FDIC Regs and Parts Exam Questions Verified Correct Answers Current Update (A+ Pass)
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FDIC Regs and Parts
Institution
FDIC Regs And Parts
FDIC Regs and Parts Exam Questions Verified Correct Answers Current Update (A+ Pass)
Part 303 Filing Procedures: Purpose? - Answers - Defines filing procedures for submitting to the FDIC
Part 303 Filing Procedures: - What banks are eligible for Expedited Application Processing? (all of the fo...
FDIC Regs and Parts Exam Questions
Verified Correct Answers Current Update
(A+ Pass)
Part 303 Filing Procedures: Purpose? - Answers -✔✔ Defines filing procedures for
submitting to the FDIC
Part 303 Filing Procedures: - What banks are eligible for Expedited Application
Processing? (all of the following have to apply) - Answers -✔✔ o Composite 1 or 2
o Compliance 1 or 2
o Satisfactory or better CRA
o Well-Capitalized
o No Enforcement Action
Part 303 Filing Procedures: - What constitutes as "troubled condition"? - Answers -✔✔
o Composite 4 or 5
o 8(a) - Deposit Insurance Termination
o 8 (b) or (c) - C&D to improve financial condition
o FDIC says so
Part 303 Filing Procedures: When must a bank give notice of adding/replacing any
Board member, executive officer, or changing responsibilities of EO to assume different
role? How far in advance must it be given? - Answers -✔✔ o A bank must give FDIC
notice at least 30 DAYS in advance if:
§ In "troubled condition"
§ Not in compliance with minimum capital requirements (adequately cap)
Part 303 Filing Procedures: - What 7 factors are considered for Applications by
Proposed or Newly Organized Banks? - Answers -✔✔ o Capital Structure - T1Cap of
>8% for 3 years. Initial capital amount should be in excess of $2MM after consideration
for any pre-operating expenses.
o Character of Management - MOST important factor (followed by capital)
o Earnings Prospects
o Financial History and Condition
o Corporate Powers
o Needs of the Community
o Risk Presented to the DIF à only factor unique to applications for newly organized
banks. The other 6 are considered for most other applications.
Part 303 Filing Procedures: What is the minimum fidelity coverage for new banks? -
Answers -✔✔ $1MM
,Part 303 Filing procedures: What is the minimum level of directors for a new bank? -
Answers -✔✔ 5
Part 303 Filing Procedures: When is a change in control application needed? - Answers
-✔✔ o Whenever a person/entity seeks to acquire control (25% or more of stock)
o Must apply 60 days in advance
o Include completed and signed Financial Report and Biography
o Factors Considered by FDIC:
§ Competition
§ Competence
§ DIF Risk
§ Experience/Integrity
§ Financial Condition
§ Failure to provide info
§ Monopoly
Part 303 Filing Procedures: What is included in a brokered deposit waiver? - Answers -
✔✔ o Period (time waiver is requested - 2-year max.)
o Statement of Policy (governing use)
o Current & Prospective Volumes
o Cost Structure
o Solicitation & Sources
o MIS Overseeing
o Balance Sheet & IS
o Reasons
Part 303 Filing Procedures: When is a notice of changes in Executive Officers
Required? - Answers -✔✔ 1. charted for less than 2 years
2. change in control within last 2 years
3, not in compliance with capital requirement
4. in troubled condition.
Part 307 Notification of Acquiring Deposits: when and when isnt a certification required?
- Answers -✔✔ Need a certification whenever all of a bank's deposits are assumed by
one or more banks through merger, consolidation, contract, ect. No certification required
if acquired deposits from defaulted bank
Part 307 Notification of Acquiring Deposits: How many days required to file notif ation
after acquisition? - Answers -✔✔ 30 days
Part 307 Notification of Acquiring Deposits: - Notice to Depositors when insured status
of a bank is voluntarily terminated and deposits are not assumed required before
insured status is terminated. - Answers -✔✔
, Part 309: who is permitted to receive exempt records (ROE)? - Answers -✔✔ 1.
Directors
2. Officers
3. Agents of the bank
Includes accountant or accountign firm that performs an audit of the bank
4. BHC or majority shareholder (>50% voting stock)
5. Employees of the bank necessary for purposes of their employment
6. Accountants and attorneys acting as bank employees as it relates to their scope of
employment
Part 309 Disclosure of Information: Should exempt records (ROE) be shared with the
bank's insurance carriers? - Answers -✔✔ No (Manual Fidelity Section)
Part 311 FDIC's Board Meetings and the Public: What is the purpose of the act? -
Answers -✔✔ To implement the "Government in the Sunshine Act" to provide the
public with as much information as possible in the decision making process of
government agencies.
Part 311 FDIC's Board Meetings and the Public: All FDIC Board Meetings are open to
the public unless: - Answers -✔✔ 1. Matters discussed are to be kept secret in interest
of national defense or foreign policy or under other similar executive order.
2. relate solely to internal personnel rules and practices
3. discloses trade secrets or privileged/confidential practices
4. involves accusing any person of a crime
5. invasion of personal privacy.
Part 311 FDIC's Board Meetings and the Public: how many days before hand does the
FDIC make a public announcement? - Answers -✔✔ 7 days
Part 323 Appraisals: Purpose? - Answers -✔✔
Part 323 Appraisals: - Answers -✔✔ Requires RE appraisals used in federally related
transactions be performed.
o Identifies which RE related transactions require the services of an appraiser
o Prescribes categories by which a state certified or state licensed appraiser
o Prescribes minimum standards for performance of RE appraisals
Part 323 Appraisals: Define Market Value - Answers -✔✔ Most probable price a
property should bring in a competitive and open market under all conditions required to
a fair sale.
§ Buyer and seller are motivated
§ Both parties are well informed or well advices, acting in their own best interests
§ Reasonable time is allowed for exposure in the open market
§ Payment is made in US denominated currency
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