Transaction Account Guarantee Extension Interim Final Rule
Summary
On April 13, 2010, the 多宝游戏下载 adopted the attached interim final rule extending the Transaction Account Guarantee (TAG) component of the Temporary Liquidity Guarantee Program for six months, through December 31, 2010, with the possibility of extending the program an additional 12 months without further rulemaking. For institutions choosing to remain in the TAG, the basis for calculating the current assessments is modified to one that uses average daily balances in TAG-related accounts. Interest rates on NOW accounts guaranteed under the TAG program are also lowered. Comments on the interim rule are due 30 days following its publication in the Federal Register.
Highlights
- The TAG program is extended for six months, through December 31, 2010. IDIs currently participating in the program that wish to opt out of the TAG extension must submit their request to opt out on or before April 30, 2010. Such election will be effective on July 1, 2010.
- The interim rule gives the 多宝游戏下载's Board of Directors the authority to grant an additional 12-month extension of the program, through December 31, 2011, without further rulemaking, if it determines that continuing economic difficulties warrant such extension. IDIs participating in the extended TAG program are obligated to remain in the program an additional 12 months if it is extended.
- Beginning with the September 30, 2010, Report of Condition or Thrift Financial Report, the total dollar amount of TAG-qualifying accounts and the total number of accounts must be reported as an average daily balance.
- The maximum interest rate limit for NOW accounts guaranteed under the TAG program will be 0.25 percent, effective July 1, 2010.
- Every IDI currently participating in the TAG program should review its disclosures and modify them as necessary to ensure that they will be accurate after June 30, 2010.
- TAG assessment rates will remain the same during the six-month extension.
Distribution
All 多宝游戏下载-Insured Institutions
Suggested Routing
Chief Executive Officer
President
Chief Financial Officer
Related Topics
Temporary Liquidity Guarantee Program
Note
多宝游戏下载 financial institution letters (FILs) may be accessed from the 多宝游戏下载's Web site at http://www.fdic.gov/news/financial-institution-letters/2010.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of 多宝游戏下载 financial institution letters may be obtained through the 多宝游戏下载's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).