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140 0 0 140 360 14480 Tm (1. Basis of Accounting: The FDI Act authorizes the 多宝游戏下载, as receiver for a failed insured depository institution)Tj
140 0 0 140 360 14280 Tm (\(''receivership''\), to administer and conclude the affairs of such institution. Financial statement presentations)Tj
140 0 0 140 360 14080 Tm (are based on the premise that the assets of the receivership will be liquidated and proceeds distributed to the )Tj
140 0 0 140 360 13880 Tm (institution's creditors over time as provided by applicable laws and regulations. While a receivership's average )Tj
140 0 0 140 360 13680 Tm (lifespan is three to nine years, some may require longer time frames to conclude. At the onset of a receivership, )Tj
140 0 0 140 360 13480 Tm (the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The )Tj
140 0 0 140 360 13280 Tm (assets and liabilities of the failed institution are adjusted to remove all estimated losses, accruals, and )Tj
140 0 0 140 360 13080 Tm (deferrals. These adjustments include loss allowances; partial write downs; prepaid, deferred or accrued expenses )Tj
140 0 0 140 360 12880 Tm (having no recovery value; and accrued or deferred income. Restated balances are shown under the Inception )Tj
140 0 0 140 360 12680 Tm (Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, 多宝游戏下载's liquidation )Tj
140 0 0 140 360 12480 Tm (valuation and measurement practices, as described more fully in the paragraphs that follow, are adopted for all )Tj
140 0 0 140 360 12280 Tm (assets and liabilities. In general, transactions are recorded when cash is received or disbursed. Accruals may )Tj
140 0 0 140 360 12080 Tm (be used when prospective cash flows are probable and reasonably estimated.)Tj
140 0 0 140 360 11680 Tm (2. Use of Estimates: As appropriate, estimates of asset values, liabilities, revenues, and expenses are reflected)Tj
140 0 0 140 360 11480 Tm (in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the )Tj
140 0 0 140 360 11280 Tm (estimation process. As with the use of all estimates, actual results may differ.)Tj
140 0 0 140 360 10880 Tm (3. Receivables: The line item Receivable Due from 多宝游戏下载 reflects the amount owed by 多宝游戏下载 Corporate to a )Tj
140 0 0 140 360 10680 Tm (receivership as a result of the net effect of the initial resolution transactions where the amount of deposits )Tj
140 0 0 140 360 10480 Tm (transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satisfied when a )Tj
140 0 0 140 360 10280 Tm (receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable )Tj
140 0 0 140 360 10080 Tm (against the 多宝游戏下载's subrogated deposit liability claim. )Tj
140 0 0 140 360 9680 Tm (The line item Due from Acquiring Institution and Other Receivable typically includes the net effect of post-closing)Tj
140 0 0 140 360 9480 Tm (asset and liability adjustments between the receivership and the acquiring institution. This receivable)Tj
140 0 0 140 360 9280 Tm (is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared-loss )Tj
140 0 0 140 360 9080 Tm (arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement, respectively. )Tj
140 0 0 140 360 8680 Tm (4. Valuation of Assets/Loss Allowances: Assets of a receivership are shown at values representing cash on deposit)Tj
140 0 0 140 360 8480 Tm (or the book value of amounts invested; the principal balance of loans, notes, other debt instruments or receivables)Tj
140 0 0 140 360 8280 Tm (\(note that interest on these assets is not accrued after failure but is recognized when received\); the foreclosed )Tj
140 0 0 140 360 8080 Tm (value of real and/or personal property or the book value of assets \(cost less depreciation or amortization through )Tj
140 0 0 140 360 7880 Tm (date of the institution's failure\); and the historical cost of the net investment in subsidiaries, partnerships or )Tj
140 0 0 140 360 7680 Tm (joint ventures, adjusted where appropriate to reflect a receivership's portion of the underlying net earnings or )Tj
140 0 0 140 360 7480 Tm (losses.)Tj
140 0 0 140 360 7080 Tm (An Estimated Loss on Assets is provided when anticipated future asset disposition proceeds, including associated )Tj
140 0 0 140 360 6880 Tm (expenses, are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying )Tj
140 0 0 140 360 6680 Tm (current book values against estimated recovery rates \(based on available valuation projections or liquidation )Tj
140 0 0 140 360 6480 Tm (experience\) for similar receivership asset categories. Actual recovery rates for a receivership may differ )Tj
140 0 0 140 360 6280 Tm (according to the quality and type of individual asset, as well as over time with changing market conditions. )Tj
140 0 0 140 360 6080 Tm (Accordingly, the gains or losses ultimately realized by a receivership will likely vary from amounts estimated. )Tj
140 0 0 140 360 5680 Tm (5. Actual and Estimated Liabilities: The 多宝游戏下载, as receiver, determines \(allows/disallows\) claims and distributes )Tj
140 0 0 140 360 5480 Tm (proceeds derived from the disposition of the failed institution's assets according to applicable state and federal )Tj
140 0 0 140 360 5280 Tm (law governing the payment of creditor claims. Recorded liabilities comprise 1\) proven or pending \(unproven\) claims )Tj
140 0 0 140 360 5080 Tm (against a receivership estate, 2\) various operating liabilities, and 3\) estimates of other probable losses such as )Tj
140 0 0 140 360 4880 Tm (pending defensive litigation. Applicable law governing the payment priority of distributions may vary depending on )Tj
140 0 0 140 360 4680 Tm (the inception date of a receivership. Therefore, liabilities of a receivership estate are not ranked in order of )Tj
140 0 0 140 360 4480 Tm (preference or payment priority on the Statement of Assets and Liabilities in Liquidation.)Tj
140 0 0 140 360 4080 Tm (6. Estimated Loss Share Reserves: A receivership records an estimated liability for shared-loss payments )Tj
140 0 0 140 360 3880 Tm (relative to assets purchased under a shared-loss agreement with an acquiring institution, which may span a )Tj
140 0 0 140 360 3680 Tm (period of eight to ten years. This estimated shared-loss liability is adjusted monthly for actual loss payments )Tj
140 0 0 140 360 3480 Tm (made and recoveries obtained, as well as periodic valuation updates.)Tj
140 0 0 140 360 3080 Tm (7. Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation )Tj
140 0 0 140 360 2880 Tm (liabilities, the 多宝游戏下载 Legal Division has determined that a receivership may be subject to reasonably possible )Tj
140 0 0 140 360 2680 Tm (losses from unresolved litigation. Reasonably possible losses differ from those which are probable in that there )Tj
140 0 0 140 360 2480 Tm (is a lesser likelihood of loss and payment from a receivership. As such, reasonably possible losses are not )Tj
140 0 0 140 360 2280 Tm (accrued until the 多宝游戏下载, through periodic review, determines that the likelihood of loss has become probable. A )Tj
140 0 0 140 360 2080 Tm (receivership may be subject to significant losses from cases where uncertainties prevent a reasonable assessment )Tj
140 0 0 140 360 1880 Tm (of the ultimate outcome and/or an estimate of the amount of loss which could result.)Tj
140 0 0 140 360 1480 Tm (8. Estimated Interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to )Tj
140 0 0 140 360 1280 Tm (creditors holding proven claims against the receivership estate, including the claim\(s\) held by the 多宝游戏下载 in its )Tj
140 0 0 140 360 1080 Tm (Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims, )Tj
140 0 0 140 360 880 Tm (under certain circumstances, after a receiver is appointed. Uncertainties exist as to the universe of creditors )Tj
140 0 0 140 360 680 Tm (whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven )Tj
140 0 0 140 360 480 Tm (claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders )Tj
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140 0 0 140 360 15520 Tm (creditor claims is recognized in these financial statements when at least 95% of the principal of proven )Tj
140 0 0 140 360 15320 Tm (creditor claims has been paid.)Tj
140 0 0 140 360 14920 Tm (9. Non-Cash Adjustments: Unrecorded assets and claims determined to have existed as of the institution's failure )Tj
140 0 0 140 360 14720 Tm (are deemed discovered assets and liabilities, respectively, and are recorded as non-cash equity adjustments. )Tj
140 0 0 140 360 14520 Tm (Other non-cash equity adjustments include the Estimated Loss on Assets in Liquidation, the Estimated Interest on )Tj
140 0 0 140 360 14320 Tm (Claims, as well as the write-off of remaining unpaid liabilities prior to the inactivation of a receivership. )Tj
140 0 0 140 360 14120 Tm (Note that certain non-cash adjustments such as the estimated loss on assets and probable litigation are reversed )Tj
140 0 0 140 360 13920 Tm (when they are recognized as liquidation transactions in the Statement of Operations.)Tj
140 0 0 140 360 13520 Tm (10. Contingent Recoveries: Assets of a receivership generally exclude potential collections from activities such )Tj
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140 0 0 140 360 13120 Tm (estimation of the amounts ultimately collectible. Instead, these recoveries are generally recognized when cash )Tj
140 0 0 140 360 12920 Tm (is received, or when the collection is probable and the amount collectible can be reasonably estimated.)Tj
140 0 0 140 360 12520 Tm (11. Income Taxes: Federal tax law requires that receivers of corporations, including depository institutions for )Tj
140 0 0 140 360 12320 Tm (which the 多宝游戏下载 serves as receiver, continue to file federal income tax returns for the receiverships they )Tj
140 0 0 140 360 12120 Tm (manage. A receivership may therefore incur a federal income tax liability from activities that occur during the )Tj
140 0 0 140 360 11920 Tm (life of the receivership, as well as during pre-receivership periods. Payment of federal income taxes is )Tj
140 0 0 140 360 11720 Tm (deferred until higher priority claims are satisfied, but prior to any payment made to equity holders of the )Tj
140 0 0 140 360 11520 Tm (failed institution. Because of the contingent nature of these tax claims, federal income tax liabilities are )Tj
140 0 0 140 360 11320 Tm (generally not recognized in these financial statements unless circumstances indicate that there is a high )Tj
140 0 0 140 360 11120 Tm (probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or)Tj
140 0 0 140 360 10920 Tm (local taxing authority once 多宝游戏下载 is appointed as receiver. If a receivership files for a refund from federal or)Tj
140 0 0 140 360 10720 Tm (state tax agencies, the potential tax refund estimate is disclosed. Since such refunds are not fixed and )Tj
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140 0 0 140 360 9720 Tm (Corporate capacity, are responsible for conducting all liquidation-related activities for 多宝游戏下载 receiverships. )Tj
140 0 0 140 360 9520 Tm (The 多宝游戏下载 in its Corporate capacity bills the receiverships for various liquidation services provided on their )Tj
140 0 0 140 360 9320 Tm (behalf. Since 2015, 多宝游戏下载 billed expenses represent a receivership's proportional share of aggregate liquidation )Tj
140 0 0 140 360 9120 Tm (costs based on allocation factors, such as receivership-specific direct expenses, assets in liquidation and )Tj
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