[Federal Register Volume 60, Number 248 (Wednesday, December 27, 1995)]
[Proposed Rules]
[Pages 66951-66952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31261]
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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 354
RIN 3064-AA92
Deposit Liabilities, Withdrawal of Proposed Rule
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Withdrawal of proposed rule.
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SUMMARY: The FDIC is withdrawing a proposal issued in 1988 prescribing
by regulation that certain liabilities of an insured depository
institution are deposit liabilities by general usage. The proposal
would have found that an institution's liability on certain obligations
issued by the institution as a means of obtaining funds constitutes a
deposit liability. The FDIC has decided to withdraw the proposed rule
because an FDIC policy statement recommends withdrawal of proposed
rules that have not been acted upon by the Board of Directors within
nine months.
DATES: This withdrawal of the proposed rule is made on December 27,
1995.
[[Page 66952]]
FOR FURTHER INFORMATION CONTACT: Jamey Basham, Counsel, (202) 898-
7265, Legal Division, FDIC, 550 17th Street, N.W., Washington, D.C.
20429.
SUPPLEMENTARY INFORMATION:
The Proposed Rule
On November 25, 1988, the FDIC published a proposed rule dealing
with the definition of the term ``deposit.'' 1 In that rulemaking,
the FDIC proposed that an insured depository institution's liability on
a promissory note, bond, acknowledgement of advance, or similar
obligation that is issued or undertaken by the institution as a means
of obtaining funds would be a deposit liability. The proposed rule
would have allowed a number of enumerated exceptions to the general
provision.
\1\ 53 FR 47723
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The proposal was issued because the FDIC had become aware over a
period of years that institutions were issuing obligations generically
known as ``deposit notes,'' which typically were general credit
obligations of the institution; were represented to customers as
deposits; were designated as deposits on the issuer's report of
condition; and for which deposit insurance assessments were paid. In
addition, institutions were issuing instruments generally known as
``bank notes,'' which were also general obligations of the institution
but were not otherwise treated as deposits by the institution and may
or may not have contained representations to the customer about the
instruments' deposit status. Although the FDIC believes that many of
these transactions fall within section 3(l)(1) of the Federal Deposit
Insurance Act (Act), 12 U.S.C. 1813(l)(1), defining what constitutes a
``deposit,'' the FDIC proposed to use its authority under section
3(l)(5) of the Act, 12 U.S.C. 1813(l)(5), to determine that certain
liabilities are deposits by general usage.
The Policy Statement
An FDIC Statement of Policy 2 provides that any regulation
upon which final action by the Board of Directors has not been taken
within nine months from the date the regulation was last proposed will
be formally withdrawn. If any proposed regulation is so withdrawn, the
Board of Directors reserves the right to begin the rulemaking process
anew (i.e., republish in the Federal Register, resolicit public
comments, etc.). The FDIC believes that withdrawal of the proposed rule
is appropriate because no action has been taken with respect to the
proposal for over nine months.
\2\ Statement of Policy on Development and Review of FDIC Rules
and Regulations, 44 FR 7288 (May 30, 1979).
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In consideration of the foregoing, the FDIC hereby withdraws
proposed new part 354 of title 12 of the Code of Federal Regulations.
By Order of the Board of Directors.
Dated at Washington, D.C., this 19th day of December, 1995.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Deputy Executive Secretary.
[FR Doc. 95-31261 Filed 12-26-95; 8:45 am]
BILLING CODE 6174-01-P
