tainable interest of each owner in a specifically designated custodial deposit, such interest may be determined on a fractional or percentage basis. This may be accomplished in any manner which indicates that where the funds

of an owner are commingled with

other funds held in custody and a portion thereof is placed on deposit in one or more insured banks, his interest in a custodial deposit in any one insured bank would represent at any given time the same fractional share as his share of the total commingled funds.

PART 331-INSURANCE OF TRUST FUNDS

§ 331.1 Claim by fiduciary bank for insured deposits of trust estates.

In the event of the closing of an insured bank for inability to meet the demands of its depositors, the claim for insured deposits made by a fiduciary bank or trust company which, in the exercise of its trust powers, had deposited trust funds therein will be determined as follows:

(a) Allocated funds of a trust estate. If trust funds of a particular trust estate are allocated by the fiduciary and deposited, the deposit with respect to such estate will be determined by ascertaining the amount of its funds allocated, deposited and remaining to the credit of the claimant as fiduciary in the closed insured bank.

(b) Interest of a trust estate in unallocated trust funds. If trust funds of a particular trust estate be mingled1 with trust funds of other trust estates and deposited by the fiduciary bank or trust company in one or more insured banks to the credit of the depositing bank or trust company as fiduciary, without allocation of specific amounts from the particular trust estate to an account in such bank or banks, the deposit with respect to such estate in any closed insured bank will be the amount which will bear the same ratio to all unallocated funds of the estate for which the fiduciary is accountable

"This section is not to be construed as an express or implied approval of such commingling of trust funds as may be involved in the maintaining of general trust accounts.

as the entire unallocated trust funds to the credit of the fiduciary bank or trust company in the closed insured bank will bear to the entire amount of such funds so deposited by the fiduciary in all depositories. 2

(c) Claims for funds of corporate trust determined on basis of allocation. The rule stated in paragraph (b) of this section will not be applied to funds of a bank or trust company held as fiduciary under a type of trust created to facilitate the issuance, distribution, or servicing of corporate bonds, debentures, or stock issues, commonly known as corporate trusts. The claim of the fiduciary bank with respect to deposits of such funds will be determined according to allocations of the funds of particular estates to particular deposit accounts.

(d) Insured deposit of a trust estate. In arriving at the total insured deposit of a fiduciary bank or trust company with respect to any trust estate, the deposit of such estate as determined in accordance with any paragraph of this section shall be combined with that determined under any other paragraph of this section and the insured deposit shall be the total less any amount thereof in excess of $100,000, except that trust deposits of the same beneficiary which qualify as pension or profit-sharing plans under section 401(d) or section 408(a) of the Internal Rvenue Code of 1954, as amended, and which are deposited in time or savings accounts, shall be separately insured to the maximum of $100,000 as provided in § 330.10.

(e) Claims for insured deposits of a trust classified as a corporation under § 330.5(b). With respect to any claim for insured deposits made by a fiduciary bank which holds or deposits trust funds belonging to a trust which is classified as a corporation under § 330.5(b) of this chapter, beneficial ownership of such deposits shall be attributed to such trust, and not to the individual beneficiaries thereof, for the purposes of Section 7(i) of the Federal Deposit Insurance Act.

2In determining claims under this paragraph, unallocated trust funds in the fiduciary bank will be included in the totals of such funds.

(Sec. 9, 64 Stat. 881; 12 U.S.C. 1819)

[15 FR 8644, Dec. 6, 1950, as amended at 32 FR, 10561, July 19, 1967; 42 FR 10312, Feb. 22, 1977; 43 FR 58081, Dec. 12, 1978; 45 FR 23646, Apr. 8, 1980]

PART 332-POWERS INCONSISTENT WITH PURPOSES OF FEDERAL DEPOSIT INSURANCE LAW

Sec.

332.1 Inconsistent powers. 332.2 Exercise prohibited.

§ 332.1 Inconsistent powers.

A State nonmember insured bank (except a District bank) which does not have any of the powers hereinafter enumerated, or which, although it has any such power, does not exercise the same, shall not hereafter exercise, take, or assume the power: (a) To do a surety business; (b) to insure the fidelity of others; (c) to engage in insuring, guaranteeing or certifying titles to real estate; or (d) to guarantee or become surety upon the obligations of others, except

§ 347.3(c)(1).1

as

Sec.

333.2 Change in general character of busi

ness.

INTERPRETATIONS

333.101 Prior consent not required. AUTHORITY: Secs. 6, 9, 64 Stat. 876, 881; 12 U.S.C. 1816, 1819.

REGULATIONS

§ 333.1 Classification of general character of business.

State nonmember insured banks are divided into five categories for the purpose of classifying their general character or type of business, 2 viz: commercial banks, banks and trust companies, savings banks (including mutual and stock), industrial banks, and cash depositories.

[15 FR 8644, Dec. 6, 1950]

§ 333.2 Change in general character of business.

No State nonmember insured bank (except a District bank) or branch

shall hereafter cause or permit any change to be made in the general character or type of business exercised by it after the effective date of this part without the prior written consent of the Corporation.

[15 FR 8644, Dec. 6, 1950]

INTERPRETATIONS

§ 333.101 Prior consent not required.

(a) The extension by any State nonmember insured bank of its business to include personal, character or installment loans, or the extension by an industrial bank of its business to include the business of a commercial bank, is not a change in the general character or type of business requiring the prior written consent of the Corporation.

(b) An insured State nonmember bank not exercising trust powers may act as trustee or custodian of Individual Retirement Accounts established pursuant to the Employee Retirement Income Security Act of 1974 and SelfEmployed Retirement Plans estab

2A bank's business may include two or more of the general classifications.

Sec.

335.305 Exchange certification. 335.306 When securities are deemed to be registered.

335.307 Exemptions for American depository receipts and certain foreign securities.

335.308 Reports of foreign private banks. 335.309a Form for registration of securities of a bank under section 12(b) or section 12(g) of the Securities Exchange Act of 1934 (Form F-1). 335.309b Form for registration of additional class of securities of a bank under section 12(b) or section 12(g) of the Securities Exchange Act of 1934 (Form F-10). 335.310 Requirement of annual reports and annual reports of predecessors.

335.311 Exception from requirement for annual report.

335.312 Form for annual report of bank (Form F-2).

335.320 Current reports.

335.321 Form for current report of a bank (Form F-3).

335.330 Quarterly reports.

335.331 Form for quarterly report of bank (Form F-4).

335.332 Report of foreign issuer to be filed under section 13(a) of the Securities Exchange Act of 1934 (Form F-4A).

335.340 Notification to national securities

Sec.

335.406 Exemption of certain acquisitions. 335.407 Acquisition statement to be filed under section 13(d) of the Securities Exchange Act of 1934 (Form F-11). 335.408 Short form acquisition/ownership

statement to be filed under section 13(d) or section 13(g) of the Securities Exchange Act of 1934 (Form F-11A). 335.410 Reports of directors, officers, and principal stockholders.

335.411 Exemption of certain transactions from section 16(b) of the Act.

335.412 Exemption of certain securities from section 16(c) of the Act.

335.413 Initial statement of beneficial ownership of equity securities (Form F-7). 335.414 Statement of changes in beneficial ownership of equity securities (Form F

8).

Subpart E-Tender Offers

335.501 Scope and definitions applicable to subpart E (the "tender offer regulations").

335.502 Date of commencement of a tender offer.

335.503 Filing and transmission of tender offer statement.

335.504 Dissemination of certain tender offers.

335.505 Dissemination of certain tender offers by the use of stockholder lists and security position listings.

335.506 Disclosure requirements with respect to tender offers.

335.507 Additional withdrawal rights. 335.508 Exemption from statutory pro rata requirement.

335.509 Solicitation/recommendation

statements with respect to certain tender offers.

335.510 Unlawful tender offer practices. 335.511 Position of subject bank with respect to a tender offer.

335.512 Tender offer statement to be filed under section 14(d)(1) of the Securities Exchange Act of 1934 (Form F-13). 335.513 Solicitation/recommendation

statement to be filed under section 14(d)(4) of the Securities Exchange Act of 1934 (Form F-12).

335.520 Purchase of securities by the bank and others.

335.530 Change in majority of directors.

Subpart F-Financial Statement Requirements

BASIC PRINCIPLES

335.601 Principles of financial reporting.

VERIFICATION

335.602 General rules.

amended (15 U.S.C. 78) (the "Act") and applies to all securities of an insured bank (including a foreign bank having an insured branch) ("foreign bank") which is neither a member of the Federal Reserve System nor a District bank (“bank”) that are subject to the registration requirements of section 12(b) or section 12(g) of the Act. The Office of Management and Budget has reviewed and approved the recordkeeping and reporting required by this part (OMB Control No. 30640030 which expires August 31, 1984).

[46 FR 25208, May 5, 1981, as amended at 46 FR 61642, Dec. 18, 1981]

For the purposes of this part, including all forms and instructions promulgated for use in connection herewith, unless the context otherwise requires:

(a) The terms "exchange", "director", "person", "security" and "equity security" have the meanings given them in section 3(a) of the Act.

(b) The term "affiliate" (whether referred to as an "affiliate" of, or a person "affiliated" with, a specified person) means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.

(c) The term "amount", when used with respect to securities, means the principal amount if relating to evidences of indebtedness, the number of shares if relating to shares, and the number of units if relating to any other kind of security.

(d) The term "associate", when used to indicate a relationship with any person, means:

(1) Any corporation or organization (other than the bank or a subsidiary of the bank) of which such person is an officer or partner or is, directly or indirectly, either alone or together with one or more members of his immediate family, the beneficial owner of 10 percent or more of any class of equity securities,

(2) Any trust or other estate in which such person has a substantial beneficial interest or as to which such person serves as a trustee or in a similar fiduciary capacity, and

(3) Any relative or spouse of such person or any relative of such spouse, who has the same home as such person or who is a director or officer of the bank or any of its parents or subsidiaries.

(e) The terms "beneficial ownership", "beneficially owned", and the like, when used with respect to the reporting of ownership of the bank's equity securities in any statement or report required by this part, shall include, in addition to direct and indirect beneficial ownership by the reporting person, ownership of such securities:

(1) By the spouse (except where legally separated) and minor children of such reporting person, and

(2) by any other relative of the reporting person who has the same home as such person.

(f) The term "charter" includes articles of incorporation, declarations of trust, articles of association or partnership, or any similar instrument, as amended, effecting (either with or without filing with any governmental agency) the organization or creation of an incorporated or unincorporated person.

common

(g) The term "control" (including the terms "controlling", "controlled by", and "under control with") means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise.

(h) The term "employee" does not include a director, trustee or officer.

(i) The term "equity capital accounts" means capital stock, surplus, undivided profits, and reserve for contingencies and other capital reserves.

(j) The term "50-percent-owned person", in relation to a specified person, means a person approximately 50 percent of whose outstanding voting securities is owned by the specified person either directly, or indirectly through one or more intermediaries.

(k) The term "fiscal year" means the annual accounting period or, if no closing date has been adopted, the calendar year ending on December 31.