FDIC TE Set 400 Study Exam Questions and Answers 100% Pass

FDIC TE Set 400 Study Exam Questions and Answers 100% Pass IAP (Institution Affiliated Party) Restrictions - Section 19 - ANSWER- Section 19 prevents without prior FDIC consent a person convicted of (or pretrial diversion of) crime involving: dishonesty breach of trust money laundering from becoming or continuing as IAP, owning/controlling a bank or otherwise participating in bank affairs. Application to continue to serve not required for if all: Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/28 only one conviction for covered offense offence did not involve bank/CU Punishable by 1 yr or less jail and or fine <$1M and no time served Conviction at least 5 years prior Writing bad checks will be included if total amount of checks was $1M or less and no bank was payee Section 8(e) action may be taken only when it is determined after notice and hearing that: - ANSWER-1. The IAP has violated any law or regulation, any final C&D orer, any condition imposed in writing for application, any written agreement, participated in any unsafe and unsound practice OR breached fiduciary duty AND 2. by reason of above, IDI has or will probably suffer financial loss, interests of depositors prejudiced OR party has received financial gain/benefit AND 3. violation involves personal dishonesty on the part of IAP or demonstrates willful or continuing disregard for S&S of institution. Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/28 Call Report Fines - ANSWER-Tier 1 - $519/day for first 15 days late, $1,039/day 16+. For banks <$25MM $173/day to $346M or 1/500th of TA Increase @ 2nd offense in 5 preceding quarters 865 for 1st 15 days, $1,731/day. <$250M 1/500th then 1/250th False or misleading - Tier 1 - not more than $3,787/day Tier 2 - $37,872/day Tier 3 lesser of $1,893,610 or 1% of TA/day CMP recommendations should only be initiated when the finable violation is believed ot meet the test of gravity, incl consideration of the 12 factors, and the existence of any one of the following criteria: - ANSWER-The violations causes the bank to suffer substantial financial loss The violations are will, flagrant, or otherwise evidence bad faith on the part of bank/individual Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 4/28 The violation directly or indirectly involves an insider or assoc. of insider who benefits from transaction in a material or substantial way Previous supervisory means have not been effective in eliminating or deterring violations What 5 criteria does a bank have to meet to be eligible for expedited application processing? Part 303.2 - ANSWER-Composite 1 or 2 CRA rating satisfactory or better Compliance rating of 1 or 2