©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
FDIC TE Set 400 Exam Questions With
Correct Answers 100% Verified.
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:
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
1
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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.
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
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
2
FDIC TE Set 400 Exam Questions With
Correct Answers 100% Verified.
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:
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
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
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.
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
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
2
