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Highlights: With the enhancements to �౦��Ϸ���� connect in December 2004, institutions will be able to: 

• Attach or submit files with their applications to establish a branch, and relocate a branch office or main office. This enhancement will also allow for concurrent filing with participating State Banking Departments. This transaction is available to all �౦��Ϸ����-supervised institutions. 
• Submit applications for extensions of time. �౦��Ϸ���� regulations require an institution to file this application when seeking to extend the time period for completing a transaction or to fulfill a condition related to previously approved applications. This transaction will be available to all �౦��Ϸ����-supervised institutions. 
• Submit applications for prior �౦��Ϸ���� consent to reduce or retire capital stock or capital notes or debentures. This transaction will be available to all �౦��Ϸ����-supervised institutions. 
• Submit applications for golden parachute payments or excess nondiscriminatory severance plan payments. This transaction will be available to all �౦��Ϸ����-insured institutions. 
• Distribute Special Alerts for apparent fraudulent activities reported to the �౦��Ϸ����. Distribution includes the electronic transmission of images of fraudulent instruments, which have been previously unavailable in electronic format. This transaction will be available to all �౦��Ϸ����-insured institutions. 
• Securely exchange electronic pre-examination and examination files between the �౦��Ϸ���� and institutions and/or institution data servicers. This transaction will be available to all �౦��Ϸ����-supervised institutions. 
• Securely exchange files and information with the �౦��Ϸ����'s Consumer Response Center regarding consumer complaint investigations. This transaction will be available to all �౦��Ϸ����-supervised institutions. 

Continuation of FIL-135-2004 

Distribution: 
All Insured Banks and Savings Associations 

Suggested Routing: 
Chief Executive Officer 
Executive Officers 

Note: 
�౦��Ϸ���� Financial Institution Letters (FILs) may be accessed from the �౦��Ϸ����'s Web site at www.fdic.gov/news/financial-institution-letters/2004/index.html . 

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html . 

Paper copies of �౦��Ϸ���� FILs may be obtained through the �౦��Ϸ����'s Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200). 

�౦��Ϸ���� Expands Electronic Communication 
Seven New �౦��Ϸ���� connect Business Transactions Available 

In December 2004, the �౦��Ϸ���� will expand its e-government initiative with seven new business transactions on �౦��Ϸ���� connect . This includes the expansion of electronic application filings with participating State Banking Departments, additional online applications, distribution of Special Alerts, the ability to exchange information between the �౦��Ϸ���� and institutions during the examination process, and the ability to exchange files with the �౦��Ϸ����'s Consumer Response Center on consumer complaint investigations.

In December 2004, the Federal Deposit Insurance Corporation (�౦��Ϸ����) will expand its e-government initiative - �౦��Ϸ���� connect , a secure, transaction-based Web site for �౦��Ϸ����-insured institutions - with seven new business transactions. This includes the expansion of electronic application filings with participating State Banking Departments, additional online applications, distribution of Special Alerts, the ability to exchange information between the �౦��Ϸ���� and institutions during the examination process, and the ability for institutions to exchange files with the �౦��Ϸ����'s Consumer Response Center regarding consumer complaint investigations. 

The expansion of �౦��Ϸ���� connect demonstrates the �౦��Ϸ����'s commitment to:

• Comply with the Government Paperwork Elimination Act of 1998 (GPEA);
• Address President Bush's Management Agenda, which directs government agencies to establish electronic alternatives to current paper processes where feasible; and
• Provide increased customer service to �౦��Ϸ����-insured institutions by improving existing business processes to enable more efficient and effective communication.

The �౦��Ϸ���� is encouraging institutions that have not yet registered for �౦��Ϸ���� connect to do so as soon as possible so that they may benefit from the opportunities the system provides. Attached are an overview of the �౦��Ϸ���� connect registration process, which includes instructions for registration, and a �౦��Ϸ���� connect Designated Coordinator Registration Form, which includes instructions for approving and submitting the form. 

This current expansion effort supports the following new functionality and/or business transactions through �౦��Ϸ���� connect (attached is a list of all available transactions): 

• The Electronic Branch Application (EBA) became operational on December 19, 2003. This system can be used to submit an application to establish a domestic branch, relocate an existing branch or relocate the main office in accordance with Subpart C, Part 303, of the �౦��Ϸ���� Rules and Regulations. On December 21, 2004, EBA will also allow electronic filing with participating State Banking Departments (a list of participating departments is attached). In addition, EBA will support file attachment/submission. At this time, the system does not accept applications for merger transactions, establishing insured branches of foreign banks or foreign branches of domestic banks, interstate acquisitions of an individual branch or branches, or to provide notice of branch closings. EBA is available to all �౦��Ϸ����-supervised institutions.
• The Electronic Application for Extensions of Time (EXT) will become available on December 21, 2004. Institutions can use this system to seek the prior consent of the �౦��Ϸ���� for additional time to fulfill a condition required in an application approved by the �౦��Ϸ���� or to consummate a transaction that was approved by the �౦��Ϸ����. EXT will also distribute the filings to participating State Banking Departments. This system will also support file attachment/submission. This transaction will be available to all �౦��Ϸ����-supervised institutions.
• The Electronic Application to Reduce or Retire Capital Stock or Capital Debt (RRC) will become operational on December 21, 2004. This system can be used to submit an application in accordance with Section 18(i)(1) of the FDI Act, which requires an insured state nonmember bank to seek the prior consent of the �౦��Ϸ���� before it reduces the amount or retires any part of its common or preferred capital stock, or retires any part of its capital notes or debentures. RRC will distribute the filings to participating State Banking Departments. This system will also support file attachment/submission. This transaction will be available to all �౦��Ϸ����-supervised institutions.
• The Electronic Golden Parachute and Excess Severance Plan Payments Application (GPSP) will become operational on December 21, 2004. RRC can be used to submit an application pursuant to Section 18(k)(1) of the FDI Act and 12 CFR Part 359, which requires insured depository institutions and holding companies to seek prior consent before entering into contracts to pay and making golden parachute payments or excess nondiscriminatory severance plan payments. GPSP will distribute the filings to participating State Banking Departments. This system also supports file attachment/submission. This transaction will be available to all �౦��Ϸ����-insured institutions.
• The �౦��Ϸ���� currently distributes Special Alerts on apparent fraudulent activities. Special Alerts are posted on the �౦��Ϸ����'s Web site; however, Special Alert attachments, which often include copies of fraudulent and authentic financial instruments, are not posted on the Web site, to prevent them from being used to further perpetuate the fraudulent activity. However, at the request of numerous financial institutions, the �౦��Ϸ���� will begin distribution of Special Alerts and their attachments through �౦��Ϸ���� connect , allowing instantaneous and secure delivery. This transaction will be available on December 30, 2004, to all �౦��Ϸ����-insured institutions.
• To reduce examination burden on its institutions, the �౦��Ϸ���� currently requests varying amounts of information that is reviewed prior to the on-site portion of the examination. With the December 30, 2004, launch of the �౦��Ϸ���� connect Examination File Exchange Transaction , institutions and/or other affiliated parties, such as data servicers, will be able to exchange files securely with the �౦��Ϸ����. This transaction will be available to all �౦��Ϸ����-supervised institutions.
• In accordance with the Federal Trade Commission Act of 1975, the �౦��Ϸ����'s Consumer Response Center, which is part of the Division of Supervision and Consumer Protection, is required to track, investigate and respond to all written correspondence directed at �౦��Ϸ����-supervised institutions. The �౦��Ϸ���� connect Consumer Response Center Transaction will allow the �౦��Ϸ���� and institutions to complete this process electronically within �౦��Ϸ���� connect 's secure environment. This transaction will be available to all �౦��Ϸ����-supervised institutions on December 30, 2004.

For more information, please contact Gina Luckenbill, Information Management Analyst, Division of Supervision and Consumer Protection, at 202-898-3848 (e-mail, GLuckenbill@fdic.gov).

Michael J. Zamorski

Director

Division of Supervision and Consumer Protection