Treasury International Capital (TIC) Form CQ-1 "Report of Financial Liabilities to, and Financial Claims on, Unaffiliated Foreign Residents" and Form CQ-2 "Report of Commercial Liabilities to, and Com

INSTRUCTIONS FOR THE QUARTERLY TREASURY
INTERNATIONAL CAPITAL (TIC) FORM C REPORTS
Reports of Liabilities to, and Claims on, Unaffiliated Foreign
Residents by U.S. Resident Non-Financial Institutions

TIC C REPORTS
CQ-1 Report of Financial Liabilities to, and Financial Claims on, Unaffiliated Foreign
Residents
CQ-2 Report of Commercial Liabilities to, and Commercial Claims on, Unaffiliated Foreign
Residents

Department of the Treasury
Federal Reserve Bank System
Board of Governors of the Federal Reserve System
MANDATORY REPORT
RESPONSE REQUIRED BY LAW
(22 U.S.C. 3101 et seq.)

Revised September 2013. See summary on page iii.
These instructions apply only to reports with as-of-dates on or after December 31, 2013.

Table of Contents
I.

General Instructions .................................................................................. 1
A.

Organization of the Instruction Book ............................................................... 1

B.

Introduction ................................................................................................... 1
1.
Purpose and Notice Under Paperwork Reduction Act .............................. 1
2.
TIC C Forms and Reporting Burden ...................................................... 2
3.
Authority and Penalties ........................................................................ 2
4.
Confidentiality ..................................................................................... 2
5.
Other Statistical Reports ...................................................................... 3

C.

Reporting Requirements ................................................................................. 4
1.
Reportable Entities .............................................................................. 4
2.
Consolidation/Combination Rules .......................................................... 4
3.
Forms to be Used to Report Cross-Border Positions ............................... 5
4.
Exemption Levels ................................................................................ 5

D.

Accounting Issues .......................................................................................... 6
1.
General ............................................................................................... 6
2.
Foreign Currency Denominated Positions .............................................. 6
3.
Charge-offs ......................................................................................... 7

E.

Reporting the Location of Foreign Counterparties ............................................. 7
1.
Countries and Other Areas ................................................................... 7
2.
Determining Residency: ....................................................................... 7

F.

Submission of Reports .................................................................................... 8
1.
Where to Report .................................................................................. 8
2.
Methods of Reporting .......................................................................... 8
3.
Signature Requirements ....................................................................... 9
4.
Reporter ID Number ............................................................................ 9
5.
Record Keeping Requirement ............................................................... 9
6.
Review of Data and Requests of Revised Data....................................... 9

II. TIC Form CQ-1: Report of Financial Liabilities to, and Financial Claims on,
Unaffiliated Foreign Residents ............................................................. 10
A.

What
1.
2.
3.
4.

B.

Column Instructions ..................................................................................... 12

Table of Contents

to Report ............................................................................................ 10
Reportable Liabilities and Claims......................................................... 10
Unaffiliated foreign resident ............................................................... 11
Lease Payments ................................................................................ 11
Specific Exclusions ............................................................................. 11

i

1.
2.
3.
4.
5.
C.

Short-term Negotiable Securities (Column 1) ....................................... 12
Other Liabilities to Foreigners (Column 2) ........................................... 12
Non-negotiable Foreign Deposits (Column 3)....................................... 12
Negotiable CDs & All Short-term Negotiable Securities (Column 4) ....... 12
Other Claims on Foreigners (Column 5) .............................................. 13

”Of Which” Items ......................................................................................... 13
1.
Type of Instrument............................................................................ 13
2.
Assets Written Off This Quarter .......................................................... 13
3.
Foreign Currency Memorandum Rows ................................................. 13
4.
Remaining Maturities - Claims ........................................................... 14
5.
Remaining Maturities- Liabilities ......................................................... 14

III. TIC Form CQ-2: Report of Commercial Liabilities to, and Commercial
Claims on, Unaffiliated Foreign Residents ........................................... 17
A.

What
1.
2.
3.

to Report ............................................................................................ 17
Reportable Liabilities and Claims......................................................... 17
Unaffiliated foreign resident ............................................................... 17
Specific Exclusions ............................................................................. 17

B.

Column Instructions ..................................................................................... 18
1.
Trade Payables (Column 1) ................................................................ 18
2.
Advance Receipts and Other Liabilities (Column 2) .............................. 18
3.
Trade Receivables (Column 3) ............................................................ 18
4.
Advance Payments and Other Claims (Column 4) ................................ 18

C.

Memorandum Row Instructions ..................................................................... 19
1.
Assets Written Off This Quarter .......................................................... 19
2.
Foreign Currency Memorandum Rows ................................................. 19
3.
Remaining Maturities - Claims ............................................................ 19
4.
Remaining Maturities - Liabilities ........................................................ 19

IV. Glossary ................................................................................................... 22
APPENDIX A: Reporting Requirement Flowcharts......................................... 29
APPENDIX B: Geographical Classification ..................................................... 33
APPENDIX C: List of Foreign Official Institutions .......................................... 34

Table of Contents

ii

REVISIONS, Summary of:
-- May 2013. These instructions apply only to reports with as-of dates on or after December 31,
2013. As a consequence of the recent global financial crisis, international reporting standards
for collecting and reporting economic and financial data were enhanced. TIC C forms and
instructions are consequently revised to meet the new standards. (a) The “who must report”
section of the instructions is revised. Beginning with the reports as of December 31, 2013, the
types of organizations required to file the TIC CQ-1 and CQ-2 reports (the TIC C reports) will
include all U.S. residents except U.S.-resident financial institutions. This means that those
financial institutions that previously reported on the TIC C forms (all financial institutions except
banks, other depository institutions, bank and financial holding companies, and brokers and
dealers that already report on the TIC B forms; this group includes, but is not limited to
investment banks, insurance companies, credit card issuers, money market funds, pension
funds, private equity funds, hedge funds, trusts, finance companies, mortgage companies,
commodity brokers and dealers, investment advisors and managers, loan brokers), will instead
begin reporting on the TIC B forms. (b) In “Foreign Currency Items,” which is after the “Grand
Total” row (9999-6) near the end of both Form CQ-1 and Form CQ-2, a new row has been
added to collect information on claims and liabilities “Denominated in Swiss Francs.” Data are
reportable in all six columns of the CQ-1 and all five columns of the CQ-2. (c) After the “Grand
Total” row (9999-6) near the end of both Form CQ-1 and Form CQ-2, a new sub-section has
been added called “Remaining Maturities (claims).” The new sub-section in the CQ-1 has three
rows labeled: “Demand Deposits, Arrears, Resale Agreements Under Continuing Contract, and
Items With No Fixed Maturity;” “Maturing in 1 Year or Less;” and “Maturing in Over 1 Year.”
Data are reportable in all six columns. The new sub-section in the CQ-2 has three rows labeled:
“Arrears and Items With No Fixed Maturity;” “Maturing in 1 Year or Less;” and “Maturing In
Over 1 Year.” Data are reportable in all five columns. (d) Just after the Grand Total row (99996) near the end of both Form CQ- 1 and Form CQ-2, the caption “Section (B) Memorandum
Items:” is replaced by “"Of Which" Items:”. Just before “Europe” on page two of both forms,
the caption “Section A: Selected Positions with Unaffiliated Foreigners:” is deleted. (e) The
instructions for these forms add instructions for reporting on the new rows described in (b) and
(c) above. (f) The General Instructions have been reorganized and contain new guidance on
reporting accrued interest and on where to report. (g) Several sections of the instructions,
including the glossary, incorporate changes to clarify the reporting requirements, such as the
consolidation/combination rules, valuation rules, and reporting the location of foreign
counterparties. (h) On all TIC reporting forms, the list of countries for reporting the location of
foreign counterparties will be increased by six. This is the result of deleting Netherlands Antilles
(3720-6), removing “Montenegro” from “Serbia and Montenegro (1321-8)”, and adding Kosovo
(1347-1), Montenegro (1362-5), Bonaire, St. Eustatius and Saba (3616-1), Curaçao (3618-8),
St. Martin and St. Barthelemy (3647-1), St. Maarten (3619-6), and South Sudan (5339-2).

Table of Contents

iii

I.

General Instructions
A. Organization of the Instruction Book
This instruction book covers the Treasury International Capital (TIC) C report forms
(Forms CQ-1 and CQ-2). It is divided into the following sections:


Section I (General Instructions) - The general instructions describe the purpose of
the TIC C forms and a variety of administrative issues, including the authority under
which the data are collected and confidentiality conditions. The general instructions
also describe the treatment of issues common to both of the TIC C forms, including
who should report, exemption levels, accounting issues, and the determination of
the location of the foreign counterparty. Finally, information on the submission of
reports is provided.



Sections II-III (Specific Form Instructions) - These sections give the specific
reporting requirements for each TIC C form. The specific instructions include what
to report and instructions relating to the columns and memorandum rows of each
form. To avoid excessive repetition, the instructions and definitions build upon the
information in the general instructions, the glossary, and the appendices.



Section IV (Glossary) - The glossary presents definitions, discussions of accounting
issues, and other topics that require more extensive treatment than is practical to
include in the body of the instructions.



Section V (Appendices) – Provides the following appendices:
▫

Flowcharts showing the reporting requirements.

▫

Geographical Classification list: A list of country and organizational codes for
purposes of reporting on the TIC forms.

▫

Foreign Official Institutions list: A list of certain foreign institutions classified
as “official” for reporting on the TIC forms.

The forms and instructions are available on the Internet at the U.S. Treasury's web site
http://www.treasury.gov/resource-center/data-chart-center/tic/Pages/index.aspx.

B. Introduction
1. Purpose and Notice Under Paperwork Reduction Act
The purpose of the TIC C forms is to gather timely and reliable information on the
levels of, and changes in, U.S. international portfolio capital positions. This
information is needed for the preparation of the U.S. Balance of Payments Accounts
and the U.S. International Investment Position, and for the formulation of U.S.
international financial and monetary policies. The data are also needed to enable the
United States to comply with standards for providing data on cross-border financial
positions, including adherence to the International Monetary Fund’s Special Data
Dissemination Standard. Aggregate data are published in the Treasury Bulletin and
the Federal Reserve Bulletin, and are available on the Treasury website at
http://www.ustreas.gov/tic.

General Instructions

1

2. TIC C Forms and Reporting Burden
For the TIC C Forms, the data collected, and frequency of each form are as follows:
TIC C Forms: Data Collected and Frequency
Form

Data Collected from U.S. Residents Other Than
Financial Institutions

Frequency

CQ-1

Financial Liabilities to, and Financial Claims on,
Unaffiliated Foreign Residents

Quarterly

CQ-2

Commercial Liabilities to, and Commercial Claims on,
Unaffiliated Foreign Residents

Quarterly

The Office of Management and Budget has reviewed and approved these forms
under control number 1505-0024.
The Treasury Department has estimated the average burden associated with the
collection of information on each TIC C form per respondent, but these will vary
across reporting institutions: (a) for TIC CQ-1, an overall average burden of 6.7
hours; and (b) for TIC CQ-2, an overall average burden of 6.7 hours. These
estimates include the time it will take to read the instructions, gather the necessary
facts and fill out the forms. Comments concerning the accuracy of these burden
estimates and suggestions for reducing reporting burden should be directed to the
IA Office of Program Services, U.S. Treasury Department, Washington, D.C. 20220,
Attention: International Portfolio Investment Data Systems; or the Office of
Management and Budget, Paperwork Reduction Project, Washington, D.C. 20503.
(Please reference control number 1505-0024.)
3. Authority and Penalties
These reports are required by law (22 U.S.C. 286f; 22 U.S.C. 3103; E.O.10033; E.O.
11961; 31 C.F.R. 128.1(a)). Failure to report can result in a civil penalty of not
less than $2,500 and not more than $25,000. Willful failure to report can result in
criminal prosecution and, upon conviction, a fine of not more than $10,000; and if
an individual, imprisonment for not more than one year, or both. Any officer,
director, employee, or agent of any corporation who knowingly participates in such
violation may, upon conviction, be punished by a like fine, imprisonment, or both (22
U.S.C. 3105 (a), (b) and (c); 31 C.F.R. 128.4 (a) and (b)).
4. Confidentiality
Data reported on these forms will be held in confidence by the Department of the
Treasury, the Board of Governors of the Federal Reserve System, and the Federal
Reserve Bank of New York, acting as fiscal agent of the Treasury. The data reported
by individual respondents will not be published or otherwise publicly disclosed;
information may be given to other Federal agencies, insofar as authorized by
applicable law (44 U.S.C. 3501 et seq.; 22 U.S.C. 3101 et seq.). Aggregate data
derived from reports on these forms may be published or otherwise disclosed only in
a manner that does not specifically identify any individual respondent.
General Instructions

2

5. Other Statistical Reports


The TIC B forms are filed by all U.S.-resident banks and other depository
institutions, securities brokers and dealers, Bank Holding Companies/Financial
Holding Companies (BHCs/FHCs), and all other financial institutions. On the TIC
B forms these entities report their short-term securities or non-securities
positions with foreign residents, including foreign affiliates. Also reported on the
TIC B forms are certain positions of the customers of TIC B reporters; TIC C
reporters who are customers of these institutions should not report these
positions to avoid double counting. (For further information see Sections II.A and
III.A.)



The TIC D form is filed by all major U.S.-resident participants in derivatives
markets. This form is designed to obtain data on holdings of, and transactions in,
financial derivatives contracts with foreign residents. Data are collected in
aggregate form to facilitate timely reporting.



The TIC SLT form is filed by all U.S. - resident custodians, issuers and endinvestors. On the TIC SLT form, these entities report aggregate consolidated
holdings of long-term U.S. securities for the accounts of foreign residents,
foreign securities for the accounts of U.S. residents (their own or their
customers) and all securities issuances by the U.S. –resident units of their entity
to foreign residents that are not held by a U.S. resident custodian.



The TIC S form is filed by all U.S.-resident entities that purchase (or sell) longterm securities directly from (or to) foreign residents. This form is designed to
obtain data on foreign residents’ purchases and sales of all long-term securities
(including equities and shares of mutual funds). Data are collected in aggregate
form to facilitate timely reporting.



To improve the accuracy of the TIC system and collect information on positions
in securities, detailed security-by-security data are collected on a less frequent
basis. Two data collection systems are used:



Foreign Holdings of U.S. Securities Including Selected Money Market Instruments
(Form SHL) - Approximately every five years, all significant U.S.-resident
custodians of short-term debt, long-term debt, and equity securities are required
to provide detailed security-by-security information on foreign holdings of U.S.
securities. Also required to report are significant U.S. issuers of bearer bonds
and U.S. issuers of securities that are held by foreigners but not through U.S.
custodians. In the years between these benchmark surveys, the largest of these
reporters are required to submit this security-by-security information annually
(Form SHLA).



U.S. Ownership of Foreign Securities, Including Selected Money Market
Instruments (Form SHC) – Approximately every five years, all significant U.S.resident custodians of foreign securities and U.S.-resident investors holding
securities without using U.S.-resident custodians are required to report detailed
security-by-security information on their holdings of foreign securities. In the
years between these benchmark surveys, the largest of these reporters are
required to submit this security-by-security information annually (Form SHCA).

General Instructions

3



The Treasury Foreign Currency (TFC) forms are designed to obtain data on the
assets, liabilities, and forward positions of large U.S.-resident institutions (both
banking and non-banking) in specified foreign currencies.



Direct Investment – Data on cross-border Direct Investment are collected by the
Bureau of Economic Analysis, U.S. Department of Commerce. The data
collections are designed to obtain comprehensive data on transactions and
positions between affiliated U.S. and foreign companies ("multinational
companies") and on the overall operations of multinational companies. To be
affiliated, a U.S. company must own or control 10 percent or more of the voting
securities of an incorporated foreign business (or an equivalent interest in an
unincorporated foreign business), or a foreign company must own or control 10
percent or more of the voting securities of an incorporated U.S. business (or an
equivalent interest in an unincorporated U.S. business).

C. Who Must Report
The following types of entities that are U.S. residents must report, unless:


Their reportable liabilities to, or claims on, foreign residents are less than the
exemption level for that report Part (See below), or



They are a type of entity (depository institutions, securities brokers and dealers,
bank holding companies/financial holding companies (BHCs/FHCs), and all other
financial institutions) required to file TIC B forms. Or



They are a subsidiary (financial or non-financial) of a U.S. resident company that
files the TIC B report. (Copies of the TIC B reporting instructions and forms are
available at http://www.treasury.gov/resource-center/data-chartcenter/tic/Pages/forms.aspx.)

The types of entities which must file the TIC CQ-1 and TIC CQ-2 reports include:


Commercial and industrial firms



Exporters, importers, trading companies, and foreign sales companies



Subsidiaries of foreign organizations (excluding subsidiaries which are depository
institutions, securities brokers and dealers, and all other financial institutions that
file TIC B reports).



Holding companies (excluding bank holding companies and financial holding
companies that file TIC B reports).



Non-profit organizations, charitable organizations, and foundations



Non-financial proprietorships, partnerships, and limited liability companies



State and local governments

1. Consolidation/Combination Rules
All U.S.-resident companies that are not 50 percent or more owned by another U.S.resident company should file a combined TIC CQ-1 and a combined TIC CQ-2 report
General Instructions

5

for themselves and all of their U.S.-resident subsidiaries that are: (a) 50 percent or
more owned; and (b) are not depository institutions, securities brokers or dealers or
other financial institutions (for which TIC B reports are filed). However, institutions
that are less than 50 percent held should file separate TIC C forms, if they exceed
the exemption level. Note: If two institutions both own 50 percent of an entity, the
entity should be consolidated consistent with the institution’s published financial
statements.
2. Forms to be Used to Report Cross-Border Positions
Reporters are sometimes confused as to what types of organizations and what part
of an organization should file the different types of Treasury International Capital
(TIC) reports. The types of reporters and the corresponding TIC reports that should
be filed are summarized in the table below.

TIC Reporting for Various Reporter Types
Type of Reporter

TIC B
TIC C
Reports Reports

Banks and other depository institutions located in the U.S.
(including limited purpose banks that are subsidiaries of BHCs
and FHCs and of all other companies).

X

Securities brokers and dealers (including those that are
subsidiaries of BHCs and FHCs and of all other companies).

X

U.S.-resident BHCs,FHCs, and SLHCs for themselves and for
all U.S.-resident subsidiaries other than Banks, securities
brokers and dealers, insurance underwriting companies, and
pension funds.

X

Banks, BHCs,FHCs, SLHCs, and all other financial institutions
for their U.S. –resident insurance underwriting companies;
report only debt positions with unaffiliated foreign residents

X

Insurance companies, including insurance underwriting
subsidiaries; report only debt positions with unaffiliated
foreign residents

X

Pension funds, including pension funds subsidiaries; report
only debt positions with unaffiliated foreign residents

X

All other U.S.-resident financial institutions.

X

U.S. non financial holding companies (for themselves and for
all of their U.S.-resident subsidiaries).

X

All other non financial U.S.-resident entities that are not more
than 50 percent owned by another U.S.-resident entity.

X

General Instructions

5

3. Exemption Levels
Exemption levels are applied to the gross reportable liabilities and the gross
reportable claims of the reporting entity combined for all components of the entity
using the consolidation/combination rules described above.
The TIC CQ-1 and TIC CQ-2 forms have separate exemption levels for liabilities (Part
1) and for claims (Part 2). Reporters need complete only the part on each form for
which they meet or exceed the exemption level. A reporter is exempt from filing a
TIC CQ-1 if the sum of its Section A reportable positions for all geographic areas
(row 9999-6) is less than $50 million for that part. A reporter is exempt from filing a
TIC CQ-2 Part if its total reportable positions for all geographic areas (row 9999-6)
are less than $25 million for that part.
However, once the exemption level for a part is met or exceeded, the reporter
should continue to submit data for that Part for the remainder of the calendar year.

Exemption Levels for TIC Reporting

Form / Part

Description

Exemption
Level (Report if
greater than or
equal to the
following level)

CQ 1, Part 1

Reportable Financial Liabilities to
Unaffiliated Foreigners

$50 million

CQ 1, Part 2

Reportable Financial Claims on Unaffiliated
Foreigners

$50 million

CQ 2, Part 1

Reportable Commercial Liabilities to
Unaffiliated Foreigners

$25 million

CQ 2, Part 2

Reportable Commercial Claims on
Unaffiliated Foreigners

$25 million

D. Accounting Issues
1. General
All amounts should be reported gross, using settlement date accounting. Securities
should be reported in millions of U.S. dollars at the face value. All other instruments
should be reported in millions of U.S. dollars at the outstanding contractual amount
less any impairment or accrued interest (if applicable). Accrued interest receivables
and payables should be reported separately. Do not enter decimals or negative
values in any cell of a form. (Claims with negative balances should be reported as
liabilities; liabilities with negative balances should be reported as claims.)

General Instructions

5

Data reported on all TIC C forms should be the balances outstanding at the “close of
business” as of the last business day of each quarter. The time designated as the
close of business should be reasonable and applied consistently.
2. Foreign Currency Denominated Positions
For foreign currency-denominated positions reported on the TIC CQ-1 and TIC CQ-2,
report the U.S. dollar equivalent of the foreign currency amounts, converted by
using the closing spot exchange rate on the as-of date of the report.
3. Charge-offs
Respondents should deduct from claims any charge-offs or specific reserves where
there has been an identified loss. Charge-offs or specific reserves for reportable
claims taken partially or entirely during the reporting period should be totaled and
reported in the row titled “Assets Written Off This Quarter” (row 8200-9) only in the
quarter they are established. Claims should not be reduced by any general or
valuation reserves.

E. Reporting the Location of Foreign Counterparties
1. Countries and Other Areas
Positions with foreign residents should be reported for the country or geographical
area in which the direct counterparty resides. Do not report positions based on the
currency of denomination of the instrument, the country of the parent institution of
the counterparty (i.e., “nationality”), the country of issuance of the instrument, or
the country of a guarantor (i.e., ultimate risk). Please note: branches of U.S.
residents located outside the U.S. are foreign residents. U.S.-resident branches of
foreign banks are U.S. residents.
Examples


A respondent has a reportable liability denominated in yen to a British company
located in Italy. A Spanish bank guarantees the liability. The liability should be
reported for the location in which the direct counterparty resides (Italy), not the
location of the guarantor (Spain) or the nationality of the counterparty (United
Kingdom).



A respondent has a reportable claim on a Cayman Islands branch of a U.S. bank.
The claim should be reported for the location in which the direct counterparty
resides (Cayman Islands), not the location of that bank’s head office (United
States).

2. Determining Residency:
Counterparty residence is determined by the country of legal residence (e.g., the
country of incorporation, or, for a branch, of license). For example:


Partnerships, trusts, and funds are residents of the country in which they are
legally organized. (For example, pension funds of International and Regional
Organizations are residents of the country of residence of the pension fund.)

General Instructions

7



Banks, BHCs/FHCs, foreign banking organizations (FBOs), securities brokers and
dealers, corporations and subsidiaries of corporations are residents of the
country in which they are incorporated (not the country of the head office or
primary operations).



Bank branches are residents of the country in which they are licensed (not the
country of the head office).



Individuals are residents of the country in which they are domiciled.



Entities or individuals that file an IRS Form W-8, indicating that they are foreign
residents, are treated as such, unless they are residents of Puerto Rico or U.S.
territories such as Guam. Residents of Puerto Rico and U.S. territories are U.S.
residents. If an IRS form is not available, the mailing address can be used to
determine residency.



Exceptions:



International and Regional Organizations (see Appendix I) are residents of the
International and Regional Organizations areas, not the countries in which they
are located. Positions with the Red Cross and the Institute of International
Finance are reported as International (Note: These institutions are “other
foreigners”, not Foreign Official Institutions.)



Special International and Regional Organizations: Positions with the Bank for
International Settlements (BIS), the European Central Bank (ECB), the Eastern
Caribbean Central Bank (ECCB), the Bank of Central African States (BEAC), and
the Central Bank of West African States (BCEAO), should each be reported
opposite their name in the list of Foreign Economies and Organizations.



Positions with branches or agencies of Foreign Official Institutions should be
reported opposite the country that owns the Foreign Official Institution. (A list of
Foreign Official Institutions is located in Appendix C.)

F. Submission of Reports
1. Where to Report
TIC CQ-1 and CQ-2 reports should be filed with the Federal Reserve Bank of New
York.
2. Methods of Reporting
Data may be submitted through the Internet. The Reporting Central System is fast,
easy to use, and secure. Respondents can submit reports quickly and easily using
on-line data entry or via spreadsheet file transfer. Reporting Central provides a
confirmation of data receipt at the Federal Reserve Bank and checks the validity of
your submission. Reporting Central saves time and delivery costs, avoids possible
mail delays, and eliminates paper and fax transmissions. For more information on
Reporting Central, log on to
http://www.frbservices.org/centralbank/reportingcentral/index.html or call your
Federal Reserve Bank contact for TIC reporting.

General Instructions

8

Data may also be reported on computer printouts in the same format as the printed
forms. The Federal Reserve Bank of New York must approve proposed computer
printouts in advance of the first submission.
Paper reports should be mailed or faxed to:
International Reports Division
Federal Reserve Bank of New York
33 Liberty Street – 4th Floor
New York, New York 10045
Fax # (212) 720-8028
The TIC CQ reports are reported as of the last business day of March, June,
September and December. Both TIC CQ-1 and TIC CQ-2 reports should be
submitted no later than 30 calendar days following the report as-of date.
3. Signature Requirements
The cover page of the TIC C forms (which can be printed by the respondents from
the TIC website at http://www.ustreas.gov/tic/forms.html) must be signed by a duly
authorized officer of the institution. For electronic filers, the signature page should
be retained by the reporter.
4. Reporter ID Number
Each reporting entity has been assigned an "RSSD-ID" number by the Federal
Reserve System. To ensure proper processing, this ID must be entered in the space
provided on each page of the form. If you do not know your RSSD ID number,
please call the Federal Reserve Bank of New York contact person for TIC reporting.
5. Record Keeping Requirement
Reports must be retained for 3 years from the date of submission.
6. Review of Data and Requests of Revised Data
Federal Reserve Bank of New York staff review data submitted on the TIC C forms.
As a result of their review and editing procedures, Reserve Bank staff may ask
respondents to explain unusual changes or submit revisions, as necessary. Since
these data are extremely time-sensitive, respondents should respond as quickly as
possible to these requests.

General Instructions

9

II.

TIC Form CQ-1: Report of Financial Liabilities to, and
Financial Claims on, Unaffiliated Foreign Residents
A. What to Report
1. Reportable Liabilities and Claims
Report all (U.S. dollar- and foreign currency-denominated) financial liabilities to, and
financial claims on, unaffiliated foreign residents, except for those positions
described below in the subsection “Specific Exclusions”.
Financial liabilities and financial claims are all liabilities or assets that impose the
obligation to pay or provide the right to receive cash or another financial asset,
except those between a purchaser and a seller of goods or services in the normal
course of business. (Liabilities and claims between a purchaser and a seller of goods
or services in the normal course of business (other than those arising from leases)
are called “commercial” liabilities and claims and are reportable on the TIC CQ-2.)
a. Reportable financial liabilities include:


Loans (see glossary) of any maturity, unless the loan has a U.S. depository
institution or securities broker or dealer servicing the loan or serving as an
administrative agent.



Repurchase and similar financing agreements of any maturity unless held for
your account by a U.S.-resident depository institution or other U.S. custodian.



Overdrawn deposit account balances.



Short-term (an original maturity of one year or less) securities issued in
foreign markets.



Lease payments due (See below).



Brokerage balances, including margin deposit liabilities on foreign residents
(See glossary for further information).



Accrued interest payables



All reportable liabilities should be reported gross (e.g., no ASC Subtopic 21020 netting)

b. Reportable financial claims include:


Resale and similar financing agreements of any maturity unless held for your
account by a U.S-resident depository institution or other U.S. custodian.



Deposit balances (other than certificates of deposit) held at foreign-resident
banks of any maturity.



Negotiable and non-negotiable certificates of deposit issued by foreignresident banks of any maturity unless held for your account by a U.S.resident depository institution or other U.S. custodian.

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

Money markets instruments (e.g., commercial paper) with an original
maturity of one year or less that you hold directly or are held at a foreign
custodian, or directly with a foreign central depository.



Other short-term (an original maturity of one year or less) securities held for
investment or for trading purposes that you hold directly or are held in
custody at a foreign custodian or directly with a foreign central depository.



Lease payments receivable (See below).



Brokerage balances including margin deposit claims on foreign residents (See
glossary for further information).



Accrued interest receivables



All reportable claims should be reported gross (e.g., no ASC Subtopic 210-20
netting)

2. Unaffiliated foreign resident
A foreign resident affiliate is any foreign-resident entity for which the reporter owns
10 percent or more of its voting equity (or the equivalent); or any foreign-resident
“parent” company which owns 10 percent or more of the reporter’s voting equity (or
the equivalent); or any foreign-resident company which is a subsidiary (50 percent
or more owned) of a foreign parent company of the reporter. All other foreignresident entities are “unaffiliated foreign residents.”
3. Lease Payments
All cross-border positions arising from leases should be reported on the TIC CQ-1
form.


For a financing lease (See glossary), the outstanding value of the lease at the
end of the period covered by the report should be reported as a financial liability
(of the lessee to the foreign lessor), or financial claim (of the lessor on the
foreign lessee).



For an operating lease, only accrued payments due to foreign lessors and
accrued payments due from foreign lessees should be reported as financial
liabilities and claims, respectively.

4. Specific Exclusions


Long-term securities (no contractual maturity or an original maturity of over one
year), including equities and any long-term notes, bonds, and debentures.
(Purchases and sales transactions with foreigners of long-term securities should
be reported on the TIC S form.)



Negotiable short-term securities (an original maturity of one year or less) issued
by the reporter in the U.S. or held by a U.S.-resident custodian. (Amounts



acquired by foreign holders who purchase these securities will be reported by the
U.S. custodian on their TIC B forms.)



Contingent liabilities or credit commitments (e.g., unused loan commitments).

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

Derivatives, including futures, forward exchange contracts, options, swaps, and
warrants.



Spot foreign exchange contracts.



Securities borrowing or lending agreements in which one security is lent in return
for another. (Repurchase-type agreements are reportable only if the reporter
has provided or received cash in return for a security.)



Commercial liabilities and claims. (Commercial liabilities and claims are those
which arise between sellers and customers from the purchase and sale of goods
(including new and used capital goods) and services in the normal course of
business). These should be reported on the TIC CQ-2 form. (See Section III.A,
“What to Report,” for further information.)



Deposits and brokerage balances held at a U.S. entity and “swept” by the U.S.
entity into a foreign-resident entity. (See glossary – “Sweep Agreements.”)



Loans a foreign resident made to you that are serviced by a U.S. resident.

B. Column Instructions
1. Short-term Negotiable Securities (Column 1)
Report the total of all short-term negotiable securities (original maturity of one year
or less; see glossary for the definition of securities) issued directly in a foreign
market and for which a U.S.-resident depository institution or U.S.-resident custodian
is not used. (Short-term non-negotiable securities held by foreign residents should
be reported in column 2.)
2. Other Liabilities to Foreigners (Column 2)
Report all reportable financial liabilities as defined in Section II.A above, other than
short-term negotiable securities reported in column 1.
3. Non-negotiable Foreign Deposits (Column 3)
Report all deposits held at foreign banks, including demand, time, and savings
deposits (including Eurodollar deposits and non-negotiable CDs, but excluding
negotiable CDs). Also include any brokerage balances placed with foreign residents.
Do not include funds “swept” into a foreign bank or a securities brokerage account
from an account at a U.S. entity.
4. Negotiable CDs & All Short-term Negotiable Securities (Column 4)
Report all negotiable certificates of deposit of any maturity and all negotiable
securities (including money market instruments) with an original maturity of one
year or less issued by foreign residents. Do not include negotiable securities or
negotiable certificates of deposit held for your account by a U.S.-resident custodian.
5. Other Claims on Foreigners (Column 5)
Report all reportable claims (as defined in Section II.A above) other than nonnegotiable foreign deposits reported in column 3 and negotiable CDs and negotiable
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short-term securities reported in column 4. Include loans to foreign residents
(including resale agreements) and short-term non-negotiable securities of foreign
residents, unless held for your account by a U.S.-resident custodian

C. ”Of Which” Items Instructions
In Section B, reporters should report the indicated information for all positions reported
in Section A.
1. Type of Instrument
Not all instruments will be reported separately in the memorandum rows. Therefore,
for each column the entries in the instrument rows will sum to no more, and
probably less, than the values reported in Section A
a. Borrowings/Loans Memorandum Row (8061-4)
Report in columns 2 and 5 loans (see glossary for definition) with foreign
residents excluding repurchase agreements, resale agreements, and similar
financing agreements.
b. Negotiable CDs Memorandum Row (8110-8)
Report in column 4 all negotiable certificates of deposit issued by foreign
residents.
c. Repurchase/Resale Agreements Memorandum Row (8400-7)


Report in column 2 funds borrowed from foreign residents under repurchase
agreements and similar financing arrangements. Report in column 5 funds
loaned to foreign residents under resale agreements and similar financing
arrangements. These amounts should be reported gross (i.e., e.g., no ASC
Subtopic 210-20 netting).

2. Assets Written Off This Quarter
Charge-offs or specific reserves for reportable claims taken partially or entirely
during the reporting period should be totaled and reported in the row titled “Assets
Written Off This Quarter” (row 8200-9) only in the quarter they are established. (See
General Instructions Section I.E for detailed information on charge-offs.)
3. Foreign Currency Memorandum Rows
For each column, report the amounts of positions (converted into U.S. dollars using
the closing spot exchange rate on the as-of date of the report) that are denominated
in Canadian Dollars (8500-1), Euros (8500-2), British Pounds Sterling (8500-3),
Japanese Yen (8500-4), Swiss Francs (8500-5) and All Other Foreign Currencies
(8500-6).

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4. Remaining Maturities - Claims
This part is required to be completed only by reporters with total reportable claims
of $1 billion or more.
In columns 3, 4 and 5, report claims by remaining maturity. Remaining maturity is
the amount of time remaining from the report date until the earlier of the final
contractual maturity date or the call date, if the reporter can freely call the claims at
an earlier date. (All foreign currency-denominated claims should be converted to
U.S. dollars using the spot exchange rate on the as-of-date.)
a. Demand Deposits, Arrears, Resale agreements under continuing
contract, and Items with no fixed maturity (8139-6)
In column 3, report any claims on foreign residents (both U.S. dollar- and foreign
currency-denominated) that are payable on demand.
In columns 4 and 5, report the amount of claims on foreign residents (both U.S.
dollar- and foreign currency-denominated) that are past due (Arrears). A claim is
past due when principal or interest has not been received for 30 days or more.
In columns 4 and 5 report claims on foreign residents (both U.S. dollar- and
foreign currency-denominated) that have no stated maturity or that rollover
under continuing contract excluding demand deposits and brokerage balances.
b. Maturing in 1 Year or Less (8143-4)
In each column, report claims on foreign residents (both U.S. dollar- and foreign
currency- denominated) with a remaining maturity of 1 year or less.
c. Maturing in Over 1 Year (8147-7)
In each column, report claims on foreign residents (both U.S. dollar- and foreign
currency- denominated) with a remaining maturity of over 1 year. (“Year” may
be defined based upon 360, 365 days, or 1 calendar year based upon the
reporter’s business practices.)

5. Remaining Maturities- Liabilities
This part is required to be completed only by reporters with total reportable
liabilities of $1 billion or more.
In columns 1 and 2, report liabilities by remaining maturity. Remaining maturity
is the amount of time remaining from the report date until the earlier of the final
contractual maturity date or the call date, if the claimant can freely call the
liabilities at an earlier date. (All foreign currency-denominated liabilities should be
converted to U.S. dollars using the spot exchange rate on the as-of date.)
a. Demand Deposits (8010-1)
In each column, report any interest-bearing deposits to foreign residents (both
U.S. dollar- and foreign currency-denominated) that are payable on demand.
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b. Arrears (8020-9)
In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) that are past due. A liability is past due when
principal or interest due is unpaid for 30 days or more.
c. Non-Interest Paying Items without a Fixed Maturity Including
Repos Under Continuing Contract (8030-6)
In each column, report non-interest-bearing liabilities to foreign residents (both
U.S. dollar- and foreign currency-denominated) that have no stated maturity or
that rollover under continuing contract. (Items originally sold at a discount are
considered interest bearing, even if they do not have a stated interest payment.
Therefore, no liabilities sold at a discount should be reported in this row.)
d. Other Items without a Fixed Maturity Including Repos Under A
Continuing Contract (8040-3)
In each column, report interest-bearing liabilities to foreign residents (both U.S.
dollar- and foreign currency-denominated) that have no stated maturity or are
under continuing contract. (Items originally sold at a discount are considered
interest bearing, even if they do not have a stated interest payment.)
e.

Other, 90 Days or Less (8051-9)

In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) with a remaining maturity of no more than 90
days.
f. Over 90 Days to 180 Days (8052-7)
In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) with a remaining maturity of over 90 days but no
more than 180 days.
g. Over 180 Days to 270 Days (8053-5)
In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) with a remaining maturity of over 180 days but
no more than 270 days.
h. Over 270 Days to 1 Year (8054-3)
In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) with a remaining maturity of over 270 days but
no more than 1 year. (“Year” may be defined based upon 360 days, 365 days or
1 calendar year, based upon the reporter’s business practices.)
i.

Over 1 Year to 2 Years (8055-1)

In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) with a remaining maturity of over 1 year but no
more than 2 years. (“Year” may be defined based upon 360 days, 365 days or 1
calendar year, based upon the reporter’s business practices.)

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j. Over 2 Years (8057-8)
In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency denominated) with a remaining maturity of over 2 years.
(“Year” may be defined based upon 360 days, 365 days or 1 calendar year,
based upon the reporter’s business practices.)

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III. TIC Form CQ-2: Report of Commercial Liabilities to, and
Commercial Claims on, Unaffiliated Foreign Residents
A. What to Report
1. Reportable Liabilities and Claims
Report all (U.S. dollar- and foreign currency-denominated) commercial liabilities to,
and claims on, unaffiliated foreign residents. Commercial liabilities and claims are
those which arise from the purchase and sale of goods (including new and used
capital goods) and services. Reportable commercial liabilities and claims include:


Accounts payable and receivable arising from the import or export of goods and
services, including new and used goods.



Advance payments received for future deliveries of goods and services.



Claims on inventory held outside the United States.



Credits due to or from a foreign resident resulting from returned goods or from
cancelled service contracts.



Accrued liabilities and claims for royalties or similar fees.



Fees due or payable, such as docking fees and airplane landing fees.

2. Unaffiliated foreign resident
A foreign resident affiliate is any foreign-resident entity for which the reporter owns
10 percent or more of its voting equity (or the equivalent); or any foreign-resident
“parent” company which owns 10 percent or more of the reporter’s voting equity (or
the equivalent); or any foreign-resident company which is a subsidiary (50 percent
or more owned) of a foreign parent company of the reporter. All other foreignresident entities are “unaffiliated foreign residents.”
3. Specific Exclusions


Contingent liabilities or claims.



Liabilities and claims held for collection by U.S. banks or brokers/dealers, such as
accounts, notes, and drafts payable.



Spot foreign exchange contracts.



Derivatives, including futures, forward exchange contracts, options, swaps, and
warrants.



Financial liabilities and claims. (See Section II.A., “What to Report,” on the TIC
CQ-1 for further information.)



Claims on foreign residents arising from advices issued by banks in the United
States of their intent to make payment under deferred payment letters of credit
issued by foreign banks in favor of U.S. exporters.



Financial and operating leases. (See Section II.A, “What to Report,” on the TIC
CQ-1 for further information.)

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17

B. Column Instructions
1. Trade Payables (Column 1)
Report gross liabilities due to unaffiliated foreign residents arising from:


Deferred payment for goods imported into the United States, whether in transit
or located in foreign countries, and for services.



Acceptances made directly for your account by unaffiliated foreign residents.



The return of goods or cancellation of services.



Overpayments for goods or services.



Accrued liabilities for royalties and similar fees.

2. Advance Receipts and Other Liabilities (Column 2)
Report gross liabilities to unaffiliated foreign residents arising from:


All advance payments received from unaffiliated foreign residents for future
deliveries of goods or future rendering of services (even though the funds have
been used in the production of goods not yet delivered), whether payable in cash
or through barter agreements. (However, exclude all forward settling derivative
contracts).



All other commercial liabilities (as defined in Section III.A above).

3. Trade Receivables (Column 3)
Report gross claims on unaffiliated foreign residents arising from:


Deferred receipts from the sale of goods exported from the United States or from
the sale of goods acquired abroad, and from the sale of services to foreign
residents.



The return of goods or cancellation of service contracts.



Overpayments for goods or services.



Accrued claims for royalties and similar fees.

4. Advance Payments and Other Claims (Column 4)
Report gross claims on unaffiliated foreign residents arising from:


Advance payments made to unaffiliated foreign residents for future delivery of
goods or for the future rendering of services or from rights to receive
commodities or services from unaffiliated foreign residents under barter
agreements (excluding all forward settling derivative contracts).



Goods that the reporter owns located in foreign countries (if the goods are in
transit report opposite the country of ultimate destination).



All other commercial claims (as defined in Section III.A above).

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C. “Of Which” Items Instructions
1. Assets Written Off This Quarter
Charge-offs or specific reserves for reportable claims taken partially or entirely
during the reporting period should be reported in the row titled “Assets Written Off
This Quarter” (row 8200-9) only in the quarter they are established. (See General
Instructions Section I.E for detailed information on charge-offs.)
2. Foreign Currency Memorandum Rows
For each column, report the amounts of positions (converted into U.S. dollars using
the closing spot exchange rate on the as-of date of the report) reported in the Grand
Total Row (9999-6) that are denominated in Canadian Dollars (8500-1), Euros
(8500-2), British Pounds Sterling (8500-3), Japanese Yen (8500-4), Swiss Francs
(8500-5) and All Other Foreign Currencies (8500-6).
3. Remaining Maturities - Claims
This section is required to be completed only by reporters with total reportable
claims of $200 million or more.
Report claims included in the Grand Total Row (9999-6) by remaining maturity.
Remaining maturity is the amount of time remaining from the report date until the
final contractual maturity date. (All foreign currency-denominated liabilities and
claims should be converted to U.S. dollars using the closing spot exchange rate on
the as-of-date). Advance receipts and advance payments should be considered as
maturing in one year or less even if the product or work which the receipts or
payments pertain to will not be completed for more than one year.
a. Items with no fixed maturity (8139-6)
In columns 3 and 4 report claims on foreign residents (both U.S. dollar- and
foreign currency-denominated) that are past due, due immediately, have no
stated maturity or that rollover under continuing contract.
b. Maturing in 1 Year or Less (8143-4)
In columns 3 and 4, report claims on foreign residents (both U.S. dollar- and
foreign currency- denominated) with a remaining maturity of 1 year or less.
c. Maturing in Over 1 Year (8147-7)
In columns 3 and 4, report claims on foreign residents (both U.S. dollar- and
foreign currency- denominated) with a remaining maturity of over 1 year.
(“Year” may be defined based upon 360, 365 days, or 1 calendar year based
upon the reporter’s business practices.)
4. Remaining Maturities - Liabilities
This section is required to be completed only by reporters with total reportable
liabilities of $200 million or more.

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Report liabilities included in the Grand Total Row (9999-6) by remaining maturity.
Remaining maturity is the amount of time remaining from the report date until the
final contractual maturity date. (All foreign currency-denominated liabilities and
claims should be converted to U.S. dollars using the closing spot exchange rate on
the as-of date). Advance receipts and advance payments should be considered as
maturing in one year or less even if the product or work which the receipts or
payments pertain to will not be completed for more than one year.
a. Arrears (8020-9)
In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) that are past due. A liability is past due when
principal or interest due is unpaid for 30 days or more.
b. Non-Interest Paying Items without a Fixed Maturity (8030-6)
In each column, report non-interest-bearing liabilities to foreign residents (both
U.S. dollar- and foreign currency-denominated) that have no stated maturity or
that rollover under continuing contract. (Items originally sold at a discount are
considered interest bearing, even if they do not have a stated interest payment.
Therefore, no liabilities sold at a discount should be reported in this row.)
c. Other Items without a Fixed Maturity (8040-3)
In each column, report interest-bearing liabilities to foreign residents (both U.S.
dollar- and foreign currency-denominated) that have no stated maturity or are
under continuing contract. (Items originally sold at a discount are considered
interest bearing, even if they do not have a stated interest payment.)
d. Other, 90 Days or less (8051-9)
In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) with a remaining maturity no more than 90 days.
e. Over 90 Days to 180 Days (8052-7)
In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) with a remaining maturity of over 90 days but no
more than 180 days.
f. Over 180 Days to 270 Days (8053-5)
In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) with a remaining maturity of over 180 days but
no more than 270 days.
g. Over 270 Days to 1 Year (8054-3)
In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) with a remaining maturity of over 270 days but
no more than 1 year. (“Year” may be defined based upon 360 days, 365 days or
1 calendar year, based upon the reporter’s business practices.)
h. Over 1 Year to 2 Years (8055-1)
In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) with a remaining maturity of over 1 year but no
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20

more than 2 years. (“Year” may be defined based upon 360 days, 365 days or 1
calendar year, based upon the reporter’s business practices.)
i.

Over 2 Years (8057-8)

In each column, report liabilities to foreign residents (both U.S. dollar- and
foreign currency-denominated) with a remaining maturity of over 2 years.
(“Year” may be defined based upon 360 days, 365 days or 1 calendar year,
based upon the reporter’s business practices.)

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21

IV.

Glossary

Administrative Agent
An institution responsible for administering a loan, acting on behalf of all lenders, and acting as
a conduit for all payments in a loan syndication. If a foreign resident is acting as an
administrative agent, the borrower should report these loan liabilities to foreign residents on the
TIC CQ-1 or TIC BL-1 form as appropriate.
American Depositary Receipt (ADR)
Negotiable certificates, typically issued by a U.S.-resident company for securities (usually shares
of stock) issued by a foreign corporation. The securities are backed by the foreign securities,
which are held in a custodial account, either at the issuing bank or by an agent. The ADRs
themselves may be held in U.S. or foreign banks. ADRs are considered foreign securities, and
purchases and sales of ADRs by U.S. residents are reportable on the TIC S form.
Brady Bonds
Collateralized dollar-denominated bonds issued by a foreign government or central bank in
exchange for loans under the Brady Plan. Brady Bonds are considered long-term debt securities
and are excluded from the TIC C forms. These securities should be reported on the TIC S form.
Brokerage Balances
Cash balances: 1) held by U.S. residents in brokerage and margin accounts with foreign
residents; and 2) held by foreign residents in brokerage and margin accounts at U.S.-resident
entities. Brokerage balances should be reported gross and include funds that may be freely
withdrawn or held to support positions in futures, securities or other financial instruments. The
following are examples that generate cash balances in brokerage balances:


Cash proceeds from selling securities short.



Cash margin or collateral placed to support open positions in futures (initial,
maintenance and margin) or options on exchanges, over-the-counter derivatives, and
excess cash margin or collateral retained from previous settlements of positions.



Cash margin lent to foreign residents for their purchases of securities.



Cash interest and dividends on securities that have been pledged as collateral with
foreign residents.

Brokerage balances held at foreign entities should be reported as financial liabilities on the TIC
CQ-1 form. Liabilities to foreign residents from brokerage balances should be reported as
financial claims on the TIC CQ-1 form.
Commercial Paper
A promissory note either unsecured or backed by assets such as loans or mortgages. They are
usually sold at a discount and customarily have a fixed maturity of 270 days or less. Holdings
of commercial paper should be reported on the TIC C forms at face value, as a short-term
security, unless held for your account by a U.S.-resident depository institution or other U.S.resident custodian.
Custodian
A bank or other organization that manages or administers the custody or safekeeping of stock
certificates, debt securities, or other assets for institutional and private investors.

Glossary

22

Deposits
The unpaid balance of money or its equivalent received or held by a bank in the usual course of
business and for which it has given or is obligated to give credit, either conditionally or
unconditionally, including balances in a checking, savings, or time account, or which are
evidenced by its certificate of indebtedness, or other similar name, or a check or draft drawn
against a deposit account and certified by the bank, or a letter of credit or a traveler's check on
which the bank is primarily liable. Deposit balances (other than certificates of deposit) held by
U.S. residents at foreign banks should be reported on the TIC CQ-1 form. Negotiable and nonnegotiable CDs issued by foreign resident banks, regardless of maturity, should be reported on
the TIC CQ-1 form unless held for your account by a U.S.-resident depository institution or
other U.S.-resident custodian. (Also see glossary entry for Negotiable Certificates of Deposits.)
Depositary Receipts
See American Depositary Receipts (“ADR”). Related types of depository receipts, such as Global
Depositary Receipts, are reported in the same manner as ADRs
Derivative Contracts
A derivative contract is a financial instrument or other contract with all three of the following
characteristics:


It has (a) one or more underlyings; (b) one or more notional amounts; and (c) payment
provisions. These terms determine the amount of the settlement or settlements, and, in
some cases, whether or not a settlement is required.



It requires no initial net investment, or an initial net investment that is much smaller
than would be required for other types of contracts that would be expected to have a
similar response to changes in market factors.



Its terms require or permit net settlement, it can readily be settled net by a means
outside the contract, or it provides for delivery of an asset that puts the recipient in a
position not substantially different from net settlement.

Derivative contracts are excluded from the TIC C forms. Embedded derivatives that are not
bifurcated under FAS 133 should not be separated from the host contract and should be
reported on the TIC C forms. However, if an embedded derivative is bifurcated, the derivative
should be excluded from the TIC C forms.
Development Banks
Entities owned by national governments other than the United States and are established to
promote economic development of sectors of the economy, such as trade, housing, agriculture,
finance and industry.
Direct Investment
Investment in which a resident of one country obtains a degree of influence over the
management of a business enterprise in another country. The criterion used to define direct
investment is ownership of at least 10 percent of the voting securities of an incorporated
business enterprise or the equivalent interest in an unincorporated business enterprise. U.S.
direct investment abroad represents the ownership or control, directly or indirectly, by one U.S.
resident (U.S. parent) of at least 10 percent of a foreign business enterprise, which is called a
foreign affiliate. Foreign direct investment in the United States represents the ownership or
control, directly or indirectly, by one foreign resident (foreign parent) of at least 10 percent of a
U.S. business enterprise, which is called a U.S. affiliate. For guidance on how to apply the direct
Glossary

23

investment criterion in the case of a limited partnership, see “Limited partnerships and direct
investment” below.
Direct investment transactions and positions include the equity that gives rise to control or
influence and intercompany lending, i.e., debt between affiliated enterprises. However, debt
between selected affiliated financial intermediaries is not classified as direct investment because
it is not considered to be so strongly connected to the direct investment relationship.
The financial intermediaries covered by this case are:


deposit-taking corporations;



securities brokers and dealers;



financial and bank holding companies;



investment funds; and



other financial intermediaries.

However, insurance companies and pensions funds are financial intermediaries that are not
covered by this case and their debt positions with their affiliates are part of direct investment.
Since insurance companies and pension funds are not covered by this case, insurance
companies and pension funds should only report debt positions with unaffiliated foreign firms.
Therefore, all direct investment transactions and positions should be excluded from the TIC
system. These transactions and positions should instead be reported to the Bureau of Economic
Analysis (BEA). U.S. residents in direct investment relationships are required to file reports with
BEA unless exempt.
Financial Intermediary
A financial intermediary is an organization or part thereof (e.g., subsidiary or other operating
unit) whose major activity is to raise or otherwise obtain funds to provide to another entity.
(An insurance company is not a financial intermediary). An “other financial intermediary” is a
financial intermediary other than a depository institution, a securities broker or dealer, or a
BHC/FHC.
Financing Lease
A lease is an agreement that transfers the right to use an asset for a specified period of time.
The TIC C forms follow the standards set forth in FASB Statement No. 13, “Accounting for
Leases” to distinguish a financing lease from an operating lease. In particular, if any one of the
following criteria is met, a lease must be accounted for as a financing (or capital) lease:


Ownership of the property is transferred to the lessee at the end of the lease term, or



The lease contains a bargain purchase option, or



The lease term represents at least 75 percent of the estimated economic life of the
leased property, or



The present value of the minimum lease payments at the beginning of the lease term is
90 percent or more of the fair value of the leased property to the lessor at the inception
of the lease less any related investment tax credit retained by and expected to be
realized by the lessor.

If none of the above criteria is met, the lease should be accounted for as an operating lease.
Glossary

24

All positions arising from cross-border leases should be reported on the TIC CQ-1 form as
described in section II.A.
Foreign Resident
Any individual, corporation, or other organization located outside the United States. A
corporation incorporated outside the United States is a foreign resident even if it has no
physical presence outside the United States. Foreigners/Foreign Residents include:


Foreign governments and any subdivision, agency or instrumentality thereof, including
all foreign official nonbanking institutions, even if located in the United States (e.g., an
embassy, consulate, or other diplomatic establishment of a foreign country). (However,
all U.S. subsidiaries of foreign corporations are U.S. residents.)



Entities that have filed an IRS Form W-8, indicating that the individual or entity is a
nonresident alien or foreign entity not subject to certain United States information return
reporting or to backup withholding rules.



Any corporation or other organization located outside the United States, including the
branches, subsidiaries, and other affiliates of U.S. entities located abroad.



Individuals, including citizens of the United States, residing outside the United States.

EXCEPTION: Official international or regional organizations or subordinate or affiliated agencies
thereof, created by treaty or convention between sovereign states, even if located in the United
States, including the International Bank for Reconstruction and Development (IBRD or World
Bank), the International Monetary Fund (IMF), and the United Nations (UN), are also considered
foreign residents.
Foreign-Resident Affiliate
Any foreign-resident entity for which the reporter owns, directly or indirectly, 10 percent or
more of its voting equity (or the equivalent); or any foreign-resident “parent” company which
owns 10 percent or more of the reporter’s voting equity (or the equivalent); or any foreignresident company which is a subsidiary (50 percent or more owned) of a foreign parent
company of the reporter.
Foreign-Resident Custodian
A custodian located outside the United States, including a foreign affiliate of a U.S. custodian.
Reporters should determine the location of a custodian according to the country where the
custodian is incorporated, or otherwise legally established, not according to the country of
custodian’s parent firm, and not according to the location of the custodian’s operations center.
Foreign Subcustodian
A foreign institution that holds in safekeeping foreign securities for a U.S. resident custodian.
Loans
A loan is generally an extension of credit resulting from direct negotiations between a lender
and a borrower. The loan may have originated through direct negotiations with the borrower or
it may have been originated by another lender that directly negotiated with a borrower. Loans
may take the form of promissory notes, acknowledgements of advance, due bills, invoices,
overdrafts, and similar written or oral obligations.
Loans include:


Factored accounts receivable.

Glossary

25



Participations (acquired or held) in a single loan or pool of loans or receivables (see
discussion of Participations).



Drawn syndicated loans.



Repurchase/resale agreements, where securities have been transferred in return for
cash balances.



Loans made to finance trade other than those between purchaser and seller of the
traded good or service. (See Section II.A, “What to Report,” for more information.)

Loans exclude those instruments that meet the definition of a security (See glossary entry for
Securities). Loans are reportable on the TIC C forms, regardless of maturity.
Loan Servicing Arrangements, Loan Servicer
An arrangement whereby one party (the loan servicer) agrees to collect payments from
borrowers on behalf of the holder(s) of the loan. The loan servicer may be the originator of the
loans, or may be another institution. If a foreign-resident is acting as a servicer or
administrative agent, the borrower should report these loan liabilities to foreign residents on the
TIC BL-1 or TIC CQ-1 form as appropriate.
Negotiable Certificates of Deposit
Certificates of deposit evidenced by a negotiable (transferable) instrument or deposit in book
entry form evidenced by a receipt or similar acknowledgement issued by the bank, that
provides on its face that the amount of such deposit is payable to bearer or any specified
person (e.g., deposit notes, bank notes). U.S. held foreign negotiable certificates of deposit
should be reported on the TIC CQ-1 form and in Memorandum Row 8110-8 unless held for your
account by a U.S.-resident depository institution or other U.S-resident custodian.
Overdraft
An overdraft exists when a depository institution honors a check or draft drawn against a
deposit account in which insufficient funds are held. Overdrafts should be reported gross and
not netted against good balances. Overdrawn accounts at foreign banks are reported on the
TIC CQ-1 form as financial liabilities.
Participations
A loan agreement whereby one bank contracts with other banks to participate in making a loan
to a borrower. Each participant should report the amount of its own share in the participated
loan. If a foreign-resident is acting as a servicer or administrative agent, the borrower should
report these loan liabilities to foreign residents on the TIC BL-1 or TIC CQ-1 form as
appropriate.
Repurchase/Resale Agreements
A repurchase agreement is a transaction involving the sale of financial assets by one party to
another, subject to an agreement by the seller to repurchase the assets at a specified date or in
specified circumstances. A resale agreement (also known as a reverse repurchase agreement)
is a transaction involving the purchase of financial assets by one party from another, subject to
an agreement by the purchaser to resell the assets at a specified date or in specified
circumstances.
Except as otherwise noted below under the discussion of FAS Statement No. 140, all repurchase
and resale agreement transactions with foreign residents in which cash balances are provided
as part of the transaction, are to be reported as borrowings from, or loans to, foreign residents
Glossary

26

collateralized by the underlying assets. In each case the amount of cash received/provided
should be reported. In particular:


Funds received from foreign residents from repurchase agreements are reported as
liabilities on the TIC CQ-1 form, by country, and in memorandum row 8400-7. (The
transfer of the securities should be excluded from purchases or sales on the TIC S
form.)



Funds lent to foreign residents through resale agreements should be reported as claims
on the TIC CQ-1 form, by country, and in memorandum row 8400-7. (The receipt of the
securities as collateral should be excluded from purchases or sales on the TIC S form.)

Please note that all repurchase agreements should be reported gross (i.e., FIN 41 should not be
applied).
If a repurchase agreement does not qualify as a secured borrowing under FAS Statement No.
140, the selling institution should account for the transaction as a sale of financial assets and a
forward commitment to repurchase the security. Similarly, if a resale agreement does not
qualify as a borrowing under FAS Statement No. 140, the purchasing institution should account
for the transaction as a purchase of financial assets and a commitment to sell. In these cases,
the transfer of the securities should be reported on the TIC S form and the exchange of cash
should be excluded from the TIC C forms. Securities lending agreements in which one security
is loaned in return for another are not reportable on the TIC forms.
Securities
Securities are any bill, note, bond, debenture, equity or similar instrument that is commonly
referred to as a security, excluding certificates of deposit. (In cases where it is not clear if a
specific instrument is a security, contact the Federal Reserve Bank of New York.) Securities may
be negotiable (tradable in secondary markets) or non-negotiable (not tradable in secondary
markets).
Securities are classified as short-term (original maturity of one year or less) or long-term
(original maturity of more than one year). Long-term securities include securities with no
stated maturity, including equity securities such as common stock, preferred stock, certificate of
interests, partnership interests, and mutual fund shares. Long-term securities are excluded
from the TIC C forms and should be reported only on the TIC S form.
Short-term securities, which include money market instruments such as Treasury bills, shortterm agency securities, commercial and finance paper, bankers’ acceptances, and short-term
notes, should be reported on the TIC C forms, following the instructions in Sections II.A and
II.B of this booklet for the TIC CQ-1 form.
A summary of these reporting requirements follows:

TIC C Reporting of Short-Term Securities
Situation

Where to
Report

Claims

A TIC C reporter holds a foreign security (including money market
instruments) directly or is held in custody at a foreign custodian or
directly with a foreign central depository.

CQ-1

Liabilities

A TIC C reporter issues a security (including all bearer instruments) in
a foreign market (unless the security is known to be held by a U.S.

CQ-1

Glossary

27

custodian other than the reporter)
Securities Brokers and Dealers
Generally, securities brokers are entities that regularly engage in effecting securities
transactions for others. A securities dealer is an entity that engages in buying securities for its
own account. However, the definition of securities dealers excludes depository institutions and
other institutions acting in a fiduciary capacity. (See the Securities Exchange Act for a list of the
activities that constitutes a dealer.)
Settlement Date Accounting
Under settlement date accounting, assets purchased are not recorded until settlement date.
Settlement date accounting should be used on the TIC C forms.
Subsidiary
A company in which another company (parent) owns 50 percent or more of the voting
securities, or an equivalent interest.
Sweep Agreements
Sweep agreements are contractual agreements between institutions and their customers that
allow funds to be automatically transferred to another account at the same institution, another
institution, or into a financial instrument. Deposits and brokerage balances held at a U.S.
depository institution, broker, or dealer and “swept” by the U.S. entity into a foreign-resident
entity are excluded from the TIC C forms.
United States
The fifty (50) States of the United States, the District of Columbia, the Commonwealth of Puerto
Rico, the Commonwealth of the Northern Mariana Islands, and the following: American Samoa,
Baker Island, Guam, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway
Islands, Navassa Island, Palmyra Atoll, U.S. Virgin Islands, and Wake Island.
U.S. Military Facilities
Offices of United States banks located in foreign countries that provide financial services to
persons in the United States Armed Forces stationed abroad. For purposes of these reports,
United States military facilities are classified as banking offices located in the United States.
U.S Resident
Any individual, corporation, or other organization located in the United States, including
branches, subsidiaries, and affiliates of foreign entities located in the United States.
Corporations incorporated in the United States are considered to be U.S. residents even if they
have no physical presence in the United States.

Glossary

28

V.

APPENDIX A: Reporting Requirement Flowcharts

Situation 1 - A U.S. resident has a liability to a foreign resident in the form of a short-term
negotiable or non-negotiable security


Flowchart 1A: A U.S. resident custodian is used



Flowchart 1B: No U.S. resident custodian is used

Situation 2 - A U.S. resident has a claim on a foreign resident in the form of a short-term
security or a certificate of deposit (of any maturity)


Flowchart 2A: A U.S. resident custodian is used



Flowchart 2B: No U.S. resident custodian is used

Situation 3 - Loans of U.S. residents (including drawn syndicated loans)


Flowchart 3A: A U.S. resident is servicing the loan or acting as an administrative agent



Flowchart 3B: No U.S. resident is servicing the loan or acting as an administrative
agent

29

Situation 1: A U.S. resident has a liability to a foreign resident in the form of
a short-term security
Flowchart 1A: A U.S.-resident custodian is used
Foreign person/investor

U.S. resident issuer
does not report the
security or CD on the
TIC forms.

U.S.-resident custodian

Report on the TIC BL-2 (if
U.S. dollar-denominated)
or on the TIC BQ-2, Part 2
(if foreign currencydenominated).

Flowchart 1B: No U.S.-resident custodian is used for a negotiable
instrument
U.S. TIC C issuer

Foreign-resident person
or custodian

Report on the TIC CQ-1
form.

Note: All short-term negotiable or non-negotiable securities issued
directly in a foreign market should be reported in this manner.

30

Situation 2: A U.S. resident has a claim on a foreign resident in the form of a
short-term security or a certificate of deposit (of any maturity)
Flowchart 2A: A U.S.-resident custodian is used
U.S. person/investor

U.S. resident issuer
does not report the
security or CD on the
TIC forms.

U.S.-resident custodian

Report on the TIC BL-2 (if
U.S. dollar-denominated)
or on the TIC BQ-2, Part 2
(if foreign currencydenominated).

Flowchart 2B: No U.S.-resident custodian is used for a negotiable
instrument
U.S. person / investor

Foreign custodian,
debtor, or issuer

Report on the TIC CQ-1
form (or on the TIC BQ-1
or TIC BQ-2 form if not a
TIC C reporter.

31

Situation 3 -Loans of U.S. residents (including drawn syndicated loans)
Flowchart 3A: A U.S. resident is servicing the loan or acting as an
administrative agent
U.S. resident borrower

Loan

Foreign lender

U.S. administrative agent

Does not
report on TIC
C forms

U.S. administrative agent
reports on the BL-2 (if U.S.
dollar currency-denominated)
or the BQ-2, Part 2 (if foreign
currency-denominated).

Flowchart 3B: No U.S. resident is servicing the loan or acting as and
administrative agent
U.S. resident borrower

Loan

Foreign lender

Since no U.S. administrative
agent is used, the U.S.
borrower reports the liability
to foreign residents on the
TIC CQ-1 form (or TIC BL-1
form if not a TIC C filer).

32

VI.

APPENDIX B: Geographical Classification

CODES FOR COUNTRIES, AREAS & INTERNATIONAL/REGIONAL
ORGANIZATIONS TO BE USED FOR PURPOSES OF REPORTING ON TREASURY
INTERNATIONAL CAPITAL FORMS
The most recent version of this appendix is now a separate document.
A copy is on the TIC website, next to these instructions, at:
http://www.treas.gov/tic/forms-c.shtml

33

VII. APPENDIX C: List of Foreign Official Institutions
CERTAIN FOREIGN INSTITUTIONS CLASSIFIED AS OFFICIAL, A LIST TO BE
USED ONLY FOR PURPOSES OF REPORTING ON TREASURY INTERNATIONAL
CAPITAL (TIC) FORMS
The most recent version of this appendix is now a separate document.
A copy is on the TIC website, next to these instructions, at:
http://www.treas.gov/tic/forms-c.shtml .

34