance Corporation





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12 CFR Part 370





Recordkeeping for Timely Deposit Insurance Determination; Proposed Rule

  Federal Register / Vol. 84 , No. 70 / Thursday, April 11, 2019 / 
Proposed Rules  

[[Page 14814]]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 370

RIN 3064-AF03


Recordkeeping for Timely Deposit Insurance Determination

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice of proposed rulemaking.

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SUMMARY: The FDIC is seeking comment on a proposed rule that would to 
make certain substantive revisions to ``Recordkeeping for Timely 
Deposit Insurance Determination,'' to clarify the rule's requirements, 
better align the burdens of the rule with its benefits, and make 
technical corrections.

DATES: Comments must be received by May 13, 2019.

ADDRESSES: You may submit comments on the notice of proposed 
rulemaking, identified by RIN number, by any of the following methods:
     Agency Website: http://www.FDIC.gov/regulations/laws/federal. Follow instructions for submitting comments on the agency 
website.
     Email: [email protected]. Include RIN 3064-AF03 in the 
subject line of the message.
     Mail: Robert E. Feldman, Executive Secretary, Attention: 
Comments, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery/Courier: Guard station at the rear of the 
550 17th Street Building (located on F Street) on business days between 
7:00 a.m. and 5:00 p.m.
    Public Inspection: All comments received, including any personal 
information provided, will be posted without change to http://www.fdic.gov/regulations/laws/federal/.

FOR FURTHER INFORMATION CONTACT: Marc Steckel, Deputy Director, 
Division of Resolutions and Receiverships, (571) 858-8224; Teresa J. 
Franks, Associate Director, Division of Resolutions and Receiverships, 
(571) 858-8226; Shane Kiernan, Counsel, Legal Division, (703) 562-2632, 
[email protected]; Karen L. Main, Counsel, Legal Division, (703) 562-
2079, [email protected]; James P. Sheesley, Counsel, Legal Division, 
(703) 562-2047; Andrew J. Yu, Senior Attorney, (703) 562-2784.

SUPPLEMENTARY INFORMATION:

I. Policy Objectives

    The policy objective of the proposed rule is to reduce compliance 
burdens for insured depository institutions (IDIs) covered by the 
FDIC's rule entitled ``Recordkeeping for Timely Deposit Insurance 
Determination'' \1\ (part 370 or the Rule) while continuing to support 
the FDIC's ability to promptly determine deposit insurance coverage in 
the event a covered institution fails. Part 370 requires each IDI with 
two million or more deposit accounts (each a covered institution) to 
(1) configure its information technology system (IT system) to be 
capable of calculating the insured and uninsured amount in each deposit 
account by right and capacity, for use by the FDIC in making deposit 
insurance determinations in the event of the institution's failure, and 
(2) maintain complete and accurate information needed by the FDIC to 
determine deposit insurance coverage with respect to each deposit 
account, except as otherwise provided. After the Rule was adopted and 
while covered institutions began preparing to implement it, the FDIC 
received feedback from covered institutions, industry consultants, 
information technology service providers, and agents placing deposits 
on behalf of others, who identified components of the Rule that are 
insufficiently clear or unduly burdensome. The proposed rule addresses 
these issues by: Establishing the option to extend the part 370 
compliance date for certain institutions; simplifying the process for 
requesting exception from the Rule's requirements; amending the scope 
of certain provisions; and making technical amendments. The proposed 
amendments are likely to reduce compliance burdens for covered 
institutions while still ensuring that covered institutions implement 
the recordkeeping and IT system capabilities needed by the FDIC to make 
a timely deposit insurance determination for an IDI of such size and 
scale.
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    \1\ 12 CFR part 370.
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II. Background

    In 2016, the FDIC adopted part 370 to facilitate prompt payments of 
FDIC-insured deposits when large IDIs fail. By reducing the 
difficulties that the FDIC would face in making a prompt deposit 
insurance determination at a failed covered institution, part 370 
enhances the ability of the FDIC to meet its statutory obligation to 
pay deposit insurance ``as soon as possible'' following failure and to 
resolve the covered institution in the manner least costly to the 
Deposit Insurance Fund (DIF).\2\ Fulfilling these statutory obligations 
is essential to the FDIC's mission. It also achieves significant policy 
objectives: Maintaining public confidence in the FDIC and the banking 
system; enabling depositors to meet their financial needs and 
obligations; preserving the franchise value of the failed covered 
institution and protecting the DIF by allowing a wider range of 
resolution options; and promoting long term stability in the banking 
system by reducing moral hazard. An earlier regulation, the FDIC's rule 
entitled ``Large-Bank Deposit Insurance Determination Modernization'' 
(Sec.  360.9), furthered these policy goals at IDIs having at least $2 
billion in domestic deposits and either 250,000 deposit accounts, or 
$20 billion in total assets.\3\ Part 370 provides the necessary 
additional measures required by the FDIC to ensure prompt and accurate 
payment of deposit insurance to depositors of the larger, more complex 
IDIs that qualify as covered institutions.
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    \2\ 12 U.S.C. 1821(f)(1); 12 U.S.C. 1823(c)(4).
    \3\ 12 CFR 360.9. See 73 FR 41180 (July 17, 2008).
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    The FDIC is authorized to prescribe rules and regulations as it may 
deem necessary to carry out the provisions of the Federal Deposit 
Insurance Act (FDI Act).\4\ To pay deposit insurance, the FDIC uses a 
failed IDI's records to aggregate the amounts of all deposits that are 
maintained by a depositor in the same right and capacity and then 
applies the standard maximum deposit insurance amount (SMDIA) of 
$250,000.\5\ The FDIC generally relies on the failed institution's 
deposit account records to identify deposit owners and the right and 
capacity in which deposits are maintained.\6\ Section 7(a)(9) of the 
FDI Act authorizes the FDIC to take action as necessary to ensure that 
each IDI maintains, and the FDIC receives on a regular basis from such 
IDI, information on the total amount of all insured deposits, preferred 
deposits, and uninsured deposits at the institution.\7\ The 
requirements of part 370, obligating covered institutions to maintain 
complete and accurate records regarding the ownership and insurability 
of deposits and to have an IT system that can be used to calculate 
deposit insurance coverage in the event of failure, facilitate the 
FDIC's prompt payment of deposit insurance and enhance the ability to 
implement the least costly resolution of these institutions.
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    \4\ 12 U.S.C. 1819(a) (Tenth), 1820(g), 1821(d)(4)(B)(iv).
    \5\ 12 U.S.C. 1821(a)(1)(C), 1821(a)(1)(E).
    \6\ 12 U.S.C. 1822(c), 12 CFR 330.5.
    \7\ 12 U.S.C. 1817(a)(9).
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    Part 370 became effective on April 1, 2017, with a compliance date 
of April 1, 2020, for IDIs that became covered

[[Page 14815]]

institutions on the effective date.\8\ The FDIC has carried out a 
continuous outreach program to covered institutions, trade 
associations, and other interested parties since issuing part 370. The 
FDIC learned through its interactions with these parties about issues 
and challenges they face in implementing the capabilities required by 
part 370. These include: The need for additional time to complete this 
complex exercise; concerns regarding the nature of the compliance 
certification; the effect of mergers; the scope of the definition of 
``transactional features''; and the covered institution's ability to 
certify performance by a third party with respect to submission of 
information to the FDIC within 24 hours for deposit accounts with 
transactional features that are insured on a pass-through basis.
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    \8\ 81 FR 87734, 87738 (December 5, 2016); 12 CFR 370.2(d).
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    The FDIC acknowledges that the burden of complying with some of the 
requirements of part 370 with regard to certain types of accounts is 
not commensurate with the benefit of improvements to prompt payment of 
deposit insurance and resolvability that such compliance achieves. 
Further, practical difficulties in implementation justify an extension 
of the initial compliance date for those covered institutions that 
became covered institutions on the initial effective date of the Rule. 
Accordingly, the FDIC is issuing this notice of proposed rulemaking 
(NPR) to amend part 370 (the proposal, proposed rule, or proposed 
amendments) to provide for elective extension of the compliance date, 
revise the treatment of deposits created by credit balances on debt 
accounts, modify the requirements relating to accounts with 
transactional features, change the procedures regarding exceptions, and 
clarify matters relating to certification requirements. The proposed 
amendments would also make certain technical changes to part 370 and 
correct typographical errors. These proposed amendments would better 
align the burdens imposed by part 370 upon covered institutions with 
the resultant benefits in terms of achievement of the FDIC's statutory 
obligations and policy objectives.

III. Discussion of Proposed Amendments and Request for Comment

A. Summary

    The FDIC is undertaking this notice of proposed rulemaking to amend 
part 370 in advance of the compliance date for the first covered 
institutions. The FDIC is proposing to make extensive changes to part 
370. Therefore, the FDIC is proposing to revise the text of part 370 in 
full rather than prepare fragmentary amendments. The proposal would, 
among other things:
     Include an optional one-year extension of the compliance 
date upon notification to the FDIC;
     provide clarifications regarding certification of 
compliance under Sec.  370.10, and the effect of a change in law or a 
merger on compliance;
     provide for voluntary compliance with part 370;
     revise the actions that must be taken under Sec.  370.5(a) 
with respect to deposit accounts with transactional features that are 
insured on a pass-through basis;
     amend the recordkeeping requirements set forth in Sec.  
370.4 for certain types of deposit relationships;
     clarify the process for exceptions requested pursuant to 
Sec.  370.8(b), provide for published notice of the FDIC's responses, 
and provide that certain exceptions may be deemed granted; and
     make corrections and technical and conforming changes.

B. Elective Extension of the Compliance Date

    Section 370.2(d) establishes the initial compliance date as the 
date that is three years following either the effective date of part 
370 or the date on which an IDI becomes a covered institution, 
whichever is later. In order to comply with part 370, covered 
institutions must add a new set of capabilities in their IT systems and 
a new level of regularity in their recordkeeping. Part 370 became 
effective on April 1, 2017, so each insured depository institution that 
became a covered institution on that date has a compliance date of 
April 1, 2020. The FDIC recognizes that some of these covered 
institutions may need additional time to implement these new 
capabilities. The FDIC has determined that an extension of up to one 
year would help these covered institutions more efficiently focus their 
efforts on complying with part 370 rather than on seeking exceptions to 
compliance with part 370. Accordingly, the FDIC proposes to add a new 
paragraph (b)(2) to Sec.  370.6 that would provide covered institutions 
that became covered institutions on the effective date with the option 
to extend their April 1, 2020, compliance date by up to one year (as 
late as April 1, 2021) upon notification to the FDIC. The notification 
would need to be provided to the FDIC prior to the original April 1, 
2020, compliance date and state the total number of, and dollar amount 
of deposits in, deposit accounts for which the covered institution 
expects its IT system would not be able to calculate deposit insurance 
coverage as of the original April 1, 2020, compliance date. This 
information would help the FDIC understand the extent to which the 
covered institution's capabilities could be utilized prior to the 
extended compliance date should those capabilities be needed. In 
connection with this proposed amendment, the definition of compliance 
date in Sec.  370.2(d) would also be revised to reference Sec.  
370.6(b).
    Questions: The FDIC invites comment on its proposal to allow 
insured depository institutions that became covered institutions on 
April 1, 2017, to extend their compliance date by up to one year. What 
are the advantages or disadvantages of extending the compliance date? 
Is this one-year extension too long or too short? Why? Should this 
extension option be available to all current covered institutions? What 
alternatives, if any, should the FDIC consider?

C. Compliance

1. Part 370 Compliance Certification and Deposit Insurance Summary 
Report
    The proposed amendments to Sec.  370.10(a)(1) address the 
requirements for the certification of compliance that a covered 
institution must submit to the FDIC upon its initial compliance date 
and annually thereafter. The FDIC is proposing to clarify that the 
timeframe within which a covered institution must implement the 
capabilities needed to comply with part 370 and test its IT system is 
the ``preceding twelve months'' rather than during the ``preceding 
calendar year.'' Because a covered institution's compliance date might 
not coincide with the end of a calendar year, there was confusion over 
whether a covered institution's self-test must occur during the 
calendar year before a covered institution's compliance date even if 
the compliance date is in the next calendar year. This proposed 
amendment is intended to clarify that a covered institution must 
certify that it has implemented the capabilities required by part 370 
and has tested those capabilities at least once during the preceding 12 
months.
    The FDIC proposes to revise the testing standard for the 
certification from confirmation that a covered institution has 
``successfully tested'' its IT system to confirmation that ``testing 
indicates that the covered institution is in compliance . . .'' because

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``successful'' testing is a subjective standard. Some covered 
institutions have questioned whether testing can be considered 
``successful'' if they identify deficiencies in compliance. The 
objective of part 370 is for a covered institution to implement the 
recordkeeping and IT system capabilities that would enable the FDIC to 
conduct a deposit insurance determination for all of a covered 
institution's deposit accounts. To do this, a covered institution's IT 
system must be capable of calculating deposit insurance coverage for 
accounts once all information needed to do so is available.
    The FDIC also proposes to clarify the standard to which the Sec.  
370.10(a)(1) compliance certification is made by revising this 
paragraph to state that the certification must be made to the best of 
the executive's ``knowledge and belief after due inquiry.'' Covered 
institutions and their representatives have expressed concern that the 
current language could be viewed as creating a liability standard by 
which an executive could be held liable should the covered institution 
experience any deficiency in compliance. This proposed amendment would 
clarify that the executive's essential duty is to take reasonable steps 
to ensure and verify that the certification is accurate and complete to 
the best of his or her knowledge after due inquiry.
    Questions: The FDIC invites comment on its proposed amendments to 
Sec.  370.10(a)(1). What level of certainty should a covered 
institution's executive have that the requirements of part 370 are 
being met? Are the standards for the certification clear? Are they 
appropriate? If not, why not? What other changes to this certification 
requirement should the FDIC consider making, if any?
2. Effect of Changes to Law
    The FDIC recognizes that future changes to law could impact a 
covered institution's compliance with the requirements of part 370 by, 
among other things, changing deposit insurance coverage and related 
recordkeeping and calculation requirements. These changes in law may be 
made with immediate effect, yet the covered institutions may reasonably 
require time to collect necessary records and reconfigure their IT 
systems to calculate deposit insurance under the changed laws. The FDIC 
is proposing to add a new paragraph (d) to Sec.  370.10 to address the 
effect of changes to law that alter the availability or calculation of 
deposit insurance. This new paragraph (d) would provide that a covered 
institution would not be in violation of part 370 as a result of such 
change in law for such period as specified by the FDIC following the 
effective date of such change in law. The FDIC would publish notice of 
the specified period of time in the Federal Register.
    Questions: The FDIC invites comment on its proposal to add a new 
paragraph (d) to Sec.  370.10 to allow a covered institution time to 
consider and address changes in law that alter the availability, or 
calculation of, deposit insurance and thereby would impact a covered 
institution's compliance with part 370. Should a minimum period of time 
following a change in law be added? Why? What alternatives, if any, 
should the FDIC consider?
3. Effect of Merger Involving a Covered Institution
    Part 370 does not expressly address mergers. Under the Rule, a 
covered institution is required to comply with the requirements of part 
370 on and after its compliance date without regard for complications 
that could be caused by merger. The covered institution would need to 
ensure that it is in compliance with respect to its newly acquired 
deposit accounts and IT systems unless it had requested and been 
granted a time-limited exception by the FDIC.
    The FDIC recognizes that covered institutions may need time after a 
merger to come into compliance with part 370 again. For that reason, 
the FDIC proposes to add a new paragraph (e) to Sec.  370.10 to provide 
a covered institution with a one-year period following the effective 
date of its merger with another insured depository institution to 
ensure that new deposit accounts and IT systems comply with the 
requirements of part 370. This proposed one-year period would not 
extend a covered institution's preexisting compliance date; rather, it 
would provide a one-year grace period to remedy deficiencies in 
compliance resulting from the merger. In cases where this one-year 
period is not sufficient, a covered institution could request a time-
limited exception for additional time to integrate deposit accounts or 
IT systems. To illustrate, if a covered institution merges with an 
insured depository institution that is not a covered institution, then 
the covered institution's compliance date would not change, but it 
would have a one-year period to bring the deposit accounts from the 
merged institution into compliance with the requirements of part 370. 
If two insured depository institutions, neither a covered institution, 
merge to become a covered institution, then the new covered institution 
would be required to comply with part 370 by its compliance date and 
the one-year grace period provided under this proposed paragraph would 
not be applicable. If two covered institutions merge, then the one-year 
grace period provided under this proposed paragraph would apply, but 
only with respect to instances of non-compliance occurring as the 
direct result of the merger.
    Questions: The FDIC invites comment on its proposal to add a new 
paragraph (e) to Sec.  370.10 to provide a one-year grace period for 
instances of non-compliance following merger. Is a one-year grace 
period sufficient? If not, how much time would be sufficient and why? 
Should a grace period be considered for deposit assumption transactions 
as well? What alternatives, if any, should the FDIC consider?

D. Voluntary Compliance With Part 370

    The proposed amendments would provide a mechanism for voluntary 
compliance with part 370, which may be mutually beneficial to both the 
FDIC and certain insured depository institutions. Part 370 currently 
defines a ``covered institution'' as an insured depository institution 
that had two million or more deposit accounts during the two 
consecutive quarters preceding the Rule's effective date of April 1, 
2017, or once it has two million or more deposit accounts for two 
consecutive quarters thereafter. The FDIC proposes to expand the 
definition to include any other insured depository institution that 
voluntarily opts into coverage. To do so, an IDI would deliver written 
notice to the FDIC stating that it will voluntarily comply with the 
requirements of part 370. Such an insured depository institution would 
be considered a covered institution as of the date on which the FDIC 
receives the notification.
    The proposed amendments also designate a compliance date for 
insured depository institutions that voluntarily become covered 
institutions pursuant to the proposed Sec.  370.2(c)(2). The proposed 
rule would add a new paragraph (d)(3) to Sec.  370.2 providing that the 
compliance date for such an IDI would be the date on which the covered 
institution submits its first certification of compliance and deposit 
insurance coverage summary report pursuant to Sec.  370.10(a). The FDIC 
recognizes that while an insured depository institution could 
voluntarily become a covered institution under the proposed amendments, 
the FDIC should not enforce the requirements of the Rule upon such a 
covered institution until after it submits a certification of

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compliance and deposit insurance coverage report.
    As a result of this proposed amendment, an IDI that is not covered 
under part 370 but is covered under Sec.  360.9 (a 360.9 institution) 
could voluntarily comply with part 370 and be released from Sec.  
360.9, pursuant to Sec.  370.8(d), upon submission of the compliance 
certification and deposit insurance summary report to the FDIC as 
required under Sec.  370.10(a). A 360.9 institution must continue to 
comply with Sec.  360.9 until it meets the conditions for release. A 
significant benefit of this proposed amendment would be that a banking 
organization with one part 370 covered institution and one 360.9 
institution could develop a single unified deposit recordkeeping and IT 
system that would be compliant with part 370 and no longer have to 
maintain a separate, parallel system to satisfy the requirements of 
Sec.  360.9.
    Questions: The FDIC invites comment on its proposal to revise Sec.  
370.2(c) to allow an insured depository institution that does not have 
two million or more deposit accounts to voluntarily comply with part 
370. Would insured depository institutions that are not covered 
institutions under part 370 elect to voluntarily comply? If your 
banking organization consists of both a part 370 covered institution 
and a 360.9 institution, would it consider voluntarily complying with 
part 370? What alternatives, if any, should the FDIC consider?

E. Transactional Features

1. Purpose for Identifying Deposit Accounts With ``Transactional 
Features''
    In formulating part 370, the FDIC recognized that for certain types 
of deposit accounts, depositors need daily access to funds, but deposit 
insurance determinations regarding some of these accounts requires 
access to records that an IDI is not required to maintain under the 
existing regulatory framework. For example, deposits may be insured on 
a pass-through basis under part 330, with records maintained outside of 
the IDI by an agent or third party authorized to maintain such records. 
Creating appropriate recordkeeping requirements for those accounts for 
which the information need not reside at the covered institution, and 
providing for their timely delivery in a format that permits the FDIC 
to use a covered institution's IT system to calculate deposit insurance 
promptly in the event of a failure, was a central concern of the part 
370 rulemaking process.
    Originally, in the Advance Notice of Proposed Rulemaking (ANPR) 
relating to part 370,\9\ the FDIC presented a potential solution that 
involved identifying a large subset of deposits as ``closing night 
deposits.'' Under this approach, the covered institution would be 
required to obtain and maintain data on all closing night deposits at 
the end of any business day sufficient to make deposit insurance 
determinations on closing night. Comments to the ANPR led the FDIC to 
conclude that there was no consensus among potential covered 
institutions and other interested parties as to what deposits should be 
considered ``closing night deposits.'' The FDIC proposed, in the Notice 
of Proposed Rulemaking for part 370,\10\ requiring covered institutions 
to collect and maintain the necessary depositor information for all 
deposit accounts, with limited exceptions. Commenters raised concerns 
about the volume and nature of data that would be transmitted nightly 
under such approach.
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    \9\ 80 FR 23478 (April 28, 2015).
    \10\ 81 FR 10026 (February 26, 2016).
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    In issuing the final rule, the FDIC adopted a bifurcated approach 
to recordkeeping requirements. The FDIC generally requires that a 
covered institution itself maintain the complete set of information 
required to allow the FDIC to promptly determine the deposit insurance 
coverage for each deposit account. But for certain accounts, including 
those that may meet the requirements of Sec. Sec.  330.5 (Recognition 
of deposit ownership and fiduciary relationship) and 330.7 (Accounts 
held by agent, nominee, guardian, custodian or conservator) and certain 
trust accounts, this information may be maintained off-site and with 
third parties rather than at the covered institution. These accounts 
are ``alternative recordkeeping'' accounts under part 370. The FDIC 
recognized, however, that some alternative recordkeeping accounts may 
support depositors' routine financial needs and require a prompt 
deposit insurance determination to avoid delays in payment processing 
should the covered institution's deposit operations be continued by a 
successor institution.\11\ The FDIC created a definition of 
``transactional features'' to identify such accounts and required 
covered institutions to certify that, for alternative recordkeeping 
accounts with transactional features, the account holder will submit to 
the FDIC the information necessary to complete a deposit insurance 
calculation with regard to the account within 24 hours following the 
appointment of the FDIC as receiver. The FDIC provided a set of 
exceptions to this certification requirement as well.
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    \11\ 81 FR 87737, 87740. The successor institution may be an 
open institution that acquires these operations or accepts the 
transfer of the failed covered institution's insured deposit 
liabilities, or a bridge bank organized by the FDIC for such 
purposes. A failed covered institution's deposit operations will not 
be continued in all potential resolution scenarios.
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    The proposed amendments would retain the bifurcated approach to 
recordkeeping requirements but change the definition used to describe 
accounts with transactional features, as well as revise the actions of 
the covered institution required with respect to alternative 
recordkeeping accounts with transactional features; the set of 
exceptions to the requirements has been amended as well.
2. Proposed Amendments to the Definition of ``Transactional Features''
    The proposed amendments would narrow the definition of 
transactional features to focus on accounts capable of making transfers 
directly from the covered institution to third parties by methods that 
would necessitate a prompt insurance determination to avoid disruptions 
to payment processing. Interested parties have expressed concerns that 
the current transactional features definition is over-inclusive, 
capturing accounts for which the FDIC would not need to make a deposit 
insurance determination within 24 hours to achieve its policy goals of 
preserving stability and avoiding disruption to depositors. Under the 
existing definition, an account has transactional features if it can be 
used ``to make payments or transfers to third persons or others 
(including another account of the depositor or account holder at the 
same institution or at a different institution)'' by use of any of a 
long list of methods. Examples of such deposit accounts include, but 
are not limited to: Deposits placed by third parties with associated 
sweep accounts, whether or not those sweep accounts are categorized as 
brokered deposits, and prepaid accounts.\12\ The FDIC remains concerned 
that if the funds in these accounts are not accessible on the next 
business day after a covered institution's failure because the FDIC 
cannot complete the deposit insurance determination, then ``the 
inability to access their funds could result in returned checks and an 
inability to handle their day-to-day financial obligations.'' \13\ This 
breadth of included

[[Page 14818]]

transfer methods, together with the impression that the described set 
of transferees is all-inclusive, created the impression among some 
interested parties that the FDIC intended that all accounts other than 
some accounts comprised of time deposits fall into the transactional 
features definition.
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    \12\ 81 FR 87734, 87751 (December 5, 2016).
    \13\ Id. at 87752.
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    The FDIC intends that the transactional features definition itself 
capture only the subset of alternative recordkeeping accounts for which 
an insurance determination within 24 hours following its appointment as 
receiver is essential to fulfillment of its policy objectives noted 
above. Accordingly, it proposes to amend the definition to narrow the 
set of accounts that are identified as having transactional features 
for purposes of part 370. The proposed amendments would define 
transactional features primarily by reference to the parties who can 
receive funds directly from the account by methods that may not be 
reflected in the close-of-business account balance on the day of 
initiation of such transfer. If the account can be used to make 
transfers to parties other than the account holder, the beneficial 
owner of the deposits, or the covered institution itself, by use of a 
method that results in the transfer not being reflected in the close-
of-business ledger balance for the account on the day the transfer is 
initiated, it is an account with transactional features. Generally, 
under FDIC rules,\14\ on the day of failure, transfers that are 
included in the close-of-business account balance for an account will 
be completed, with funds transferred out of the account not being 
included in the deposit insurance determination for the account. 
Therefore, such transfers will not be affected by the deposit insurance 
determination, and any delay in completing the deposit insurance 
determination for such account will not create delays in processing 
payments.
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    \14\ See 12 CFR 360.8.
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    Application of this approach can be illustrated by two examples. In 
the first example, an account that can be used by the account holder or 
depositor to initiate transfers to other parties by check--a method 
that may not be reflected on the day of such transfer is initiated, 
even if prior to the cutoff time for that specific type of 
transaction--would be an account with transactional features under the 
proposed definition. This transfer may not be reflected in the close-
of-business ledger balance for the account when initiated by delivery 
of the check to the payee. Under part 370, the FDIC should receive the 
information necessary to complete a deposit insurance determination 
with regard to such an account within 24 hours following its 
appointment as receiver, providing it the ability to minimize 
disruption to payment processing if the covered institution's deposit 
operations are continued following the resolution. In the second 
example, an account that can only be used to make transfers to others 
by wire transfer--a method that is reflected in the close-of-business 
balance for the account if initiated prior to the cutoff time--is not 
an account with transactional features solely as a result of this 
transfer capability. The funds transmitted by a timely initiated wire 
are not included in the close-of-business balance for the account, so 
no deposit insurance determination with regard to the account is 
required in connection with the processing of that payment.
    The proposed definition of transactional features contains an 
additional provision, intended to include linked accounts that support 
accounts with transactional features. Under this provision, an account 
also has transactional features if preauthorized or automatic transfer 
instructions provide for transfers to an account with transactional 
features at the same institution. These automatic or preauthorized 
instructions indicate that the deposits in such account are integral to 
supporting payment processing in the account with transactional 
features, such that completing a deposit insurance determination in the 
account otherwise lacking transactional features is essential to 
ensuring continuing processing of payment instructions at the account 
with transactional features. It is therefore appropriate to subject 
such account to the same expectations regarding timely delivery of the 
information needed to conduct a deposit insurance determination should 
the covered institution fail.
    Unlike under the current definition, the capability to make 
transfers to another account of the depositor or account holder at 
another institution does not itself result in an account having 
transactional features for purposes of part 370 under the proposed 
definition. The prior definition included such capabilities to capture 
accounts associated with brokered sweep accounts and prepaid account 
programs administered by a third party that places deposits at an IDI 
on behalf of the cardholders or other depositors, regardless of whether 
such accounts were traditional transactional accounts, such as demand 
deposit accounts, or money market deposit accounts (MMDA) or savings 
accounts not traditionally considered transactional in nature. By 
including these accounts, the FDIC sought to enable deposit insurance 
determinations within 24 hours following the FDIC's appointment based 
on its belief that such accounts were relied upon for transactions and 
material delay could undermine public confidence and be extremely 
disruptive.\15\ In order to achieve this goal, the final rule required 
covered institutions to make certifications, described below, regarding 
future delivery of depositor information by third parties that are not 
under the control of the covered institution or subject to regulation 
by the FDIC. Engagement with deposit brokers, covered institutions and 
their representatives during implementation suggested that the benefit 
of these requirements might be less than expected, and the burdens of 
compliance greater given the wide variety of account types, third 
parties, and arrangements involved.
---------------------------------------------------------------------------

    \15\ 81 FR 87734, 87740 (December 5, 2016).
---------------------------------------------------------------------------

    Many brokered sweep programs and prepaid card programs operate 
through arrangements involving one or more intermediate or clearing 
accounts located at institutions other than the covered institution. 
The day-to-day transactional activity in such programs can occur in 
accounts outside of the covered institution, with the account at the 
covered institution being accessed less frequently. The net activity of 
all of the customers in the program determines whether the periodic 
activity in the account at the covered institution is a deposit or 
withdrawal. Covered institutions noted that the other parties involved 
in the administration of such programs, such as the deposit brokers, 
broker dealers, program managers, and administrators, have ongoing 
business relationships with the brokered deposit sweep and prepaid card 
customers and with other third parties involved in processing customer 
transactions.
    Where customer transactions originate with an instruction first 
presented to an account at an IDI other than the covered institution, 
the need to conduct a deposit insurance determination within 24 hours 
after the covered institution's failure may not exist. According to 
some of the covered institutions and other industry representatives, 
the net activity of customers or the schedule for accessing the account 
at the covered institution, may result in no draw on the account at the 
covered institution in the days following failure. Further, interested 
parties have stated that actions by the other parties involved in the 
program, such as advancing funds to

[[Page 14819]]

intermediate accounts during the pendency of a deposit insurance 
determination to preserve customer relationships, may further 
ameliorate any disruption to depositors resulting from the failure. As 
a result, requiring that information needed for deposit insurance 
determination be delivered in such timeframe may be less beneficial and 
more burdensome than anticipated. The proposed definition thus no 
longer captures accounts which transfer to other accounts of the 
depositors or account holders at IDIs other than the covered 
institution. It is possible that customers of broker dealers who have 
cash management accounts or certain prepaid cardholders may experience 
a delay in their ability to access the funds in their accounts or that 
underlie their cards if the settlement or processing of their 
transactions takes place at another IDI but are funded by deposits held 
in the covered institution.
    Prepaid cardholders should, however, have access to the funds 
loaded on their cards on the next business day after a covered 
institution fails when prepaid card programs are structured so that the 
cardholders' transactions actually settle through a deposit account at 
the covered institution. Note that the proposed definition of accounts 
with ``transactional features'' includes linked accounts wholly within 
the covered institution, to the extent that those accounts support an 
account with transactional features. Accordingly, a savings account at 
the covered institution that supports, via automatic or preauthorized 
instructions, a demand deposit account at the covered institution that 
can be accessed by prepaid cards or checks--methods that may not be 
reflected in the close-of-business ledger balance of the account--is 
itself considered an account with transactional features for purposes 
of the proposed definition. Finally, when the covered institution 
issues the prepaid cards and acts as the program manager of the prepaid 
account program (and thus, maintains the requisite information 
regarding the prepaid cardholders), then the prepaid cardholders would 
have access to their funds on the next business day after the covered 
institution's failure.
    Questions: The FDIC invites comment on the proposed definition of 
transactional features. Does the proposed definition improve the 
description of such accounts? Is the focus on whether or not transfers 
are reflected in the close-of-business ledger balance for the account a 
workable approach to defining the transfer capabilities of an account 
that do not result in it having transactional features? Should other 
transfers be included in that category? Is it reasonable for the FDIC 
to rely upon the covered institutions' and other industry 
representatives' representations regarding the necessity of funds 
availability in these accounts immediately after failure? Is it 
possible for the covered institutions to evaluate the potential 
hardship for broker dealer customers or prepaid cardholders when the 
programs are structured so that their transactions would settle at 
another IDI? Should the proposed rule simply remove the definition of 
transactional features and provide that any special requirements for 
certain types of deposit accounts be applicable without regard for 
whether the accounts do or do not have transactional features? What are 
the other advantages or disadvantages of this proposed amendment? What 
alternatives, if any, should the FDIC consider?
3. Actions Required for Certain Deposit Accounts With Transactional 
Features Under Sec.  370.5(a)
    As part 370 stands now, for those deposit accounts that a covered 
institution maintains its deposit account records in accordance with 
the alternative recordkeeping requirements set forth in Sec.  
370.4(b)(1) and that also have transactional features, the covered 
institution must certify to the FDIC that the account holder ``will 
provide to the FDIC the information needed . . . to calculate deposit 
insurance coverage . . . within 24 hours after'' failure. Covered 
institutions have expressed concern that this provision imposes a duty 
on a covered institution to control the actions that an account holder 
must take after failure, and that a covered institution employee who 
signs the certification could be liable to the FDIC if an account 
holder does not take those actions. The FDIC designed this provision 
with the expectation that covered institutions would work with account 
holders to create a mechanism by which account holders are able to 
provide, upon the covered institution's failure, the information 
necessary for the covered institution's IT system to calculate deposit 
insurance coverage.
    It was not the FDIC's intent to make a covered institution or a 
covered institution's employees liable for the actions, or inactions, 
of an account holder. For this reason, the FDIC is proposing to revise 
paragraph (a) of Sec.  370.5 by removing the certification requirement 
and instead requiring covered institutions to take ``steps reasonably 
calculated'' to ensure that the account holder would provide to the 
FDIC the information needed for the FDIC to use a covered institution's 
part 370-compliant IT system to accurately calculate deposit insurance 
available for the respective deposit accounts within 24 hours after the 
failure of the covered institution. This change should clarify that the 
covered institution would be expected to design and implement in its IT 
system the capability to use information provided by account holders 
after the covered institution's failure. This change should also 
clarify that neither the covered institution nor its employees would be 
responsible for the actions that an account holder does or does not 
actually take to supply such information after the covered 
institution's failure.
    Covered institutions would have discretion to determine the methods 
by which this requirement may be accomplished, but at a minimum ``steps 
reasonably calculated'' would include having contractual arrangements 
in place with account holders that would obligate those account holders 
to deliver information needed for deposit insurance calculation to the 
FDIC in a format compatible with the covered institution's IT system 
immediately upon the covered institution's failure and a disclosure 
that informs account holders that their delay in delivery of 
information to the FDIC, or submission in a format that is not 
compatible with the covered institution's IT system, could result in 
delayed access to deposits should the covered institution fail and the 
FDIC need to conduct a deposit insurance determination. This 
requirement would apply to any deposit account for which the details of 
the deposit relationship and the interests of the underlying beneficial 
owners of the deposits are not in records maintained by the covered 
institution, but in records maintained by the account holder or by some 
person or entity that has undertaken to maintain such records for the 
account holder. There could be a delay in the availability of the 
deposits at the covered institution because the information needed to 
complete the deposit insurance determination must first be provided by 
the account holder. This situation would apply to any accounts eligible 
for pass-through deposit insurance coverage unless the underlying 
information regarding beneficial ownership of deposits is maintained at 
the covered institution.
    As a result of the proposed amendment discussed above, a conforming 
amendment would need to be made to paragraph (c) of Sec.  370.5, which 
provides that a covered institution will not be in violation of part 
370 if the FDIC has granted the

[[Page 14820]]

covered institution relief from the certification requirement set forth 
in Sec.  370.5(a). The proposed amendment to Sec.  370.5(a) would 
remove the certification requirement and Sec.  370.5(c) would no longer 
be relevant. Therefore, the FDIC is proposing to remove paragraph (c) 
from Sec.  370.5.
    Questions: The FDIC invites comment on its proposal to revise Sec.  
370.5(a) to clarify the actions a covered institution must take 
pursuant to that paragraph. Generally, would a contractual mechanism 
between a covered institution and an account holder that requires 
immediate submission of information needed for deposit insurance 
calculation help ensure that deposit insurance can be determined 
quickly for these accounts so that insured deposits can be made 
available as soon as possible? What are the advantages or disadvantages 
of adding this language? Does it provide greater clarity regarding the 
requirements and purpose therefor?
    Should this requirement apply to all alternative recordkeeping 
accounts or should it be limited to only those accounts that meet the 
revised definition of transactional features? Is it more burdensome for 
covered institutions and account holders to draw a distinction between 
alternative recordkeeping accounts with transactional features and 
those without than it would be to simply apply the requirement to all 
alternative recordkeeping accounts?
    What impediments, if any, prevent a covered institution from adding 
language to certain of its deposit account agreements to address means 
by which an account holder could submit information to the FDIC after 
failure of the covered institution so that the FDIC, using the 
capabilities of a covered institution's part 370 compliant IT system, 
could quickly and accurately calculate deposit insurance and provide 
access to the relevant deposit account(s)? Would account holders be 
more likely to supply information needed to calculate deposit insurance 
coverage in a format compatible with the covered institution's IT 
system immediately after the covered institution's failure if they are 
contractually obligated to?
    What impediments, if any, prevent a covered institution from 
providing notice to certain account holders that the account holders' 
delay in providing information to the FDIC after the covered 
institution's failure may delay access to deposits? Are covered 
institutions or their account holders receptive to the idea of using 
technology to expedite the process by which the FDIC determines deposit 
insurance? What alternatives, if any, should the FDIC consider if this 
approach is unworkable?
4. Exceptions From the Requirements of Sec.  370.5(a) for Certain Types 
of Deposit Accounts
    Currently, Sec.  370.5(b) provides an enumerated list of accounts 
that a covered institution need not address in order to make the 
certification required pursuant to Sec.  370.5(a). The FDIC proposes to 
retain this list of excepted deposit account types to be clear that 
covered institutions would not be required to take the actions 
prescribed in revised Sec.  370.5(a) for those types of accounts. 
Additionally, the FDIC proposes to make three revisions to this list. 
First, the FDIC is proposing to expand the exception for mortgage 
servicing accounts under Sec.  370.5(b)(1) to include all deposits in 
such an account. Under the Rule, mortgage servicing accounts are 
excepted from the Sec.  370.5(a) requirement only to the extent that 
those accounts are comprised of principal, interest, taxes, and 
insurance. Covered institutions have represented to the FDIC that 
deposits for other purposes, such as reserves, may also be held in 
mortgage servicing accounts. Removing this limitation clarifies that 
covered institutions need not take the actions required under Sec.  
370.5(a) with respect to those accounts.
    Second, the FDIC is proposing a technical amendment to Sec.  
370.5(b)(4) to correct an incorrect cross reference. The applicable 
section of the FDIC's regulations governing deposit insurance coverage 
for deposit accounts held in connection with an employee benefit plan 
is 12 CFR 330.14, not 12 CFR 330.15(f)(2).
    Third, the FDIC is proposing to add to this list deposit accounts 
maintained by an account holder for the benefit of others to the extent 
that the deposits in the custodial account are held for: A formal 
revocable trust that would be insured as described in 12 CFR 330.10; an 
irrevocable trust that would be insured as described in 12 CFR 330.12; 
or an irrevocable trust that would be insured as described in 12 CFR 
330.13. The FDIC recognizes that an account holder that places deposits 
with a covered institution on behalf of such a trust may not be able to 
immediately provide to the FDIC all of the information needed to 
calculate the total amount of coverage available for deposits insured 
in any one of these three deposit insurance categories should the 
covered institution fail. It may take some time for an account holder 
to obtain such information from a trustee, who in turn may need time to 
review the relevant trust document and confirm the status of the 
trust's beneficiaries and the nature of those beneficiaries' interests 
in the assets of the trust at the time of the covered institution's 
failure. After the information is submitted by the account holder, the 
FDIC will need to review trust-specific documentation to verify 
eligibility for deposit insurance and calculate the amount of coverage 
available. Moreover, including custodial deposit accounts holding trust 
deposits among the list of exceptions set forth in Sec.  370.5(b), to 
the extent that those accounts are comprised of trust deposits that 
would be insured in one of these three deposit insurance categories, 
would be more consistent with the recordkeeping requirements for trust 
accounts set forth in Sec.  370.4(b)(2). This is the case because 
deposit accounts for which a covered institution maintains its deposit 
account records in accordance with Sec.  370.4(b)(2) would be processed 
after the information needed for deposit insurance determination is 
provided by the account holder and the timing for that information 
submission is within the account holder's discretion and control.
    Questions: The FDIC invites comment on its proposal to revise Sec.  
370.5(b) to add an exception for deposit accounts with transactional 
features that are insured on a pass-through basis, to the extent that 
the deposits in that deposit account are held for the benefit of a 
formal revocable trust that would be insured as described in 12 CFR 
330.10, an irrevocable trust that would be insured as described in 12 
CFR 330.12, or an irrevocable trust that would be insured as described 
in 12 CFR 330.13. In order to determine whether this exception would 
apply, are covered institutions able to identify the extent to which 
such an account is comprised of deposits that would be insured in one 
of the three deposit insurance categories that provide additional 
deposit insurance for trusts? What are the advantages or disadvantages 
of this proposed amendment? Generally, would delayed access to deposits 
in these accounts present hardship to the account holder or the 
beneficial owner(s) of the deposits? What alternatives, if any, should 
the FDIC consider?
    Should other types of deposit accounts be included in the list of 
exceptions set forth in Sec.  370.5(b)? Why should those types of 
deposit accounts be excepted? What would be the consequences of delayed 
access to the deposits in those types of deposit accounts if the 
account holder does not

[[Page 14821]]

supply information needed for deposit insurance calculation immediately 
upon a covered institution's failure?

F. Recordkeeping Requirements

1. Alternative Recordkeeping Requirements for Certain Trust Accounts
    Part 370 currently provides covered institutions with the option of 
meeting the alternative recordkeeping requirements set forth in Sec.  
370.4(b)(2) rather than the general recordkeeping requirements set 
forth in Sec.  370.4(a) for certain types of trust deposit accounts. 
Specifically, formal revocable trust deposit accounts that are insured 
as described in 12 CFR 330.10 (``REV accounts,'' for which the 
corresponding right and capacity code is ``REV'' as set forth in 
Appendix A) and irrevocable trust deposit accounts that are insured as 
described in 12 CFR 330.13 (``IRR accounts,'' for which the 
corresponding right and capacity code is ``IRR'' as set forth in 
Appendix A) are eligible for alternative recordkeeping under Sec.  
370.4(b)(2). Covered institutions must meet the general recordkeeping 
requirements set forth in Sec.  370.4(a) with respect to irrevocable 
trust deposit accounts that are insured as described in 12 CFR 330.12 
(``DIT accounts,'' for which the corresponding right and capacity code 
is ``DIT'' as set forth in Appendix A). It is the FDIC's expectation 
that, where a covered institution is the trustee for an irrevocable 
trust, the covered institution will have the information needed to 
calculate the amount of deposit insurance coverage for such trust's 
deposit account(s) at any given time. This information would be, among 
other things, the identities of trust beneficiaries and their 
respective interests. The FDIC recognizes that the covered institution 
as trustee would need to be able to monitor for changes in facts that 
impact deposit insurance coverage afforded to the trust and update its 
deposit account records when such changes occur in order for the 
covered institution's IT system to accurately calculate deposit 
insurance coverage within the first 24 hours after failure should the 
covered institution be placed in receivership.
    Representatives of covered institutions have explained to FDIC 
staff that updating deposit account records continuously could be 
overly burdensome or impracticable in some cases, and that there may be 
a significant lag between the time at which a change occurs, the time 
at which the covered institution as trustee becomes aware of the 
change, and the time at which the covered institution can update its 
deposit account records accordingly for purposes of part 370. The FDIC 
acknowledges that covered institutions face challenges in meeting the 
general recordkeeping requirements for these accounts but seeks to gain 
a better understanding of the impediments a covered institution faces 
in its efforts to update deposit account records upon changes in facts 
affecting deposit insurance coverage for DIT accounts. The FDIC also 
seeks to gain a better understanding of the adverse impact of delay in 
the ability to access and use deposits in a DIT account while the 
deposit insurance determination is pending. The FDIC is proposing to 
revise Sec.  370.4(b)(2) to include DIT accounts as another category of 
deposit accounts for which a covered institution may meet the 
alternative recordkeeping requirements rather than the general 
recordkeeping requirements should it find that such change is 
justified. For DIT accounts specifically, a covered institution would 
not need to maintain the unique identifier of the grantor(s), however, 
because DIT accounts are insured without regard to the rule for 
aggregation by grantor applicable in the IRR and REV categories for 
deposit insurance. To conform with this proposed amendment, Sec.  370.4 
would be revised by removing paragraph (a)(1)(iv), which currently 
requires a covered institution to maintain in its deposit account 
records for each DIT account the unique identifier for the trust's 
grantor and each trust beneficiary.
    The FDIC is also proposing a technical amendment to Sec.  
370.4(b)(2)(iii) to replace the requirement that a covered institution 
maintain in its deposit account records for certain trust deposit 
accounts the corresponding ``pending reason'' code from data field 2 of 
the pending file format set forth in Appendix B. Instead, Sec.  
370.4(b)(2)(iii) of the proposed rule would require covered 
institutions to maintain in the respective deposit account records the 
corresponding ``right and capacity code'' from data field 4 of the 
pending file format set forth in Appendix B. Covered institutions 
should be able to identify which of the right and capacity codes apply 
for deposit accounts that fall into this recordkeeping category. This 
determination can be made based on the titling of the deposit account 
or documentation maintained in a covered institution's deposit account 
records concerning the relationship between the covered institution and 
the named account holder.
    Questions: The FDIC invites comment on its proposal to revise Sec.  
370.4(b)(2) to include irrevocable trust deposit accounts that are 
insured as described in 12 CFR 330.12. What are the advantages or 
disadvantages of allowing a covered institution to maintain in its 
deposit account records less than all of the information needed to 
calculate deposit insurance coverage for such deposit accounts? What 
impediments does a covered institution face in its efforts to update 
deposit account records upon a change in facts and circumstances 
affecting deposit insurance coverage for DIT accounts? Will delayed 
access to deposits in DIT accounts present hardship to the respective 
trusts while the deposit insurance determination is pending? What 
alternatives, if any, should the FDIC consider?
    Under Sec.  370.4(b)(2)(ii), a covered institution is required to 
maintain the unique identifier of the grantor of a trust in its deposit 
account records for certain trust accounts. Covered institutions have 
represented that the identity of a trust's grantor is not typically 
maintained in an IDI's records. The FDIC invites comment on this 
requirement. What types of trust accounts is this the case for? Would 
it be difficult for covered institutions to obtain the grantor's 
identity in order to assign a unique identifier if identifying 
information is not maintained in the deposit account records for 
certain types of trust accounts?
2. Recordkeeping Requirements for Deposits Resulting From Credit 
Balances on an Account for Debt Owed to the Covered Institution
    During the FDIC's outreach calls and meetings with many covered 
institutions, the covered institutions described many functional and 
operational impediments to their ability to comply with the various 
recordkeeping requirements of Sec.  370.4. Generally, when the covered 
institution maintains the requisite depositor information in its own 
records to perform the deposit insurance calculation, the FDIC would 
expect the covered institution to comply with Sec.  370.4(a) of the 
regulation. Other types of accounts, like agent or fiduciary accounts 
(based on pass-through deposit insurance principles), certain trust 
accounts, and official items, have already been addressed in Sec. Sec.  
370.4(b) and (c). However, another recordkeeping problem raised by the 
covered institutions occurs when a borrower of a covered institution 
has a credit balance on a debt owed to a covered institution. For 
example, if a

[[Page 14822]]

bank customer/credit cardholder has a positive balance on a credit card 
account after returning merchandise and receiving a credit to the 
account, then that credit amount would be recognized as the customer's 
``deposit'' at the covered institution. In accordance with Sec.  
3(l)(3) of the FDI Act, such an overpayment on a debt owed to a covered 
institution would constitute a deposit.\16\ The FDIC must include (and 
aggregate, if necessary) such a deposit in order to perform a deposit 
insurance determination in the event of a covered institution's 
failure.
---------------------------------------------------------------------------

    \16\ 12 U.S.C. 1813(l)(3).
---------------------------------------------------------------------------

    Upon initial review, it would appear that a covered institution 
should be able to comply with the requirements of Sec.  370.4(a) 
because the covered institution will presumably have in its IT 
system(s) all of the relevant information regarding the depositor 
(created by making an overpayment on his or her outstanding debt with 
the covered institution). The problem, as described to the FDIC by 
various covered institutions, is that the requisite information 
regarding the ownership of the deposit, the amount of the deposit as 
well as other relevant information such as a unique identifier, would 
be maintained on a covered institution's loan platform rather than on 
any of its deposit systems. Moreover, the deposit platforms are not 
necessarily linked or integrated in any way with a covered 
institution's various loan platforms. The covered institutions have 
informed the FDIC that it would be unduly expensive for them to 
integrate or link the various loan platforms with their deposit systems 
based on their assertions that not many of the credit balances are very 
high; i.e., much lower than the SMDIA. Therefore, they question the 
need to incur the cost to integrate the loan platforms with the deposit 
systems.
    The FDIC understands that for an individual loan account, the 
amount of a customer's credit balance may not seem significant. 
Nevertheless, if the FDIC were obligated to conduct a deposit insurance 
determination upon the failure of a covered institution, part of that 
process would require the FDIC to include and aggregate the credit 
balance/deposit with any other deposit accounts owned by that 
particular depositor held in the same right and capacity. For example, 
a depositor could have a deposit of $250,000 in the covered institution 
in the individual right and capacity as well as a credit balance of 
several thousand dollars. If the FDIC is unable to identify the credit 
balance and aggregate that amount with the other deposit funds held in 
the covered institution in the same right and capacity, then the FDIC 
will pay out uninsured deposits to that individual depositor. While 
several thousand dollars might not seem to be significant with respect 
to one depositor, the FDIC would risk overpaying a number of depositors 
if it were not possible for the FDIC to restrict access to the credit 
balances on all affected accounts until a full deposit insurance 
determination could be completed. In the aggregate, the amount of 
overpayment could be significant. Additionally, the covered 
institutions have asserted that this operational issue applies to all 
of their various loan platforms, including credit cards, home equity 
lines of credit (HELOCs), automobile loans, and mortgage loans. Again, 
in the aggregate, overpayments on a number of accounts across many 
different loan platforms could result in a significant pay out of 
uninsured funds to the failed covered institution's depositors. Such a 
result would be in contravention of the FDIC's statutory mandate to 
make payment of ``insured deposits . . . as soon as possible.'' \17\
---------------------------------------------------------------------------

    \17\ 12 U.S.C. 1821(f)(1) (Emphasis added).
---------------------------------------------------------------------------

    In order to address the covered institutions' concerns, the FDIC is 
proposing to add a new paragraph (d) to Sec.  370.4. Covered 
institutions would not be required to comply with the recordkeeping 
requirements of Sec.  370.4(a) even though they maintain the depositor 
information necessary to perform a deposit insurance determination on 
their internal IT systems--just not their deposit platforms. In lieu of 
integrating their various loan platforms with their deposit systems, 
the covered institutions would be required to address the issue of 
credit balances existing on their loan platforms in another manner.
    Section 370.4(d)(1) would require that immediately upon a covered 
institution's failure, its IT system(s) must be capable of restricting 
access to (i) any credit balance reflected on a customer's account 
associated with a debt obligation to the covered institution or (ii) an 
equal amount in the customer's deposit account at the covered 
institution. The FDIC believes that it would be preferable for the 
covered institutions to be able to restrict access to the credit 
balances on the associated loan platform. Over the closing weekend, if 
access to the credit balance is not restricted, then the credit 
cardholder, for example, would be able to charge expenses to the credit 
card account which would, in effect, eliminate the credit balance. The 
elimination of the credit balance represents a payment of deposit 
insurance. If the credit cardholder's deposit account funds are also 
released ``as soon as possible,'' then the outflow of deposit insurance 
funds could result in a payment of uninsured funds to that depositor 
and credit cardholder.
    Many of the covered institutions have asserted that it is not 
possible to restrict access to the credit balances associated with 
their customers' loan accounts. The alternative approach would be for 
the covered institution's IT system to be able to restrict access to an 
amount equal to the credit balance on the customer's deposit account at 
the covered institution. This second option raises a concern that the 
requisite information from the covered institution's loan platform 
regarding the identity of the customer/depositor, the amount of the 
credit balance, and the appropriate right and capacity will not be 
available in time to restrict access to an equivalent amount in the 
corresponding deposit account. The FDIC's objective is to make funds in 
transactional accounts available to a failed covered institution's 
depositors by the next business day. If the funds in deposit accounts 
are released before the amount of the credit balance is restricted, 
then the FDIC would again be faced with the possibility that uninsured 
funds would be paid to the failed covered institution's depositors. 
Nevertheless, Sec.  370.4(d)(1)(ii) allows the covered institution to 
ensure that its IT system would be capable of restricting access to an 
amount equal to the overpayment in the customer's deposit account 
instead.
    In order to complete the deposit insurance determination, a covered 
institution must be able to extract the requisite information from the 
data on its loan platforms to create a file listing the credit balances 
on the loan accounts as well as the other data fields as set forth in 
the file included as Appendix C to this regulation. The file included 
as Appendix C to this part 370 is derived from the ``Broker Input File 
Requirements'' set forth in Section V of the FDIC's Deposit Broker's 
Processing Guide. Additionally, a field to identify the ownership right 
and capacity code has been included. The FDIC determined that it would 
be appropriate to include the file as part of the regulation because 
its use in this context is somewhat different than its customary use 
for third parties that have deposited funds on behalf of others and who 
maintain the records identifying the underlying beneficial owners. In 
the situation where the covered institution's loan customer has a 
credit balance

[[Page 14823]]

which is recognized as a deposit, the covered institution actually 
maintains the necessary information to enable its IT system to perform 
the deposit insurance calculation; the requisite data is housed, 
however, on a different loan platform. The FDIC would expect the 
covered institution's IT system, which must be compliant with Sec.  
370.3(b), to be able to accept and process the file as formatted in 
Appendix C. In contrast, while the FDIC suggests that deposit brokers 
and other account holders acting as agents or fiduciaries submit their 
depositors' information in the format set forth in the Deposit Broker's 
Processing Guide, a third party deposit broker or agent for a 
beneficial owner is not required to provide the deposit ownership 
information in that format. Most of these third party deposit brokers 
are not subject to the FDIC's supervision or regulation.
    Section 370.4(d)(2)(i) would require the covered institution to be 
able to generate a file in the format set forth in Appendix C within 24 
hours of failure for all credit balances related to open-end loans 
(revolving credit lines) such as credit card accounts and HELOCs. In 
other words, the 24-hour requirement would apply to any type of 
consumer loan account where the customer or borrower has the ability to 
draw on the credit line without the prior approval or intervention of 
the covered institution. This time frame would be necessary to ensure 
that the FDIC would have sufficient time, after the covered 
institution's failure, to identify the loan customers with credit 
balances, match them to their corresponding deposit accounts, and 
restrict access to an amount equal to the overpayment in the customer's 
deposit account before the next business day. As mentioned previously, 
it is always the FDIC's goal to make insured funds available to all 
depositors of a failed insured depository institution as soon as 
possible, ideally on the next business day after failure. Nevertheless, 
if this process does not work as intended, then the FDIC will be unable 
to make deposit insurance payments without the potential for 
overpayment.
    With respect to all other types of loan accounts with overpayments, 
Sec.  370.4(d)(2)(ii) would require the covered institution to be able 
to generate a file in the format set forth in Appendix C promptly after 
the covered institution's failure. For closed-end loan accounts, where 
the borrower has paid more than the balance owed or the outstanding 
principal balance, the credit balances would not be available or 
accessible to the customer without the covered institution's 
authorization or initiation of the payment. Examples of such loan 
accounts would include a final payment on a mortgage loan or auto loan 
which exceeds the payoff amount. Because the credit balance would not 
be readily available to the customer prior to the final deposit 
insurance calculation, from the FDIC's perspective, there would not be 
as much urgency to receive and process the file as provided in Appendix 
C.
    Questions: The FDIC requests comment on this proposal to allow 
recordkeeping for deposits reflected as credit balances on a debt 
account pursuant to a different procedure. Could covered institutions 
produce the file set forth in Appendix C to be used by the covered 
institution's IT system to calculate deposit insurance coverage within 
the first 24 hours after the covered institution's failure? Should this 
time frame apply to credit balances on both open-end and closed-end 
loan accounts? What are the approximate costs and IT challenges of 
developing the capabilities to restrict access to credit balances as 
reflected on the loan account platforms? Are there other examples of 
either closed-end or open-end loan products that should be explicitly 
recognized or mentioned?

G. Relief

1. Exception Requests Generally
    The FDIC is proposing to revise Sec.  370.8(b) to clarify the 
required elements of a covered institution's exception request. The 
FDIC also proposes to revise the Rule to expressly allow submission of 
a request by more than one covered institution for exception from one 
or more of the Rule's requirements. While part 370 currently does not 
preclude this, the FDIC is proposing this revision to expressly permit 
a joint submission because some scenarios under which a grant of 
exception would be appropriate would be common to multiple covered 
institutions. Submission of a joint exception request would allow 
covered institutions to better manage resources, and it would allow the 
FDIC to streamline exception determinations. Each covered institution 
would still be required to submit the institution-specific data 
required to substantiate the request as required under current Sec.  
370.8(b).
    Questions: The FDIC invites comment on its proposal to revise Sec.  
370.8(b)(1). Would this proposed clarification reduce burden for 
covered institutions generally? Would covered institutions coordinate 
to submit joint exception requests?
2. Publication of FDIC's Response to Exception Requests
    The FDIC also proposes to add a new paragraph (b)(2) to Sec.  370.8 
to provide that the FDIC will publish in the Federal Register a notice 
of its response to each exception request. This change would facilitate 
transparency and enable covered institutions to better understand the 
types of requests that the FDIC would grant or deny and the reasons 
therefor. The FDIC's notice of exception would not disclose the 
identity of the requesting covered institution(s), nor any confidential 
or material nonpublic information.
    Questions: The FDIC invites comment on its proposal to revise Sec.  
370.8 by adding a new paragraph (b)(2). Should the FDIC publish notice 
of all exceptions requested? Should the FDIC publish only exceptions 
that are granted and not those that are denied? Is there a reason that 
the FDIC should not publish notice of its response to exceptions 
requested by covered institutions?
3. Certain Exceptions Deemed Granted
    The FDIC is proposing a new paragraph (b)(3) to Sec.  370.8 that 
would allow a covered institution to notify the FDIC that, based on 
substantially similar facts and the same circumstances as presented in 
the notice published by the FDIC pursuant to Sec.  370.8(b)(2) in the 
proposed rule, the covered institution elects to use the same 
exception. Such exception would be considered granted subject to the 
same conditions stated in the FDIC's published notice unless the FDIC 
informs the covered institution to the contrary within 120 days after 
receipt of the covered institution's notification letter. Under this 
proposed amendment, the covered institution's notification letter would 
need to include the information required under Sec.  370.8(b)(1), cite 
the applicable notice of exception published pursuant to Sec.  
370.8(b)(2), and demonstrate how the covered institution's exception is 
based upon substantially similar facts and the same circumstances as 
described in the applicable notice published by the FDIC. The FDIC 
believes that Sec.  370.8(b)(3) of the proposed rule would provide 
covered institutions with more flexibility and clarity regarding 
exceptions to part 370's requirements. It would also minimize time 
spent by FDIC and covered institutions alike on processing this type of 
exception request.
    Questions: The FDIC invites comment on its proposal to revise Sec.  
370.8 to add this new paragraph (b)(3). Is ``substantially similar 
facts and the

[[Page 14824]]

same circumstances'' a reasonable basis for deeming an exception 
granted? Is the 120-day time frame for FDIC to notify a covered 
institution to the contrary sufficient? Is this time frame too long or 
too short? What alternatives, if any, should the FDIC consider?

H. Technical Modifications

1. Technical Amendment To Revise Sec.  370.1 ``Purpose and Scope''
    The FDIC is proposing a technical amendment to Sec.  370.1 to 
correct a cross reference. The applicable paragraph in which the term 
``covered institution'' is defined is Sec.  370.2(c), not Sec.  
370.2(a).
2. Technical Amendment To Remove Definition of ``Brokered Deposit'' 
From Sec.  370.2
    The FDIC is proposing a technical amendment to Sec.  370.2(b) to 
remove the definition of ``brokered deposit'' because that term is not 
used in the regulatory text of part 370. Paragraph (b) of Sec.  370.2 
references 12 CFR 337.6(a)(2), the source for the substantive 
definition of the term. This paragraph would be reserved for future 
use, if needed.
3. Technical Amendment To Revise Recordkeeping Requirements for 
Official Items
    Under Sec.  370.4(c), a covered institution is required to maintain 
in its deposit account records the information needed for its IT system 
to calculate deposit insurance coverage with respect to payment 
instruments drawn on an account of the covered institution such as a 
cashier's check, teller's check, certified check, personal money order, 
or foreign draft (commonly referred to as ``official items''). Such 
payment instruments represent deposit liabilities of the covered 
institution to the respective payees. To illustrate the types of 
payment instruments that could be used to draw on the account, this 
paragraph contains a non-exhaustive list of examples, concluding with 
``or any similar payment instrument that the FDIC identifies in 
guidance issued to covered institutions in connection with this part.'' 
The FDIC recognizes that the inclusion of this language would 
incorporate guidance, which does not carry the force and effect of law, 
into a regulatory requirement and proposes that this reference to 
future guidance be removed. The FDIC seeks to minimize the confusion 
between rules duly issued through notice and comment rulemaking and 
agency guidance. Therefore, the FDIC proposes that this reference to 
future guidance be removed.
4. Technical Amendment To Revise IT System Requirements
    The FDIC is proposing to amend Sec.  370.3(a) by adding a reference 
to the proposed new paragraph (d) in Sec.  370.4, which addresses 
recordkeeping treatment for deposits resulting from credit balances on 
an account for debt owed to a covered institution. For such deposits, a 
covered institution's IT system must be able to meet the requirements 
set forth in Sec.  370.3(b), as modified by the proposed new paragraph 
(d) in Sec.  370.4, after the covered institution's IT system generates 
an input file containing the data elements needed to calculate deposit 
insurance coverage factoring in those credit balances. Covered 
institutions that implement this mechanism would develop the capability 
for their IT systems to produce the necessary data. The data would not 
be supplied by the account holder (in this situation the debtor listed 
on the account for debt owed to a covered institution), but by a 
covered institution's IT system itself using information maintained in 
its records for the respective debt account. For this reason, the FDIC 
proposes to strike the reference to information collected ``from the 
account holders'' in the last sentence of Sec.  370.3(a). Instead, the 
sentence would read ``. . . information collected after failure . . .'' 
because additional information needed to calculate deposit insurance 
for accounts for which the general recordkeeping requirements set forth 
in 370.4(a) are not met may be supplied by the respective account 
holders, but may also be supplied by an additional data production 
process developed by a covered institution.
5. Technical Amendment To Revise General Recordkeeping Requirements
    The FDIC is proposing to add a new paragraph (d) in Sec.  370.4, 
which addresses recordkeeping treatment for deposits resulting from 
credit balances on an account for debt owed to a covered institution. 
As a result, Sec.  370.4(a) would need to be amended to include a 
reference to that new paragraph. To the extent that a covered 
institution elects to meet the recordkeeping requirements set forth in 
the proposed new Sec.  370.4(d), it would not need to meet the general 
recordkeeping requirements set forth in Sec.  370.4(a).
6. Technical Amendment To Revise 370.8(d) Regarding Release From 12 CFR 
360.9
    The FDIC is proposing a technical amendment to Sec.  370.8(d) to 
clarify that a covered institution that is released from Sec.  360.9 
under Sec.  370.8(d) remains released from Sec.  360.9 only for so long 
as it is a covered institution as defined by part 370. If a part 370 
covered institution released from Sec.  360.9 ceases to be a part 370 
covered institution, and would otherwise be a 360.9 institution, then 
it must comply with the requirements of Sec.  360.9 (unless it has 
independent basis for exemption from Sec.  360.9).
7. Technical Amendment To Revise Sec.  370.10(b) ``FDIC Testing''
    The FDIC is proposing a technical amendment to Sec.  370.10(b)(1) 
to clarify that material changes to a covered institution's IT system, 
deposit-taking operations, or financial condition occurring after the 
covered institution's compliance date could result in more frequent 
testing. The FDIC does not expect to conduct compulsory testing on the 
basis of changes to a covered institution's IT system, deposit-taking 
operations, or financial condition before a covered institution's 
compliance date. A covered institution's compliance date may be 
accelerated, however, on the conditions specified in Sec.  370.7 
regarding accelerated implementation.
8. Technical Amendment To Revise Sec.  370.7(a)(2)
    In 2018, 12 CFR parts 324 and 325 were revised to consolidate the 
prompt corrective action capital category definitions into 12 CFR part 
324. The FDIC is proposing a technical amendment to Sec.  370.7(a)(2) 
to revise the cross reference by 12 CFR part 324 instead of 12 CFR part 
325.
9. Technical Amendment To Revise ``Appendix B to Part 370--Output Files 
Structure''
    Appendix B to part 370 provides basic templates for four 
information files that a covered institution's IT system must be able 
to produce during its process for calculating deposit insurance. These 
files must be retained afterward as a record of the calculation. Some 
of the data that would be included in these files is essential for 
deposit insurance calculation, while some is non-essential but 
nonetheless useful. The FDIC is proposing to revise these data file 
templates to indicate what data is non-essential and therefore may be 
omitted while the covered institution does not have the information 
needed to populate the field.

[[Page 14825]]

    Questions: The FDIC invites comment on its proposal to revise these 
data file templates to indicate which data fields must be populated by 
the covered institution's IT system and which data fields should be 
populated if the covered institution has such data. Has the FDIC 
identified any fields for which a ``null value'' is not permissible, 
but for which a covered institution does not maintain the relevant 
data? If so, why doesn't the covered institution maintain that data?

IV. Expected Effects

    The proposed rule is likely to benefit covered institutions by 
reducing compliance burdens associated with part 370. Additionally, the 
proposed rule is likely to benefit financial market participants by 
helping to support prompt determination of deposit insurance in the 
event a covered institution fails. The Rule requires all IDIs with two 
million or more deposit accounts to have complete deposit insurance 
information, by ownership right and capacity, except as otherwise 
permitted. As of December 31, 2018, there were 36 covered institutions. 
The compliance date for these covered institutions is April 1, 2020. 
Although the compliance date of April 1, 2020, has not yet been 
reached, we consider the effects of the proposed rule relative to a 
baseline that includes the cost to covered institutions estimated for 
compliance with the Rule. The FDIC estimates that part 370 will result 
in compliance costs of $362.4 million for 36 FDIC-insured 
institutions.\18\ The proposed amendments will likely mitigate some of 
those costs.
---------------------------------------------------------------------------

    \18\ The 2016 Final Rule estimated total costs of $478 million, 
with $386 million of those costs to 38 covered financial 
institutions and the remainder borne by the FDIC and account 
holders. See 12 CFR part 370 RIN 3064-AE33, Recordkeeping for Timely 
Deposit Insurance Determination, Federal Register, Vol. 81, No. 233, 
Monday, December 5, 2016 for further discussion of the cost 
estimation model. For this proposed rule, the FDIC updated the list 
of covered institutions to 36 as of the effective date of the 2016 
Final Rule. The FDIC also updated the data in the model to December 
31, 2018.
---------------------------------------------------------------------------

A. Benefits

    As discussed earlier, the proposed rule would offer covered 
institutions that became covered institutions on the effective date the 
option to extend their April 1, 2020, compliance date by up to one 
year. The option of extending the implementation period would grant 
covered institutions that elect to extend their compliance date greater 
flexibility to comply with part 370 in a manner that would be less 
burdensome. Feedback the FDIC has received from covered institutions 
suggests that they would benefit from this proposal. It is difficult to 
quantify how much covered institutions would benefit from this 
compliance date extension option because the FDIC does not know how 
many institutions will elect to use it or the progress they may have 
already made towards compliance.
    Similarly, streamlining the exception request process is expected 
to reduce the costs to covered institutions for obtaining exceptions 
from the Rule's requirements. The FDIC does not know how many covered 
institutions will request such relief, so the benefits of this portion 
of the proposed rule are difficult to quantify.
    As discussed previously, the part 370 does not provide for an 
adjustment period for a covered institution to comply with part 370 
after a merger has occurred. The proposed rule amends part 370 to give 
covered institutions involved in a merger a one-year grace period for 
compliance violations. This additional relief for merger activity would 
grant covered institutions greater flexibility to comply with part 370 
in a manner that is less burdensome, thereby potentially reducing 
compliance costs. It is difficult to estimate the benefits this 
proposed amendment would provide covered institutions because it is 
difficult to estimate the volume of future merger activity or the 
extent to which additional efforts would be needed to integrate deposit 
account recordkeeping or IT system capabilities.
    The proposed amendments address recordkeeping concerns for several 
types of accounts and would reduce the associated recordkeeping 
burdens. These include accounts where electronic evidence of an account 
relationship exists, certain trust accounts, certain accounts with 
transactional features that are eligible for pass-through deposit 
insurance, mortgage servicing accounts, and others. These proposed 
amendments would likely benefit covered institutions by reducing their 
total compliance costs without unduly increasing the risk of untimely 
deposit insurance payments; however, it is difficult to quantify these 
benefits because the FDIC does not currently have access to data on the 
number of such accounts held by covered institutions.
    The proposed rule also improves the clarity of certain part 370 
provisions and makes corrections. This is expected to benefit covered 
institutions by reducing uncertainty regarding compliance with part 
370. The benefits to covered institutions of these proposed amendments 
is difficult to quantify because the FDIC does not have access to data 
that would shed light on the extent to which compliance costs by 
covered institutions were increased as a result of uncertainty.
    The reductions in recordkeeping requirements associated with the 
proposed rule would likely reduce the current estimated compliance 
burdens associated with part 370. It is difficult to estimate the 
benefits each covered institution is likely to incur as a result of the 
proposed rule because the estimation depends upon the progress each 
covered institution has already made toward compliance, and the 
likelihood that a covered institution would avail itself of the 
benefits offered by the proposed amendments, among other things. 
Additionally, it is difficult to estimate the benefits each covered 
institution would be likely to enjoy as a result of the proposed rule 
because the FDIC does not currently have access to data on the number 
of accounts held by covered institutions for which these benefits would 
accrue.
    For all the reasons described in this section, quantitative 
estimates of the reduction in recordkeeping burden under the proposed 
rule are subject to uncertainty. That being said, an analysis of 
deposit account information at covered institutions suggested that the 
proposed rule could affect an estimated one to 20 percent of accounts 
on average for covered institutions.\19\ The realized effect would vary 
depending upon the types of accounts that a covered institution holds. 
The more accounts a covered institution has, the greater the reduction 
in recordkeeping requirements these proposed amendments would likely 
provide. To conservatively estimate the expected benefits of the 
proposed rule, the FDIC assumed that the reduced recordkeeping 
requirements would affect between one and 20 percent of all deposit 
accounts at covered institutions. Therefore, the proposed rule is 
estimated to reduce the compliance burden of part 370 to between 41,738 
and 836,028 hours for all covered institutions, which equates to an 
estimated reduction in compliance costs of between $2.0 million and 
$41.8 million.
---------------------------------------------------------------------------

    \19\ The FDIC analyzed the dollar volume of retirement, mortgage 
servicing, and trust accounts as reported on the December 31, 2018, 
Call Report for covered institutions. Additionally, the FDIC 
analyzed pre-paid card account data from The Nilson Report's, Top 50 
U.S. Prepaid Card Issuers July 2015, Issue 1067 to determine an 
estimated range of deposit accounts at covered institutions that 
might be affected by the proposed rule.

---------------------------------------------------------------------------

[[Page 14826]]

B. Costs

    The proposed rule is unlikely to impose any significant costs to 
covered institutions. The proposed rule would offer covered 
institutions that became covered institutions on the effective date the 
option to extend their April 1, 2020, compliance date by up to one 
year. Expanding the time to comply with part 370 would increase the 
risk that a covered institution might fail without having fully 
implemented the capabilities that part 370 calls for. An inability to 
make timely deposit insurance determinations for deposit accounts at a 
covered institution could increase the potential for disruptions to 
check clearing processes, direct debit arrangements, or other payment 
system functions. However, the FDIC does not believe that the 
incremental costs or risks of extending the initial compliance date for 
up to one additional year are large. Also, the FDIC presumes that 
covered institutions have made some progress toward compliance in the 
past two to three years, likely mitigating the issues that would be 
associated with recordkeeping deficiencies in the event that a covered 
institution were to fail. Finally, to the extent that covered 
institutions have made some progress toward compliance with part 370, 
the proposed rule may pose some small costs associated with requisite 
changes to part 370 compliance efforts. However, the FDIC believes that 
these costs are likely to be small. The FDIC estimates that covered 
institutions requesting exception from certain part 370 requirements 
will expend 60 labor hours doing so on average.
    The FDIC invites comment on the information presented in this 
section. Are there any other costs or benefits the FDIC should 
consider?

V. Alternatives Considered

    The FDIC considered several alternatives while developing this 
proposal. The FDIC first considered leaving part 370 unchanged. The 
FDIC rejected this alternative because the proposed rule would benefit 
covered institutions by reducing compliance burdens or clarifying some 
of the requirements while still supporting a prompt deposit insurance 
determination process in the event of failure. The FDIC considered 
providing a one-year extension to all covered institutions that were 
covered institutions as of the effective date of part 370, but opted 
instead for the elective extension as the burden of obtaining the 
extension is minimal and is outweighed by the value of earlier 
compliance and the information regarding compliance status to be gained 
by the proposed approach. The FDIC considered limiting the availability 
of the alternative recordkeeping requirements for deposits resulting 
from credit balances on accounts for debt owed to the covered 
institution to overpayments on credit card accounts, but rejected this 
approach as the same difficulties that justified this alternative could 
arise in connection with other debts to the covered institution. The 
FDIC considered not requiring covered institutions to deliver 
notification letters to the FDIC prior to relying on exceptions granted 
to other covered institutions, but rejected this approach due to the 
FDIC's need to be aware of which covered institutions are relying on 
previously granted exceptions.
    The FDIC invites comment on these alternatives and any others not 
discussed in this section.

VI. Regulatory Analysis and Procedures

A. Paperwork Reduction Act

    Certain provisions of the proposed rule contain ``collection of 
information'' requirements within the meaning of the Paperwork 
Reduction Act (PRA) of 1995 (44 U.S.C. 3501-3521). In accordance with 
the requirements of the PRA, the agencies may not conduct or sponsor, 
and the respondent is not required to respond to, an information 
collection unless it displays a currently-valid Office of Management 
and Budget (OMB) control number. The information collection related to 
this proposed rule is entitled ``Recordkeeping for Timely Deposit 
Insurance Determination'' and has been cleared by OMB under Control 
Number 3064-0202. This information collection will be extended for 
three years, with revision. The information collection requirements 
contained in this proposed rule have been submitted by the FDIC to OMB 
for review and approval under section 3507(d) of the PRA (44 U.S.C. 
3507(d)) and section 1320.11 of the OMB's implementing regulations (5 
CFR 1320).
    Comments are invited on:
     Whether the collections of information are necessary for 
the proper performance of the Board's functions, including whether the 
information has practical utility;
     The accuracy or the estimate of the burden of the 
information collections, including the validity of the methodology and 
assumptions used;
     Ways to enhance the quality, utility, and clarity of the 
information to be collected;
     Ways to minimize the burden of the information collections 
on respondents, including through the use of automated collection 
techniques or other forms of information technology; and
     Estimates of capital or startup costs and costs of 
operation, maintenance, and purchase of services to provide 
information.
    All comments will become a matter of public record. Comments on 
aspects of this notice that may affect reporting, recordkeeping, or 
disclosure requirements and burden estimates should be sent to the 
addresses listed in the ADDRESSES section of this document. A copy of 
the comments may also be submitted to the OMB desk officer by mail to 
U.S. Office of Management and Budget, 725 17th Street NW, #10235, 
Washington, DC 20503; facsimile to (202) 395-6974; or email to 
[email protected], Attention, FDIC Desk Officer.
Proposed Information Collection
    Title of Information Collection: Recordkeeping for Timely Deposit 
Insurance Determination.
    Frequency: On occasion.
    Affected Public: Insured depository institutions having two million 
or more deposit accounts and their depositors.\20\
---------------------------------------------------------------------------

    \20\ Covered institutions will, as necessary, contact their 
depositors to obtain accurate and complete account information for 
deposit insurance determinations. For the purposes of this analysis, 
the FDIC assumes that depositors will voluntarily respond.
---------------------------------------------------------------------------

    Current Action: The proposed rule is estimated to reduce 
recordkeeping and reporting requirements by 418,026 hours or $20.9 
million dollars. The proposed rule would reduce compliance burdens for 
covered institutions associated with recordkeeping and reporting in the 
following ways:
     Removing the certification requirement covered 
institutions must make with respect to deposit accounts with 
transactional features that would be eligible for pass-through deposit 
insurance coverage;
     Enabling covered institutions to maintain deposit account 
records for certain trust accounts in accordance with the alternative 
recordkeeping requirements set forth in Sec.  370.4(b)(2) rather than 
the general recordkeeping requirements set forth in Sec.  370.4(a);
     Offering a different recordkeeping/reporting method for 
deposits created as a result of credit balances on accounts for debt 
owed to a covered institution;
     Enabling covered institutions to file joint requests for 
exception pursuant to Sec.  370.8(b); and
     Deeming certain exceptions granted if based on 
substantially similar facts and the same circumstances as a request 
previously granted by the FDIC.

[[Page 14827]]

    An analysis of deposit account information at covered institutions 
suggested that the proposed rule could affect an estimated one to 20 
percent of accounts on average, for covered institutions.\21\ The 
realized effect would vary depending upon the types of accounts that a 
covered institution offers. The more deposit accounts a covered 
institution has, the greater the reduction in recordkeeping 
requirements these proposed amendments would provide. To conservatively 
estimate the expected benefits of the proposed rule, the FDIC assumed 
that between one and 20 percent of all deposit accounts at covered 
institutions would be affected.
---------------------------------------------------------------------------

    \21\ The FDIC analyzed the dollar volume of retirement, mortgage 
servicing, and trust accounts as reported on the December 31, 2018, 
Call Reports for covered institutions.
---------------------------------------------------------------------------

    For the purposes of the Paperwork Reduction Act, the FDIC estimates 
that approximately 10 percent of non-retirement accounts consist of the 
type of accounts for which the FDIC has granted relief. The number of 
accounts affects only one of eight components of the burden model for 
the final rule for part 370 adopted in 2016 (the 2016 Final Rule): 
Legacy Data Clean-up. This component consists of two portions: (1) 
Automated clean-up, and (2) manual clean-up. The number of accounts 
affects only the manual portion associated with correcting bank 
records, and thus the proposed rule would affect only that estimate.
    Using this adjusted burden as a baseline for the burden reduction 
of the proposed rule, we estimate that the proposed rule would reduce 
the implementation burden by 418,026 hours. This includes 418,058 of 
burden reduction but adds 32 hours of additional burden for requests 
for extensions and exemptions under the proposed rule. The proposed 
rule would not change the annual ongoing burden.
    For the purpose of the 2016 Final Rule, the FDIC estimated that 
manual data clean-up would involve a 60 percent ratio of internal to 
external labor, and that this labor would cost $65 per hour and $85 per 
hour, respectively. The FDIC assumed that 5 percent of deposit accounts 
had erroneous account information and that manual labor would correct 
10 accounts per hour of effort. The FDIC also assumed that for every 
hour of manual labor used by covered institutions, depositors would 
also exert one hour toward correcting account information at a national 
average wage rate of $27 per hour. From this, the FDIC estimated a 
total implementation cost of manual data clean-up of $207.4 million.
    As with the burden hours, the FDIC adjusted the original burden 
model to account for updated data and included IDIs that were actually 
covered by the Rule as a new baseline. After this adjustment, the FDIC 
estimates that the cost of manual data clean-up fell to $188.1 million, 
a decrease of $20.9 million because of the proposed rule.
Methodology
    In estimating the costs of part 370, the FDIC engaged the services 
of an independent consulting firm. Working with the FDIC, the 
consultant used its extensive knowledge and experience with IT systems 
at financial institutions to develop a model to provide cost estimates 
for the following activities:

 Implementing the deposit insurance calculation
 Legacy data clean-up
 Data extraction
 Data aggregation
 Data standardization
 Data quality control and compliance
 Data reporting
 Ongoing operations

    Cost estimates for these activities were derived from a projection 
of the types of workers needed for each task, an estimate of the amount 
of labor hours required, an estimate of the industry average labor cost 
(including benefits) for each worker needed, and an estimate of worker 
productivity. The analysis assumed that manual data clean-up would be 
needed for 5 percent of deposit accounts, 10 accounts per hour would be 
resolved, and internal labor would be used for 60 percent of the clean-
up. This analysis also projected higher costs for IDIs based on the 
following factors:

 Higher number of deposit accounts
 Higher number of distinct core servicing platforms
 Higher number of depository legal entities or separate 
organizational units
 Broader geographic dispersal of accounts and customers
 Use of sweep accounts
 Greater degree of complexity in business lines, accounts, and 
operations.

    Approximately half of part 370's estimated total costs are 
attributable to legacy data clean-up. These legacy data clean-up cost 
estimates are sensitive to both the number of deposit accounts and the 
number of deposit IT systems. More than 90 percent of the legacy data 
clean-up costs are associated with manually collecting account 
information from customers and entering it into the covered 
institutions' IT systems. Data aggregation, which is sensitive to the 
number of deposit IT systems, makes up about 13 percent of the Rule's 
estimated costs.
    The 2016 Final Rule estimated total costs of $478 million, with 
$386 million of those costs to 38 covered financial institutions and 
the remainder borne by the FDIC and account holders.\22\ For this 
proposed rule, the FDIC updated the list of covered institutions to 36 
as of the effective date of the 2016 Final Rule and the types of 
accounts covered. The FDIC also updated the data in the model to 
December 31, 2018.
---------------------------------------------------------------------------

    \22\ See 81 FR 87734 (December 5, 2016) for further discussion 
of the cost estimation model.
    \23\ Implementation costs and hours are spread over a three-year 
period.
    \24\ None of the respondents required to comply with the Rule 
are small entities as defined by the Small Business Administration 
(i.e., entities with less than $550 million in total assets).
    \25\ Weighted average rounded to the nearest hour. For PRA 
purposes, covered institutions are presented in roughly equal-sized 
low, medium and high complexity tranches ranked by their PRA 
implementation hours.

----------------------------------------------------------------------------------------------------------------
                                                                                     Estimated
                                                     Number of       Estimated    average  hours     Estimated
                                                    respondents       annual       per  response   total annual
                                                       \24\          frequency         \25\        burden hours
----------------------------------------------------------------------------------------------------------------
                                           Implementation Burden \23\
----------------------------------------------------------------------------------------------------------------
2016 Final Rule:
    Lowest Complexity Institutions..............              12               1          31,054         372,648
    Middle Complexity Institutions..............              13               1          46,342         602,446
    Highest Complexity Institutions.............              13               1         325,494       4,231,422
                                                 ---------------------------------------------------------------

[[Page 14828]]

 
        2016 Final Rule Total...................              38  ..............         137,014       5,206,516
----------------------------------------------------------------------------------------------------------------
Updated Data and Coverage: \26\
    Lowest Complexity Institutions..............              12               1          30,304         363,648
    Middle Complexity Institutions..............              12               1          58,113         697,356
    Highest Complexity Institutions.............              12               1         355,132       4,261,584
                                                 ---------------------------------------------------------------
        Updated Data and Coverage Total.........              36               1         147,850       5,322,588
                                                 ---------------------------------------------------------------
            Change from Updated Data............              -2  ..............  ..............         116,072
----------------------------------------------------------------------------------------------------------------
Proposed Rule less Exceptions:
    Lowest Complexity Institutions..............              12               1          28,304         339,648
    Middle Complexity Institutions..............              12               1          53,643         643,716
    Highest Complexity Institutions.............              12               1         326,764       3,921,168
                                                 ---------------------------------------------------------------
        Proposed Rule Total less Exceptions.....              36               1         136,237       4,904,532
----------------------------------------------------------------------------------------------------------------
Exceptions or Release: \27\
    Requests for Release of Requirements........               1               1               5               5
    Requests for Exception......................               1               1              60              60
                                                 ---------------------------------------------------------------
                                                  ..............  ..............  ..............       4,904,608
                                                 ---------------------------------------------------------------
        Change from Proposed Rule...............               0  ..............  ..............       (417,980)
----------------------------------------------------------------------------------------------------------------
                                                 Ongoing Burden
----------------------------------------------------------------------------------------------------------------
2016 Final Rule:
    Lowest Complexity Institutions..............              12               1           493.1           5,917
    Middle Complexity Institutions..............              13               1           516.7           6,718
    Highest Complexity Institutions.............              13               1           566.6           7,365
                                                 ---------------------------------------------------------------
        Proposed Rule Total.....................              38  ..............             526          20,000
----------------------------------------------------------------------------------------------------------------
Updated Data and Coverage:
    Lowest Complexity Institutions..............              12               1             487           5,844
    Middle Complexity Institutions..............              12               1             488           5,856
    Highest Complexity Institutions.............              12               1             558           6,696
                                                 ---------------------------------------------------------------
        Updated Data and Coverage Total.........              36  ..............             511          18,396
                                                 ---------------------------------------------------------------
            Change..............................              -2  ..............  ..............         (1,604)
----------------------------------------------------------------------------------------------------------------
Proposed Rule:
    Lowest Complexity Institutions..............              12               1             487           5,844
    Middle Complexity Institutions..............              12               1             488           5,856
    Highest Complexity Institutions.............              12               1             558           6,696
                                                 ---------------------------------------------------------------
        Updated Data and Coverage Total.........              36  ..............             511          18,396
                                                 ---------------------------------------------------------------
            Change from Proposed Rule...........               0  ..............  ..............               0
----------------------------------------------------------------------------------------------------------------

    The implementation costs for all covered institutions are estimated 
to total $362.4 million and require approximately 4.9 million labor 
hours. This represents a decline of $20.9 million and 417,980 labor 
hours for covered institutions due to the proposed rule. The 
implementation costs cover (1) making the deposit insurance 
calculation, (2) legacy data cleanup, (3) data extraction, (4) data 
aggregation, (5) data standardization, (6) data quality control and 
compliance, and (7) data reporting.
---------------------------------------------------------------------------

    \26\ This section incorporates changes to the baseline estimate 
of Rule burden based on changes in the number of covered 
institutions as well as changes to the data inputs for the burden 
model. The 2016 Final Rule estimated 38 IDIs would be covered. As of 
April 1, 2017, the effective date of the Rule, only 32 IDIs were 
covered by the Rule. Four additional IDIs became covered by the Rule 
in later quarters for a total of 36 covered institutions. This 
section uses bank-level data from December 31, 2018, updating the 
original burden estimate based on December 31, 2016, data.
    \27\ The proposed rule allows for covered institutions to 
request exceptions from Rule requirements or extensions of time to 
comply. The FDIC cannot estimate how many covered institutions will 
request such exceptions or extensions.
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    In terms of initial implementation, the estimated PRA burden for 
individual covered institutions after enacting the proposed rule would 
require between 9,056 and 275,112 burden hours, and these burden hours 
would be monetized to range from $757,851 to $31.0 million. This 
represents a decline for covered institutions of 675 to 29,007 burden 
hours and $33,787 to $532,873 million, respectively.
    The estimated ongoing burden on individual covered institutions for 
reporting, testing, maintenance, and other periodic items is estimated 
to

[[Page 14829]]

range between 481 and 666 labor hours, and these ongoing burden hours 
are monetized to be between $72,146 and $99,865 annually. The ongoing 
cost burdens remain the same.

                                     Estimated Monetized Costs by Component
----------------------------------------------------------------------------------------------------------------
                                          2016  final rule  Updated data and   Proposed  rule
                                         ------------------     coverage     ------------------  Change in cost
               Components                                  ------------------                     from proposed
                                           Component cost    Component cost    Component cost         rule
                                                 **                **                **
----------------------------------------------------------------------------------------------------------------
Legacy Data Cleanup.....................      $226,482,333      $227,449,750      $206,547,385     ($20,902,365)
Data Aggregation........................        64,015,373        62,707,618        62,707,618                 0
Data Standardization....................        36,573,894        35,811,558        35,811,558                 0
Data Extraction.........................        25,397,761        25,073,291        25,073,291                 0
Quality Control & Compliance............        18,403,006        18,024,478        18,024,478                 0
Insurance Calculation...................         9,500,400         8,584,000         8,548,000                 0
Reporting...............................         5,971,800         5,661,000         5,661,000                 0
----------------------------------------------------------------------------------------------------------------
Implementation Costs....................      $367,936,888      $383,311,695      $362,409,330     ($20,902,365)
----------------------------------------------------------------------------------------------------------------
Ongoing Operations......................         2,999,963         2,758,899         2,758,899                 0
----------------------------------------------------------------------------------------------------------------
    Total Cost..........................      $389,344,530      $386,070,594      $365,168,229                 0
----------------------------------------------------------------------------------------------------------------
        Change from Updating Data.......  ................      ($3,273,936)  ................  ................
----------------------------------------------------------------------------------------------------------------
            Change from Proposed Rule...  ................  ................     ($20,902,365)  ................
----------------------------------------------------------------------------------------------------------------

    The estimated annual burden for the ``Recordkeeping for Timely 
Deposit Insurance Determination'' information collection (OMB Control 
Number 3064-0202) if the proposed rule is adopted would be as follows:
    Implementation Burden: \28\
---------------------------------------------------------------------------

    \28\ Implementation costs and hours are spread over a three-year 
period.
---------------------------------------------------------------------------

    Estimated number of respondents: 36 covered institutions and their 
depositors.
    Estimated time per response: \29\ 136,237 hours (average).
---------------------------------------------------------------------------

    \29\ For PRA purposes, covered institutions are presented in 
roughly equal-sized low, medium and high complexity tranches ranked 
by their PRA implementation hours.
---------------------------------------------------------------------------

    Low complexity: 11,946-41,406 hours.
    Medium complexity: 41,947-74,980 hours.
    High complexity: 75,404-762,185 hours.
    Estimated total implementation burden: 4.9 million hours.
    Ongoing Burden:
    Estimated number of respondents: 36 covered institutions and their 
depositors.
    Estimated time per response: 511 hours (average) per year.
    Low complexity: 433-530 hours.
    Medium complexity: 434-530 hours.
    High complexity: 435-661 hours.
    Estimated total ongoing annual burden: 18,396 hours per year.
    Description of Collection: Part 370 requires a covered institution 
to (1) maintain complete and accurate data on each depositor's 
ownership interest by right and capacity for all of the covered 
institution's deposit accounts, except as provided, and (2) configure 
its IT system to be capable of calculating the insured and uninsured 
amount in each deposit account by ownership right and capacity, which 
would be used by the FDIC to make deposit insurance determinations in 
the event of the covered institution's failure.
    These requirements also must be supported by policies and 
procedures and will involve ongoing burden for testing, reporting to 
the FDIC, and general maintenance of recordkeeping and IT systems' 
functionality. Estimates of both initial implementation and ongoing 
burden are provided.
    Compliance with part 370 would involve certain reporting 
requirements:
     Not later than ten business days after the effective date 
of the final rule or after becoming a covered institution, a covered 
institution shall designate a point of contact responsible for 
implementing the requirements of this rulemaking.
     Covered institutions would be required to certify annually 
that their IT systems can calculate deposit insurance coverage 
accurately and completely within the 24 hour time frame set forth in 
the final rule. If a covered institution experiences a significant 
change in its deposit taking operations, it may be required to 
demonstrate more frequently than annually that its IT system can 
calculate deposit insurance coverage accurately and completely.
     In connection with the certification, covered institutions 
shall complete a deposit insurance coverage summary report.
     Covered institutions may seek relief from any specific 
aspect of the final rule's requirements if circumstances exist that 
would make it impracticable or overly burdensome to meet those 
requirements. When doing so, they must demonstrate the need for 
exception, describe the impact of an exception on the ability to 
quickly and accurately calculate deposit insurance for the related 
deposit accounts, and state the number of, and the dollar value of 
deposits in, the related deposit accounts.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq., 
generally requires an agency, in connection with a proposed rule, to 
prepare and make available an initial regulatory flexibility analysis 
that describes the impact of a proposed rule on small entities.\30\ 
However, a regulatory flexibility analysis is not required if the 
agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities. The Small Business 
Administration (SBA) has defined ``small entities'' to include banking 
organizations with total assets of less than or equal to $550 million 
who are independently owned and operated or owned by a holding

[[Page 14830]]

company with less than $550 million in total assets.\31\
---------------------------------------------------------------------------

    \30\ 5 U.S.C. 601 et seq.
    \31\ The SBA defines a small banking organization as having $550 
million or less in assets, where ``a financial institution's assets 
are determined by averaging the assets reported on its four 
quarterly financial statements for the preceding year.'' See 13 CFR 
121.201 (as amended, effective December 2, 2014). ``SBA counts the 
receipts, employees, or other measure of size of the concern whose 
size is at issue and all of its domestic and foreign affiliates.'' 
See 13 CFR 121.103. Following these regulations, the FDIC uses a 
covered institution's affiliated and acquired assets, averaged over 
the preceding four quarters, to determine whether the covered 
institution is ``small'' for the purposes of RFA.
---------------------------------------------------------------------------

    The FDIC insures 5,486 institutions, of which 4,047 are considered 
small entities for the purposes of RFA.\32\
---------------------------------------------------------------------------

    \32\ Call Report data, September 30, 2018, the latest date for 
which bank holding company data is available.
---------------------------------------------------------------------------

    This proposed rule will affect all insured depository institutions 
that have two million or more deposit accounts. The FDIC does not 
currently insure any institutions with two million or more deposit 
accounts that have $550 million or less in total consolidated 
assets.\33\ Since this proposal does not affect any institutions that 
are defined as small entities for the purposes of the RFA, the FDIC 
certifies that the proposed rule will not have a significant economic 
impact on a substantial number of small entities.
---------------------------------------------------------------------------

    \33\ FDIC Call Report data, December 31, 2018.
---------------------------------------------------------------------------

    The FDIC invites comments on all aspects of the supporting 
information provided in this RFA section. In particular, would this 
proposal have any significant effects on small entities that the FDIC 
has not identified?

C. Plain Language

    Section 722 of the Gramm-Leach-Bliley Act (Pub. L. 106-102, 113 
Stat. 1338, 1471) requires the Federal banking agencies to use plain 
language in all proposed and final rules published after January 1, 
2000. The FDIC has sought to present the proposed rule in a simple and 
straightforward manner.
    The FDIC invites your comments on how to make this revised proposal 
easier to understand. For example:
     Has the FDIC organized the material to suit your needs? If 
not, how could the material be better organized?
     Are the requirements in the proposed regulation clearly 
stated? If not, how could the regulation be stated more clearly?
     Does the proposed regulation contain language or jargon 
that is unclear? If so, which language requires clarification?
     Would a different format (grouping and order of sections, 
use of headings, paragraphing) make the regulation easier to 
understand?

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

    The FDIC has determined that the proposed rule will not affect 
family well-being within the meaning of Sec.  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).

List of Subjects in 12 CFR Part 370

    Bank deposit insurance, Banks, banking, Reporting and recordkeeping 
requirements, Savings associations.

Authority and Issuance

0
For the reasons set forth in the preamble, the Federal Insurance 
Deposit Corporation proposes to amend 12 CFR part 370 by revising it to 
read as follows:

PART 370--RECORDKEEPING FOR TIMELY DEPOSIT INSURANCE DETERMINATION

Sec.
370.1 Purpose and scope.
370.2 Definitions.
370.3 Information technology system requirements.
370.4 Recordkeeping requirements.
370.5 Actions required for certain deposit accounts with 
transactional features.
370.6 Implementation.
370.7 Accelerated implementation.
370.8 Relief.
370.9 Communication with the FDIC.
370.10 Compliance.
Appendix A to Part 370--Ownership Right and Capacity Codes
Appendix B to Part 370--Output Files Structure
Appendix C to Part 370--Credit Balance Processing File Structure

    Authority:  12 U.S.C. 1817(a)(9), 1819 (Tenth), 1821(f)(1), 
1822(c), 1823(c)(4).


Sec.  370.1   Purpose and scope.

    Unless otherwise provided in this part, each ``covered 
institution'' (defined in Sec.  370.2(c)) is required to implement the 
information technology system and recordkeeping capabilities needed to 
calculate the amount of deposit insurance coverage available for each 
deposit account in the event of its failure. Doing so will improve the 
FDIC's ability to fulfill its statutory mandates to pay deposit 
insurance as soon as possible after a covered institution's failure and 
to resolve a covered institution at the least cost to the Deposit 
Insurance Fund.


Sec.  370.2   Definitions.

    For purposes of this part:
    (a) Account holder means the person or entity who has opened a 
deposit account with a covered institution and with whom the covered 
institution has a direct legal and contractual relationship with 
respect to the deposit.
    (b) [Reserved.]
    (c) Covered institution means:
    (1) An insured depository institution which, based on its Reports 
of Condition and Income filed with the appropriate federal banking 
agency, has 2 million or more deposit accounts during the two 
consecutive quarters preceding the effective date of this part or 
thereafter; or
    (2) Any other insured depository institution that delivers written 
notice to the FDIC that it will voluntarily comply with the 
requirements set forth in this part.
    (d) Compliance date means, except as otherwise provided in Sec.  
370.6(b):
    (1) April 1, 2020, for any insured depository institution that was 
a covered institution as of April 1, 2017;
    (2) The date that is three years after the date on which an insured 
depository institution becomes a covered institution; or
    (3) The date on which an insured depository institution that elects 
to be a covered institution under Sec.  370.2(c)(2) files its first 
certification of compliance and deposit insurance coverage summary 
report pursuant to Sec.  370.10(a).
    (e) Deposit has the same meaning as provided under section 3(l) of 
the Federal Deposit Insurance Act (12 U.S.C. 1813(l)).
    (f) Deposit account records has the same meaning as provided in 12 
CFR 330.1(e).
    (g) Ownership rights and capacities are set forth in 12 CFR part 
330.
    (h) Payment instrument means a check, draft, warrant, money order, 
traveler's check, electronic instrument, or other instrument, payment 
of funds, or monetary value (other than currency).
    (i) Standard maximum deposit insurance amount (or SMDIA) has the 
same meaning as provided pursuant to section 11(a)(1)(E) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(a)(1)(E)) and 12 CFR 330.1(o).
    (j) Transactional features with respect to a deposit account means 
that the account holder or the beneficial owner of deposits can make 
transfers from the deposit account to parties other than the account 
holder, beneficial owner of deposits, or the covered institution 
itself, by methods that may result in such transfers being reflected in 
the end-of-day ledger balance for such deposit account on a day that is 
later

[[Page 14831]]

than the day that such transfer is initiated, even if initiated prior 
to the institution's normal cutoff time for such transaction. A deposit 
account also has transactional features if preauthorized or automatic 
instructions provide for transfer of deposits in the deposit account to 
another deposit account at the same institution, if such other deposit 
account itself has transactional features.
    (k) Unique identifier means an alpha-numeric code associated with 
an individual or entity that is used consistently and continuously by a 
covered institution to monitor the covered institution's relationship 
with that individual or entity.


Sec.  370.3   Information technology system requirements.

    (a) A covered institution must configure its information technology 
system to be capable of performing the functions set forth in paragraph 
(b) of this section within 24 hours after the appointment of the FDIC 
as receiver. To the extent that a covered institution does not maintain 
its deposit account records in the manner prescribed under Sec.  
370.4(a) but instead in the manner prescribed under Sec.  370.4(b), (c) 
or (d), the covered institution's information technology system must be 
able to perform the functions set forth in paragraph (b) of this 
section upon input by the FDIC of additional information collected 
after failure of the covered institution.
    (b) Each covered institution's information technology system must 
be capable of:
    (1) Accurately calculating the deposit insurance coverage for each 
deposit account in accordance with 12 CFR part 330;
    (2) Generating and retaining output records in the data format and 
layout specified in Appendix B;
    (3) Restricting access to some or all of the deposits in a deposit 
account until the FDIC has made its deposit insurance determination for 
that deposit account using the covered institution's information 
technology system; and
    (4) Debiting from each deposit account the amount that is uninsured 
as calculated pursuant to paragraph (b)(1) of this section.


Sec.  370.4   Recordkeeping requirements.

    (a) General recordkeeping requirements. Except as otherwise 
provided in paragraphs (b), (c), and (d) of this section, a covered 
institution must maintain in its deposit account records for each 
account the information necessary for its information technology system 
to meet the requirements set forth in Sec.  370.3. The information must 
include:
    (1) The unique identifier of each:
    (i) Account holder;
    (ii) Beneficial owner of a deposit, if the account holder is not 
the beneficial owner; and
    (iii) Grantor and each beneficiary, if the deposit account is held 
in connection with an informal revocable trust that is insured pursuant 
to 12 CFR 330.10 (e.g., payable-on-death accounts, in-trust-for 
accounts, and Totten Trust accounts).
    (2) The applicable ownership right and capacity code listed and 
described in Appendix A to this part.
    (b) Alternative recordkeeping requirements. As permitted under this 
paragraph, a covered institution may maintain in its deposit account 
records less information than is required under paragraph (a) of this 
section.
    (1) For each deposit account for which a covered institution's 
deposit account records disclose the existence of a relationship which 
might provide a basis for additional deposit insurance in accordance 
with 12 CFR 330.5 or 330.7 and for which the covered institution does 
not maintain information that would be needed for its information 
technology system to meet the requirements set forth in Sec.  370.3, 
the covered institution must maintain, at a minimum, the following in 
its deposit account records:
    (i) The unique identifier of the account holder; and
    (ii) The corresponding ``pending reason'' code listed in data field 
2 of the pending file format set forth in Appendix B (and need not 
maintain a ``right and capacity'' code).
    (2) For each formal revocable trust account that is insured as 
described in 12 CFR 330.10 and for each irrevocable trust account that 
is insured as described in either 12 CFR 330.12 or 12 CFR 330.13, and 
for which the covered institution does not maintain the information 
that would be needed for its information technology system to meet the 
requirements set forth in Sec.  370.3, the covered institution must, at 
a minimum, maintain in its deposit account records:
    (i) The unique identifier of the account holder;
    (ii) The unique identifier of the grantor if the deposit account 
has transactional features (unless the account is insured as described 
in 12 CFR 330.12, in which case the unique identifier of the grantor 
need not be maintained for purposes of this part); and
    (iii) The corresponding ``right and capacity'' code listed in data 
field 4 of the pending file format set forth in Appendix B.
    (c) Recordkeeping requirements for official items. A covered 
institution must maintain in its deposit account records the 
information needed for its information technology system to meet the 
requirements set forth in Sec.  370.3 with respect to accounts held in 
the name of the covered institution from which withdrawals are made to 
honor a payment instrument issued by the covered institution, such as a 
certified check, loan disbursement check, interest check, traveler's 
check, expense check, official check, cashier's check, money order, or 
similar payment instrument. To the extent that the covered institution 
does not have such information, it need only maintain in its deposit 
account records for those accounts the corresponding ``pending reason'' 
code listed in data field 2 of the pending file format set forth in 
Appendix B (and need not maintain a ``right and capacity'' code).
    (d) Recordkeeping requirements for deposits resulting from credit 
balances on an account for debt owed to the covered institution. A 
covered institution is not required to meet the recordkeeping 
requirements of paragraphs (a) or (b) of this section with respect to 
deposit liabilities reflected as credit balances on an account for debt 
owed to the covered institution if its information technology system is 
capable of:
    (1) Immediately upon failure, restricting access to:
    (i) Such credit balances on the account for debt owed to the 
covered institution, or
    (ii) An equal amount in that borrower's deposit account(s) at the 
covered institution; and
    (2) Producing:
    (i) Within 24 hours after failure, a file listing credit balances 
on open-end credit accounts (revolving credit lines) such as credit 
card accounts and home equity lines of credit in the format provided in 
Appendix C to this part 370 that can be used by the covered 
institution's information technology system to meet the requirements 
set forth in Sec.  370.3(b)(1), (2) and (4); and
    (ii) Promptly after failure, a file listing the credit balances on 
closed-end loan accounts in the format provided in Appendix C to this 
part 370 that can be used by the covered institution's information 
technology system to meet the requirements set forth in Sec.  
370.3(b)(1), (2) and (4).

[[Page 14832]]

Sec.  370.5   Actions required for certain deposit accounts with 
transactional features.

    (a) For each deposit account with transactional features for which 
the covered institution maintains its deposit account records in 
accordance with Sec.  370.4(b)(1), a covered institution must take 
steps reasonably calculated to ensure that the account holder will 
provide to the FDIC the information needed for the covered 
institution's information technology system to calculate deposit 
insurance coverage as set forth in Sec.  370.3(b) within 24 hours after 
the appointment of the FDIC as receiver. At a minimum, ``steps 
reasonably calculated'' shall include:
    (1) Contractual arrangements with the account holder that obligate 
the account holder to deliver information needed for deposit insurance 
calculation to the FDIC in a format compatible with the covered 
institution's information technology system immediately upon the 
covered institution's failure; and
    (2) A disclosure stating that the account holder's delay in 
delivery of such information, or the account holder's delivery of 
information in a format that is not compatible with the covered 
institution's information technology system, could result in delayed 
access to deposits should the covered institution fail.
    (b) A covered institution need not take the steps required pursuant 
to paragraph (a) of this section with respect to:
    (1) Accounts maintained by a mortgage servicer, in a custodial or 
other fiduciary capacity, which are comprised of payments by 
mortgagors;
    (2) Accounts maintained by real estate brokers, real estate agents, 
or title companies in which funds from multiple clients are deposited 
and held for a short period of time in connection with a real estate 
transaction;
    (3) Accounts established by an attorney or law firm on behalf of 
clients, commonly known as an Interest on Lawyers Trust Accounts, or 
functionally equivalent accounts;
    (4) Accounts held in connection with an employee benefit plan (as 
defined in 12 CFR 330.14); and
    (5) An account maintained by an account holder for the benefit of 
others, to the extent that the deposits in the account are held for the 
benefit of:
    (i) A formal revocable trust that would be insured as described in 
12 CFR 330.10;
    (ii) An irrevocable trust that would be insured as described in 12 
CFR 330.12; or
    (iii) An irrevocable trust that would be insured as described in 12 
CFR 330.13.


Sec.  370.6   Implementation.

    (a) A covered institution must satisfy the information technology 
system and recordkeeping requirements set forth in this part before the 
compliance date.
    (b) Extension.
    (1) A covered institution may submit a request to the FDIC for an 
extension of its compliance date. The request shall state the amount of 
additional time needed to meet the requirements of this part, the 
reason(s) for which such additional time is needed, and the total 
number and dollar value of accounts for which deposit insurance 
coverage could not be calculated using the covered institution's 
information technology system were the covered institution to fail as 
of the date of the request. The FDIC's grant of a covered institution's 
request for extension may be conditional or time-limited.
    (2) An insured depository institution that became a covered 
institution on April 1, 2017, may extend its compliance date for up to 
one year upon written notice to the FDIC prior to April 1, 2020. Such 
notice shall state the total number of, and dollar amount of deposits 
in, deposit accounts for which the covered institution's information 
technology system cannot calculate deposit insurance coverage as of 
April 1, 2020.


Sec.  370.7   Accelerated implementation.

    (a) On a case-by-case basis, the FDIC may accelerate, upon notice, 
the implementation time frame for all or part of the requirements of 
this part for a covered institution that:
    (1) Has a composite rating of 3, 4, or 5 under the Uniform 
Financial Institution's Rating System (CAMELS rating), or in the case 
of an insured branch of a foreign bank, an equivalent rating;
    (2) Is undercapitalized, as defined under the prompt corrective 
action provisions of 12 CFR part 324; or
    (3) Is determined by the appropriate federal banking agency or the 
FDIC in consultation with the appropriate federal banking agency to be 
experiencing a significant deterioration of capital or significant 
funding difficulties or liquidity stress, notwithstanding the composite 
rating of the covered institution by its appropriate federal banking 
agency in its most recent report of examination.
    (b) In implementing this section, the FDIC must consult with the 
covered institution's appropriate federal banking agency and consider 
the complexity of the covered institution's deposit system and 
operations, extent of the covered institution's asset quality 
difficulties, volatility of the institution's funding sources, expected 
near-term changes in the covered institution's capital levels, and 
other relevant factors appropriate for the FDIC to consider in its role 
as insurer of the covered institution.


Sec.  370.8   Relief.

    (a) Exemption. A covered institution may submit a request in the 
form of a letter to the FDIC for an exemption from this part if it 
demonstrates that it does not take deposits from any account holder 
which, when aggregated, would exceed the SMDIA for any owner of the 
funds on deposit and will not in the future.
    (b) Exception. (1) One or more covered institutions may submit a 
request in the form of a letter to the FDIC for exception from one or 
more of the requirements set forth in this part if circumstances exist 
that would make it impracticable or overly burdensome to meet those 
requirements. The request letter must:
    (i) Identify the covered institution(s) requesting the exception;
    (ii) Specify the requirement(s) of this part from which exception 
is sought;
    (iii) Describe the deposit accounts the request concerns and state 
the number of, and dollar amount of deposits in, such deposit accounts 
for each covered institution requesting the exception;
    (iv) Demonstrate the need for exception for each covered 
institution requesting the exception; and
    (v) Explain the impact of the exception on the ability of each 
covered institution's information technology system to quickly and 
accurately calculate deposit insurance for the related deposit 
accounts.
    (2) The FDIC shall publish a notice of its response to each 
exception request in the Federal Register.
    (3) By following the procedure set forth in this paragraph, a 
covered institution may rely upon another covered institution's 
exception request which the FDIC has previously granted. The covered 
institution must notify the FDIC that it will invoke relief from 
certain part 370 requirements by submitting a notification letter to 
the FDIC demonstrating that the covered institution has substantially 
similar facts and the same circumstances as those of the covered 
institution that has already received the FDIC's approval. The covered 
institution's notification letter must also include the information 
required under paragraph (b)(1) of this section and cite the applicable 
notice published pursuant to paragraph (b)(2)

[[Page 14833]]

of this section. The covered institution's notification for exception 
shall be deemed granted subject to the same conditions set forth in the 
FDIC's published notice unless the FDIC informs the covered institution 
to the contrary within 120 days after receipt of a complete 
notification for exception.
    (c) Release from this part. A covered institution may submit a 
request in the form of a letter to the FDIC for release from this part 
if, based on its Reports of Condition and Income filed with the 
appropriate federal banking agency, it has less than two million 
deposit accounts during any three consecutive quarters after becoming a 
covered institution.
    (d) Release from 12 CFR 360.9 requirements. A covered institution 
is released from the provisional hold and standard data format 
requirements of 12 CFR 360.9 upon submitting to the FDIC the compliance 
certification required under Sec.  370.10(a). A covered institution 
released from 12 CFR 360.9 under this paragraph (d) shall remain 
released for so long as it is a covered institution.
    (e) FDIC approval of a request. The FDIC will consider all requests 
submitted in writing by a covered institution on a case-by-case basis 
in light of the objectives of this part, and the FDIC's grant of any 
request made by a covered institution pursuant to this section may be 
conditional or time-limited.


Sec.  370.9   Communication with the FDIC.

    (a) Point of contact. Not later than ten business days after either 
the effective date of this part or becoming a covered institution, a 
covered institution must notify the FDIC of the person(s) responsible 
for implementing the recordkeeping and information technology system 
capabilities required by this part.
    (b) Address. Point-of-contact information, reports and requests 
made under this part shall be submitted in writing to: Office of the 
Director, Division of Resolutions and Receiverships, Federal Deposit 
Insurance Corporation, 550 17th Street NW, Washington, DC 20429-0002.


Sec.  370.10   Compliance.

    (a) Certification and report. A covered institution shall submit to 
the FDIC a certification of compliance and a deposit insurance coverage 
summary report on or before its compliance date and annually 
thereafter.
    (1) The certification must:
    (i) Confirm that the covered institution has implemented all 
required capabilities and tested its information technology system 
during the preceding twelve months;
    (ii) Confirm that such testing indicates that the covered 
institution is in compliance with this part; and
    (iii) Be signed by the covered institution's chief executive 
officer or chief operating officer and made to the best of his or her 
knowledge and belief after due inquiry.
    (2) The deposit insurance coverage summary report must include:
    (i) A description of any material change to the covered 
institution's information technology system or deposit taking 
operations since the prior annual certification;
    (ii) The number of deposit accounts, number of different account 
holders, and dollar amount of deposits by ownership right and capacity 
code (as listed and described in Appendix A);
    (iii) The total number of fully-insured deposit accounts and the 
total dollar amount of deposits in all such accounts;
    (iv) The total number of deposit accounts with uninsured deposits 
and the total dollar amount of uninsured amounts in all of those 
accounts; and
    (v) By deposit account type, the total number of, and dollar amount 
of deposits in, deposit accounts for which the covered institution's 
information technology system cannot calculate deposit insurance 
coverage using information currently maintained in the covered 
institution's deposit account records.
    (3) If a covered institution experiences a significant change in 
its deposit taking operations, the FDIC may require that it submit a 
certification of compliance and a deposit insurance coverage summary 
report more frequently than annually.
    (b) FDIC Testing.
    (1) The FDIC will conduct periodic tests of a covered institution's 
compliance with this part. These tests will begin no sooner than the 
last day of the first calendar quarter following the compliance date 
and would occur no more frequently than on a three-year cycle 
thereafter, unless there is a material change to the covered 
institution's information technology system, deposit-taking operations, 
or financial condition following the compliance date, in which case the 
FDIC may conduct such tests at any time thereafter.
    (2) A covered institution shall provide the appropriate assistance 
to the FDIC as the FDIC tests the covered institution's ability to 
satisfy the requirements set forth in this part.
    (c) Effect of pending requests. A covered institution that has 
submitted a request pursuant to Sec.  370.6(b) or Sec.  370.8(a) 
through (c) will not be considered to be in violation of this part as 
to the requirements that are the subject of the request while awaiting 
the FDIC's response to such request.
    (d) Effect of changes to law. A covered institution will not be 
considered to be in violation of this part as a result of a change in 
law that alters the availability or calculation of deposit insurance 
for such period as specified by the FDIC following the effective date 
of such change.
    (e) Effect of merger. An instance of non-compliance occurring as 
the direct result of a merger between a covered institution and another 
insured depository institution shall be deemed not to constitute a 
violation of this part for a period of one year following the effective 
date of the merger.

Appendix A to Part 370: Ownership Right and Capacity Codes

    A covered institution must use the codes defined below when 
assigning ownership right and capacity codes.

------------------------------------------------------------------------
             Code                       Illustrative description
------------------------------------------------------------------------
SGL...........................  Single Account (12 CFR 330.6): An
                                 account owned by one person with no
                                 testamentary or ``payable-on-death''
                                 beneficiaries. It includes individual
                                 accounts, sole proprietorship accounts,
                                 single-name accounts containing
                                 community property funds, and accounts
                                 of a decedent and accounts held by
                                 executors or administrators of a
                                 decedent's estate.
JNT...........................  Joint Account (12 CFR 330.9): An account
                                 owned by two or more persons with no
                                 testamentary or ``payable-on-death''
                                 beneficiaries (other than surviving co-
                                 owners) An account does not qualify as
                                 a joint account unless: (1) All co-
                                 owners are living persons; (2) each co-
                                 owner has personally signed a deposit
                                 account signature card (except that the
                                 signature requirement does not apply to
                                 certificates of deposit, to any deposit
                                 obligation evidenced by a negotiable
                                 instrument, or to any account
                                 maintained on behalf of the co-owners
                                 by an agent or custodian); and (3) each
                                 co-owner possesses withdrawal rights on
                                 the same basis.

[[Page 14834]]

 
REV...........................  Revocable Trust Account (12 CFR 330.10):
                                 An account owned by one or more persons
                                 that evidences an intention that, upon
                                 the death of the owner(s), the funds
                                 shall belong to one or more
                                 beneficiaries. There are two types of
                                 revocable trust accounts:
                                   (1) Payable-on-Death Account
                                    (Informal Revocable Trust Account):
                                    An account owned by one or more
                                    persons with one or more
                                    testamentary or ``payable-on-death''
                                    beneficiaries.
                                   (2) Revocable Living Trust Account
                                    (Formal Revocable Trust Account): An
                                    account in the name of a formal
                                    revocable ``living trust'' with one
                                    or more grantors and one or more
                                    testamentary beneficiaries.
IRR...........................  Irrevocable Trust Account (12 CFR
                                 330.13): An account in the name of an
                                 irrevocable trust (unless the trustee
                                 is an insured depository institution,
                                 in which case the applicable code is
                                 DIT.
CRA...........................  Certain Other Retirement Accounts (12
                                 CFR 330.14 (b)-(c)) to the extent that
                                 participants under such plan have the
                                 right to direct the investment of
                                 assets held in individual accounts
                                 maintained on their behalf by the plan,
                                 including an individual retirement
                                 account described in section 408(a) of
                                 the Internal Revenue Code (26 U.S.C.
                                 408(a)), an account of a deferred
                                 compensation plan described in section
                                 457 of the Internal Revenue Code (26
                                 U.S.C. 457), an account of an
                                 individual account plan as defined in
                                 section 3(34) of the Employee
                                 Retirement Income Security Act (29
                                 U.S.C. 1002), a plan described in
                                 section 401(d) of the Internal Revenue
                                 Code (26 U.S.C. 401(d)).
EBP...........................  Employee Benefit Plan Account (12 CFR
                                 330.14): An account of an employee
                                 benefit plan as defined in section 3(3)
                                 of the Employee Retirement Income
                                 Security Act (29 U.S.C. 1002),
                                 including any plan described in section
                                 401(d) of the Internal Revenue Code (26
                                 U.S.C. 401(d)), but not including any
                                 account classified as a Certain
                                 Retirement Account.
BUS...........................  Business/Organization Account (12 CFR
                                 330.11): An account of an organization
                                 engaged in an `independent activity'
                                 (as defined in Sec.   330.1(g)), but
                                 not an account of a sole
                                 proprietorship.
                                This category includes:
                                   a. Corporation Account: An account
                                    owned by a corporation.
                                   b. Partnership Account: An account
                                    owned by a partnership.
                                   c. Unincorporated Association
                                    Account: An account owned by an
                                    unincorporated association (i.e., an
                                    account owned by an association of
                                    two or more persons formed for some
                                    religious, educational, charitable,
                                    social, or other noncommercial
                                    purpose).
GOV1-GOV2-GOV3................  Government Account (12 CFR 330.15): An
                                 account of a governmental entity.
    GOV1......................  All time and savings deposit accounts of
                                 the United States and all time and
                                 savings deposit accounts of a state,
                                 county, municipality, or political
                                 subdivision depositing funds in an
                                 insured depository institution in the
                                 state comprising the public unit or
                                 wherein the public unit is located
                                 (including any insured depository
                                 institution having a branch in said
                                 state).
    GOV2......................  All demand deposit accounts of the
                                 United States and all demand deposit
                                 accounts of a state, county,
                                 municipality, or political subdivision
                                 depositing funds in an insured
                                 depository institution in the state
                                 comprising the public unit or wherein
                                 the public unit is located (including
                                 any insured depository institution
                                 having a branch in said state).
    GOV3......................  All deposits, regardless of whether they
                                 are time, savings or demand deposit
                                 accounts of a state, county,
                                 municipality or political subdivision
                                 depositing funds in an insured
                                 depository institution outside of the
                                 state comprising the public unit or
                                 wherein the public unit is located.
MSA...........................  Mortgage Servicing Account (12 CFR
                                 330.7(d)): An account held by a
                                 mortgage servicer, funded by payments
                                 by mortgagors of principal and
                                 interest.
PBA...........................  Public Bond Accounts (12 CFR 330.15(c)):
                                 An account consisting of funds held by
                                 an officer, agent or employee of a
                                 public unit for the purpose of
                                 discharging a debt owed to the holders
                                 of notes or bonds issued by the public
                                 unit.
DIT...........................  IDI as trustee of irrevocable trust
                                 accounts (12 CFR 330.12): ``Trust
                                 funds'' (as defined in Sec.   330.1(q))
                                 account held by an insured depository
                                 institution as trustee of an
                                 irrevocable trust.
ANC...........................  Annuity Contract Accounts (12 CFR
                                 330.8): Funds held by an insurance
                                 company or other corporation in a
                                 deposit account for the sole purpose of
                                 funding life insurance or annuity
                                 contracts and any benefits incidental
                                 to such contracts.
BIA...........................  Custodian accounts for American Indians
                                 (12 CFR 330.7(e)): Funds deposited by
                                 the Bureau of Indian Affairs of the
                                 United States Department of the
                                 Interior (the ``BIA'') on behalf of
                                 American Indians pursuant to 25 U.S.C.
                                 162(a), or by any other disbursing
                                 agent of the United States on behalf of
                                 American Indians pursuant to similar
                                 authority, in an insured depository
                                 institution.
DOE...........................  IDI Accounts under Department of Energy
                                 Program: Funds deposited by an insured
                                 depository institution pursuant to the
                                 Bank Deposit Financial Assistance
                                 Program of the Department of Energy.
------------------------------------------------------------------------

Appendix B to Part 370: Output Files Structure

    These output files will include the data necessary for the FDIC 
to determine deposit insurance coverage in a resolution. A covered 
institution's information technology system must have the capability 
to prepare and maintain the files detailed below. These files must 
be prepared in successive iterations as the FDIC receives additional 
data from external sources necessary to complete the deposit 
insurance determinations, and, as it updates pending determinations. 
The files will be comprised of the following four tables. The unique 
identifier and government identification are required in all four 
tables so those tables can be linked where necessary.
    A null value, as indicated in the table below, is allowed for 
fields that are not immediately needed to calculate deposit 
insurance. To ensure timely calculations for depositor liquidity 
purposes, the information with null-value designations can be 
obtained after the initial deposit insurance calculation. As due 
diligence for recordkeeping progresses throughout the years of 
ongoing compliance, the FDIC expects that the banks will continue 
efforts to the capture the null-value designations and populate the 
output file to alleviate the burden at failure. If a null value is 
allowed in a field, the record should not be placed in the pending 
file.
    These files must be prepared in successive iterations as the 
covered institution receives additional data from external sources 
necessary to complete any pending deposit insurance calculations. 
The unique identifier is required in all four files to link the 
customer information. All files are pipe delimited. Do not pad 
leading and trailing spacing or zeros for the data fields.

[[Page 14835]]

[GRAPHIC] [TIFF OMITTED] TP11AP19.000

    Customer File. Customer File will be used by the FDIC to 
identify the customers. One record represents one unique customer.
    The data elements will include:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Field name                                  Description                             Format                   Null value allowed?
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. CS_Unique_ID..................................  This field is the unique identifier    Variable Character...............  No.
                                                    that is the primary key for the
                                                    depositor data record. It will be
                                                    generated by the covered institution
                                                    and there shall not be duplicates.
2. CS_Govt_ID....................................  This field shall contain the ID        Variable Character...............  No.
                                                    number that identifies the entity
                                                    based on a government issued ID or
                                                    corporate filing. Populate as
                                                    follows:
                                                   --For a United States individual--SSN
                                                    or TIN
                                                   --For a foreign national individual--
                                                    where a SSN or TIN does not exist, a
                                                    foreign passport or other legal
                                                    identification number (e.g., Alien
                                                    Card)
                                                   --For a Non-Individual--the Tax
                                                    identification Number (TIN), or
                                                    other register entity number
3. CS_Govt_ID_Type...............................  The valid customer identification      Character (3)....................  No.
                                                    types, are noted below:
                                                   --SSN--Social Security Number
                                                   --TIN--Tax Identification Number
                                                   --DL--Driver's License, issued by a
                                                    State or Territory of the United
                                                    States
                                                   --ML--Military ID
                                                   --PPT--Valid Passport
                                                   --AID--Alien Identification Card
                                                   --OTH--Other
4. CS_Type.......................................  The customer type field indicates the  Character (3)....................  Yes.
                                                    type of entity the customer is at
                                                    the covered institution. The valid
                                                    values are:
                                                   --IND--Individual
                                                   --BUS--Business
                                                   --TRT--Trust
                                                   --NFP--Non-Profit
                                                   --GOV--Government
                                                   --OTH--Other
5. CS_First_Name.................................  Customer first name. Use only for the  Variable Character...............  No.
                                                    name of individuals and the primary
                                                    contact for entity.
6. CS_Middle_Name................................  Customer middle name. Use only for     Variable Character...............  Yes.
                                                    the name of individuals and the
                                                    primary contact for entity.
7. CS_Last_Name..................................  Customer last name. Use only for the   Variable Character...............  No.
                                                    name of individuals and the primary
                                                    contact for entity.
8. CS_Name_Suffix................................  Customer suffix.                       Variable Character...............  Yes.
9. CS_Entity_Name................................  The registered name of the entity. Do  Variable Character...............  Yes.
                                                    not use this field if the customer
                                                    is an individual.
10. CS_Street_Add_Ln1............................  Street address line 1. The current     Variable Character...............  Yes.
                                                    account statement mailing address of
                                                    record.
11. CS_Street_Add_Ln2............................  Street address line 2. If available,   Variable Character...............  Yes.
                                                    the second address line.
12. CS_Street_Add_Ln3............................  Street address line 3. If available,   Variable Character...............  Yes.
                                                    the third address line.
13. CS_City......................................  The city associated with the mailing   Variable Character...............  Yes.
                                                    address.
14. CS_State.....................................  The state for United States addresses  Variable Character...............  Yes.
                                                    or state/province/county for
                                                    international addresses.
                                                   --For United States addresses use a
                                                    two-character state code (official
                                                    United States Postal Service
                                                    abbreviations) associated with the
                                                    mailing address.
                                                   --For international address follow
                                                    that country state code.
15. CS_ZIP.......................................  The Zip/Postal Code associated with    Variable Character...............  Yes.
                                                    the customer's mailing address.
                                                   --For United States zip codes, use
                                                    the United States Postal Service
                                                    ZIP+4 standard
                                                   --For international zip codes follow
                                                    that standard format of that country
16. CS_Country...................................  The country associated with the        Variable Character...............  Yes.
                                                    mailing address. Provide the country
                                                    name or the standard International
                                                    Organization for Standardization
                                                    (ISO) country code.
17. CS_Telephone.................................  Customer telephone number. The         Variable Character...............  Yes.
                                                    telephone number on record for the
                                                    customer, including the country code
                                                    if not within the United States.
18. CS_Email.....................................  The email address on record for the    Variable Character...............  Yes.
                                                    customer.
19. CS_Outstanding_Debt_Flag.....................  This field indicates whether the       Character (1)....................  Yes.
                                                    customer has outstanding debt with
                                                    covered institution. This field may
                                                    be used by the FDIC to determine
                                                    offsets. Enter ``Y'' if customer has
                                                    outstanding debt with covered
                                                    institutions, enter ``N'' otherwise.

[[Page 14836]]

 
20. CS_Security_Pledge_Flag......................  This field shall only be used for      Character (1)....................  No.
                                                    Government customers. This field
                                                    indicates whether the covered
                                                    institution has pledged securities
                                                    to the government entity, to cover
                                                    any shortfall in deposit insurance.
                                                    Enter ``Y'' if the government entity
                                                    has outstanding security pledge with
                                                    covered institutions, enter ``N''
                                                    otherwise.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Account File. The Account File contains the deposit ownership 
rights and capacities information, allocated balances, insured 
amounts, and uninsured amounts. The balances are in U.S. dollars. 
The Account file is linked to the Customer File by the CS_Unique_ID.
    The data elements will include:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Field name                                  Description                             Format                   Null value allowed?
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. CS_Unique_ID..................................  This field is the unique identifier    Variable Character...............  No.
                                                    that is the primary key for the
                                                    depositor data record. It will be
                                                    generated by the covered institution
                                                    and there cannot be duplicates.
2. DP_Acct_Identifier............................  Deposit account identifier. The        Variable Character...............  No.
                                                    primary field used to identify a
                                                    deposit account.
                                                   The account identifier may be
                                                    composed of more than one physical
                                                    data element to uniquely identify a
                                                    deposit account.
3. DP_Right_Capacity.............................  Account ownership categories.          Character (4)....................  No.
                                                   --SGL--Single accounts
                                                   --JNT--Joint accounts
                                                   --REV--Revocable trust accounts
                                                   --IRR--Irrevocable trust accounts
                                                   --CRA--Certain retirement accounts
                                                   --EBP--Employee benefit plan accounts
                                                   --BUS--Business/Organization accounts
                                                   --GOV1, GOV2, GOV3--Government
                                                    accounts (public unit accounts)
                                                   --MSA--Mortgage servicing accounts
                                                    for principal and interest payments
                                                   --DIT--Accounts held by a depository
                                                    institution as the trustee of an
                                                    irrevocable trust
                                                   --ANC--Annuity contract accounts
                                                   --PBA--Public bond accounts
                                                   --BIA--Custodian accounts for
                                                    American Indians
                                                   --DOE--Accounts of an IDI pursuant to
                                                    the Bank Deposit Financial
                                                    Assistance Program of the Department
                                                    of Energy
4. DP_Prod_Cat...................................  Product category or classification.    Character (3)....................  Yes. For credit card
                                                   --DDA--Demand Deposit Accounts                                             accounts with a credit
                                                   --NOW--Negotiable Order of Withdrawal                                      balance that create a
                                                   --MMA--Money Market Deposit Accounts                                       deposit liability, use a
                                                   --SAV--Other savings accounts                                              NULL value for this field.
                                                   --CDS--Time Deposit accounts and
                                                    Certificate of Deposit accounts,
                                                    including any accounts with
                                                    specified maturity dates that may or
                                                    may not be renewable.
5. DP_Allocated_Amt..............................  The current balance in the account at  Decimal (14,2)...................  No.
                                                    the end of business on the effective
                                                    date of the file, allocated to a
                                                    specific owner in that insurance
                                                    category.
                                                   For JNT accounts, this is a
                                                    calculated field that represents the
                                                    allocated amount to each owner in
                                                    JNT category.
                                                   For REV accounts, this is a
                                                    calculated field that represents the
                                                    allocated amount to each owner-
                                                    beneficiary in REV category.
                                                   For other accounts with only one
                                                    owner, this is the account current
                                                    balance.
                                                   This balance shall not be reduced by
                                                    float or holds. For CDs and time
                                                    deposits, the balance shall reflect
                                                    the principal balance plus any
                                                    interest paid and available for
                                                    withdrawal not already included in
                                                    the principal (do not include
                                                    accrued interest).
6. DP_Acc_Int....................................  Accrued interest allocated similarly   Decimal (14,2)...................  No.
                                                    as data field #5 DP_Allocated_Amt.
                                                   The amount of interest that has been
                                                    earned but not yet paid to the
                                                    account as of the date of the file.
7. DP_Total_PI...................................  Total amount adding #5                 Decimal (14,2)...................  No.
                                                    DP_Allocated_Amt and #6 DP_Acc_Int.
8. DP_Hold_Amount................................  Hold amount on the account.            Decimal (14,2)...................  No.
                                                   The available balance of the account
                                                    is reduced by the hold amount. It
                                                    has no effect on current balance
                                                    (ledger balance).
9. DP_Insured_Amount.............................  The insured amount of the account.     Decimal (14,2)...................  No.
10. DP_Uninsured_Amount..........................  The uninsured amount of the account.   Decimal (14,2)...................  No.
11. DP_Prepaid_Account_Flag......................  This field indicates a prepaid         Character (1)....................  No.
                                                    account with covered institution.
                                                    Enter ``Y'' if account is a prepaid
                                                    account with covered institutions,
                                                    enter ``N'' otherwise.
12. DP_PT_Account_Flag...........................  This field indicates a pass-through    Character (1)....................  No.
                                                    account with covered institution.
                                                    Enter ``Y'' if account is a pass-
                                                    through with covered institutions,
                                                    enter ``N'' otherwise.

[[Page 14837]]

 
13. DP_PT_Trans_Flag.............................  This field indicates whether the       Character (1)....................  No.
                                                    fiduciary account has sub-accounts
                                                    that have transactional features.
                                                    Enter ``Y'' if account has
                                                    transactional features, enter ``N''
                                                    otherwise.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Account Participant File. The Account Participant File will be 
used by the FDIC to identify account participants, to include the 
official custodian, beneficiary, bond holder, mortgagor, or employee 
benefit plan participant, for each account and account holder. One 
record represents one unique account participant. The Account 
Participant File is linked to the Account File by CS_Unique_ID and 
DP_Acct_Identifier.
    The data elements will include:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Field name                                  Description                             Format                   Null value allowed?
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. CS_Unique_ID..................................  This field is the unique identifier    Variable Character...............  No.
                                                    that is the primary key for the
                                                    depositor data record. It will be
                                                    generated by the covered institution
                                                    and there shall not be duplicates.
2. DP_Acct_Identifier............................  Deposit account identifier. The        Variable Character...............  No.
                                                    primary field used to identify a
                                                    deposit account. The account
                                                    identifier may be composed of more
                                                    than one physical data element to
                                                    uniquely identify a deposit account.
3. DP_Right_Capacity.............................  Account ownership categories.          Character (4)....................  No.
                                                   --SGL--Single accounts
                                                   --JNT--Joint accounts
                                                   --REV--Revocable trust accounts
                                                   --IRR--Irrevocable trust accounts
                                                   --CRA--Certain retirement accounts
                                                   --EBP--Employee benefit plan accounts
                                                   --BUS--Business/Organization accounts
                                                   --GOV1, GOV2, GOV3--Government
                                                    accounts (public unit accounts)
                                                   --MSA--Mortgage servicing accounts
                                                    for principal and interest payments
                                                   --DIT--Accounts held by a depository
                                                    institution as the trustee of an
                                                    irrevocable trust
                                                   --ANC--Annuity contract accounts
                                                   --PBA--Public bond accounts
                                                   --BIA--Custodian accounts for
                                                    American Indians
                                                   --DOE--Accounts of an IDI pursuant to
                                                    the Bank Deposit Financial
                                                    Assistance Program of the Department
                                                    of Energy
4. DP_Prod_Category..............................  Product category or classification.    Character (3)....................  Yes.
                                                   --DDA--Demand Deposit Accounts
                                                   --NOW--Negotiable Order of Withdrawal
                                                   --MMA--Money Market Deposit Accounts
                                                   --SAV--Other savings accounts
                                                   --CDS--Time Deposit accounts and
                                                    Certificate of Deposit accounts,
                                                    including any accounts with
                                                    specified maturity dates that may or
                                                    may not be renewable.
5. AP_Allocated_Amount...........................  Amount of funds attributable to the    Decimal (14,2)...................  No.
                                                    account participant as an account
                                                    holder (e.g., Public account holder
                                                    of a public bond account) or the
                                                    amount of funds entitled to the
                                                    beneficiary for the purpose of
                                                    insurance determination (e.g.,
                                                    Revocable Trust)
6. AP_Participant_ID.............................  This field is the unique identifier    Variable Character...............  No.
                                                    for the Account Participant. It will
                                                    be generated by the covered
                                                    institution and there shall not be
                                                    duplicates. If the account
                                                    participant is an existing bank
                                                    customer this field is the same as
                                                    CS_Unique_ID field.
7. AP_Govt_ID....................................  This field shall contain the ID        Variable Character...............  No.
                                                    number that identifies the entity
                                                    based on a government issued ID or
                                                    corporate filling. Populate as
                                                    follows:
                                                   --For a United States individual--
                                                    Legal identification number (e.g.,
                                                    SSN, TIN, Driver's License, or
                                                    Passport Number)
                                                   --For a foreign national individual--
                                                    where a SSN or TIN does not exist, a
                                                    foreign passport or other legal
                                                    identification number (e.g., Alien
                                                    Card)
                                                   --For a Non-Individual--the Tax
                                                    identification Number (TIN), or
                                                    other register entity number
8. AP_Govt_ID_Type...............................  The valid customer identification      Character (3)....................  No.
                                                    types, are:
                                                   --SSN--Social Security Number
                                                   --TIN--Tax Identification Number
                                                   --DL--Driver's License, issued by a
                                                    State or Territory of the United
                                                    States
                                                   --ML--Military ID
                                                   --PPT--Valid Passport
                                                   --AID--Alien Identification Card
                                                   --OTH--Other
9. AP_First_Name.................................  Customer first name. Use only for the  Variable Character...............  No.
                                                    name of individuals and the primary
                                                    contact for entity.
10. AP_Middle_Name...............................  Customer middle name. Use only for     Variable Character...............  Yes.
                                                    the name of individuals and the
                                                    primary contact for entity.

[[Page 14838]]

 
11. AP_Last_Name.................................  Customer last name. Use only for the   Variable Character...............  No.
                                                    name of individuals and the primary
                                                    contact for entity.
12. AP_Entity_Name...............................  The registered name of the entity. Do  Variable Character...............  Yes.
                                                    not use this field if the
                                                    participant is an individual.
13. AP_Participant_Type..........................  This field is used as the participant  Character (3)....................  Yes.
                                                    type identifier. The field will list
                                                    the ``beneficial owner'' type:
                                                   --OC--Official Custodian
                                                   --BEN--Beneficiary
                                                   --BHR--Bond Holder
                                                   --MOR--Mortgagor
                                                   --EPP--Employee Benefit Plan
                                                    Participant
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Pending File. The Pending File contains the information needed 
for the FDIC to contact the owner or agent requesting additional 
information to complete the deposit insurance calculation. Each 
record represents a deposit account.
    The data elements will include:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Field name                                  Description                             Format                   Null value allowed?
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. CS_Unique_ID..................................  This field is the unique identifier    Variable Character...............  No.
                                                    that is the primary key for the
                                                    depositor data record. It will be
                                                    generated by the covered institution
                                                    and there cannot be duplicates.
2. Pending_Reason................................  Reason code for the account to be      Character (5)....................  No.
                                                    included in Pending file.
                                                   For deposit account records
                                                    maintained by the bank, use the
                                                    following codes.
                                                      --A--agency or custodian
                                                      --B--beneficiary
                                                      --OI--official item
                                                      --RAC--right and capacity code
                                                   For alternative recordkeeping
                                                    requirements, use the following
                                                    codes.
                                                      --ARB--depository organization for
                                                       brokered deposits (Brokered
                                                       deposit has the same meaning as
                                                       provided in 12 CFR 337.6(a)(2)).
                                                      --ARBN--non-depository
                                                       organization for brokered
                                                       deposits (Brokered deposit has
                                                       the same meaning as provided in
                                                       12 CFR 337.6(a)(2)).
                                                      --ARCRA--certain retirement
                                                       accounts
                                                      --AREBP--employee benefit plan
                                                       accounts
                                                      --ARM--mortgage servicing for
                                                       principal and interest payments
                                                      --ARO--other deposits
                                                      --ARTR--trust accounts
                                                   The FDIC needs these codes to
                                                    initiate the collection of needed
                                                    information.
3. DP_Acct_Identifier............................  Deposit account identifier. The        Variable Character...............  No.
                                                    primary field used to identify a
                                                    deposit account.
                                                   The account identifier may be
                                                    composed of more than one physical
                                                    data element to uniquely identify a
                                                    deposit account.
4. DP_Right_Capacity.............................  Account ownership categories.          Character (4)....................  Yes.
                                                      --SGL--Single accounts
                                                      --JNT--Joint accounts
                                                      --REV--Revocable trust accounts
                                                      --IRR--Irrevocable trust accounts
                                                      --CRA--Certain retirement accounts
                                                      --EBP--Employee benefit plan
                                                       accounts
                                                      --BUS--Business/Organization
                                                       accounts
                                                      --GOV1, GOV2, GOV3--Government
                                                       accounts (public unit accounts)
                                                      --MSA--Mortgage servicing accounts
                                                       for principal and interest
                                                       payments
                                                      --DIT--Accounts held by a
                                                       depository institution as the
                                                       trustee of an irrevocable trust
                                                      --ANC--Annuity contract accounts
                                                      --PBA--Public bond accounts
                                                      --BIA--Custodian accounts for
                                                       American Indians
                                                      --DOE--Accounts of an IDI pursuant
                                                       to the Bank Deposit Financial
                                                       Assistance Program of the
                                                       Department of Energy
5. DP_Prod_Category..............................  Product category or classification.    Character (3)....................  Yes.
                                                      --DDA--Demand Deposit Accounts
                                                      --NOW--Negotiable Order of
                                                       Withdrawal
                                                      --MMA--Money Market Deposit
                                                       Accounts
                                                      --SAV--Other savings accounts
                                                      --CDS--Time Deposit accounts and
                                                       Certificate of Deposit accounts,
                                                       including any accounts with
                                                       specified maturity dates that may
                                                       or may not be renewable.
6. DP_Cur_Bal....................................  Current balance. The current balance   Decimal (14,2)...................  No.
                                                    in the account at the end of
                                                    business on the effective date of
                                                    the file.

[[Page 14839]]

 
                                                   This balance shall not be reduced by
                                                    float or holds. For CDs and time
                                                    deposits, the balance shall reflect
                                                    the principal balance plus any
                                                    interest paid and available for
                                                    withdrawal not already included in
                                                    the principal (do not include
                                                    accrued interest).
7. DP_Acc_Int....................................  Accrued interest. The amount of        Decimal (14,2)...................  No.
                                                    interest that has been earned but
                                                    not yet paid to the account as of
                                                    the date of the file.
8. DP_Total_PI...................................  Total of principal and accrued         Decimal (14,2)...................  No.
                                                    interest.
9. DP_Hold_Amount................................  Hold amount on the account.            Decimal (14,2)...................  No.
                                                   The available balance of the account
                                                    is reduced by the hold amount. It
                                                    has no impact on current balance
                                                    (ledger balance)
10. DP_Prepaid_Account_Flag......................  This field indicates a prepaid         Character (1)....................  No.
                                                    account with covered institution.
                                                    Enter ``Y'' if account is a prepaid
                                                    account, enter ``N'' otherwise.
11. CS_Govt_ID...................................  This field shall contain the ID        Variable Character...............  No.
                                                    number that identifies the entity
                                                    based on a government issued ID or
                                                    corporate filling. Populate as
                                                    follows:
                                                      --For a United States individual
                                                       SSN or TIN
                                                      --For a foreign national
                                                       individual--where a SSN or TIN
                                                       does not exist, a foreign
                                                       passport or other legal
                                                       identification number (e.g. Alien
                                                       Card)
                                                      --For a Non-Individual--the Tax
                                                       identification Number (TIN), or
                                                       other register entity number
12. CS_Govt_ID_Type..............................  The valid customer identification      Character (3)....................  No.
                                                    types:
                                                      --SSN--Social Security Number
                                                      --TIN--Tax Identification Number
                                                      --DL--Driver's License, issued by
                                                       a State or Territory of the
                                                       United States
                                                      --ML--Military ID
                                                      --PPT--Valid Passport
                                                      --AID--Alien Identification Card
                                                      --OTH--Other
13. CS_First_Name................................  Customer first name. Use only for the  Variable Character...............  No.
                                                    name of individuals and the primary
                                                    contact for entity.
14. CS_Middle_Name...............................  Customer middle name. Use only for     Variable Character...............  Yes.
                                                    the name of individuals and the
                                                    primary contact for entity.
15. CS_Last_Name.................................  Customer last name. Use only for the   Variable Character...............  No.
                                                    name of individuals and the primary
                                                    contact for entity.
16. CS_Name_Suffix...............................  Customer suffix.                       Variable Character...............  Yes.
17. CS_Entity_Name...............................  The registered name of the entity. Do  Variable Character...............  Yes.
                                                    not use this field if the customer
                                                    is an individual.
18. CS_Street_Add_Ln1............................  Street address line 1. The current     Variable Character...............  No.
                                                    account statement mailing address of
                                                    record.
19. CS_Street_Add_Ln2............................  Street address line 2. If available,   Variable Character...............  Yes.
                                                    the second address line.
20. CS_Street_Add_Ln3............................  Street address line 3. If available,   Variable Character...............  Yes.
                                                    the third address line.
21. CS_City......................................  The city associated with the mailing   Variable Character...............  Yes.
                                                    address.
22. CS_State.....................................  The state for United States addresses  Variable Character...............  Yes.
                                                    or state/province/county for
                                                    international addresses.
                                                      --For United States addresses use
                                                       a two-character state code
                                                       (official United States Postal
                                                       Service abbreviations) associated
                                                       with the mailing address.
                                                      --For international address follow
                                                       that country state code.
23. CS_ZIP.......................................  The Zip/Postal Code associated with    Variable Character...............  Yes.
                                                    the customer's mailing address.
                                                      --For United States zip codes, use
                                                       the United States Postal Service
                                                       ZIP+4 standard.
                                                      --For international zip codes
                                                       follow the standard format of
                                                       that country.
24. CS_Country...................................  The country associated with the        Variable Character...............  Yes.
                                                    mailing address. Provide the country
                                                    name or the standard International
                                                    Organization for Standardization
                                                    (ISO) country code.
25. CS_Telephone.................................  Customer telephone number. The         Variable Character...............  Yes.
                                                    telephone number on record for the
                                                    customer, including the country code
                                                    if not within the United States.
26. CS_Email.....................................  The email address on record for the    Variable Character...............  Yes.
                                                    customer.
27. CS_Outstanding_Debt_Flag.....................  This field indicates whether the       Character (1)....................  Yes.
                                                    customer has outstanding debt with
                                                    covered institution. This field may
                                                    be used to determine offsets. Enter
                                                    ``Y'' if customer has outstanding
                                                    debt with covered institutions,
                                                    enter ``N'' otherwise.
28. CS_Security_Pledge_Flag......................  This field indicates whether the CI    Character (1)....................  No.
                                                    has pledged securities to the
                                                    government entity, to cover any
                                                    shortfall in deposit insurance.
                                                    Enter ``Y'' if the government entity
                                                    has outstanding security pledge with
                                                    covered institutions, enter ``N''
                                                    otherwise. This field shall only be
                                                    used for Government customers.
29. DP_PT_Account_Flag...........................  This field indicates a pass-through    Character (1)....................  No.
                                                    account with covered institution.
                                                    Enter ``Y'' if account is a pass-
                                                    through with covered institutions,
                                                    enter ``N'' otherwise.
30. PT_Parent_Customer_ID........................  This field contains the unique         Variable Character...............  No.
                                                    identifier of the parent customer ID
                                                    who has the fiduciary responsibility
                                                    at the covered institution.

[[Page 14840]]

 
31. DP_PT_Trans_Flag.............................  This field indicates whether the       Character (1)....................  No.
                                                    fiduciary account has sub-accounts
                                                    that have transactional features.
                                                    Enter ``Y'' if account has
                                                    transactional features, enter ``N''
                                                    otherwise.
--------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix C to Part 370: Credit Balance Processing File Structure

    1. Data must be in an ASCII-flat, pipe delimited file.
    2. All files must contain 29 columns, even if the field name is 
blank or a null value is present.
    3. Do not include column headers or summary lines. The file must 
contain only credit balance records.

------------------------------------------------------------------------
                                                           Null value
     Col           Field name          Description      allowed?  (Y/N)
------------------------------------------------------------------------
01...........  ..................  ..................  Y.
02...........  Account Number....  Account number of   Y.
                                    account holding
                                    pending payments
                                    or other items
                                    for refunds of
                                    credit balances.
03...........  Customer Account    Assigned customer   N.
                Number.             account number.
04...........  ..................  ..................  Y.
05...........  Tax ID............  Taxpayer            N.
                                    identification
                                    number of the
                                    account holder.
06...........  Tax ID Code.......  Code indicates      N.
                                    corporate (TIN)
                                    or personal tax
                                    identification
                                    number (SSN).
07...........  Name..............  Full name of        N.
                                    credit balance
                                    owner.
08...........  ..................  ..................  Y.
09...........  Address 1.........  Address line 1 as   N.
                                    it appears on the
                                    credit balance
                                    owner's statement.
10...........  Address 2.........  Address line 2 as   Y.
                                    it appears on the
                                    credit balance
                                    owner's statement.
11...........  Address 3.........  Address line 3 as   Y.
                                    it appears on the
                                    credit balance
                                    owner's statement.
12...........  City..............  Address city as it  N.
                                    appears on the
                                    credit balance
                                    owner's statement.
13...........  State.............  State postal        Y. If Country,
                                    abbreviation as     column 12, is
                                    it appears on the   ``USA'', value
                                    credit balance      must be a valid
                                    owner's statement.  2-character US
                                                        postal code
                                                        (e.g., FL for
                                                        Florida, IA for
                                                        Iowa, etc.). If
                                                        Country, column
                                                        12, is not
                                                        ``USA'', value
                                                        must be null.
14...........  Zip/Postal........  The Zip/Postal      N.
                                    Code associated
                                    with the credit
                                    balance owner's
                                    address at it
                                    appears on the
                                    credit balance
                                    owner's
                                    statement--For
                                    United States zip
                                    codes, use the
                                    United States
                                    Postal Service
                                    ZIP+4 standard.
                                    For international
                                    zip codes follow
                                    that standard
                                    format of that
                                    country.
15...........  Country...........  Country code as it  N.
                                    appears on the
                                    credit balance
                                    owner's statement.
16...........  Province..........  Province as it      Y.
                                    appears on the
                                    credit balance
                                    owner's statement.
17...........  ..................  ..................  Y.
18...........  Credit Balance....  Credit balance of   N.
                                    the account as of
                                    the institution
                                    failure date.
19...........  ..................  ..................  Y.
20...........  Deposit Account     Account ownership   Y. Null value
                Ownership           category.           allowed
                Category.                               ownership if
                                                        account
                                                        ownership
                                                        category will be
                                                        assigned by the
                                                        covered
                                                        institution's
                                                        information
                                                        technology
                                                        system upon file
                                                        processing.
21...........  ..................  ..................  Y.
22...........  ..................  ..................  Y.
23...........  ..................  ..................  Y.
24...........  ..................  ..................  Y.
25...........  ..................  ..................  Y.
26...........  ..................  ..................  Y.
27...........  ..................  ..................  Y.
28...........  ..................  ..................  Y.
29...........  ..................  ..................  Y
------------------------------------------------------------------------


    By order of the Board of Directors. Federal Deposit Insurance 
Corporation.

    Dated at Washington, DC, on April 2, 2019.
Robert E. Feldman.
Executive Secretary.
[FR Doc. 2019-06713 Filed 4-10-19; 8:45 am]
 BILLING CODE 6714-01-P