(MA)-Reports of Condition and Income (Interagency Call Report)

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Instructions for New Call Report Items Associated with
the Dodd-Frank Act’s Temporary Unlimited Insurance Coverage on
Noninterest-Bearing Transaction Accounts
(Effective December 31, 2010)
Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments
Memoranda
Item No.
5

Caption and Instruction
Noninterest-bearing transaction accounts (as defined in Section 343 of the Dodd-Frank
Act) of more than $250,000.
NOTE: Schedule RC-O, Memorandum items 5.a and 5.b, below, for the amount and
number of noninterest-bearing transaction accounts of more than $250,000 are to be
completed – beginning in the reports for December 31, 2010 – by all FDIC-insured
depository institutions, whether or not they had previously opted to participate in the
FDIC’s Transaction Account Guarantee Program. Memorandum items 5.a and 5.b are
to be reported as of the quarter-end report date, not as daily averages for the quarter.
Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act amended
the Federal Deposit Insurance Act with respect to the insurance coverage of noninterestbearing transaction accounts. These amendments take effect December 31, 2010, and
require the FDIC to “fully insure the net amount that any depositor at an insured depository
institution maintains in a noninterest-bearing transaction account.” This unlimited insurance
coverage will be in effect only through December 31, 2012.
As defined in Section 343 of the Dodd-Frank Act, a “noninterest-bearing transaction account”
is an account (in a domestic office or an insured branch in Puerto Rico or a U.S. territory or
possession) “(I) with respect to which interest is neither accrued nor paid; (II) on which the
depositor or account holder is permitted to make withdrawals by negotiable or transferable
instrument, payment orders of withdrawal, telephone or other electronic media transfers, or
other similar items for the purpose of making payments or transfers to third parties or others;
and (III) on which the insured depository institution does not reserve the right to require
advance notice of an intended withdrawal.”
Thus, the term “noninterest-bearing transaction account” includes all demand deposits,
including certified checks and official checks (such as cashiers’ checks and money orders)
drawn on the reporting institution. However, pursuant to Section 627 of the Dodd-Frank Act,
as of July 21, 2011, institutions will no longer be restricted from paying interest on demand
deposit accounts. At that time, if an institution modifies the terms of its demand deposit
account agreement so that the account may earn interest, the account will no longer satisfy
the definition of a noninterest-bearing transaction account, will no longer be eligible for full
deposit insurance coverage, and should no longer be reported in Memorandum items 5.a
and 5.b.
Even if checks may be drawn on the account, a “noninterest-bearing transaction account”
does not include, for example, any transaction account that may earn interest, such as a
negotiable order of withdrawal (NOW) account; a money market deposit account (MMDA) as
defined in Federal Reserve Regulation D; or an Interest on Lawyers Trust Account (IOLTA).

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Memoranda
Item No.

Caption and Instructions

5
(cont.)

Account features such as the waiver of fees or the provision of fee-reducing credits do not
prevent an account from qualifying as a noninterest-bearing transaction account as long as
the account otherwise satisfies the definition of a noninterest-bearing transaction account.
In determining whether funds are in a noninterest-bearing transaction account for purposes of
reporting in Memorandum items 5.a and 5.b, the FDIC will apply its normal rules and
procedures under Section 360.8 of the FDIC’s regulations for determining account balances
at a failed insured depository institution. Under these procedures, funds may be swept or
transferred from a noninterest-bearing transaction account to another type of deposit account
or product that is not a noninterest-bearing transaction account. Except as described in the
following sentence, unless the funds are in a noninterest-bearing transaction account after
the completion of a sweep under Section 360.8, the funds in the resulting account or product
will not be eligible for full deposit insurance coverage and they should not be reported in
Memorandum items 5.a and 5.b. However, in the case of funds swept from a noninterestbearing transaction account to a noninterest-bearing savings account as defined in Federal
Reserve Regulation D, the FDIC will treat the swept funds as being in a noninterest-bearing
transaction account. If the sum of the swept funds in the noninterest-bearing savings
account plus any amount remaining in the related noninterest-bearing transaction account is
more than $250,000, this sum should be reported in Memorandum item 5.a and the swept
funds and the related noninterest-bearing transaction account should be reported as one
account in Memorandum item 5.b.
Include public funds held in “noninterest-bearing transaction accounts” of more than
$250,000 whether or not they are collateralized with pledged securities or other pledged
assets.
Report in the appropriate subitem the amount outstanding and the number of noninterestbearing transaction accounts (as defined above and in any FDIC regulations implementing
Section 343) with a balance on the report date of more than $250,000. An institution may
exclude noninterest-bearing transaction accounts with a balance of more than $250,000 if the
entire balance in the account is fully insured under the FDIC’s regular deposit insurance rules
(i.e., without considering the insurance protection provided under Section 343), such as joint
account relationship rules or “pass-through” insurance coverage rules. In noninterest-bearing
transaction accounts with a balance of more than $250,000 where the entire balance is not
fully insured, an institution may exclude any amounts over $250,000 that are otherwise
insured under the FDIC’s regular deposit insurance rules. These amounts may be excluded
to the extent that they can be determined by the institution and fully supported in the
institution’s workpapers for this report. An institution is not required to make a determination
of amounts otherwise insured but may do so at its option.

5.a

Amount of noninterest-bearing transaction accounts of more than $250,000.
Report the aggregate balance of all noninterest-bearing transaction accounts (as defined in
Schedule RC-O, Memorandum item 5, above) with a balance on the report date of more than
$250,000. This amount should represent the total of the balances of the noninterest-bearing
transaction accounts enumerated in Call Report Schedule RC-O, Memorandum item 5.b,
below.

5.b

Number of noninterest-bearing transaction accounts of more than $250,000.
Report the total number of noninterest-bearing transaction accounts (as defined in
Schedule RC-O, Memorandum item 5, above) with a balance on the report date of more
than $250,000.

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Revised Call Report Instructions for
Reporting Estimated Uninsured Deposits In Response to
the Dodd-Frank Act’s Temporary Unlimited Insurance Coverage on
Noninterest-Bearing Transaction Accounts
(Effective December 31, 2010)
Schedule RC-O – Other Data for Deposit Insurance and FICO Assessments
Memoranda
Item No.
2

Caption and Instruction
Estimated amount of uninsured assessable deposits (in domestic offices of the bank
and in insured branches in Puerto Rico and U.S. territories and possessions),
including related interest accrued and unpaid.
Schedule RC-O, Memorandum item 2, is to be completed on an unconsolidated single FDIC
certificate number basis by banks with $1 billion or more in total assets.
Report the estimated amount of the bank's deposits (in domestic offices and in insured
branches in Puerto Rico and U.S. territories and possessions) that is not covered by federal
deposit insurance. This estimate should reflect the temporary unlimited insurance coverage
on noninterest-bearing transaction accounts 1 (as defined in Schedule RC-O, Memorandum
item 5) as well as the deposit insurance limits of $250,000 for “retirement deposit accounts”
(as defined in Schedule RC-O, Memorandum item 1) and $250,000 for other deposit
accounts (exclusive of noninterest-bearing transaction accounts), but without taking into
account the effect of the bank’s participation in the FDIC’s Debt Guarantee Program. The
reporting of this uninsured deposit information is mandated by Section 7(a)(9) of the Federal
Deposit Insurance Act.
The estimated amount of uninsured deposits reported in this item should be based on the
bank’s deposits included in Schedule RC-O, item 1, “Total deposit liabilities before exclusions
(gross) as defined in Section 3(l) of the Federal Deposit Insurance Act and FDIC regulations,”
less item 2, “Total allowable exclusions, including interest accrued and unpaid on allowable
exclusions (including foreign deposits).” In addition to the uninsured portion of deposits in
“domestic offices” reported in Schedule RC, item 13.a, the estimate of uninsured deposits
should take into account all other items included in Schedule RC-O, item 1 less item 2,
including, but not limited to:





Interest accrued and unpaid on deposits in domestic offices;
Deposits in insured branches in Puerto Rico and U.S. territories and possessions
(including interest accrued and unpaid on these deposits);
Deposits of consolidated subsidiaries in domestic offices and in insured branches in
Puerto Rico and U.S. territories and possessions (including interest accrued and unpaid
on these deposits); and
Deposit liabilities that have been reduced by assets netted against these liabilities in
accordance with generally accepted accounting principles.

1

Pursuant to Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, unlimited insurance
coverage on noninterest-bearing transaction accounts is in effect from December 31, 2010, through December 31,
2012.

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Memoranda
Item No.

Caption and Instruction

2
(cont.)

The bank's estimate of its uninsured deposits should be reported in accordance with the
following criteria. Regardless of these criteria, all noninterest-bearing transaction accounts
(as defined in Schedule RC-O, Memorandum item 5) must be treated as insured deposits
and excluded from the estimate of uninsured deposits. Furthermore, it is recognized that a
bank may have multiple automated information systems for different types of deposits and
that the capabilities of a bank’s information systems to provide an estimate of its uninsured
deposits will differ from bank to bank at any point in time and, within an individual institution,
may improve over time.
(1) If the bank has brokered deposits, which must be reported in Schedule RC-E,
Memorandum item 1.b, "Total brokered deposits," it must use the information it has
developed for completing Schedule RC-E, Memorandum item 1.c, "Fully insured
brokered deposits," to determine its best estimate of the uninsured portion of its brokered
deposits.
(2) If the bank has deposit accounts whose ownership is based on a fiduciary relationship,
Part 330 of the FDIC's regulations generally states that the titling of the deposit account
(together with the underlying records) must indicate the existence of the fiduciary
relationship in order for insurance coverage to be available on a "pass-through" basis.
Fiduciary relationships include, but are not limited to, relationships involving a trustee,
agent, nominee, guardian, executor, or custodian.
A bank with fiduciary deposit accounts with balances of more than $250,000 must
diligently use the available data on these deposit accounts, including data indicating the
existence of different principal and income beneficiaries and data indicating that some or
all of the funds on deposit represent retirement deposit accounts eligible for $250,000 in
deposit insurance coverage, to determine its best estimate of the uninsured portion of
these accounts.
(3) If the bank has deposit accounts of employee benefit plans, Part 330 of the FDIC's
regulations states that these accounts are insured on a "pass-through" basis for the
non-contingent interest of each plan participant provided that certain prescribed
recordkeeping requirements are met. A bank with employee benefit plan deposit
accounts with balances of more than $250,000 must diligently use the available data on
these deposit accounts to determine its best estimate of the uninsured portion of these
accounts.
(4) If the bank's deposit accounts include benefit-responsive "Depository Institution
Investment Contracts," which must be included in Schedule RC-O, item 2, these deposit
liabilities are not eligible for federal deposit insurance pursuant to Section 11(a)(8) of the
Federal Deposit Insurance Act. A bank with benefit-responsive "Depository Institution
Investment Contracts" must include the entire amount of these contracts in the estimated
amount of uninsured deposits it reports in this Memorandum item 2.
(5) If the bank has deposit accounts with balances in excess of the federal deposit
insurance limit that it has collateralized by pledging assets, such as deposits of the
U.S. Government and of states and political subdivisions in the U.S. (which must be
reported in Schedule RC-E, items 2 and 3, and, on the FFIEC 031 report form, in
Schedule RC-E, part II, item 5), the bank should make a reasonable estimate of the
portion of these deposits that is uninsured using the data available from its information
systems.

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Memoranda
Item No.

Caption and Instruction

2
(cont.)

(6) If the bank has deposit accounts with balances in excess of the federal deposit insurance
limit for which it has acquired private deposit insurance to cover this excess amount, the
bank should make a reasonable estimate of the portion of these deposits that is not
insured by the FDIC using the data available from its information systems.
(7) For all other deposit accounts, the bank should make a reasonable estimate of the
portion of these deposits that is uninsured using the data available from its information
systems. In developing this estimate, if the bank has automated information systems in
place that enable it to identify jointly owned accounts and estimate the deposit insurance
coverage of these deposits, the higher level of insurance afforded these joint accounts
should be taken into consideration. Similarly, if the bank has automated information
systems in place that enable it to classify accounts by deposit owner and/or ownership
capacity, the bank should incorporate this information into its estimate of the amount of
uninsured deposits by aggregating accounts held by the same deposit owner in the same
ownership capacity before applying the $250,000 insurance limit. Ownership capacities
include, but are not limited to, single ownership, joint ownership, business (excluding sole
proprietorships), revocable trusts, irrevocable trusts, and retirement accounts.
In the absence of automated information systems, a bank may use nonautomated information
such as paper files or less formal knowledge of its depositors if such information provides
reasonable estimates of appropriate portions of its uninsured deposits. A bank's use of such
nonautomated sources of information is considered appropriate unless errors associated with
the use of such sources would contribute significantly to an overall error in the FDIC's
estimate of the amount of insured and uninsured deposits in the banking system.

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