A new insured depository institution is defined as a bank or savings association that has received federal insurance for less than five years as of the last day of any quarter being assessed. This designation is important for understanding the regulatory framework surrounding financial institutions and their insurance status.
This term is primarily used in banking and finance law, particularly in relation to federal deposit insurance. New insured depository institutions are subject to specific regulations and assessments by the Federal Deposit Insurance Corporation (FDIC). Understanding this term is crucial for financial professionals, as it impacts compliance and risk management practices. Users can manage related forms and procedures through resources like US Legal Forms, which offers templates drafted by experienced attorneys.
Here are a couple of examples of abatement:
Example 1: A newly established bank that received its federal insurance on January 1, 2020, would be classified as a new insured depository institution until December 31, 2024.
Example 2: A savings association that was federally insured on July 1, 2021, will be considered a new insured depository institution until June 30, 2026. (hypothetical example)
According to 12 CFR 327.8, this definition is codified under federal banking regulations. It is essential for determining the assessment rates and regulatory obligations for newly insured institutions.
| Term | Definition | Key Differences |
|---|---|---|
| Insured Depository Institution | A bank or savings association that has federal insurance. | Includes all institutions regardless of age. |
| Federal Deposit Insurance Corporation (FDIC) | A government agency that provides deposit insurance to depositors in U.S. commercial banks. | FDIC oversees the insurance process, while new insured depository institutions are the entities receiving insurance. |
If you are involved with a new insured depository institution, ensure compliance with FDIC regulations and assessments. Consider using US Legal Forms for templates that can assist with necessary documentation. If your situation is complex, seeking professional legal assistance may be beneficial.
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| Attribute | Details |
|---|---|
| Typical Duration of Status | Less than five years |
| Regulatory Body | Federal Deposit Insurance Corporation (FDIC) |
| Assessment Basis | Last day of any quarter |
It affects regulatory compliance and assessment rates set by the FDIC.