©BRIGHTSTARS EXAM SOLUTIONS
11/14/2024 12:19 PM
FDIC TE Set 300 Exam Questions With
Verified Answers
What banks are eligible for Expedited Application Process? - answer✔Composite 1 or 2
CRA - satisfactory
Compliance 1 or 2
WC under PCA
Not subject to any written agreement (formal or informal)
When can FDIC alternate exams with State? - answer✔Composite 1 or 2
Stable and improving 3 (confirmed by SCOR); no known adverse trends
End of one exam and start of next not exceed 12 (18) months.
End defined as submission to RO or 60 days from start date
4 BSA Pillars - Part 326 - answer✔System of Internal Controls
Independent Testing
Designated BSA Officer
Provide Training to all employees
Section 6 of FDIC Act - New Bank Application Factors - answer✔1. Adequacy of Capital Structure
- T1C not less than 8% for 7 years. Initial capital normally $2MM excess of any preopening
expenses and an adequate ALLL.
2. Convenience and Needs of community to be served.
1|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/14/2024 12:19 PM
3. Consistency of Corporate Powers with purposes of the FDI act
4. Financial History and Condition
5. Future Earnings Prospects
6. General Character of Management (#1)
7. Risk presented to DIF
Insiders per Regulation O - answer✔Directors
Principal Shareholders
Executive Officers
Related interest of above
- company controlled by insider, or political campiagn controlled by, or for the benefit of, the
insider
Unimpaired Capital & Surplus - answer✔Tier 1 Capital
Tier 2 capital
Excess ALLL
Executive Officers per Regulation O - answer✔Chairmen of the Board
President
Secretary
Treasurer
Cashier
VPs
2|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/14/2024 12:19 PM
Unless specifically excluded by Board Resolution and nonparticipatory in policy making
functions
Executive Officer and Director Overdrafts - answer✔May not pay overdraft for XO or director
(or of bank affiliates) unless:
written, preauthorized, interest bearing extension of credit plan that specifies method of
repayment
Written, preauthorized, transfer of funds from another account
Exception: inadvertent overdfraft of aggregate $1M or less provided not more than 5 business
days, same fee charged as any other customer.
Doesn't apply to related interests, or shareholders
SARs must be filed when? - answer✔Insider abuse in any amount
$5M or more when suspect known (30 days)
$25M or more when suspect unkown (60 days)
$5M when money suspect money laundering/BSA violations
Low Quality Assets - 23A - answer✔Adversely Classified or SM
Non-accrual
>30 days PD
TDR
Partial Payments on Retail Credit - How accounted for? - answer✔90% of contractual payment
considered full payments
Actual payments are aggregated
3|Page
11/14/2024 12:19 PM
FDIC TE Set 300 Exam Questions With
Verified Answers
What banks are eligible for Expedited Application Process? - answer✔Composite 1 or 2
CRA - satisfactory
Compliance 1 or 2
WC under PCA
Not subject to any written agreement (formal or informal)
When can FDIC alternate exams with State? - answer✔Composite 1 or 2
Stable and improving 3 (confirmed by SCOR); no known adverse trends
End of one exam and start of next not exceed 12 (18) months.
End defined as submission to RO or 60 days from start date
4 BSA Pillars - Part 326 - answer✔System of Internal Controls
Independent Testing
Designated BSA Officer
Provide Training to all employees
Section 6 of FDIC Act - New Bank Application Factors - answer✔1. Adequacy of Capital Structure
- T1C not less than 8% for 7 years. Initial capital normally $2MM excess of any preopening
expenses and an adequate ALLL.
2. Convenience and Needs of community to be served.
1|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/14/2024 12:19 PM
3. Consistency of Corporate Powers with purposes of the FDI act
4. Financial History and Condition
5. Future Earnings Prospects
6. General Character of Management (#1)
7. Risk presented to DIF
Insiders per Regulation O - answer✔Directors
Principal Shareholders
Executive Officers
Related interest of above
- company controlled by insider, or political campiagn controlled by, or for the benefit of, the
insider
Unimpaired Capital & Surplus - answer✔Tier 1 Capital
Tier 2 capital
Excess ALLL
Executive Officers per Regulation O - answer✔Chairmen of the Board
President
Secretary
Treasurer
Cashier
VPs
2|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/14/2024 12:19 PM
Unless specifically excluded by Board Resolution and nonparticipatory in policy making
functions
Executive Officer and Director Overdrafts - answer✔May not pay overdraft for XO or director
(or of bank affiliates) unless:
written, preauthorized, interest bearing extension of credit plan that specifies method of
repayment
Written, preauthorized, transfer of funds from another account
Exception: inadvertent overdfraft of aggregate $1M or less provided not more than 5 business
days, same fee charged as any other customer.
Doesn't apply to related interests, or shareholders
SARs must be filed when? - answer✔Insider abuse in any amount
$5M or more when suspect known (30 days)
$25M or more when suspect unkown (60 days)
$5M when money suspect money laundering/BSA violations
Low Quality Assets - 23A - answer✔Adversely Classified or SM
Non-accrual
>30 days PD
TDR
Partial Payments on Retail Credit - How accounted for? - answer✔90% of contractual payment
considered full payments
Actual payments are aggregated
3|Page
