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DEFINITIONS OP TEEMS USED IN CONNECTION WITH INSURANCE REQUIREMENTS
OF THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION

Insured account* wAn *insured account1 is a withdrawable or repurchasable share, ..investment certificate, or deposit aocount held
by an insured member in an institution insured by the Corporation,
up to but not exceeding $5,000 to any insured member* Accounts
which cannot be withdrawn or the value thereof paid to the holder
until all of the liabilities of the institution have been fully
liquidated and paid upon the winding up of the institution are not
insurable • • •lf
Account of an insured member• wAn faccount of an insured member1 is
the total amount credited to any member in withdrawable or repurchasable accounts, whether or not subject to any pledge, and whether
insured in full or only in part# The total insurance which any
insured member may have in any one insured institution is $5,000,
whether the insured member has one or more insurable accounts. • • •ff
Aocount of an insurable type• For the purpose of determining
insurance premiums, an "account of an insurable type11 is the same
as an "account of an insured member" as defined above*
Creditor obligation* A creditor obligation is an obligation which
establishes a debtor-creditor relationship, and does not include
a contract or trust which will merely subject an institution to
damages if the contract or trust is not performed •— for example,
a loan closed but not entirely paid out*




Federal Savings and Loan Insurance Corporation
Comparison of Potential Liability and Reserves
JLS of June 30: 1935 to 1943
(Amounts in millions of dollars)

June 30

1935
1936
1937
1938
1939
1940
1941
1942
1943

l/
""
2/
~"

Potential .
Liability!/

$

Ratio of Reserves
Reserves and * and Earned Surplus
Earned Surplus^/
to Potential
Liability
(Per cent)

370

$ 1.6

640

3.8
8.2

1,101
1,400
1,725
2,056
2,464
2,772
3,181

13.1
18.3
23.6
29.4
32.7
41.4

.43
.60
.75
.94
1.06
1.15
1.19
1.18
1.30

Total of all insured accounts and creditor obligations of all
insured institutions.
Het worth less capital• Includes reserve required by law,
reserve for contingencies* and earned surplus*