FDIC TE Set 500 Exam Questions and
Answers
No iiperson iiemployed iiby iiFDIC iishall iicontinue iiin iiemployment iior iiperform iiany
iiservice iion iibehalf iiof iiFDIC iiif....
part ii336 ii- iiAnswers ii-is iiconvicted iiof iifelony
prohibited iifrom iiparticipating iiin iiaffairs iiof iian iiIDI iipursuant iito iiany iifinal iienforcement
iiaction iiby iian iiappropriate iifederal iiagency
Demonstrates iia iipattern iior iipractice iiof iidelfacation iion iiobligations iito iiIDIs
Causes iisubstantial iiloss iito iifederal iideposit iiinsurance iifunds
What iiis iithe iidefinition iiof ii"substantial iiloss" iiper iipart ii336? ii- iiAnswers ii-A iiloan iior
iiadvance iito iiIDI iiwhich iiis iinow iiowned iiby iiFDIC, iiRTC ii(receivership iitrust), iiFSLIC, iior
iisuccessors iithat iiis iielinquent iifor ii90+ iidays iiand iilegal iiobligation iito iipay iimore iithan
ii$50M
Final iijudgment iiin iiexcess iiof ii$50M iiin iifavor iiof iiDIF iiregardless iiif iiforgiven iiin
iibankruptcy. iiAll iiobligations iiaggretated
FDIC iiexempt iiinterlock iifrom iiPart ii348 iiif: ii- iiAnswers ii-Interlock iinot iiresult iiin
iimonopoly, iisubstantial iilessening iiof iicompetition, iior iicause iiS&S iiconcerns iiif:
Depository iiorganization iiseeking iito iiadd iimgmt:
1. iiPrimarily iiserves iilow iiand iimoderate iiincome iiareas
2. iiIs iicontrolled iior iimanaged iiby iipersons iiwho iiare iimembers iiof iiminority iigroup, iior
iiwomen
3. iiis iibank iithat iihas iibeen iichartered iifor iiless iithan ii2 iiyr
4. iiis iideemed iito iibe iiin ii"troubled iicondition"
Exception iicontinues iiuntil iiconsiderd iimonopoly iiunless iiwaiver iigranted iiunder
iipresumption iiabove, iithen ii3 iiyears iiunless iiFDIC iisays iiotherwise.
What iimanagement iiinterlocks iiqualify iifor iithe iismall iimarket iiexemption? ii- iiAnswers ii-
Banks iinot iigreater iithan ii$2.5B iiand ii$1.5B iiin iiTA iiand:
, Depository iiinstitutions iihold iino iimore iithan ii20% iiin iithe iiaggregate iiof iideposit iiin iieach
iiRMSA iior iicommunity iiin iiwhich iiboth iibanks iioperate
Each iibank iimust iimaintain iirecords iito iisupport iitheir iiexemption
When iimust iia iiCTR iibe iifiled? ii- iiAnswers ii-For iieach iitransaction iiover ii$10M iithat iiis:
- iiA iiphysical iitransfer iicurrency iifrom iione iiperson iito iianother ii(deposits, iiwithdrawals,
iiexchanges, iior iitransfers)
-Currency iitransitions iishall iibe iitreated iias iia iisingle iitransaction iiif iibank iihas
iiknowledge iithey iiare iiby, iior iion iibehalf iiof, iione iiperson ii(aggregated iiaccross
iibranches; iione iibusiness iiday)
Most iifrequent iicauses iiof iiviolations? ii- iiAnswers ii-Unfamiliarity iiwith iiregs/statutes
Negligence
Misinterpretation iiof iiregulatory iirequirements/prohibitions
Willful iinoncompliance
Most iiserious iipossible iicause iiof iia iiviolation? iiWhy? ii- iiAnswers ii-Willful
iinoncompliance ii- iicould iiresult iiin iiSection ii8 iior iiCMPs
Definition iiof iitract iidevelopment iiper iiPart ii323? ii- iiAnswers ii-5 iior iimore iiunites iithat iiis
iiconstructed iior iiis iito iibe iiconstructed iias iia iisingle iidevelopment
When iimust iia iiborrower iiobtaining iia iiloan iisecured iiby iimargin iistock iifile iia iiFR iiU-1? ii-
iiAnswers ii-When iiloan iiexceeds ii$100M iiand iiis iicollateralized iiby iimargin iistock.
Form iimust iibe iisigned ii& iiaccepted iiby iiauthorized iibank iiofficer.
What iiis iimargin iistock iifor iiReg iiU iipurposes? ii- iiAnswers ii-1. iiAll iiequity iisecurities iion
iimajor iiexchanges
2. iiCertain iiOTC iistocks ii(if iilisted iion iinational iimkt iiof iiNASDAQ)
What iiis iithe iimaximum iiadvance iirate iiagainst iimargin iistock ii- iiReg iiU? ii- iiAnswers ii-
50% iimargin iistock's iivalue iion iiday iiloan iimade. iiSubsequent iideclines iinot iiviolation.
Maximum iiloan iivalue iiof iinonmargin iistock iiand iiall iiother iicollateral ii(except iiputs, iicalls,
iior iicombos iiof iithose)? ii- iiAnswers ii-Good iifaith iiloan iivalue ii(not iiexceeding ii100%
iicurrent iiMV) iiwhich iia iilender, iiexercising iisound iicredit iijudgement, iiwould iilend, iiw/o
iiregard iito iithe iicustomers iiother iiassets iiheld iiin iiconnection iiwith iiunrelated
iitransactions.
Answers
No iiperson iiemployed iiby iiFDIC iishall iicontinue iiin iiemployment iior iiperform iiany
iiservice iion iibehalf iiof iiFDIC iiif....
part ii336 ii- iiAnswers ii-is iiconvicted iiof iifelony
prohibited iifrom iiparticipating iiin iiaffairs iiof iian iiIDI iipursuant iito iiany iifinal iienforcement
iiaction iiby iian iiappropriate iifederal iiagency
Demonstrates iia iipattern iior iipractice iiof iidelfacation iion iiobligations iito iiIDIs
Causes iisubstantial iiloss iito iifederal iideposit iiinsurance iifunds
What iiis iithe iidefinition iiof ii"substantial iiloss" iiper iipart ii336? ii- iiAnswers ii-A iiloan iior
iiadvance iito iiIDI iiwhich iiis iinow iiowned iiby iiFDIC, iiRTC ii(receivership iitrust), iiFSLIC, iior
iisuccessors iithat iiis iielinquent iifor ii90+ iidays iiand iilegal iiobligation iito iipay iimore iithan
ii$50M
Final iijudgment iiin iiexcess iiof ii$50M iiin iifavor iiof iiDIF iiregardless iiif iiforgiven iiin
iibankruptcy. iiAll iiobligations iiaggretated
FDIC iiexempt iiinterlock iifrom iiPart ii348 iiif: ii- iiAnswers ii-Interlock iinot iiresult iiin
iimonopoly, iisubstantial iilessening iiof iicompetition, iior iicause iiS&S iiconcerns iiif:
Depository iiorganization iiseeking iito iiadd iimgmt:
1. iiPrimarily iiserves iilow iiand iimoderate iiincome iiareas
2. iiIs iicontrolled iior iimanaged iiby iipersons iiwho iiare iimembers iiof iiminority iigroup, iior
iiwomen
3. iiis iibank iithat iihas iibeen iichartered iifor iiless iithan ii2 iiyr
4. iiis iideemed iito iibe iiin ii"troubled iicondition"
Exception iicontinues iiuntil iiconsiderd iimonopoly iiunless iiwaiver iigranted iiunder
iipresumption iiabove, iithen ii3 iiyears iiunless iiFDIC iisays iiotherwise.
What iimanagement iiinterlocks iiqualify iifor iithe iismall iimarket iiexemption? ii- iiAnswers ii-
Banks iinot iigreater iithan ii$2.5B iiand ii$1.5B iiin iiTA iiand:
, Depository iiinstitutions iihold iino iimore iithan ii20% iiin iithe iiaggregate iiof iideposit iiin iieach
iiRMSA iior iicommunity iiin iiwhich iiboth iibanks iioperate
Each iibank iimust iimaintain iirecords iito iisupport iitheir iiexemption
When iimust iia iiCTR iibe iifiled? ii- iiAnswers ii-For iieach iitransaction iiover ii$10M iithat iiis:
- iiA iiphysical iitransfer iicurrency iifrom iione iiperson iito iianother ii(deposits, iiwithdrawals,
iiexchanges, iior iitransfers)
-Currency iitransitions iishall iibe iitreated iias iia iisingle iitransaction iiif iibank iihas
iiknowledge iithey iiare iiby, iior iion iibehalf iiof, iione iiperson ii(aggregated iiaccross
iibranches; iione iibusiness iiday)
Most iifrequent iicauses iiof iiviolations? ii- iiAnswers ii-Unfamiliarity iiwith iiregs/statutes
Negligence
Misinterpretation iiof iiregulatory iirequirements/prohibitions
Willful iinoncompliance
Most iiserious iipossible iicause iiof iia iiviolation? iiWhy? ii- iiAnswers ii-Willful
iinoncompliance ii- iicould iiresult iiin iiSection ii8 iior iiCMPs
Definition iiof iitract iidevelopment iiper iiPart ii323? ii- iiAnswers ii-5 iior iimore iiunites iithat iiis
iiconstructed iior iiis iito iibe iiconstructed iias iia iisingle iidevelopment
When iimust iia iiborrower iiobtaining iia iiloan iisecured iiby iimargin iistock iifile iia iiFR iiU-1? ii-
iiAnswers ii-When iiloan iiexceeds ii$100M iiand iiis iicollateralized iiby iimargin iistock.
Form iimust iibe iisigned ii& iiaccepted iiby iiauthorized iibank iiofficer.
What iiis iimargin iistock iifor iiReg iiU iipurposes? ii- iiAnswers ii-1. iiAll iiequity iisecurities iion
iimajor iiexchanges
2. iiCertain iiOTC iistocks ii(if iilisted iion iinational iimkt iiof iiNASDAQ)
What iiis iithe iimaximum iiadvance iirate iiagainst iimargin iistock ii- iiReg iiU? ii- iiAnswers ii-
50% iimargin iistock's iivalue iion iiday iiloan iimade. iiSubsequent iideclines iinot iiviolation.
Maximum iiloan iivalue iiof iinonmargin iistock iiand iiall iiother iicollateral ii(except iiputs, iicalls,
iior iicombos iiof iithose)? ii- iiAnswers ii-Good iifaith iiloan iivalue ii(not iiexceeding ii100%
iicurrent iiMV) iiwhich iia iilender, iiexercising iisound iicredit iijudgement, iiwould iilend, iiw/o
iiregard iito iithe iicustomers iiother iiassets iiheld iiin iiconnection iiwith iiunrelated
iitransactions.
