Method for determining deposit and other liability account balances at a failed insured depository institution.

CFR · 2024-01-01 · US · Title 12

(a) (b) (2) The (3) (4) A (c) (2) In its role as receiver of a failed insured depository institution, in order to ensure the proper distribution of the failed institution's assets under the FDI Act (12 U.S.C. 1821(d)(11)) as of the FDIC Cutoff Point, the FDIC will use its best efforts to take all steps necessary to stop the generation, via transactions or transfers coming from or going outside the institution, of new liabilities or extinguishing existing liabilities for the depository institution. (3) End-of-day ledger balances are subject to corrections for posted transactions that are inconsistent with the above principles. (d) (2) A check posted to the (3) In determining (i) For internal sweep accounts, the FDIC will determine the ownership of the funds and the nature of the receivership claim based on the records established and maintained by the institution for that specific account or investment vehicle as of the closing day end-of-day ledger balance. (For example, if a sweep account entails the daily transfer of funds from a demand deposit account to a Eurodollar account at a foreign branch of the insured depository institution, if the institution should fail on that day, the FDIC would treat the funds swept to the Eurodollar account, as reflected on the institution's end-of-day records, as an unsecured general creditor's claim against the receivership.); (ii) For external sweep accounts, the FDIC will treat swept funds consistent with their status in the end-of-day le

official document · source cfr-2024 · id 12:§ 360.8