dition by the factor for time and savings deposits for such semiannual period.

(ii) Single experience factor. The factor for each semiannual period shall be the percentage obtained by dividing the amount of all unposted credits on March 15, 1961 and thereafter on the first business day of February or August by the total deposits as shown on the books of the bank at the close of business on the same day. The bank shall determine, on March 15, 1961 and thereafter on the first business day of February or August until two years' experience has been obtained, the actual amount of all unposted credits. There shall be separately stated in each report of condition for addition to time and savings deposits for assessment purposes, the amount obtained by multiplying the amount of total deposits shown in the report of condition by the factor for such semiannual period.

(iii) Permanent experience factor. When two years' experience has been obtained under this paragraph, a new factor shall be computed and used for the ninth and subsequent reports of condition. This factor shall be the percentage obtained by dividing the aggregate amount of the unposted credits by the aggregate amount of the deposits, which were used in establishing each factor for the four preceding semiannual periods.

(2) Reporting bank may use either of the following experience factors in reporting unposted debits for deduction from the assessment base for two years:

(1) Separate experience factors for demand deposits and for time and savings deposits. The factor for each semiannual period:

(a) Demand deposits shall be the percentage obtained by dividing the amount of unposted debits on March 15, 1961 and thereafter on the first business day of February or August which are chargeable to demand deposits by the amount of total demand deposits as shown on the books of the bank at the close of business on the same day; and (b) Time and savings deposits shall be the percentage obtained by dividing the amount of unposted debits on March 15, 1961 and thereafter on the first business day of February or August which are chargeable to time and savings deposits by the amount of total time and savings deposits as shown on the books of the bank at the close of business on the same day.

The bank shall determine, on March 15, 1961 and thereafter on the first business day of February or August until two years' experience has been obtained, the actual amount of unposted debits segregated according to the type of account against which chargeable. There shall be separately stated in each report of condition for deduction from demand deposits for assessment purposes, the amount obtained by multiplying the amount of total demand deposits shown in the report of condition by the factor for demand deposits for such semiannual period, and for deduction from time and savings deposits for assessment purposes the amount obtained by multiplying the amount of total time and savings deposits shown in the report of condition by the factor for time and savings deposits for such semiannual period.

(ii) Single experience factor. The factor for the semiannual period shall be the percentage obtained by dividing the amount of all unposted debits on March 15, 1961 and thereafter on the first business day of February or August by the total deposits as shown on the books of the bank at the close of business on the same day. The bank shall determine, on March 15, 1961 and thereafter on the first business day of February or August until two years' experience has been obtained, the actual amount of all unposted debits. There shall be separately stated in each report of condition for deduction from demand deposits for assessment purposes, the amount obtained by multiplying the amount of total deposits shown in the report of condition by the factor for such semiannual period. If the amount of deductions so obtained exceeds demand deposits, the excess thereof may be deducted from time and savings deposits.

count or similar account or to segregate such unposted credits or debits between demand deposits and time and savings deposits in computing a factor or factors under this paragraph, such amounts may be ascertained in accordance with computation methods approved by the Corporation, upon application of the bank to the Corporation for permission to compute such amounts.

(h) Experience factors for newly insured banks. A newly insured bank may determine its experience factors in the same manner as that provided for banks with less than two years' experience in subparagraphs (1) and (2) of paragraph (g) of this section, except that in preparing its first report of condition for assessment purposes it shall determine the actual amounts of unposted credits, debits and deposits on a day designated by the Corporation, instead of on the first business day of February or August.

(i) Mergers, consolidations, deposit assumptions, and conversions. The continuing or resulting bank in a merger, consolidation or deposit assumption transaction, involving one or more banks which used an experience factor, shall use new experience factors based on the combined experience of the participating banks for the two-year period prior to such transaction or may establish a new factor or factors in accordance with paragraph (g) of this section. A bank resulting from the conversion of a bank shall continue to use the experience factors of the converted bank.

(j) Use of experience factor. Experience factors for the computation of unposted credits or unposted debits or both, once established by any bank and approved by the Corporation, must continue to be used for a period of at least three years and until a new factor or factors are established with the approval of the Corporation or until such time as the accounting methods of the bank are changed to show actual amounts thereof from day to day.

(k) Bank establishing new experience factors. Upon thirty days' written notice to the Corporation, a bank may establish new permanent factors in the manner provided in subparagraphs (1) and (2) of paragraph (g) of this section: Provided, however, That until such new permanent factors have been determined and approved in writing by the Corporation the bank shall continue to use its pre-established factors.

(1) Corporation requiring new experience factors. The Corporation may require a bank to establish new factors at any time as provided in subparagraphs (1) or (2), or both, of paragraph (g) of this section, and for this purpose may designate a day or days and a period or periods other than those specified therein for the determination of deposits and the actual amounts of unposted credits or unposted debits, or both. When such new factor or factors have been computed either by the bank or the Corporation and have been approved in writing by the Corporation, the bank shall use such new factor or factors for reports of condition filed thereafter.

(m) Notice to Corporation of changes in accounting methods. When a bank changes its accounting procedures from those used in the period in which its experience factors were established, in such manner as to increase or decrease the amount of unposted credits or unposted debits, it shall promptly give written notice to the Corporation of such change.

§ 327.2

Classification of deposits.

(a) The deposits to be reported in the reports of condition required to be made under section 7 of the Federal Deposit Insurance Act (12 U.S.C. 1817) shall be segregated between the time and savings deposits and the demand deposits.

(b) The time and savings deposits for the purpose of such reports and for the computation of assessments as provided in subsection (b) of section 7 of the Act (12 U.S.C. 1817) shall consist of:

(1) Time certificates of deposit evidenced by an instrument providing on its face that the amount of such deposit is payable on a certain date not less than thirty days after the date of deposit, at the expiration of a specified period not less than thirty days after the date of the instrument, or upon written notice to be given not less than thirty days before the date of payment;

(2) Time deposits, open account, being deposits, other than time certificates of deposit, with respect to which there is in force a written contract with the depositor that neither the whole nor any part of such deposit may be withdrawn prior to the date of maturity, which shall not be less than 30 days after the date of the deposit, or prior to the expiration of the period of notice which must be given by the depositor in writing

not less than 30 days in advance of withdrawals, including deposits such as Christmas club accounts and vacation club accounts, which are made under written contracts providing that no withdrawal shall be made until a certain number of periodic deposits have been made during a period of not less than 3 months, even though some of the deposits are made within 30 days from the end of such period; and

(3) Deposits accumulated for the payment of personal loans representing the aggregate of amounts which are accumulated by borrowers for payment of personal loans in accounts opened by borrowers in connection with personal loans (whether or not the bank maintains a separate personal loan department) and which, under contracts between the bank and the borrowers, do not immediately reduce the unpaid balances of the loans but are assigned or pledged to assure repayment of the personal loans at maturity, except that amounts received by the bank which under contracts with the borrowers constitute installment payments on personal loans and immediately reduce the unpaid balances of the loans even though recorded on separate accounts on the books of the bank shall not be reported as deposits; and

(4) Savings deposits being deposits: (i) Which consist of funds deposited to the credit of one or more individuals, or of a corporation, association, or other organization operated primarily for religious, philanthropic, charitable, educational, fraternal, or other similar purposes and not operated for profit, or in which the entire beneficial interest is held by one or more individuals or by such a corporation, association, or other organization; and

(ii) With respect to which the depositor is not required by the deposit contract but may at any time be required by the bank to give notice in writing of an in tended withdrawal not less than 30 days before such withdrawal is made and which is not payable on a specified date or at the expiration of a specified time after the date of deposit.

(c) Demand deposits shall consist of all deposits other than time and savings deposits.

[26 F.R. 287, Jan. 14, 1961, as amended at 31 F.R. 15795, Dec. 15, 1966]

§ 327.3 Payment of assessments by banks whose insured status has terminated.

(a) Assumed deposits of terminating bank become deposits of assuming bank. When the deposit liabilities of an insured bank are assumed by another insured bank the assumed deposits, for assessment purposes, shall be deposit liabilities of the assuming bank and shall cease to be deposit liabilities of the bank whose deposits are assumed from and after the effective date of the assumption.

(b) Payment of assessments by assuming bank on assumed deposits of terminating bank. Where the deposit liabilities of an insured bank are assumed by another insured bank and the assuming bank agrees to file the Certified Statement which the terminating bank is required to file, the filing of such Certified Statement and the payment of the assessment thereon by the assuming bank shall be deemed the acts of the terminating bank: Provided, That the requisite notice of assumption1 be given to the depositors of the terminating bank, and Provided further, That such Certified Statement shall be filed separately from that required to be filed by the assuming bank.

(c) Resumption of insured status before insurance of deposits ceases. If a bank whose insured status has been terminated under section 8(a) or (o) of the Federal Deposit Insurance Act, makes application to the Corporation, before the insurance of its deposits shall have ceased, to be permitted to continue or to resume its status as an insured bank and if the Board of Directors grants the application, the bank will be deemed for assessment purposes, to continue as an insured bank and must thereafter furnish Certified Statements and pay assessments as though its insured status had not been terminated. For the procedure to be followed in making such application, see § 303.7 of this chapter. [26 F.R. 287, Jan. 14, 1961, as amended at 32 F.R. 10561, July 19, 1967] § 327.4

Time of payment.

Each insured bank shall pay to the Corporation the amount of the semiannual assessment due to the Corporation, as shown on its Certified Statement,2 at

1 The requisite notice of assumption shall be the notice prescribed in § 307.3 of this chapter.

2 See §§ 304.1 and 304.3 of this chapter.

of deposits by insured banks and does not apply to advertisements published in foreign countries by insured banks which maintain offices in such foreign countries in which offices the deposits are not insured.

§ 328.1 Mandatory requirements with regard to the official sign and its display.

(a) Insured banks to display official sign. Each insured bank shall continuously display an official sign as hereinafter prescribed at each station or window where insured deposits are usually and normally received in its principal place of business and in all its branches: Provided, That no bank becoming an insured bank shall be required to display such official sign until twentyone (21) days after its first day of operation as an insured bank. The official sign may be displayed by any insured bank prior to the date display is required. Additional signs in other sizes, colors, or materials, incorporating the basic design of the official sign, may be displayed in other locations within an insured bank.

(b) Official sign. The official sign referred to in paragraph (a) of this section shall be of the following design:

The "symbol" of the Corporation shall be that portion of the official sign represented by the letters and the Corporation seal contained upon the sign.

(1) Any insured bank may procure official signs from the Corporation. Variations in size, color, and materials in the official sign, as described in the "Official Catalog of Insured Bank Signs"-No. ED1, may be procured at no charge from the Corporation by insured banks for official use. The Corporation shall furnish to banks an order blank for use in

procuring the official signs. Any bank which promptly, after receipt of the order blank, fills it in, executes it, and properly directs and forwards it to the Federal Deposit Insurance Corporation, Washington, D.C. 20429, shall not be deemed to have violated this regulation on account of not displaying an official sign, or signs, unless the bank shall omit to display such official sign or signs after receipt thereof.

(2) Official signs reflecting variations in color and materials and additional

signs reflecting variations in size, color, and materials may be procured by insured banks from commercial suppliers.

(c) Receipt of deposits at same teller's station or window as noninsured bank or institution. An insured bank is forbidden to receive deposits at any teller's station or window where any noninsured bank or institution receives deposits or similar liabilities.

(d) Required changes in official sign. The Corporation may require any insured bank, upon at least 30 days' written notice, to change the wording of its official signs in a manner deemed necessary for the protection of depositors or others.

§ 328.2

Mandatory requirements with regard to the official advertising statement and manner of use.

(a) Insured banks to include official advertising statement in all advertisements except as provided in paragraph (c) of this section. Each insured bank shall include the official advertising statement, prescribed in paragraph (b) of this section, in all of its advertisements except as provided in paragraph (c) of this section.

(1) An insured bank is not required to include the official advertising statement in its advertisements until thirty (30) days after its first day of operation as an insured bank.

(2) In cases where the Board of Directors of the Federal Deposit Insurance Corporation shall find the application to be meritorious, that there has been no neglect or willful violation in the observance of the section and that undue hardship will result by reason of its requirements, the Board of Directors may grant a temporary exemption from its provision to a particular bank upon its written application setting forth the facts. For the procedure to be followed in making such application see § 303.8 of this chapter.

(3) In cases where advertising copy not including the official advertising statement is on hand on the date the requirements of this section become operative, the insured bank may cause the official advertising statement to be included by use of a rubber stamp or otherwise.

(b) Official advertising statement. The official advertising statement shall be in substance as follows: "Member of

the Federal Deposit Insurance Corporation". The word "the" or the words "of the" may be omitted. The words "This bank is a" or the words "This institution is a" or the name of the insured bank followed by the words "is a" may be added before the word "member". The short title "Member of FDIC" or "Member FDIC" or a reproduction of the "symbol" may be used by insured banks at their option as the official advertising statement. The official advertising statement shall be of such size and print to be clearly legible. Where it is desired to use the "symbol" of the Corporation as the official advertising statement, and the "symbol" must be reduced to such proportions that the small lines of type and the Corporation seal therein are indistinct and illegible, the Corporation seal in the letter C and the two lines of small type may be blocked out or dropped.

(c) Types of advertisements which do not require the official advertising statement. The following is an enumeration of the types of advertisements which need not include the official advertising statement:

(1) Statements of condition and reports of condition of an insured bank which are required to be published by State or Federal law;

(2) Bank supplies such as stationery (except when used for circular letters), envelopes, deposit slips, checks, drafts, signature cards, deposit passbooks, certificates of deposit, etc.;

(3) Signs or plates in the banking office or attached to the building or buildings in which the banking offices are located;

(4) Listings in directories;

(5) Advertisements not setting forth the name of the insured bank;

(6) Display advertisements in bank directory, provided the name of the bank is listed on any page in the directory with a symbol or other descriptive matter indicating it is a member of the Federal Deposit Insurance Corporation;

(7) Joint or group advertisements of banking services where the names of insured banks and noninsured banks or institutions are listed and form a part of such advertisements;

(8) Advertisements by radio which do not exceed thirty (30) seconds in time; (9) Advertisements by television, other