Fr 2900

Board of Governors of the Federal Reserve System

Instructions for the Preparation of

Report of Deposits and Vault Cash
Reporting Form FR 2900
Effective June 2023
For use by U.S. branches and agencies of foreign (non-U.S.) banks. There are separate instructions for commercial
banks, Edge Act and agreement corporations, industrial banks, building or savings and loan associations, mutual
savings banks, cooperative banks, homestead associations, and savings banks, and for credit unions.

Contents

General Instructions

......................................................................................................................... GEN-1
B. Where to Report ............................................................................................................................ GEN-1
C. How to Report .............................................................................................................................. GEN-2
D. Requests for Revised Data ............................................................................................................. GEN-4
E. Liabilities That Are Reservable under Regulation D ......................................................................... GEN-4
F. Deposits as Defined under Regulation D ......................................................................................... GEN-4
G. Treatment of Trust Funds .............................................................................................................. GEN-7
H. Treatment of Escrow Funds ........................................................................................................... GEN-8
I. Treatment of Payment Errors .......................................................................................................... GEN-8
J. Treatment of Sweep Arrangements .................................................................................................. GEN-8
K. Mergers ........................................................................................................................................ GEN-9
L. Treatment of Suspense Accounts .................................................................................................... GEN-9
M. Netting ........................................................................................................................................ GEN-9
A. Who Must Report

Item Instructions
Demand Deposits Due to the Public
(Item A.1)

........................................................................................................................................ ITEM-1
Other liquid deposits (Item A.2) ........................................................................................................ ITEM-3
Cash Items in Process of Collection
(Item B.1)

........................................................................................................................................ ITEM-6
Small Time Deposits (Item C.1) ......................................................................................................... ITEM-7
Reporting of Deposits Issued on a
Discount Basis

................................................................................................................................. ITEM-8
Reporting of Brokered Time Deposits ............................................................................................... ITEM-8
Vault Cash (Item D.1) ..................................................................................................................... ITEM-10
Annual Items .................................................................................................................................. ITEM-11
Reservable Liabilities (Item E.1) ...................................................................................................... ITEM-11
Net Transaction Accounts (Item E.1.a) ............................................................................................ ITEM-11
Worksheet for Preparing Annual Items ............................................................................................. ITEM-12
Worksheet Line 4:
Total Transaction Accounts (Sum of lines 1, 2, and 3)

FR 2900

....................................................................... ITEM-12
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Contents
Worksheet Line 5:
Balances Due from Depository Institutions in the United States
Worksheet Line 9:
Total Nonpersonal Time Deposits

........................................................ ITEM-14

.................................................................................................... ITEM-14

Worksheet Line 10:
Ineligible Acceptances and Obligations Issued by Affiliates Maturing in Seven Days or More
(Nonpersonal Only)

........................................................................................................................ ITEM-16

Worksheet Line 11:
Net Eurocurrency Liabilities

............................................................................................................ ITEM-18

Glossary

................................................................................................................. GL-1
ATS (Automatic transfer service) account .............................................................................................. GL-1
Bankers’ acceptance .............................................................................................................................. GL-1
Bankers’ bank ...................................................................................................................................... GL-1
Banking business .................................................................................................................................. GL-2
Bank note ............................................................................................................................................ GL-2
Bona fide cash management .................................................................................................................. GL-2
Branches and agencies of foreign (non-U.S.) banks ................................................................................. GL-2
Brokered deposits ................................................................................................................................. GL-2
Brokers security draft ............................................................................................................................ GL-2
Cash collateral account ......................................................................................................................... GL-2
Certificates of indebtedness ................................................................................................................... GL-2
Club accounts ...................................................................................................................................... GL-2
Commodity or bill of lading draft .......................................................................................................... GL-2
Credit balance ...................................................................................................................................... GL-3
Custodial inventory program ................................................................................................................. GL-3
Dealer reserve or dealer differential account ........................................................................................... GL-3
Demand deposit ................................................................................................................................... GL-3
Deposit notes ....................................................................................................................................... GL-3
Depository institution ........................................................................................................................... GL-3
Deposits ............................................................................................................................................... GL-4
Draft ................................................................................................................................................... GL-4
Acknowledgment of advance

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FR 2900

Contents
................................................................................................................................................ GL-4
Edge Act and agreement corporations .................................................................................................... GL-4
Exempt entities ..................................................................................................................................... GL-4
Exemption amount ............................................................................................................................... GL-5
Federal public funds ............................................................................................................................. GL-5
Federal Reserve draft ............................................................................................................................ GL-5
Finance bills ......................................................................................................................................... GL-5
Foreign (non-U.S.) bank ....................................................................................................................... GL-5
Foreign (non-U.S.) governments ............................................................................................................ GL-5
Foreign (non-U.S.) national government ................................................................................................. GL-6
Foreign (non-U.S.) official banking institutions ...................................................................................... GL-6
Hypothecated deposits .......................................................................................................................... GL-6
Immediately available funds ................................................................................................................... GL-6
International institution ........................................................................................................................ GL-6
Letter of credit ..................................................................................................................................... GL-6
Loan-to-lender program ........................................................................................................................ GL-6
Majority-owned subsidiary ................................................................................................................... GL-6
MMDA (Money market deposit account) .............................................................................................. GL-6
Natural person ..................................................................................................................................... GL-6
NINOW (Non-interest-bearing negotiable order of withdrawal) account .................................................. GL-7
Noncash item ....................................................................................................................................... GL-7
Nonconsolidated affiliate ...................................................................................................................... GL-7
Non-exempt entity ................................................................................................................................ GL-7
Nonpersonal time deposit ..................................................................................................................... GL-7
Non-U.S. ............................................................................................................................................. GL-8
Non-U.S. bank ..................................................................................................................................... GL-8
NOW account ...................................................................................................................................... GL-8
Original maturity .................................................................................................................................. GL-8
Payable-through drafts .......................................................................................................................... GL-8
Personal time deposit ............................................................................................................................ GL-9
Preauthorized transfer .......................................................................................................................... GL-9
Remote service unit (RSU) .................................................................................................................... GL-9
Due bill

FR 2900

CONTENTS-3

Contents
.......................................................................................................................... GL-9
Returned item ...................................................................................................................................... GL-9
Savings deposit ..................................................................................................................................... GL-9
Share draft ........................................................................................................................................... GL-9
Small time deposit ................................................................................................................................ GL-9
Suspense accounts ................................................................................................................................ GL-9
Telephone and preauthorized transfer accounts ...................................................................................... GL-9
Teller’s check ...................................................................................................................................... GL-10
Time certificate of deposit ................................................................................................................... GL-10
Time deposit ....................................................................................................................................... GL-10
Time deposit open account .................................................................................................................. GL-10
Transferable ........................................................................................................................................ GL-11
Unposted credits ................................................................................................................................. GL-11
Unposted debits .................................................................................................................................. GL-11
U.S. (United States) ............................................................................................................................ GL-11
U.S. branches and agencies of foreign (non-U.S.) banks ........................................................................ GL-11
U.S. Treasury General Account ............................................................................................................ GL-11
Repurchase agreement

CONTENTS-4
FR 2900

INSTRUCTIONS FOR THE PREPARATION OF

Report of Deposits and Vault Cash
Branches and Agencies

Introduction
The FR 2900 report is used by the Federal Reserve for
the construction of the monetary aggregates and to
meet the requirement that the exemption amount be
indexed annually as specified by the Federal Reserve
Act.1
The Report of Deposits and Vault Cash (FR 2900) is
required from all banking Edge Act and agreement
corporations and U.S. branches and agencies of foreign (non-U.S.) banks, regardless of the level of their
deposits.
The FR 2900 instructions present detailed guidance on
the preparation of the FR 2900 reports by U.S.
branches and agencies of foreign (non-U.S.) banks.
Separate instructions are provided for commercial
banks, Edge Act and agreement corporations, industrial banks, building or savings and loan associations,
mutual savings banks, cooperative banks, homestead
associations, and savings banks, and for credit unions.
The FR 2900 instructions may be obtained upon
request from the appropriate Federal Reserve Bank
and are available on the Federal Reserve Board’s website at https://www.federalreserve.gov/apps/
reportingforms.
Subsequent sections of these instructions are organized as follows. Section 1 provides general instructions for preparation of the FR 2900. Section 2 provides item-by- item instructions for all items on the
1. The Board is required by Section 19(b) of the Federal Reserve Act
to update the exemption and low reserve tranche amounts once a year
before December 31. The exemption amount defines the amount of net
transaction accounts subject to a reserve requirement ratio of 0 percent,
while the low reserve tranche denotes the amount of net transaction
accounts subject to a reserve requirement ratio of 3 percent. Annual
indexation of these amounts will continue even though reserve ratios on
net transaction accounts are set to 0 percent.

FR 2900

FR 2900 report. The glossary defines (in alphabetical
order) important terms and phrases that appear
throughout the instructions.
The following instructions are based on Regulation D
and in no way alter or modify the requirements of
Regulation D. Although every effort has been made to
incorporate all existing regulatory provisions, applicable regulations, interpretations, and legal opinions,
the FR 2900 instructions should not be considered the
final authority on the deposit status of all instruments,
obligations, or transactions. Final authority rests with
the Board of Governors of the Federal Reserve
System. Inquiries concerning specific instruments,
obligations, or transactions may be directed to the Federal Reserve Bank in the appropriate District.

General Instructions
A. Who Must Report
The FR 2900 report is required from any U.S. branch
or agency of a foreign (non-U.S.) bank that (1) has
total worldwide consolidated bank assets in excess of
$1 billion, or (2) is controlled by a non-U.S. company
or by a group of non-U.S. companies that own or control non-U.S. banks that in the aggregate have total
worldwide consolidated bank assets in excess of
$1 billion.
A newly licensed U.S. branch or agency of a non-U.S.
bank should commence reporting as of the date the
initial accounting entry is made to its books, but not
before a permanent charter or license is issued.

B. Where to Report
A reporting institution must file the FR 2900 with the
Federal Reserve Bank in the Federal Reserve District in
which the branch or agency is licensed.
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General Instructions

C. How to Report
The FR 2900 shall reflect amounts outstanding as of
the “close of business” each day during the reporting
period. The report should be prepared in accordance
with the procedures described below.
1. Consolidation. Branches and agencies located in
the same state and within the same Federal
Reserve District shall submit an aggregated
report of deposits to the Federal Reserve Bank
in whose District they operate. However,
branches and agencies located in the same state
but in different Federal Reserve Districts shall
report deposits separately to their respective
Reserve Banks.
In reporting deposits, U.S. branches and agencies should exclude transactions with other U.S.
branches and agencies of the same non-U.S.
bank.
Banking Edge Act and agreement subsidiaries
of the reporting institution are required to file
separate reports to the Federal Reserve and
therefore should not be consolidated in the
depository institution’s report.
Balances due to and due from non-U.S.
branches of the reporting institution should be
excluded from all items on the FR 2900 except
for item E.1 (Reservable Liabilities), where they
are included in the calculation of net Eurocurrency liabilities. Report on the FR 2900 any
deposit received from a non-U.S. office of an
affiliate.
Deposits of the reporting institution’s International Banking Facility (IBF) should be
excluded from the FR 2900.2 Net balances due
to or due from the reporting institution’s own
IBF should be included in the calculation of net
Eurocurrency liabilities (item E.1) and excluded
from all other items on the FR 2900.
2. An IBF may be established in the United States by a U.S. depository institution, a U.S. branch or agency of a foreign (non-U.S.) bank,
or a banking Edge Act and agreement corporation. An IBF is a set of
asset and liability accounts segregated on the books and records of the
establishing entity. Permissible IBF assets and liabilities are defined in
Federal Reserve Regulation D–Reserve Requirements of Depository
Institutions of the Board of Governors of the Federal Reserve System
(12 C.F.R. § 204) (Regulation D).

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April 2021

The consolidation basis to be used in preparing
the FR 2900 may differ from the report of condition and certain other reports.3 For example,
“checks on hand” received at a reporting institution’s majority-owned subsidiary should be
combined with the reporting institution’s “cash
items in process of collection.” Obligations of a
majority-owned subsidiary that meet the definition of ‘‘deposits’’ should be included as deposit
liabilities of the parent reporting institution.
Preparing a Consolidated FR 2900 Report
Step 1: Combine comparable accounts of the
reporting institution’s individual entities on an
account-by-account basis.
Step 2: Eliminate all interoffice transactions that
reflect the existence of debtor–creditor relationships among the entities and branches to be
consolidated.
2. Basis of Accounting. Liabilities that are reported
on the FR 2900 must be based on the reporting
institution’s contractual liability to its counterparty, which includes accrued interest. Liabilities must be reported based on the reporting
institution’s contractual liability regardless of
whether it has elected to report the fair value of
its liabilities on financial statements.
3. Denomination. Amounts should be rounded and
reported to the nearest thousand U.S. dollars.
4. Foreign (Non-U.S.) Currency-Denominated
Transactions. Transactions denominated in foreign (non-U.S.) currency must be valued in U.S.
dollars each reporting week either by using the
exchange rate prevailing on the Tuesday that
begins the seven-day reporting week or by using
the exchange rate prevailing on each corresponding day of the reporting week.
Regardless of which of the above two options is
elected, the exchange rates to be used for this
conversion are a consistent series of exchange
rate quotations. These procedures will apply to
3. In this document, the term “report of condition” refers to the
Consolidated Report of Condition and Income for Edge and Agreement Corporations (FR 2886b) and the commercial bank Consolidated
Reports of Condition and Income (FFIEC 031, FFIEC 041, and
FFIEC 051).

FR 2900

General Instructions

all foreign (non-U.S.) currency-denominated
deposits that are outstanding during any one
day of the reporting week, including those that
are received by the reporting institution after the
start of the reporting week (Tuesday) or paid
out before the close of the reporting week (the
following Monday).

institution for that day. The posting of a transaction to the general ledger account means that
both debit and credit entries must be recorded as
of the same date. For any day on which the
reporting institution was closed—that is, no
entries were made to the general ledger—report
the closing balance as of the preceding day.

Once a reporting institution chooses to value
foreign (non-U.S.) currency transactions by
using either the weekly (Tuesday) method or the
daily (corresponding day) method, it must use
that method consistently over time for all Federal Reserve reports. If at some future time the
reporting institution wishes to change its valuation procedure from one of these two methods
to the other, the change must be applied to all
Federal Reserve reports and then used consistently thereafter. Please notify the appropriate
Federal Reserve Bank of any such change.

Adjustments made to the general ledger after the
close of business to accurately reflect transactions
executed as of the close of business on the report
date should be reported on the FR 2900. For
example, if the general ledger is updated to correct a clerical error or a misposting, it is appropriate to revise the FR 2900. However, post-closing
adjustments to the accounting records of the
reporting institution that reflect transactions that
did not occur on the reporting date should not be
reported on the FR 2900.

Foreign (non-U.S.) currency-denominated
deposits held at U.S. offices of a reporting institution must be converted to U.S. dollars under
the procedures stipulated above and included as
appropriate in section A, B, C, or E of the
FR 2900. In addition, all FR 2900 reporting
institutions that offer foreign (non-U.S.)
currency-denominated deposits at their U.S.
offices must file the Report of Foreign (NonU.S.) Currency Deposits (FR 2915), which
breaks out the amounts of such deposits, converted to U.S. dollars that are included in
selected FR 2900 line items. For information on
the FR 2915, please contact the appropriate
Federal Reserve Bank.

6. Weekend and Holiday Posting. Institutions that
post to their general ledger on Saturdays, Sundays, and/or holidays may report these balances
on the FR 2900 for these days. Both debit and
credit entries for each transaction must be
recorded on the official books and recorded on
the same day in order to be reported on the
FR 2900; otherwise, the preceding day’s balances are reported.

The term ‘‘close of business’’ refers to the time
established by the reporting institution as the
cutoff time for posting transactions to its general ledger accounts for that day. The time designated as close of business should be reasonable
and applied consistently.

7. Pre-Posting. Transactions that result from prior
commitments should be reported on the date
that the transaction is executed, not on the commitment date. However, where payment information (such as that contained on magnetic
tape, paper listings, and similar items involving
automated arrangements) is sent to the reporting institution before the effective payment date,
the institution may credit its depositors’
accounts one day before the effective payment
date to ensure that the deposit will be available
to the depositor at the opening of business on
the payment date. When such prior credit to
deposit accounts is given in connection with
automated arrangements, the credits should be
offset by appropriate debit entries to item B.1,
Cash Items in Process of Collection.

For purposes of the FR 2900 report, the reporting institution is open when entries are made to
the general ledger accounts of the reporting

8. Overdrafts or Negative Balances. Unless covered
by a bona fide cash management arrangement,
all deposit accounts with a negative balance as

5. Recordkeeping. The amount reported for each
day should reflect the amount outstanding at
the close of business for that day.

FR 2900

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General Instructions

of the close of business each day (whether
resulting from prearranged or unplanned overdrafts or from operating or other factors) are to
be regarded as having a zero balance for purposes of computing deposit totals.4 Moreover,
any overdrawn deposit account by a customer
should be regarded as a loan made by the
reporting institution to that customer, and the
amount of the overdraft should be regarded as
zero and not be reported as a negative deposit.
(See subsection G, Treatment of Trust Funds.)
9. Unposted Debits and Credits. Unposted debits
consist of cash items drawn on the reporting
institution that have been ‘‘paid’’ or credited by
the reporting institution and are chargeable, but
that have not been charged against deposits as of
the close of business. These items should be
reported in item B.1, Cash Items in Process of
Collection, until they have been charged to
either individual or general ledger deposit
accounts. Unposted credits consist of items that
have been received for deposit and that are in
process of collection but have not been posted
to individual or general ledger deposit accounts.
These credits should be reported as deposits.
(See subsection L, Treatment of Suspense
Accounts.)
10. Rejected Items. Rejected items (resulting from
mutilated documents, incorrect account numbers, or other factors) that would otherwise have
resulted in credit to deposit accounts should be
included in deposit totals for the day on which
corresponding debits have been posted. Rejected
items that represent withdrawals from deposit
accounts and for which corresponding credits
have already been recorded should be deducted
from deposits as of the close of business for
that day.
11. Filing of Data. FR 2900 data must be filed with
the appropriate Federal Reserve Bank electronically. Please visit https://www.federalreserve.gov/
apps/reportingforms or contact the appropriate
Federal Reserve Bank for information on elec-

tronic submission of the reporting institution’s
data.
Please note that if a reporting institution has its
data prepared or transmitted by a private vendor, the reporting institution is responsible for
the timeliness and accuracy of data to the same
extent as if it had prepared and transmitted the
data itself. The reporting institution may be contacted directly by, and be responsible for
responding to, the Federal Reserve regarding
questions on its FR 2900 data.

D. Requests for Revised Data
Federal Reserve System staff review data submitted on
the FR 2900 report very carefully to ensure that the
data are accurate. As a result of that review, Federal
Reserve Bank staff may ask reporting institutions to
explain movements in the data, and, if reported data
are incorrect, staff will ask the institution to submit
revisions.

E. Liabilities That Are Reservable under
Regulation D
The Board is required by Section 19(b) of the Federal
Reserve Act to update reserve requirement exemption
and low reserve tranche amounts once a year before
December 31. The exemption amount defines the
amount of net transaction accounts subject to a
reserve requirement ratio of 0 percent, while the low
reserve tranche denotes the amount of net transaction
accounts subject to a reserve requirement ratio of
3 percent. Annual indexation of these amounts will
continue even though reserve ratios on net transaction
accounts are set to 0 percent. Detailed instructions
defining these reservable liabilities can be found in the
item-by-item instructions for item E.1, Reservable
Liabilities, and item E.1.a, Net Transaction Accounts.
Deposits, as defined by Regulation D, are described in
subsection F immediately below.

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

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June 2023

Regulation D, section 204.2(a)(1), defines “deposits,”
which, for the purposes of the FR 2900 report, are
divided into two broad categories of liabilities: deposFR 2900

General Instructions

its and primary obligations that are undertaken by the
reporting institution as a means of obtaining funds.

business (including accounts where
funds are remitted by the reporting
institution only when it has been
advised that the checks or drafts have
been presented); and

1. Deposits reported in sections A, C, and E of the
FR 2900 consist of
a. funds (including brokered deposits) received
or held by the reporting institution for which
credit has been given or is obligated to be
given to a transaction account (demand
deposit, telephone or preauthorized transfer,
NOW account, ATS account, or a savings
deposit account) or a time deposit account.
Also include interest credited to such
accounts;
b. funds received or held by departments other
than the trust department of the reporting
institution for a special or specific purpose,
such as escrow funds, funds held as security
or as cash collateral for securities lent by the
reporting institution, funds held as cash collateral posted in connection with conduit
securities lending transactions, funds held as
cash collateral posted by counterparties to
swap agreements, funds deposited as advance
payments on subscriptions to U.S. government securities, and funds held to meet the
reporting institution’s acceptances. Refer to
subsection G, Treatment of Trust Funds, for
clarification on trust reporting;
c. cashier’s checks, certified checks, teller’s
checks, and other officer’s checks issued for
any purpose, including those issued in payment for services, dividends, or purchases
that are drawn on the reporting institution
by any of its duly authorized officers and
that are outstanding on the report date.
These checks include

d.

e.

f.

g.

h.

(i) those drawn by the reporting institution on itself and not payable at or
through another depository
institution;
(ii) those drawn by the reporting institution and drawn on, or payable at or
through, another depository institution on a zero balance account or an
account that is not routinely maintained with sufficient balances to cover
checks drawn in the normal course of
FR 2900

i.

(iii) those drawn by the reporting institution on, or payable at or through, a
Federal Reserve Bank or a Federal
Home Loan Bank;
funds received or held in connection with
traveler’s checks and teller’s checks sold (but
not drawn) by the reporting institution, until
the proceeds of the sale are remitted to
another party. Also include other funds
received or held in connection with any other
checks used (but not drawn) by the reporting
institution, until the amount of the checks is
remitted to another party;
money orders issued for any purpose (including those issued in payment for services, dividends, or purchases) that are drawn on the
reporting institution and are outstanding on
the report date. Also include funds received
or held for money orders sold, but not
drawn, by the reporting institution until the
proceeds of the sale are remitted to another
party;
funds received or held in connection with letters of credit issued to customers, including
funds credited to cash collateral accounts
and similar accounts;
checks or drafts drawn by, or on behalf of, a
non-U.S. office of the reporting institution
on an account maintained at any U.S. office
of the reporting institution;
deposits at non-U.S. offices of the reporting
institution that are payable at a U.S. office or
for which the depositor is guaranteed payment at a U.S. office. A deposit of a U.S.
resident in a denomination of less than
$100,000 is a deposit, regardless of where it
is payable;
any obligation to pay a check or draft drawn
on the reporting institution that has been
presented for collection by a third party
when the depositor’s account at the reporting institution has already been charged and
settlement of the check has not been made;
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General Instructions

j. credit balances; and
k. any funds received by the reporting institution’s affiliate and later channeled to the
reporting institution by the affiliate in the
form of a transaction account or time
deposit.
2. Certain primary obligations are reported in sections A, C, and E of the FR 2900. Primary obligations reported in these sections consist of
a. any obligation that can be sold or transferred
to another party without the knowledge of
the reporting institution, regardless of the
party to whom the obligation was initially
issued;
b. purchases of ”federal funds,” either overnight or for a specified term, from nonexempt entities;
c. repurchase agreements entered into with
non-exempt entities on any asset other than
(1) an obligation of, or an obligation fully
guaranteed as to principal and interest by,
the U.S. government or a federal agency or
(2) the shares of a money market mutual
fund whose portfolio consists wholly of obligations of, or obligations fully guaranteed as
to principal and interest by, the U.S. government or a federal agency;
d. funds raised through the issuance and sale of
mortgage securities (backed by a pool of
conventional, non-federally insured mortgages) to non-exempt entities if the originating reporting institution is obligated to incur
more than the first 10 percent of any loss
associated with that pool of mortgages. This
treatment, however, does not apply to normal mortgage loan participation transactions in which the buyer and seller of a participation in a mortgage loan or pool of
mortgages share all risk of loss on a pro rata
basis. In such instances, any funds raised
through the sale of such participations are
not subject to reservable liabilities;
e. liabilities of the reporting institution in the
form of mortgage-backed bonds that are
issued and sold by the reporting institution
to non-exempt entities;
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April 2021

f. proceeds from outstanding sales to nonexempt entities of short-term loans made
under long-term lending commitments;
g. liabilities for outstanding bank notes or
other debt instruments other than those that
are subordinated to the claims of depositors,
are not insured by a federal agency, have
weighted-average maturities of five years or
more, and are issued by a depository institution with the approval or under the rules and
regulations of its primary federal supervisor;
h. the borrowing of cash equivalents that
qualify as deposits for Regulation D purposes (for example, precious metals); and
i. liabilities arising from the issuance of due
bills or similar instruments that are issued by
the reporting institution to any customer
(including another depository institution),
regardless of the use of the proceeds, or a
debit to an account of the customer before
the securities are delivered, unless collateralized within three business days from the date
of issuance by a security similar to the security purchased by the reporting institution’s
customer. A security is similar if it is of the
same type and if it is of comparable maturity
to that purchased by the customer. In the
absence of such collateral, due bills become
reservable deposits beginning on the fourth
business day after the date of issuance, without regard to the purpose of the due bill or
the party to whom it was issued.
3. Primary obligations to be reported in items E.1
and E.1.a of the FR 2900 consist of any liability
of the reporting institution’s nonconsolidated
affiliate on any promissory note (including commercial paper), acknowledgment of advance,
due bill, or similar obligation (written or oral),
regardless of maturity, to the extent that the
proceeds are used to supply or maintain the
availability of funds (other than capital) to the
reporting institution (1) if the affiliate’s liability
would have been regarded as reservable if issued
by the reporting institution and (2) if the proceeds from the affiliate’s liability are channeled
to the reporting institution in the form of a nonreservable transaction (for example, a sale of the
reporting institution’s assets to its affiliate).
FR 2900

General Instructions

The proceeds from the affiliate’s liability
(whether regarded as reservable or nonreservable if issued by the reporting institution) when
channeled to the reporting institution in the
form of a transaction account or time deposit
should be reported by the reporting institution
as a transaction account or time deposit respectively (see subsection F.1.a). If the affiliate’s
liability would have been regarded as nonreservable if issued by the reporting institution, and if
the proceeds from the affiliate’s liability are
channeled to the reporting institution in the
form of a nonreservable transaction, such funds
are excluded from the FR 2900 report.
Regulations may require certain obligations that
are not classified as deposits on other reports to
be treated as deposits on the FR 2900 report.
For example, certain debt obligations issued to
non-exempt entities are defined as deposits for
purposes of Regulation D and the FR 2900
report but are reported as borrowings on the
quarterly report of condition. Consequently, the
deposit balances on the FR 2900 report may differ from amounts reported in corresponding
lines reported on the reporting institution’s
report of condition and on other reports submitted to the reporting institution’s regulator.
In general, funds received by a reporting institution that are immediately applied to reduce or
extinguish a customer’s indebtedness to that
institution do not constitute deposits because no
liability is incurred. However, where a reporting
institution receives funds representing loan
repayments in the course of servicing loans for
others, such funds represent deposits. Certain
dealer reserve or dealer differential accounts,
such as those that arise when financing a merchant’s installment accounts receivable and
which provide that the dealer may not have
access to the funds in the account until the
installment loans are repaid, are not reservable
liabilities until the reporting institution becomes
obligated to the merchant for the full amount or
any portion of the funds. Similarly, funds that
have been irrevocably assigned to the reporting

FR 2900

institution and cannot be reached by its customer or by the customer’s creditors are not
reservable liabilities. Finally, certain other liabilities that do not result in a receipt of funds, such
as accounts payable, are not regarded as reservable liabilities.

G. Treatment of Trust Funds
Trust funds should be reported as deposits of the
reporting institution and should be classified depending on the terms of the underlying agreement when
1. deposited by the trust department of the reporting institution in the commercial or other
department of the reporting institution;
2. deposited by the trust department of another
reporting institution in the commercial or other
department of the reporting institution; or
3. mingled with the general assets of the reporting
institution, regardless of where held.
Commingled balances of individual trusts held in a
single transaction account may not be netted. A negative balance in an individual trust account must be
reflected as a zero balance and should not be netted
against positive balances in other trusts in computing
the amount in the commingled transaction account
each day. The prohibition does not apply, however, if
(1) the applicable trust law specifically permits the netting, or if a written trust agreement, valid under applicable trust law, permits a trust to lend money to
another trust account; or (2) the amount that caused
the overdraft is still available in a settlement, suspense,
or other trust account within the trust department and
may be used to offset the overdraft.
Exclude from the FR 2900 report trust funds that a
reporting institution receives or holds but keeps segregated from its general assets and that are not available
for general investment or lending purposes. Items such
as bonds, stocks, jewelry, coin collections, and so on,
that are left with the reporting institution for safekeeping, sometimes referred to as “special deposits,” should
not be included as deposits on the FR 2900 report.

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April 2021

General Instructions

H. Treatment of Escrow Funds
Escrow funds consist of funds deposited with a reporting institution under an agreement that requires the
reporting institution to pay all or some portion of the
funds to a third party at a certain time or upon fulfillment of certain conditions.
Escrow funds should be classified as transaction
accounts or time deposits based on the contractual
maturity date or disbursement schedule in the escrow
agreement. When the escrow agreement has no specific
maturity date or disbursement schedule, these funds
may be classified by when the funds have been disbursed in practice.
Escrow funds will be regarded as personal savings
deposits or personal time deposits if the depositor is a
natural person and the other conditions of a savings
deposit or time deposit are met, notwithstanding that
the funds are held by the reporting institution as an
escrow agent. The classification of escrow funds as
time deposits or savings deposits does not depend on
whether or not interest or dividends are paid on the
funds. Escrow agreements entered into by the reporting
institution in states where the payment of interest or
dividends on such accounts is required by law must
comply with the notice or maturity provisions applicable to time deposits or savings deposits.

I. Treatment of Payment Errors
Demand deposits that are incurred because of payment errors must be reported in the appropriate category on the FR 2900. The holder of the funds must
report them on the FR 2900 even if the depository
institution that has the funds did not intend to receive
these funds or intended to send these funds but could
or did not. Payment errors typically arise from the following transactions:
1. Duplicate Payment. A duplicate payment occurs
when the sending institution transfers funds
more than once. Part of this payment will eventually be returned. However, the funds represent
a demand deposit for the receiving institution,
and the amount must be reported as a demand
deposit until the funds are disbursed. The sending institution does not have either a due from
depository institution deduction or a cash item
in the process of collection.
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April 2021

2. Misdirected Payment. A misdirected payment
occurs when the sending institution transfers
funds to the wrong depository institution. The
funds will eventually be returned to the sending
institution or disbursed to the correct institution. However, the institution that received the
funds in error must report these funds as a
demand deposit until the funds are disbursed.
The sending institution does not have either a
due from depository institution deduction or a
cash item in the process of collection. The institution that did not receive the expected funds,
regardless of whether or not the institution credited the customer’s account in anticipation of
receiving payment, does not have either a due
from depository institution deduction or a cash
item in the process of collection.
3. Failed Payment. A failed payment occurs when
an institution fails to make a payment requested
by a customer because of payment system failures (for example, computer problems) or a
clerical error. The funds retained because the
transfer was not executed must be reported as a
demand deposit until the funds are disbursed.
The institution that did not receive the expected
funds, regardless of whether or not the institution credited the customer’s account in anticipation of receiving payment, does not have either a
due from depository institution deduction or a
cash item in the process of collection.
4. Improper Third-Party Transfers. An improper
third-party transfer occurs when a third-party
transfer is sent over Fedwire during the settlement period. If the transfer is not reversed by
the close of Fedwire, the receiving depository
institution must report these funds as a demand
deposit. The sending depository institution does
not report these funds as either a due from
depository institution or a cash item in the process of collection.

J. Treatment of Sweep Arrangements
Sweep arrangements allow funds to be automatically
transferred between different types of deposit accounts
or between deposit accounts and other interest-bearing
instruments. The FR 2900 should reflect amounts outFR 2900

General Instructions

standing as of the close of business each day as
reflected on the reporting institution’s general ledger
for each item. Therefore, any swept amounts should be
reported based on the account in which they reside at
the close of each day, not where the deposits originated. When deposits of a customer under a sweep
program were not transferred between accounts on the
general ledger for any reason, the reporting institution
should not make back-valued or post-closing adjustments to the FR 2900 to reflect the sweep activity that
did not actually occur.
1. Offshore Investment Sweeps. When a depository
institution intends to establish an offshore sweep
program, the deposit contractual agreement
between the reporting institution and its customer must be executed pursuant to which the
deposit is payable as a matter of right only at an
office located outside the United States of the
reporting institution. However, if a deposit of a
U.S. resident under an offshore sweep program
is less than $100,000, it must be reported on the
reporting institution’s FR 2900 as a deposit,
regardless of any provisions in the applicable
deposit agreement as to payability only outside
the United States.
2. Domestic Investment Sweeps. When a depository institution intends to establish an investment sweep program with its customer, a contractual agreement between the reporting institution and the customer must be executed that
clearly states that, for the period during which
the funds are swept, the liability for the funds is
no longer a deposit liability of the reporting
institution but rather the liability of the issuer of
the alternate investment.
3. Retail Sweeps. When a depository institution
establishes a retail sweep program, the depository institution must ensure that its customer
account agreements provide for the existence of
two distinct accounts rather than a single
account and that funds are actually transferred

FR 2900

between these two accounts as described in the
customer contract.
There are two key criteria for valid retail sweep
programs:
a. A depository institution must establish by
agreement with its customer two legally separate accounts.
b. The swept funds must actually be moved
between the customer’s two accounts on the
depository institution’s official books and
records of the institution as of the close of
business on the day(s) on which the depository institution intends to report the funds.

K. Mergers
The surviving entity of a merger should report consolidated FR 2900 balances as of the first calendar day
that the nonsurvivor no longer exists. This day should
be based on the legal date of the merger regardless of
whether it occurs on a weekday, weekend, or holiday.

L. Treatment of Suspense Accounts
Funds in suspense accounts must be reported in item
A.1, Demand Deposits Due to the Public. When the
disposition of funds in suspense has been determined,
the funds should be reported in the appropriate line
item. However, what was previously reported cannot
be revised.

M. Netting
Netting liabilities against assets is generally not permitted on the FR 2900. Netting is permitted only when
explicitly outlined in these instructions (for example,
bona fide cash management agreements) even if generally accepted accounting standards permit additional
netting practices (for example, FIN 39-1).

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Item Instructions

Demand Deposits Due to the Public
(Item A.1)
Demand deposits are deposits that are payable immediately on demand, or that are issued with an original
maturity or required notice period of less than seven
days, or that represent funds for which the reporting
institution does not reserve the right to require at least
seven days’ written notice of an intended withdrawal.
Include in item A.1 the balance of demand deposits
due to the public in the form of deposits and primary
obligations as defined in the bulleted list below. Note
that this item excludes demand deposits due to depository institutions and demand deposits of the U.S.
government.
1. Demand deposits in the form of deposits
held for
a. individuals, partnerships, and corporations,
wherever located;
b. states and local governments and their political subdivisions;
c. U.S. government agencies and instrumentalities, including the Federal Home Loan
Banks, Federal Intermediate Credit Banks,
Federal Land Banks, Banks for Cooperatives, the Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance
Corporation, Federal National Mortgage
Association, Federal Financing Bank,
National Credit Union Share Insurance
Fund, NCUA Central Liquidity Facility, and
Export-Import Bank of the United States;
d. nondepository and limited purpose trust
companies
e. trust departments of the reporting institution and of other institutions (see section 1,
subsection G, Treatment of Trust Funds);
FR 2900

f. nondepository affiliates of the reporting
institution and of other depository
institutions;
g. foreign (non-U.S.) governments (including
foreign (non-U.S.) official banking institutions), both national and regional, and international institutions; and
h. holding companies;
2. Withheld state and local government taxes,
insurance premiums, and similar items (but not
withheld federal income tax payments);
3. Cashier’s checks, certified checks, teller’s checks,
and other officer’s checks issued for any purpose, including those issued in payment for services, dividends, or purchases that are drawn by
any of the reporting institution’s duly authorized officers and that are outstanding on the
report date. These checks include
a. those drawn by the reporting institution on
itself and not payable at or through another
depository institution;
b. those drawn by the reporting institution and
drawn on, or payable at or through, another
depository institution on a zero-balance
account or an account that is not routinely
maintained with sufficient balances to cover
checks drawn in the normal course of business (including accounts where funds are
remitted by the reporting institution only
when it has been advised that the checks or
drafts have been presented).
Those checks drawn by the reporting institution on a deposit account at another depository institution that the reporting institution
routinely maintains with sufficient balances
to cover checks or drafts drawn in the norITEM-1

April 2021

Item Instructions

mal course of business should be excluded
from this item;
c. those checks drawn by the reporting institution on, or payable at or through, a Federal
Reserve Bank or a Federal Home Loan
Bank;
4. Funds received or held in connection with traveler’s checks and teller’s checks sold (but not
drawn) by the reporting institution, until the
proceeds of the sale are remitted to another
party. Also included are other funds received or
held in connection with any other checks used
(but not drawn) by the reporting institution,
until the amount of the checks is remitted to
another party;
5. Money orders issued for any purpose (including
those issued in payment for services, dividends,
or purchases) that are drawn on the reporting
institution and are outstanding on the report
date. In addition, funds received or held for
money orders sold, but not drawn, by the
reporting institution should be included as
deposits until the proceeds of the sale are remitted to another party;
6. Unposted credits and suspense accounts;
7. Funds received in connection with letters of
credit issued to customers, including funds credited to cash collateral accounts or similar
accounts;
8. Funds deposited to the credit of the reporting
institution’s own trust department, where the
funds involved are used to cover checks or
drafts;
9. Funds received or held in escrow accounts that
may be withdrawn on demand or within six days
from the date of deposit, except escrow funds
held as savings deposits or time deposits (see section 1, subsection H, Treatment of Escrow
Funds);
10. Non-interest-bearing deposits subject to negotiable order of withdrawal (NINOWs);
11. Deposits subject to payment order of withdrawal (POWs);
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April 2021

12. Any deposit or account that otherwise meets the
definition of a time deposit but that allows withdrawals within the first six days after the date of
deposit and that does not require an early withdrawal penalty of at least seven days’ simple
interest on amounts withdrawn within those
first six days, unless the deposit or account
meets the definition of a savings deposit. Any
such deposit or account that meets the definition of a savings deposit shall be reported as
other liquid deposits (item A.2). Otherwise, the
deposit or account shall be reported in this item;
13. The remaining balance of a time deposit from
which a partial early withdrawal has been made,
unless the remaining balance either (a) is subject
to additional early withdrawal penalties of at
least seven days’ simple interest on amounts
withdrawn within six days after each partial
withdrawal (in which case the deposit or account
continues to be reported as a time deposit) or
(b) is placed in an account that meets the definition of a savings deposit (in which case the
deposit or account shall be reported as other liquid deposit (item A.2)). Otherwise, the deposit
or account shall be reported in this item;
14. All matured time certificates of deposit, even if
interest is paid after maturity, except matured
time certificates of deposit during the grace
period after maturity, if such a grace period
exists. (See 12 C.F.R § 329.104.)
Excludes matured time certificates of deposit
and proceeds from time deposits or time deposit
open accounts, wherein the deposit agreement
specifically provides for the funds to be transferred to an account type other than a demand
deposit;
15. Due bills that remain uncollateralized by similar
securities for more than three business days and
that are issued by the reporting institution in
maturities of less than seven days to the entities
listed in 1.a through 1.h above; and
16. Primary obligations (other than due bills as discussed immediately above) issued to non-exempt
entities, except
a. amounts of outstanding bankers’ acceptances that are created by the reporting instiFR 2900

Item Instructions

tution and that are of the type that are ineligible for discount at Federal Reserve Banks
(see section 1, subsection F.2, Primary
Obligations).
b. certain obligations issued by the reporting
institution’s nondepository affiliates (see section 1, subsection F.2, Primary Obligations).
Please note that all primary obligations issued to foreign (non-U.S.) national governments, foreign (nonU.S.) official banking institutions, international institutions, and non-U.S. branches of U.S. depository
institutions and non-U.S. branches and agencies and
head offices of non-U.S. depository institutions are
excluded from this item.
Primary obligations having a maturity of less than
seven days issued to a non-U.S. parent bank’s holding
company if the holding company is not a depository
institution, a nonbanking subsidiary of such a holding
company, a nonbanking subsidiary of a non-U.S. parent depository institution’s holding company if the
holding company is a depository institution, and a
non-U.S. parent bank’s nonbanking subsidiary must
be included in this item.
Exclude from item A.1
1. Demand deposit accounts in the form of deposits that are designated as federal public funds,
such as:
a. U.S. Treasury General Accounts and special
collection accounts;
b. postmaster’s demand deposit accounts;
c. demand deposit accounts of the following:
(i) the Tennessee Valley Authority and
other government-owned corporations; and
(ii) disbursing officers of the Department
of Defense and Department of the
Treasury;
d. demand deposit accounts of other public
funds that are subject to control or regulation by the U.S. government, including U.S.
Customs and Border Protection, accounts of
military organizations (such as post
exchanges and military clubs), and similar
entities.
FR 2900

2. All demand deposits due to depository
institutions.
3. Demand deposits due to non-U.S. offices of:
a. other U.S. banks and banking Edge Act and
agreement corporations (that is, other than
the reporting institution's own non-U.S.
offices); and
b. commercial banks, merchant banks, discount
houses, and similar banking institutions
(including banking affiliates of the reporting
institution or its parent) organized under the
laws of a foreign country, Puerto Rico,
Guam, American Samoa, or the Virgin
Islands, or other territories of the United
States.

Other liquid deposits (Item A.2)
Report in item A.2 the sum of the balance of all ATS
accounts, NOW accounts, telephone and preauthorized transfer accounts, and all savings deposits, as
defined below, both personal and nonpersonal, that are
outstanding at the close of business each day. These
types of accounts continue to have different characteristics and regulatory distinctions. The definition of
each type of account is provided separately below.
Each type of account is referenced separately as appropriate elsewhere in the instructions.
Include in item A.2
1. ATS accounts, which are deposits or accounts of
individuals or sole proprietorships on which the
reporting institution has reserved the right to
require at least seven days’ written notice prior
to withdrawal or transfer of any funds in the
account and from which, pursuant to written
agreement arranged in advance between the
reporting institution and the depositor, withdrawals may be made automatically through
payment to the reporting institution itself or
through transfer of credit to a demand deposit
or other account to cover checks or drafts drawn
upon the institution or to maintain a specified
balance in, or to make periodic transfers to, such
other accounts;
2. NOW accounts, which represent interestbearing deposits (1) on which the reporting
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June 2023

Item Instructions

institution has reserved the right to require at
least seven days’ written notice prior to withdrawal or transfer of any funds in the account
and (2) that can be withdrawn or transferred to
third parties by issuance of a negotiable or
transferable instrument. NOW accounts are
authorized by federal law and are limited to
accounts in which the entire beneficial interest is
held by
a. individuals or sole proprietorships;
b. governmental units, including the federal
government and its agencies and instrumentalities; state governments; county and
municipal governments and their political
subdivisions; the District of Columbia; and
the Commonwealth of Puerto Rico, American Samoa, Guam, and any territory or possession of the United States and their political subdivisions; or
c. nonprofit organizations (under Federal
Reserve Board rules) operated primarily for
the following purposes:
(i) religious;
(ii) philanthropic;
(iii) charitable;
(iv) educational;
(v) political; or
(vi) other similar purposes.
These include organizations, partnerships, corporations, or associations that are not organized for profit
and are described in section 501(c)(3) through (13) and
(19), and section 528 of the Internal Revenue Code
(26 U.S.C. (I.R.C. 1954) § 501(c)(3) through (13),
(19) and § 527 through § 528), such as church organizations; professional associations; trade associations;
labor unions; fraternities, sororities, and other similar
social organizations; and nonprofit recreational clubs.
Please note, however, that the following types of organizations as described in the cited provisions of the
Internal Revenue Code are among those not eligible to
maintain NOW accounts:
a. credit unions and other mutual depository institutions (§ 501(c)(14));
b. mutual insurance companies (§ 501(c)(15));
ITEM-4

April 2021

c. crop financing organizations (§ 501(c)(16));
d. organizations created to function as part of a
qualified group legal services plan
(§ 501(c)(20)); and
e. farmers’ cooperatives (§ 521).
Also include as NOW accounts the balances of certain
other nonprofit organizations that may not fall within
the current definition of a nonprofit organization but
that had established NOW accounts with the reporting
institution.
Please note that there are no regulatory requirements
with respect to minimum balances to be maintained in
a NOW account or to the amount of interest that may
be paid on a NOW account. However, any reporting
institution may place its own restrictions or requirements on NOW accounts as long as the accounts meet
the minimum criteria set forth above and in Regulation D;
3. telephone and preauthorized transfer accounts,
which are deposits or accounts, other than savings deposits,
a. in which the entire beneficial interest is held
by a party eligible to hold a NOW account;
b. on which the reporting institution has
reserved the right to require at least seven
days’ written notice prior to withdrawal or
transfer of any funds in the account, and
under the terms of which, or by practice of
the reporting institution, the depositor is
permitted or authorized to make withdrawals
for purposes of transferring funds to another
account of the depositor at the same institution (including a transaction account) or of
making payment to a third party by means of
a preauthorized transfer or a telephonic
(including data transmission) agreement,
order, or instruction; and
c. in which the balances of deposits or accounts
that otherwise meet the definition of time
deposits allow payments to be made to third
parties by means of a debit card (including
point of sale (POS) debits), ATM, RSU, or
other electronic device, regardless of the
number of payments made.
4. A savings deposit is a deposit described in section 1, subsection F.1, or a primary obligation
FR 2900

Item Instructions

described in section 1, subsection F.2, with
respect to which the depositor is not required by
the deposit contract, but may at any time be
required by the reporting institution, to give
written notice of an intended withdrawal not
less than seven days before the withdrawal is
made, and that is not payable on a specified date
or at the expiration of a specified time after the
date of deposit.1
The term ‘‘savings deposit’’ also means a deposit
or account, such as an account commonly
known as a passbook savings account, a statement savings account, or a money market
deposit account (MMDA), that otherwise meets
the requirements of the preceding paragraph
and from which, under the terms of the deposit
contract or by practice of the reporting institution, the depositor is permitted or authorized to
make transfers and withdrawals, to another
account (including a transaction account) of the
depositor at the same institution or to a third
party, regardless of the number of such transfers
and withdrawals or the manner in which such
transfers and withdrawals are made.
Please also note the following with respect to
savings deposits:
a. No minimum maturity is required by regulation, but reporting institutions must reserve
the right to require at least seven days’ written notice prior to withdrawal as stipulated
above for a savings deposit.
b. No minimum balance is required by
regulation.
c. There is no regulatory limitation on the
amount of interest that may be paid on a
savings deposit.
Any depository institution may place restrictions
and requirements on savings deposits in addition
1. When the reporting institution exercises its right to require written
notice of an intended withdrawal in connection with a savings deposit,
the deposit continues to be a savings deposit and should not be reclassified as a time deposit. Where written notice actually is required by the
reporting institution and such notice is received from a depositor, the
savings deposit becomes a demand deposit after expiration of the notice
period. If the demand deposit is due to the public (that is, not due to a
depository institution or the U.S. government), then report the balance
in item A.1.

FR 2900

to those stipulated above and in Regulation D. In
the case of such further restrictions, the account
would still be a savings deposit.
Also include in item A.2
1. accounts commonly known as passbook savings
accounts, statement savings accounts, and
MMDAs that meet the above definition of savings deposits;
2. interest-bearing and non-interest-bearing savings deposits;
3. savings deposits maintained as compensating
balances or pledged as collateral for loans. For
purposes of the FR 2900 report, such savings
deposits are not defined as hypothecated
deposits;
4. escrow deposits where the reporting institution
reserves the right to require at least seven days’
written notice before payment can be made (see
section 1, subsection H, Treatment of Escrow
Funds);
5. interest or dividends paid and credited to savings deposits;
6. savings deposits in the form of individual retirement accounts (IRAs) or Keogh Plan accounts;
7. club accounts, such as Christmas club, vacation
club, or other similar club accounts that meet
the criteria for savings deposits;
8. any funds received by the reporting institution’s
affiliate and later channeled to the reporting
institution by the affiliate in the form of savings
deposits;
9. any deposit or account (a) that otherwise meets
the definition of a time deposit but that allows
withdrawals within the first six days after the
date of deposit and (b) that does not require an
early withdrawal penalty of at least seven days’
simple interest on amounts withdrawn within
those first six days but that is subject to the
minimum notice requirement of a savings
deposit. To meet these criteria, the reporting
institution must expressly reserve the right to
require at least seven days’ written notice before
an intended withdrawal. Otherwise, such a
deposit is a demand deposit, and if the demand
ITEM-5

April 2021

Item Instructions

deposit is due to the public (that is, not due to a
depository institution or the U.S. government),
then report the balance in item A.1;
10. the remaining balance of a time deposit from
which a partial early withdrawal has been made
and the remaining balance is not subject to additional early withdrawal penalties of at least
seven days’ simple interest on amounts withdrawn within six days after each partial withdrawal but that is subject to the minimum notice
requirement of a savings deposit. To meet these
criteria, the reporting institution must expressly
reserve the right to require at least seven days’
written notice before an intended withdrawal.
Otherwise, such a remaining balance is considered a demand deposit, and if the demand
deposit is due to the public (that is, not due to a
depository institution or the U.S. government),
then report the balance in item A.1;
11. brokered deposits that meet the criteria of savings deposits; and
12. the reporting institution’s liability on primary
obligations described in section 1, subsections
F.2.a, b, d, e, f, and g, that are issued in original
maturities of seven days or more to non-exempt
entities that meet the criteria of savings deposits.
Exclude from item A.2
1. all accounts defined as a demand deposit;
2. any accounts that are savings deposits in form
but that the Federal Reserve Board has determined, by rule or order, to be a demand deposit;
3. special passbook or statement accounts, such as
‘‘ninety-day notice accounts,’’ ‘‘golden passbook
accounts,’’ or deposits labeled as ‘‘savings certificates,’’ that have a specified original maturity of
seven days or more;

funds involved are used to cover checks or
drafts. Such funds are reported in item A.1,
Demand Deposits Due to the Public;
7. amounts of outstanding bankers’ acceptances
that are created by the reporting institution and
that are of the type that are ineligible for discount at Federal Reserve Banks. These transactions are reported in item E.1 or item E.1.a; and
8. certain obligations issued by the reporting institution’s nonconsolidated affiliates. These transactions are reported in item E.1 or item E.1.a.
(See section 1, subsection F.3, Primary
Obligations.)

Cash Items in Process of Collection
(Item B.1)
Cash items in process of collection consist primarily of
the reporting institution’s checks or drafts, deposited
by its customers (including other depository institutions), that have been sent for collection through
another entity for which settlement has not occurred
and the funds are not immediately available.
Funds for which the reporting institution is given
immediate credit (that is, the funds are available for
withdrawal by close of business), even if settlement has
not occurred, should be excluded from this item.
Include in item B.1
1. checks or drafts in process of collection that are
drawn on another depository institution, deposited at the reporting institution, that are payable
immediately upon presentation in the United
States, that have been posted to the general ledger, and for which credit has already been given
to the depositor’s account;

5. hypothecated deposits. For purposes of the
FR 2900 report, hypothecated deposits do not
include deposits serving simply as collateral for
loans;

2. checks on hand that will be presented for payment or forwarded for collection on the following business day and that have been posted to
the general ledger. These include cash items that
were not forwarded the day of their deposit for
reasons such as inclement weather, transportation difficulties, or natural disasters;

6. funds deposited to the credit of the reporting
institution’s own trust department where the

3. checks or drafts drawn on the Treasury of the
United States that are in process of collection;

4. interest accrued on savings deposits but not yet
paid or credited to a deposit account;

ITEM-6

April 2021

FR 2900

Item Instructions

4. other items in process of collection that are payable immediately upon presentation in the
United States and that are customarily cleared
or collected by depository institutions as cash
items:
a. matured bonds and coupons (including
bonds and coupons that have been called and
are payable on presentation). U.S. savings
bonds that are cashed by the customer before
maturity are included as cash items in the
process of collection;
b. postal and other money orders and traveler’s
checks being forwarded for collection;
c. share drafts;
d. bank drafts and Federal Reserve drafts;
e. payable-through drafts that have been
received by the reporting institution and that
will be forwarded to (deposited at) another
depository institution for collection;
f. brokers’ security drafts and commodity or
bill of lading drafts (including arrival drafts)
that are payable immediately upon presentation in the United States;
g. amounts credited to deposit accounts in connection with automated payment arrangements where such credits are made one business day before the scheduled payment date
to ensure that funds are available on the payment date;
h. returned items drawn on other depository
institutions;
i. unposted debits; and
j. food coupons and certificates.
Exclude from item B.1
1. items handled as noncash items, whether or not
cleared through Federal Reserve Banks;2
2. items not payable in the United States;
3. items that have been settled when the reporting
institution has received immediately available
funds;

2. Regulation J of the federal regulations defines a ‘‘noncash item’’
as an item that a receiving Reserve Bank classifies in its operating circulars as requiring special handling. The term also means an item normally received as a cash item if a Reserve Bank decides that special conditions require that it handle the item as a noncash item.

FR 2900

4. commodity or bill of lading drafts (including
arrival drafts) not yet payable (because the merchandise against which the draft was drawn has
not yet arrived), whether or not deposit credit
has been given;
5. payable-through drafts received by the reporting
institution, when the reporting institution is acting in the capacity of a clearing agent for a nondepository institution, that have not been collected from that nondepository institution
which is the drawer of the draft;
6. credit card or debit slips in process of collection,
whether or not deposit credit has been given;
7. checks or drafts in process of collection until the
check or draft is credited to a deposit or the
reporting institution’s general ledger;
8. payment errors (see section 1, subsection I,
Treatment of Payment Errors); and
9. returned items drawn on the reporting
institution.

Small Time Deposits (Item C.1)
Report in item C.1 the balance of all time deposits in
the form of both deposits and primary obligations that
are outstanding with a balance less than $100,000 at
the close of business each day. In determining if a time
deposit has a balance less than $100,000, do not combine deposits that are represented by separate certificates or accounts, even if held by the same customer.
Item C.1 covers both personal and nonpersonal time
deposits.
Small time deposits include deposits (including certificates of indebtedness) described in section 1, subsection F.1, and primary obligations described in section 1, subsection F.2, from which the depositor does
not have a right and is not permitted to make withdrawals within six days after the date of deposit unless
the deposit is subject to an early withdrawal penalty of
at least seven days’ simple interest on amounts withdrawn within the first six days after deposit. A small
time deposit from which partial early withdrawals are
permitted must impose additional early withdrawal
penalties of at least seven days’ simple interest on
amounts withdrawn within six days after each partial
withdrawal. If early withdrawal penalties are not
ITEM-7

April 2021

Item Instructions

imposed, the account ceases to be a time deposit. The
account may become a savings deposit if it meets the
requirements for a savings deposit and is reported in
item A.2; otherwise, it becomes a demand deposit. If
the demand deposit is due to the public (that is, not due
to a depository institution or the U.S. government),
then report the balance in item A.1.

Reporting of Deposits Issued on a
Discount Basis
Small time deposits (including certificates of indebtedness) issued on a discount basis should be reported
initially on the basis of the amount of funds actually
received by the reporting institution. For example, if
the reporting institution received $46,000 in exchange
for a certificate of deposit issued at face value of
$50,000, only the $46,000 received at the time of issuance should be reported initially as a time deposit.
However, as the institution’s obligation to the depositor increases over the life of the deposit, representing
interest earned on the deposit, the incremental
amounts as credited to the certificate also should be
reported as time deposits.

Reporting of Brokered Time Deposits
If the reporting institution receives brokered deposits
in the form of time deposits, only that portion of the
deposit in amounts less than $100,000 that is credited
to a single depositor should be included in this item.
For example, if a broker purchases one large certificate
of deposit (CD) for $5 million on behalf of several
depositors, and each of the underlying depositors’
shares in the CD is less than $100,000, the entire
amount of the CD should be included in this item.
However, if any of the underlying depositors have balances of $100,000 or more, that portion of the CD held
by such a depositor or depositors should be excluded
from this item.
If the reporting institution is unable to collect information from a broker on the amounts credited to underlying depositors, then, generally, the entire amount of the
brokered time deposit should be included in this item.
However, in such cases, the reporting institution
should use all available information to determine
whether there is good reason to believe that amounts
credited to underlying depositors are $100,000 or
ITEM-8

April 2021

greater. For example, if the broker deals mainly with
institutional customers, then the value of each underlying share will likely be greater than $100,000, and the
brokered deposit should be excluded from this item.
Include in item C.1 any of the following that have an
outstanding balance less than $100,000:
1. funds that are payable on a specified date not
less than seven days after the date of deposit, or
payable at the expiration of a specified time not
less than seven days after the date of deposit, or
payable only upon written notice that is actually
required to be given by the depositor not less
than seven days before withdrawal;
2. time certificates of deposit (including rollover
certificates of deposit), whether evidenced by
negotiable or nonnegotiable instruments;
3. time deposit open accounts evidenced by written
contracts;
4. club accounts, such as Christmas club, vacation
club, or other similar club accounts that are not
maintained as savings deposits, that are deposited under written contracts providing that no
withdrawal shall be made until a certain number
of periodic deposits have been made during a
period of not less than three months even
though some of the deposits may be made
within six days from the end of the period;
5. savings certificates, notice accounts, and passbooks accounts (but not savings deposits);
6. funds received or held in escrow accounts that
meet the above criteria for a time deposit (also
see section 1, subsection H, Treatment of
Escrow Funds);
7. interest-bearing and non-interest-bearing small
time deposits;
8. individual retirement account (IRA) funds or
Keogh Plan accounts held in the form of time
deposits;
9. time deposits held by an employer as part of an
unfunded deferred compensation plan established pursuant to subtitle D of the Revenue Act
of 1978 (Pub. L. No. 95-600; 92 Stat. 2763);
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Item Instructions

10. time deposits maintained as compensating balances or pledged as collateral for loans;
11. all interest or dividends paid by crediting time
deposit accounts;
12. time deposit accounts at non-U.S. offices of the
reporting institution when the deposit is payable
in the United States or is guaranteed payable at
a U.S. office;
13. the reporting institution’s liability on primary
obligations described in section 1, subsections
F.2.a, b, d, e, f, and g, that are issued in original
maturities of seven days or more to non-exempt
entities;
14. due bills described in section 1, subsection F.2.i,
that are issued to any U.S. or non-U.S. entity in
original maturities of seven days or more;
15. any funds received by the reporting institution’s
affiliate and later channeled to the reporting
institution by the affiliate in the form of a time
deposit;
16. brokered deposits that meet the criteria of time
deposits;
17. all matured time certificates of deposit during the
10-day grace period following maturity, if such a
grace period exists (see 12 C.F.R. § 329.104); and
18. deposit notes and bank notes.
Exclude from item C.1 the following categories of
liabilities even if they have an original maturity of
seven days or more:
1. a liability that meets the definition of a time
deposit but has an outstanding balance of
$100,000 or more;
2. any deposit or account that otherwise meets the
definition of a time deposit but allows withdrawals within the first six days after the date of
deposit and that does not require an early withdrawal penalty of at least seven days’ simple
interest on amounts withdrawn within those
first six days. Such deposits or accounts that
meet the definition of a savings deposit shall be
reported in item A.2; otherwise, they are considered demand deposits. If the demand deposit is
due to the public (that is, not due to a depository
FR 2900

institution or the U.S. government), then report
the balance in item A.1;
3. the remaining balance of a time deposit from
which a partial early withdrawal has been made
and the remaining balance is not subject to additional early withdrawal penalties of at least
seven days’ simple interest on amounts withdrawn within six days after each partial withdrawal. Such time deposits that meet the definition of a savings deposit shall be reported in
item A.2; otherwise, they are considered
demand deposits. If the demand deposit is due
to the public (that is, not due to a depository
institution or the U.S. Government), then report
the balance in item A.1;
4. time deposit accounts maintained in connection
with an arrangement that permits the depositor
to obtain credit directly or indirectly through the
drawing of a negotiable or nonnegotiable check,
draft, order or instruction, or other similar
device (including telephone or electronic order
or instruction) on the issuing institution that can
be used for the purpose of making payments or
transfers to third parties or a deposit account of
the depositor. Such time deposits that meet the
definition of a savings deposit shall be reported
in item A.2; otherwise, they are considered
demand deposits. If the demand deposit is due
to the public (that is, not due to a depository
institution or the U.S. government), then report
the balance in item A.1;
5. any accounts that are time deposits in form but
that the Federal Reserve Board has determined,
by rule or order, to be a transaction account
(report in items A.1 or A.2, as appropriate);
6. all matured time certificates of deposit, after the
grace period following the maturity, if such a
grace period exists;
7. interest accrued on time deposits but not yet
paid or credited to a deposit account;
8. NOW accounts and ATS accounts (report in
item A.2);
9. telephone or preauthorized transfer accounts
that meet the definition of a transaction account
(report in item A.2);
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April 2021

Item Instructions

10. savings deposits (report in item A.2);
11. deposits for which the reporting institution
merely reserves the right to require at least seven
days’ written notice of an intended withdrawal;
12. hypothecated deposits. Please note that for purposes of the FR 2900 report, hypothecated
deposits do not include deposits serving simply
as collateral for loans;
13. funds received and credited to dealer reserve or
dealer differential accounts that the reporting
institution is not obligated to make available to
either the dealer or the dealer’s creditors;
14. funds obtained from state and local housing
authorities under loan-to-lender programs
involving the issuance of tax-exempt bonds and
the subsequent lending of the proceeds to the
reporting institution for housing finance
purposes;
15. repurchase agreements involving obligations of,
or obligations fully guaranteed as to principal
and interest by, the U.S. government or a federal
agency, or the shares of a money market mutual
fund whose portfolio consists wholly of obligations of, or obligations fully guaranteed as to
principal and interest by, the U.S. government or
a federal agency;

21. any liability of a U.S. branch or agency of a foreign (non-U.S.) bank to another U.S. branch or
agency of the same foreign (non-U.S.) bank, or
the liability of the U.S. office of an Edge Act
and agreement corporation to another U.S.
office of the same Edge Act and agreement
corporation.

Vault Cash (Item D.1)
Include in item D.1
1. U.S. currency and coin owned by the reporting
institution (booked as an asset) and held at a
physical location (including the reporting institution’s proprietary ATMs) of the reporting
institution that may, at any time, be used to satisfy depositors’ claims;
2. U.S. currency and coin in transit to a Federal
Reserve Bank for which the reporting institution
has not yet received credit, and in transit from a
Federal Reserve Bank when the reporting institution has already been charged;

16. borrowings from a Federal Reserve Bank or a
Federal Home Loan Bank;

3. U.S. currency and coin in transit to a correspondent institution if the reporting institution’s
account at the correspondent institution has not
yet been credited, and in transit from a correspondent institution if the reporting institution’s account at the correspondent institution
has already been charged;

17. due bills issued to any entity that are collateralized within three business days by securities
similar to the securities purchased (see section 1,
subsection F.2.i, Primary Obligations);

4. U.S. currency and coin held at an alternate
physical location (including the reporting institution’s nonproprietary ATMs) provided that all
of the following conditions are satisfied:

18. any primary obligation, except for due bills,
issued or undertaken to obtain funds, regardless
of the use of the proceeds, when transacted with
the U.S. offices of exempt entities;

a. The reporting institution at all times retains
full rights of ownership in and to the currency and coin held at the alternate physical
location.
b. The reporting institution at all times books
the currency and coin held at the alternate
physical location as an asset.
c. No other depository institution claims the
currency and coin held at the alternate physical location as vault cash.
d. The currency and coin held at the alternate
physical location is reasonably nearby a location of the reporting institution at which its

19. subordinated notes and debentures;
20. amounts of outstanding bankers’ acceptances
that are created by the reporting institution and
that are of the type that are ineligible for discount at Federal Reserve Banks (see section 1,
subsection F.3, Primary Obligations). These
transactions are reported in items E.1 and
E.1.a; and
ITEM-10
April 2021

FR 2900

Item Instructions

depositors may make cash withdrawals. An
alternate physical location is considered
‘‘reasonably nearby’’ if the reporting institution can recall the currency and coin by
10:00 a.m. and, relying solely on ground
transportation, receive the currency and coin
no later than 4:00 p.m. on the same calendar day.
e. The reporting institution has in place a written cash delivery plan, including written contractual arrangements necessary to implement that plan, that demonstrates that the
currency and coin can be recalled and
received at any time in accordance with the
requirements specified in the preceding subbullet D. The reporting institution shall provide copies of the written cash delivery plan
and written contractual arrangements to its
local Federal Reserve Bank upon request.

tion for which credit has been given to the
reporting institution; and
6. checks, drafts, and cash items in process of
collection.

Annual Items
Reservable Liabilities (Item E.1)
Reservable liabilities consist of “Net transaction
accounts” plus “Nonpersonal time deposits” plus
“Ineligible acceptances and obligations issued by affiliates maturing in seven days or more (nonpersonal
only)” plus “Net Eurocurrency liabilities.” These components are defined below. For more information on
how to calculate reservable liabilities, please refer to the
“Worksheet for Preparing Annual Items” on the next
page.

Exclude from item D.1
1. foreign (non-U.S.) currency and coin;

Net Transaction Accounts (Item E.1.a)

2. silver and gold coin and other currency and coin
whose numismatic or bullion value is in excess of
face value;

Net transaction accounts consist of “Total transaction
accounts” plus “Ineligible acceptances and obligations
issued by affiliates maturing in less than seven days”
minus the sum of “Demand balances due from depository institutions in the United States” and “Cash items
in process of collection”. All of these components
except for “Cash items in process of collection” are
defined below. For instructions on what to include as
“Cash items in process of collection,” please refer to
the item-by-item instructions for FR 2900 line
item B.1.

3. U.S. currency and coin that the reporting institution does not have full and unrestricted right
to use, such as coin collections held for safekeeping for customers, currency and coin pledged as
collateral by the reporting institution or by customers, or currency and coin sold under a repurchase agreement or purchased under a resale
agreement;
4. currency and coin held under the custodial
inventory program with the Federal Reserve for
which the reporting institution has received
credit;
5. cash shipped by the reporting institution to a
Federal Reserve Bank or correspondent institu-

FR 2900

Note: When calculating item E.1.a, Net transaction
accounts, your result could be negative. Please indicate
a negative result with a minus sign or parentheses
around the negative amount. For more information on
how to calculate net transaction accounts, please refer
to the “Worksheet for Preparing Annual Items” on the
next page.

ITEM-11
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Item Instructions

Worksheet for Preparing Annual Items
This worksheet is provided to assist reporting institutions in calculating Reservable Liabilities (E.1) and Net Transaction Accounts (E.1.a). Reporting institutions are not required to submit this worksheet to the Federal Reserve
Bank. Other methods may be used to compile these data. Terms referenced in the worksheet are defined below
(except “Cash items in process of collection,” defined earlier in the item-by-item instructions for FR 2900 line
item B.1).
Item

Balance as of
June 30 in
thousands of
U.S. dollars

Net Transaction Accounts (E.1.a)
1

Enter Demand deposits, including primary obligations in the form of demand deposits.

2

Enter NOW accounts, ATS accounts and telephone preauthorized transfers, and Savings deposits.

3

Enter Ineligible acceptances and obligation issued by affiliates maturing in less than 7 days (if applicable).

4

Calculate Total transaction accounts: sum lines 1, 2, and 3.

5

Enter Demand balances due from depository institutions in the United States

6

Enter Cash items in process of collection.

7

Calculate Net transaction accounts: line 4 minus the sum of lines 5 and 6. Enter line 7 on item E.1.a of the
FR 2900 reporting form. (Net transaction accounts may be negative.)

Reservable Liabilities (E.1)
8

Enter Net transaction accounts (amount from line 7 of this worksheet).

9

Enter Nonpersonal time deposits, including primary obligations in the form of time deposits.

10

Enter Ineligible acceptances and obligations issued by affiliates maturing in seven days or more (nonpersonal
only) (if applicable).

11

Enter Net Eurocurrency liabilities (if applicable).

12

Calculate Reservable Liabilities: sum lines 8, 9, 10 and 11. Enter line 12 on item E.1 of the FR 2900 reporting form. (Reservable liabilities may be negative.)

Worksheet Line 4:
Total Transaction Accounts (Sum of lines
1, 2, and 3)
With exceptions noted below, transaction accounts are
defined as deposits or accounts from which the depositor or account holder is permitted to make transfers or
withdrawals by negotiable or transferable instruments,
payment orders of withdrawal, telephone transfers, or
ITEM-12
June 2023

other similar devices for the purpose of making payments or transfers to third persons or others or from
which the depositor may make third party payments at
an automated teller machine (ATM) or a remote service unit (RSU), or other electronic device, including
by debit card.
Transaction accounts consist of the following types of
deposits:
• demand deposits (defined in detail below);
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Item Instructions

• negotiable order of withdrawal (NOW) accounts (as
defined in FR 2900 line item A.2);
• automatic transfer service (ATS) accounts (as
defined in FR 2900 line item A.2);
• telephone and preauthorized transfer accounts (as
defined in FR 2900 line item A.2); and
• savings deposits (as defined in FR 2900 line item A.2).
Demand deposits are deposits that are payable immediately on demand, or that are issued with an original
maturity or required notice period of less than seven
days, or that represent funds for which the reporting
institution does not reserve the right to require at least
seven days’ written notice of an intended withdrawal.
For purposes of this report, demand deposits include
the accounts listed below:
1. Checking accounts, non-interest-bearing negotiable order of withdrawal (NINOW) accounts,
and payment order of withdrawal (POW)
accounts. Demand deposits do not include
NOW accounts, share draft accounts, ATS
accounts, or MMDAs; and
2. Cashier’s checks, certified checks, teller’s checks,
money orders, and other officer’s checks issued
for any purpose, including those issued in payment for services, dividends, or purchases that
are drawn on the reporting institution by any of
its duly authorized officers and that are outstanding on the report date.3
This includes
a. those drawn by the reporting institution on
itself and not payable at or through another
depository institution.
b. those drawn by the reporting institution and
drawn on, or payable at or through, another
depository institution on a zero-balance
account or an account that is not routinely
3. A teller’s check is a check or draft drawn by a depository institution on another depository institution, a Federal Reserve Bank, or a
Federal Home Loan Bank, or payable at or through a depository institution, Federal Reserve Bank, or a Federal Home Loan Bank. Teller’s
checks do not include checks or drafts sold by a bank acting in an
agency capacity where that capacity is clearly stated on the face of the
check or checks or drafts drawn without recourse where permitted by
state law.

FR 2900

maintained with sufficient balances to cover
checks drawn in the normal course of business (including accounts where funds are
remitted by the reporting institution only
when it has been advised that the checks or
drafts have been presented).
Those checks drawn by the reporting institution on a deposit account at another depository institution which the reporting institution routinely maintains with sufficient balances to cover checks or drafts drawn in the
normal course of business should be
recorded directly as a reduction in demand
balances due from depository institutions in
the United States; and
c. those checks drawn by the reporting institution on, or payable at or through, a Federal
Reserve Bank or a Federal Home Loan Bank.
3. funds received or held in connection with traveler’s checks and money orders sold (but not
drawn) by the reporting institution, until the
proceeds of the sale are remitted to another
party;
This also includes other funds received or held in
connection with any other checks used (but not
drawn) by the reporting institution, until the
amount of the checks is remitted to another
party;
4. funds received or held in connection with letters
of credit sold to customers;
5. unposted credits;
6. taxes, insurance premiums or other funds withheld from the salaries of employees of the
reporting institution;
7. funds received or held in escrow or trust
accounts that may be withdrawn on demand or
within six days from the date of deposit;
8. credit balances that meet the definition of
demand deposits;
9. demand deposits of U.S. government agencies
and instrumentalities and of state and local
governments.
Demand deposits also include liabilities referred
to as “primary obligations” that are described
ITEM-13
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Item Instructions

earlier in the General Instructions section under
the definition of “deposits,” and that are issued
in original maturities of less than seven days or
payable with less than seven days’ notice.
Ineligible acceptances and obligation issued by affiliates
maturing in less than seven days
Please note that this item is applicable only to those
reporting institutions that have such obligations. If the
reporting institution does not have such obligations,
please skip this item; otherwise follow the instructions
below.
Report the amounts of funds obtained through the
issuance of obligations by affiliates and of funds
obtained through the use of ineligible acceptances
(except those sold to and held by exempt entities) both
of which mature in less than seven days. Exclude from
this item all ineligible acceptances of the reporting
institution sold to, and known to be held by, a non-U.S.
office of another depository institution or of an Edge
Act and agreement corporation; such ineligible acceptances should be included as ineligible acceptances and
obligations issued by affiliates maturing in seven days
or more, discussed below.
For more information on ineligible acceptances and
obligations issued by affiliates please see the section
entitled “Notes on Ineligible Acceptances and Obligations Issued by Affiliates.”

Worksheet Line 5:
Balances Due from Depository
Institutions in the United States
Include all balances of deposits subject to immediate
withdrawal by the reporting institution that are due
from U.S. offices of the following institutions located
in the United States:
1. Commercial or industrial banks and trust companies conducting a commercial banking
business.
2. Bankers’ banks as defined in 12 C.F.R.
§204.121.
3. Banking Edge Act and agreement corporations.
4. U.S. branches and agencies of foreign (nonU.S.) banks.
ITEM-14
June 2022

5. Mutual or stock savings banks.
6. Building, savings and loan, and homestead associations, or cooperative banks.
7. Credit unions (including corporate central credit
unions).
Exclude from demand balances due from depository
institutions in the United States the following items:
1. All balances due from Federal Reserve Banks.
2. Balances due from other depository institutions
that are pledged by the reporting institution.
3. Time and savings deposit balances held at other
depository institutions.
4. Trust funds deposited in other depository institutions by the reporting institution’s trust
department.
5. Federal funds sold to other depository
institutions.
6. All balances due from any non-U.S. office of a
U.S. depository institution; any non-U.S. office
of a foreign bank; trust companies that do not
conduct a commercial banking business; New
York State investment companies (chartered
under Article XII of the New York State Banking Code) that perform a banking business and
that are majority-owned by one or more nonU.S. banks; private banks; Federal Home Loan
Banks; and NCUA Central Liquidity Facility.

Worksheet Line 9:
Total Nonpersonal Time Deposits
Nonpersonal time deposits are deposits that are transferable or in which any beneficial interest is held by a
depositor other than a natural person, regardless of
denomination or maturity. A natural person is an individual or a sole proprietorship. A natural person is not
a corporation, even if owned by an individual, a partnership, or other association.
Include as nonpersonal time deposits
1. time deposits that represent funds deposited to
the credit of, or in which any beneficial interest
is held by, a depositor that is not a natural person, other than a deposit to the credit of a
FR 2900

Item Instructions

trustee or other fiduciary if the entire beneficial
interest in the deposit is held by a natural person
or persons; and
2. time deposits that are transferable, whether or
not the entire beneficial interest is held by natural persons. A deposit is transferable unless it
includes on the face of a document evidencing
the account a statement that the deposit is not
transferable or that it is transferable on the
books of, or with the permission of, the reporting institution.

and records of the broker and not on the books and
records of the reporting institution itself. Transferable
brokered deposits in the form of time deposits are
regarded as nonpersonal time deposits unless they are
(1) deposited to the credit of, and the entire beneficial
interest is held by, natural persons and (2) subject to an
agreement between the broker and the reporting institution that includes all of the following essential terms:
1. The broker will maintain records of the names
of the beneficial owners of all brokered deposits,
and such records will be made available to any
agency regulating the reporting institution.

Exclude from nonpersonal time deposits
All personal time deposits that are not transferable and
that represent funds in which the entire beneficial interest is held by a depositor who is a natural person.
Examples are as follows:
1. individual retirement accounts (IRAs), Keogh
Plan accounts, and accounts held by an
employer as part of an unfunded deferred compensation plan established pursuant to
Subtitle D of the Revenue Act of 1978 (Public
L. No. 95-600; 92 Stat. 2763) in the form of time
deposits. A nontransferable deposit that is an
asset of a pension fund normally would be
regarded as a personal deposit, as the entire beneficial interest in such funds normally is held by
natural persons;
2. escrow accounts, such as funds held for tax or
insurance payments, if the depositor is a natural
person;
3. trust funds held in the name of a trustee or other
fiduciary, whether or not a natural person, if the
entire beneficial interest is held by natural persons; and
4. club accounts, in the form of a time deposit and
held by natural persons, such as Christmas club,
vacation club, and similar club accounts.

2. The broker will determine the amount of deposits beneficially owned by natural persons and by
entities other than natural persons and will provide a written report to the reporting institution
with that information. That written report must
(1) be submitted on the close of business every
Monday or on the opening of business Tuesday
for the one-week period beginning on the previous Tuesday and ending on Monday, (2) include
daily data on the actual amount of personal
time deposits and the actual amount of nonpersonal time deposits, and (3) include daily data
on the amount of deposits in which the beneficial interest of any one depositor in principal
plus interest exceeds $100,000. (For this purpose, separate deposits or accounts are not
aggregated even if held by the same customer.)
3. The reporting institution has access to records
concerning the deposits brokered for it, and
those records should either be delivered to the
offices of the reporting institution or, where
appropriate, its federal or state regulator, or
access to the records must be provided to the
reporting institution and its supervisory authority on the broker’s premises.
4. The broker will commit to provide the reporting
institution with any other data about the brokered deposits that may be needed in the future
by the institution’s state or federal regulator.

If a broker provides a secondary market in these
deposits, as is usually the case, such deposits are transferable even if they are transferable only on the books
FR 2900

ITEM-15
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Item Instructions

Worksheet Line 10:
Ineligible Acceptances and Obligations
Issued by Affiliates Maturing in Seven
Days or More (Nonpersonal Only)
Please note that this item is applicable only to those
reporting institutions that have such obligations. If the
reporting institution does not have such obligations,
please skip this item; otherwise, follow the instructions
below.
Report the amounts of funds obtained through the
issuance of obligations by affiliates and of funds
obtained through the use of ineligible acceptances
(except those sold to and held by exempt entities), both
of which mature in seven days or more. Also include all
ineligible acceptances of the reporting institution
known to be held by a non-U.S. office of another
depository institution or of an Edge Act and agreement corporation. Include
1. funds in which any beneficial interest is held by a
depositor who is not a natural person, other
than a deposit to the credit of a trustee or other
fiduciary if the entire beneficial interest in the
deposit is held by a natural person;
2. an obligation that is transferable, except an obligation issued to and held by a natural person; and
3. an obligation that is issued to and held by a
natural person that does not contain on its face
a statement that it is not transferable.
For more information on ineligible acceptances and
obligations issued by affiliates please see the section
entitled “Notes on Ineligible Acceptances and Obligations Issued by Affiliates” below.
Notes on ineligible acceptances and obligations issued by
affiliates
The following transactions should be included as ineligible acceptances and obligations issued by affiliates:
1. Amounts of ineligible acceptances (including
finance bills): Report the dollar amounts of
ineligible acceptances (those that are not eligible
for discount by Federal Reserve Banks—see
paragraph 7 of section 13 of the Federal Reserve
Act). Some ineligible acceptances are referred to
ITEM-16
June 2022

as finance bills or ‘‘Working Capital Acceptances.’’ For ineligible acceptances, report only
those outstanding ineligible acceptances that
resulted in funds being obtained by the reporting institution (or its majority-owned subsidiary) through the creation, discount, and subsequent sale of the acceptance by the reporting
institution (or its majority-owned subsidiary),
except those sold to and held by exempt entities.
The amounts to be reported are acceptances created. For ineligible acceptances, report the
amounts outstanding of all ineligible acceptances, except those sold to and held by exempt
entities. For outstanding ineligible acceptances
that resulted in funds being obtained by the
reporting institution (or its majority-owned subsidiaries), except those sold to and held by
exempt entities, report the dollar amounts of
funds received. For all other ineligible acceptances (those that did not result in funds being
obtained by the reporting institution or its
majority-owned subsidiaries), report the face
amounts of the ineligible acceptances created.
2. Amounts of funds obtained through obligations
issued by nonconsolidated affiliates: Report the
dollar amounts of the funds obtained by the
reporting institution (or its majority-owned subsidiaries) when its nonconsolidated affiliates use
the proceeds of the obligations that they issue to
supply or maintain the availability of funds to
the reporting institution. Such obligations may
be in the form of promissory notes (including
commercial paper), acknowledgments of
advance, due bills, or similar obligations (written or oral). However, such obligations should
be reported only to the extent that they would
have constituted ‘‘deposits’’ as described in section 1, subsection F.1, or primary obligations as
described in section 1, subsection F.3, had they
been issued directly by the reporting institution.
Due bills issued by the reporting institution’s affiliates
are reservable deposits, without regard to the purpose
of the due bills or the party to whom they were issued,
unless collateralized within three business days from
the date of issuance by a security similar to the security
purchased from the customer of the reporting institution’s affiliates. The dollar amounts of due bills that
are not so collateralized are to be reported by original
FR 2900

Item Instructions

maturity and beneficial holder in the appropriate line
item or schedule.
Exclude as ineligible acceptances and obligations any
funds obtained by the reporting institution through
obligations issued by affiliates and deposited at the
reporting institution in the form of transaction
accounts or time deposits. Such funds should be
reported as transaction accounts, or time deposits, as
appropriate.

Determining maturities
For ineligible acceptances that were created, discounted, and sold by the reporting institution (or its
majority-owned subsidiary), the maturities to be
reported as ineligible acceptances and obligations are
the remaining maturities of the obligations at the time
the proceeds are supplied to the reporting institution.
For acceptances that were not discounted and sold by
the reporting institution (or its majority-owned subsidiaries), the maturity to be reported is the original term
of the instrument. Balances should be classified based
on the maturity category initially reported and not the
remaining maturity on the report date.
If the affiliate’s obligation is determined to be a
deposit or primary obligation and reportable as an
ineligible acceptance , then the appropriate maturity
category is determined by the shorter of (1) the maturity of the affiliate’s obligation or (2) the maturity of
the obligation issued by the reporting institution to the
affiliate or, in the case of assets purchased from the
reporting institution, the remaining maturity of the
assets purchased.

Affiliate’s obligation

Funds received by
the reporting
institution in the
form of a deposit
or a primary
obligation

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

1. Affiliate’s obligation would have
been a deposit or a
primary obligation
if issued by the
reporting
institution.
2. Affiliate’s obligation would not
have been a deposit
or a primary obligation if issued by
the reporting
institution.

To be reported as a
transaction
account or nonpersonal time deposit,
as appropriate.
(See example 1
below.)
To be reported as a
transaction
account or nonpersonal time deposit,
as appropriate.
(See example 3
below.)

To be reported as
ineligible acceptances
and obligations as
appropriate.
(See example 2
below.)
To be excluded from
reporting.
(See example 4
below.)

Example 1:
The nondepository affiliate issues commercial paper
with a maturity of six months to a nonfinancial corporation and immediately supplies the proceeds to the
reporting institution by buying from the reporting
institution a time certificate of deposit (CD) with an
original maturity of one year. Although both the nondepository affiliate’s and the reporting institution’s
obligations are reservable liabilities, reserve requirements are not imposed on both obligations. In this
case, reserve requirements would be imposed on the
amount of funds supplied to the reporting institution
(that is, the dollar amount of the CD). Maturity is
determined by the shorter of the maturity of the nondepository affiliate’s commercial paper or the maturity
of the reporting institution’s CD. In this example, the
reservable obligation would be a nonpersonal time
deposit with a six-month maturity. The funds received
by the reporting institution would be reported as Nonpersonal time deposits.

Example 2:

Classifying an affiliate’s obligation
The following chart summarizes the conditions under
which the proceeds from the issuance of an obligation
by an affiliate would be a deposit or a primary obligation and indicates the appropriate section of the
FR 2900 in which the funds should be reported:
FR 2900

The nondepository affiliate issues an unsecured due
bill to a non-exempt entity with a maturity of three
months and supplies the proceeds to the reporting
institution when the due bill has a remaining maturity
of two months. The nondepository affiliate supplies
the proceeds of the due bill to the reporting institution
by purchasing from the reporting institution assets
maturing in one month. The nondepository affiliate’s
ITEM-17
April 2021

Item Instructions

obligation is reservable, but the sale of the assets by the
reporting institution to the nondepository affiliate is
not. The reporting institution must hold reserves on
the transaction because the nondepository affiliate’s
obligation is subject to reserve requirements. The
maturity category is determined by the remaining
maturity of the assets sold by the reporting institution
to the nondepository affiliate (one month), which is
shorter than the remaining maturity of the due bill
(two months). In this example, the reserve requirement
would be on the nondepository affiliate’s due bill (a
primary obligation), and the appropriate maturity
would be one month, which is the remaining maturity
of the assets purchased. The funds received by the
reporting institution should be reported as Ineligible
acceptances and obligations issued by affiliates maturing
in seven days or more.

liabilities. For purposes of the FR 2900 report the term
non-U.S. offices excludes nonbanking offices of any
depository institution, affiliate or subsidiary.

Preparation of main worksheet Line 10, net
Eurocurrency liabilities, for U.S. branches
and agencies of foreign (non-U.S.) banks
This worksheet is provided to assist the reporting institution in calculating net Eurocurrency liabilities, a
component of item E.1., Reservable Liabilities. This
worksheet should not be submitted to the Federal
Reserve.
Item

Example 3:
The nondepository affiliate sells commercial paper
with a maturity of three months to a commercial bank
and supplies the proceeds to the reporting institution
by depositing such funds in the reporting institution in
a demand deposit account. The nondepository affiliate’s sale of commercial paper to a commercial bank is
not subject to reserve requirements, but the demand
deposit account is. Thus, the reporting institution
would hold reserves on the demand deposit account as
a transaction account.

Example 4:
The nondepository affiliate sells U.S. government securities under an agreement to repurchase and uses the
proceeds to purchase assets from the reporting institution. Neither the sale of the U.S. government securities
under an agreement to repurchase nor the purchase of
assets is subject to reserve requirements. Thus, the
reporting institution would not hold reserves against
this transaction. The funds received by the reporting
institution should be excluded entirely from the
FR 2900.

Worksheet Line 11:
Net Eurocurrency Liabilities
Please follow the instructions below to calculate your
institution’s June 30 balance for net Eurocurrency
ITEM-18
June 2022

Item 1: Gross Borrowings from NonU.S. Offices of Other Depository
Institutions and from Certain Designated Non-U.S. Entities
Item 2: Gross Liabilities to Non-U.S.
Parent Bank and its Non-U.S. Offices
plus Net Liabilities to Own IBF*
Item 3: Gross Claims on Non-U.S. Parent Bank and its Non-U.S. Offices
plus Net Claims on Own IBF*
Item 4: Total Assets minus Certain
Assets and Positive Net Balances Due
from Own IBF and Parent Bank’s
U.S. and Non-U.S. Offices
Item 5: Assets Held by Own IBF and
Certain Related Non-U.S. Institutions Acquired from U.S. Offices

Balance as
of June 30
in thousands
of U.S.
dollars

Example

4,000

2,000

8,000

3,000

1,000

* Include only a single net position in worksheet item 2 or 3 that
represents the reporting institution’s net due from/due to position
with the reporting institution’s own international banking facility
(IBF). Refer to the detailed FR 2900 instructions to determine this
amount. Under no circumstances should an amount be included in
both worksheet items 2 and 3 that represents the reporting institution’s net position with its own IBF.

Calculate the reporting institution’s net Eurocurrency
liabilities using the formula below.
Net Eurocurrency Liabilities =
[(Item 2 + Item 5 - Item 3) –(Item 4)x(0.08)]* + Item 1.
* If the result of the calculation enclosed within the
brackets is negative, that result is set to zero before proceeding with the rest of the equation.
FR 2900

Item Instructions

In the example above, Net Eurocurrency Liabilities is
equal to 4,000, as shown below:
$4,000 = [(2,000 + 1,000 - 8,000) - 240] + 4,000.

Gross borrowings from non-U.S. offices of
other depository institutions and from
certain designated non-U.S. entities (item 1)
Enter in this item all outstanding borrowings by the
reporting institution that were obtained from
1. non-U.S. banking offices of other U.S. and nonU.S. depository institutions (except the reporting institution’s non-U.S. parent bank and its
non-U.S. branches and agencies), including
a. a non-U.S. holding company if the holding
company is a bank;
b. a banking subsidiary of a non-U.S. holding
company regardless of whether the holding
company is a bank;
c. a non-U.S. bank’s non-U.S. banking subsidiary; and
d. a non-U.S. branch of (1) a U.S. depository
institution and (2) an Edge Act and agreement corporation;
2. foreign (non-U.S.) national governments and
foreign (non-U.S.) official banking institutions; and
3. international institutions.
All borrowings are to be reported on a gross basis.
Borrowings from non-U.S. banking offices of other
banks should be included in this item regardless of the
terminology used to describe such borrowings, including transactions that are referred to as ‘‘federal funds.’’
Include in Item 1 as borrowings
1. obligations such as promissory notes, acknowledgments of advance, or similar obligations
(including the proceeds from loan strips);
2. due bills or similar obligations that remain
uncollateralized after three business days; and
3. overdrawn balances at non-U.S. offices of other
banks.
FR 2900

Exclude from worksheet Item 1
1. any liability of the international banking facility
(IBF); or
2. any liability actually in the form of, and
recorded on the books of the reporting institution as, a demand deposit, savings deposit, or
time deposit (including certificates of
deposit); or
3. assets of the reporting institution that represent
obligations fully guaranteed as to principal and
interest by the U.S. government or a federal
agency, sold under an agreement to repurchase.

Gross liabilities to non-U.S. parent bank
and its non-U.S. offices plus net liabilities
to own IBF (item 2)
Enter in this item the outstanding balance at the close
of business each day of gross liabilities of the reporting
institution to the foreign (non-U.S.) parent bank and
its non-U.S. branches and agencies. The net position of
the establishing entity with its international banking
facility (IBF) should be included in this item only if it
is a net ‘‘due to.’’ (The instructions for the calculation
of the reporting institution’s net position with its own
IBF are shown following the detailed instructions for
worksheet Item 3.) All liabilities due to the non-U.S.
parent bank and its non-U.S. offices should be
reported gross and not netted against claims. (Claims
are reported gross in worksheet item 3.) Exclude from
this item any liabilities to non-U.S. subsidiaries or nonU.S. affiliates owned by the foreign (non-U.S.) parent
bank or its holding company. These liabilities include,
among other items,
1. funds placed on deposit at the reporting institution by the non-U.S. parent bank or its non-U.S.
branches and agencies, whether in the form of
demand or time deposits or credit balances;
2. borrowings by the reporting institution from the
foreign (non-U.S.) parent bank or its non-U.S.
branches and agencies;
3. obligations of the reporting institution resulting
from purchases of assets from the foreign (nonU.S.) parent bank or its non-U.S. branches and
agencies;
ITEM-19
April 2021

Item Instructions

4. assets (other than U.S. government or federal
agency securities) sold under agreements to
repurchase by the reporting institution to the
foreign (non-U.S.) parent bank or to its nonU.S. branches;
5. checks or drafts drawn by or on behalf of the
reporting institution on accounts maintained at
the foreign (non-U.S.) parent bank or its nonU.S. branches and agencies that give rise to an
obligation of the reporting institution;
6. funds that are advanced by the foreign (nonU.S.) parent bank that are regarded as capital
contributions to the reporting institution,
adjusted as described below:
a. Unremitted profits (losses). Remitted earnings resulting from the posting of operating
results should be added to the reporting
institution’s capital contribution. If an unremitted loss is incurred by the reporting institution, this amount should be subtracted
from the capital contribution. (If the loss
exceeds the capital contribution, excess
between the amount of the loss and that of
the capital account is reported in worksheet
item 3). Note that accrued income and
expenses are not to be included in this calculation until posted to the reporting institution’s net income accounts.
b. Provision for loan loss. The capital contribution should be reduced by any provision for
loan loss amount maintained as a separate
expense account at the office level.
7. overdrawn balances in deposit accounts of the
reporting institution held in the foreign (nonU.S.) parent bank or its non-U.S. branches and
agencies; and
8. other liabilities to the foreign (non-U.S.) parent
bank and its non-U.S. branches and agencies,
such as those resulting from clearing activities,
payments related to foreign exchange transactions, bankers acceptance transactions, and
other activities.
In addition, include in this item the reporting institution’s net liabilities, if any, to its own IBF. For calculation of this amount, please see the section below
ITEM-20
April 2021

entitled “Calculation of net due to/due from own
IBF”.

Gross claims on non-U.S. parent bank and
its non-U.S. offices plus net claims on own
IBF (item 3)
Enter in this item the outstanding balance at the close
of business each day of gross claims of the reporting
institution on the non-U.S. parent bank and its nonU.S. branches and agencies. The net position of the
establishing entity with its international banking facility (IBF) should also be entered in this line if it is a net
‘‘due from.’’ (See instructions below for the calculation
of the reporting institution’s net position with its IBF.)
All claims of the reporting institution on the foreign
(non-U.S.) parent bank and its non-U.S. offices should
be reported gross and not netted against liabilities.
(Liabilities are reported gross in worksheet item 2).
Exclude from this item any claims on non-U.S. subsidiaries or non-U.S. affiliates owned by the foreign (nonU.S.) parent bank or its holding company. These
claims include, among other items,
1. funds placed on deposit at the non-U.S. parent
bank or its non-U.S. branches and agencies by
the reporting institution, whether in the form of
demand or time deposits or credit balances;
2. funds advanced by the reporting institution to
the non-U.S. parent bank and its non-U.S.
branches and agencies;
3. obligations of the non-U.S. parent bank or its
non-U.S. branches and agencies to the reporting
institution resulting from sales of assets (including sales of participations in assets);
4. assets (other than U.S. government or federal
agency securities) purchased under agreements
to resell by the reporting institution from its
non-U.S. branches and agencies;
5. overdrawn balances in deposit accounts held by
the non-U.S. parent bank or its non-U.S.
branches and agencies at the reporting
institution;
6. other claims on the non-U.S. parent bank and
its non-U.S. branches and agencies, such as
those resulting from clearing activities, foreign
FR 2900

Item Instructions

exchange transactions, bankers’ acceptance
transactions, and other activities; and
7. unremitted loss that is the sum of (1) any net
operating loss in excess of the foreign bank’s
capital contribution, (2) any unallocated portion
of the general loan loss account, and (3) any
other allowance amount set aside for possible
loan losses.
In addition, include in this item the reporting institution’s net claims, if any, on its own IBF. For calculation
of this amount, please see the subsection entitled ‘‘Calculation of net due to/due from own IBF,’’ which
appears immediately below.

Calculation of net due to/due from own IBF
To determine whether the reporting institution has net
liabilities due to the reporting institution’s own international banking facility (IBF) to be entered in Item 2,
or net claims on the reporting institution’s own IBF to
be entered in Item 3, it is necessary to perform the following calculations using the asset and liability
accounts of the reporting institution’s own IBF:
1. Compute IBF liabilities to parties other than
U.S. offices of the establishing entity minus IBF
assets due from parties other than U.S. offices of
the establishing entity.
2. If the difference calculated in (1) is positive, it
represents, on the books of the IBF, net balances
due from U.S. offices of the establishing entity.
For purposes of the FR 2900 report, it represents the establishing entity’s net liabilities due
to its own IBF and should be included in Item 2.
3. If the difference calculated in (1) is negative, its
absolute value represents, on the books of the
IBF, net balances due to U.S. offices of the
establishing entity. For purposes of the
FR 2900 report, its absolute value represents the
establishing entity’s net claims on its own IBF
and should be included in Item 3.

Total assets minus certain assets and
positive net balances due from own IBF
and parent bank’s U.S. and non-U.S.
offices (item 4)
Enter in this item the amount outstanding of total
assets held by the reporting institution less the specific
FR 2900

assets listed below and net balances due from its own
international banking facility (IBF) and the foreign
(non-U.S.) parent bank’s U.S. and non-U.S. offices.
Total assets in worksheet item 4 is calculated in the
same manner as on the Report of Assets and Liabilities
of U.S. Branches and Agencies of Foreign Banks
(FFIEC 002). The net due from related parties is calculated as one category, which is then excluded from the
amount of total assets in worksheet item 4.
The accounting in worksheet item 4 closely follows the
instructions for preparing the FFIEC 002 report,
except for the fact that the beginning amount of total
assets in worksheet item 4 will differ from total assets
on the FFIEC 002.
Total assets as defined should then be reduced by:
1. cash items in process of collection and unposted
debits (from item B.1 of the FR 2900 report);
2. demand balances due from depository institutions located in the United States;
3. demand balances due from non-U.S. offices of
U.S. depository institutions and of other nonU.S. banks; and
4. balances due from foreign (non-U.S.) official
banking institutions. Please note that balances
due from these entities include all deposits
regardless of maturity (for example, certificates
of deposit, credit balances, and eurocurrency
placements). However, ‘‘due from’’ balances
exclude term loans, federal funds sold, and
repurchase agreements.

Assets held by own IBF and certain related
non-U.S. institutions acquired from U.S.
offices (item 5)
Enter in this item the amount outstanding of funds
received by the reporting institution for assets that are
held by the following institutions:
1. the reporting institution’s non-U.S. parent bank
(including non-U.S. branches and agencies of
the parent bank);
2. the reporting institution’s non-U.S. parent holding company;
ITEM-21
April 2021

Item Instructions

3. the reporting institution’s non-U.S. offices or an
IBF of an affiliated Edge Act and agreement
corporation; and
4. the reporting institution’s own IBF.
The amount entered here includes assets that are
claims on both U.S. and non-U.S. residents.

1. loans and securities acquired and still held by
the related non-U.S. institutions listed
above; and
2. participations in loans and other assets acquired
by the related non-U.S. institutions listed above.
Exclude from this item any asset that was required to
be sold by federal or state supervisory authorities or
assets sold under agreements to repurchase that are
reported in worksheet Item 2.

Include such assets as

ITEM-22
April 2021

FR 2900

Glossary

This section provides definitions for terms in sections 1
and 2. These definitions are used for purposes of the
FR 2900. They may differ from definitions that appear
in other rules, regulations, statutes, or reports.

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

ATS (Automatic transfer service) account
A deposit or account authorized by the last sentence of
12 U.S.C. § 371a and consisting only of funds (1) in
which the entire beneficial interest is held by one or
more individuals, (2) on which the depository institution has reserved the right to require at least seven
days’ written notice prior to withdrawal or transfer of
any funds in the account, and (3) from which, pursuant
to prior written agreement between the institution and
the depositor, withdrawals may be made automatically
through payment to the depository institution itself or
through transfer of credit to a demand deposit or other
account in connection with checks or drafts drawn
upon the institution or to maintain a specified balance
in, or to make periodic transfers to, such other
accounts.
An ATS account is a transaction account.
FR 2900

Bankers’ acceptance
A draft or bill of exchange usually drawn under a letter
of credit issued by the reporting institution to a customer and ‘‘accepted’’ by the reporting institution
(that is, the reporting institution assumes an obligation
to make payment at maturity). Generally, a bankers’
acceptance is eligible for discount by a Federal Reserve
Bank if it is used to finance the export or import of
goods, the domestic shipment of goods, and the foreign or domestic storage of goods and if it has a
remaining maturity of 180 days or less. Bankers’ acceptances used to finance dollar exchange are also eligible
for discount by a Federal Reserve Bank if the remaining maturity is three months or less. Bankers’ acceptances issued for other purposes, such as finance bills
and working capital acceptances, are ineligible for discount at Federal Reserve Banks. (See 12 U.S.C. § 372.)

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

April 2021

Glossary

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

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

Bank note
A debt security issued by a depository institution with
the term “Bank Note” included on the instrument.

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

Branches and agencies of foreign (non-U.S.)
banks
See U.S. branches and agencies of foreign (non-U.S.)
banks.

Brokered deposits
Funds in the form of deposits that a depository institution receives from brokers or dealers on behalf of indiGL-2

April 2021

vidual depositors. For details on reporting, see section
on item C.1, Small Time Deposits, or item E.1, Reservable Liabilities.

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

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

Certificates of indebtedness
Unsecured promissory notes that represent borrowings
by a depository institution.

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

Commodity or bill of lading draft
A draft that is issued in connection with the shipment
of goods. If the commodity or bill of lading draft
becomes payable only when the shipment of goods
against which it is payable arrives, it is an arrival draft.
FR 2900

Glossary

Arrival drafts are usually forwarded by the shipper to
the collecting depository institution with instructions
to release the shipping documents (for example, a bill
of lading) conveying title to the goods only upon payment of the draft. Payment, however, cannot be
demanded until the goods have arrived at the drawee’s
destination. Arrival drafts provide a means of ensuring
payment of shipped goods at the time that the goods
are released.

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

Custodial inventory program
Pursuant to the Federal Reserve Currency Recirculation Policy, the Federal Reserve Banks have created a
Custodial Inventory Program to help offset the opportunity costs associated with holding additional currency in reporting institutions’ vaults to facilitate its
recirculation. By participating in this program, the
reporting institution will be allowed to transfer currency to the Federal Reserve Bank’s books but will
continue to physically hold the currency within its
secured facility.
For more information about the policy, please visit
https://www.frbservices.org/resources/financialservices/cash/currency-recirculation-policy/custodialinventory-program.html.

Dealer reserve or dealer differential account
An account that arises when a merchant or dealer
(such as a home-improvement contractor, auto dealer,
or mobile-home dealer) enters into an arrangement
with the reporting institution to furnish the dealer with
financing of installment loans by selling the loans to
the reporting institution at a discount. The proceeds of
the sale that the dealer receives from the institution
represent only a portion (such as 90 percent) of the
amount due on the installment loans. Typical accountFR 2900

ing entries by the reporting institution are a debit to
“loans” for the principal amount due on the loans purchased, a credit to the dealer’s “demand deposit”
account for 90 percent of the amount, and a credit to a
“dealer reserve” or a “dealer differential” account for
the remaining 10 percent. Because the dealer does not
have access to the funds credited to the reporting institution’s dealer reserve or differential account and may
not make withdrawals from the account, no deposit
liability arises until such time as the reporting institution becomes liable to the dealer for any portion of the
funds.

Demand deposit
A deposit described in section 1, subsection F.1, or a
primary obligation described in section 1, subsection
F.3, that is payable immediately on demand, or that is
issued with an original maturity or required notice
period of less than seven days, or that represents funds
for which the depository institution does not reserve
the right to require at least seven days’ written notice of
an intended withdrawal.
A demand deposit is a transaction account.

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

Depository institution
Any of the following institutions that are empowered
to perform a banking business and that perform this
business as a substantial part of their operations and
are federally insured or are eligible to apply to become
federally insured:
1. U.S. commercial banks
a. national banks;
b. state-chartered commercial banks; and
c. trust companies that perform a commercial
banking business;
2. U.S. branches and agencies of foreign (nonU.S.) banks;
3. banking Edge Act and agreement corporations;
4. savings banks (mutual and stock);
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Glossary

5. building or savings and loan associations;

Draft

6. cooperative banks;

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

7. homestead associations;
8. credit unions; and
9. industrial banks (including thrift and loan companies and industrial savings banks) when chartered as a bank under state law.
The term ‘‘depository institution’’ excludes the
following:
1. private banks or unincorporated banking institutions organized as partnerships or proprietorships and authorized to perform commercial
banking business;

Due bill
An instrument representing an obligation or promise
to sell or deliver at some future date securities, foreign
exchange, and so on. Due bills generally are issued in
lieu of the item to be sold or delivered at times when
the item is in short supply or otherwise currently
unavailable. The issuance of due bills may give rise to a
reservable deposit (see section 1, subsection F.2.i, Primary Obligations).

2. a trust company whose principal function is to
accept and execute trust arrangements or act in
a purely fiduciary capacity;

Edge Act and agreement corporations

3. a cash depository, cooperative exchange, or
similar depository organization whose principal
function is to serve as a safe deposit institution;

An Edge Act corporation is a corporation chartered by
the Federal Reserve Board under section 25(a) of the
Federal Reserve Act to engage in international banking
and financial operations.

4. a finance company, whether or not empowered
to receive deposits or sell certificates of deposit;
5. U.S. government agencies and instrumentalities,
such as the Federal Home Loan Banks, Federal
Intermediate Credit Banks, Federal Land
Banks, Banks for Cooperatives, the Federal
Home Loan Mortgage Corporation, Federal
Deposit Insurance Corporation, Federal
National Mortgage Association, Federal
Financing Bank, National Credit Union Share
Insurance Fund, and NCUA Central Liquidity
Facility;
6. Export-Import Bank of the United States;

An agreement corporation is a state-chartered corporation that enters into a written agreement with the
Federal Reserve Board to enter into those activities
that are permitted to Edge Act corporations (which are
chartered by the Federal Reserve Board).

Exempt entities
U.S. offices of the following:
1. U.S. commercial banks and trust companies
conducting a commercial banking business and
their majority-owned subsidiaries;

7. Government Development Bank of
Puerto Rico;

2. U.S. branches or agencies of foreign (non-U.S.)
banks (that is, banks organized under foreign
(non-U.S.) law);

8. Minbanc Capital Corporation; and

3. banking Edge Act and agreement corporations;

9. Federal Reserve Banks.

4. mutual and stock savings banks;
5. building or savings and loan associations and
homestead associations;

Deposits

6. cooperative banks;

See Regulation D, section 204.2(a)(1).

7. industrial banks;

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FR 2900

Glossary

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

Exemption amount
Section 411 of the Garn-St. Germain Depository Institutions Act of 1982 subjects the first $2.0 million of a
depository institution’s reservable liabilities to a
reserve requirement of 0 percent. The amount of
reservable liabilities subject to the 0 percent reserve
requirement (the exemption amount) is adjusted each
year for the next succeeding calendar year by 80 percent of the increase in total reservable liabilities of all
depository institutions, measured on an annual basis as
of June 30. (No corresponding adjustment is made in
the event of a decrease in total reservable liabilities of
FR 2900

all depository institutions.) The revised exemption
amount is to be effective for the following calendar
year.

Federal public funds
Funds of the U.S. government and funds the deposit of
which is subject to the control and regulation of the
United States or any of its officers, agents, or
employees.

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

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

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

Foreign (non-U.S.) governments
Central, national, state, provincial, and local governments in foreign (non-U.S.) countries (including their
ministries, departments, and agencies) that perform
functions similar to those performed in the United
States by government entities.
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Glossary

For purposes of Regulation D, foreign (non-U.S.) governments also include foreign (non-U.S.) official banking institutions.

Foreign (non-U.S.) national government
A central or national government that performs functions similar to those performed by the federal government of the United States. State, provincial, and local
governments are not included as foreign (non-U.S.)
national governments.

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

Hypothecated deposits
Funds received by the reporting institution that are
recorded as deposits generally in accordance with state
law and that reflect periodic payments by a borrower
on an installment loan. These payments are accumulated until the sum of the payments equals the entire
amount of principal and interest on the loan, at which
time the loan is considered paid in full. The amounts
received by the reporting institution are not immediately used to reduce the unpaid balance of the note but
are assigned to the reporting institution and cannot be
reached by the borrower or the borrower’s creditors.
Hypothecated deposits are not to be reported as
reservable deposits.
Deposits that simply serve as collateral for loans are
not considered hypothecated deposits for purposes of
the FR 2900 report.

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

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

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

Majority-owned subsidiary
A U.S. subsidiary (except for an Edge Act and agreement corporation) of which a reporting institution
owns 50 percent or more.

MMDA (Money market deposit account)
Immediately available funds
Funds that the reporting institution can invest or dispose of on the same business day that the transaction
giving rise to receipt of the funds is executed. Such
funds are sometimes referred to as ‘‘collected,’’ ‘‘actually collected,’’ ‘‘finally collected,’’ or ‘‘good’’ funds.
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See savings deposit.

Natural person
A natural person for purposes of the FR 2900 report is
an individual or a sole proprietorship. The term does
FR 2900

Glossary

not mean a corporation owned by an individual, a
partnership, or other association.

NINOW (Non-interest-bearing negotiable order
of withdrawal) account
A deposit or account on which no interest or dividend
is paid and from which withdrawals are made by negotiable or transferable instruments for the purpose of
making payments to third parties.

Noncash item
An item that would otherwise fit the definition of cash
items except that it requires special handling as classified by the Federal Reserve System’s Operating
Circulars.
Examples of items requiring special handling are as
follows:
• items with a passbook, certificate, or other document
attached;
• items accompanied by special instructions (such as a
request for special advise of payment or dishonor); and
• items that have not been preprinted or post-encoded
in magnetic ink with the routing number of the paying bank.

Nonconsolidated affiliate
An entity that
• is controlled by the shareholders of the reporting
institution; that is, control is held directly or indirectly through stock ownership, or in any other manner, by (1) shareholders of the reporting institution
who own or control either a majority of the shares of
such depository institution or more than 50 percent
of the number of shares voted for the election of
directors of the reporting institution at the preceding
election or by (2) trustees for the benefit of the shareholders of any such depository institution; or
• has a majority of its directors on the board of directors of the reporting institution; that is, the majority
of its directors, trustees, or other persons exercising
FR 2900

similar functions that also are directors of any other
depository institution; or
• owns or controls the reporting institution; that is,
owns or controls directly or indirectly either a majority of the shares of capital stock of the reporting
institution or more than 50 percent of the number of
shares voted for the election of directors, trustees, or
other persons exercising similar functions of the
reporting institution at the preceding election or controls in any manner the election of a majority of
directors, trustees, or other persons exercising similar
functions of the reporting institution, or for the benefit of whose shareholders or members all or substantially all of the capital stock of a depository institution is held by trustees.

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

Nonpersonal time deposit
Nonpersonal time deposit means
1. a time deposit representing funds deposited to
the credit of, or in which any beneficial interest
is held by, a depositor that is not a natural
person;
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Glossary

2. a time deposit that is transferable and held by a
natural person; or
3. a time deposit issued to and held by a natural
person that does not contain on its face a statement that the deposit is not transferable.

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

Non-U.S. bank
See foreign (non-U.S.) bank.

NOW account
An interest-bearing deposit or account (1) on which
the depository institution has reserved the right to
require at least seven days’ written notice prior to withdrawal or transfer of any funds in the account and
(2) that can be withdrawn or transferred to third parties by issuance of a negotiable or transferable
instrument.
A NOW account is a transaction account. NOW
accounts are authorized by federal law and are limited
to accounts held by
1. individuals or sole proprietorships;
2. governmental units, including the federal government and its agencies and instrumentalities;
state governments; county and municipal governments and their political subdivisions; the
District of Columbia; the Commonwealth of
Puerto Rico; American Samoa; Guam; and any
territory or possession of the United States and
their political subdivisions; or
3. an organization that is operated primarily for
religious, philanthropic, charitable, educational,
political, or other similar purposes and that is
not operated for proft (under Federal Reserve
Board rules, these include organizations, partnerships, corporations, or associations that are
not organized for proft and are described in section 501(c)(3) through (13) and (19) and secGL-8

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tion 528 of the Internal Revenue Code
(26 U.S.C. (I.R.C. 1954) § 501(c)(3) through
(13), (19), and § 527 through § 528), such as
church organizations; professional associations;
trade associations; labor unions; fraternities,
sororities, and similar social organizations; and
nonproft recreational clubs). Please note, however, that the following types of organizations as
described in the cited provisions of the Internal
Revenue Code are among those not eligible to
maintain NOW accounts:
a. credit unions and other mutual depository
institutions (§ 501(c)(14));
b. mutual insurance companies (§ 501(c)(15));
c. crop financing organizations (§ 501(c)(16));
d. organizations created to function as part of a
qualified group legal services plan
(§ 501(c)(20)); and
e. farmers’ cooperatives (§ 521).

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

Payable-through drafts
A negotiable demand draft that can be sent for payment to an institution that is not the institution on
which the draft is drawn. The draft may be drawn on a
depository institution, or it may be drawn on a nondepository institution.
FR 2900

Glossary

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

Preauthorized transfer
See telephone and preauthorized transfer accounts.

passbook savings account, a statement savings
account, or a money market deposit account
(MMDA), that otherwise meets the requirements of
the preceding paragraph and from which, under the
terms of the deposit contract or by practice of the
depository institution, the depositor is permitted or
authorized to make transfers and withdrawals, to
another account (including a transaction account) of
the depositor at the same institution or to a third party,
regardless of the number of such transfers and withdrawals or the manner in which such transfers and
withdrawals are made.

Remote service unit (RSU)
RSUs include, without limitation, point-of-service
terminals, merchant-operated terminals, cashdispensing machines, and automated teller machines.

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

Share draft
A share draft is a negotiable or nonnegotiable draft
signed by the account holder and directing the credit
union on which the draft is drawn to pay a certain sum
of money on demand to the order of a specified person
or bearer. Such drafts are used to withdraw funds from
a share draft account.
A share draft account is a share account from which
funds may be withdrawn or transferred to third parties
by issuance of a negotiable or transferable instrument
or other order.

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

Savings deposit
A savings deposit is a deposit described in section 1,
subsection F.1, or a primary obligation described in
section 1, subsection F.2, with respect to which the
depositor is not required by the deposit contract, but
may at any time be required by the depository institution, to give written notice of an intended withdrawal
not less than seven days before the withdrawal is made,
and that is not payable on a specified date or at the
expiration of a specified time after the date of deposit.
The term ‘‘savings deposit’’ also means a deposit or
account, such as an account commonly known as a
FR 2900

Small time deposit
A time deposit issued in an amount less than $100,000.

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

Telephone and preauthorized transfer accounts
Telephone and preauthorized transfer accounts that
are regarded as transaction accounts are deposits or
accounts, other than savings deposits, (1) in which the
entire beneficial interest is held by a party eligible to
hold a NOW account, (2) on which the reporting institution has reserved the right to require at least seven
days’ written notice prior to withdrawals or transfer of
any funds in the account, and (3) under the terms of
which, or by practice of the reporting institution, the
depositor is permitted or authorized to make withGL-9

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Glossary

drawals for purposes of transferring funds to another
account of the depositor at the same institution
(including a transaction account) or making payment
to a third party by means of a preauthorized transfer; a
telephonic (including data transmission) agreement,
order, or instruction; or a check, draft, debit card, or
similar order made by the depositor and payable to
third parties.

Time certificate of deposit

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

A time deposit may be represented by a transferable or
nontransferable, or a negotiable or nonnegotiable, certificate, instrument, passbook, or statement. A nonnegotiable time deposit is distinguished from a nontransferable time deposit in that the transferee of a
nonnegotiable time deposit would not be a holder in
due course and would not have the ability to cut off
certain defenses of an obligor even though an
exchange for value can be made. A nontransferable
time deposit allows no exchange for value to be made.

Telephone and preauthorized transfers also include
deposits or accounts maintained in connection with an
arrangement that permits the depositor to obtain
credit directly or indirectly through the drawing of a
negotiable or nonnegotiable check, draft, order or
instruction, or other similar device (including telephone or electronic order or instruction) on the issuing
institution that can be used for the purpose of making
payments or transfers to third persons or others or to a
deposit account of the depositor.
Also include in this item the balance of deposits or
accounts that otherwise meet the definition of time
deposits but from which payments may be made to
third parties by means of a debit card (including POS
debits), an ATM, an RSU, or other electronic device,
regardless of the number of payments made.

A deposit described in section 1, subsection F.1, or a
primary obligation described in section 1, subsection
F.2, that is payable on a specified date, after a specified
period from the date of deposit, or after a specified
notice period, which may be not less than seven days
from the date of deposit.

Time deposit
A deposit described in section 1, subsection F.1, or a
primary obligation described in section 1, subsection
F.2, from which the depositor does not have a right and
is not permitted to make withdrawals from within six
days after the date of deposit unless the deposit is subject to an early withdrawal penalty of at least seven
days’ simple interest on amounts withdrawn within the
first six days after deposit. A time deposit from which
partial early withdrawals are permitted must impose
additional early withdrawal penalties of at least seven
days’ simple interest on amounts withdrawn within six
days after each partial withdrawal. If such additional
early withdrawal penalties are not imposed, the
account ceases to be a time deposit.

Teller’s check
A check or draft drawn by a depository institution on
another depository institution, a Federal Reserve
Bank, or a Federal Home Loan Bank or payable at or
through a depository institution, a Federal Reserve
Bank, or a Federal Home Loan Bank.
Teller’s checks do not include checks or drafts sold by a
bank acting in an agency capacity where that capacity
is clearly stated on the face of the check or checks, or
drafts drawn without recourse where permitted by
state law.
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Time deposit open account
A deposit other than a time certificate of deposit, with
respect to which there is in force a written contract with
the depositor that neither the whole nor any part of
such deposit may be withdrawn prior to the date of
maturity, which shall be not less than seven days after
the date of deposit, or prior to the expiration of the
period of notice, which must be given by the depositor
in writing not less than seven days in advance of
withdrawal.
FR 2900

Glossary

Transferable

U.S. (United States)

Any deposit that does not contain a specific statement
on the certificate, instrument, passbook, statement, or
other form representing the deposit that the deposit is
not transferable. A deposit that contains a specific
statement that it is not transferable is not regarded as
transferable even if the following transactions can be
effected: a pledge as collateral for a loan; a transaction
that occurs due to circumstances arising from death,
incompetency, marriage, divorce, attachment, or otherwise by operation of law; or a transfer on the books or
records of the institution.

The 50 states of the United States and the District of
Columbia, and military facilities, wherever located.

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

Unposted debits
Cash items drawn on the reporting institution that
have been paid or credited by the institution and that
are chargeable but that have not been charged against
deposits as of the close of business. These items should
be reported as ‘‘cash items in process of collection’’
until they have been charged to either individual or
general ledger deposit accounts.

FR 2900

U.S. branches and agencies of foreign (non-U.S.)
banks
Branches and agencies of foreign (non-U.S.) banks
that operate as a U.S. office of their foreign (non-U.S.)
parent bank. The branch or agency may be licensed by
the U.S. government or by a state of the United States.
As defined by section 1 of the International Banking
Act of 1978 (12 U.S.C. § 3101), a branch means any
office or any place of business of a foreign (non-U.S.)
bank located in any state of the United States at which
deposits are received; an agency means any office or
any place of business of a foreign (non-U.S.) bank
located in any state of the United States at which credit
balances are maintained incidental to, or arising out of,
the exercise of banking powers, checks are paid, or
money is lent but at which deposits may not be
accepted from citizens or residents of the
United States.

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

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