Dividends on Form 73," which is furnished by the Corporation to all insured State nonmember banks (except District banks) and which may be obtained on request from the Division of Research.

(0) Form 73 (Savings): Report of income and dividends (from mutual savings banks). Form 73 (Savings) is substantially the same as Form 73 and should be used by mutual savings banks.

(p) Form 89: Summary of Deposits. Report of summary of deposits is a report of the number of deposit accounts and the amount of deposits in such accounts grouped by size of account and type of deposit. Summary of deposit reports must be prepared in accordance with instructions contained in the pamphlet entitled "Instructions for preparation of Form 89," which is furnished by the Corporation to all insured banks and which may be obtained on request from the Division of Research.

(q) Form 545: Certified statement (for banks other than mutual savings). A form 545 must be submitted on or before January 31 and July 31 of each year by every insured bank, except any newly insured banks which must submit their first certified statement on Form 645, and any mutual savings banks which must use Form 545 (Savings). Form 545 shows the deposit liabilities, less authorized deductions, reported in two reports of condition in each semiannual assessment period. The form will show the computation of the assessment base and the amount of the assessment due the Corporation. It must be prepared in duplicate, certified by the president of the bank or any other officer designated by its board of directors, and an original must be forwarded to the fiscal agent. The duplicate copy should be retained in the bank's file.1 The forms are mailed to all insured banks each six months in ample time to permit com

1 Section 7 (b) (6) of the Federal Deposit Insurance Act, which relates to assessment base deductions, provides, in part, as follows: "Each insured bank, as a condition to the right to make any such deduction in determining its assessment base, shall maintain such records as will readily permit verification of the correctness of its assessment base. No insured bank shall be required to retain such records for such purpose for a period in excess of five years from the date of the filing of any certified statement, except

pliance with the law, but if not received on or before January 1 or July 1, they should be obtained from the fiscal agent. Any questions in respect to such forms should be directed to the fiscal agent.

(r) Form 545 (Savings): Certified statement (for mutual savings banks). This form is substantially the same as Form 545 and should be used by mutual savings banks.

(s) Form 645: First certified statement (for banks other than mutual savings). The first certified statement, Form 645, must be submitted on or before July 31 or January 31 following the semiannual period in which the bank began operation as an insured bank. The form shows the deposit liabilities, less authorized deductions, as provided by law, on the last date within such period for which it was required to submit a report of condition or, if such bank became an insured bank after the last date in such period for which a report of condition was required, such bank shall make a report of condition as of the last day of such semiannual period, and shall file with the Corporation a certified statement showing, as its assessment base for such period, its assessment base for the date of such special report. The form will show the computation of the assessment base and the amount of the assessment due the Corporation. It must be prepared in duplicate, certified by the president of the bank or any other officer designated by its board of directors, and the original must be forwarded to the fiscal agent. The duplicate copy should be retained in the bank's file.1 The forms will be mailed by the fiscal agent to newly insured banks with appropriate instructions for their preparation.

(t) Form 645 (Savings): First certified statement (for mutual savings banks). This form is substantially the same as Form 645 and should be used by mutual savings banks.

(u) Form 845: Final certified statement-for use by an insured bank (except mutual savings banks) whose deposits are assumed by another insured bank. This statement, Form 845, shows

that when there is a dispute between the insured bank and the Corporation over the amount of any assessment the bank shall retain such records until final determination of the issue."

the deposit liabilities, less authorized deductions, of the bank in the report or reports of condition prior to the assumption date. Form 845, accompanied by appropriate letter of explanation and instructions, will be mailed by the fiscal agent to each insured bank whose deposit liabilities are assumed by another insured bank. The form must be prepared in duplicate, certified by the president of the bank or any other officer designated by its board of directors, and the original must be forwarded to the fiscal agent. The duplicate copy should be retained in the bank's files.1 If the deposits of the liquidating bank are assumed by a newly insured bank, the liquidating bank is not required to file Form 845 or to pay any assessments upon the deposits so assumed after the semiannual period in which the assumption takes effect.

(v) Form 845 (Savings): Final certified statement (for mutual savings banks). This form is substantially the same as Form 845 and should be used by mutual savings banks.

(w) Form 845A: Final certified statement for use of an insured bank (other than mutual savings banks) whose deposit liabilities are assumed by another insured operating bank. (To be used when the assuming bank executes the certified statement for the bank whose deposits were assumed.) Form 845A may be substituted for Form 845 described in paragraph (u) of this section if the assuming bank is executing the certified statement for the bank whose deposit liabilities were assumed. Form 845A is prepared in the same manner as Form 845 except the certification is executed by an official of the assuming bank.

(x) Form 845A (Savings): Final certified statement-for use of an insured mutual savings bank whose deposit liabilities are assumed by another insured operating bank. (To be used when the assuming bank executes the certified statement for the bank whose deposits were assumed.) Form 845A (Savings) may be substituted for Form 845 (Savings) described in paragraph (v) of this section if the assuming bank is executing the certified statement for the bank whose deposit liabilities were assumed. Form 845A (Savings) is prepared in the same manner as Form 845 (Savings) except the certification is executed by an official of the assuming bank.

(y) Amended and corrected certified statements. Forms for use in amending

or correcting previously submitted certified statements are identical in number and form with Forms 545, 645, 845, 845A (for other than mutual savings banks), 545 (Savings), 645 (Savings), 845 (Savings), and 845A (Savings) described above, except the title of the forms contains the additional word "Amended" or "Corrected." These forms may be obtained on request from the fiscal agent.

PART 305-PAYMENT OF INSURED DEPOSITS

§ 305.1 Payment of insured deposits in closed banks.

When an insured bank closes under circumstances requiring the Corporation to make payment of the insured deposits1 therein, as prescribed by law,' the Board of Directors appoints one or more Claim Agents with power and authority as provided by law who maintain a temporary office at the site of the closed bank for the purpose of receiving claims for insured deposits and making payment thereof as soon as possible in accordance with applicable law. Claimants for insured deposits are required to submit to such Claim Agents appropriate proofs of claim, in form and manner prescribed by law or by the Board of Directors to deliver up any pass book or other record issued by the bank evidencing the insured deposit, to assign their claims for insured deposits to the Corporation to the extent required by law, and to furnish proper identification. The claimant is required to make proof thereof to the satisfaction of the Claim Agent. Disputed claims which cannot be adjusted in the field are referred to the Chief of the Division of Liquidation for determination and when satisfactory disposition cannot be so made, may be referred to the Board of Directors for appropriate action. In cases where the Corporation is not satisfied as to the validity of a claim for an insured deposit, it may require the final determination of a court of competent jurisdiction before paying such claim. The Corporation is authorized to make payment of the insured deposits in cash or by making

1 Defined in section 3 (m) of the Federal Deposit Insurance Act.

2 See section 11 of the Federal Deposit Insurance Act, particularly subsections (b), (f) and (g).

3 See section 10(b) of the Federal Deposit Insurance Act.

available to each depositor a transferred deposit in a "new bank," which is insured, in the same community or in another insured bank in an amount equal to the insured deposit of such depositor. Any such transferred deposit would be a demand deposit in the absence of an agreement between the depositor and transferee bank providing for a time or savings deposit. It is the policy of the Corporation to make such payment by issuing its check for the amount of the insured deposit. In making such payments, the Corporation exercises its statutory authority to withhold payment of such portion of the insured deposit of any depositor as may be required to provide for the payment of any liability of such depositor as a stockholder of the bank, or of any liability of such depositor to the closed bank or its receiver, which is not offset against a claim due from the bank, pending the determination and payment of such liability by the depositor or any other person liable therefor.

(Sec. 9, 64 Stat. 881; 12 U.S.C. 1819) [15 F.R. 8632, Dec. 6, 1950, as amended at 19 F.R. 1666, Mar. 27, 1954; 32 F.R. 9638, July 4, 1967]

PART 306 RECEIVERSHIPS AND LIQUIDATIONS

Sec. 306.1 Liquidation of assets acquired through loans and purchases and deposits.

306.2

National bank receiverships. 306.3 State bank receiverships.

AUTHORITY: The provisions of this Part 306 issued under sec. 9, 64 Stat. 881; 12 U.S.C. 1819.

§ 306.1 Liquidation of assets acquired through loans and purchases and deposits.

Assets acquired by the Corporation pursuant to contracts of loan or purchase or deposits with insured banks or receivers of closed insured banks, in accordance with the provisions of the Federal Deposit Insurance Act, are liquidated by the Corporation through a liquidator appointed in the same manner as in the case of a national bank receivership (see § 306.2). The liquidator takes possession of the assets and usually maintains a liquidating office in the vicinity of the bank from which the assets were acquired. The liquidator receives collections of debts and claims

• See section 11(h)-(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1821 (h)–(1).

due, effects sales of assets, compositions, and compromises of debts, and otherwise enforces claims and obligations due and owing and arising out of the liquidation. Proposals for the sale of assets, compositions and compromises, and extensions or renewals of debts due or other contracts, are transmitted by the liquidator to the Chief of the Division of Liquidation and are in turn submitted to the Committee on Liquidations, Loans, and Purchases of Assets and to the Board of Directors of the Corporation for approval. Expenses of administration, proposals for leasing, engaging brokers or others, independent contractors, and advances to protect assets are likewise submitted by the liquidator for transmission with the recommendation of the Division of Liquidation to the Committee on Liquidations, Loans, and Purchases of Assets and to the Board of Directors of the Corporation for approval. In general, the liquidator is the local representative of the Corporation and proceeds in compliance with the manual of instructions of the Division of Liquidation to liquidate the assets so acquired. [15 F.R. 8632, Dec. 6, 1950, as amended at 19 F.R. 1666, Mar. 27, 1954]

§ 306.2 National bank receiverships.

Whenever the Comptroller of the Currency appoints a receiver (other than conservator) of a national or District bank, it must be the Corporation. Immediately upon appointment the Corporation takes possession of the records, assets, and affairs of the bank through one of its agents, usually a liquidator, appointed to represent the Corporation in that receivership. If possession is taken by an agent other than a liquidator, the liquidator, when appointed, is substituted for the agent. The Board of Directors of the Corporation appoints the agent to take possession, the liquidator, such assistant liquidators, and personnel, as may be necessary, as well as an attorney to furnish the Corporation as receiver with such legal assistance as may be required in the administration of the receivership. The liquidator as local representative of the Corporation proceeds, in compliance with the manual of instructions of the Division of Liquidation, and in conformity with the applicable provisions of the National Bank Act and the Federal Deposit Insurance Act, to liquidate the assets, receive claims of depositors (claiming in

excess of $20,000 per depositors)1 and other creditors, pay the expenses of administration, distribute the proceeds of such liquidation, and otherwise wind up the affairs of the bank subject to the control of the Board of Directors of the Corporation and under the supervision of the Chief of the Division of Liquidation. After notice by advertisement pursuant to law, depositors having claims in excess of $20,000 per depositor, and other creditors, are permitted to file claims with the liquidator, who transmits such claims to the Division of Liquidation for allowance, classification, and deduction by way of set-offs or counterclaims. Such claims are filed on blanks prescribed from time to time by the Corporation and when allowed are evidenced by receiver's certificates issued by the Division of Liquidation on such forms as are from time to time prescribed by the Corporation. The liquidator receives collections of debts and claims due to the receivership, effects sales of assets, compositions and compromises of debts, and otherwise enforces claims and obligations, owing to the receivership. All proceeds of the liquidation are segregated and are kept separate and apart from the general and other funds of the Corporation. Proposals for the sale of assets, compositions, and compromises are transmitted by the liquidator to the Division of Liquidation, which in turn submits them to the Committee on Liquidations, Loans, and Purchases of Assets and to the Board of Directors of the Corporation for approval; and upon such approval the liquidator, through local counsel, presents the proposals to a court of competent jurisdiction for authorization as provided by 12 U.S.C. 192. Expenses of administration are similarly submitted by the Division of Liquidation for approval by the Board of Directors. Attorney fees are submitted by the Legal Division to the Special Committee for recommendation to and determination by the Board of Directors. Proposals for leasing, engaging brokers or others, independent contractors, extensions or renewals of debts due the receivership, or other contracts, and advances to protect assets, are submitted by

1 Claims for insured deposits up to $20,000 for each depositor are filed with a Claim Agent, appointed by the Board of Directors of the Corporation, who represents the Corporation in its capacity as insurer of deposit (see Part 305 of this subchapter).

the liquidator for transmission and recommendation by the Division of Liquidation to the Committee on Liquidations, Loans, and Purchases of Assets and to the Board of Directors for authorization. When sufficient funds have been realized from the liquidation to justify payment of a dividend to creditors, the Division of Liquidation submits a recommendation to the Board of Directors, which orders a ratable dividend to be paid. Dividend checks are drawn by the Division of Liquidation on receivership funds and transmitted to the liquidator for delivery to the claimants who are required to present their receiver's certificates for endorsement thereon and to execute receipts for such dividends. If such claims are paid in full with interest, receivership certificates must be surrendered. If surplus assets remain after payment of dividends to creditors equal to the principal of their respective claims plus interest thereon, a meeting of the shareholders is called pursuant to the provisions of 12 U.S.C. 197, for the purpose of determining whether a shareholders' agent shall be elected or the receivership continued. If the shareholders elect to have a shareholders' agent appointed, then the assets are assigned and delivered to the shareholders' agent upon compliance with the requirements of 12 U.S.C. 197.

[15 F.R. 8632, Dec. 6, 1950, as amended at 19 F.R. 1666, Mar. 27, 1954; 35 F.R. 460, Jan. 14, 1970]

§ 306.3

State bank receiverships.

When the Corporation accepts appointment as receiver of an insured State bank the board of directors appoints an agent or liquidator to take possession, on behalf of the Corporation, of the assets, books, and records, and to administer the affairs, of the closed bank. The liquidator as the local representative of the Corporation proceeds, in accordance with the provisions of the applicable law of the State in which the bank is located, and in conformity with the manual of instructions of the Division of Liquidation, to administer the receivership, subject to the control of the board of directors and under the supervision of the Division of Liquidation.

[15 F.R. 8633, Dec. 6, 1950, as amended at 19 F.R. 1666, Mar. 27, 1954]

2 Pursuant to the provisions of section 11(e) of the Federal Deposit Insurance Act.

PART 307-VOLUNTARY TERMINATION OF INSURED STATUS

Sec. 307.1 Steps to be taken and records to be furnished the Corporation by an insured nonmember bank in liquidation.

307.2 Steps to be taken and records to be furnished the Corporation by a member bank in liquidation (both State and national).

307.3 Steps to be taken and records to be furnished the Corporation where deposits are assumed by another insured bank.

AUTHORITY: The provisions of this Part 307 issued under secs. 7-9, 64 Stat. 876, 879, 881; 12 U.S.C. 1817-1819.

§ 307.1

Steps to be taken and records to be furnished the Corporation by an insured nonmember bank in liquidation.

(a) Whenever a nonmember bank goes into liquidation and its insured status has not been terminated by the board 1 and its deposit liabilities are not assumed by another insured bank, it shall terminate its status as an insured bank in accordance with the provisions of section 8(a) of the Federal Deposit Insurance Act.2 To effect such termination the bank shall adopt a resolution in form substantially as follows:

Resolved: (1) That the status of the

1 Board means board of directors of the Federal Deposit Insurance Corporation.

2 Section 8(a) of the Federal Deposit Insurance Act provides, in part, as follows: "Any insured bank (except a national member bank or State member bank) may, upon not less than ninety days' written notice to the Corporation, terminate its status as an insured bank. * * * After the termination of the insured status of any bank ** * the insured deposits of each depositor in the bank on the date of such termination, less all subsequent withdrawals from any deposits of such depositor, shall continue for a period of two years to be insured, and the bank shall continue to pay to the Corporation assessments as in the case of an insured bank during such period * * [Italics supplied.]

3 If the bank desires to fix a later date of termination, it may do so as the law prescribes only the minimum notice period which is ninety (90 days.

hereby directed to immediately forward a certified copy of this resolution to the Federal Deposit Insurance Corporation, Washington D.C., 20429, which shall constitute the notice of termination prescribed in section 8(a) of that Act

Upon receipt of a certified copy of the aforesaid resolution the Corporation will promptly advise the bank of the date of the receipt thereof, and confirm the date of the termination of its insured status.

Thereupon, and prior to the termination date, the bank shall give notice to its depositors of the termination of its insured status. Such notice shall be (1) mailed to each depositor at his last address of record as shown upon the books of the bank, (2) published in not less than two issues of a local newspaper of general circulation, and (3) in form substantially as follows: