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Can you summarize 12 CFR Part 307?
PROCEDURE AND RULES OF PRACTICE > CERTIFICATION OF ASSUMPTION OF DEPOSITS AND NOTIFICATION OF CHANGES OF INSURED STATUS
Short Summary
This document governs the certification process for the assumption of deposit liabilities by insured depository institutions. It requires the transferring institution to provide a written certification to the FDIC when all of its deposit liabilities are assumed by one or more insured depository institutions. The certification must be provided within 30 calendar days after the assumption takes effect and should include information such as the date of assumption and the method of termination of the transferring institution’s authority to engage in banking. The receipt of an accurate certification constitutes satisfactory evidence of the deposit assumption, and the insured status of the transferring institution terminates upon receipt of the certification. The document also outlines the circumstances where no certification is required, such as when the transferring institution is in default and placed under FDIC receivership. The Executive Secretary, upon request, will issue an order terminating the insured status of the transferring institution based on the receipt of satisfactory evidence of the assumption. No specific penalties are mentioned in this document. This document also governs the requirement for insured depository institutions to provide prior written notification to each of its depositors when the institution’s insured status is voluntarily terminated without its deposit liabilities being assumed by other insured depository institutions. The notice must be provided to depositors at their last known address of record on the institution’s books. The insured depository institution must obtain prior approval from the appropriate Regional Director of the FDIC’s Division of Supervision and Consumer Protection for the proposed notice. The notice should be provided on the official letterhead of the institution, bear the signature of a duly authorized officer, and may follow the form of the notice contained in Appendix B of this part, unless otherwise specified by the Regional Director. The FDIC may also require the institution to take additional actions deemed necessary and appropriate for the protection of depositors.
Whom does it apply to?
Insured depository institutions, as defined in section 3(c)(2) of the Federal Deposit Insurance Act (FDI Act) (12 U.S.C. 1813(c)(2))
What does it govern?
Certification process for the assumption of deposit liabilities by insured depository institutions and the requirement for insured depository institutions to provide prior written notification to depositors when their insured status is voluntarily terminated without deposit liabilities being assumed by other insured depository institutions
What are exemptions?
No certification is required when the transferring institution is in default and placed under FDIC receivership
What are the Penalties?
No specific penalties are mentioned in this document
Jurisdiction
U.S. Federal Government