FDIC TE Set 500 – Questions With Insightful Solutions
What is the definition of "substantial loss" per part 336? Correct Answer -
A loan or advance to IDI which is now owned by FDIC, RTC (receivership
trust), FSLIC, or successors that is elinquent for 90+ days and legal obligation
to pay more than $50M
Final judgment in excess of $50M in favor of DIF regardless if forgiven in
bankruptcy. All obligations aggretated
FDIC exempt interlock from Part 348 if: Correct Answer - Interlock not
result in monopoly, substantial lessening of competition, or cause S&S
concerns if:
Depository organization seeking to add mgmt:
1. Primarily serves low and moderate income areas
2. Is controlled or managed by persons who are members of minority group,
or women
3. is bank that has been chartered for less than 2 yr
4. is deemed to be in "troubled condition"
No person employed by FDIC shall continue in employment or perform any
service on behalf of FDIC if....
Part 336 Correct Answer - is convicted of felony
Prohibited from participating in affairs of an IDI pursuant to any final
enforcement action by an appropriate federal agency
Demonstrates a pattern or practice of delfacation on obligations to IDIs
Causes substantial loss to federal deposit insurance funds
Exception continues until considerd monopoly unless waiver granted under
presumption above, then 3 years unless FDIC says otherwise.
, What management interlocks qualify for the small market exemption?
Correct Answer - Banks not greater than $2.5B and $1.5B in TA and:
Depository institutions hold no more than 20% in the aggregate of deposit in
each RMSA or community in which both banks operate
Each bank must maintain records to support their exemption
When must a CTR be filed? Correct Answer - For each transaction over
$10M that is:
- A physical transfer currency from one person to another (deposits,
withdrawals, exchanges, or transfers)
-Currency transitions shall be treated as a single transaction if bank has
knowledge they are by, or on behalf of, one person (aggregated accross
branches; one business day)
Most frequent causes of violations? Correct Answer - Unfamiliarity with
regs/statutes
Negligence
Misinterpretation of regulatory requirements/prohibitions
Willful noncompliance
Most serious possible cause of a violation? Why? Correct Answer -
Willful noncompliance - could result in Section 8 or CMPs
Definition of tract development per Part 323? Correct Answer - 5 or
more unites that is constructed or is to be constructed as a single
development
When must a borrower obtaining a loan secured by margin stock file a FR U-
1? Correct Answer - When loan exceeds $100M and is collateralized by
margin stock.
Form must be signed & accepted by authorized bank officer.
What is the definition of "substantial loss" per part 336? Correct Answer -
A loan or advance to IDI which is now owned by FDIC, RTC (receivership
trust), FSLIC, or successors that is elinquent for 90+ days and legal obligation
to pay more than $50M
Final judgment in excess of $50M in favor of DIF regardless if forgiven in
bankruptcy. All obligations aggretated
FDIC exempt interlock from Part 348 if: Correct Answer - Interlock not
result in monopoly, substantial lessening of competition, or cause S&S
concerns if:
Depository organization seeking to add mgmt:
1. Primarily serves low and moderate income areas
2. Is controlled or managed by persons who are members of minority group,
or women
3. is bank that has been chartered for less than 2 yr
4. is deemed to be in "troubled condition"
No person employed by FDIC shall continue in employment or perform any
service on behalf of FDIC if....
Part 336 Correct Answer - is convicted of felony
Prohibited from participating in affairs of an IDI pursuant to any final
enforcement action by an appropriate federal agency
Demonstrates a pattern or practice of delfacation on obligations to IDIs
Causes substantial loss to federal deposit insurance funds
Exception continues until considerd monopoly unless waiver granted under
presumption above, then 3 years unless FDIC says otherwise.
, What management interlocks qualify for the small market exemption?
Correct Answer - Banks not greater than $2.5B and $1.5B in TA and:
Depository institutions hold no more than 20% in the aggregate of deposit in
each RMSA or community in which both banks operate
Each bank must maintain records to support their exemption
When must a CTR be filed? Correct Answer - For each transaction over
$10M that is:
- A physical transfer currency from one person to another (deposits,
withdrawals, exchanges, or transfers)
-Currency transitions shall be treated as a single transaction if bank has
knowledge they are by, or on behalf of, one person (aggregated accross
branches; one business day)
Most frequent causes of violations? Correct Answer - Unfamiliarity with
regs/statutes
Negligence
Misinterpretation of regulatory requirements/prohibitions
Willful noncompliance
Most serious possible cause of a violation? Why? Correct Answer -
Willful noncompliance - could result in Section 8 or CMPs
Definition of tract development per Part 323? Correct Answer - 5 or
more unites that is constructed or is to be constructed as a single
development
When must a borrower obtaining a loan secured by margin stock file a FR U-
1? Correct Answer - When loan exceeds $100M and is collateralized by
margin stock.
Form must be signed & accepted by authorized bank officer.
