12 C.F.R. § 1410.3 Calculation and reporting of premiums due.
Title 12 - Banks and Banking
(a) Premium base. For purposes of computing the annual premium, each insured bank shall: (1) Report its premium base for each category of loan described in paragraph (a)(2) of this section based on the total of the average annual principal balances of: (i)(A) Loans of each direct lending association that were able to be made because the direct lending association is receiving, or has received, funds provided through the insured bank; (B) Loans of each other financing institution that were able to be made because the other financing institution is receiving, or has received, funds provided through the insured bank; and, (C) The bank's loans, other than loans made to direct lending associations and other financing institutions. (ii) For purposes of this section, loans of an other financing institution were able to be made because of funds provided through the insured bank only if they are loans which resulted from funding provided through the insured bank and which are pledged to or discounted by the insured bank. (2) Segregate the loans of each entity described in paragraph (a) of this section into: (i) Loans in accrual status, excluding the guaranteed portions of State and Federal government-guaranteed loans; (ii) The guaranteed portions of State government-guaranteed loans that are in accrual status; (iii) The guaranteed portions of Federal government-guaranteed loans that are in accrual status; and, (iv) Nonaccrual loans. (b) Calculating the 1989 premium payment. The 1989 premium payment shall be equal to the sum of: (1) The total annual average principal outstanding for calendar year 1989 on the loans in accrual status as described in paragraph (a)(2)(i) of this section of each entity described in paragraph (a)(1) of this section multiplied by 0.0015; (2) The total annual average principal outstanding for calendar year 1989 on loans in accrual status as described in paragraph (a)(2)(ii) of this section of each entity described in paragraph (a)(1) of this section multiplied by 0.0003; and, (3) The total annual average principal outstanding for calendar year 1989 on loans in accrual status as described in paragraph (a)(2)(iii) of this section of each entity described in paragraph (a)(1) of this section multiplied by 0.00015. (c) Calculating the premium payment for 1990 and subsequent years. Except as provided in paragraph (d) of this section, the annual premium payment for 1990 and for each subsequent year shall be equal to the sum of: (1) The total annual average principal outstanding for each calendar year on the loans in accrual status as described in paragraph (a)(2)(i) of this section of each entity described in paragraph (a) of this section multiplied by 0.0015; (2) The total annual average principal outstanding for each calendar year on the loans in accrual status as described in paragraph (a)(2)(ii) of this section of each entity described in paragraph (a)(1) of this section multiplied by 0.0003; (3) The total annual average principal outstanding for each calendar year on the loans in accrual status as described in paragraph (a)(2)(iii) of this section of each entity as described in paragraph (a)(1) of this section multiplied by 0.00015; and, (4) The total annual average principal outstanding for each calendar year on the nonaccrual loans as described in paragraph (a)(2)(iv) of this section of each entity described in paragraph (a)(1) of this section multiplied by 0.0025. (d) Secure base amount. Upon reaching the secure base amount determined by the Corporation in accordance with section 5.55 of the Act, the annual premium to be paid by each insured bank, computed in accordance with paragraph (c) of this section, shall be reduced by a percentage determined by the Corporation so that the aggregate of the premiums payable by all of the Farm Credit banks for the following calendar year is sufficient to ensure that the Insurance Fund balance is maintained at not less than the secure base amount. The Corporation shall announce any such percentage no later than December 31 of the year prior to the January in which such premiums are to be paid. [56 FR 3201, Jan. 29, 1991; 56 FR 13211, Mar. 29, 1991]
Title 12: Banks and Banking
PART 1410—PREMIUMS
§ 1410.3 Calculation and reporting of premiums due.
