Report of Transaction Accounts, Other Deposits and Vault Cash (quarterly)

Report of Transaction Accounts, Other Deposits
and Vault Cash (FR 2900)
For use by building or savings and loan associations, mutual savings banks,
cooperative banks, homestead associations, and savings banks

New Booklet--September 2003

FR 2900 S&Ls and Savings

October 2007

TABLE OF CONTENTS

INTRODUCTION

............................................................................................................................ 4

SECTION 1--GENERAL INSTRUCTIONS .............................................................................. 7
Who must report....................................................................................................................... 7
Frequency of report .................................................................................................................. 7
How to report ........................................................................................................................... 8
Treatment of IBF accounts................................................................................................ 8
Consolidation .................................................................................................................... 8
Denomination.................................................................................................................... 9
Foreign (non-U.S.) currency-denominated transactions ................................................... 9
Overdrafts or negative balances ........................................................................................10
Recordkeeping ................................................................................................................ 10
Unposted debits and credits ............................................................................................ 11
Rejected items ................................................................................................................. 11
What liabilities are reservable under Regulation D................................................................ 11
Deposits and primary obligations.................................................................................... 12
Treatment of Pass-through Balances............................................................................... 16
Treatment of Trust Funds................................................................................................ 16
Treatment of Escrow Funds . .......................................................................................... 17
Treatment of Payment Errors .......................................................................................... 17
Treatment of Sweep Arrangements................................................................................. 18
SECTION 2--ITEM-BY-ITEM INSTRUCTIONS................................................................... 19
Transaction accounts (Items A.1 through A.3) .......................................................................
General description of transaction accounts....................................................................
Summary of transaction account classifications .............................................................
Demand deposits (Items A.1.a through A.1.c) ................................................................
Demand deposits due to depository institutions (Item A.1.a) ..................................
U.S. Government demand deposits (Item A.1.b)......................................................
Other demand deposits (Item A.1.c).........................................................................
Other transaction accounts .............................................................................................
ATS accounts, NOW accounts/share drafts, and telephone
and preauthorized transfers (Item A.2)..............................................................
ATS accounts.............................................................................................
NOW accounts...........................................................................................
Telephone and preauthorized transfer accounts.........................................
Total transaction accounts (Item A.3)..............................................................................

19
19
21
22
27
30
32
35
35
35
35
36
37

Deductions from transaction accounts (Items B.1 and B.2) ................................................... 38
Demand balances due from depository institutions in the U.S. (Item B.1) ..................... 38
Cash items in process of collection (Item B.2)................................................................ 41
Total savings deposits (Item C.1)........................................................................................... 43
Reporting treatment of savings accounts that authorize or permit
transfers or withdrawals in excess of the authorized number ................................. 44

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Procedures for ensuring that the permissible number of transfers from
savings deposits is not exceeded ............................................................................. 47
Total time deposits (Item D.1)................................................................................................ 48
Vault cash (Item E.1).............................................................................................................. 52
Memorandum section ............................................................................................................. 53
All time deposits with balances of $100,000 or more (Item F.1).................................... 53
Schedule AA.1 and Schedule BB.2 --Other reservable liabilities by remaining maturity .....
Amounts of outstanding ineligible acceptances, and funds obtained
through issuance of obligations by affiliates (Items AA.1 and BB. 2)......................
Examples ..........................................................................................................
Maturities ..........................................................................................................
Maturing in less than seven days (Item 1)................................................................
Total nonpersonal savings and time deposits (Item BB.1) .....................................................
Ineligible Acceptances and Obligations Issued by Affiliates Maturing in
seven days or more (nonpersonal only) (ItemBB.2).................................................

54
54
56
57
57
58
58

Schedule CC: Net Eurocurrency Liabilities.............................................................................. 60
Who must report. ................................................................................................................... 60
Gross borrowings from non-U.S. offices of other depository institutions
and from certain designated non-U.S. entities (Worksheet Item 1) ................................
Gross liabilities to own non-U.S. branches plus net liabilities to own IBF
(Worksheet Item 2) ..........................................................................................................
Gross claims on own non-U.S. branches plus net claims on own IBF (Worksheet Item 3) ...
Assets held by own IBF and own non-U.S. branches acquired from
U.S. offices (Worksheet Item 4) .....................................................................................
Credit extended by own non-U.S. branches to U.S. residents (Worksheet Item 5) ................
CALCULATION WORKSHEET.......................................................................................

60
61
61
62
63
64

GLOSSARY ........................................................................................................................................ 66

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INTRODUCTION
The Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900) is required from all
banking Edge and Agreement corporations and U.S. branches and agencies of foreign banks, regardless of the
level of their net transaction accounts or total deposits, and from all other depository institutions in the United
States with net transaction accounts greater than the exemption amount or total deposits greater than or equal
to the reduced reporting limit as of the periods specified by the Federal Reserve Board.1 This report is used by
the Federal Reserve for the calculation of federal required reserves, for construction of the monetary
aggregates, and to meet the requirement that the exemption amount be indexed annually as specified by the
Federal Reserve Act. Rules governing the reserve requirements are contained in Federal Reserve Regulation
D--Reserve Requirements of Depository Institutions of the Board of Governors of the Federal Reserve System
(12 CFR Part 204).
This booklet presents detailed instructions for the preparation of these reports by building or savings
and loan associations, mutual savings banks, cooperative banks, homestead associations, and savings banks.
Separate instruction booklets are provided for other types of depository institutions, as follows:
-- commercial and industrial banks and banking Edge and Agreement corporations;
-- credit unions; and
-- U.S. branches and agencies of foreign banks.
These booklets may be obtained upon request from your Federal Reserve Bank and are available on the
Federal Reserve Board’s Reporting Forms website at
http://www.federalreserve.gov/boarddocs/reportforms/default.cfm.
Depository institutions that are not required to submit the FR 2900 may be subject to reduced deposit
reporting, depending on the level of their net transaction accounts and total deposits. A description of this
report (FR 2910a) is provided in the Supplementary Information to Regulation D and in the Reserve
Maintenance Manual issued by the Federal Reserve. Reporting forms and instructions for the reduced
1.

Section 411 of the Garn-St Germain Depository Institutions Act of 1982 subjects the first $2.0 million of a depository
institution's reservable liabilities to a reserve requirement of zero percent. The amount of reservable liabilities subject to the
zero-percent reserve requirement (the “exemption amount”) is adjusted each year for the next succeeding calendar year by 80
percent of the percentage increase in total reservable liabilities of all depository institutions, measured on an annual basis as of
June 30. (No corresponding adjustment is made in the event of a decrease in total reservable liabilities of all depository
institutions.)
The revised exemption amount determined on the basis of the June 30 data is to be effective for the following calendar year.
The exemption amount is used in two ways. First, it is used for all FR 2900 reporters in the reserve requirement calculations
during the calendar year (January through December) following the announcement of the revised amount. Second, for those
depository institutions whose deposits reporting status is based on the level of their net transaction accounts, it is used to
determine who must file the FR 2900 versus who is eligible for reduced reporting for the 12-month period beginning in the
September following the announcement of the revised exemption amount each year. For example, the exemption amount for
calendar year 2003, which is based on data as of June 30, 2002, is $6.0 million. This exemption amount is used for reserve
requirement calculations during calendar year 2003 and for determining the FR 2900 reporting panels from September 2003 to
September 2004.
The procedures used to measure total reservable liabilities, and thus to determine who must file the FR 2900 are described in the
Supplementary Information to Regulation D and in the chapter titled “Reporting Requirements” of the Reserve Maintenance
Manual issued by the Federal Reserve.

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report (FR 2910a) may be obtained upon request from your Federal Reserve Bank and are available on the
Federal Reserve Board’s Reporting Forms website at
http://www.federalreserve.gov/boarddocs/reportforms/default.cfm.
Subsequent sections of this booklet are organized as follows. Section I provides detailed instructions
for preparation of the Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900). Section II
provides item-by-item instructions for all items on the report. A Glossary defines in alphabetical order
important terms and phrases that appear underlined in Parts I and II. An Appendix contains the Summary of
Legitimate Interseries Differences Between the Report of Transaction Accounts, Other Deposits and
Vault Cash (FR 2900) and the Thrift Financial Report (OTS 1313).
Accurate preparation of these reports is an important first step in the reserve maintenance cycle. Based
on the deposit levels that your depository institution reports each reporting period, the Federal Reserve
calculates the level of reserves that must be maintained at or passed through to a Federal Reserve Bank on
these deposits under the reserve maintenance schedule stipulated by Regulation D. Efficient reserve
management begins with accurate and timely deposit reporting. Errors in reporting may result in higher
reserve requirements, which could reduce your institution's potential earnings, or in insufficient reserves,
which may subject your institution to the assessment of penalties.
In addition to their use in the calculation of required reserves, data from these reports are basic to the
construction of the monetary aggregates that are used by the Federal Reserve System in the formulation and
conduct of monetary policy. Inaccurate reporting may result in a deterioration in the quality of the monetary
aggregate estimates.
The following instructions are based on Regulation D and in no way alter or modify the requirements
of Regulation D. While every effort has been made to incorporate all existing regulatory provisions,
applicable regulations, interpretations, and legal opinions governing deposits subject to reserve requirements,
this booklet should not be considered the final authority on the deposit status of all instruments, obligations, or
transactions. Final authority rests with the Board of Governors of the Federal Reserve System. Inquiries
concerning specific instruments, obligations, or transactions may be directed to the Federal Reserve Bank in
your District.
Filing of data. Weekly and quarterly FR 2900 data may be filed with the Federal Reserve Bank either
in hard-copy form or electronically. Please visit www.reportingandreserves.org/iesub.html or contact your
Reserve Bank for information on electronic submission of your data.
Please note that if a depository institution has its data prepared or transmitted by a private vendor, the
depository institution is responsible for the timeliness and accuracy of data to the same extent as if it had
prepared and transmitted the data itself. The depository institution may be contacted directly by and be
responsible for responding to the Federal Reserve on edit questions.

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INSTRUCTIONS FOR PREPARATION OF THE REPORT OF TRANSACTION ACCOUNTS,
OTHER DEPOSITS AND VAULT CASH (FR 2900)

Public reporting burden for this collection of information is estimated to vary from 1 to 12 hours per
response, with an average of 3.50 hours per response, including time to gather and maintain data in the
required form and to review instructions and complete the information collection. Send comments regarding
this burden estimate or any other aspect of this collection of information, including suggestions for reducing
this burden, to Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, N.W.,
Washington, D.C. 20551; and to the Office of Management and Budget, Paperwork Reduction Project
(7100-0087), Washington, D.C. 20503.

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SECTION 1--GENERAL INSTRUCTIONS
A. Who Must Report.
This report is required from each of the following types of institutions with net transaction accounts greater
than the exemption amount1 or with total deposits greater than or equal to the reduced reporting limit as
determined annually by procedures described in the Supplementary Information to Regulation D and in the
Reserve Maintenance Manual issued by the Federal Reserve. (This determination is made each July.)
A.1. Any savings bank or mutual savings bank as defined in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813(f) and (g)).
A.2. Any member of a Federal Home Loan Bank as defined in section 2 of the Federal Home Loan Bank
Act (12 U.S.C. 1422(2)).
A.3. Any institution insured by or eligible to apply for insurance from the Savings Association Insurance
Fund as defined in sections 401 and 403 of the National Housing Act (12 U.S.C. 1724 (a) and 1726).
Institutions eligible to apply for such insurance include federally-chartered savings and loan
associations; federally-chartered mutual savings banks; building and loan, savings and loan, and
homestead associations; and cooperative banks.
A.4

Any depository institution that opens during the year will be asked to submit an FR2910a report
on June 30, unless its size warrants earlier reporting.

B. Frequency of Report.
For building or savings and loan associations, mutual savings banks, cooperative banks, homestead
associations, and savings banks, FR 2900 reporting frequency is determined annually (usually in July)
and is based on the institution's net transaction accounts and total deposits as of prescribed periods. The
specific periods and procedures used to make these determinations are described in the Supplementary
Information to Regulation D and in the chapter titled “Reporting Requirements” of the Reserve
Maintenance Manual issued by the Federal Reserve.
B.1. An institution with net transaction accounts greater than the exemption amount and total deposits
greater than or equal to the nonexempt deposit cutoff, or with total deposits greater than or equal to
the reduced reporting limit, as of the prescribed measurement period shall submit the FR 2900 each
week. The reporting week is the seven-day period that begins on Tuesday and ends on the
following Monday.

1.

Terms and phrases that have been underlined are defined and described in alphabetical order in the glossary section of this
booklet.

2.

The “nonexempt deposit cutoff”, is established by the Federal Reserve. The cutoff in effect for any one calendar year is used to
determine weekly versus quarterly FR 2900 reporting panels for September of that year to September of the following year.
The current nonexempt cutoff can be found in the Reserve Maintenance Manual, page IV-4.

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B.2. An institution with net transaction accounts greater than the exemption amount and total deposits
less than the nonexempt deposit cutoff as of the prescribed measurement period shall submit the
FR 2900 quarterly, once each March, June, September, and December. The quarterly reporting
week is the seven-day period that begins on the third Tuesday of a given month and ends on the
following Monday.
B.3

The twelve daily items should be reported for each day of the weekly or quarterly report week,
and the three single day items should be reported only one day each year, in June. For weekly
FR 2900 reporters, that single day is June 30. For quarterly FR 2900 reporters, that single day is
the Monday contained in the standard June reporting week. The single day items are “total
nonpersonal savings and time deposits” (line BB.1), “ineligible acceptances and obligations
issued by affiliates maturing in 7 days or more-nonpersonal only” (line BB.2), and “net
eurocurrency liabilities” (Schedule CC).
NOTE: Requests for Revised Data
Federal Reserve System staff review data submitted on the FR 2900 report very carefully to
ensure that the data are accurate. As a result of that review, Reserve Bank staff may ask
reporting institutions to explain movements in the data, and, if reported data are incorrect, will
ask the institution to submit revisions. Since these data are extremely time-sensitive,
respondents should respond as quickly as possible to these requests.

C. How to Report.
The FR 2900 shall reflect amounts outstanding as of the close of business each day during the reporting
period. The report should be prepared in accordance with the procedures described below.
C.1. Treatment of International Banking Facility (IBF) Accounts.
An IBF may be established in the United States by a U.S. depository institution, a U.S. branch or
agency of a foreign bank, or an Edge or agreement corporation. An IBF is a set of asset and
liability accounts segregated on the books and records of the establishing entity. Permissible IBF
assets and permissible IBF liabilities are defined in Federal Reserve Regulation D [12 CFR
204.8(a) (2) and (3)]. IBF liabilities are exempt from reserve requirements and thus should be
excluded from this report. However, certain transactions of the establishing entity with its own IBF
may be Eurocurrency liabilities of the establishing entity and, if so, should be included in the
calculation of net Eurocurrency liabilities on Schedule CC.
C.2. Consolidation.
A consolidated report must be prepared that combines all deposits, vault cash, and allowable
deductions of the following entities:
a. the head office;
b. all branches located in the 50 states of the United States or the District of Columbia;
c. all majority owned service corporation subsidiaries located in the 50 states of the United States
or the District of Columbia; and

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d. all majority owned operations subsidiaries located in the 50 states of the United States or the
District of Columbia; and
e. all branches on U.S military facilities, wherever located.

Preparing a Consolidated FR 2900 Report
Step 1: Combine comparable accounts of the reporting institution's individual entities on an
account by account basis.
EXAMPLE: Demand accounts held by an institution's own operation subsidiaries (e.g.,
credit card companies, mortgage companies, leasing companies, or safe deposit
companies) held at other depository institutions and reservable liabilities to third parties
held on the books of the operation subsidiaries.
Step 2: Eliminate all inter-office transactions that reflect the existence of debtor-creditor
relationships among the entities and entity branches to be consolidated (including
operation subsidiaries).
EXAMPLE: Cash that is owed to the parent bank (head office) by a branch.
NOTE: The consolidation basis to be used in preparing the FR 2900 may differ from the Report of
Condition and certain other reports.
EXAMPLE: “Checks on hand” received at a reporting institution's operations subsidiary or service
corporation should be combined with the reporting institution's “cash items in process of collection.”
Demand accounts of a reporting institution's operations subsidiary or service corporation at institutions
other than the parent should be combined with the reporting institution's balance “due from other
depository institutions.” Similarly, obligations of an operations subsidiary or service corporation that
meet the definition of “deposits” should be included as deposit liabilities of the parent reporting
institution.
C.3. Denomination. Amounts should be rounded and reported to the nearest thousand U.S. dollars.
C.4. Foreign (non-U.S.) currency-denominated transactions. Transactions denominated in non-U.S.
currency must be valued in U.S. dollars each reporting week either by using the exchange rate
prevailing on the Tuesday that begins the seven-day reporting week or by using the exchange rate
prevailing on each corresponding day of the reporting week.
Regardless of which of the above two options is elected, the exchange rates to be used for this
conversion are either the 10:00 a.m. rates quoted for major currencies by the Federal Reserve Bank
of New York, or the noon buying rates certified by the Federal Reserve Bank of New York for
customs purposes, or some other consistent series of exchange rate quotations. These procedures
will apply to all foreign-currency deposits that are outstanding during any one day of the reporting
week, including those that are received by the depository institution after the start of the reporting
week (Tuesday) or paid out before the close of the reporting week (the following Monday).
Once a depository institution chooses to value foreign currency transactions by using either the
weekly (Tuesday) method or the daily (corresponding day) method, it must use that method
consistently over time for all Federal Reserve reports. If at some future time thereafter the

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depository institution wishes to change its valuation procedure from one of these two methods to
the other, the change must be applied to all Federal Reserve reports and then used consistently
thereafter. Please notify your Federal Reserve Bank of any such change.
NOTE: Foreign currency-denominated deposits held at U.S. offices of a depository institution
must be converted to U.S. dollars under the procedures stipulated above and included as
appropriate in Section A, B, C, or D (and F where applicable), or in Schedule AA, BB, or CC of
the FR 2900. In addition, all FR 2900 respondents, both weekly and quarterly, that offer foreign
currency-denominated deposits at their U.S. offices must file the Report of Foreign (non-U.S.)
Currency Deposits (FR 2915), which breaks out the amounts of such deposits, converted to U.S.
dollars, that are included in selected FR 2900 line items. For information on the FR 2915, please
contact your Federal Reserve Bank.
C.5

Overdrafts or negative balances. Unless covered by the bona fide cash management
arrangement,1 all deposit accounts with a negative balance as of the close of business each day
(whether resulting from prearranged or unplanned overdrafts or from operating or other factors) are
to be regarded as having a zero balance for purposes of computing deposit totals. Moreover, any
overdrawn deposit account by a customer should be regarded as a loan made by the reporting
institution to that customer; and the amount of the overdraft should be regarded as zero and not be
reported as a negative deposit. (Also see Subsection G, Treatment of Trust Funds.)
Deposit accounts which the reporting institution maintains at another depository institution that
have negative balances should be regarded as having zero balances when computing totals for Item
B.1, Demand balances due from depository institutions.
Specifically, when an account which the reporting institution routinely maintains with sufficient
balances to cover checks or drafts issued in the normal course of business becomes overdrawn at
another depository institution, negative balances that result from such occasional overdrafts are
regarded as a borrowing and therefore should not be included in this report.
However, checks or drafts drawn against an account that is not routinely maintained with sufficient
balances, or that are drawn against a “zero balance account” (for example, an account wherein
funds are remitted by the reporting institution only when it has been advised that the checks or
drafts have been presented for payment) are considered to be demand deposits and reported in Item
A.1.c, Other demand deposits.

C.6. Recordkeeping. The amount reported for each day should reflect the amount outstanding at the
“close of business” for that day. The term “close of business” refers to the time established by the
reporting institution as the cut-off time for posting transactions to its general ledger accounts for
that day. The time designated as close of business should be reasonable and applied consistently.
For purposes of this report, the reporting institution is open when entries are made to the general
ledger accounts of the reporting institution for that day. The posting of a transaction to the general
ledger account means that both debit and credit entries must be recorded as of the same date. For
any day on which the reporting institution was closed, i.e., no entries are made to the general
ledger, report the closing balance as of the preceding day.

1.

Overdrawn accounts of a depositor who maintains more than one transaction account with the reporting institution may be
netted against positive balances in the other transaction accounts pursuant to a bona fide cash management arrangement.

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Reservable obligations for which settlement is in clearinghouse or uncollected funds should be
reported as of the date that the transaction is executed and not as of the settlement date or date that
collected funds are to be received. Transactions that result from prior commitments should be
reported on the date that the transaction is executed, not as of the commitment date. However,
where payment information (such as that contained on magnetic tape, direct deposit payments,
ACH services, paper listings, and similar items involving automated arrangements) is sent to the
reporting institution prior to the effective payment date, the institution may credit its depositors'
accounts one day prior to the effective payment date in order to ensure that the deposit will be
available to the depositor at the opening of business on the payment date. When such prior credit
to deposit accounts is given in connection with automated arrangements, the credits should be
offset by appropriate debit entries to “cash items in process of collection.”
C.7. Unposted debits and credits. Unposted debits consist of cash items drawn on the reporting
institution that have been “paid” or credited by the reporting institution and are chargeable, but that
have not been charged, against deposits as of the close of business. These items should be reported
as “cash items in process of collection” until they have been charged to either individual or general
ledger deposit accounts.
Unposted credits consist of items that have been received for deposit and that are in process of
collection but have not been posted to individual or general ledger deposit accounts. These credits
should be reported as deposits.
C.8. Rejected items. Rejected items (resulting from mutilated documents, incorrect account numbers or
other factors) that would otherwise have resulted in credit to deposit accounts should be included in
deposit totals for the day on which offsetting charges have been posted. Rejected items that
represent withdrawals from deposit accounts and for which corresponding credits have already
been recorded should be deducted from deposits as of the close of business for that day.
D. What Liabilities Are Reservable Under Regulation D.
Under the Monetary Control Act of 1980, transaction accounts and nonpersonal “time deposits” (which
include nonpersonal savings deposits and nonpersonal time deposits) are subject to federal reserve
requirements.1 Eurocurrency liabilities as defined by Regulation D are also subject to reserve
requirements. (See Section II, Schedule CC, Net Eurocurrency Liabilities, for calculation and reporting
requirements.) Rules governing reserve requirements are contained in Federal Reserve Regulation D.
Detailed instructions defining transaction accounts, nonpersonal savings deposits, and nonpersonal time
deposits can be found in the appropriate item-by-item instructions. Deposits as defined by Regulation D
are described in Subsection E immediately below.
Please note, however, that in addition to reservable liabilities, certain nonreservable liabilities are also
reported on the Report of Transaction Accounts, Other Deposits and Vault Cash.

1. Nonpersonal savings deposits and nonpersonal time deposits are reservable liabilities even though they currently are subject to a
zero-percent reserve requirement.

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E. Deposits as Defined Under Regulation D.
In general, Regulation D defines deposits to include both deposits and obligations issued. For purposes
of these instructions, deposits are divided into two broad categories of liabilities: Deposits and primary
obligations that are undertaken as a means of obtaining funds, regardless of the use of the proceeds.
E.1. Deposits to be reported in Sections A through D, and Section F of the Report of Transaction
Accounts, Other Deposits and Vault Cash consist of:
a. Funds (including brokered deposits) received or held by the reporting institution for which
credit has been given or is obligated to be given to a transaction account (demand deposit, ATS
account, telephone or preauthorized transfer, NOW account, or share draft), a savings deposit
account, or a time deposit account. (Also, include interest credited to such accounts.)
b. Funds received or held by departments other than the trust department of the reporting
institution for a special or specific purpose, such as escrow funds, funds held as security for
securities loaned by the reporting institution, funds deposited as advance payments on
subscriptions to U.S. Government securities, and funds held to meet the reporting institution's
acceptances.
c. Cashier’s checks, certified checks, teller's checks, and other officer’s checks issued for any
purpose including those issued in payment for services, dividends, or purchases that are drawn
on the reporting bank by any of its duly authorized officers and that are outstanding on the
report date. This includes:
(1) Those drawn by the reporting institution on itself and not payable at or through another
depository institution.
(2) Those drawn by the reporting institution and drawn on, or payable at or through, another
depository institution on a zero-balance account or an account that is not routinely
maintained with sufficient balances to cover checks drawn in the normal course of business
(including accounts where funds are remitted by the reporting institution only when it has
been advised that the checks or drafts have been presented).
NOTE: Those checks drawn by the reporting institution on a deposit account at another
depository institution which the reporting institution routinely maintains with sufficient
balances to cover checks or drafts drawn in the normal course of business should be
excluded from Item A.1, Demand deposits, and recorded directly as a reduction in Item B.1,
Demand balances due from depository institutions in the U.S.
(3) Those checks drawn by the reporting institution on, or payable at or through, a Federal
Reserve Bank or a Federal Home Loan Bank. (Report in Item A.1.c, Other demand
deposits.)
d. Funds received or held in connection with traveler's checks sold (but not drawn) by the
reporting bank, until the proceeds of the sale are remitted to another party. Also includes other
funds received or held in connection with any other checks used (but not drawn) by the
reporting bank, until the amount of the checks is remitted to another party.
e. Money orders issued for any purposes (including those issued in payment for services,
dividends, or purchases) that are drawn on the reporting bank and are outstanding on the report
date should be reported as deposits. In addition, funds received or held for money orders sold,

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but not drawn by the reporting bank should be included as deposits until the proceeds of the sale
are remitted to another party.
f. Funds received or held in connection with letters of credit issued to customers, including funds
credited to cash collateral accounts and similar accounts.
g. Any obligation to pay a check or draft drawn on the reporting institution that has been presented
for collection by a third party when the depositor's account at the reporting institution has
already been charged and settlement of the check has not been made.
h. Any funds received by the reporting institution's affiliate and later channeled to the reporting
institution by the affiliate in the form of a transaction account, savings deposit, or time deposit.
i. Credit balances.
E.2. For purposes of this report, the following are not considered deposits and should not be reported in
Sections A through D, or Section F of the Report of Transaction Accounts, Other Deposits and
Vault Cash:
a. Balances due to the IBF of the reporting institution. These balances are included in the
calculation of net Eurocurrency liabilities (Schedule CC).
b. Any liabilities of the reporting institution's own IBF.
c. Trust funds received or held by the reporting institution that it keeps properly segregated as trust
funds and apart from its general assets or which it deposits in another institution to the credit of
itself as trustee or other fiduciary. Please see subsection G for treatment of trust funds.
d. An obligation that represents a conditional, contingent or endorser's liability.
e. Obligations, the proceeds of which are not used by the reporting institution for purposes of
making loans or investments, maintaining liquid assets (such as cash or “due from” depository
institutions), or other similar purposes. An obligation issued for the purpose of raising funds to
be used by the reporting institution to purchase business premises, equipment, supplies, or
similar assets is not a deposit.
f. Accounts payable, representing obligations of the reporting institution for goods or services
purchased.
g. Hypothecated deposits created by payments on an installment loan where (1) the amounts
received are not used immediately to reduce the unpaid balance due on the loan until the sum of
the payments equals the entire amount of the loan principal and interest; and (2) where such
amounts are irrevocably assigned to the reporting institution and cannot be reached by the
borrower or creditors of the borrower. Please note that for purposes of this report, deposits
serving simply as collateral for loans do not constitute hypothecated deposits.
h. A dividend declared by the reporting institution for the intervening period between the date of
the declaration of the dividend and the date on which it is paid.
E.3. Primary obligations to be reported as deposits in Sections A through D, and Section F of the Report
of Transaction Accounts, Other Deposits and Vault Cash consist of:

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a. Promissory notes (including commercial paper), acknowledgments of advance, and other similar
obligations (written or oral) that are issued by the reporting institution to nonexempt entities as a
means of obtaining funds, except where such obligations are issued for the purpose of raising
funds to be used by the reporting institution to purchase business premises, equipment, supplies,
or similar assets.
(NOTE: Purchases of “Federal Funds”, either overnight or for a specified term, from
nonexempt entities are primary obligations. Borrowings from exempt entities (including federal
funds) are excluded form this report.)
b. Repurchase agreements entered into with nonexempt entities on any asset other than an
obligation of, or an obligation fully guaranteed as to principal and interest by, the U.S.
Government or a Federal agency and other than the shares of a money market mutual fund
whose portfolio consists wholly of obligations of, or obligations fully guaranteed as to principal
and interest by, the U.S. Government or a Federal agency.
c. Liabilities arising from the issuance of due bills or similar instruments that are issued by the
reporting institution to any customer (including another depository institution), regardless of the
use of the proceeds, or a debit to an account of the customer before the securities are delivered,
unless collateralized within three business days from date of issuance by a security similar to the
security purchased by the reporting institution's customer. A security is similar if it is of the
same type and if it is of comparable maturity to that purchased by the customer. In the absence
of such collateral, due bills become reservable deposits beginning on the fourth business day
after the date of issuance, without regard to the purpose of the due bill or to whom issued.
d. Funds raised through the issuance and sale of mortgage securities (backed by a pool of
conventional, non-federally insured mortgages) to nonexempt entities if the originating
reporting institution is obligated to incur more than the first ten percent of any loss associated
with that pool of mortgages.
This treatment, however, does not apply to normal mortgage loan participation transactions
where the buyer and seller of a participation in a mortgage loan or pool of mortgages share all
risk of loss on a pro rata basis. In such instances, any funds raised through the sale of such
participations are not subject to reserve requirements.
e. Mortgage-backed bonds that are liabilities of the reporting institution and that are issued and
sold by the reporting institution to nonexempt entities.
f. Proceeds from outstanding sales to nonexempt entities of short-term loans made under longterm lending commitments.
g. Liabilities for outstanding bank notes or other debt instruments subordinated to the claims of
depositors that are not insured by a federal agency and have maturities or a weighted average
maturity of less than five years. These liabilities do not meet the criteria for regulatory capital
and therefore are defined as deposits for purposes of reserve requirements.
E.4. Primary obligations to be reported in Schedules AA and BB of the Report of Transaction Accounts,
Other Deposits and Vault Cash consist of:
a. Any liability of the reporting institution's nondepository affiliate on any promissory note
(including commercial paper), acknowledgment of advance, due bill, or similar obligation

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(written or oral), regardless of maturity, to the extent that the proceeds are used to supply or
maintain the availability of funds (other than capital) to the reporting institution if the affiliate's
liability would have been regarded as reservable if issued by the reporting institution, and if the
proceeds from the affiliate's liability are channeled to the reporting institution in the form of a
nonreservable transaction (e.g., a sale of the reporting institution's assets to its affiliate).
NOTE: If the proceeds from the affiliate's liability (whether regarded as reservable or
nonreservable if issued by the reporting institution) are channeled to the reporting institution in
the form of a transaction account, savings deposit, or time deposit, such funds are reported by
the reporting institution as a transaction account, savings deposit, or time deposit, respectively
(see Subsection E.1, paragraph h above). If the affiliate's liability would have been regarded as
nonreservable if issued by the reporting institution, and if the proceeds from the affiliate's
liability are channeled to the reporting institution in the form of a nonreservable transaction,
such funds are excluded from the Report of Transaction Accounts, Other Deposits and Vault
Cash.
b. Liabilities arising from bankers acceptances that are created by the reporting institution and that
are ineligible for discount at Federal Reserve Banks (acceptances that do not meet the criteria of
Paragraph 7 of Section 13 of the Federal Reserve Act (12 U.S.C. Section 372)), except those
sold to and held by exempt entities. These liabilities include finance bills and “working capital
acceptances.”
E.5. Primary obligations included in the calculation of net Eurocurrency liabilities (Schedule CC)
consist of borrowings from non-U.S. offices of other depository institutions and from certain
designated non-U.S. entities. Refer to Schedule CC for greater detail.
E.6. Except for due bills that are not collateralized within three business days by a similar security,
primary obligations issued to exempt entities are not subject to reserve requirements. Such
obligations are excluded from the Report of Transaction Accounts, Other Deposits and Vault Cash.
NOTE: Regulations may require certain balances that are not classified as deposits on other reports to be
treated as deposits subject to reserve requirements and therefore included in this report. For example, certain
debt obligations issued to nonexempt entities are defined as deposits for purposes of Regulation D and this
report but are reported as borrowings on the quarterly condition reports. Consequently, the deposit balances
on this report may differ from amounts in corresponding lines reported on your institution's quarterly report
of condition and on certain other reports submitted to the Federal Reserve, the Federal Deposit Insurance
Corporation (FDIC), the Office of Thrift Supervision, or state regulators.
In general, funds received by an institution that are immediately applied to reduce or extinguish a customer's
indebtedness to that institution do not constitute deposits since no liability is incurred. However, where a
depository institution receives funds representing loan repayments in the course of servicing loans for others,
such funds represent deposits. Certain dealer reserve or dealer differential accounts, such as those that arise
when financing a merchant's installment accounts receivable, and which provide that the dealer may not have
access to the funds in the account until the installment loans are repaid, are exempt from reserve
requirements until the reporting institution becomes obligated to the merchant for the full amount or any
portion of the funds. Similarly, funds that have been irrevocably assigned to the reporting institution and
cannot be reached by its customer or by the customer's creditors are not subject to reserve requirements.
Finally, certain other liabilities that do not result in a receipt of funds, such as accrued liabilities and accounts
payable, are not regarded as reservable liabilities.

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F.

Treatment of Pass-Through Balances.
A depository institution may satisfy reserve requirements by holding vault cash or by holding a reserve
balance at a Federal Reserve Bank. Institutions that are members of the Federal Reserve System must
maintain required reserve balances directly with the Federal Reserve. However, the Monetary Control
Act of 1980 authorizes a depository institution that is not a member of the Federal Reserve System
(“respondent”) to hold its required reserve balance at the Federal Reserve in one of two ways. The
respondent may deposit its required reserve balance directly with the Federal Reserve Bank or Branch
which serves the territory in which it is located. Alternatively, in accordance with procedures adopted by
the Federal Reserve Board, the respondent may elect to pass its required reserve balance through a
“correspondent.” The correspondent may be a Federal Home Loan Bank, the National Credit Union
Administration Central Liquidity Facility, a depository institution that holds a required reserve balance
directly at a Federal Reserve Bank or Branch, or an institution that has been authorized by the Federal
Reserve Board to pass through required reserve balances. The correspondent shall pass through these
required reserve balances to the Federal Reserve Bank or Branch in the territory in which the main office
of the nonmember respondent institution is located.
Correspondent institutions shall exclude from this report all balances received from institutions that have
a pass-through agreement with the correspondent (respondent institutions) and subsequently passed
through by the correspondent to the appropriate Federal Reserve Bank or Branch that are used to satisfy
reserve requirements. The correspondent institution shall include on this report all balances received
from respondent institutions that have not been passed through to the appropriate Federal Reserve Bank
or Branch.
Respondent institutions should exclude from this report all balances that the correspondent passes through
to the Federal Reserve Bank or Branch on behalf of the respondent that are used to satisfy reserve
requirements. Respondent institutions should include on this report all balances the correspondent has
not passed through to the Federal Reserve Bank or Branch.

G. Treatment of Trust Funds.
Trust funds that a reporting institution receives or holds but keeps segregated from its general assets and
that are not available for general investment or lending purposes do not constitute deposits and should not
be reported in any item on this report. However, trust funds should be reported as deposits of the
reporting institution when:
G.1. deposited by the trust department of the reporting institution in the commercial or other department
of the reporting institution;
G.2. deposited by the trust department of another depository institution in the commercial or other
department of the reporting institution; or
G.3. mingled with the general assets of the reporting institution, regardless of where held.
Commingled balances of individual trusts held in a single transaction account may not be netted. A
negative balance in an individual trust account must be reflected as a zero balance and should not be
netted against positive balances in other trusts in computing the amount in the commingled transaction
account each day. The prohibition does not apply, however, if (1) the applicable trust law specifically
permits the netting, or if a written trust agreement, valid under applicable trust law, permits a trust to lend
money to another trust account, or (2) the amount that caused the overdraft is still available in a

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settlement, suspense, or other trust account within the trust department and may be used to offset the
overdraft.
NOTE: Items such as bonds, stocks, jewelry, coin collections, etc. that are left with the reporting
institution for safekeeping, sometimes referred to as “special deposits,” should not be included as deposits
on this report.
H. Treatment of Escrow Funds.
Escrow funds (impound accounts) consist of funds deposited with a depository institution under an
agreement that requires the depository institution to pay all or some portion of the funds to a third party at
a certain time or upon fulfillment of certain conditions. The obligation of the reporting depository
institution on the funds maintained may constitute a deposit liability against which reserves must be held.
If escrow funds are held in the reporting institution's own trust department as part of the trust department's
fiduciary activities, they are to be treated as trust funds and, for reporting purposes, are subject to the
provisions noted above under “Treatment of Trust Funds.”
Escrow funds may be set up as a demand deposit, a savings deposit, or a time deposit (see Glossary of
Terms for the definition of these kinds of deposits.)
The classification of escrow funds as time deposits or savings deposits does not depend on whether or not
interest is paid on the funds. Escrow agreements entered into by depository institutions in states where
the payment of interest on such accounts is required by law must comply with the notice or maturity
provisions applicable to time deposits and savings deposits.
If the agreement between the depositor and the reporting institution does not specify the type of account
in which escrow funds must be held, then the reporting institution, acting as agent for itself, may place
those funds in the type of account the institution deems appropriate.
I. Treatment of Payment Errors
Demand deposits that are incurred because of payment errors must be reported in the appropriate category
on the FR 2900.1 The holder of the funds must report them on the FR 2900, even if the depository
institution that has the funds did not intend to receive these funds or intended to send these funds, but
could or did not. Payment errors typically arise from the following transactions:
I.1.

Duplicate Payment:
A duplicate payment occurs when the sending institution transfers funds more than once. Part of
this payment will eventually be returned. However, the funds represent a demand deposit for the
receiving bank and the amount must be reported as a demand deposit until the funds are disbursed.
The sending institution does not have either a due from bank deduction or a cash item in the
process of collection.

I.2.

Misdirected Payment:
A misdirected payment occurs when the sending institution transfers funds to the wrong bank. The
funds will be eventually returned to the sending bank or disbursed to the correct bank. However,

1.

These reporting instructions are unaffected by “as-of” adjustments, which may be applied to a reporting institution's reserve
account.

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the institution that received the funds in error must report these funds as a demand deposit until the
funds are disbursed.
The sending institution does not have either a due from bank deduction or a cash item in the
process of collection. The institution that did not receive the expected funds, regardless of whether
or not the institution credited the customer's account in anticipation of receiving payment, does not
have either a due from bank deduction or a cash item in the process of collection.
I.3.

Failed Payment:
A failed payment occurs when an institution fails to make a payment requested by a customer
because of payment system failures (e.g. computer problems) or a clerical error. The funds
retained because the transfer was not executed must be reported as a demand deposit until the funds
are disbursed.
The institution that did not receive the expected funds, regardless of whether or not the institution
credited the customer's account in anticipation of receiving payment, does not have either a due
from bank deduction or a cash item in the process of collection.

I.4.

Improper Third Party Transfers:
An improper third-party transfer occurs when a third party transfer is sent over Fedwire during the
settlement period (e.g., after 6:00 p.m. EST). If the transfer is not reversed by the close of Fedwire,
the receiving bank must report these funds as a demand deposit. The sending bank does not report
these funds as either a due from bank or a cash item in the process of collection.

J. Treatment of Sweep Arrangements
Sweep arrangements allow funds to be automatically transferred between different types of deposit
accounts or between deposit accounts and other interest-bearing instruments. The FR 2900 and FR
2950 should reflect amounts outstanding as of the close of business each day as reflected on the
general ledger for each item. Therefore, any swept amounts should be reported based on the
account in which they reside at the close of each day.
Note that transfers from nontransaction accounts to transaction accounts associated with sweep
arrangements are considered third-party transfers and must comply with the rules specified in
Regulation D 204.2(d)(2) (See Section C.1).

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SECTION 2: ITEM-BY-ITEM INSTRUCTIONS
Transaction Accounts (Items A.1 through A.3)
Items A.1 through A.3 of the report collect data on transaction accounts by component. Provided
below is a general description of transaction accounts, followed by a summary of transaction account
classifications. These descriptions are followed by detailed instructions for each item to be reported under
transaction accounts.
General Description of transaction accounts
With exceptions noted below, report in Items A.1 through A.3, as appropriate, deposits or accounts
from which the depositor or account holder is permitted to make transfers or withdrawals by negotiable or
transferable instruments, payment orders of withdrawal, telephone transfers, or other similar devices for the
purpose of making payments or transfers to third persons or others or from which the depositor may make
third party payments at an automated teller machine (ATM) or a remote service unit (RSU), or other electronic
device, including by debit card.
With exceptions noted below, include the following as transaction accounts (please note that the
exceptions include savings deposits):
1. Demand deposits.
2. Deposits or accounts (other than savings deposits) on which the depository institution has reserved
the right to require at least seven days' written notice prior to withdrawal or transfer of any funds in
the account and that are subject to check, draft, negotiable order of withdrawal, share draft, or
other similar item, including the accounts authorized by 12 U.S.C. §1832(a) (NOW accounts),
provided that the account consists of funds in which the entire beneficial interest is held by a party
eligible to have such an account as prescribed by 12 U.S.C. §1832(a)(2). (See the entry in the
Glossary for NOW accounts for a list of eligible holders.)
3. Deposits or accounts, such as accounts authorized by 12 U.S.C. §371a (automatic transfer service
accounts or ATS accounts), on which the depository institution has reserved the right to require at
least seven days' written notice prior to withdrawal or transfer of any funds in the account and
from which withdrawals may be made automatically through payment to the depository institution
itself or through transfer of credit to a demand deposit or other account in order to cover checks or
drafts drawn upon the institution or to maintain a specified balance in, or to make periodic
transfers to, such other accounts, provided that the account consists of funds in which the entire
beneficial interest is held by one or more individuals as prescribed by 12 U.S.C. §371a.
4. Deposits or accounts (other than savings deposits) (a) in which the entire beneficial interest is held
by a party eligible to hold a NOW account, and (b) on which the depository institution has
reserved the right to require at least seven days' written notice prior to withdrawal or transfer of
any funds in the account and (c) under the terms of which, or which by practice of the reporting
institution, the depositor is permitted or authorized to make more than six withdrawals per month
or statement cycle (or similar period) of at least four weeks for purposes of transferring funds to
another account of the depositor at the same institution (including a transaction account) or for
making payment to a third party by means of preauthorized transfer, or telephonic (including data
transmission) agreement, order or instruction. An account that permits or authorizes more than six
such withdrawals in a calendar month, or statement cycle (or similar

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period) of at least four weeks, is a transaction account whether or not more than six such
withdrawals actually are made during such period.
A preauthorized transfer includes any arrangement by the depository institution to pay a third
party from the account of a depositor upon written or oral instruction (including an order received
through an automated clearing house (ACH)) or any arrangement by a depository institution to
pay a third party from the account of a depositor at a predetermined time or on a fixed schedule.
Such an account is not a transaction account by virtue of an arrangement that permits transfers for
the purpose of repaying loans and associated expenses at the same depository institution (as
originator or servicer) or that permits transfers of funds from this account to another account of the
same depositor at the same institution or permits withdrawals (payments directly to the depositor)
from the account when such transfers or withdrawals are made by mail, messenger, ATM, or in
person or when such withdrawals are made by telephone (via check mailed to the depositor)
regardless of the number of such transfers or withdrawals.
5. Deposits or accounts maintained in connection with an arrangement that permits the depositor to
obtain credit directly or indirectly through the drawing of a negotiable or nonnegotiable check,
draft, order or instruction or other similar device (including telephone or electronic order or
instruction) on the issuing depository institution that can be used for the purpose of making
payments or transfers to third parties or others, or to a deposit account of the depositor.
6. All deposits other than time deposit and savings deposit accounts, including those accounts that
are time and savings deposits in form but that the Federal Reserve Board has determined, by rule
or order, to be transaction accounts.
7. Interest paid by crediting transaction accounts.
Transaction accounts do not include:
1. Savings deposits (including accounts commonly known as money market deposit accounts
(MMDAs)). Please note, however, that an account that otherwise meets the definition of a savings
deposit but that authorizes or permits the depositor to exceed the withdrawal or transfer limitations
specified for that account is a transaction account. Please refer to the instructions for savings
deposits for further detail.
2. Primary obligations maturing in less than seven days if they take the form of ineligible
acceptances or of obligations issued by the reporting institution's affiliates described in Section 1,
Subsection E.4. (To be reported in Item 1 of Schedule AA.)

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SUMMARY OF TRANSACTION ACCOUNT CLASSIFICATIONS
A. Always regarded as transaction accounts:
1. Demand deposits.
2. NOW accounts.
3. Share draft accounts.
4. ATS accounts (automatic transfer service accounts).
5. Accounts (other than savings deposits) from which payments may be made to third parties by
means of an ATM or an RSU, or other electronic device including by debit card.
6. Accounts (other than savings deposits) that permit third party payments through use of checks,
drafts, negotiable instruments, or other similar instruments.
7. Accounts that are time or savings deposits in form but that the Federal Reserve Board has
determined, by rule or order, to be transaction accounts.
B. Deposits or accounts that are regarded as transaction accounts if the following specified conditions exist:
1. Accounts that otherwise meet the definition of savings deposits but that authorize or permit the
depositor to exceed the transfer and withdrawal rules for a savings deposit.
2. Any deposit or account that otherwise meets the definition of a time deposit but that allows
withdrawals within the first six days after the date of deposit and that does not require an early
withdrawal penalty of at least seven days' simple interest on amounts withdrawn within those first
six days, unless the deposit or account meets the definition of a savings deposit. Any such
deposit or account that meets the definition of a savings deposit shall be reported as a savings
deposit; otherwise it shall be reported as a demand deposit, which is a transaction account.
3. The remaining balance of a time deposit from which a partial early withdrawal is made, unless
the remaining balance either (a) is subject to additional early withdrawal penalties of at least
seven days' simple interest on amounts withdrawn within six days after each partial withdrawal
(in which case the deposit or account continues to be reported as a time deposit) or (b) is placed
in an account that meets the definition of a savings deposit (in which case the deposit or account
shall be reported as a savings deposit). Otherwise, the deposit or account shall be reported as a
demand deposit, which is a transaction account.
C. Not regarded as transaction accounts (unless specified above):
1. Savings deposits (including accounts commonly known as money market deposit accounts
(MMDAs)).
2. Accounts that permit telephone or preauthorized transfers or transfers by ATMs or RSUs to repay
loans made or serviced by the same depository institution.
3. Accounts that permit telephone or preauthorized withdrawals where the proceeds are to be mailed
to or picked up by the depositor.
4. Accounts that permit transfers to other accounts of the depositor at the same institution through
ATMs or RSUs.

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Demand Deposits (Items A.1.a through A.1.c)
For Items A.1.a through A.1.c of the report, demand deposits include deposits described in Section 1,
Subsection E.1, and primary obligations described in Section 1, Subsection E.3, that are payable immediately
on demand, or that are issued with an original maturity or required notice period of less than seven days, or
that represent funds for which the depository institution does not reserve the right to require at least seven
days' written notice of an intended withdrawal.
Include as demand deposits:
1. All checking accounts, including those pledged as collateral for loans or maintained as
compensating balances. However, do not include NOW accounts, which are reported in Item
A.2.
2. All deposit accounts that are subject to immediate withdrawal by negotiable or transferable
instruments for the purpose of making transfers to third parties and that are noninterest-bearing
(e.g., NINOW accounts). However, do not include NOW accounts, which are reported in Item
A.2.
3. Cashier's checks, certified checks, teller's checks, and other officer's checks issued for any
purpose including those issued in payment for services, dividends, or purchases that are drawn on
the reporting bank by any of its duly authorized officers and that are outstanding on the report
date, and include:
A. Those drawn by the reporting institution on itself and not payable at or through another
depository institution.
B. Those drawn by the reporting institution and drawn on, or payable at or through, another
depository institution on a zero-balance account or an account that is not routinely
maintained with sufficient balances to cover checks drawn in the normal course of business
(including accounts where funds are remitted by the reporting institution only when it has
been advised that the checks or drafts have been presented).
NOTE: Those checks drawn by the reporting institution on a deposit account at another
depository institution which the reporting institution routinely maintains with sufficient
balances to cover checks or drafts drawn in the normal course of business should be excluded
from Item A.1, Demand deposits, and recorded directly as a reduction in Item B.1, Demand
balances due from depository institutions in the U.S.
C. Those checks drawn by the reporting institution on, or payable at or through, a Federal
Reserve Bank or a Federal Home Loan Bank.
4. Funds received or held in connection with traveler's checks sold (but not drawn) by the reporting
bank, until the proceeds of the sale are remitted to another party. Also includes other funds
received or held in connection with any other checks used (but not drawn) by the reporting bank,
until the amount of the checks is remitted to another party.
5. Money orders issued for any purposes (including those issued in payment for services, dividends,
or purchases) that are drawn on the reporting bank and are outstanding on the report date should
be reported as deposits. In addition, funds received or held for money orders sold, but not drawn
by the reporting bank should be included as deposits until the proceeds of the sale are remitted to
another party.

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6. Funds received or held in connection with letters of credit issued to customers, including funds
credited to cash collateral accounts and similar accounts.
7. Unposted credits and suspense accounts.
8. Withheld taxes, withheld insurance premiums, and other funds withheld from salaries of the
reporting institution's employees. Also include taxes withheld from distributions or payments
from pensions, annuities, and other deferred income including IRAs.
9. Funds received or held in escrow accounts that may be withdrawn on demand or within six days
from the date of deposit, except escrow funds that meet the definition of savings deposits or time
deposits (see Section 1, Subsection H, for general treatment of escrow funds).
10. An obligation to pay on demand or within six days a check (or other instrument, device, or
arrangement for the transfer of funds) drawn on the reporting institution, where the account of the
institution's customer already has been debited.
11. For any depositor that is not eligible to hold a NOW account, accounts that otherwise meet the
definition of savings deposits but under the terms of which, or by practice of the reporting
institution, the depositor is authorized or permitted to exceed the withdrawal or transfer
limitations specified for savings deposits. (Please refer to the instructions for savings deposits for
further detail.)
12. Any deposit or account that otherwise meets the definition of a time deposit but that allows
withdrawals within the first six days after the date of deposit and that does not require an early
withdrawal penalty of at least seven days' simple interest on amounts withdrawn within those first
six days, unless the deposit or account meets the definition of a savings deposit. Any such
deposit or account that meets the definition of a savings deposit shall be reported as a savings
deposit; otherwise it shall be reported as a demand deposit.
13. The remaining balance of a time deposit from which a partial early withdrawal is made, unless
the remaining balance either (a) is subject to additional early withdrawal penalties of at least
seven days' simple interest on amounts withdrawn within six days after each partial withdrawal
(in which case the deposit or account continues to be reported as a time deposit) or (b) is placed
in an account that meets the definition of a savings deposit (in which case the deposit or account
shall be reported as a savings deposit). Otherwise, the deposit or account shall be reported as a
demand deposit. (Please refer to the instructions for time deposits for further detail.)
14. All matured time certificates of deposit, even if interest is paid after maturity, except matured
time certificates of deposit during the grace period after maturity, if such a grace period exists.
(See 12 CFR 329.104).
Excludes matured time certificates of deposits and proceeds from time deposits, open account,
wherein the deposit agreement specifically provides for the funds to be transferred to an account
type other than a demand deposit.
15. The institution's liability on primary obligations described in Section 1, Subsection E.3(a), (b),
(d), (e) and (f), that are issued by the reporting institution to nonexempt entities in original
maturities of less than seven days.
16. Due bills described in Section 1, Subsection E.3(c), that are issued by the reporting institution in
original maturities of less than seven days and that are not collateralized within three business
days by similar securities.

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17. Any funds received by the reporting depository institution's affiliate and later channeled to the
reporting institution by the affiliate in the form of a demand deposit.
18. Credit balances.
19. Funds received as a result of payment errors (See Section 1, Item I).

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Exclude from demand deposits the following categories of liabilities even if they have an original maturity of
less than seven days:
1. Savings deposits (including accounts commonly known as money market deposit accounts
(MMDAs)).
2. Hypothecated deposits. Please note that for purposes of this report, hypothecated deposits do not
include deposits simply serving as collateral for loans.
3. Funds received and credited to dealer reserve or dealer differential accounts that the reporting
institution is not obligated to make available to either the dealer or the dealer's creditors.
4. Checks or drafts drawn by the reporting institution on a deposit account at another depository
institution which the reporting institution routinely maintains with sufficient balances to cover
checks or drafts drawn in the normal course of business.
5. Repurchase agreements involving obligations of, or obligations fully guaranteed as to principal
and interest by, the U.S. Government or a federal agency, or the shares of a money market mutual
fund whose portfolio consists wholly of obligations of, or obligations fully guaranteed as to
principal and interest by, the U.S. Government or a federal agency.
6. Due bills, issued to any entity, that are collateralized within three business days by securities
similar to the securities purchased (see Section 1, Subsection E.3.c).
7. Except for due bills that are not collateralized within three business days by a similar security,
any primary obligation issued or undertaken as a means of obtaining funds, regardless of the use
of the proceeds, when transacted with the U.S. office of the following exempt entities:
A. U.S. commercial banks and trust companies and their operations subsidiaries;
B. a U.S. branches or agencies of a bank organized under foreign (non-U.S.) law (including
U.S. branches and agencies of foreign official banking institutions);
C. banking Edge and agreement corporations;
D. mutual and stock savings banks;
E. building or savings and loan associations, and homestead associations;
F. cooperative banks;
G. industrial banks;
H. credit unions (including corporate central credit unions);
I.

the U.S. Government and its agencies and instrumentalities such as the Office of Thrift
Supervision, Federal Home Loan Banks, Federal Intermediate Credit Banks, Federal Land
Banks, Banks for Cooperatives, the Federal Home Loan Mortgage Corporation, Federal
Deposit Insurance Corporation, Federal National Mortgage Association, Federal Financing
Bank, Student Loan Marketing Association, National Credit Union Share Insurance Fund
and National Credit Union Administration Central Liquidity Facility;

J.

Export-Import Bank of the U.S.;

K. Government Development Bank of Puerto Rico;
L. Minbanc Capital Corporation;

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M. securities dealers, but only when the borrowing (a) has a maturity of one day, (b) is in
immediately-available funds, and (c) is in connection with the clearance of securities;
N. the U.S. Treasury (U.S. treasury tax and loan account note balances);
O. New York State investment companies (chartered under Article XII of the New York State
Banking Code) that perform a banking business and that are majority-owned by one or more
non-U.S. banks; and
P. investment company or trust whose entire beneficial interest is held exclusively by one or
more depository institutions.
8. Funds obtained from state and municipal housing authorities under loan-to-lender programs
involving the issuance of tax exempt bonds and the subsequent lending of the proceeds to the
reporting institution for housing finance purposes.
9. Borrowings from a Federal Reserve Bank.
10. Amounts of outstanding bankers acceptances that are created by the reporting institution and that
are of the type that are ineligible for discount at Federal Reserve Banks (primary obligations
described in Section 1, Subsection E.4.b). These transactions are reported in Schedule AA or BB.
11. Certain obligations issued by the reporting institution's nondepository affiliates (primary
obligations described in Section 1, Subsection E.4.a). These transactions are reported in Schedule
AA or BB.
NOTE: Unless created as a result of a bona fide cash management arrangement, overdrafts in
demand deposit accounts are not to be treated as negative demand deposits and should not be
netted against positive balances. For further detail, please refer to Section 1, Subsection C.5,
Overdrafts or negative balances.

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Report Item A.1.a--Demand Deposits Due to Depository Institutions
Include in this item the balance of all demand deposits in the form of deposits that are due to:
1. U.S. offices of the following institutions:
A. U.S. commercial banks (including affiliates of the reporting institution that engage in a
commercial banking business and private banks) and trust companies conducting a
commercial banking business;
B. industrial banks;
C. bankers' banks that are organized as commercial banks;
D. branches and agencies of foreign (non-U.S.) banks (including branches and agencies of
foreign official banking institutions);
E. banking Edge and agreement corporations; and
F. New York State investment companies (chartered under Article XII of the New York State
Banking Code) that perform a banking business and that are majority-owned by one or more
non-U.S. banks.
2. Non-U.S. offices of:
A. other U.S. banks and banking edge and agreement corporations (that is, other than the
reporting institution's own foreign offices); and
B. commercial banks, merchant banks, discount houses, and similar banking institutions
(including banking affiliates of the reporting institution or its parent) organized under the
laws of a foreign country, Puerto Rico, Guam, American Samoa, or the Virgin Islands, or
other territories of the United States. (Exclude foreign official banking institutions.)
3. Mutual or stock savings banks (including those that are bankers' banks).
4. Building or savings and loan associations, homestead associations and cooperative banks
(including those that are bankers' banks).
5. Credit unions (including corporate central credit unions).
Include in this item those accounts issued by the reporting institution to the depository institutions
listed in 1 through 5 above that otherwise meet the definition of savings deposits but under the terms of which,
or by practice of the depository institution, the depositor is authorized or permitted to exceed the withdrawal
or transfer limitations specified for that account. (Please refer to the instructions for savings deposits for
further detail.)
Also include in this item all due bills that are issued by the reporting institution to U.S. offices of
those institutions listed in 1, 3, 4, and 5 above in original maturities of less than seven days and that are not
collateralized within three business days by similar securities. Except for such due bills, all other primary
obligations should be excluded from Item A.1.a. For additional information on these primary obligations to
be excluded, please see Items 4 and 5 of the exclusion list provided below.
All demand balances in the form of due bills issued to the U.S. offices of the institutions listed in 1, 3,
4, and 5 above and all other demand balances due to the institutions listed in 1.F, 2, 3, 4, and 5 above shall be
reported on a gross basis. Except for due bills, all demand balances due to an institution that is

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listed in 1.A through 1.E above may be reported net of balances “due from” those institutions (see calculations
of net reciprocal balances below).

Calculation of net reciprocal balances (an example):
Reciprocal balances arise when two “banks” maintain deposit accounts with each other; that
is, each bank has both a “due to” and a “due from” balance with the other bank. If the demand
balance “due from” a bank is greater than the demand deposit “due to” that same bank, the “due
to” balance should be subtracted from the “due from” resulting in a net amount “due from” that
bank, which should be included in Item B.1. On the other hand, if the balance “due to” a bank is
greater than the balance “due from” that same bank, the “due from” balance should be subtracted
from the “due to” balance resulting in a net amount “due to” that bank. To arrive at the net
reciprocal balance, the net amount “due to” each bank should be summed, and the sum should be
included in Item A.1.a.
All net reciprocal balances should be computed only after adjustment is made for overdrawn
accounts by placing each overdrawn account at zero balance.
Example: Calculation of Net Reciprocal Balances
A.

Bank A
Bank B
Bank C
B.

$ 200,000
$ 500,000
$1,700,000

$1,000,000
$ 300,000
$2,500,000

Net “Due to” Banks
Bank A
Bank B
Bank C

C.

“Due from” Banks

“Due to” Banks

Net “Due from” Banks

0
$ 200,000
0

$ 800,000
0
$ 800,000

Sum of Net Reciprocal Balances
“Due to” Banks

“Due from” Banks

$ 200,000

$1,600,000

(Report in Item A.1.a)

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Exclude from Item A.1.a:
1. Demand deposits due to:
A. Nonmember “respondent” depository institutions to the extent that such deposits represent
balances that your institution, serving as pass-through agent or correspondent, has passed through
to the Federal Reserve Bank for the “respondent.”
B. Nondeposit and limited purpose trust companies (reported in Item A.1.c).
C. Trust departments of the reporting institution and of other depository institutions (reported in
Item A.1.c).
D. Nondepository affiliates of the reporting institution and of other depository institutions (reported
in Item A.l.c).
E. The U.S. Government and its agencies and instrumentalities (reported in Item A.1.b or A.1.c),
including the Office of Thrift Supervision, Resolution Trust Corporation, Federal Home Loan
Banks, Federal Intermediate Credit Banks, Federal Land Banks, Banks for Cooperatives, the
Federal Home Loan Mortgage Corporation, Federal Deposit Insurance Corporation, Federal
National Mortgage Association, Federal Financing Bank, Student Loan Marketing Association,
National Credit Union Share Insurance Fund, National Credit Union Administration Central
Liquidity Facility, and Export-Import Bank of the U.S.
F. Any non-U.S. office of the reporting institution located outside the 50 states of the United States
and the District of Columbia, or on a U.S. military facility abroad, wherever located.
G. Foreign official banking institutions (reported in Item A.1.c).
2. A demand deposit due to a depository institution that is negative (i.e., overdrawn). The amount of
such negative balance should be regarded as zero when computing the deposit total.
3. Any negative “due from” balance which results when an account at another depository institution
which the reporting institution routinely maintains with sufficient balances to cover checks or drafts
drawn in the normal course of business becomes overdrawn; negative balances that result from such
occasional overdrafts are regarded as borrowings by the reporting institution and should not be
included on this report.
4. Certified checks, cashier's checks, teller's checks, and officer's checks or any other instrument drawn
by the reporting institution.
5. All primary obligations (including due bills) issued to non-U.S. offices of U.S. depository institutions
and of foreign (non-U.S.) banks (included in the calculation of net Eurocurrency liabilities, see
Schedule CC). (Please refer to Section 1, Subsection E for a more detailed description of primary
obligations.)
6. Except for those due bills noted earlier for inclusion, all other primary obligations that are issued to
U.S. offices of depository institutions are excluded from Item A.l.a and from this report. Such
obligations include, but are not limited to, federal funds transactions and repurchase agreements with
U.S. offices of depository institutions.

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Report Item A.1.b--U.S. Government Demand Deposits
Include in this item the balance of all demand deposit accounts in the form of deposits that are designated as
federal public funds, such as:
1. U.S. treasury tax and loan accounts, including deposits of Federal income tax withheld from
employee salaries and from distributions or payments from pensions, annuities, and other
deferred income including IRAs; social security tax deposits and other Federal tax payments; and
the proceeds from sales of U.S. Savings Bonds. (Exclude U.S. treasury tax and loan account note
balances.)
2. U.S. treasury general accounts and special collection accounts.
3. U.S. Treasury compensating balance demand deposit accounts.
4. Postmaster's demand deposit accounts.
5. Demand deposit accounts of the following:
A. the Tennessee Valley Authority and other government-owned corporations; and
B. disbursing officers of the Department of Defense and Department of the Treasury.
6. Demand deposit accounts of other public funds that are subject to control or regulation by the
United States government, including accounts of military organizations, such as post exchanges,
military clubs and similar entities.
Please note that for reporting this item, demand deposits include only deposits held for the credit of
the U.S. Government, and exclude all primary obligations to the U.S. Government. Such primary obligations
are exempt from reserve requirements.
Exclude from this Item:
1. Demand deposits due to U.S. Government agencies and instrumentalities (reported in Item
A.1.c), including the Office of Thrift Supervision, Federal Home Loan Banks, Federal
Intermediate Credit Banks, Federal Land Banks, Banks for Cooperatives, the Federal Home Loan
Mortgage Corporation, Federal Deposit Insurance Corporation, Federal National Mortgage
Association, Federal Financing Bank, Student Loan Marketing Association, National Credit
Union Share Insurance Fund, National Credit Union Administration Central Liquidity Facility,
and Export-Import Bank of the U.S.
2. Demand deposits held for state or local governments or their political subdivisions (reported in
Item A.1.c).
3. U.S. treasury tax and loan account note balances (see below).
4. Primary obligations.

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U.S. treasury tax and loan account--Treatment of Note Option and Remittance Option:
Only the deposits credited to U.S. treasury tax and loan demand deposit accounts that represent
funds received as of the close of business of the current day should be reported as U.S. treasury tax and
loan Demand Deposits. Funds credited to Tax and Loan Demand Deposit Accounts as of the close of
business on previous days should already have been remitted to the Federal Reserve Bank or
automatically converted into open-ended interest-bearing notes, depending on the option selected by
the reporting institution. Interest-bearing U.S. treasury tax and loan account note balances are exempt
from reserve requirements and should not be reported as deposits.

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Report Item A.1.c--Other Demand Deposits
Include in this item the balance of all other demand deposits in the form of deposits and primary obligations,
including:
1. Demand deposits in the form of deposits held for:
A. individuals, partnerships, and corporations, wherever located;
B. states and local governments and their political subdivisions;
C. U.S. Government agencies and instrumentalities including the Office of Thrift Supervision,
Resolution Trust Corporation, Federal Home Loan Banks, Federal Intermediate Credit
Banks, Federal Land Banks, Banks for Cooperatives, the Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance Corporation, Federal National Mortgage Association,
Federal Financing Bank, Student Loan Marketing Association, National Credit Union Share
Insurance Fund, National Credit Union Administration Central Liquidity Facility, and
Export-Import Bank of the U.S.;
D. nondeposit and limited purpose trust companies;
E. trust departments of the reporting institution and of other institutions (see Part I, Section 1,
Subsection G, for “Treatment of Trust Funds”);
F. nondepository affiliates of the reporting institution and of other depository institutions; and
G. Foreign (non-U.S.) governments (including Foreign official banking institutions), both
national and regional, and international institutions.
2. Withheld state and local government taxes, insurance premiums, and similar items (but not
withheld Federal income tax payments, which are reported in Item A.1.b).
3. Cashier’s checks, certified checks, teller's checks, and other officer’s checks issued for any
purpose including those issued in payment for services, dividends, or purchases that are drawn on
the reporting bank by any of its duly authorized officers and that are outstanding on the report
date. This includes:
A. Those drawn by the reporting institution on itself and not payable at or through another
depository institution.
B. Those drawn by the reporting institution and drawn on, or payable at or through, another
depository institution on a zero-balance account or an account that is not routinely
maintained with sufficient balances to cover checks drawn in the normal course of business
(including accounts where funds are remitted by the reporting institution only when it has
been advised that the checks or drafts have been presented).
NOTE: Those checks drawn by the reporting institution on a deposit account at another
depository institution which the reporting institution routinely maintains with sufficient
balances to cover checks or drafts drawn in the normal course of business should be excluded
from Item A.1, Demand deposits, and recorded directly as a reduction in Item B.1, Demand
balances due from depository institutions in the U.S.
C. Those checks drawn by the reporting institution on, or payable at or through, a Federal
Reserve Bank or a Federal Home Loan Bank.

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4. Funds received or held in connection with traveler's checks and teller’s checks sold (but not
drawn) by the reporting bank, until the proceeds of the sale are remitted to another party. Also
includes other funds received or held in connection with any other checks used (but not drawn)
by the reporting bank, until the amount of the checks is remitted to another party.
5. Money orders issued for any purposes (including those issued in payment for services, dividends,
or purchases) that are drawn on the reporting bank and are outstanding on the report date should
be reported as deposits. In addition, funds received or held for money orders sold, but not drawn
by the reporting bank should be included as deposits until the proceeds of the sale are remitted to
another party.
6. Unposted credits and suspense accounts.
7. Funds received in connection with letters of credit issued to customers, including funds credited
to cash collateral accounts or similar accounts.
8. Funds deposited to the credit of the reporting institution's own trust department where the funds
involved are utilized to cover checks or drafts.
9. Funds received or held in escrow accounts that may be withdrawn on demand or within six days
from the date of deposit, except escrow funds held as savings deposits. (See Section 1,
Subsection H for general treatment of escrow funds.)
10. Noninterest-bearing deposits subject to negotiable orders of withdrawal (NINOWs).
11. Deposits subject to payment orders of withdrawal (POWs).
12. For any depositor listed in 1.A through 1.G above that is not eligible to hold a NOW account,
include in this item accounts that otherwise meet the definition of savings deposits but under the
terms of which, or by practice of the depository institution, the depositor is authorized or
permitted to exceed the withdrawal or transfer limitations specified for that account. (See the
entry in the Glossary for NOW accounts for a list of eligible holders.)
Please refer to the instructions for savings deposits for further detail.
13. Any deposit or account that otherwise meets the definition of a time deposit but that allows
withdrawals within the first six days after the date of deposit and that does not require an early
withdrawal penalty of at least seven days' simple interest on amounts withdrawn within those first
six days, unless the deposit or account meets the definition of a savings deposit. Any such
deposit or account that meets the definition of a savings deposit shall be reported as a savings
deposit; otherwise it shall be reported as a demand deposit.
14. The remaining balance of a time deposit from which a partial early withdrawal is made, unless
the remaining balance either (a) is subject to additional early withdrawal penalties of at least
seven days' simple interest on amounts withdrawn within six days after each partial withdrawal
(in which case the deposit or account continues to be reported as a time deposit) or (b) is placed
in an account that meets the definition of a savings deposit. Otherwise, the deposit or account
shall be reported as a demand deposit. (Please refer to the instructions for time deposits for
further detail.)

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15. Due bills that remain uncollateralized by similar securities for more than three business days and
that are issued by the reporting institution in maturities of less than seven days to the entities
listed in 1.A through 1.G above.
16. Primary obligations (other than due bills) issued to nonexempt entities, except:
A. Amounts of outstanding bankers acceptances that are created by the reporting institution and
that are of the type that are ineligible for discount at Federal Reserve Banks (primary
obligations described in Section 1, Subsection E.4.b). These transactions are reported in
Schedule AA, Item 1 or Schedule BB, Item 2.
B. Certain obligations issued by the reporting institution's nondepository affiliates (primary
obligations described in Section 1, Subsection E.4.a). These transactions are reported in
Schedule AA, Item 1 or Schedule BB, Item 2.
Please note that all primary obligations issued to foreign national governments, foreign official
banking institutions, international institutions, and non-U.S. branches of U.S. depository institutions and nonU.S. branches and agencies and head offices of non-U.S. depository institutions are excluded from this item
and from this report and should be included in the calculation of net Eurocurrency liabilities (Schedule CC).
Primary obligations having a maturity of less than seven days issued to a non-U.S. parent bank's
holding company if the holding company is not a bank, a nonbanking subsidiary of such a holding company, a
nonbanking subsidiary of a non-U.S. parent bank's holding company if the holding company is a bank, and a
non-U.S. parent bank's nonbanking subsidiary must be included in this item and excluded from the calculation
of net Eurocurrency liabilities (Schedule CC).

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Other Transaction Accounts (Item A.2)
“Other transaction accounts” are all transaction accounts other than demand deposits as defined above,
and include ATS accounts, NOW accounts, and telephone and preauthorized transfer accounts, as defined
below.
Report Item A.2--ATS Accounts, NOW Accounts/Share Drafts, and Telephone and Preauthorized
Transfers Telephone and Preauthorized Transfers
Report in Item A.2 the sum of the balance of all ATS accounts, NOW accounts, and telephone and
preauthorized transfer accounts. These types of accounts have different characteristics and regulatory
distinctions. The definition of each type of account continues to be provided separately below. Each type of
account continues to be referenced separately as appropriate elsewhere in the instructions.
Please also note that an account that otherwise meets the definition of a savings deposit but that
authorizes or permits the depositor to exceed the withdrawal or transfer limitations specified for savings
deposits is a transaction account. If the depositor is ineligible to hold a NOW account, the account is
considered a demand deposit and shall be reported in the appropriate category under Item A.1. If the
depositor is eligible to hold a NOW account, the account is considered either a NOW account, a telephone or
preauthorized transfer account, or an ATS account; all such accounts shall be reported in Item A.2.
Include in this item:
1. ATS (automatic transfer service) Accounts are deposits or accounts of individuals or sole
proprietorships on which the depository institution has reserved the right to require at least seven
days’ written notice prior to withdrawal or transfer of any funds in the account and from which,
pursuant to written agreement arranged in advance between the reporting institution and the
depositor, withdrawals may be made automatically through payment to the depository institution
itself or through transfer of credit to a demand deposit or other account in order to cover checks
or drafts drawn upon the institution or to maintain a specified balance in, or to make periodic
transfers to, such other accounts.
Some institutions may have entered into agreements with their customers providing that in the
event the customer should overdraw a checking or NOW account, the institution will transfer
from the customer’s savings account an amount sufficient enough to cover the overdraft. The
availability of the overdraft protection plan would not in and of itself require that such a savings
account be regarded as a transaction account provided that the overall transfer and withdrawal
restrictions of a savings deposit are not exceeded. Please refer to the instructions for savings
deposits for further detail.
2. NOW (Negotiable Order of Withdrawal) Accounts represent interest-bearing deposits (1) on
which the depository institution has reserved the right to require at least seven days’ written
notice prior to withdrawal or transfer of any funds in the account and (2) that can be withdrawn
or transferred to third parties by issuance of a negotiable or transferable instruments. NOW
accounts are authorized by federal law and are limited to accounts in which the entire beneficial
interest is held by:
a. individuals or sole proprietorships;

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b. governmental units including the federal government and its agencies and
instrumentalities; state governments; county and municipal governments and their
political sub-divisions; the District of Columbia; and the Commonwealth of Puerto Rico,
American Samoa, Guam, and any territory of possession of the United States and their
political subdivisions; or
c. an organization which is operated primarily for religious, philanthropic, charitable,
educational, political or other similar purposes and which is not operated for profit (under
Federal Reserve Board rules, these include organizations, partnerships, corporations, or
associations that are not organized for profit and are described in section 501(c)(3)
through (13) and (19) and section 528 of the Internal Revenue Code (26 U.S.C. (I.R.C.
1954) §501(c)(3) through (13), (19) and §527 through §528), such as church
organizations; professional associations; trade associations; labor unions; fraternities,
sororities and other similar social organizations; and nonprofit recreational clubs).
Please note, however, that the following types of organization as described in the cited
provisions of the Internal Revenue Code are among those not eligible to maintain NOW
accounts:
A. credit unions and other mutual depository institutions (§501(c)(14));
B. mutual insurance companies (§501(c)(15));
C. crop financing organizations (§501(c)(16));
D. Organization created to function as part of a qualified group legal services plan
(§501(c)(20)); and
E. Farmers’ cooperatives (§521).
NOTE: Also include in the balance of all NOW accounts of certain other nonprofit
organizations that may not fall within c. above but that had established NOW accounts with
the reporting institution prior to September 1, 1981.
Please note that there are no regulatory requirements with respect to minimum balances to be
maintained in a NOW account or to the amount of interest that may be paid on a NOW
account. However, any depository institution may place its own restrictions or requirements
on NOW accounts as long as the accounts meet the minimum criteria set forth above and in
Regulation D. All such NOW accounts shall be reported in Report Item A.2, including those
that previously were referred to as “Super NOW” accounts.
3. Telephone and preauthorized transfer accounts are deposits or accounts, other than savings
deposits,
a. in which the entire beneficial interest is held by a party eligible to hold a NOW account,
b. on which the reporting institution has reserved the right to require at least seven days’
written notice prior to withdrawal or transfer of any funds in the account, and

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c. under the terms of which, or by practice of the reporting institution, the depositor is
permitted or authorized to make more than six withdrawals per month or statement cycle
(or similar period) of at least four weeks for purposes of transferring funds to another
account of the depositor at the same institution (including a transaction account) or for
making payment to a third party by means of preauthorized transfer, or telephonic
(including data transmission) agreement, order or instruction. An account that permits or
authorizes more than six such withdrawals in a month is a transaction account whether or
not more than six such withdrawals actually are made in a month. A month is a calendar
month, or any period approximately a month that is at least 4 weeks long, such as a
statement cycle.
A preauthorized transfer includes any arrangement by the reporting institution to pay a third
party from the account of depositor upon written or oral instruction (including an order
received through an automated clearing house (ACH)), or any arrangement by the reporting
institution to pay a third party from the account of the depositor at a predetermined time or on
a fixed schedule.
Include in this item deposits or accounts maintained in connection with an arrangement that
permits the depositor to obtain credit directly or indirectly through the drawing of a
negotiable or nonnegotiable check, draft, order or instruction or other similar device
(including telephone or electronic order or instruction) on the issuing institution that can be
used for the purpose of making payments or transfers to third parties or others, or to another
deposit account of the depositor.
Also include in this item the balance of deposits or accounts that otherwise meet the
definition of time deposits, but from which payments may be made to third parties by means
of debit card (including Point of Sale Debits), an automated teller machine, remote service
unit or other electronic device, regardless of the number of payments made.
However, an account is not a transaction account merely by virtue of arrangements that
permit the following types of transfers or withdrawals, regardless of the number:
1. Transfers for the purpose of repaying loans and associated expenses at the
same depository institution (as originator or servicer).
2. Transfers of funds from this account to another account of the same depositor
at the same depository institution when made by mail, messenger, automated
teller machine, or in person.
3. Withdrawals for payment directly to the depositor when made by mail, messenger, automated teller machine, in person, or by telephone (via check
mailed to the depositor).
-------------------------------------------------- ---------------------- -Report Item A.3--Total Transaction Accounts
Report in this item the sum of Items A.1.a, A.1.b, A.1.c, and A.2.

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Deductions from Transaction Accounts (Items B.1 and B.2)
Report Item B.1--Demand Balances Due From Depository Institutions in the U.S.
Report in Item B.1 all balances subject to immediate withdrawal by the reporting institution that are
due from U.S. offices of banks or other depository institutions. Balances to be reported must be the amount
reflected on the reporting institution's books rather than the amount on the books of the other depository
institution.
Include in this item all balances subject to immediate withdrawal in the form of deposits (exclude
primary obligations) due from U.S. offices of the following institutions located in the U.S.:
1. U.S. commercial banks and trust companies conducting a commercial banking business;
2. all depository institutions that are bankers' banks as defined in 12 CFR §204.121;
3. Banking Edge and agreement corporations. For banking Edge and agreement corporations,
report all demand balances due from depository institutions in the U.S. (includes affiliated U.S.
depository institutions) and all demand balances due from the domestic parent bank (unless the
reporting institution's parent is a banking Edge and agreement corporation). Exclude from B.1.
all demand balances due from the reporting institution's non-U.S. parent bank. Refer to next page
for more detail on transactions to be excluded.
4. industrial banks;
5. U.S. branches and agencies of foreign (non-U.S.) banks (including U.S. branches and agencies of
foreign official banking institutions);
6. mutual or stock savings banks;
7. credit unions; and
8. building or savings and loan associations, homestead associations or cooperative banks.
Also include in this item balances subject to immediate withdrawal that are due from a correspondent
depository institution and that have not been passed through to the Federal Reserve by the correspondent
institution.
NOTE: In general, all deposit accounts having a negative balance as of the close of business each day should
be regarded as having a zero balance when computing deposits totals. For more information, please refer to
the General Instructions, Section 1, Subsection C.5, Overdrafts or negative balances.
Reciprocal Balances: For purposes of this report, the reporting institution may report reciprocal demand
balances with the institutions listed in 1 through 5 above either on a net-by-institution basis or on a gross basis,
whichever method proves to be less burdensome. Those institutions reporting reciprocal demand balances on
a net basis should see the sample calculation provided earlier in the instructions for Report Item A.1.a,
Demand deposits due to depository institutions. All demand balances with the institutions listed in 6 through
8 above should be reported gross of balances “due to” those institutions.

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Exclude from Item B.1:
1. All balances due from Federal Reserve Banks, including:
A. your institution's reserve balances held directly with the Federal Reserve;
B. your institution's reserve balances that were passed through to the Federal Reserve by a
correspondent;
C. reserve balances of another institution for which your institution is serving as pass-through
agent (correspondent) and that were passed through by your institution to the Federal
Reserve; and
D. your institution's clearing balance maintained at a Federal Reserve Bank.
Note, however, that if your institution passes its reserves to the Federal Reserve through a
correspondent, any balances subject to immediate withdrawal that you have at the correspondent
that were not passed through by the correspondent to the Federal Reserve should be reported in
this item.
2. Demand deposit balances due from a Federal Home Loan Bank.
3. Demand balances due from National Credit Union Administration Central Liquidity Facility.
4. Demand deposit balances due from other depository institutions that are pledged by the reporting
institution and are not available for immediate withdrawal.
5. Time and savings deposit balances held at other depository institutions.
6. Trust funds deposited in other depository institutions by the reporting institution's trust
department.
7. Amounts at other depository institutions that represent balances that will not be available for
immediate withdrawal until a future date but that have been booked by the reporting institution in
advance.
8. Cash items in process of collection (reported in Item B.2).
9. Federal funds sold to other depository institutions.
10. Any deposit account due to a correspondent or other depository institution that is overdrawn, or
amounts that, if charged against a correspondent's account by the reporting institution, would
result in an overdraft in that account.
11. Any deposit account due from a correspondent or other depository institution that is negative
(i.e., overdrawn). The amount of such a negative balance should be regarded as zero when
computing the deposit total.
12. Balances that are due from:
A. any non-U.S. office of any U.S. depository institution;
B. trust companies that do not conduct a commercial banking business;
C. any non-U.S. office of any foreign (non-U.S.) bank;

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D. New York State investment companies (chartered under Article XII of the New York State
Banking Code) that perform a banking business and that are majority owned by one or more
non-U.S. banks;
E. private banks;
F. Federal Home Loan Banks; and
13. Demand deposit balances due from a smaller depository institution in circumstances where the
reporting (and larger) depository institution has moved funds to the smaller depository institution
to take advantage of the lower reserve requirements imposed on smaller depository institutions
(i.e., to make use of the low reserve tranche) and has received the funds back in a reserve-free
transaction.
14. Payment errors (See Section 1, Item I).

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Report Item B.2--Cash Items in Process of Collection
Include as cash items in process of collection:
1. Checks or drafts in process of collection that are drawn on another depository institution and that
are payable immediately upon presentation in the U.S. (If the reporting institution is given
immediate credit for checks or drafts deposited with its correspondent, report such checks or
drafts in Item B.1. See Note below.) Include checks or drafts in the process of collection with:
A. Federal Reserve Banks.
B. Other depository institutions.
C. Clearing houses.
2. Checks or drafts on hand that will be presented for payment or forwarded for collection on the
following business day. Do not report any check or draft amount in cash items in process of
collection until after the check or draft is credited to a general ledger account.
3. Checks or drafts drawn on the Treasury of the United States that are in process of collection.
4. Other items in process of collection that are payable immediately upon presentation in the U.S.
and that are customarily cleared or collected by depository institutions as cash items, such as:
A. Matured bonds and coupons (including bonds and coupons that have been called and are
payable on presentation). (U.S. savings bonds that are cashed by the customer before
maturity are included as cash items in the process of collection.)
B. Money orders and traveler's checks.
C. NOW (Negotiable Order of Withdrawal), NINOW (Noninterest-bearing NOW), or POW
(Payment Order of Withdrawal) account drafts.
D. Credit union share drafts.
E. Bank drafts and Federal Reserve drafts.
F. Payable-through drafts that have been received by the reporting institution and that will be
forwarded to another depository institution.
G. Brokers' security drafts and commodity or bill of lading drafts (including arrival drafts) that
are payable immediately upon presentation in the U.S.
H. Amounts associated with automated payment arrangements in connection with payroll
deposits, federal recurring payments, and other items that are credited to a depositor's account
prior to the payment date to ensure that the funds are available on the payment date.
I.

Returned items drawn on other depository institutions.

J.

Unposted debits.

K. Food coupons and certificates.
NOTE: Checks or drafts in process of collection that are drawn on another depository institution and that are
payable immediately upon presentation in the U.S., are to be reported in either Item B.1., Demand balances
due from depository institutions, or Item B.2., Cash items in process of collection. Included are

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checks or drafts in the process of collection and presented for credit to Federal Reserve Banks, other
depository institutions, and clearinghouses. Checks or drafts that have been deposited for which the sending
(reporting) bank receives same day credit or other payment are reported in Item B.1. Alternatively, checks or
drafts in process of collection for which credit or other payment is expected beyond the current report day are
reported in Item B.2., until credit is received.
Checks and drafts forwarded to a Federal Reserve Bank are reported in Item B.2, until credit is given by the
local Reserve Bank. When cash letter credit is received, remove the appropriate amount from Item B.2.
NOTE: A cash letter credit received by a forwarding depository institution from a Federal Reserve Bank is
excluded from Item B.1., Demand balances due from depository institutions and should be included in Item
B.2., Cash items in process of collection.
Exclude from Cash Items in Process of Collection:
1. Items handled as noncash items, whether or not cleared through Federal Reserve Banks.
2. Items not payable in the U.S.
3. Items for which the reporting institution has already received credit.
4. A check or draft the paying (reporting) institution has dishonored for any reason, that is being
returned to the presenting bank for credit. Exemptions to this provision are any missent cash item
that does not contain either the institution's routing number or its name as the paying bank, and
which is being returned to the presenting depository institution for credit.
5. Commodity or bill of lading drafts (including arrival drafts) not yet payable (because the
merchandise against which the draft was drawn has not yet arrived), whether or not deposit credit
has been given.
6. Payable-through drafts received by the reporting institution, if acting in the capacity of a clearing
agent for a nondepository institution, that have not been collected from that nondepository
institution which is the drawer of the draft.
7. Credit card or debit slips in process of collection, whether or not deposit credit has been given.
8. Failed book entry security transactions. If a depository institution fails to deliver book-entry
securities and therefore does not receive the corresponding payment but credits the amount of the
anticipated payments to its customer(s), a cash item in the process of collection deduction from
gross transactions is not permissible.
9. Payment errors (See Section 1, Item I)
Treatment of cash items forwarded to Federal Reserve Banks
Cash items forwarded to a Federal Reserve Bank for collection and for credit should continue to be
reported as cash items until such time as credit actually has been given by a Federal Reserve Bank in
accordance with the appropriate time schedules established pursuant to Federal Reserve Bank “Operating
Circulars.”
Cash items in process of collection also should reflect the actual availability of funds received for
direct sent cash items.
Adjustment should be made to:

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1. Retain as cash items in process of collection the amounts for items sent directly to Federal Reserve
Banks in other districts that will arrive when those Federal Reserve offices are closed for a local or
regional holiday.
2. Remove from cash items in process of collection the amounts for items sent directly to Federal
Reserve Banks in other districts that will arrive when the reporting institution's Federal Reserve
offices are closed. Credit for such items will be given on a back-valued basis by the local Federal
Reserve Office.
Report Item C.1--Total Savings Deposits
Report in Item C.1 the balance of all savings deposits, as defined below, both personal and
nonpersonal, that are outstanding at the close of business each day.
A savings deposit is a deposit described in Section 1, Subsection E.1, or a primary obligation
described in Section 1, Subsection E.3, with respect to which the depositor is not required by the deposit
contract but may at any time be required by the depository institution to give written notice of an intended
withdrawal not less than seven days before withdrawal is made, and that is not payable on a specified date or
at the expiration of a specified time after the date of deposit.1
The term savings deposit also means a deposit or account, such as an account commonly known as a
passbook savings account, a statement savings account, or a money market deposit account (“MMDA”), that
otherwise meets the requirements of the preceding paragraph and from which, under the terms of the deposit
contract or by practice of the depository institution, the depositor is permitted or authorized to make no more
than six transfers and withdrawals, or a combination of such transfers and withdrawals, per calendar month or
statement cycle (or similar period) of at least four weeks, to another account (including a transaction account)
of the depositor at the same institution or to a third party by means of a preauthorized or automatic transfer, or
telephonic (including data transmission) agreement, order or instruction, and no more than three of the six
such transfers may be made by:
1. Checks or drafts - The institution at its option may use on a consistent basis either the date on the
check, draft, or similar item or the date the item is paid, in applying the limits on such items.
Procedures to be followed for ensuring that the permissible number of transfers is not exceeded
are provided on page 50.
2. Debit cards
3. Transfers initiated by telephone, fax, or on-line banking.
Please note that transfers from savings deposits for purposes of covering overdrafts (overdraft protection
plans) are included under the transfer and withdrawal limits specified for savings deposits.

1.

Status of savings deposits when notice is required. If the reporting institution exercises its right to require written notice of an
intended withdrawal in connection with a savings deposit, the deposit continues to be a savings deposit and should not be
reclassified as a time deposit. Where written notice actually is required by the depository institution and such notice is received
from a depositor, the savings deposit becomes a demand deposit after expiration of the notice period and should be reported in
Item A.1.a, A.1.b, or A.1.c, as appropriate.

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(A preauthorized transfer includes any arrangement by the depository institution to pay a third party
from the account of a depositor upon written or oral instruction (including an order received through an
automated clearing house (ACH)) or any arrangement by a depository institution to pay a third party from the
account of the depositor at a predetermined time or on a fixed schedule.)
Please also note the following with respect to savings deposits:
1. There are no regulatory restrictions on the following types of transfers or withdrawals from a
savings deposit, regardless of the number:
A. Transfers for the purpose of repaying loans and associated expenses at the same depository
institution (as originator or servicer).
B. Transfers of funds from this account to another account of the same depositor at the same
depository institution when made by mail, messenger, automated teller machine, or in person.
C. Withdrawals for payment directly to the depositor when made by mail, messenger,
automated teller machine, in person, or by telephone (via check mailed to the depositor).
2. No minimum maturity is required by regulation, but depository institutions must reserve the right
to require at least seven days' written notice prior to withdrawal as stipulated above for a savings
deposit.
3. No minimum balance is required by regulation.
4. There is no regulatory limitation on the amount of interest that may be paid on a savings deposit.
Any depository institution may place restrictions and requirements on savings deposits in addition to
those stipulated above and in Regulation D. In the case of such further restrictions, the account would still be
reported as a savings deposit.
On the other hand, an account that otherwise meets the definition of a savings deposit but that
authorizes or permits the depositor to exceed the six-transfer/withdrawal rule or three-draft rule described
above is a transaction account, as follows:
1. If the depositor is ineligible to hold a NOW account, such an account is considered a demand
deposit and shall be reported in the appropriate category under Item A.1.
2. If the depositor is eligible to hold a NOW account, the account will be considered either a NOW
account, a telephone or preauthorized transfer, or an ATS account. For purposes of this report, all
such accounts shall be reported in Item A.2.
(NOTE: Multiple savings accounts where the depository institution suggests, or otherwise promotes, multiple
accounts to permit transfers in excess of the limits applicable to individual savings accounts also are
transaction accounts and reported as above.)

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Include as savings deposits, as defined above:
1. Accounts commonly known as passbook savings accounts, statement savings accounts, and
money market deposit accounts (MMDAs) that meet the above definition of savings deposits.
2. Interest-bearing and noninterest-bearing savings deposits.
3. Savings deposits maintained as compensating balances or pledged as collateral for loans. For
purposes of this report, such savings deposits are not defined as hypothecated deposits.
4. Escrow deposits where the reporting institution reserves the right to require at least seven days'
written notice before payment can be made (see Section 1, Subsection H, for the general
treatment of escrow funds).
5. Interest paid by crediting savings deposits accounts.
6. Savings deposits in the form of Individual Retirement Accounts (IRAs) or Keogh Plan accounts.
7. Club accounts, such as Christmas club, vacation club or other similar club accounts, that meet the
criteria for savings deposits. Club accounts in the form of time deposits should be reported as
time deposits.
8. Any funds received by the reporting institution's affiliate and later channeled to the reporting
institution by the affiliate in the form of savings deposits.
9. Any deposit or account that otherwise meets the definition of a time deposit but that allows
withdrawals within the first six days after the date of deposit and that does not require an early
withdrawal penalty of at least seven days' simple interest on amounts withdrawn within those first
six days, but that is subject to the minimum notice requirement and withdrawal limitations of a
savings deposit. To meet these criteria, the depository institution must expressly reserve the right
to require at least seven days' written notice before an intended withdrawal and the account must
be subject to the limits on the number and types of transfers specified for savings deposits as
defined above. Otherwise, such a deposit or account must be reported as a demand deposit.
10. The remaining balance of a time deposit from which a partial early withdrawal has been made
and that is not subject to additional early withdrawal penalties of at least seven days' simple
interest on amounts withdrawn within six days after each partial withdrawal but that is subject to
the minimum notice requirement and withdrawal limitations of a savings deposit on any
subsequent withdrawals. To meet these criteria, the depository institution must expressly reserve
the right to require at least seven days' written notice before an intended withdrawal and the
account must be subject to the limits on the number and types of transfers specified for savings
deposits as defined above. Otherwise, such a remaining balance must be reported as a demand
deposit.
11. Brokered deposits that meet the criteria of savings deposits.
Exclude from savings deposits:
1. All accounts defined as transaction accounts, including:
A. Demand deposits (reported in Item A.1.a, A.1.b, or A.1.c, as appropriate);
B. ATS accounts and NOW accounts (reported in Item A.2);

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C. Telephone or preauthorized transfer accounts that meet the definition of a transaction account
(reported in Item A.2);
D. NINOW (Noninterest-bearing NOW) accounts and POW (Payment Order of Withdrawal)
accounts (both reported as demand deposits in Item A.1.c).
2. Any accounts that are savings deposits in form but that the Federal Reserve Board has
determined, by rule or order, to be transaction accounts. (Reported in the appropriate item of
Section A, Transaction Accounts.)
3. Special passbook or statement accounts, such as “ninety-day notice accounts,” “golden passbook
accounts,” or deposits labeled as “savings certificates,” that have a specified original maturity of
seven days or more (reported as a time deposit in Item D.1).
4. Interest accrued on savings deposits but not yet paid or credited to a deposit account.
5. Hypothecated deposits. For purposes of this report, hypothecated deposits do not include
deposits serving simply as collateral for loans.
6. Funds deposited to the credit of the depository institution's own trust department where the funds
involved are utilized to cover checks or drafts. Such funds are transaction accounts and are
reported in Item A.1.c.
7. Amounts of outstanding bankers acceptances that are created by the reporting institution and that
are of the type that are ineligible for discount at Federal Reserve Banks (primary obligations
described in Section 1, Subsection E.4.b). These transactions are reported in Schedule AA, Item
1 or Schedule BB, Item 2.
8. Certain obligations issued by the reporting institution's nondepository affiliates (primary
obligations described in Section 1, Subsection E.4.a). These transactions are reported in Schedule
AA, Item 1 or Schedule BB, Item 2.

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Procedures for Ensuring that the Permissible Number of Transfers
from Savings Deposits is not Exceeded
In order to ensure that no more than the permitted number of withdrawals or transfers are made for an
account to come within the definition of a savings deposit, a depository institution must either:
1. prevent withdrawals or transfers of funds in this account that are in excess of the limits
established for savings deposits, or
2. adopt procedures to monitor those transfers on an ex post basis and contact customers who
exceed the limits established for the particular account on more than an occasional basis.
For customers who continue to violate those limits after being contacted by the depository institution,
the depository institution must either close the account and place the funds in another account that the
depositor is eligible to maintain or take away the account's transfer and draft capacities.1
An account that authorizes withdrawals or transfers in excess of the permitted number is a transaction
account regardless of whether the authorized number of transactions are actually made. (See page 47 for
detailed reporting instructions under this circumstance.)
In applying the limits to withdrawals and transfers per calendar month or statement cycle (or similar
period) of at least four weeks, the depository institution at its option may use, on a consistent basis, either the
date on the check, draft, or similar item, or the date the item is paid.

1.

If an institution continues to permit recurring excess transfers from a savings deposit or fails to maintain procedures to enforce
the transfer limitations, the account may be determined to authorize such excess transfers and the institution may be required to
reclassify the account as a transaction account. For example, if the depositor is eligible to maintain a NOW account and excess
transfers are made by check, the account may be required to be reclassified as a NOW account against which transaction
account reserves will be required to be held. If the depositor is not eligible to hold a NOW account, the account may be
required to be reclassified as a demand deposit (also a transaction account) on which interest could not be paid under
Regulation Q.

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Report Item D.1—Total Time Deposits
Include in Item D.1 the balance of all time deposits, in the form of both deposits and primary
obligations, that are outstanding at the close of business each day. Item D.1 covers both personal and
nonpersonal time deposits.
Time deposits include deposits described in Section 1, Subsection E.1, and primary obligations
described in Section 1, Subsection E.3, that the depositor does not have a right and is not permitted to make
withdrawals from within six days after the date of deposit unless the deposit is subject to an early withdrawal
penalty of at least seven days' simple interest on amounts withdrawn within the first six days after deposit.1 A
time deposit from which partial early withdrawals are permitted must impose additional early withdrawal
penalties of at least seven days' simple interest on amounts withdrawn within six days after each partial
withdrawal. If such additional early withdrawal penalties are not imposed, the account ceases to be a time
deposit. The account may become a savings deposit if it meets the requirements for a savings deposit;
otherwise it becomes a demand deposit.
Reporting of Deposits Issued on a Discount Basis or on Which Interest is Prepaid
Time deposits issued on a discount basis should be reported initially on the basis of the amount of
funds actually received by the reporting institution. For example, if the reporting institution received $96,000
in exchange for a certificate of deposit issued at face value of $100,000, only the $96,000 received at the time
of issuance should be reported initially as a time deposit. However, as the institution's obligation to the
depositor increases over the life of the deposit, representing interest earned on the deposit, the incremental
amounts as credited to the certificate also should be reported as time deposits.
Time deposits for which interest has been prepaid should be reported on the basis of the face value of
the deposit issued by the depository institution without deduction for the amount of prepaid interest. For
example, if the depository institution received $10,000 in exchange for a certificate of deposit issued at a face
value of $10,000 and prepaid $500 of interest, the institution should report as a time deposit the $10,000
received at the time of issuance. For reporting purposes, the $500 prepaid interest should not be deducted
from the face amount of the certificate.

1.

Accounts existing on March 31, 1986, may satisfy the early withdrawal penalties specified by Regulation D by meeting the
Depository Institutions Deregulation Committee's early withdrawal penalties in existence on March 31, 1986. Accounts that
otherwise meet the requirements for time deposits but that lack such penalties due to a lack of a regulatory requirement for such
a penalty, as in the case of Federally-chartered credit unions, may continue to be classified as time deposits; however, the
penalty should be included in time deposits opened, renewed or to which additional deposits are made on or after January 1,
1987. For exception to the imposition of early withdrawal penalties, please refer to Regulation D.

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Include as time deposits:
1. Funds that are payable on a specified date not less than seven days after the date of deposit or
payable at the expiration of a specified time not less than seven days after the date of deposit, or
payable only upon written notice that is actually required to be given by the depositor not less
than seven days prior to withdrawal.
2. Time certificates of deposit (including roll-over certificates of deposit), whether evidenced by
negotiable or nonnegotiable instruments.
3. Time deposits, open account, evidenced by written contracts.
4. Club accounts, such as Christmas club, vacation club or other similar club accounts that are not
maintained as savings deposits, that are deposited under written contracts providing that no
withdrawal shall be made until a certain number of periodic deposits have been made during a
period of not less than three months even though some of the deposits may be made within six
days from the end of the period.
5. Savings certificates, notice accounts, and passbook accounts (but not savings deposits).
6. Funds received or held in escrow accounts that meet the criteria for a time deposit specified
above. Also, see Section 1, Subsection H, for the general treatment of escrow funds.
7. Interest-bearing and noninterest-bearing time deposits.
8. Individual Retirement Account (IRA) funds or Keogh Plan accounts held in the form of time
deposits.
9. Time deposits held by an employer as part of an unfunded deferred compensation plan
established pursuant to subtitle D of the Revenue Act of 1978 (Pub. L. No. 95-600; 92 Stat.
2763).
10. Time deposits maintained as compensating balances or pledged as collateral for loans.
11. All interest paid by crediting time deposit accounts.
12. The reporting institution's liability on primary obligations described in Section 1, Subsection E.3
(a), (b), (d), (e), and (f), that are issued in original maturities of seven days or more to nonexempt
entities.
13. Due bills described in Section 1, Subsection E.3.c, that are issued to any U.S. or non-U.S. entity
in original maturities of seven days or more.
14. Any funds received by the reporting institution's affiliate and later channeled to the reporting
institution by the affiliate in the form of a time deposit.
15. Brokered deposits that meet the criteria of time deposits.
16. All matured time certificates of deposits, during the ten-day grace period following maturity, if
such a grace period exists (See 12 CFR 329.104).
17. Deposit notes.
18. Bank notes.

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Exclude from time deposits the following categories of liabilities even if they have an original maturity of
seven days or more:
1. Any deposit or account that otherwise meets the definition of a time deposit but that allows
withdrawals within the first six days after the date of deposit and that does not require an early
withdrawal penalty of at least seven days' simple interest on amounts withdrawn within those first
six days. Such deposits or accounts that meet the definition of a savings deposit shall be reported
as savings deposits in Item C.1; otherwise they shall be reported as demand deposits in the
appropriate category under Item A.1.
2. The remaining balance of a time deposit if a partial early withdrawal is made and the remaining
balance is not subject to additional early withdrawal penalties of at least seven days' simple
interest on amounts withdrawn within six days after each partial withdrawal. Such time deposits
that meet the definition of a savings deposit shall be reported as savings deposits in Item C.1;
otherwise they shall be reported as demand deposits in the appropriate category under Item A.1.
3. Time deposit accounts maintained in connection with an arrangement that permits the depositor
to obtain credit directly or indirectly through the drawing of a negotiable or nonnegotiable check,
draft, order or instruction or other similar device (including telephone or electronic order or
instruction) on the issuing institution that can be used for the purpose of making payments or
transfers to third persons or others, or to a deposit account of the depositor. Such deposits are
regarded as transaction accounts and should be reported in Item A.2.
4. Any accounts that are time deposits in form but that the Federal Reserve Board has determined,
by rule or order, to be transaction accounts. (Reported in the appropriate item of Section A,
Transaction Accounts.)
5. All matured time certificate of deposits, after the 10-day grace period following the maturity, if
such a grace period exists
6. Interest accrued on time deposits but not yet paid or credited to a deposit account.
7. ATS and NOW accounts (reported in Item A.2).
8. Telephone or preauthorized transfer accounts that meet the definition of a transaction account
(reported in Item A.2).
9. Savings deposits (reported in Item C.1).
10. Deposits for which the reporting institution merely reserves the right to require at least seven
days' written notice of an intended withdrawal.
11. Hypothecated deposits. Please note that for purposes of this report, hypothecated deposits do not
include deposits serving simply as collateral for loans.
12. Funds received and credited to dealer reserve or dealer differential accounts that the reporting
institution is not obligated to make available to either the dealer or the dealer's creditors.
13. Funds obtained from state and local housing authorities under loan-to-lender programs involving
the issuance of tax exempt bonds and the subsequent lending of the proceeds to the reporting
institution for housing finance purposes.

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14. Repurchase agreements involving obligations of, or obligations fully guaranteed as to principal
and interest by, the U.S. Government or a Federal agency, or the shares of a money market
mutual fund whose portfolio consists wholly of obligations of, or obligations fully guaranteed as
to principal and interest by, the U.S. Government or a Federal agency.
15. Borrowings from a Federal Reserve Bank or a Federal Home Loan Bank.
16. Due bills issued to any entity that are collateralized within three business days by securities
similar to the securities purchased (see Section 1, Subsection E.3.c).
17. Except for due bills, any primary obligation issued or undertaken to obtain funds, regardless of
the use of the proceeds, when transacted with the U.S. offices of exempt entities.
18. Subordinated notes and debentures.
19. Certain obligations issued by the reporting institution's nondepository affiliates (primary
obligations described in Part I, Section 1, Subsection E.4.a). These transactions are reported in
Schedule BB, Item 2 if nonpersonal.
20. Amounts of outstanding bankers acceptances that are created by the reporting institution and that
are of the type that are ineligible for discount at Federal Reserve Banks (primary obligations
described in Section 1, Subsection E.4.b). These transactions are reported in Schedule AA, Item
1 or Schedule BB, Item 2.

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Report Item E.1--Vault Cash
Include as Vault Cash:
1. United States currency and coin owned and held by the reporting institution that may, at any
time, be used to satisfy depositors' claims.
2. United States currency and coin in transit to a Federal Reserve Bank for which the reporting
institution has not yet received credit, and in transit from a Federal Reserve Bank when the
reporting institution has already been charged.
3. United States currency and coin in transit to a correspondent depository institution if the reporting
institution's account at the correspondent institution has not yet been credited, and in transit from
a correspondent institution if the reporting institution's account at the correspondent institution
has already been charged.
4. United States currency and coin placed in a vault (rented by the reporting institution) on the
premises of another institution or currency held in automatic teller machines (ATMs) or other offpremises location if:
A. the reporting institution has full rights of ownership of the coin and currency and books the
amount as an asset;
B. the reporting institution has full rights to obtain the coin and currency immediately in order to
satisfy customer demands (and accordingly must be reasonably nearby); and
C. the institution from which the vault is rented does not include that coin and currency as its
own vault cash and no other institution uses the currency to satisfy its reserve requirement.
Exclude from Vault Cash:
1. Foreign (non-U.S.) currency and coin.
2. Silver and gold coin and other currency and coin whose numismatic or bullion value is in excess
of face value.
3. United States currency and coin that the reporting institution does not have full and unrestricted
right to use, such as coin collections held for safekeeping for customers, currency and coin
pledged as collateral by the reporting institution or by customers, or currency and coin sold under
a repurchase agreement or purchased under a resale agreement.
4. Cash shipped by the reporting institution to a Federal Reserve Bank or correspondent depository
institution for which credit has been given to the reporting institution.
5. Checks, drafts, and cash items in process of collection.

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Memorandum Section
Report Item F.1--All Time Deposits With Balances of $100,000 or More (included in Item D.1)
Report in this item the balance of all time deposits (both personal and nonpersonal) of $100,000 or
more that are included in Item D.1 (Total time deposits). Include:
1. Negotiable and nonnegotiable and transferable and nontransferable certificates of deposit issued
in denominations of $100,000 or more, and time deposits, open account and other time deposits
having balances of $100,000 or more.
2. Time deposits originally issued in denominations of less than $100,000 but that, because of
interest paid or credited, or because of additional deposits, now have a balance of $100,000 or
more.
3. The balance of all primary obligations of $100,000 or more that are reported in Item D.1.
In determining if a time deposit has a balance of $100,000 or more, do not combine deposits that are
represented by separate certificates or accounts, even if held by the same customer.
Banks with foreign currency-denominated deposits should include as time deposits of $100,000 or more those
time deposits originally issued for amounts of $100,000 or more but that, because of having been converted to
U.S. dollars, now have a balance of less than $100,000 on the report date.
NOTE: If your institution receives brokered deposits in the form of time deposits, only that portion of the
deposit in amounts of $100,000 or more that is credited to a single depositor should be included in this item.
The remainder of the deposit is regarded as small time deposits. For example, if a broker purchases one large
certificate of deposit (CD) for $5 million on behalf of several depositors, and each of the underlying
depositors' shares in the CD is less than $100,000, the entire amount of the CD should be excluded from this
item. However, if any of the underlying depositors have balances of $100,000 or more, that portion of the CD
held by such a depositor or depositors should be included in this item. If your institution is unable to collect
information from a broker on the amounts credited to underlying depositors then, generally, the entire amount
of the brokered time deposit should be excluded from this item. However, in such cases, your institution
should use all available information to determine whether there is good reason to believe amounts credited to
underlying depositors are $100,000 or greater. For example, if the broker deals mainly with institutional
customers, then the value of each underlying share will therefore likely be greater than $100,000, and the
brokered deposit should be included in this item.
Exclude all time deposits with balances of less than $100,000. Also, exclude from this item all demand
deposits, NOW accounts, ATS accounts, telephone or preauthorized transfer accounts, and savings deposits.
Also exclude any accounts that are time deposits in form but that the Federal Reserve Board has determined,
by rule or order, to be transaction accounts.

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Schedule AA, Item 1 and Schedule BB, Item 2--Other Reservable Obligations by Remaining Maturity
These two items break down, by remaining maturity, the amounts (1) of ineligible acceptances
(“finance bills”),1 and (2) of funds obtained through the issuance of obligations by affiliates. Please note that
Items AA.1 and BB.2 are applicable only to those depository institutions that have such obligations. If your
institution does not have such obligations, you need only check the boxes that precede Schedule AA and
Schedule BB, Item 2 on the reporting form.
Report Items AA.1 and BB.2--Amounts of Outstanding Ineligible Acceptances, and Funds Obtained
Through Issuance of Obligations by Affiliates
Report the following transactions in Items AA.1 and BB.2:
1.

Amounts of ineligible acceptances (including finance bills): Report the dollar amounts of
ineligible acceptances (those that are not eligible for discount by Federal Reserve Banks-see
Paragraph 7 of Section 13 of the Federal Reserve Act [12 U.S. C. Section 372]). Some
ineligible acceptances are referred to as finance bills or “Working Capital Acceptances.” For
ineligible acceptances created on or before June 20, 1983, report only those outstanding
ineligible acceptances that resulted in funds being obtained by the reporting institution (or its
operation subsidiary) through the creation, discount, and subsequent sale of the acceptance by
the reporting institution (or its operation subsidiary), except those sold to and held by exempt
entities. The amounts to be reported are the amounts of funds received, and not necessarily
the face amounts of the ineligible acceptances created. For ineligible acceptances created
after June 20, 1983, report the amounts outstanding of all ineligible acceptances, except those
sold to and held by exempt entities. For outstanding ineligible acceptances that resulted in
funds being obtained by the reporting institution (or its operation subsidiaries), except those
sold to and held by exempt entities, report the dollar amounts of funds received. For all other
ineligible acceptances (those that did not result in funds being obtained by the reporting
institution or its operation subsidiaries), report the face amounts of the ineligible acceptances
created.

2. Amounts outstanding of funds obtained through issuance of obligations by affiliates: Report the
dollar amounts of the funds obtained by the reporting institution (or its operations subsidiaries or
service corporations) when its nondepository affiliates use the proceeds of the obligations that
they issue to supply or to maintain the availability of funds to the reporting institution. Such
obligations may be in the form of promissory notes (including commercial paper),
acknowledgments of advance, due bills, or similar obligations (written or oral). However, such
obligations should be reported only to the extent that they would have constituted “deposits” as
described in Section 1, Subsection E.1, or “primary obligations” as described in Section 1,
Subsection E.3, had they been issued directly by the reporting institution.
Due bills issued by the reporting institution's affiliates are reservable deposits without regard to the
purpose of the due bills or to whom issued unless collateralized within three business days from the date of
issuance by a security similar to the security purchased from the customer of the reporting institution's
affiliates. The dollar amounts outstanding of due bills that are not so collateralized are to be reported by
original maturity and beneficial holder, in the appropriate schedule or line item.
Exclude from Schedule AA.1 and BB.2 funds obtained by the reporting institution through
obligations issued by affiliates and deposited at the reporting institution in the form of transaction accounts,
savings deposits, or time deposits. Such funds should be reported in the body of the Report of Transaction

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Accounts, Other Deposits and Vault Cash as transaction accounts, savings deposits or time deposits, as
appropriate.
If the affiliate's obligation is determined to be a deposit or primary obligation to be reported in
Schedule AA or BB, then the appropriate maturity category is determined by the shorter of (1) the maturity of
the affiliate's obligation or (2) the maturity of the obligation issued by the reporting institution to the affiliate,
or, in the case of assets purchased from the reporting institution, the remaining maturity of the assets
purchased.
The following chart summarizes the conditions under which the proceeds from the issuance of an
obligation by an affiliate would be a deposit or a primary obligation and indicates the appropriate section of
the FR 2900 in which the funds should be reported:

Affiliate’s obligation

Funds received by the reporting Funds received by the reporting
institution in the form of a institution not in the form of a
deposit or a primary obligation
deposit or a primary obligation

To be reported on FR 2900 as a
transaction account, savings
deposit, or time deposit, as
appropriate.
(See Example 1 below.)
2. affiliate’s obligation—would To be reported on FR 2900 as a
not have been a deposit or a transaction account, savings
primary obligation if issued deposit, or time deposit, as
appropriate.
by the reporting institution.
(See Example 3 below.)
1. affiliate’s obligation—would
have been a deposit or a
primary obligation if issued
by the reporting institution.

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55

To be reported on FR 2900
Schedule AA.1 or
Schedule BB.2.
(See Example 2 below.)
To be excluded from the FR
2900.
(See Example 4 below.)

September 2003

Example 1:
The nondepository affiliate issues commercial paper with a maturity of 6 months to a nonfinancial
corporation and immediately supplies the proceeds to the reporting institution by buying from the reporting
institution a time certificate of deposit (CD) with an original maturity of one year. While both the
nondepository affiliate's and the reporting institution's obligations are reservable liabilities, reserve
requirements are not imposed on both obligations. In this case, reserve requirements would be imposed on the
amount of funds supplied to the reporting institution, i.e., the dollar amount of the CD. Maturity is determined
by the shorter of the maturity of the nondepository affiliate's commercial paper or the reporting institution's
CD. In this example, the reservable obligation would be a nonpersonal time deposit with a 6-month maturity.1
The funds received by the reporting institution would be reported in the body of the FR 2900--in Item D.1
(Total time deposits) and in Schedule BB, Item 1 (Total Nonpersonal Savings and Time Deposits). If the CD
has a balance of $100,000 or more, it also is included in Memorandum Item F.1.
Example 2:
The nondepository affiliate issues an unsecured due bill to a nonexempt entity with a maturity of 3
months and supplies the proceeds to the reporting institution when the due bill has a remaining maturity of 2
months. The nondepository affiliate supplies the proceeds of the due bill to the reporting institution by
purchasing from the reporting institution assets maturing in 1 month. The nondepository affiliate's obligation
is reservable, but the sale of the assets by the reporting institution to the nondepository affiliate is not. The
reporting institution must hold reserves on the transaction because the nondepository affiliate's obligation is
subject to reserve requirements. The maturity category is determined by the remaining maturity of the assets
sold by the reporting institution to the nondepository affiliate (1 month), which is shorter than the remaining
maturity of the due bill (2 months). In this example, the reserve requirement would be on the nondepository
affiliate's due bill (a primary obligation) and the appropriate maturity would be one month, which is the
remaining maturity of the assets purchased. The funds received by the reporting institution should be reported
in Schedule BB, Item 2.
Example 3:
The nondepository affiliate sells commercial paper with a maturity of 3 months to a commercial bank
and supplies the proceeds to the reporting institution by depositing such funds in the reporting institution in a
demand deposit account. The nondepository affiliate's sale of commercial paper to a commercial bank is not
subject to reserve requirements, but the demand deposit account is. Thus, the reporting institution would hold
reserves on the demand deposit account as a transaction account. The funds received by the reporting
institution should be reported in Item A.1.c (Other demand deposits).
Example 4:
The nondepository affiliate sells U.S. Government securities under an agreement to repurchase and
uses the proceeds to purchase assets from the reporting institution. Neither the sale of the U.S. Government
securities under an agreement to repurchase nor the purchase of assets is subject to reserve requirements.
Thus, the reporting institution would not hold reserves against this transaction. The funds received by the
reporting institution should be excluded entirely from the Report of Transaction Accounts, Other Deposits and
Vault Cash.

1.

Nonpersonal time deposits, regardless of maturity, are reservable liabilities that currently carry a zero-percent reserve
requirement.

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Maturities
For the issuance of obligations by affiliates, and for acceptances that were created, discounted, and
sold by the reporting institution (or its operation subsidiaries), the maturities to be reported in Items AA.1
and BB.2 are the remaining maturities of the obligations at the time the proceeds are supplied to the
reporting institution. For acceptances that were not discounted and sold by the reporting institution (or its
operation subsidiaries), and that were created after June 20, 1983, the maturity to be reported is the
original term of the instrument. NOTE: Balances should be classified based on the maturity category
initially reported and not the remaining maturity on the report date.
Report Item AA.1--Maturing in Less Than Seven
Report in Item AA. 1 the amounts of funds obtained through the issuance of obligations by
affiliates and of funds obtained through the use of ineligible acceptances created on or before June 20,
1983 (except those sold to and held by exempt entities) and maturing in less than seven days. Also
include the amounts of all ineligible acceptances created after June 20, 1983 (except those sold to and
held by exempt entities) and maturing in less than seven days. Exclude from this item all ineligible
acceptances of the reporting institution sold to and known to be held by a non-U.S. office of another
depository institution or of an Edge or agreement corporation; such ineligible acceptances should be
included in Schedule BB, Item 2.

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Schedule BB—Nonpersonal Items
These items are to be reported only one day each year. For weekly FR 2900 reporters, report the
balance as of the close of business on June 30. For quarterly FR 2900 reporters, report the balance
as of the close of business on the Monday of the June report week.
Report Item 1—Total Nonpersonal Savings and Time Deposits
Report in Schedule BB, Item 1 the total of all nonpersonal savings and time deposits, regardless of
denomination or maturity, that also are included in Items C.1 (Total Savings deposits) and D.1 (Total Time
deposits).
NOTE: Nonpersonal time deposits with balances of $100,000 or more are included in both Item F.1 and
Schedule BB, Item 1.
Include as nonpersonal savings and time deposits:
1. Savings and time deposits that represent funds deposited to the credit of, or in which any
beneficial interest is held by, a depositor that is not a natural person, other than a deposit to the
credit of a trustee or other fiduciary if the entire beneficial interest in the deposit is held by a
natural person or persons.
2. Savings and time deposits that are transferable, whether or not the entire beneficial interest is held
by natural persons. A deposit is transferable unless it includes on the face of a document,
evidencing the account, a statement that the deposit is not transferable or that it is transferable on
the books of, or with the permission of, the reporting institution.
Exclude, all personal savings and personal time deposits that are not transferable and that represent funds in
which the entire beneficial interest is held by a depositor who is a natural person. For example:
1. Individual Retirement Accounts (IRAs), Keogh Plan Accounts and accounts held by an employer
as part of an unfunded deferred compensation plan established pursuant to Subtitle D of the
Revenue Act of l978 (Public Law No. 95-600; 92 Stat. 2763) in the form of savings or time
deposits. A nontransferable deposit that is an asset of a pension fund normally would be regarded
as a personal deposit since the entire beneficial interest in such funds normally is held by natural
persons.
2. Escrow accounts, such as funds held for tax or insurance payments, if the depositor is a natural
person.
3. Trust funds held in the name of a trustee or other fiduciary, whether or not a natural person, if the
entire beneficial interest is held by natural persons.
4. Club accounts, in the form of a savings or time deposit and held by natural persons, such as
Christmas club, vacation club and similar club accounts.
NOTE: If a broker provides a secondary market in these deposits, as is usually the case, such deposits are
transferable even if they are transferable only on the books and records of the broker and not on the books
and records of the depository institution itself. Transferable brokered deposits in the form of savings or
time deposits are regarded as nonpersonal savings or nonpersonal time deposits, unless they are (1)
deposited to the credit of, and the entire beneficial interest is held by, natural persons and (2) subject to an
agreement between the broker and the depository institution that includes the following essential terms:
1. the broker will maintain records of the names of the beneficial owners of all brokered
deposits and such records will be made available to any agency regulating the depository

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October 2007

institution;
2. the broker will determine the amount of deposits beneficially owned by natural persons and
by entities other than natural persons and provide a written report to the depository institution
with that information. That written report must (1) be submitted on the close of business
every Monday or on the opening of business Tuesday for the one-week period beginning on
the previous Tuesday and ending on Monday; (2) include daily data on the actual amount of
personal time deposits and the actual amount of nonpersonal time deposits; and (3) include
daily data on the amount of deposits in which the beneficial interest of any one depositor in
principal plus interest exceeds $100,000. (For this purpose, separate deposits or accounts are
not aggregated even if held by the same customer.);
3. the depository institution has access to records concerning the deposits brokered for it and
those records should either be delivered to the offices of the depository institution or, where
appropriate, its Federal or State regulator, or access to the records must be provided to the
depository institution and its supervisory authority on the broker’s premises; and
4. the broker will commit to provide the depository institution with any other data about the
brokered deposits that may be needed in the future by the institution’s State or Federal
regulator.
Report Item 2—Ineligible Acceptances and Obligations Issued by Affiliates Maturing in Seven Days or
More (Nonpersonal Only
For information on ineligible acceptances and obligations issued by affiliates, see Schedule AA, Other
Reservable Obligations by Remaining Maturity.
Report in Schedule BB, Item 2, the amounts of funds obtained through the issuance of obligations
by affiliates and of funds obtained through the use of ineligible acceptances created on or before June 20,
1983 (except those sold to and held by exempt entities) and maturing in seven days or more. Also include
the amounts of all ineligible acceptances created after June 20, 1983 (except those sold to and held by
exempt entities) and maturing in seven days or more. Also include all ineligible acceptances of the
reporting depository institution known to be held by a non-U.S. office of another depository institution or
of an Edge or agreement corporation. Report in Item BB.2 only nonpersonal obligations, including:
1.

funds in which any beneficial interest is held by a depositor who is not a natural person, other
than a deposit to the credit of a trustee or other fiduciary if the entire beneficial interest in the
deposit is held by a natural person;

2.

an obligation that is transferable, except an obligation issued before October 1, 1980, to and
held by a natural person; and

3.

an obligation that is issued on or after October 1, 1980, to and held by a natural person that
does not contain on its face a statement that it is not transferable.

Exclude from Schedule BB, Item 2 all personal obligations.

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SCHEDULE CC: Net Eurocurrency Liabilities
This item is to be reported only one day each year. For weekly FR 2900 reporters, report the
balance as of the close of business on June 30. For quarterly FR 2900 reporters, report the balance
as of the close of business on the Monday of June report week each year.
Who Must Report
Reporting institutions that do not maintain branches outside the 50 states of the United States and the
District of Columbia or that do not have an IBF or have outstanding borrowings from non-U.S. offices of
other U.S. and non-U.S. depository institutions or from certain other designated non-U.S. entities need only
check the box that precedes Schedule CC on the reporting form. Schedule CC must be completed by the
following:
1. All banking Edge and agreement corporations with foreign (non-U.S) branches, an International
Banking Facility (IBF), or with outstanding borrowings from other non-U.S institutions.
2. All other depository institutions that have foreign (non-U.S) branches, an International Banking
Facility (IBF), or outstanding borrowings from other non-U.S. institutions.
A worksheet for preparation of Schedule CC (net Eurocurrency liabilities) and the accompanying worksheet
instructions, follow below.
Worksheet Item 1--Gross Borrowings from Non-U.S. Offices of Other Depository Institutions and from
Certain Designated Non-U.S. Entities. Enter in this item all outstanding borrowings by the reporting
institution that were obtained from:
A. Non-U.S. banking offices of other U.S. and Non-U.S. depository institutions1, including:
1. a non-U.S. holding company, if the holding company is a bank;
2. a banking subsidiary of a non-U.S. holding company regardless of whether the holding company is a
bank;
3. a non-U.S. bank's non-U.S. banking subsidiary; and
4. a non-U.S. branch of:
(a) a U.S. depository institution; and
(b) an edge or agreement corporation.
B. Foreign (non-U.S.) national governments and foreign official banking institutions; and
C. International institutions.
All borrowings are to be reported on a gross basis.

1.

Reporting institutions that are subsidiaries of non-U.S. depository institutions should report gross any borrowings from the nonU.S. parent in this item.

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September 2003

Borrowings from non-U.S. banking offices of other banks should be reported in this item regardless of the
terminology used to describe such borrowings, including transactions that are referred to as “Federal funds.”
Include in this item as borrowings:
1. obligations such as promissory notes, acknowledgments of advance, or similar obligations (including
the proceeds from loan strips);
2. due bills or similar obligations that remain uncollateralized after three business days; and,
3. overdrawn balances at non-U.S. offices of other banks.
Exclude from this item (1) any liability of the IBF; or (2) any liability actually in the form of and recorded on
the books of the reporting institution as a demand deposit, savings deposit, or time deposit (including
certificates of deposit); or (3) assets of the reporting institution that represent obligations fully guaranteed as to
principal and interest by the U.S. Government or a Federal agency, sold under an agreement to repurchase.
Worksheet Item 2--Gross Liabilities to Own Non-U.S. Branches Plus Net Liabilities to Own IBF. Enter
in this item the outstanding balance at the close of business each day of gross liabilities of the reporting
institution's U.S. offices to non-U.S. branches of the reporting institution. The net position of the establishing
entity with its IBF should be reported in this line only if it is a net “due to”. (The instructions for the
calculation of the reporting institution's net position with its own IBF are shown following the detailed
instructions for Worksheet Item 3.) All liabilities to non-U.S. branches should be reported gross and not
netted against claims. (Claims are reported gross in Worksheet Item 3). These liabilities include, among other
items:
1. funds placed on deposit at the head office or other U.S. offices of the reporting institution by nonU.S. branches;
2. borrowings by the head office or other U.S. offices of the reporting institution from the reporting
institution's non-U.S. branches;
3. overdrawn deposit accounts of the head office or other U.S. offices of the reporting institution at
non-U.S. branches (note that such overdrawn accounts should not be treated as negative balances
in Item 3);
4.

assets (other than U.S. government or federal agency securities) sold under agreements to
repurchase by the reporting institution to its non-U.S. branches.

5. the proceeds from loan strips sold to the reporting institution's non-U.S. branches; and
6. other liabilities to own non-U.S. branches, such as those resulting from clearing activities,
payments related to foreign exchange transactions, bankers acceptance transactions, and other
activities.
In addition, include in this item the reporting institution's net liabilities, if any, to its own IBF. For calculation
of this amount, please see the section entitled “Calculation of net due to/due from own IBF” that appears
immediately following the instructions for Item 3 of this report.
Worksheet Item 3--Gross Claims on Own Non-U.S. Branches Plus Net Claims on own IBF. Report in
this item the outstanding balance at the close of business each day of gross claims of the reporting institution's
U.S. offices on non-U.S. branches of the reporting institution. The net position of the

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establishing entity with its IBF should be reported in this line if it is a net “due from”. (The instructions for
the calculation of the reporting institution's net position with its own IBF are shown following the detailed
instructions for Worksheet Item 3.) All claims on non-U.S. branches should be reported gross and not netted
against liabilities. (Liabilities are reported gross in Worksheet Item 2.) These claims include, among other
items:
1. funds placed on deposit by the head office and other U.S. offices of the reporting institution at
non-U.S. branches;
2. funds advanced by the head office and by other U.S. offices of the reporting institution to nonU.S. branches;
3. overdrawn deposit accounts of the reporting institution's non-U.S. branches at the head office and
at other U.S. offices of the reporting institution (note that such overdrawn accounts should not be
treated as negative balances in Worksheet Item 2);
4. assets (other than U.S. government or federal agency securities) purchased by the reporting
institution from its own non-U.S. branches under an agreement to resell; and
5. other claims on own non-U.S. branches, such as those resulting from clearing activities, foreign
exchange transactions, bankers acceptance transactions, unremitted branch earnings and other
activities.
In addition, include in this item the reporting institution's net claims, if any, on its own IBF. For calculation of
this amount, please see the section entitled “Calculation of net due to/due from own IBF” that appears
immediately below.

Calculation of net due to/due from own IBF
To determine whether you have net liabilities due to your own IBF to be reported in Worksheet
Item 2, or net claims on your own IBF to be reported in Worksheet Item 3, it is necessary to
perform the following calculations using asset and liability accounts of your own IBF:
1. Compute IBF liabilities to parties other than U.S. offices of the establishing entity minus IBF
assets due from parties other than U.S. offices of the establishing entity.
2. If the difference calculated in (1) is positive, it represents, on the books of the IBF, net
balances due from U.S. offices of the establishing entity. For purposes of this report, it
represents the establishing entity’s net liabilities due to own IBF and should be included in
worksheet Item 2.
3. If the difference calculated in (1) is negative, its absolute value represents, on the books of
the IBF, net balances due to U.S. offices of the establishing entity. For purposes of this
report, its absolute value represents the establishing entity’s net claims on its own IBF and
should be included in Worksheet Item 3.

Worksheet Item 4--Assets Held by Own IBF and Own Non-U.S. Branches Acquired from U.S. Offices.
Report in this item the amount of outstanding funds received by the reporting institution for assets acquired
and still held by the reporting institution's own IBF, by own non-U.S. offices, by non-U.S. offices

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of an affiliated edge or agreement corporation, that were acquired from the reporting institution's U.S. offices.
In addition, for edge or agreement corporations, include the amount of outstanding funds received by the
reporting institution for assets acquired and still held by non-U.S. offices of the reporting institution's U.S. or
non-U.S. parent institution.1
The amount reported here includes assets that are claims on both U.S. and non-U.S. entities.
Include such assets as:
1. loans and securities sold outright by U.S. offices of the reporting institution to its own IBF or its
own non-U.S. branches; and
2. participations in loans and other assets acquired by the reporting institution's own IBF or nonU.S. branches.
Do not include in this item sales of assets under agreements to repurchase by U.S. offices to the reporting
institution's non-U.S. branches. Such transactions should be reported in Item 2.
Worksheet Item 5--Credit Extended by Own Non-U.S. Branches to U.S. Residents. Report in this item
the amount of credit extended directly by the reporting institution's non-U.S. branches to U.S. residents,
regardless of where the proceeds will be used. However, if the amount of credit extended to U.S. residents by
any single non-U.S. branch did not exceed $1 million at any time during the computation period, the amount
for that branch should not be reported. In addition, if the aggregate amount of credit extended to any
particular U.S. resident by all non-U.S. branches did not exceed $100,000, the amount of credit to that U.S.
resident should not be reported. Also, do not include as credit extended to U.S. residents:
1. amounts reported in Item 4 representing credit to U.S. residents acquired from U. S. offices of the
reporting institution;
2. credit extended to other depository institutions, to banking edge and agreement corporations or to
U.S. branches and agencies of non-U.S. banks;
3. credit extended to an IBF; and
4. credit extended to a non-U.S. branch, office, subsidiary, affiliate or other foreign establishment
controlled by one or more U.S. corporations if the proceeds of the credit will be used to finance
its non-U.S. operations, even if the credit is guaranteed by the U.S. corporation.

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Worksheet for Preparation of SCHEDULE CC,
Net Eurocurrency Liabilities for All Depository Institutions
Other Than U.S. Branches and Agencies of Foreign Banks
This worksheet is provided to assist you in calculating “Net Eurocurrency Liabilities” to be reported in Schedule CC on the
Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900). This worksheet should not be submitted to the
Federal Reserve Bank.

Please refer to the FR 2900 instructions for descriptions of the items below.
Item List

June Report Date
Bil
Mil
_Thou

Item 1:
Gross Borrowings From
Non-U.S. Offices of Other
Depository Institutions and
from Certain
_Designed Non-U.S. Entities

Bil

Example
Mil

Thou

4

000

Item 2:
Gross Liabilities to Own
Non-U.S. Branches plus Net
Liabilities to Own IBF1

2

000

Item 3:
Gross Claims on Own
Non-U.S. Branches Plus
Net Claims on Own IBF1

8

000

Item 4:
Assets Held by Own IBF and
Own Non-U.S. Branches
Acquired from U.S. Offices

3

000

1

000

Item 5:
Credit Extended by Own
Non-U.S. Branches to U.S.
Residents

Calculate your institution’s net Eurocurrency liabilities using the formula below and enter the result on
the FR 2900, SCHEDULE CC, Net Eurocurrency Liabilities. Step-by-step instructions for using the
formula are given on the next page.
Net Eurocurrency Liabilities = [(Item 2 + Item 4 + Item 5) – Item 3]† + Item 1

1

Include only a single net position in either Item 2 or 3 that represents your net due from/due to position with your own IBF.
Refer to the detailed instructions to determine this amount. Under no circumstances should an amount be included in both Items
2 and 3 that represents your net position with your own IBF.

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September 2003

†If the result of the calculation enclosed within the brackets is negative,
that result is set to zero before proceeding with the rest of the equation.
Using the example above, Net Eurocurrency liabilities = 4,000, as shown below:
$4,000 = [(2,000 + 3,000 + 1,000) – 8,000] + 4,000

Step-by-Step Instructions for Calculating SCHEDULE CC,
Net Eurocurrency Liabilities,
Given the 5 Items Listed on Prior Page
Row
A.

B.

C.

D.

Bil

Mil

Thou

Bil

Mil

Thou

Bil

Mil

Thou

Bil

Mil

Thou

Bil

Mil

Thou

Bil

Mil

Thou

Bil

Mil

Thou

Bil

Mil

Thou

Enter amount in Worksheet Item 2

Enter amount in Worksheet Item 4

Enter amount in Worksheet Item 5

Enter result of:
Row A + Row B + Row C

E.

Enter amount in Worksheet Item 3

F.

Enter result of:
Row D – Row E (enter 0 if negative)

G.

Enter amount in Worksheet Item 1

H.

Enter result of:
Row F + Row G

I.

To be reported on FR 2900 form, Schedule CC, Net Eurocurrency Liabilities, rounded to
nearest thousand dollars.

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GLOSSARY OF TERMS

This section provides definitions, arranged in alphabetical order, for terms that appear in all
underline in Sections I and II of this booklet. These definitions are used for purposes of the Report of
Transaction Accounts, Other Deposits and Vault Cash. They may differ from definitions that appear in
other rules, regulations, statutes, or reports.
ACKNOWLEDGMENT OF ADVANCE

A notification by a depository institution of its liability for funds that have been received.
Acknowledgments of advance may take the form of an electronic advice, written receipt, issuance of a
credit memo or other documentation, or simply an oral communication confirming the receipt of funds
under a borrowing-lending arrangement. Acknowledgments of advance are primary obligations of the
issuing depository institution.
AFFILIATE

An affiliate is any corporation, association, or other similar organization:
1. of which the reporting depository institution directly or indirectly owns or controls either a
majority of the voting shares or more than 50 percent of the number of shares voted for the
election of the directors, trustees, or other persons exercising similar functions at the preceding
election, or controls in any manner the election of a majority of the directors, trustees, or other
persons exercising similar functions; or
2. of which control is held directly or indirectly through stock ownership, or in any other
manner, by shareholders of the reporting depository institution who own or control either a
majority of the shares of such depository institution or more than 50 percent of the number of
shares voted for the election of directors of the reporting depository institution at the
preceding election, or by trustees for the benefit of the shareholders of any such depository
institution; or
3. of which the majority of its directors, trustees, or other persons exercising similar functions
also are directors of any other depository institution; or
4. which owns or controls directly or indirectly either a majority of the shares of capital stock of
the reporting depository institution or more than 50 percent of the number of shares voted for
the election of directors, trustees, or other persons exercising similar functions of the reporting
depository institution or controls in any manner the election of a majority of directors,
trustees, or other persons exercising similar functions of the reporting depository institution, or
for the benefit of whose shareholders or members all or substantially all the capital stock of a
depository institution is held by trustees.

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AGREEMENT CORPORATION

A state-chartered corporation that has entered into an “agreement” with the Federal Reserve
Board under the provisions of Section 25 of the Federal Reserve Act to limit its banking activities to those
permitted to an Edge corporation.
ATS (automatic transfer service) ACCOUNT

A deposit or account of individuals or sole proprietorships on which the depository institution has
reserved the right to require at least seven days' written notice prior to withdrawal or transfer of any funds
in the account and from which, pursuant to written agreement arranged in advance between the reporting
institution and the depositor, withdrawals may be made automatically through payment to the depository
institution itself or through transfer of credit to a demand deposit or other account in order to cover
checks or drafts drawn upon the institution or to maintain a specified balance in, or to make periodic
transfers to, such other accounts.
An ATS account is a transaction account.
Please refer to the detailed FR 2900 instructions for ATS accounts for additional information.

BANKERS ACCEPTANCE

A draft or bill of exchange usually drawn under a letter of credit issued by the reporting
institution to a customer and “accepted” by the reporting institution--i.e., the reporting institution assumes
an obligation to make payment at maturity. Generally, a banker’s acceptance is eligible for discount by a
Federal Reserve Bank if it is used to finance the export or import of goods, the domestic shipment of
goods, and the foreign or domestic storage of goods and if it has a remaining maturity of l80 days or less.
Banker’s acceptances used to finance dollar exchange are also eligible for discount by a Federal Reserve
Bank if the remaining maturity is 3 months or less. Banker’s acceptances issued for other purposes, such
as finance bills and working capital acceptances, are ineligible for discount at Federal Reserve Banks.
(See 12 U.S.C. § 372.)
BANKERS' BANK

A bankers' bank is an institution satisfying all of the following criteria:
1. The institution is organized solely to do business with other financial institutions. This
requirement may be met even though the institution does a limited amount of business with
customers other than financial institutions. Those customers to whom the institution may lend
or from whom it may receive deposits are specified in 12 CFR §204.121.
2. The institution is owned primarily (75 percent or more) by the financial institutions with
which it does business.
3. The institution does not do business with the general public except for customers specified in
12 CFR §204.121. Loans to customers other than financial institutions may not exceed 10

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percent of the institution's total assets, and the deposits that the institution receives from
customers other than financial institutions may not exceed 10 percent of the institution's total
liabilities.
BANKING BUSINESS

The business of accepting deposits, making loans, and providing related services. The banking
business does not include the acceptance of trust funds.
BILL OF LADING DRAFT

- See commodity or bill of lading draft.
BONA FIDE CASH MANAGEMENT

A cash management plan can be regarded as bona fide when an institution and a depositor have
agreed that the institution may use the balance in one account to offset the overdrafts in another account
of the same type or a related depositor and where a bona fide cash management purpose is served. While
a written agreement is not required, there should be some indication of this purpose that can be referred to
in order to demonstrate the bona fide nature of the arrangement. It should be recognized that, depending
on the nature and extent of any cash management plan, sound banking practice may require that the
institution's authority and responsibility be documented. A bona fide cash management function is not
served when an institution nets a depositor's multiple accounts after an overdraft occurs in one of these
accounts merely to reduce its reservable liabilities.
BRANCHES AND AGENCIES OF FOREIGN BANKS

- See U.S. branches and agencies of non-U.S. banks.
BROKERED DEPOSITS

Funds in the form of deposits that a depository institution receives from brokers or dealers on
behalf of individual depositors. For details on reporting, see the Memorandum section on item F.1, All
Time Deposits With Balances of $100,000 or More, or Schedule BB on item 1, Total Nonpersonal
Savings and Time Deposits.
BROKERS SECURITY DRAFT

A draft with securities or title to securities attached that is drawn to obtain payment for the
securities. This draft is sent to a bank for collection with instructions to release the securities only on
payment of the draft.

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CASH COLLATERAL ACCOUNT

A liability account that is established typically in connection with the issuance of a commercial
letter of credit by the reporting institution. A cash collateral account appears on the books of the
reporting institution, either through transfer of funds from a customer's deposit account or a deposit of
cash, in an amount equal to all or some portion of the authorized amount of the letter of credit. As drafts
are drawn under the letter of credit and presented to the reporting institution for payment, the amounts of
the drafts are charged to the account. After the letter of credit expires, any balance remaining in the
account is paid or credited to the customer.
CASH ITEM

Any instrument, whether negotiable or not, for the payment of money which is payable on
demand. Cash item includes checks in the process of collection drawn on a depository institution, U.S.
Government checks, and other items that are customarily cleared or collected by depository institutions as
cash items.
CASH MANAGEMENT PLANS

- See bona fide cash management.
CERTIFICATE OF INDEBTEDNESS

An unsecured promissory note that represents borrowings by a depository institution.
CHECK

An instrument drawn on a depository institution and signed by the maker or drawer promising to
pay a certain sum of money on demand to the order of a specified person or bearer.
CLUB ACCOUNTS

Christmas club, vacation club, or similar savings deposits or time deposits. Club accounts for
which there are written contracts providing that no withdrawals can be made until a certain number of
periodic deposits have been made during a period of not less that three months, even though some of the
deposits are made within six days from the end of the period, are considered time deposits.
COMMODITY OR BILL OF LADING DRAFT

A draft that is issued in connection with the shipment of goods. If the commodity or bill of

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lading draft becomes payable only when the shipment of goods against which it is payable arrives, it is an
arrival draft. Arrival drafts are usually forwarded by the shipper to the collecting depository institution
with instructions to release the shipping documents (e.g., bill of lading) conveying title to the goods only
upon payment of the draft. Payment, however, cannot be demanded until the goods have arrived at the
drawee's destination. Arrival drafts provide a means of ensuring payment of shipped goods at the time
that the goods are released.
CREDIT BALANCE

A liability booked by the reporting institution as a credit balance or maintained by the reporting
institution and owed to a third party that is incidental to or that arises from the exercise of banking
powers. Also include any credit balance that results from customers' overpayments of account balances
on credit cards and related plans.

DEALER RESERVE OR DEALER DIFFERENTIAL ACCOUNT

An account that arises when a merchant or dealer (such as a home improvement contractor, auto
dealer, or mobile home dealer) enters into an arrangement with the reporting institution to furnish the
dealer with financing of installment loans by selling the loans to the reporting institution at discount. The
proceeds of the sale that the dealer receives from the institution represent only a portion (such as 90
percent) of the amount due on the installment loans. Typical accounting entries by the reporting
institution are a debit to “loans” for the principal amount due on the loans purchased, a credit to the
dealer's “demand deposit” account for 90 percent of the amount, and a credit to a “dealer reserve” or a
“dealer differential” account for the remaining 10 percent. Since the dealer does not have access to the
funds credited to the reporting institution's dealer reserve or differential account and may not make
withdrawals from the account, no deposit liability arises until such time as the reporting institution
becomes liable to the dealer for any portion of the funds.
DEMAND DEPOSIT

A deposit described in Section 1, Subsection E.1, or a primary obligation described in Section 1,
Subsection E.3, that is payable immediately on demand, or that is issued with an original maturity or
required notice period of less than seven days, or that represents funds for which the depository institution
does not reserve the right to require at least seven days' written notice of an intended withdrawal.
A demand deposit is a transaction account.
Please refer to the detailed FR 2900 instructions for demand deposits for additional information.
DEPOSIT NOTES

A debt security issued by a depository institution with the term deposit included on the note.

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DEPOSITORY INSTITUTION

Any of the following institutions that is empowered to perform a banking business and that
performs this business as a substantial part of its operations and is Federally insured or is eligible to apply
to become Federally insured:
1. U.S. commercial banks:
A. national banks;
B. state-chartered commercial banks; and
C. trust companies that perform a commercial banking business;
2. U.S. branches and agencies of foreign (non-U.S.) banks;
3. banking Edge and agreement corporations;
4. savings banks (mutual and stock);
5. building or savings and loan associations;
6. cooperative banks;
7. homestead associations;
8. credit unions; and
9. industrial banks (including, thrift and loan companies, and industrial savings banks) when
chartered as a bank under state law.
Please note that for purposes of these instructions, U.S. branches and agencies of foreign
(non-U.S.) banks, and banking Edge and agreement corporations are included in the term depository
institution.
The term depository institution excludes the following:
1. private banks or unincorporated banking institutions organized as partnerships or
proprietorships and authorized to perform commercial banking business;
2. a trust company whose principal function is to accept and execute trust arrangements or act in
a purely fiduciary capacity;
3. a cash depository, cooperative exchange, or similar depository organization whose principal
function is to serve as a safe deposit institution;
4. a finance company, whether or not empowered to receive deposits or sell certificates of
deposit;
5. U.S. Government agencies and instrumentalities, such as the Office of Thrift Supervision,
Federal Home Loan Banks, Federal Intermediate Credit Banks, Federal Land Banks, Banks
for Cooperatives, the Federal Home Loan Mortgage Corporation, Federal Deposit Insurance
Corporation, Federal National Mortgage Association, Federal Financing Bank, Student Loan
Marketing Association, National Credit Union Share Insurance Fund, and National Credit
Union Administration Central Liquidity Facility;
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6. Export-Import Bank of the U.S.;
7. Government Development Bank of Puerto Rico;
8. Minbanc Capital Corporation; and
9. Federal Reserve Banks.
DEPOSITS

- Please refer to Section 1, Subsections E.1 and E.2 for information on deposits. Also see
Regulation D, Section 204.2.

DRAFT

An instrument signed by the drawer ordering the payment of a certain sum of money on demand
to the order of a specified person or bearer.
DUE BILL

An instrument representing an obligation or promise to sell or deliver at some future date
securities, foreign exchange, etc. Due bills generally are issued in lieu of the item to be sold or delivered
at times when the item is in short supply or otherwise currently unavailable. The issuance of due bills
may give rise to a reservable deposit (see Section 1, Subsection E.3.c).
EDGE CORPORATION

A corporation chartered by the Federal Reserve Board under Section 25(a) of the Federal Reserve
Act to engage in international banking and financial operations.
EXEMPT ENTITIES

U.S. offices of the following:
1. U.S. commercial banks and trust companies conducting a commercial banking business and
their operation subsidiaries;
2. a U.S. branches or agencies of non-U.S banks ( i.e banks organized under foreign (non-U.S.)
law);
3. banking Edge and agreement corporations;
4. mutual and stock savings banks;

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5. building or savings and loan associations and homestead associations;
6. cooperative banks;
7. industrial banks;
8. credit unions (including corporate central credit unions);
9. the U.S. Government and its agencies and instrumentalities, such as the Federal Reserve
Banks, Office of Thrift Supervision, Federal Home Loan Banks, Federal Intermediate Credit
Banks, Federal Land Banks, Banks for Cooperatives, the Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance Corporation, Federal National Mortgage Association,
Federal Financing Bank, Student Loan Marketing Association, National Credit Union Share
Insurance Fund, and National Credit Union Administration Central Liquidity Facility;
10. Export-Import Bank of the U.S.;
11. Government Development Bank of Puerto Rico;
12. Minbanc Capital Corporation;
13. securities dealers, but only when the borrowing (a) has a maturity of one day, (b) is in
immediately-available funds, and (c) is in connection with the clearance of securities;
14. the U.S. Treasury (treasury tax and loan account note balances);
15. New York State investment companies (chartered under Article XII of the New York State
Banking Code) that perform a banking business and that are majority-owned by one or more
non-U.S. banks; and
16. investment companies or trust companies whose entire beneficial interest is held exclusively
by one or more depository institutions.
EXEMPTION AMOUNT

Section 411 of the Garn-St Germain Depository Institutions Act of 1982 subjects the first $2.0
million of a depository institution's reservable liabilities to a reserve requirement of zero percent. The
amount of reservable liabilities subject to the zero-percent reserve requirement (the exemption amount) is
adjusted each year for the next succeeding calendar year by 80 percent of the percentage increase in total
reservable liabilities of all depository institutions, measured on an annual basis as of June 30. (No
corresponding adjustment is made in the event of a decrease in total reservable liabilities of all depository
institutions.) The revised exemption amount is to be effective for the following calendar year. This
amount is used in two ways. First, it is used for all FR 2900 reporters in the reserve requirement
calculations during the calendar year (January through December) following the announcement of the
revised amount. Second, for those depository institutions whose deposits reporting status is based on the
level of their net transaction accounts, it is used to determine who must file the FR 2900 and who is
eligible for reduced reporting for the 12-month period beginning in the September following the
announcement of the revised exemption amount each year.
The current exemption amount can be found in the Reserve Maintenance Manual IV-4.

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FEDERAL PUBLIC FUNDS

Funds of the U.S. Government and funds the deposit of which is subject to the control and
regulation of the United States or any of its officers, agents, or employees.
FEDERAL RESERVE DRAFT

A draft issued by a depository institution that is drawn on its account at a Federal Reserve Bank
and that is payable by the Federal Reserve Bank.
FINANCE BILLS

A bill of exchange not accompanied by shipping documents, usually of 60 days tenor or over,
drawn by a bank or banker in one country on a bank or banker in another for the purpose of raising funds.
Finance bills are not drawn against the shipment of goods. They are sometimes drawn against balances
maintained with the drawee bank, but more often are not, being in the nature of an advance from a bank in
one country to a bank in another. The drawee bank accepts a finance bill for a fixed commission, but
only of course when the drawing bank enjoys a high credit rating.
FOREIGN (NON-U.S.) BANK

A bank organized under foreign (non-U.S.) law. Foreign banks include commercial banks,
merchant banks, discount houses, and similar depository institutions, including nationalized banks that
perform essentially a banking business and do not perform, to any significant extent, official functions of
foreign (non-U.S.) governments.
FOREIGN (NON-U.S.) GOVERNMENTS

Central, national, state, provincial, and local governments in foreign (non-U.S.) countries
(including their ministries, departments, and agencies) that perform functions similar to those performed
in the United States by government entities.
For purposes of Regulation D, foreign (non-U.S.) governments also include foreign (non-U.S.)
official banking institutions.
FOREIGN (NON-U.S.) NATIONAL GOVERNMENT

A central or national government that performs functions similar to those performed by the
Federal Government of the United States. State, provincial, and local governments are not included as
foreign national governments.

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FOREIGN OFFICIAL BANKING INSTITUTIONS

Central banks, nationalized banks and other banking institutions in foreign (non-U.S.) countries
that are owned by central governments and that have as a significant part of their function activities
similar to those of a treasury, central bank, development bank, exchange control office, stabilization fund,
monetary agency, currency board, etc.
HYPOTHECATED DEPOSITS

Funds received by the reporting institution that are recorded as deposits generally in accordance
with state law and that reflect periodic payments by a borrower on an installment loan. These payments
are accumulated until the sum of the payments equals the entire amount of principal and interest on the
loan, at which time the loan is considered paid in full. The amounts received by the reporting institution
are not immediately used to reduce the unpaid balance of the note, but are assigned to the reporting
institution and cannot be reached by the borrower or the borrower's creditors. Hypothecated deposits are
not to be reported as reservable deposits.
Deposits which simply serve as collateral for loans are not considered hypothecated deposits for
purposes of this report.
IMMEDIATELY-AVAILABLE FUNDS

Funds that the reporting institution can invest or dispose of on the same business day that the
transaction giving rise to receipt of the funds is executed. Such funds are sometimes referred to as
“collected,” “actually collected,” “finally collected,” or “good” funds.
INTEREST ON LAWYER TRUST ACCOUNTS (IOLTA)

Accounts that allow attorneys to pool funds from client’s trust accounts to earn income for
charitable foundations, primarily for law-related services.

INTERNATIONAL INSTITUTION

(1) Any international entity of which the United States is a member, such as the International
Bank for Reconstruction and Development (World Bank), International Monetary Fund, Inter-American
Development Bank, and the United Nations, and (2) other foreign, international, or supranational entities
of which the United States is not a member, such as the African Development Bank, Central Treaty
Organization, European Atomic Energy Community, European Economic Community, European
Development Fund, Caribbean Development Bank, Bank for International Settlements, etc. (See
Regulation D 12 CFR §204.125.)

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LETTER OF CREDIT

A letter of advice from a depository institution to its agent or correspondent, requesting that a
sum of money be made available to the person named in the letter, under specified conditions.
LOAN STRIP

A transaction involving the sale (or placement) of short-term loans made under long-term lending
commitments. Under a loan strip arrangement, a depository institution has made a long-term commitment
to a borrower to lend funds as desired up to a specified limit for a set period of time, usually several years.
Under this commitment, the borrower may take down funds for various periods of time, such as 90 days.
At the end of 90 days, the borrower has the option to roll over the loan because of the long-term lending
commitment. The issues under discussion here arise when the depository institution sells the original
(e.g., 90-day) loan to a third party. Because the third party has no obligation to purchase the rollover of
the original loan, the originating institution may be required either to fund it or to find a new purchaser.
The proceeds from outstanding loan strips sold to nonexempt entities constitute deposit liabilities
in the form of promissory notes, acknowledgements of advance, or similar obligations, as described in the
definition of primary obligations that appears in Section 1, Subsections E.3 through E.5, of the
instructions for preparation of the FR 2900. If the reporting institution has outstanding loan strips sold to
nonexempt entities, the proceeds of those sales must be included in the appropriate line items of the
reporting (selling) institution's FR 2900 in conformance with the specified treatment of such primary
obligations. If the loans sold had an original maturity of less than seven days, the proceeds should be
reported as a transaction account in the appropriate item of Section A of the report (likely in Item A.1.c,
Other demand deposits). If the loans sold had an original maturity of seven days or more, the proceeds
should be reported as a time deposit in Item D.1 (Total time deposits) and, if nonpersonal, also in
Schedule BB, Item 2. (In addition, the proceeds from each such individual sale of $100,000 or more that
are included in Item D.1 also must be included in Memorandum Item F.1.)
Exclude from the FR 2900 the proceeds of outstanding loan strips sold to exempt entities. Also
exclude from the FR 2900 the proceeds from outstanding loan strips sold to designated non-U.S. entities
that are included in the calculation of Net Eurocurrency Liabilities (Schedule CC).

LOAN-TO-LENDER PROGRAM

A loan-to-lender program involves the issuance of tax-exempt bonds by a state or local housing
authority and the subsequent lending of the proceeds to a reporting institution with the condition that
these funds be used to make specified types of residential real estate loans. The funds advanced to
institutions under the program are evidenced by a loan agreement and a promissory note issued by the
institution to the housing authority.

MMDA (“money market deposit account”)

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Please refer to the entry in the Glossary for savings deposits and to the detailed FR 2900
instructions for Item C.1, Total savings deposits.

NATURAL PERSON

A natural person for purposes of this report is an individual or a sole proprietorship. The term
does not mean a corporation owned by an individual, a partnership or other association.

NET TRANSACTION ACCOUNTS

Total transaction accounts (line A.3) minus demand balances due from depository institutions in
the U.S. (line B.1) minus cash items in process of collection (line B.2) plus ineleigible acceptances and
obligations issued by affiliates maturing in less than 7 days (Schedule AA, item 1). Note that if the first
three terms produce a result that is less than zero, that result should be set to zero before proceeding.
NINOW (Noninterest Bearing Negotiable Order of Withdrawal) ACCOUNT

A deposit or account, on which no interest or dividend is paid, from which withdrawals are made
by negotiable or transferable instruments for the purpose of making payment to third parties.
NONCASH ITEM

Any item that is not a cash item.

NONEXEMPT DEPOSIT CUTOFF

This cutoff is used to determine whether depository institutions report on the FR 2900 weekly or
quarterly.
The Federal Reserve Board determines the deposit cutoff. The Board also indexes the cutoff
annually to grow at 80 percent of the June-to-June growth rate in total deposits at all depository
institutions. Consistent with rules governing indexing the exemption amount, if total deposits decline in
that period, the Board will make no downward adjustment through the indexing process. On occasion,
the Federal Reserve Board has increased the deposit cutoff beyond its indexed level.

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NONEXEMPT ENTITY

A nonexempt entity is any one of the following:
1. individuals, partnerships, and corporations, wherever located;
2. security dealers wherever located, when the borrowing (a) has a maturity longer than one day,
(b) is not in immediately-available funds, and (c) is not in connection with the clearance of
securities;
3. state and local governments in the U.S. and their political subdivisions;
4. a bank's parent holding company if the holding company is not a bank;
5. a bank's parent holding company's nonbanking subsidiaries;
6. a bank's nonbanking subsidiaries; and
7. international institutions.
NONPERSONAL SAVINGS DEPOSIT

A savings deposit that is transferable or that represents funds deposited to the credit of, or in
which any beneficial interest is held by, a depositor that is not a natural person.
NONPERSONAL TIME DEPOSIT

Nonpersonal time deposit means:
1. a time deposit representing funds deposited to the credit of, or in which any beneficial interest
is held by, a depositor that is not a natural person;
2. a time deposit that is transferable and held by a natural person; or
3. a time deposit to and held by a natural person that does not contain on its face a statement that
the deposit is not transferable.
NON-U.S.

Any geographic location, including the Commonwealth of Puerto Rico and U.S. territories and
possessions, outside the 50 states of the United States and the District of Columbia.
NON-U.S. BANK

- See foreign bank.

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NOW ACCOUNT

An interest-bearing deposit or account (1) on which the depository institution has reserved the
right to require at least seven days' written notice prior to withdrawal or transfer of any funds in the
account and (2) that can be withdrawn or transferred to third parties by issuance of a negotiable or
transferable instrument.
A NOW account is a transaction account.
NOW accounts are authorized by Federal law and are limited to accounts held by:
1. individuals or sole proprietorships;
2. governmental units including the Federal government, its agencies and instrumentalities; State
governments; county and municipal governments and their political subdivisions; the District
of Columbia; the Commonwealth of Puerto Rico; American Samoa; Guam; and any territory
or possession of the United States and their political subdivisions; or
3. an organization that is operated primarily for religious, philanthropic, charitable, educational,
political or other similar purposes and which is not operated for profit (under Federal Reserve
Board rules, these include organizations, partnerships, corporations, or associations, that are
not organized for profit and are described in section 501(c)(3) through (13) and (19) and
section 528 of the Internal Revenue Code (26 U.S.C. (I.R.C.1954) §501(c)(3) through (13),
(19) and §527 through §528), such as church organizations; professional associations; trade
associations; labor unions; fraternities, sororities and similar social organizations; and
nonprofit recreational clubs).
Please note, however, that the following types of organizations as described in the cited
provisions of the Internal Revenue Code are among those not eligible to maintain NOW
accounts:
A.

credit unions and other mutual depository institutions (§501(c)(14));

B.

mutual insurance companies (§501(c)(15));

C.

crop financing organizations (§501(c)(16));

D.

organizations created to function as part of a qualified group legal services plan
(§501(c)(20)); and

E.

farmers' cooperatives (§521).

NOW accounts include those accounts previously referred to as “Super NOW” accounts.
Please refer to the detailed FR 2900 instructions for NOW accounts for additional information.
OPERATION SUBSIDIARY

A subsidiary of a depository institution (l) that serves in effect as a
department performing functions that the depository institution is empowered
where the depository institution is authorized to engage in business and (2) that
regulatory ownership requirements a wholly owned subsidiary, corporation

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separately incorporated
to perform at locations
satisfies the appropriate
see 12 CFR 250.141.

September 2003

Examples include credit card companies, mortgage companies, leasing companies or safe deposit
companies. While similar, operation subsidiaries do not have the same powers that are granted to service
corporations.
ORIGINAL MATURITY

The length of time from the date of issue to the earliest date that the funds may be withdrawn at
the option of the depositor under the terms of the deposit agreement. Where a deposit is withdrawable on
a specified date, the maturity is determined by the length of time between the issue date and the specified
maturity date. Where a deposit has no specified maturity but can be withdrawn after written notice is
provided to the reporting institution, the maturity is determined by the length of the required notice
period. roll-over certificates of deposit multiple maturity deposits, alternative maturity deposits, or
deposits providing other maturity combinations that permit a depositor the option of withdrawing the
deposit at different dates or periods of time should be reported on the basis of the earliest allowable
withdrawal date.
PAYMENT ERRORS

See Section 1, Subsection I, of these instructions for further details on payment errors.
PERSONAL SAVINGS DEPOSIT

A savings deposit that is not transferable and that represents funds deposited to the credit of or in
which the entire beneficial interest is held by a depositor who is a natural person.
PERSONAL TIME DEPOSIT

A time deposit that represents funds deposited to the credit of or in which the entire beneficial
interest is held by a natural person, including a time deposit that is issued to or held by a natural person
and that contains a statement on its face that it is not transferable.
PREAUTHORIZED TRANSFER

Any arrangement by the reporting institution to pay a third party from the account of a depositor
upon written or oral instruction (including an order received through an automated clearing house
(ACH)), or any arrangement by the reporting institution to pay a third party from the account of the
depositor at a predetermined time or on a fixed schedule.
Also see telephone and preauthorized transfer accounts.

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PRIMARY OBLIGATIONS

- Please refer to Section 1, Subsections E.3 through E.6 of these instructions for detail on Primary
Obligations. Also refer to Regulation D.
REDUCED REPORTING LIMIT

The amount of total deposits, if equaled or exceeded at a depository institution, whereby the
institution must report on the FR 2900 weekly, regardless of the level of their net transactions accounts.
Any institution with total deposits greater than or equal to the reduced reporting limit is required
to report an FR 2900 weekly, regardless of the level of their net transaction accounts. Initially set at $1
billion in 2003, the reduced reporting limit is indexed to 80 percent of the June 30-to-June 30 growth in
total deposits at all depository institutions. As with current indexation procedures, if total deposits
decline in that period, the reduced reporting limit would remain unchanged. The revised reduced
reporting limit is effective for the 12-month period beginning in the September following the
announcement of the revised reduced reporting limit each year.

REMOTE SERVICES UNIT (RSU)

RSU includes, without limitation, point-of-service terminals, merchant-operated terminals,
cash-dispensing machines, and automated teller machines.
REPURCHASE AGREEMENT

An arrangement involving the sale of a security or other asset under a prearranged agreement to
repurchase the same or similar security or asset at a later date.

RETURNED ITEM

A check or draft that is returned by a drawee institution to the presenting institution because of
certain irregularities that, if waived, might result in a loss to the drawee institution. The item is returned
so that the presenting institution may correct the defect or take such other action as may be necessary,
such as charging the depositor's account.
SAVINGS DEPOSIT

A savings deposit is a deposit described in Section 1, Subsection E.1, or a primary obligation
described in Section 1, Subsection E.3, with respect to which the depositor is not required by the deposit
contract but may at any time be required by the depository institution to give written notice of an intended
withdrawal not less than seven days before withdrawal is made, and that is not payable on a specified date

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or at the expiration of a specified time after the date of deposit.
The term savings deposit also means a deposit or account, such as an account commonly known
as a passbook savings account, a statement savings account, or a money market deposit account
(“MMDA”), that otherwise meets the requirements of the preceding paragraph and from which, under the
terms of the deposit contract or by practice of the depository institution, the depositor is permitted or
authorized to make no more than six transfers and withdrawals, or a combination of such transfers and
withdrawals, per calendar month or statement cycle (or similar period) of at least four weeks, to another
account (including a transaction account) of the depositor at the same institution or to a third party by
means of a preauthorized or automatic transfer, or telephonic (including data transmission), agreement,
order or instruction, and no more than three of the six such transfers may be made by check, draft, debit
card, or similar order made by the depositor and payable to third parties.
For additional information, please refer to the detailed FR 2900 instructions for savings deposits.

SERVICE CORPORATION

A corporation, owned by one or more thrifts, that performs services and engages in certain
activities for its owners, such as originating, holding, selling and servicing mortgages; performing
appraisal, brokerage, clerical, escrow, research, and other services; and acquiring, developing, or
renovating and holding real estate for investment purposes. See 12 CFR 545.74.
SHARE ACCOUNT

Funds in the form of shares purchased by a member or other approved depositor which are
received or held by the credit union in its usual course of business and for which the credit union has
given, or is obligated to give, credit to the account of the depositor. This account is not payable on a
specified date or after a specified period of time. However, the credit union expressly reserves the right to
require at least seven days' written notice before an intended withdrawal of all or any portion of the shares
in an account.
SHARE CERTIFICATE

A transferable or nontransferable instrument or account which provides on its face or in the
underlying agreement that a specified amount of shares is payable to the bearer or to any specified person:
1. on a certain date, specified in the instrument or underlying account, not less than seven days
after the purchase date of shares; or
2. at the expiration of a certain specified time not less than seven days after the date the
instrument is issued or the account is opened; or
3. upon notice in writing which actually is required to be given by the certificate holder not less
than seven days before the date of repayment.

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SHARE DRAFT

A negotiable or nonnegotiable draft signed by the account holder directing the credit union on
which the draft is drawn to pay a certain sum of money on demand to the order of a specified person or
bearer. Such drafts are used to withdraw funds from a share draft account.
SHARE DRAFT ACCOUNT

A share account from which funds may be withdrawn or transferred to third parties by issuance of
a negotiable or transferable instrument or other order.

SUBORDINATED NOTE AND DEBENTURE

An obligation satisfying all of the following requirements:
1. is not insured by a Federal agency;
2. is subordinated to the claims of depositors;
3. has a weighted average maturity of five years or more; and
4. is issued by a depository institution with the approval or under the rules and regulations of its
primary Federal supervisor.
SUSPENSE ACCOUNTS

Temporary holding accounts in which items are carried until they can be identified and their
disposition to the proper asset or liability account can be made.

SWEEP ARRANGEMENTS

Sweep arrangements are contractual agreements between the institution and its customers that
allow funds to be automatically transferred between different types of deposit accounts or between
deposit accounts and other interest-bearing instruments.
TELEPHONE AND PREAUTHORIZED TRANSFER ACCOUNTS

This entry defines telephone and preauthorized transfer accounts that are regarded as transaction
accounts. Telephone and preauthorized transfers are allowed on a more limited basis from savings
deposits. Please refer to the entry in this Glossary and to the detailed FR 2900 instructions for savings

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deposits for additional information.
Telephone and preauthorized transfer accounts that are regarded as transaction accounts are
deposits or accounts, other than savings deposits, (1) in which the entire beneficial interest is held by a
party eligible to hold a NOW account, (2) on which the reporting institution has reserved the right to
require at least seven days' written notice prior to withdrawals or transfer of any funds in the account, and
(3) under the terms of which, or by practice of the reporting institution, the depositor is permitted or
authorized to make more than six withdrawals per month or statement cycle (or similar period) of at least
four weeks for purposes of transferring funds to another account of the depositor at the same institution
(including a transaction account) or for making payment to a third party by means of preauthorized
transfer, or telephonic (including data transmission) agreement, order or instruction. An account that
permits or authorizes more than six such withdrawals in a month is a transaction account whether or not
more than six such withdrawals actually are made in a month. (A month is a calendar month, or any
period approximating a month that is at least four weeks long, such as a statement cycle.)
A preauthorized transfer includes any arrangement by the reporting institution to pay a third party
from the account of a depositor upon written or oral instruction (including an order received through an
automated clearing house (ACH)), or any arrangement by the reporting institution to pay a third party
from the account of the depositor at a predetermined time or on a fixed schedule.
Telephone and preauthorized transfers also include deposits or accounts maintained in connection
with an arrangement that permits the depositor to obtain credit directly or indirectly through the drawing
of a negotiable or nonnegotiable check, draft, order or instruction or other similar device (including
telephone or electronic order or instruction) on the issuing institution that can be used for the purpose of
making payments or transfers to third persons or others, or to a deposit account of the depositor.
Also include in this item the balance of deposits or accounts that otherwise meet the definition of
time deposits, but from which payments may be made to third parties by means of a debit card, an
automated teller machine, remote service unit or other electronic device, regardless of the number of
payments made.
Accounts that otherwise meet the definition of telephone or preauthorized transfers as defined
above but that are held by a depositor that is not eligible to hold a NOW account are demand deposits.
However, an account is not a transaction account merely by virtue of arrangements that permit the
following types of transfers or withdrawals, regardless of the number:
1. Transfers for the purpose of repaying loans and associated expenses at the same depository
institution (as originator or servicer).
2. Transfers of funds from this account to another account of the same depositor at the same
depository institution when made by mail, messenger, automated teller machine, or in person.
3. Withdrawals for payment directly to the depositor when made by mail, messenger, automated
teller machine, in person, or by telephone (via check mailed to the depositor).
For additional information, please refer to the detailed FR 2900 instructions for telephone and
preauthorized transfer accounts.
TELLER'S CHECK

A check or draft drawn by a depository institution on another depository institution, a Federal

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Reserve Bank, or a Federal Home Loan Bank, or payable at or through a depository institution, Federal
Reserve Bank, or a Federal Home Loan Bank. For additional detail on reporting, see Section 1,
Subsection E.1.c. (page 12).
Teller's checks do not include checks or drafts sold by a bank acting in an agency capacity where
that capacity is clearly stated on the face of the check or checks or drafts drawn without recourse where
permitted by state law.

TIME CERTIFICATE OF DEPOSIT

A deposit described in Section 1, Subsection E.1, or a primary obligation described in Section 1,
Subsection E.3, that is payable on a specified date, after a specified period of time from the date of
deposit, or after a specified notice period, which may be not less than seven days from the date of deposit.
A time deposit may be represented by a transferable or nontransferable, or a negotiable or
nonnegotiable, certificate, instrument, passbook or statement. A nonnegotiable time deposit is
distinguished from a nontransferable time deposit in that the transferee of a nonnegotiable time deposit
would not be a holder in due course and would not have the ability to cut off certain defenses of an
obligor even though an exchange for value can be made. A nontransferable time deposit allows no
exchange for value to be made.

TIME DEPOSIT

A deposit described in Section 1, Subsection E.1, or a primary obligation described in Section 1,
Subsection E.3, that the depositor does not have a right and is not permitted to make withdrawals from
within six days after the date of deposit unless the deposit is subject to an early withdrawal penalty of at
least seven days' simple interest on amounts withdrawn within the first six days after deposit. A time
deposit from which partial early withdrawals are permitted must impose additional early withdrawal
penalties of at least seven days' simple interest on amounts withdrawn within six days after each partial
withdrawal. If such additional early withdrawal penalties are not imposed, the account ceases to be a time
deposit. The account may become a savings deposit if it meets the requirements for a savings deposit;
otherwise it becomes a demand deposit.
Please refer to the detailed FR 2900 instructions for time deposits for additional information.
TIME DEPOSIT, OPEN ACCOUNT

A deposit other than a time certificate of deposit, with respect to which there is in force a written
contract with the depositor that neither the whole nor any part of such deposit may be withdrawn prior to
the date of maturity, which shall be not less than seven days after the date of deposit, or prior to the
expiration of the period of notice which must be given by the depositor in writing not less than seven days
in advance of withdrawal.

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TRANSACTION ACCOUNT

Please refer to Section 2, Item-by-Item Instructions, for a detailed description of the treatment of
Transaction Accounts.
TRANSFERABLE

The transferee of a transferable time deposit may be a holder in due course and would have the
ability to cut off certain defenses of an obligor. A time deposit is not considered a transferable time
deposit merely because it can be pledged as collateral for a loan from any lender, or merely because the
title or beneficial interest in the deposit or account can be passed on in circumstances arising from death,
bankruptcy, divorce, marriage, incompetency, attachment, or otherwise by operation of law. In addition,
the reissuance of a time deposit by an institution in the name of another or the addition or subtraction of
names on the time deposit will not be regarded as a transfer.

UNPOSTED CREDITS

Items that have been received for deposit and that are in process of collection but that have not
been posted to individual or general ledger deposit accounts. These credits should be reported as
deposits.
UNPOSTED DEBITS

Cash items drawn on the reporting institution that have been “paid” or credited by the institution
and that are chargeable but that have not been charged against deposits as of the close of business. These
items should be reported as “cash items in process of collection” until they have been charged to either
individual or general ledger deposit accounts.
U.S. (United States)

The 50 states of the United States and the District of Columbia, and military facilities, wherever
located.
U.S. BRANCHES AND AGENCIES OF NON-U.S. BANKS

Branches and agencies of foreign (non-U.S.) banks that operate as a U.S. office of their foreign
(non-U.S.) parent bank. The branch or agency may be licensed by the U.S. Government, or by a state of
the U.S. As defined by Section 1 of the International Banking Act of l978 (12 U.S.C. §3101), a “branch”
means any office or any place of business of a foreign bank located in any state of the United States at
which deposits are received; an “agency” means any office or any place of business of a foreign bank
located in any state of the United States at which credit balances are maintained incidental to or arising
out of the exercise of banking powers, checks are paid, or money is lent but at which deposits may not be

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accepted from citizens or residents of the United States.
U.S. TREASURY GENERAL ACCOUNT

A Treasury account maintained at the reporting institution to which government officers deposit
funds obtained in connection with special collections, such as customs fees or other tax collections.
U.S. TREASURY TAX AND LOAN ACCOUNT

A Treasury demand deposit account maintained at the reporting depository institution through
which the Treasury receives deposits (receipts), principally of Federal tax payments and proceeds from
the sale of savings bonds. The account does not include treasury tax and loan account note balances.

U.S. TREASURY TAX AND LOAN ACCOUNT NOTE BALANCE

That balance representing the total amount outstanding of open-ended interest-bearing notes
issued by the reporting depository institution to the U.S. Treasury under the U.S. treasury tax and loan
account note option program.
A depository authorized to accept U.S. treasury tax and loan account deposits may administer
such accounts under either of two options: (1) the remittance option or (2) the note option. Under the
remittance option, depositories must send the previous day's tax and loan account balance as of the close
of business to the Federal Reserve Banks. Under the note option, depositories will automatically convert
the previous day's close-of-business balance in their tax and loan account to an interest-bearing demand
note, which must be fully collateralized.

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