FDIC TE Set 400 Exam Questions and
Answers
IAP ii(Institution iiAffiliated iiParty) iiRestrictions ii- iiSection ii19 ii- iiAnswers ii-Section ii19
iiprevents iiwithout iiprior iiFDIC iiconsent iia iiperson iiconvicted iiof ii(or iipretrial iidiversion
iiof) iicrime iiinvolving:
dishonesty
breach iiof iitrust
money iilaundering
from iibecoming iior iicontinuing iias iiIAP, iiowning/controlling iia iibank iior iiotherwise
iiparticipating iiin iibank iiaffairs.
Application iito iicontinue iito iiserve iinot iirequired iifor iiif iiall:
only iione iiconviction iifor iicovered iioffense
offence iidid iinot iiinvolve iibank/CU
Punishable iiby ii1 iiyr iior iiless iijail iiand iior iifine ii<$1M iiand iino iitime iiserved
Conviction iiat iileast ii5 iiyears iiprior
Writing iibad iichecks iiwill iibe iiincluded iiif iitotal iiamount iiof iichecks iiwas ii$1M iior iiless
iiand iino iibank iiwas iipayee
Section ii8(e) iiaction iimay iibe iitaken iionly iiwhen iiit iiis iidetermined iiafter iinotice iiand
iihearing iithat: ii- iiAnswers ii-1. iiThe iiIAP iihas iiviolated iiany iilaw iior iiregulation, iiany iifinal
iiC&D iiorer, iiany iicondition iiimposed iiin iiwriting iifor iiapplication, iiany iiwritten iiagreement,
iiparticipated iiin iiany iiunsafe iiand iiunsound iipractice iiOR iibreached iifiduciary iiduty iiAND
2. iiby iireason iiof iiabove, iiIDI iihas iior iiwill iiprobably iisuffer iifinancial iiloss, iiinterests iiof
iidepositors iiprejudiced iiOR iiparty iihas iireceived iifinancial iigain/benefit iiAND
3. iiviolation iiinvolves iipersonal iidishonesty iion iithe iipart iiof iiIAP iior iidemonstrates iiwillful
iior iicontinuing iidisregard iifor iiS&S iiof iiinstitution.
Call iiReport iiFines ii- iiAnswers ii-Tier ii1 ii- ii$519/day iifor iifirst ii15 iidays iilate, ii$1,039/day
ii16+.
iiFor iibanks ii<$25MM ii$173/day iito ii$346M iior ii1/500th iiof iiTA
Increase ii@ ii2nd iioffense iiin ii5 iipreceding iiquarters
865 iifor ii1st ii15 iidays, ii$1,731/day. ii<$250M ii1/500th iithen ii1/250th
False iior iimisleading ii- iiTier ii1 ii- iinot iimore iithan ii$3,787/day
Tier ii2 ii- ii$37,872/day
Tier ii3 iilesser iiof ii$1,893,610 iior ii1% iiof iiTA/day
, CMP iirecommendations iishould iionly iibe iiinitiated iiwhen iithe iifinable iiviolation iiis
iibelieved iiot iimeet iithe iitest iiof iigravity, iiincl iiconsideration iiof iithe ii12 iifactors, iiand iithe
iiexistence iiof iiany iione iiof iithe iifollowing iicriteria: ii- iiAnswers ii-The iiviolations iicauses
iithe iibank iito iisuffer iisubstantial iifinancial iiloss
The iiviolations iiare iiwill, iiflagrant, iior iiotherwise iievidence iibad iifaith iion iithe iipart iiof
iibank/individual
The iiviolation iidirectly iior iiindirectly iiinvolves iian iiinsider iior iiassoc. iiof iiinsider iiwho
iibenefits iifrom iitransaction iiin iia iimaterial iior iisubstantial iiway
Previous iisupervisory iimeans iihave iinot iibeen iieffective iiin iieliminating iior iideterring
iiviolations
What ii5 iicriteria iidoes iia iibank iihave iito iimeet iito iibe iieligible iifor iiexpedited iiapplication
iiprocessing?
Part ii303.2 ii- iiAnswers ii-Composite ii1 iior ii2
CRA iirating iisatisfactory iior iibetter
Compliance iirating iiof ii1 iior ii2
Well iiCapitalized
not iisubject iito iiANY iiwritten iiagreement
What iibanks iimeet iithe iidefinition iiof iiTroubled iiCondition ii(Part ii303) ii- iiAnswers ii-ONE
iiof iithe iifollowing
1. iiComposite ii4 iior ii5 ii(or iiequivalent iiforeign)
2. iiSubject iito iiFDIC iiproceeding iifor iitermination iior iisuspension iiof iideposit iiinsurance.
3. iiC&D iiorder iior iiwritten iiagreement ii(FDIC iior iiState) iirequiring iiimprovement iito
iifinancial iicondition.
4. iiIn iiinformed iiin iiwriting iithat iithey iiare iitroubled iibased iion iiCR, iiROE, iior iiother iiinfo.
What ii5 iifilings iitake iiinto iiaccount iithe iibank's iiCRA iirecord iiof iiperformance ii- iiAnswers
ii-Establishment iiof iidomestic iibranch
Relocation iiof iimain iioffice iior iidomestic iibranch
Relocation iiof iiinsured iibranch iiof iiforeign iibank
Transaction iisubject iito iithe iibank iimerger iiact
Deposit iiinsurance
What iitransactions iidon't iirequire iinotice iito iithe iiFDIC iiunder iiPart ii303 ii(Change iiin
iiControl) ii- iiAnswers ii-1. iiThe iiacquisition iiof iiadditional iivoting iishares iiof iiIDI/HC iiby
iiperson iiwho iihas:
iia. iiheld iipower iito iivote ii25%+ iicontinuously iisince ii
iiMarch ii1979 ii(or iisince iibank iiestablished)
iib. iiIs iipresumed iito iihave iicontrol iisince ii1979 iiif ii
ii<25%
Answers
IAP ii(Institution iiAffiliated iiParty) iiRestrictions ii- iiSection ii19 ii- iiAnswers ii-Section ii19
iiprevents iiwithout iiprior iiFDIC iiconsent iia iiperson iiconvicted iiof ii(or iipretrial iidiversion
iiof) iicrime iiinvolving:
dishonesty
breach iiof iitrust
money iilaundering
from iibecoming iior iicontinuing iias iiIAP, iiowning/controlling iia iibank iior iiotherwise
iiparticipating iiin iibank iiaffairs.
Application iito iicontinue iito iiserve iinot iirequired iifor iiif iiall:
only iione iiconviction iifor iicovered iioffense
offence iidid iinot iiinvolve iibank/CU
Punishable iiby ii1 iiyr iior iiless iijail iiand iior iifine ii<$1M iiand iino iitime iiserved
Conviction iiat iileast ii5 iiyears iiprior
Writing iibad iichecks iiwill iibe iiincluded iiif iitotal iiamount iiof iichecks iiwas ii$1M iior iiless
iiand iino iibank iiwas iipayee
Section ii8(e) iiaction iimay iibe iitaken iionly iiwhen iiit iiis iidetermined iiafter iinotice iiand
iihearing iithat: ii- iiAnswers ii-1. iiThe iiIAP iihas iiviolated iiany iilaw iior iiregulation, iiany iifinal
iiC&D iiorer, iiany iicondition iiimposed iiin iiwriting iifor iiapplication, iiany iiwritten iiagreement,
iiparticipated iiin iiany iiunsafe iiand iiunsound iipractice iiOR iibreached iifiduciary iiduty iiAND
2. iiby iireason iiof iiabove, iiIDI iihas iior iiwill iiprobably iisuffer iifinancial iiloss, iiinterests iiof
iidepositors iiprejudiced iiOR iiparty iihas iireceived iifinancial iigain/benefit iiAND
3. iiviolation iiinvolves iipersonal iidishonesty iion iithe iipart iiof iiIAP iior iidemonstrates iiwillful
iior iicontinuing iidisregard iifor iiS&S iiof iiinstitution.
Call iiReport iiFines ii- iiAnswers ii-Tier ii1 ii- ii$519/day iifor iifirst ii15 iidays iilate, ii$1,039/day
ii16+.
iiFor iibanks ii<$25MM ii$173/day iito ii$346M iior ii1/500th iiof iiTA
Increase ii@ ii2nd iioffense iiin ii5 iipreceding iiquarters
865 iifor ii1st ii15 iidays, ii$1,731/day. ii<$250M ii1/500th iithen ii1/250th
False iior iimisleading ii- iiTier ii1 ii- iinot iimore iithan ii$3,787/day
Tier ii2 ii- ii$37,872/day
Tier ii3 iilesser iiof ii$1,893,610 iior ii1% iiof iiTA/day
, CMP iirecommendations iishould iionly iibe iiinitiated iiwhen iithe iifinable iiviolation iiis
iibelieved iiot iimeet iithe iitest iiof iigravity, iiincl iiconsideration iiof iithe ii12 iifactors, iiand iithe
iiexistence iiof iiany iione iiof iithe iifollowing iicriteria: ii- iiAnswers ii-The iiviolations iicauses
iithe iibank iito iisuffer iisubstantial iifinancial iiloss
The iiviolations iiare iiwill, iiflagrant, iior iiotherwise iievidence iibad iifaith iion iithe iipart iiof
iibank/individual
The iiviolation iidirectly iior iiindirectly iiinvolves iian iiinsider iior iiassoc. iiof iiinsider iiwho
iibenefits iifrom iitransaction iiin iia iimaterial iior iisubstantial iiway
Previous iisupervisory iimeans iihave iinot iibeen iieffective iiin iieliminating iior iideterring
iiviolations
What ii5 iicriteria iidoes iia iibank iihave iito iimeet iito iibe iieligible iifor iiexpedited iiapplication
iiprocessing?
Part ii303.2 ii- iiAnswers ii-Composite ii1 iior ii2
CRA iirating iisatisfactory iior iibetter
Compliance iirating iiof ii1 iior ii2
Well iiCapitalized
not iisubject iito iiANY iiwritten iiagreement
What iibanks iimeet iithe iidefinition iiof iiTroubled iiCondition ii(Part ii303) ii- iiAnswers ii-ONE
iiof iithe iifollowing
1. iiComposite ii4 iior ii5 ii(or iiequivalent iiforeign)
2. iiSubject iito iiFDIC iiproceeding iifor iitermination iior iisuspension iiof iideposit iiinsurance.
3. iiC&D iiorder iior iiwritten iiagreement ii(FDIC iior iiState) iirequiring iiimprovement iito
iifinancial iicondition.
4. iiIn iiinformed iiin iiwriting iithat iithey iiare iitroubled iibased iion iiCR, iiROE, iior iiother iiinfo.
What ii5 iifilings iitake iiinto iiaccount iithe iibank's iiCRA iirecord iiof iiperformance ii- iiAnswers
ii-Establishment iiof iidomestic iibranch
Relocation iiof iimain iioffice iior iidomestic iibranch
Relocation iiof iiinsured iibranch iiof iiforeign iibank
Transaction iisubject iito iithe iibank iimerger iiact
Deposit iiinsurance
What iitransactions iidon't iirequire iinotice iito iithe iiFDIC iiunder iiPart ii303 ii(Change iiin
iiControl) ii- iiAnswers ii-1. iiThe iiacquisition iiof iiadditional iivoting iishares iiof iiIDI/HC iiby
iiperson iiwho iihas:
iia. iiheld iipower iito iivote ii25%+ iicontinuously iisince ii
iiMarch ii1979 ii(or iisince iibank iiestablished)
iib. iiIs iipresumed iito iihave iicontrol iisince ii1979 iiif ii
ii<25%
