FDIC Announces Final Rule for Prepaid Assessments: Exemption Applications Due by December 1st

November 13, 2009 at 1:53 pm Leave a comment

On November 12, 2009, the FDIC adopted a final rule amending the assessment regulations to require insured depository institutions to prepay their quarterly risk-based assessments for the fourth quarter of 2009, and for all of 2010, 2011, and 2012.  The pre-paid assessments are due on December 30, 2009, together with each financial institution’s risk-based assessment for the third quarter of 2009.

The FDIC anticipates that the amount most institutions will pay on December 30th will be substantially higher than typical quarterly deposit insurance assessments.   Accordinly, financial institutions should prepare now to make sure adequate funds are available to make the pay the assessment.

Other important aspects of the rule are as follows:

  • The amount of the prepaid assessment will be included on the certified statement invoices for the third quarter of 2009, which will be available on FDICconnect no later than December 15, 2009.
  • An institution can estimate its prepaid assessment byfollowing the directions posted here .
  • On its own initiative, the FDIC will exempt certain institutions from the prepayment requirement and will notify them no later than November 23, 2009.   Exempted institutions that do not wish to be exempted must apply by December 1, 2009, for withdrawal of the exemption.  Requests for withdrawal will be deemed denied unless the FDIC notifies the institution the request is granted by December 15, 2009.
  • In addition, an institution may apply for an exemption if the prepayment would significantly impair the institution’s liquidity or would otherwise create extraordinary hardship. 
  • Applications for exemptions must be submitted by December 1, 2009.
  • The application must contain a full explanation of the need for the exemption with supporting documentation.
  • Any application for exemption will be deemed denied unless the FDIC notifies the institution by December 15, 2009, that either the institution is exempt or the FDIC has postponed determination of the application.
  • Entry filed under: Uncategorized.

    Final Deadline to Implement Identity Theft Red Flags Rules for FTC-Regulated Entities is November 1, 2009 FTC Further Delays Enforcement of Red Flags Rule

    Leave a Reply

    Please log in using one of these methods to post your comment:

    WordPress.com Logo

    You are commenting using your WordPress.com account. Log Out / Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out / Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out / Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out / Change )

    Connecting to %s

    Trackback this post  |  Subscribe to the comments via RSS Feed


    Enter your email address to follow this blog and receive notifications of new posts by email.

    Produced & Maintained By

    Stinson Leonard Street Logo

    Categories

    A legal resource for Banking & Financial Services

    Archives


    %d bloggers like this: