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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institution insured by the Corporation, up to but not exceeding $5,000 to any insured member* Accounts which cannot be withdrawn or the value thereof paid to the holder until all of the liabilities of the institution have been fully liquidated and paid upon the winding up of the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*
@FedFRASER