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This final rule amends the FDIC’s regulations covering filing procedures and delegations of authority, to clarify the meaning of the phrase ‘‘engaged in the business of receiving deposits other than trust funds’’ in the Federal Deposit Insurance Act. Under the rule, an insured depository institution must maintain one or more non-trust deposit accounts in the aggregate amount of $500,000 in order to be ‘‘engaged in the business of receiving deposits other than trust funds’’. Each newly insured depository institution will be deemed to be ‘‘engaged in the business of receiving deposits other than trust funds’’ for a period of one year from the date it opens for business. If a newly insured depository institution fails to achieve the minimum deposit standard by the end of that time period, it will be subject to a determination by the FDIC that the institution is not ‘‘engaged in the business of receiving deposits other than trust funds’’, and to appropriate administrative action to terminate its insured status. Similarly, each insured depository institution, other than a newly insured depository institution, that is below the minimum deposit standard on two consecutive call report dates will be subject to a determination by the FDIC that the institution is not ‘‘engaged in the business of receiving deposits other than trust funds’’, and to appropriate administrative action to terminate its insured status. The final rule also clarifies that the maintenance of one or more non-trust deposit accounts in the aggregate amount of $500,000 is not a ‘‘safe harbor’’, but rather the minimum standard in order for an institution to be considered ‘‘engaged in the business of receiving deposits other than trust funds’’ under the Federal Deposit Insurance Act.
