Bryan Cave Leighton Paisner Banking Blog

Bank BCLP

Special Assessment

Main Content

FDIC Finalizes Prepaid Assessments Rule

November 16, 2009

Authors

Robert Klingler

FDIC Finalizes Prepaid Assessments Rule

November 16, 2009

by: Robert Klingler

On November 12, 2009, the FDIC adopted its final rule regarding prepaid assessments.  The final rule is largely unchanged from the FDIC’s initial proposal; the most significant change is that the FDIC will now refund any unused assessments after collection of the amount due on June 30, 2013, as opposed to December 30, 2014.

Effect

As noted by the FDIC, the prepayment of FDIC assessments primarily impacts liquidity – both of the FDIC Deposit Insurance Fund and the banks.  As the prepaid assessments merely represent the prepayment of future expense, they do not affect a Bank’s capital (the

Read More

FDIC Pre-payment Assessment Update

October 27, 2009

Authors

Bryan Cave Leighton Paisner

FDIC Pre-payment Assessment Update

October 27, 2009

by: Bryan Cave Leighton Paisner

On September 29, 2009, the FDIC announced a proposed rule that would require institutions to prepay on December 30, 2009, an estimated quarterly risk-based assessments for the 4th quarter of 2009 and for all 2010, 2011, and 2012.   For a synopsis, see our prior summary of the proposed rule. Comments to the proposed rule are due by October 28, 2009.

Tax Treatment of Prepayments

The general rule is that prepayments that benefit more than one taxable period cannot be deducted in full, but must be deducted over the periods for which the benefits are obtained.  Thus, a payment

Read More

FDIC Board Votes to Mandate Prepaid Assessments and Immediately Adopts 3 Basis Point Increase Effective January 2011

September 30, 2009

Authors

Bryan Cave Leighton Paisner

FDIC Board Votes to Mandate Prepaid Assessments and Immediately Adopts 3 Basis Point Increase Effective January 2011

September 30, 2009

by: Bryan Cave Leighton Paisner

The proposed rule adopted at the FDIC Board Meeting on September 29, 2009 amended the final rule adopted in May 2009 to restore losses to the Deposit Insurance Fund (DIF).

Assessments for 4th Quarter 2009 and all of 2010-2012 Due December 30, 2009

The proposed rule would require insured institutions to prepay on December 30, 2009, an estimated quarterly risk-based assessments for the 4th quarter of 2009 and for all 2010, 2011, and 2012. If the proposed rule is adopted, an institution’s assessment will be calculated by taking the institution’s actual September 30, 2009 assessment and adjusting it quarterly by

Read More

FDIC Adopts a Final Rule Regarding Special Assessments

May 22, 2009

Authors

Bryan Cave Leighton Paisner

FDIC Adopts a Final Rule Regarding Special Assessments

May 22, 2009

by: Bryan Cave Leighton Paisner

On May 22, 2009, the FDIC adopted a final rule imposing a 5 basis point special assessment and authorizing the FDIC to impose additional special assessments of 5 basis points, if necessary.  The initial special assessment and any additional special assessment will be based on an institution’s assets minus Tier 1 capital as of June 30, 2009.  This final rule differs significantly from the interim rule that FDIC issued on March 2, 2009.

The interim rule contemplated a 20 basis point special assessment, based on an institution’s deposits, which is the assessment base used for the regular quarterly risk-based assessments. 

Read More
The attorneys of Bryan Cave LLP make this site available to you only for the educational purposes of imparting general information and a general understanding of the law. This site does not offer specific legal advice. Your use of this site does not create an attorney-client relationship between you and Bryan Cave LLP or any of its attorneys. Do not use this site as a substitute for specific legal advice from a licensed attorney. Much of the information on this site is based upon preliminary discussions in the absence of definitive advice or policy statements and therefore may change as soon as more definitive advice is available. Please review our full disclaimer.