harmonize with the bank's counters and fixtures or where it cannot be adequately displayed because of the type of construction of the bank's counters or fixtures.

The Corporation shall furnish to banks an order blank for use in procuring the official signs. Any bank which promptly, after receipt of the order blank, fills it in, executes it, and properly directs and forwards it to the Federal Deposit Insurance Corporation, Washington, D. C., shall not be deemed to have violated this regulation on account of not displaying an official sign or signs, unless the bank shall omit to display such official sign or signs after same have been tendered to the bank through the instrumentality of the United States mail or otherwise. [Paragraph (b) amended Jan. 27, 1944, 9 F.R. 2324]

§ 303.2 Mandatory requirements with regard to the official advertising statement and manner of use-(a) Insured banks to include official advertising statement in advertisements of types enumerated. Each insured bank shall include the official advertising statement, prescribed in paragraph (b) of this section, in advertisements issued or caused to be issued by it after November 20, 1936, of the types enumerated in paragraph (c) of this section as being of the class in which the official statement is required to be included.

No bank which becomes an insured bank after October 26, 1936, is required to include the official advertising statement in such advertisements until 60 days after its first day of operation as an insured bank.

In cases where the Board of Directors of the Federal Deposit Insurance Corporation shall find the application to be meritorious; that there has been no neglect or wilful violation in the observance of this paragraph, and that undue hardship will result by reason of its requirements, the Board of Directors may grant a temporary exemption from its provisions to a particular bank upon its written application setting forth the facts.

In cases where advertising copy not including the official advertising statement is on hand on the date the requirements of this paragraph become operative, the insured bank may cause the official advertising statement to be in

PART 306-AGENTS FOR SERVICE OF PROCESS [REVISED]

§ 306.1 Agents for service of process. The board of directors has designated an agent upon whom service of process may be made in each state, territory and other jurisdiction in which an insured bank is located. A current list containing the names and addresses of such agents is kept on file in the office of the Corporation, Washington, D. C.; a current list of such agents in each Federal Deposit Insurance district is kept on file in the office of the supervising examiner for the district; and, the name and address of such agent for each state, territory and jurisdiction are on file with the secretary of state or corresponding official in such state, territory or jurisdiction. Persons desiring to serve process upon the Federal Deposit Insurance Corporation may obtain the name and address of the proper agent by communicating with such local official, the supervising examiner for the district, or the Federal Deposit Insurance Corporation, Washington, D. C. (49 Stat. 692; 12 U.S.C. 264 (j) "Fourth”). [Res., Jan. 27, 1944, 9 F.R. 2324]

Sec.

309.2 Steps to be taken and records to be furnished the Corporation by a member bank in liquidation (both State and national).

309.3 Steps to be taken and records to be furnished the Corporation where deposits are assumed by another insured bank.

AUTHORITY: §§ 309.1 to 309.3, inclusive, issued under 49 Stat. 688, 690, 693; 12 U.S.C. 264 (h), (i) and (j).

SOURCE: §§ 309.1 to 309.3, inclusive, contained in Regulations, Federal Deposit Insurance Corporation, Mar. 17, 1944, 9 F.R. 4927.

§ 309.1

Steps to be taken and records to be furnished the Corporation by an insured nonmember bank in liquidation. (a) Whenever a nonmember bank goes into liquidation and its insured status has not been terminated by the board' and its deposit liabilities are not assumed by another insured bank, it shall terminate its status as an insured bank in accordance with the provisions of paragraph (1), subsection (i) of section 12B of the Federal Reserve Act, as amended." effect such termination the bank shall adopt a resolution in form substantially as follows:

To

1 Board -means board of directors of the Federal Deposit Insurance Corporation.

2 The Federal Deposit Insurance Act (12 U.S.C. 264) provides in subsection (1) (1), in part, as follows: "Any insured bank (Except a national member bank or State member bank) may, upon not less than ninety days' written notice to the Corporation, and to the Reconstruction Finance Corporation if it owns or holds as pledgee any preferred stock, capital notes, or debentures of such bank, terminate its status as an insured bank. * After the termination of the insured status of any bank the insured deposits of each depositor in the bank on the date of such termination, less all subsequent withdrawals from any deposits of such depositor, shall continue for a period of two years to be insured, and the bank shall continue to pay to the Corporation assessments as in the case of an insured bank during such period. [Italics supplied.]

Deposit Insurance Corporation of a copy of this resolution;3 (2) That

(Cashier or other officer)

is hereby directed to immediately forward a certified copy of this resolution to the Federal Deposit Insurance Corporation, Washington, D. C., which shall constitute the notice of termination prescribed in paragraph (1), subsection (i) of said section 12B.

Upon receipt of a certified copy of the aforesaid resolution the Corporation will promptly advise the bank of the date of the receipt thereof, and confirm the date of the termination of its insured status.

Thereupon, and prior to the termination date, the bank shall give notice to its depositors of the termination of its insured status. Such notice shall be (1) mailed to each depositor at his last address of record as shown upon the books of the bank; (2) published in not less than two issues of a local newspaper of general circulation, and (3) in form substantially as follows:

(There may be included in such notice any additional information or advice the bank may deem desirable.)

(b) The bank shall furnish to the Corporation the following records and information:

(1) An affidavit of the mailing and an affidavit of the publication of the notice to depositors. The affidavit of mailing should be executed by the person mailing the notice and should state (i) the date of mailing, (ii) that it was mailed to each depositor at his last address of record as shown on the books of the bank and (iii) that a copy of the notice as mailed is attached.

If the bank desires to fix a later date of termination, it may do so as the law prescribes only the minimum notice period which is 90 days.

(2) A certified copy of the resolutions pursuant to which the bank was placed in liquidation and/or any other document or instrument required by law to place the bank in liquidation.

4

(3) The bank shall continue to file certified statements and pay assessments thereon for the period its deposits are insured, as provided by the Federal Deposit Insurance Law: Provided, That after the bank shall have paid in full its deposit liabilities and the assessment to the Corporation required to be paid for the semiannual period in which its deposit liabilities are paid in full, and after it shall under applicable law have ceased to have authority to transact a banking business and to have existence except for the purpose of, and to the extent permitted by law for winding up its affairs, it shall not be required to file further certified statements nor to pay further assessments.

(4) When the deposit liabilities of the bank shall have been paid in full, the bank shall furnish to the Corporation an affidavit executed by two of its officers. which affidavit shall state the fact that the deposit liabilities have been paid in full and give the date of the final payment thereof."

the

(5) Where the bank has unclaimed deposits the affidavit to be furnished pursuant to subparagraph (4) of this paragraph, shall further state amount of such unclaimed deposits and the disposition made of the funds to be held to meet such claims. For assessment purposes, the following will be considered as payment of such unclaimed deposits, viz:

(i) The transfer of cash funds in an amount sufficient to pay such unclaimed and unpaid deposits to the public official authorized under the law to receive the same; or

(ii) If no provision is made by law for the transfer of funds to a public official, the transfer of cash funds or compensatory assets to an insured bank in an amount sufficient to pay the unclaimed and unpaid deposits in consideration of such insured bank assuming the payment thereof: Provided, That, prior to

See footnote 2, page 1647.

The issuance of a draft or officer's check does not constitute the discharge of a deposit liability or relieve the bank of assessment until such draft or other evidence of payment has been duly presented for payment and has been paid.

such transfer, the liquidating bank shall have given notice, as hereinafter provided, to the owners of the unclaimed deposits of the intended transfer and a reasonable time shall have elapsed after the giving of such notice to enable the depositors to obtain their deposits. Such notice shall be mailed to each depositor and shall be published in a local newspaper of general circulation. The notice shall advise such depositors of the liquidation of the bank; shall request them to call for and accept payment of their deposits; and shall state the disposition to be made of their deposits upon their failure to promptly claim the

same.

If such unclaimed and unpaid deposits are disposed of as provided in (i) above, a certified copy of the public official's receipt issued for such funds shall be furnished to the Corporation. If such unclaimed and unpaid deposits are disposed of as provided in (ii) above, an affidavit of the publication and of the mailing of the notice to depositors, together with a copy of such notice, and a certified copy of the contract of assumption shall be furnished to the Corporation.

(6) The liquidating bank shall advise the Corporation of the date on which the authority or right of the bank to do a banking business shall have terminated and the method or means whereby such termination shall have been effected, that is, whether such termination has been effected by the surrender of its charter, by the cancellation of its authority or license to do a banking business by the supervisory authority, or otherwise."

§ 309.2 Steps to be taken and records to be furnished the Corporation by a member bank in liquidation (both State and national). (a) Whenever a bank which is a member of the Federal Reserve System goes into liquidation and its insured status has not been terminated by the board' and its deposit liabilities are not assumed by another insured bank, it shall notify its depositors of the

As the governing law of the various jurisdictions is not uniform in this respect, it is suggested that the applicable statute be consulted and that this Corporation be advised of the manner in which the termination or cancellation of such authority has been effected.

See footnote 1, page 1647.

date of the termination of its insured status. Such notice shall be in the form prescribed in § 309.1 and shall be given at the time and in the manner therein provided.

(b) The bank shall furnish to the Corporation the records and information mentioned in, and comply with the requirements of § 309.1 (b).

§ 309.3 Steps to be taken and records to be furnished the Corporation where deposits are assumed by another insured bank. (a) Whenever the deposit liabilities of an insured bank are assumed by another insured bank, the bank whose deposits are assumed or the assuming bank as its agent shall give notice to its depositors of such assumption. Such notice shall be (1) mailed to each depositor at his last address of record as shown upon the books of the bank; (2) published in not less than two issues of

Said subsection (i) (2) provides, in part, as follows: "Whenever a member bank shall cease to be a member of the Federal Reserve System, its status as an insured bank shall, without notice or other action by the board of directors, terminate on the date the bank shall cease to be a member of the Federal Reserve System, with like effect as if its insured status had been terminated on said date by the board of directors after proceedings under paragraph (1) of this subsection." Section 10, subsection (c) of Regu-. lation H of the Board of Governors of the Federal Reserve System provides, in part, as follows: "A bank's withdrawal from membership in the Federal Reserve System is effective on the date or which the Federal Reserve bank stock held by it is duly canceled."

Said subsection (1) (4) provides, in part, as follows: "Whenever the liabilities of an insured bank for deposits shall have been assumed by another insured bank or banks, the insured status of the bank whose liabilities are so assumed shall terminate on the date of receipt by the Corporation of satisfactory evidence of such assumption with like effect as if its insured status had been terminated on said date by the board of directors after proceedings under paragraph (1) of this subsection: Provided, That if the bank whose liabilities are so assumed gives to its depositors notice of such assumption within thirty days after such assumption takes effect by publication or by any reasonable means, in accordance with regulations to be prescribed by the board of directors, the insurance of its deposits shall terminate at the end of six months from the date such assumption takes effect, and such bank shall thereupon be relieved of all future obligations to the Corporation, including the obligation to pay future assessments."

(There may be included in such notice any additional information or advice the bank may deem desirable.)

The bank shall furnish to the Corporation an affidavit of mailing and an affidavit of publication of the notice to depositors. The affidavit of mailing should be in the form prescribed in § 309.1 (b) (1).

(b) The liquidating bank shall continue to file certified statements and pay assessments thereon for the period its deposits are insured, as provided by the Federal Deposit Insurance Law: Provided, That if the liquidating bank, or the assuming bank as its agent, has given the requisite notice to the depositors of the assumption of the deposit liabilities within thirty days after such assumption takes effect, then the liquidating bank shall file a final certified statement, which statement shall be executed to reflect its average daily deposit liabilities for the semiannual period in which its deposit liabilities are assumed and shall pay to the Corporation the normal assessment thereon."

(c) The Corporation will consider receipt of the following as satisfactory evidence of such assumption:

10 If this notice is given by the assuming bank as agent for the liquidating bank, it may add its own name designating itself as agent.

11 See § 302.3 of this chapter.

(1) A certified copy of the resolution (i) duly authorizing the bank's officers to enter into a contract for the sale of the bank's assets to another insured bank upon the consideration of the assumption by it of the deposit liabilities, and (ii) duly placing the bank in liquidation.

(2) A certified copy of the assumption agreement, provided it contains an express undertaking by an insured bank to pay the deposit liabilities of the bank going into liquidation.

(d) The bank shall furnish to the Corporation the information called for in § 309.1 (b) (6).