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Federal Reserve Bank of Dallas R OB ERT D. McTEER, JR. DALLAS, TE X A S PR ES ID EN T A N D C H IE F E X E C U T I V E O F F I C E R 7 52 6 5 -5 9 0 6 December 10, 1998 Notice 98-115 TO: The Chief Executive Officer of each financial institution and others concerned in the Eleventh Federal Reserve District SUBJECT Report on Indebtedness of Executive Officers and Principal Shareholders and Their Related Interests to Correspondent Banks (Form FFIEC 004) DETAILS Executive officers and principal shareholders subject to the reporting requirements set forth under Regulation O (Loans to Executive Officers, Directors, and Principal Shareholders o f Member Banks) must file annual reports concerning their indebtedness, and the indebtedness of their related interests, to the correspondent banks of the member bank. These reports should be filed with the member bank’s board of directors by January 31 of each year. The 1999 report covers the period January 1 through December 31, 1998. The enclosed Form FFIEC 004, which has been approved by the Federal Financial Institutions Examination Council (FFIEC), is designed to assist your bank and your bank’s executive officers and principal shareholders in complying with the reporting requirements. Also, this year the form is available on the FFIEC’s Web site at <www.FFIEC.gov/ ffiec_report_forms.htm>. The required information also may be provided on other similar forms. Each member bank should notify its executive officers and principal shareholders of the reporting requirements. Persons who are no longer executive officers or principal sharehold ers at the time the report is to be filed are not required to file a report. Each member bank is also required to make available to its executive officers and principal shareholders a list of the mem ber bank’s correspondent banks. A “correspondent bank” is defined as a bank that maintains one For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) or more correspondent accounts for a member bank that, aggregated, exceed certain amounts specified in Regulation O during the calendar year. Form FFIEC 004, or any similar form that is filed by executive officers and principal shareholders, must be kept on file at the member bank for three years. Your institution is not required to make these reports available to the public; however, the reports will be reviewed by examiners during the course of an examination of the member bank. The reports filed by execu tive officers and principal shareholders are not required to be filed with the Federal Reserve Bank or the Office of the Comptroller of the Currency. ENCLOSURE A copy of Form FFIEC 004 is enclosed. Please duplicate the form in accordance with your needs. MORE INFORMATION For more information regarding Regulation O, please contact Jane Anne Schmoker at (214) 922-5101. For additional copies of this Bank’s notice, please contact the Public Affairs Department at (214) 922-5254. Sincerely yours, Form FFIEC 0 0 4 Board of Governors of the Federal Reserve System Office of the Comptroller of the Currency Federal Deposit Insurance Corporation B. OM B No. 7 1 0 0 - 0 0 3 4 (FRB) Name of Executive Officer____ or Principal Shareholder____ Submitting Report check one> 1 5 5 7 - 0 0 7 0 (OCC) Expires 1 2 / 3 1 / 1 9 9 8 3 0 6 4 - 0 0 2 3 (FDIC) c. Report on Indebtedness o f Executive O fficers and Principal Shareholders and their Related Interests to C orrespondent Banks (Form FFIEC 0 0 4 ) If the Report is Submitted for Indebtedness of a Related Interest, N am e and Address of Related Interest for Which the Report is Submitted Name of Bank to which Report is Submitted A. For the Calendar Year Ending December 3 1 , 1 9 _____ To be submitted to your b ank's board of directors by January 3 1 . City Expires 1 2 / 3 1 / 1 9 9 8 Expires 2 /2 8 / 1 9 9 9 1 5 5 0 - 0 0 7 5 (OTS) Office of Thrift Supervision Expires 6 /3 0 /2 0 0 1 To be submitted by executive officers and principal shareholders of insured banks in satisfaction of the reporting requirements of the Federal Reserve Board's Regulation O (1 2 CFR Part 2 1 5 ) and as incorporated by the Office of Thrift Supervision (12 CFR Part 5 6 3 .4 3 ), and Part 3 4 9 of the Federal Deposit Insurance Corporation's Rules and Regulations (1 2 CFR Part 3 4 9 ) w ith respect to indebtedness to correspondent banks and savings associations. State Report the M ax im um A m o u n t of Indebtedness Outstanding at A n y Tim e During the Reporting Year, Even if Fully Repaid. Please Read Carefully the Instructions on the Reverse Side of this Report. F. E. Name and Address of Correspondent Bank G. Original Amount 1 . H. Range of Interest Rates (%) Repayment Terms J. M aturity Date K. Description of Collateral (If unsecured indicate ''none") Balance ( 1 0 days prior to this report) (in thousands of dollars) Maximum Am ount of Indebtedness Outstanding in Previous Calendar Year (Indicate method used.) M. Other Terms (if unusual) (in thousands of dollars) N. I hereby certify th at the information given above is com plete. correct, and true to the best of m y kn ow ledge. Signature of official responsible for report Disclosure of Estimated Burden The burden associated w ith this information collection is estimated to vary from 1 to 2 hours per response, depending on individual circumstances. Burden estimates include the tim e for reviewing instructions, gathering and maintaining data in the required form, and completing the information collection, but exclude the tim e for compiling and maintaining business records in the normal course of a respondent's activities. A Federal agency m ay not conduct or sponsor, and an organization (or a person) is not required to respond to a collection of information, unless it displays a currently valid OMB control number. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Office of Information and Regulatory Affairs, Office of M anagem ent and Budget, Washington, D.C. 2 0 5 0 3 , and to one of the following: Secretary D?:e Signed Legislative and Regulatory Analysis Division Assistant Executive Secretary Supervision Policy Board of Governors of the Federal Reserve System Office of the Comptroller of the Currency Federal Deposit Inrurance Corporation Office of Thrift Supervision Washington, D .C . 2 0 5 5 1 Washington, D .C . 2 0 2 1 9 Washington, D .C . 2 0 4 2 9 W ashington, D.C . 2 0 5 5 2 Instructions B. Why Report person w h o is not an executive officer or principal shareholder at the time the report is required to be filed is not required to file.) The Financial Institutions Regulatory and Interest Rate Control A ; t o f 19 78 , as amended by the Garn-St. Germain Depository Institutions A ct of 1982, prohibits preferential lending by a bank to certain insiders of another bank when there is a correspondent account relationship between the banks. Regulation O, 12 CFR Part 215, w hich implements these statutes, specifies the reporting requirements necessary to ensure compliance. Terms used in this report are defined in Regulation O and 12 CFR Part 349. The O ffice of T h rift Supervision has incorporated Regulation 0 by reference at Name of Executive Officer or Principal Shareholder. Enter your name. (A An "executive o ffic e r" is defined in section 215.2(e) of Regulation 0 and generally means an individual who participates or has authority to participate (other than in the capacity of a director) in major policymaking functions of the company or bank, w hether or not the office r has an official title, the title designates the officer as an assistant, or the officer is serving w ith o u t salary or compensation. Certain categories of bank officers (e.g., vice president) are presumed in Regulation O to be executive officers unless the officer is excluded by resolution of the board of directors of the bank or by the bylaws of the bank or company from participation in major policymaking functions of 12 CFR 5 6 3.43 and applies Regulation 0 , w ith the exception o f 12 CFR 21 5.13 , to savings associations in the same manner and to the same extent as the bank or company, and the officer does not actually participate therein. if the association were a bank or member bank. As used in this report, the A ' principal shareholder o f a member b a n k" as defined in section 215.11 (a)(1) term bank should be read to include savings associations. means any person (other than an insured bank, or a foreign bank as defined in 12 USC 3101(7)) tha t, directly or indirectly, ow ns, controls, or has power to vote more than 10 percent of any class of voting securities of the member bank. The term includes a person that controls a principal shareholder (e.g., a person th a t controls a bank holding company). Shares of a bank (including a foreign bank), bank holding company, or other company owned or controlled Noncompliance w ith the reporting requirements o f Regulation 0 could resu lt in c iv il m oney penalties fo r the bank and the reporting executive o ffic e r o r principal shareholder. Who Must Report Executive officers and principal shareholders m ust report exter.sions of credit by a member of an individual's immediate fam ily are presumed to be owned or controlled by the individual for the purposes o f determining principal shareholder status. outstanding during the calendar year from correspondent banks of their insured bank. Executive officers and principal shareholders m ust also report extensions “Im m ediate fam ily’ as defined in section 215.2(g) means the spouse of an of credit from correspondent banks to their related interests. individual, the individual's minor children, and any of the individual's children How to Report The reports may be filed on Form 004, Report on Indebtedness to Correspondent Banks, or any form containing identical in orm ation. The inform ation m ust be submitted to the board of directors w ith a copy maintained at the bank. (including adult children) residing in the individual's home. For reporting purposes, only one individual in the immediate fam ily m ust file a report if that individual's report includes the required inform ation on indebtedness of his/her immediate family. C. Related Interests. If you are reporting indebtedness of a related interest, enter the name and address of the related interest. You m ust complete a separate report for each related interest. When to Report Reports m ust be submitted annually by January 31 for the calendar year ending December 31 of the previous year. A 're la te d in te re st" as defined in section 215.11(a)(2) means (1) any company controlled by a natural person, or (2) any political or campaign committee controlled by a natural person or the funds or services of w hich w ill benefit a natural person. What to Report "C o n tro l" of a company is defined generally in section 215.2(c) of Regulation Executive officers and principal shareholders m ust report all indebtedness to correspondent banks, including indebtedness of their related ;nterests. Loans that were outstanding at any tim e during the reporting calendar year m ust be O as ow nership or control of 25 percent or more of a com pany's outstanding voting shares. Control is presumed, however, in certain cases where less than 25 percent ownership exists. reported, even if the y have been paid off. The term "indebtedness" includes any extension o f credit (as defined in Completing the Form section 2 1 5 .3 of Regulation O), but does not include: (1) commercial paper, A. bonds and debentures issued in the ordinary course of business; and (2) consumer credit in an aggregate amount of $ 5 ,000 or less from each Report Date. Enter the calendar year for which you are repcrting. correspondent bank, provided the credit is incurred under term s tha t are not more favorable than those offered the general public. D. Reporting Bank. Enter the name of the bank in w hich you are an executive office r or principal shareholder. E. Correspondent Bank. Enter the correspondent bank's name and address. You may report indebtedness from more than one correspondent bank on the same form . You also may include the loan number or any other relevant identifying inform ation in this colum n. A “correspondent b a nk" generally means a bank th a t maintains one or more correspondent accounts for the o ffice r's or principal shareholder's bank th a t in the aggregate exceed an average daily balance during the reporting calendar year of $ 1 0 0 ,0 0 0 or 0.5 percent of the o ffice r's or principal shareholder’s bank's total deposits (as reported in the bank's first Consolidated Report of Condition or T h rift Financial Report during the calendar year), whichever is smaller. A ll insured banks are required b y la w to m ake available to their executive officers and princip al shareholders a lis t o f the ir correspondent banks. F. Original Am ount. Enter the original am ount of the loan. If the indebtedness is a line of credit, report the m aximum authorized amount. G. Range o f Interest Rates. Enter the range of interest rates charged throughout the reporting year. H. Repayment Terms. Describe the repayment terms. I. M aturity Date. Enter the m aturity date. J. Description of Collateral. If the loan is secured, describe the collateral and its value. K. Balance. Enter the am ount o f indebtedness outstanding to the correspondent bank as o f ten business days before the date of the report. If this balance is not available, or cannot be readily ascertained by the filing date, estimate the amount and provide the actual amount to the board of directors w ith in thirty days. L. Maximum Am ount o f Indebtedness. The maximum am ount of indebtedness is either (1) the highest outstanding indebtedness during the calendar year for which the report is made, or (2) the highest end of the month indebtedness outstanding during the calendar year fo r which the report is made. You m ust consistently use the same method for all indebtedness to the same correspondent bank. You also m ust indicate whether the maximum amount was determined as of the end of the m onth or on a daily basis. M. Other Terms. Describe any unusual terms or other conditions of the loan. N. Signature. Sign and date the report.
