Consolidated Financial Statements for Bank Holding Companies

Board of Governors of the Federal Reserve System

Instructions for Preparation of

Consolidated Financial Statements for
Bank Holding Companies
Reporting Form FR Y–9C
Reissued March 2007

Contents for
Y-9C Instructions

Organization of the Instruction Book
The instruction book is divided into three sections:
(1) The General Instructions describing overall reporting requirements.
(2) The Line Item Instructions for each schedule of
the report for the consolidated bank holding company.
(3) The Glossary presenting, in alphabetical order, definitions and discussions of accounting treatments
under generally accepted accounting principles
(GAAP) and other topics that require more extensive
treatment than is practical to include in the line item
instructions or that are relevant to several line items
or to the overall preparation of these reports.
In determining the required treatment of particular transactions or portfolio items or in determining the defini-

FR Y-9C
Contents March 2007

tions and scope of the various items, the General Instructions, the line item instructions, and the Glossary (all of
which are extensively cross-referenced) must be used
jointly. A single section does not necessarily give the
complete instructions for completing all the items of the
reports. The instructions and definitions in section (2) are
not necessarily self-contained; reference to more detailed
treatments in the Glossary may be needed. However, the
Glossary is not, and is not intended to be, a comprehensive discussion of accounting principles or
reporting.
Additional copies of this instruction book may be obtained
from the Federal Reserve Bank in the district where the
reporting bank holding company submits its FR Y-9C
reports, or may be found on the Federal Reserve Board’s
public website (www.federalreserve.gov).

Contents-1

Contents

GENERAL INSTRUCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS
FOR BANK HOLDING COMPANIES
Who Must Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Reporting Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Exemptions from Reporting the Bank Holding Company Statements . . . . . . . . . . . . . . . . .
C. Shifts in Reporting Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

GEN-1
GEN-1
GEN-2
GEN-2

Where to Submit the Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

GEN-2

When to Submit the Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

GEN-2

How to Prepare the Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Applicability of GAAP, Consolidation Rules and SEC Consistency . . . . . . . . . . . . . . . . . .
Scope of the ‘‘consolidated bank holding company’’ to be reported in the
submitted reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rules of consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reporting by type of office (for bank holding companies with foreign offices) . . . . . . . .
Exclusions from coverage of the consolidated report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Report Form Captions, Non-applicable Items and Instructional Detail . . . . . . . . . . . . . . . .
C. Rounding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D. Negative Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
E. Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F. Verification and Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
G. Amended Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

GEN-3
GEN-3

Contents-2

Contents

GEN-3
GEN-3
GEN-4
GEN-4
GEN-4
GEN-5
GEN-5
GEN-6
GEN-6
GEN-6

FR Y-9C
March 2007

Contents

LINE ITEM INSTRUCTIONS FOR THE CONSOLIDATED FINANCIAL STATEMENTS
FOR BANK HOLDING COMPANIES
Schedule HI—Consolidated Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HI-1
Schedule HI-A—Changes in Equity Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HI-A-1
Schedule HI-B—Charge-Offs and Recoveries on Loans and Leases and Changes
in Allowance for Loan and Lease Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HI-B-1
Notes to the Income
- Statement—Predecessor Financial Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ISnotes-P-1
Notes to the Income Statement—Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ISnotes-1
Schedule HC—Consolidated Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-B—Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-C—Loans and Lease Financing Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-D—Trading Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-E—Deposit Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-F—Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-G—Other Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-H—Interest Sensitivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-I—Insurance-Related Underwriting Activities (Including Reinsurance) . . . . . .
Schedule HC-K—Quarterly Averages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-L—Derivatives and Off-Balance Sheet Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-M—Memoranda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-N—Past Due and Nonaccrual Loans, Leases, and Other Assets . . . . . . . . . . . . . .
Schedule HC-P—Closed-End 1-4 Family Residential Mortage Banking Activities. . . . . . . . . .
Schedule HC-Q—Financial Assets and Liabilities Measured at Fair Value . . . . . . . . . . . . . . . . .
Schedule HC-R—Regulatory Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-S—Servicing, Securitization, and Asset Sale Activities . . . . . . . . . . . . . . . . . . . . .

HC-1
HC-B-1
HC-C-1
HC-D-1
HC-E-1
HC-F-1
HC-G-1
HC-H-1
HC-I-1
HC-K-1
HC-L-1
HC-M-1
HC-N-1
HC-P-1
HC-Q-1
HC-R-1
HC-S-1

Notes to the Balance
Sheet—Predecessor Financial Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BSnotes-P-1
Notes to the Balance Sheet—Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BSnotes-1

FR Y-9C
Contents March 2007

Contents-3

Contents

GLOSSARY
Acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting Errors, Corrections of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting Estimates, Changes in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting Principles, Changes in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued Interest Receivable Related to Credit Card Securitizations . . . . . . . . . . . . . . . . . . . . . . .
Acquisition, Development, or Construction (ADC) Arrangements . . . . . . . . . . . . . . . . . . . . . . . . .
Agreement Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for Loan and Lease Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applicable Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Associated Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ATS Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bankers’ Acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bank-Owned Life Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banks, U.S. and Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bill-of-Lading Draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Borrowings and Deposits in Foreign Offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brokered Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brokered Retail Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Broker’s Security Draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Combinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Call Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capitalization of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Carrybacks and Carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certificate of Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in Accounting Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in Accounting Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial Banks in the U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commercial Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodity or Bill-of-Lading Draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common Stock of Unconsolidated Subsidiaries, Investments in . . . . . . . . . . . . . . . . . . . . . . . . . . .
Continuing Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contractholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate Joint Venture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corrections of Accounting Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contents-4

Contents

GL- 1
GL- 1
GL- 2
GL- 3
GL- 3
GL- 3
GL- 3
GL- 4
GL- 4
GL- 5
GL- 5
GL- 5
GL- 5
GL- 8
GL- 8
GL- 9
GL- 9
GL-10
GL-10
GL-11
GL-11
GL-13
GL-13
GL-13
GL-13
GL-13
GL-13
GL-13
GL-13
GL-13
GL-13
GL-13
GL-13
GL-13
GL-13
GL-14
FR Y-9C
March 2007

Contents

Coupon Stripping, Treasury Receipts, and STRIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Custody Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dealer Reserve Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred Compensation Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Demand Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depository Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Derivative Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Domestic Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Domicile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Edge and Agreement Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity-Indexed Certificates of Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity Method of Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Extinguishments of Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Extraordinary Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Funds Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federally-Sponsored Lending Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees, Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreclosed Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign Central Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign Currency Transactions and Translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign Debt Exchange Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign Governments and Official Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forward Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Functional Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Futures, Forward, and Standby Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hypothecated Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IBF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FR Y-9C
Contents March 2007

GL-14
GL-14
GL-14
GL-14
GL-16
GL-16
GL-16
GL-17
GL-22
GL-27
GL-27
GL-27
GL-28
GL-28
GL-28
GL-28
GL-29
GL-30
GL-30
GL-30
GL-31
GL-31
GL-32
GL-32
GL-32
GL-34
GL-34
GL-34
GL-35
GL-37
GL-37
GL-37
GL-37
GL-37
GL-37
GL-37
GL-38
GL-38
Contents-5

Contents

Insurance Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insurance Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insurance Underwriting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-Bearing Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Internal-Use Computer Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International Banking Facility (IBF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in Common Stock of Unconsolidated Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . .
Joint Venture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lease Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Limited-Life Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan Impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans Secured By Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mandatory Convertible Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Market (Fair)Value of Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mergers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Money Market Deposit Account (MMDA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mortgages, Residential, Participations in Pools of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NOW Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nonaccrual Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noninterest-Bearing Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nontransaction Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes and Debentures Subordinated to Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Offsetting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
One-Day Transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Organization Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Real Estate Owned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overdraft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Participations in Acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Participations in Pools of Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pass-through Reserve Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contents-6

Contents

GL-42
GL-42
GL-42
GL-42
GL-42
GL-42
GL-42
GL-43
GL-44
GL-44
GL-44
GL-46
GL-47
GL-47
GL-47
GL-48
GL-48
GL-49
GL-49
GL-49
GL-49
GL-49
GL-49
GL-49
GL-49
GL-52
GL-52
GL-52
GL-52
GL-53
GL-53
GL-53
GL-53
GL-53
GL-53
GL-53
GL-53
GL-53
FR Y-9C
March 2007

Contents

Perpetual Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Perpetual Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Policyholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pooling of Interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pools of Residential Mortgages, Participations in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pools of Securities, Participations in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preauthorized Transfer Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premiums and Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchased Impaired Loans and Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Put Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real Estate, Loan Secured by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reciprocal Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reinsurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reinsurance Recoverables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Renegotiated ‘‘Troubled’’ Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reorganizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repurchase Agreements to Maturity and Long-Term Repurchase Agreements . . . . . . . . . . . . .
Repurchase/Resale Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserve Balances, Pass-through . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales of Assets for Risk-Based Capital Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Savings Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities Borrowing/Lending Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities, Participations in Pools of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Separate Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Servicing Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement Date Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shell Branches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Standby Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Standby Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Start-Up Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
STRIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subordinated Notes and Debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
‘‘Super NOW’’ Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FR Y-9C
Contents March 2007

GL-54
GL-54
GL-54
GL-54
GL-54
GL-54
GL-54
GL-54
GL-54
GL-55
GL-55
GL-56
GL-56
GL-56
GL-56
GL-56
GL-57
GL-57
GL-57
GL-57
GL-58
GL-58
GL-62
GL-62
GL-63
GL-64
GL-64
GL-64
GL-65
GL-65
GL-65
GL-65
GL-65
GL-65
GL-66
GL-66
GL-66
GL-67
Contents-7

Contents

Suspense Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Syndications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Telephone Transfer Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Term Federal Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade Date and Settlement Date Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfers of Financial Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Traveler’s Letter of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Troubled Debt Restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trust Preferred Securities as Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trust Preferred Securities Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. Territories and Possessions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation Allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
When-Issued Securities Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yield Maintenance Dollar Repurchase Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FR Y-9C Checklist for Verifying Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FR Y-9C Federal Reserve Edits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Contents-8

Contents

GL-67
GL-67
GL-67
GL-67
GL-67
GL-67
GL-68
GL-68
GL-68
GL-71
GL-71
GL-72
GL-73
GL-73
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FR Y-9C
March 2007

INSTRUCTIONS FOR PREPARATION OF

Financial Statements
for Bank Holding Companies
FR Y–9C

GENERAL INSTRUCTIONS
Who Must Report
A. Reporting Criteria
All bank holding companies, regardless of size, are
required to submit financial statements to the Federal
Reserve, unless specifically exempted (see description of
exemptions below).
The specific reporting requirements for each bank holding company depend upon the size of the holding company, or other specific factors as determined by the
appropriate Federal Reserve Bank. Bank holding companies must file the appropriate forms as described below:
(1) Bank Holding Companies with Total Consolidated Assets of $500 Million or More. Bank holding companies with total consolidated assets of
$500 million or more (the top tier of a multi-tiered
holding company, when applicable) must file:
(a) the Consolidated Financial Statements for Bank
Holding Companies (FR Y-9C) quarterly, as of
the last calendar day of March, June, September,
and December.

unless the top-tier holding company is exempt from
reporting the FR Y-9C. If a top-tier holding company
is exempt from reporting the FR Y-9C, then the
lower-tier holding company (with total consolidated assets of $500 million or more) must file the
FR Y-9C.
In addition, such tiered bank holding companies,
regardless of the size of the subsidiary bank holding
company, must also submit, or have the bank holding
company subsidiary submit, a separate FR Y-9LP for
each lower-tier bank holding company.
(2) Bank Holding Companies that are Employee Stock
Ownership Plans. Bank holding companies that are
employee stock ownership plans (ESOPs) as of the
last calendar day of the calendar year must file the
Financial Statements for Employee Stock Ownership
Plan Bank Holding Companies (FR Y-9ES) on an
annual basis, as of December 31. No other FR Y-9
series form is required. However, bank holding
companies that are subsidiaries of ESOP bank holding
companies (i.e., a tiered bank holding company) must
submit the appropriate FR Y-9 series in accordance
with bank holding company reporting requirements.

Each bank holding company that files the FR Y-9C
must submit the FR Y-9LP for its parent company.

(3) Bank Holding Companies with Total Consolidated Assets of Less Than $500 Million. Bank
holding companies with total consolidated assets of
less than $500 million must file the Parent Company
Only Financial Statements for Small Bank Holding
Companies (FR Y-9SP) on a semiannual basis, as of
the last calendar day of June and December.1

For tiered bank holding companies. When bank
holding companies with total consolidated assets of
$500 million, or more, own or control, or are owned
or controlled by, other bank holding companies (i.e.,
are tiered bank holding companies), only the top-tier
holding company must file the FR Y-9C for the
consolidated bank holding company organization

1. The Reserve Bank with whom the reporting bank holding company
files its reports may require that a bank holding company with total
consolidated assets of less than $500 million submit the FR Y-9C and the
FR Y-9LP reports to meet supervisory needs. Reserve Banks will consider
such criteria including, but not limited to, whether the holding company
(1) is engaged in significant nonbanking activities either directly or through
a nonbank subsidiary; (2) conducts significant off-balance-sheet activities,

(b) the Parent Company Only Financial Statements
for Large Bank Holding Companies (FR Y-9LP)
quarterly, as of the last calendar day of March,
June, September, and December.

FR Y9C
General Instructions

March 2007

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General Instructions

For tiered bank holding companies. When bank
holding companies with total consolidated assets of
less than $500 million, own or control, or are owned
or controlled by, other bank holding companies (i.e.,
are tiered bank holding companies), the top-tier
holding company must file the FR Y-9SP for the
top-tier parent company of the bank holding company. In addition, such tiered bank holding companies must also submit, or have the bank holding
company subsidiary submit, a separate FR Y-9SP for
each lower-tier bank holding company.
When a bank holding company that has total consolidated assets of less than $500 million is a subsidiary of
a bank holding company that files the FR Y-9C, the
bank holding company that has total consolidated assets
of less than $500 million would report on the FR Y-9LP
rather than the FR Y-9SP.
The instructions for the FR Y-9LP, FR Y-9ES, and the
FR Y-9SP are not included in this booklet but may be
obtained from the Federal Reserve Bank in the district
where the bank holding company files its reports, or may
be found on the Federal Reserve Board’s public website
(www.federalreserve.gov/boarddocs/reportforms).

B. Exemptions from Reporting the
Bank Holding Company Financial
Statements
The following bank holding companies do not have to
file bank holding company financial statements:
(1) a bank holding company that has been granted an
exemption under Section 4(d) of the Bank Holding
Company Act; or
(2) a ‘‘qualified foreign banking organization’’ as defined
by Section 211.23(a) of Regulation K (12 CFR
211.23(a)) that controls a U.S. subsidiary bank.
including securitizations or managing or administering assets for third
parties, either directly or through a nonbank subsidiary; or (3) has a
material amount of debt or equity securities (other than trust preferred
securities) outstanding that are registered with the Securities and Exchange
Commission.
In addition, any bank holding company that is not subject to the Federal
Reserve’s Capital Adequacy Guidelines, but nonetheless elects to comply
with the guidelines, are required to file a complete FR Y-9C and FR Y-9LP
report, and generally would not be permitted to revert back to filing the FR
Y-9SP report in any subsequent periods.

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Bank holding companies that are not required to file
under the above criteria may be required to file this report
by the Federal Reserve Bank of the district in which they
are registered.

C. Shifts in Reporting Status
A top-tier bank holding company that reaches $500 million or more in total consolidated assets as of June 30 of
the preceding year must begin reporting the FR Y-9C and
the FR Y-9LP in March of the current year, and any
lower-tier bank holding companies must begin reporting
the FR Y-9LP in March of the current year. If a top-tier
bank holding company reaches $500 million or more in
total consolidated assets due to a business combination, a
reorganization, or a branch acquisition that is not a
business combination, then the bank holding company
must begin reporting the FR Y-9C and the FR Y-9LP
with the first quarterly report date following the effective
date of the business combination, reorganization, or
branch acquisition, and any lower-tier bank holding
companies must begin reporting the FR Y-9LP with the
first quarterly report date following the effective date. In
general, once a bank holding company reaches or exceeds
$500 million in total consolidated assets and begins filing
the FR Y-9C and FR Y-9LP, it should file a complete FR
Y-9C and FR Y-9LP going forward (and any lower-tier
bank holding companies should file a complete FR
Y-9LP going forward). If a bank holding company’s total
consolidated assets should subsequently fall to less than
$500 million for four consecutive quarters, then the bank
holding company may revert to filing the FR Y-9SP (and
any lower-tier bank holding companies may revert to
filing the FR Y-9SP).

Where to Submit the Reports
Electronic Submission
All bank holding companies must submit their completed
reports electronically. Bank holding companies should contact their district Reserve Bank or go to www.reportingandreserves.org for procedures for electronic submission.

When to Submit the Reports
The Consolidated Financial Statements for Bank Holding
Companies (FR Y-9C) are required to be submitted as of
March 31, June 30, September 30, and December 31. The
submission date for bank holding companies is 40 calendar days after the March 31, June 30, and September 30 as
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General Instructions

of dates unless that day falls on a weekend or holiday
(subject to timely filing provisions). The submission date
for bank holding companies is 45 calendar days after the
December 31 as of date. For example, the June 30 report
must be received by August 9, and the December 31 report
by February 14.
The term ‘‘submission date’’ is defined as the date by
which the Federal Reserve must receive the bank holding
company’s FR Y-9C.
If the submission deadline falls on a weekend or holiday,
the report must be received on the first business day after
the Saturday, Sunday, or holiday. Earlier submission aids
the Federal Reserve in reviewing and processing the
reports and is encouraged. No extensions of time for
submitting reports are granted.
The reports are due by the end of the reporting day on
the submission date (5:00 P.M. at each district Reserve
Bank).

How to Prepare the Reports
A. Applicability of GAAP, Consolidation
Rules and SEC Consistency
Bank holding companies are required to prepare and file
the Consolidated Financial Statements for Bank Holding Companies in accordance with generally accepted
accounting principles (GAAP) and these instructions. All
reports shall be prepared in a consistent manner. The
bank holding company’s financial records shall be maintained in such a manner and scope so as to ensure that the
Consolidated Financial Statements for Bank Holding
Companies can be prepared and filed in accordance with
these instructions and reflect a fair presentation of the
bank holding company’s financial condition and results
of operations.
Bank holding companies should retain workpapers and
other records used in the preparation of these reports.

Scope of the ‘‘consolidated bank holding
company’’ to be reported in the submitted
reports
For purposes of this report, the bank holding company
should consolidate its subsidiaries on the same basis as it
does for its annual reports to the SEC or, for those bank
holding companies that do not file reports with the SEC,
on the same basis as described in generally accepted
FR Y9C
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March 2007

accounting principles (GAAP). Generally, under the rules
for consolidation established by the SEC and by GAAP,
bank holding companies should consolidate any company in which it owns more than 50 percent of the
outstanding voting stock.
Each bank holding company shall account for any investments in unconsolidated subsidiaries, associated companies, and those corporate joint ventures over which the
bank holding company exercises significant influence
according to the equity method of accounting, as prescribed by GAAP. The equity method of accounting is
described in Schedule HC, item 8. (Refer to the Glossary
entry for ‘‘subsidiaries’’ for the definitions of the terms
subsidiary, associated company, and corporate joint
venture.)

Rules of consolidation
For purposes of these reports, all offices (i.e., branches
and subsidiaries) that are within the scope of the consolidated bank holding company as defined above are to be
reported on a consolidated basis. Unless the report form
captions or the line item instructions specifically state
otherwise, this consolidation shall be on a line-by-line
basis, according to the caption shown. As part of the
consolidation process, the results of all transactions and
all intercompany balances (e.g., outstanding asset/debt
relationships) between offices, subsidiaries, and other
entities included in the scope of the consolidated bank
holding company are to be eliminated in the consolidation and must be excluded from the Consolidated Financial Statements for Bank Holding Companies. (For example, eliminate in the consolidation: (1) loans made by the
bank holding company to a consolidated subsidiary and
the corresponding liability of the subsidiary to the bank
holding company, (2) a consolidated subsidiary’s deposits in another consolidated bank holding company subsidiary and the corresponding cash or interest-bearing asset
balance of the subsidiary, and (3) the intercompany
interest income and expense related to such loans and
deposits of the bank holding company and its consolidated subsidiaries.)
Subsidiaries of Subsidiaries. For a subsidiary of a bank
holding company that is in turn the parent of one or more
subsidiaries:
(1) Each subsidiary shall consolidate its majority-owned
subsidiaries in accordance with the consolidation
requirements set forth above.
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General Instructions

(2) Each subsidiary shall account for any investments in
unconsolidated subsidiaries, corporate joint ventures
over which the bank holding company exercises
significant influence, and associated companies
according to the equity method of accounting.
Minority Interests. A minority interest arises when the
reporting bank holding company owns less than 100 percent of the stock of a consolidated subsidiary. The
minority interest consists of the shares of stock not
owned by the reporting bank holding company. Report
minority interests in the reporting bank holding company’s consolidated subsidiaries in Schedule HC, item 22,
‘‘Minority interest in consolidated subsidiaries and similar items.’’ Report income (or loss) associated with such
minority interests in item 10, ‘‘Minority interest’’ in
Schedule HI, ‘‘Consolidated Report of Income.’’

Reporting by type of office
(for bank holding companies
with foreign offices)
Some information in the Consolidated Financial Statements for Bank Holding Companies are to be reported by
type of office (e.g., for domestic offices or for foreign
offices) as well as for the consolidated bank holding
company. Where information is called for by type of
office, the information reported shall be the office component of the consolidated item unless otherwise specified in the line item instructions. That is, as a general rule,
the office information shall be reported at the same level
of consolidation as the fully consolidated statement, shall
reflect only transactions with parties outside the scope
of the consolidated bank holding company, and shall
exclude all transactions between offices of the consolidated bank holding company as defined above. See the
Glossary entries for ‘‘domestic office’’ and ‘‘foreign
office’’ for the definitions of these terms.

Exclusions from coverage of the
consolidated report
Equity securities acquired for debts previously contracted. For purposes of this report, the equity securities
of an unaffiliated bank, bank holding company, or any
other unaffiliated company acquired by the reporting
bank holding company or its consolidated subsidiaries
for debts previously contracted should be reported on the
balance sheet as third party transactions in the appropriate line item(s). These unaffiliated companies should not
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be reported as an investment in a subsidiary nor should
they be consolidated, for purposes of this report, even
when the equity securities represent a majority of the
outstanding stock of the company.
Subsidiaries held on a temporary basis. If control of a
majority-owned subsidiary by the bank holding company
is likely to be temporary or does not rest with the bank
holding company because of legal or other reasons (e.g.,
the subsidiary is in bankruptcy), the subsidiary is not
required to be consolidated for purposes of the report.
Thus, the bank holding company’s investments in such
subsidiaries are not eliminated in consolidation but will
be reflected in the reports in the balance sheet item for
‘‘Investments in unconsolidated subsidiaries and associated companies’’ (Schedule HC, item 8) and other transactions of the bank holding company with such subsidiaries will be reflected in the appropriate items of the
reports in the same manner as transactions with unrelated
outside parties. Additional guidance on this topic is
provided in accounting standards, including Financial
Accounting Standards Board Statement No. 94 and SEC
Staff Accounting Bulletin No. 92.
Custody accounts. All custody and safekeeping activities
(i.e., the holding of securities, jewelry, coin collections,
and other valuables in custody or in safekeeping for
customers) should not to be reflected on any basis in the
balance sheet of the Consolidated Financial Statements
for Bank Holding Companies unless cash funds held by
the bank in safekeeping for customers are commingled
with the general assets of the reporting bank holding
company. In such cases, the commingled funds would be
reported in the Consolidated Financial Statements for
Bank Holding Companies as deposit liabilities of the
bank holding company.
For bank holding companies that file financial statements
with the Securities and Exchange Commission (SEC),
major classifications including total assets, total liabilities, total equity capital and net income should generally
be the same between the FR Y-9C report filed with the
Federal Reserve and the financial statements filed with
the SEC.

B. Report Form Captions, Non-applicable
Items and Instructional Detail
No caption on the report forms shall be changed in any
way. An amount or a zero should be entered for all items
except in those cases where (1) the reporting bank
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FR Y9C
March 2007

General Instructions

holding company does not have any foreign offices;
(2) the reporting company does not have any depository
institutions that are subsidiaries other than commercial
banks; or (3) the reporting bank holding company has no
consolidated subsidiaries that render services in any
fiduciary capacity and its subsidiary banks have no trust
departments. If the reporting bank holding company has
only domestic offices, Schedule HC, items 13(b)(1) and
13(b)(2), and Schedule HI, items 1(a)(2) and 2(a)(2)
should be left blank. If the reporting company does not
have any depository institutions that are subsidiaries
other than commercial banks, then Schedule HC-E, items
2(a) through 2(e) should be left blank. If the reporting
company does not have any trust activities, then Schedule
HI, item 5(a) should be left blank. Bank holding company should leave blank memorandum items 9(a) through
9(d) of Schedule HI if the reporting bank holding company does not have average trading assets of $2 million
or more (reported on Schedule HC-K, item 4(a)) as of the
March 31st report date of the current calendar year.
In addition, bank holding companies who are not required
to report Schedule HC-D or Schedule HC-Q may leave
these schedules blank.
There may be areas in which a bank holding company
wishes more technical detail on the application of
accounting standards and procedures to the requirements
of these instructions. Such information may often be
found in the appropriate entries in the Glossary section of
these instructions or, in more detail, in the GAAP standards. Selected sections of the GAAP standards are
referenced in the instructions where appropriate. The
accounting entries in the Glossary are intended to serve
as an aid in specific reporting situations rather than a
comprehensive statement on accounting for bank holding
companies.
Questions and requests for interpretations of matters
appearing in any part of these instructions should be
addressed to the appropriate Federal Reserve Bank (that
is, the Federal Reserve Bank in the district where the
bank holding company submits this report).

C. Rounding
For bank holding companies with total assets of less than
$10 billion, all dollar amounts must be reported in
thousands, with the figures rounded to the nearest thousand. Items less than $500 will be reported as zero. For
bank holding companies with total assets of $10 billion
FR Y9C
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March 2007

or more, all dollar amounts may be reported in thousands,
but each bank holding company, at its option, may round
the figures reported to the nearest million, with zeros
reported in the thousands column. For bank holding
companies exercising this option, amounts less than
$500,000 will be reported as zero.
Rounding could result in details not adding to their stated
totals. However, to ensure consistent reporting, the
rounded detail items should be adjusted so that the totals
and the sums of their components are identical.
On the Consolidated Financial Statements for Bank
Holding Companies, ‘‘Total assets’’ (Schedule HC,
item 12) and ‘‘Total liabilities, minority interest, and
equity capital’’ (Schedule HC, item 29), which must be
equal, must be derived from unrounded numbers and
then rounded to ensure that these two items are equal as
reported.

D. Negative Entries
Except for the items listed below, negative entries are
generally not appropriate on the FR Y-9C and should not
be reported. Hence, assets with credit balances must be
reported in liability items and liabilities with debit balances must be reported in asset items, as appropriate, and
in accordance with these instructions. Items for which
negative entries may be made, include:
(1) Schedule HI, memorandum item 6, ‘‘Other noninterest income (itemize and describe the three
largest amounts that exceed 1 percent of the sum of
Schedule HI, item 1(h) and 5(m)).’’
(2) Schedule HI, memorandum item 7 ‘‘Other noninterest expense (itemize and describe the three
largest amounts that exceed 1 percent of Schedule
HI, items 1(h) and 5(m)).’’
(3) Schedule HI, item 5(e), ‘‘Venture capital revenue.’’
(4) Schedule HI, item 5(f), ‘‘Net servicing fees.’’
(5) Schedule HI, item 5(g), ‘‘Net securitization
income.’’
(6) Schedule HI-A, item 12, ‘‘Other comprehensive
income.’’
(7) Schedule HC, item 8, ‘‘Investments in unconsolidated subsidiaries and associated companies.’’
(8) Schedule HC, item 26(a), ‘‘Retained earnings.’’
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General Instructions

(9) Schedule HC, item 26(b), ‘‘Accumulated other
comprehensive income.’’
(10) Schedule HC, item 27, ‘‘Other equity capital
components. ’’
(11) Schedule HC, item 28, ‘‘Total equity capital.’’
(12) Schedule HC-C, item 10, ‘‘Lease financing receivables (net of unearned income).’’
(13) Schedule HC-R, item 1, ‘‘Total equity capital.’’
(14) Schedule HC-R, item 2, ‘‘Net unrealized gains
(losses) on available-for-sale securities.’’
(15) Schedule HC-R, item 4, ‘‘Accumulated net gains
(losses) on cash flow hedges.’’
(16) Schedule HC-R, item 10, ‘‘Other additions to
(deductions from) Tier 1 capital.’’
(17) Schedule HC-R, item 11, ‘‘Tier 1 capital.’’
(18) Schedule HC-R, item 21, ‘‘Total risk-based capital.’’
(19) Schedule HC-R, Column B, ‘‘Items Not Subject
to Risk-Weighting,’’ for asset categories in items 34
through 43.
When negative entries do occur in one or more of these
items, they shall be recorded with a minus (−) sign rather
than in parenthesis.
On the Consolidated Report of Income (Schedule HI),
negative entries may appear as appropriate. Income items
with a debit balance and expense items with a credit
balance must be reported with a minus (−) sign.

E. Confidentiality
The completed version of this report generally is available to the public upon request on an individual basis.
However, a reporting bank holding company may request
confidential treatment for the Consolidated Financial
Statements for Bank Holding Companies (FR Y-9C) if
the bank holding company is of the opinion that disclosure of specific commercial or financial information in
the report would likely result in substantial harm to its
competitive position, or that disclosure of the submitted
information would result in unwarranted invasion of
personal privacy.
A request for confidential treatment must be submitted in
writing prior to the electronic submission of the report.
The request must discuss in writing the justification for
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which confidentiality is requested and must demonstrate
the specific nature of the harm that would result from
public release of the information. Merely stating that
competitive harm would result or that information is
personal is not sufficient.
Information for which confidential treatment is requested
may subsequently be released by the Federal Reserve
System if the Board of Governors determines that the
disclosure of such information is in the public interest.

F. Verification and Signatures
Verification. All addition and subtraction should be
double-checked before reports are submitted. Totals and
subtotals in supporting materials should be cross-checked
to corresponding items elsewhere in the reports. Before a
report is submitted, all amounts should be compared with
the corresponding amounts in the previous report. If there
are any unusual changes from the previous report, a brief
explanation of the changes should be provided to the
appropriate Reserve Bank.
Signatures.
The Consolidated Financial Statements for Bank Holding Companies must be signed by the Chief Financial
Officer of the bank holding company (or by the individual performing this equivalent function).
Bank holding companies must maintain in their files a
manually signed and attested printout of the data submitted. The cover page of the Reserve Bank-supplied,
holding company’s software, or from the Federal Reserve’s website report form should be used to fulfill the
signature and attestation requirement and this page
should be attached to the printout placed in the bank
holding company’s files.

G. Amended Reports
When the Federal Reserve’s interpretation of how GAAP
or these instructions should be applied to a specified
event or transaction (or series of related events or transactions) differs from the reporting bank holding company’s interpretation, the Federal Reserve may require the
bank holding company to reflect the event(s) or transaction(s) in its FR Y-9C in accordance with the Federal
Reserve’s interpretation and to amend previously submitted reports. The Federal Reserve will consider the materiality of such event(s) or transaction(s) in making a
determination about requiring the bank holding company
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General Instructions

to apply the Federal Reserve’s interpretation and to amend
previously submitted reports. Materiality is a qualitative
characteristic of accounting information which is defined
in FASB Concepts No. 2 as ‘‘the magnitude of an
omission or misstatement of accounting information that,
in the light of surrounding circumstances, make it probable that the judgment of a reasonable person relying on
the information would have been changed or influenced
by the omission or misstatement.’’
The Federal Reserve may require the filing of amended
Consolidated Financial Statements for Bank Holding
Companies if reports as previously submitted contain
significant errors. In addition, a bank holding company
should file an amended report when internal or external
auditors make audit adjustments that result in a restate-

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March 2007

ment of financial statements previously submitted to the
Federal Reserve.
The Federal Reserve also requests that bank holding
companies that have restated their prior period financial
statements as a result of an acquisition submit revised
reports for the prior year-ends. While information to
complete all schedules to the FR Y-9C may not be
available, bank holding companies are requested to provide the Consolidated Balance Sheet (Schedule HC) and
the Consolidated Report of Income (Schedule HI) for the
prior year-ends. In the event that certain of the required
data are not available, bank holding companies should
contact the appropriate Reserve Bank for information on
submitting revised reports.

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LINE ITEM INSTRUCTIONS FOR

Consolidated Report of Income
Schedule HI
The line item instructions should be read in conjunction with the Glossary and
other sections of these instructions. See the discussion of the Organization of the
Instruction Books in the General Instructions.

General Instructions
Report in accordance with these instructions all income
and expense of the consolidated bank holding company
for the calendar year-to-date. Include adjustments of
accruals and other accounting estimates made shortly
after the end of a reporting period which relate to the
income and expense of the reporting period.
Bank holding companies that began operating during the
reporting period should report in the appropriate items of
Schedule HI all income earned and expense incurred
since commencing operations. The bank holding company should report pre-opening income earned and
expenses incurred from inception until the date operations commenced using one of the two methods described
in the Glossary entry for ‘‘start-up activities.’’
If the bank holding company entered into a business
combination which became effective during the reporting
period and which has been accounted for as a pooling of
interests, report the income and expense of the combined
business for the entire year-to-date. If the bank holding
company entered into a business combination which
became effective during the reporting period and which
has been accounted for as a purchase, report the income
and expense of the acquired bank or business only after
its acquisition. Refer to the Glossary entry for ‘‘business
combinations’’ for further information.
Assets and liabilities accounted under the fair value
option - Under U.S. generally accepted accounting principles (GAAP) (i.e., FASB Statement No. 159, ‘‘The Fair
Value Option for Financial Assets and Financial Liabilities’’ (FAS 159); FASB Statement No. 155, ‘‘Accounting
for Certain Hybrid Financial Instruments’’ (FAS 155);
and FASB Statement No. 156, "Accounting for Servicing
of Financial Assets" (FAS 156)), the bank holding company may elect to report certain assets and liabilities at
fair value with changes in fair value recognized in
earnings. This election is generally referred to as the fair
FR Y-9C
Schedule HI

March 2007

value option. If the bank holding company has elected to
apply the fair value option to interest-bearing financial
assets and liabilities, it should report the contractual
amount of interest income earned on these financial
assets (except any that are in nonaccrual status) and the
contractual amount of interest expense incurred on these
financial liabilities for the year-to-date separately from
the change in fair value of these assets and liabilities for
the year-to-date. The contractual amounts of interest
income earned and interest expense incurred on these
financial assets and liabilities should be reported in the
appropriate interest income or interest expense items on
Schedule HI.
Line Item 1

Interest income.

Line Item 1(a)

Interest and fee income on loans.

Report in the appropriate subitem all interest, fees, and
similar charges levied against or associated with all
assets reportable as loans in Schedule HC-C, items 1
through 9.
Deduct interest rebated to customers on loans paid before
maturity from gross interest earned on loans; do not
report as an expense.
Include as interest and fee income on loans:
(1) Interest on all assets reportable as loans extended
directly, purchased from others, sold under agreements to repurchase, or pledged as collateral for any
purpose.
(2) Loan origination fees, direct loan origination costs,
and purchase premiums and discounts on loans held
for investment, all of which should be deferred and
recognized over the life of the related loan as an
adjustment of yield under FASB Statement No. 91 as
described in the Glossary entry for "loan fees." See
exclusion (3) below.
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Schedule HI

(3) Loan commitment fees (net of direct loan origination
costs) that must be deferred over the commitment
period and recognized over the life of the related loan
as an adjustment of yield under FASB Statement No.
91 as described in the Glossary entry for "loan fees."
(4) Investigation and service charges, fees representing a
reimbursement of loan processing costs, renewal and
past-due charges, prepayment penalties, and fees
charged for the execution of mortgages or agreements securing the bank holding company’s loans.
(5) Charges levied against overdrawn accounts based on
the length of time the account has been overdrawn,
the magnitude of the overdrawn balance, or which
are otherwise equivalent to interest. See exclusion (6)
below.
(6) The contractual amount of interest income earned on
loans that are reported at fair value under a fair value
option.
Exclude from interest and fee income on loans:
(1) Fees for servicing real estate mortgages or other
loans that are not assets of the bank holding company
(report in Schedule HI, item 5(f), "Net servicing
fees").
(2) Charges to merchants for the bank holding company’s handling of credit card or charge sales when the
bank holding company does not carry the related loan
accounts on its books (report as "Other noninterest
income" in Schedule HI, item 5(l)). Bank holding
companies may report this income net of the expenses (except salaries) related to the handling of
these credit card or charge sales.
(3) Loan origination fees, direct loan origination costs,
and purchase premiums and discounts on loans held
for sale, all of which should be deferred until the loan
is sold (rather than amortized). The net fees or costs
and purchase premium or discount are part of the
recorded investment in the loan. When the loan is
sold, the difference between the sales price and the
recorded investment in the loan is the gain or loss on
the sale of the loan. See exclusion (4) below.
(4) Net gains (losses) from the sale of all assets reportable as loans (report in Schedule HI, item 5(i), "Net
gains (losses) on sales of loans and leases"). Refer to
the Glossary entry for "transfers of financial assets."
HI-2

(5) Reimbursements for out-of-pocket expenditures (e.g.,
for the purchase of fire insurance on real estate
securing a loan) made by the bank holding company
for the account of its customers. If the bank holding
company’s expense accounts were charged with the
amount of such expenditures, the reimbursements
should be credited to the same expense accounts.
(6) Transaction or per item charges levied against deposit
accounts for the processing of checks drawn against
insufficient funds that the bank holding company
assesses regardless of whether it decides to pay,
return, or hold the check, so-called "NSF check
charges" (report as "Service charges on deposit
accounts (in domestic offices)," in Schedule HI, item
5(b), or, if levied against deposit accounts in foreign
offices, as "Other noninterest income" in Schedule
HI, item 5(l)). See inclusion (5) above.
(7) Interchange fees earned from credit card transactions
(report as "Other noninterest income" in Schedule
HI, item 5(l)).
Line Item 1(a)(1) Interest and fee income on loans
in domestic offices.
Report all interest, fees, and similar charges levied
against or associated with all loans in domestic offices
reportable in Schedule HC-C, items 1 through 9, column B for bank holding companies with foreign offices
and reportable in Schedule HC-C, items 1 through 9, for
bank holding companies with domestic offices only.
Line Item 1(a)(2) Interest and fee income on loans
in foreign offices, Edge and Agreement subsidiaries,
and IBFs.
Report all interest, fees, and similar charges levied
against or associated with all loans in foreign offices,
Edge and Agreement subsidiaries, and IBFs reportable in
Schedule HC-C, column A, items 1 through 9.
Line Item 1(b)
receivables.

Income from lease financing

Report income from direct financing and leveraged leases
reportable in Schedule HC-C, item 10, ‘‘Lease financing
receivables (net of unearned income).’’ (See Glossary
entry for ‘‘lease accounting.’’)
Exclude:
Schedule HI

FR Y-9C
March 2007

Schedule HI

(1) Any investment tax credit associated with leased
property (include in Schedule HI, item 9, ‘‘Applicable income taxes.’’)
(2) Provision for possible losses on leases (report in
Schedule HI, item 4, ‘‘Provision for loan and lease
losses’’).
(3) Rental fees applicable to operating leases for furniture and equipment rented to others (report in Schedule HI, item 5(l), ‘‘Other noninterest income’’).
Line Item 1(c) Interest income on balances due
from depository institutions.
Report all income on assets reportable in Schedule HC,
item 1(b), "Interest-bearing balances due from depository
institutions." Include the contractual amount of interest
income earned on interest-bearing balances due from
depository institutions that are reported at fair value
under a fair value option.
Line Item 1(d)
securities.

Interest and dividend income on

Report in the appropriate subitem all income on assets
that are reportable in Schedule HC-B, Securities. Include
accretion of discount on securities for the current period.
Deduct current amortization of premium on securities. (Refer to the Glossary entry for ‘‘premiums and
discounts.’’)

Exclude from interest and dividend income on securites:
(1) Realized gains (losses) on held-to-maturity securities
and on available-for-sale securities (report in Schedule HI, items 6(a) and 6(b), respectively).
(2) Net unrealized holding gains (losses) on availablefor-sale securities (include the amount of such net
unrealized holding gains (losses) in Schedule HC,
item 26(b), ‘‘Accumulated other comprehensive
income,’’ and the calendar year-to-date change in
such net unrealized holding gains (losses) in Schedule HI-A, item 10, ‘‘Other comprehensive income)’’.
(3) Income from advances to, or obligations of, majorityowned subsidiaries not consolidated, associated companies, and those corporate joint ventures over which
the consolidated bank holding company exercises
significant influence (report as ‘‘Noninterest income’’
in the appropriate subitem of Schedule HI, item 5).
Line Item 1(d)(1) U.S. Treasury securities and U.S.
government agency obligations (excluding
mortgage-backed securities).
Report income from all securities reportable in Schedule HC-B, item 1, ‘‘U.S. Treasury securities,’’ and item 2,
‘‘U.S. government agency obligations.’’ Include accretion
of discount on U.S. Treasury bills.

Include interest and dividends on securities held in the
consolidated bank holding company’s portfolio, loaned,
sold subject to repurchase, or pledged as collateral for
any purpose.

Line Item 1(d)(2)

Include interest received at the sale of securities to the
extent that such interest had not already been accrued on
the consolidated bank holding company’s books.

Line Item 1(d)(3)

Do not deduct accrued interest included in the purchase
price of securities from income on securities and do not
charge to expense. Record such interest in a separate
asset account (to be reported in Schedule HC, item 11,
‘‘Other assets’’) to be offset upon collection of the next
interest payment.
Report income from detached U.S. Government security
coupons and ex-coupon U.S. Government securities not
held for trading in item 1(d)(3) as interest and dividend
income on ‘‘All other securities.’’ Refer to the Glossary
entry for ‘‘coupon stripping, Treasury receipts, and
STRIPS.’’
FR Y-9C
Schedule HI

March 2007

Mortgage-backed securities.

Report all income from securities reportable in Schedule HC-B, item 4, ‘‘Mortgage-backed securities.’’
All other securities.

Report in the appropriate subitem income from all other
debt securities and from all equity securities of companies domiciled in the U.S. that are reportable in
Schedule HC-B, item 3, ‘‘Securities issued by states and
political subdivisions in the U.S.,’’ item 5, ‘‘Asset-backed
securities (ABS),’’ item 6, ‘‘Other debt securities,’’ and
item 7, ‘‘Investments in mutual funds and other equity
securities with readily determinable fair values.’’
Exclude from interest and dividend income on all other
securities:
(1) Income from equity securities that do not have
readily determinable fair values (report as ‘‘Other
interest income’’ in Schedule HI, item 1(g)).
HI-3

Schedule HI

(2) The consolidated bank holding company’s proportionate share of the net income or loss from its
common stock investments in domestic unconsolidated subsidiaries, associated companies, and those
corporate joint ventures over which the consolidated bank holding company exercises significant
influence (report income or loss before extraordinary items and other adjustments in the appropriate
subitem of item 5 and report extraordinary items, net
of applicable taxes and minority interest, in Schedule HI, item 12).
Line Item 1(e)
assets.

Interest income from trading

Report the interest income earned on assets reportable in
Schedule HC, item 5, ‘‘Trading assets.’’
Include accretion of discount on assets held in trading
accounts that have been issued on a discount basis, such
as U.S. Treasury bills and commercial paper.
Exclude gains (losses) and fees from trading assets,
which should be reported in Schedule HI, item 5(c),
‘‘Trading revenue.’’ Also exclude revaluation adjustments from the periodic marking to market of derivative
contracts held for trading purposes, which should be
reported as trading revenue in Schedule HI, item 5(c).
The effect of the periodic net settlements on these
derivative contracts should be included as part of the
revaluation adjustments from the periodic marking to
market of the contracts.
Line Item 1(f) Interest income on federal funds
sold and securities purchased under agreements to
resell.
Report the gross revenue from assets reportable in Schedule HC, item 3, "Federal funds sold and securities
purchased under agreements to resell." Include the contractual amount of interest income earned on federal
funds sold and securities purchased under agreements to
resell that are reported at fair value under a fair value
option.
Line Item 1(g)

Other interest income.

Report all interest income not properly reported in
items 1(a) through 1(f) above. Other interest income
includes, but is not limited to:
HI-4

(1) Interest income on real estate sales contracts reportable in Schedule HC, item 7, ‘‘Other real estate
owned.’’
(2) Interest income from advances to, or obligations of,
majority-owned subsidiaries not consolidated on this
report, associated companies, and those corporate
joint ventures over which the consolidated bank
holding company exercises significant influence.
Exclude the consolidated bank holding company’s
proportionate share of the income or loss before
extraordinary items and other adjustments from its
common stock investments in unconsolidated subsidiaries, associated companies, and those corporate
joint ventures over which the bank holding company
exercises significant influence (report in item 5(l),
‘‘Other noninterest income’’) and the consolidated
bank holding company’s proportionate share of material extraordinary items and other adjustments of
these entities (report in item 12, ‘‘Extraordinary
items net of applicable taxes and minority interest’’).
(3) Interest received on other assets not specified above.
Line Item 1(h)

Total interest income.

Report the sum of items 1(a) through 1(g).
Line Item 2

Interest expense.

Line Item 2(a)

Interest on deposits.

Report in the appropriate subitem all interest expense,
including amortization of the cost of merchandise or
property offered in lieu of interest payments, on deposits
reportable in Schedule HC, item 13(a)(2), "Interestbearing deposits in domestic offices," and Schedule HC,
item 13(b)(2), "Interest-bearing deposits in foreign offices, Edge and Agreement subsidiaries, and IBFs."
Exclude the cost of gifts or premiums (whether in the
form of merchandise, credit, or cash) given to depositors
at the time of the opening of a new account or an addition
to, or renewal of, an existing account (report in Schedule
HI, item 7(d), "Other noninterest expense").
Include as interest expense on the appropriate category of
deposits finders’ fees and brokers’ fees that represent an
adjustment to the interest rate paid on deposits the
reporting bank holding company acquires through brokers. If material, such fees should be capitalized and
amortized over the term of the related deposits. However,
Schedule HI

FR Y-9C
March 2007

Schedule HI

exclude fees levied by brokers that are, in substance,
retainer fees or that otherwise do not represent an adjustment to the interest rate paid on brokered deposits (report
in Schedule HI, item 7(d), "Other noninterest expense").
Also include as interest expense the contractual amount
of interest expense incurred on deposits that are reported
at fair value under a fair value option. Deposits with
demand features (e.g., demand and savings deposits in
domestic offices) are generally not eligible for the fair
value option.
Deduct from the gross interest expense of the appropriate
category of time deposits penalties for early withdrawals,
or portions of such penalties, that represent the forfeiture
of interest accrued or paid to the date of withdrawal. If
material, portions of penalties for early withdrawals that
exceed the interest accrued or paid to the date of withdrawal should not be treated as a reduction of interest
expense but should be included in "Other noninterest
income" in Schedule HI, item 5(l).
Line Item 2(a)(1)
offices.

Interest on deposits in domestic

Line Item 2(a)(1)(a)
$100,000 or more.

Interest on time deposits of

Report interest expense on all time deposits reportable
in Schedule HC-E, items 1(e) and 2(e), ‘‘Time deposits
of $100,000 or more’’ in domestic offices of commercial banks and in domestic offices of other depository
institutions.
Line Item 2(a)(1)(b)
less than $100,000.

Interest on time deposits of

Report in this item all interest expense reportable in
Schedule HC-E, items 1(d) and 2(d), ‘‘Time deposits of
less than $100,000’’ in domestic offices of subsidiary
commercial banks and in domestic offices of other subsidiary depository institutions.
Line Item 2(a)(1)(c)

Interest on other deposits.

Report interest expense on all deposits reportable in
Schedule HC, item 13(a)(2), ‘‘Interest-bearing deposits
in domestic offices,’’ excluding interest on time deposits
in domestic offices of subsidiary commercial banks and
in domestic offices of other subsidiary depository institutions, which are reportable in items 2(a)(1)(a) or
2(a)(1)(b) above.
FR Y-9C
Schedule HI

March 2007

Line Item 2(a)(2) Interest on deposits in foreign
offices, Edge and Agreement subsidiaries, and IBFs.
Report interest expense on all deposits in foreign offices
reportable in Schedule HC, item 13(b)(2), ‘‘Interestbearing deposits in foreign offices, Edge and Agreement
subsidiaries, and IBFs.’’
Line Item 2(b) Expense of federal funds
purchased and securities sold under agreements to
repurchase.
Report the gross expense of all liabilities reportable in
Schedule HC, item 14, "Federal funds purchased and
securities sold under agreements to repurchase." Include
the contractual amount of interest expense incurred on
federal funds purchased and securities sold under agreements to repurchase that are reported at fair value under a
fair value option.
Report the income of federal funds sold and securities
purchased under agreements to resell in Schedule HI,
item 1(f); do not deduct from the gross expense reported
in this item. However, if amounts recognized as payables
under repurchase agreements have been offset against
amounts recognized as receivables under reverse repurchase agreements and reported as a net amount in
Schedule HC, Balance Sheet, in accordance with FASB
Interpretation No. 41, the income and expense from these
agreements may be reported on a net basis in Schedule
HI, Income Statement.
Line Item 2(c) Interest on trading liabilities and
other borrowed money.
Report the interest expense on all liabilities reportable in
Schedule HC, item 15, "Trading liabilities," and item 16,
"Other borrowed money." Include the contractual amount
of interest expense incurred on other borrowed money
reported at fair value under a fair value option.
Line Item 2(d)
debentures.

Interest on subordinated notes and

Report the interest expense on all liabilities reportable in
Schedule HC, item 19(a), "Subordinated notes and debentures." Include the contractual amount of interest expense
incurred on subordinated notes and debentures reported
at fair value under a fair value option.
Include the interest expense of mandatory convertible
securities associated with gross equity contract notes and
gross equity commitment notes.
HI-5

Schedule HI

Include amortization of expenses incurred in the issuance
of subordinated notes and debentures. Capitalize such
expenses, if material, and amortize them over the life of
the related notes and debentures (unless the notes and
debentures are reported at fair value under a fair value
option, in which case issuance costs should be expensed
as incurred).
Exclude from this item interest on any reportable notes
payable to unconsolidated special purpose entities that
issue trust preferred securities (included in Schedule HC,
item 19(b), "Subordinated notes payable to unconsolidated trusts issuing trust preferred securities, and trust
preferred securities issued by consolidated special purpose entities"). Report this interest expense in Schedule
HI, item 2(e), "Other interest expense."
Exclude from this item the amortization of expenses
incurred in the issuance of these notes payable. Capitalize such expenses, if material, and amortize them over
the life of the related notes payable. Report these amortized issuance costs in Schedule HI, item 2(e).
Exclude dividends declared or paid on limited-life preferred stock (report dividends declared in Schedule HI-A,
item 10).
Line Item 2(e)

Other interest expense.

Report in this item the interest expense on all other
liabilities not reported in Schedule HI, items 2(a) through
2(d) above.
Line Item 2(f)

Total interest expense.

Report the sum of Schedule HI, items 2(a) through 2(e).
Line Item 3

Net interest income.

Report the difference between item 1(h), ‘‘Total interest
income’’ and item 2(f), ‘‘Total interest expense.’’ If the
amount is negative, enclose it in parentheses.
Line Item 4

Provision for loan and lease losses.

Report the amount needed to make the allowance for loan
and lease losses, as reported in Schedule HC, item 4(c),
adequate to absorb estimated credit losses, based upon
management’s evaluation of the loans and leases that the
reporting bank holding company has the intent and
ability to hold for the foreseeable future or until maturity
or payoff. Also include in this item any provision for
allocated transfer risk related to loans and leases. The
HI-6

amount reported in this item must equal Schedule HI-B,
Part II, item 5, ‘‘Provision for loan and lease losses.’’
Enclose negative amounts in parentheses.
Exclude any provision for credit losses on off-balance
sheet credit exposures which should be reported in
Schedule HI, item 7(d), ‘‘Other noninterest expense.’’
The amount reported here may differ from the bad debt
expense deduction taken for federal income tax purposes.
(Refer to the Glossary entry for ‘‘allowance for loan and
lease losses’’ for additional information.)
Line Item 5

Noninterest income:

Line Item 5(a)

Income from fiduciary activities.

Report gross income from services rendered by the trust
departments of the bank holding company’s banking
subsidiaries or by any of the bank holding company’s
consolidated subsidiaries acting in any fiduciary capacity.
Include commissions and fees on the sales of annuities by
these entities that are executed in a fiduciary capacity.
Exclude commissions and fees received for the accumulation or disbursement of funds deposited to Individual
Retirement Accounts (IRAs) or Keogh Plan accounts
when they are not handled by the trust departments
of the holding company’s subsidiary banks (report in
item 5(b), ‘‘Service charges on deposit accounts in
domestic offices’’).
Leave this item blank if the subsidiary banks of the
reporting bank holding company have no trust departments and the bank holding company has no consolidated
subsidiaries that render services in any fiduciary capacity.
Line Item 5(b) Service charges on deposit
accounts in domestic offices.
Report in this item amounts charged depositors in domestic offices:
(1) For the maintenance of their deposit accounts with
the bank holding company or its consolidated subsidiaries, so-called ‘‘maintenance charges.’’
(2) For their failure to maintain specified minimum
deposit balances.
(3) Based on the number of checks drawn on and
deposits made in their deposit accounts.
(4) For checks drawn on so-called ‘‘no minimum balance’’ deposit accounts.
Schedule HI

FR Y-9C
March 2007

Schedule HI

(5) For withdrawals from nontransaction deposit
accounts.

item must equal the sum of Schedule HI, Memoranda
item 9(a) through 9(d).

(6) For the closing of savings accounts before a specified minimum period of time has elapsed.

Include as trading revenue:

(7) For accounts which have remained inactive for
extended periods of time or which have become
dormant.
(8) For deposits to or withdrawals from deposit accounts
through the use of automated teller machines or
remote service units.
(9) For the processing of checks drawn against insufficient funds, so-called ‘‘NSF check charges,’’ that
the subsidiary banks of the bank holding company
assess regardless of whether it decides to pay,
return, or hold the check. Exclude subsequent
charges levied against overdrawn accounts based
on the length of time the account has been overdrawn, the magnitude of the overdrawn balance, or
which are otherwise equivalent to interest (report in
the appropriate subitem of item 1(a)(1), ‘‘Interest
and fee income on loans in domestic offices’’).
(10) For issuing stop payment orders.
(11) For certifying checks.
(12) For the accumulation or disbursement of funds
deposited to Individual Retirement Accounts (IRAs)
or Keogh Plan accounts when not handled by the
trust departments of subsidiary banks of the reporting bank holding company.
Report such commissions and fees received for
accounts handled by the trust departments of the
holding company’s banking subsidiaries or by other
consolidated subsidiaries in item 5(a), ‘‘Income
from fiduciary activities.’’
Exclude penalties paid by depositors for the early
withdrawal of time deposits (report in item 5(l),
‘‘Other noninterest income,’’ or deduct from the
interest expense of the related category of time
deposits, as appropriate).
Line Item 5(c)

Trading revenue.

Report the net gain or loss from trading cash instruments
and off-balance-sheet derivative contracts (including
commodity contracts) that has been recognized during
the calendar year-to-date. The amount reported in this
FR Y-9C
Schedule HI

March 2007

(1) Revaluation adjustments to the carrying value of cash
instruments reportable in Schedule HC, item 5,
‘‘Trading assets,’’ and Schedule HC, item 15, ‘‘Trading liabilities,’’ resulting from the periodic marking
to market of such instruments.
(2) Revaluation adjustments from the periodic marking
to market of interest rate, foreign exchange rate,
commodity, and equity derivative contracts reportable in Schedule HC-L, item 12, ‘‘Total gross notional
amount of derivative contracts held for trading,’’ and
credit derivative contracts reportable in Schedule
HC-L, item 7, ‘‘Credit derivatives,’’ that are held for
trading purposes. The effect of the periodic net
settlements on derivative contracts held for trading
purposes should be included as part of the revaluation adjustments from the periodic marking to market
of these contracts.
(3) Incidental income and expense related to the purchase and sale of assets and liabilities reportable
in Schedule HC, item 5, ‘‘Trading assets,’’ and
Schedule HC, item 15, ‘‘Trading liabilities,’’ and
off-balance-sheet derivative contracts reportable in
Schedule HC-L, item 12, ‘‘Total gross amount of
derivative contracts held for trading,’’ and credit
derivatives contracts reportable in Schedule HC-L,
item 7, that are held for trading purposes.
If the amount to be reported in this item is a net loss,
enclose it in parentheses.
Line Item 5(d)(1) Fees and commissions from
securities brokerage.
Report fees and commissions from securities brokerage
activities, from the sale and servicing of mutual funds,
from the purchase and sale of securities and money
market instruments where the bank holding company is
acting as agent for other banking institutions or customers, and from the lending of securities owned by the bank
holding company or by bank holding company customers
(if these fees and commissions are not included in
Schedule HI, item 5(a), "Income from fiduciary activities," or item 5(c), "Trading revenue"). However, exclude
fees and commissions from the sale of annuities (fixed,
variable, and other) to bank holding company customers
HI-7

Schedule HI

by the bank holding company or any securities brokerage
subsidiary (report such income in Schedule HI, item
5(d)(3), "Fees and commissions from annuity sales").
Also include the bank holding company’s proportionate
share of the income or loss before extraordinary items
and other adjustments from its investments in equity
method investees that are principally engaged in securities brokerage activities. Equity method investees include
unconsolidated subsidiaries; associated companies; and
corporate joint ventures, unincorporated joint ventures,
general partnerships, and limited partnerships over which
the bank holding company exercises significant influence.
Line Item 5(d)(2) Investment banking, advisory,
and underwriting fees and commissions.
Report fees and commissions from underwriting (or
participating in the underwriting of) securities, private
placements of securities, investment advisory and management services, merger and acquisition services, and
other related consulting fees. Include fees and commissions from the placement of commercial paper, both for
transactions issued in the bank holding company’s name
and transactions in which the bank holding company acts
as an agent for a third party issuer.
Also include the bank holding company’s proportionate
share of the income or loss before extraordinary items
and other adjustments from its investments in equity
method investees that are principally engaged in investment banking, advisory, or securities underwriting activities. Equity method investees include unconsolidated
subsidiaries; associated companies; and corporate joint
ventures, unincorporated joint ventures, general partnerships, and limited partnerships over which the bank
holding company exercises significant influence.
Line Item 5(d)(3)
annuity sales.

Fees and commissions from

Report fees and commissions from sales of annuities
(fixed, variable, and other) by the bank holding company
and any subsidiary of the bank holding company and fees
earned from customer referrals for annuities to insurance
companies and insurance agencies external to the consolidated bank holding company. Also include management
fees earned from annuities.
However, exclude fees and commissions from sales of
annuities by the trust departments of the holding compaHI-8

ny’s subsidiary banks (or by a consolidated trust company subsidiary) that are executed in a fiduciary capacity
(report in Schedule HI, item 5(a), "Income from fiduciary
activities").
Also include the bank holding company’s proportionate
share of the income or loss before extraordinary items
and other adjustments from its investments in equity
method investees that are principally engaged in annuity
sales. Equity method investees include unconsolidated
subsidiaries; associated companies; and corporate joint
ventures, unincorporated joint ventures, general partnerships, and limited partnerships over which the bank
holding company exercises significant influence.
Line Item 5(d)(4) Underwriting income from
insurance and reinsurance activities.
Report the amount of premiums earned by bank holding
company subsidiaries engaged in insurance underwriting
or reinsurance activities. Include earned premiums from
(a) life and health insurance and (b) property and casualty
insurance, whether (direct) underwritten business or
ceded or assumed (reinsured) business. Insurance premiums should be reported net of any premiums transferred
to other insurance underwriters/reinsurers in conjunction
with reinsurance contracts.
Also include the bank holding company’s proportionate
share of the income or loss before extraordinary items
and other adjustments from its investments in equity
method investees that are principally engaged in insurance underwriting or reinsurance activities. Equity method
investees include unconsolidated subsidiaries; associated
companies; and corporate joint ventures, unincorporated
joint ventures, general partnerships, and limited partnerships over which the bank holding company exercises
significant influence.
Exclude income from sales and referrals involving insurance products and annuities (see the instructions for
Schedule HI, items 5(d)(5) and 5(d)(3), respectively, for
information on reporting such income).
Line Item 5(d)(5)
activities.

Income from other insurance

Report income from insurance product sales and referrals, including:
Schedule HI

FR Y-9C
March 2007

Schedule HI

(1) Service charges, commissions, and fees earned from
insurance sales, including credit, life, health, property, casualty, and title insurance products.
(2) Fees earned from customer referrals for insurance
products to insurance companies and insurance agencies external to the consolidated bank holding company.
Also include management fees earned from separate
accounts and universal life products.
Exclude income from annuity sales and referrals (see the
instructions for Schedule HI, item 5(d)(3), above, for
information on reporting such income).
Also include the bank holding company’s proportionate
share of the income or loss before extraordinary items
and other adjustments from its investments in equity
method investees that are principally engaged in insurance product sales and referrals. Equity method investees
include unconsolidated subsidiaries; associated companies; and corporate joint ventures, unincorporated joint
ventures, general partnerships, and limited partnerships
over which the bank holding company exercises significant influence.
Line Item 5(e)

Venture capital revenue.

In general, venture capital activities involve the providing of funds, whether in the form of loans or equity, and
technical and management assistance, when needed and
requested, to start-up or high-risk companies specializing
in new technologies, ideas, products, or processes. The
primary objective of these investments is capital growth.
Report as venture capital revenue market value adjustments, interest, dividends, gains, and losses (including
impairment losses) on venture capital investments (loans
and securities). Include any fee income from venture
capital activities that is not reported in one of the
preceding items of Schedule HI—Income Statement.
Also include the bank holding company’s proportionate
share of the income or loss before extraordinary items
and other adjustments from its investments in:
(1) Unconsolidated subsidiaries,
(2) Associated companies, and
(3) Corporate joint ventures, unincorporated joint ventures, general partnerships, and limited partnerships
FR Y-9C
Schedule HI

March 2007

over which the bank holding company exercises
significant influence that are principally engaged in
venture capital activities.
Line Item 5(f)

Net servicing fees.

Report income from servicing real estate mortgages,
credit cards, and other financial assets held by others.
Report any premiums received in lieu of regular servicing fees on such loans only as earned over the life of the
loans. For servicing assets and liabilities measured under
the amortization method, bank holding companies should
report servicing income net of the related servicing
assets’ amortization expense, include impairments recognized on servicing assets, and also include increases in
servicing liabilities recognized when subsequent events
have increased the fair value of the liability above its
carrying amount. For servicing assets and liabilities
remeasured at fair value under the fair value option,
include changes in the fair value of these servicing assets
and liabilities. For further information on servicing, see
the Glossary entry for "servicing assets and liabilities."
Line Item 5(g)

Net securitization income.

Report net gains (losses) on assets sold in the bank
holding company’s own securitization transactions, i.e.,
net of transaction costs. Include unrealized losses (and
recoveries of unrealized losses) on loans and leases held
for sale in the bank holding company’s own securitization transactions. Report fee income from securitizations,
securitization conduits, and structured finance vehicles,
including fees for providing administrative support,
liquidity support, interest rate risk management, credit
enhancement support, and any additional support functions as an administrative agent, liquidity agent, hedging
agent, or credit enhancement agent. Include all other fees
(other than servicing fees and commercial paper placement fees) earned from the bank holding company’s
securitization and structured finance transactions.
Exclude income from servicing securitized assets (report
in item 5(f), above), fee income from the placement of
commercial paper (report in item 5(d), above), and
income from seller’s interests and residual interests
retained by the bank holding company (report in the
appropriate subitem of item 1, ‘‘Interest income’’). Also
exclude net gains (losses) on loans sold to—and unrealized losses (and recoveries of unrealized losses) on loans
and leases held for sale to—a government-sponsored
agency or another institution that in turn securitizes the
HI-9

Schedule HI

loans (report in item 5(i), ‘‘Net gains (losses) on sales of
loans and leases’’).
Line Item 5(h)

Not applicable.

Line Item 5(i)
and leases.

Net gains (losses) on sales of loans

Report the amount of net gains (losses) on sales and other
disposals of loans and leases (reportable in Schedule HCC), including unrealized losses (and subsequent recoveries of such net unrealized losses) on loans and leases held
for sale. Exclude net gains (losses) on loans and leases
sold in the bank holding company’s own securitization
transactions and unrealized losses (and recoveries of
unrealized losses) on loans and leases held for sale in the
bank holding company’s own securitization transactions
(report these gains (losses) in Schedule HI, item 5(g),
‘‘Net securitization income’’).
Line Item 5(j) Net gains (losses) on sales of other
real estate owned.
Report the amount of net gains (losses) on sales and other
disposals of other real estate owned (reportable in Schedule HC, item 7), increases and decreases in the valuation
allowance for foreclosed real estate, and write-downs of
other real estate owned subsequent to acquisition (or
physical possession) charged to expense. Do not include
as a loss on other real estate owned any amount charged
to the allowance for loan and lease losses at the time of
foreclosure (actual or physical possession) for the difference between the carrying value of a loan and the fair
value less cost to sell of the foreclosed real estate.
Line Item 5(k) Net gains (losses) on sales of other
assets (excluding securities).
Report the amount of net gains (losses) on sales and other
disposals of assets not required to be reported elsewhere
in the income statement (Schedule HI). Include net gains
(losses) on sales and other disposals of premises and
fixed assets; personal property acquired for debts previously contracted (such as automobiles, boats, equipment,
and appliances); and coins, art, and other similar assets.
Do not include net gains (losses) on sales and other
disposals of loans and leases (either directly or through
securitization), other real estate owned, securities, and
trading assets (report these net gains (losses) in the
appropriate items of Schedule HI).
HI-10

Line Item 5(l)

Other noninterest income.

Report all operating income of the bank holding company for the calendar year to date not required to be
reported elsewhere in Schedule HI. Disclose in Schedule HI, Memoranda items 6(a) through 6(i), each component of other noninterest income, and the dollar amount
of such component, that exceeds 1 percent of the sum of
the bank holding company’s total interest income (from
Schedule HI, item 1(h)) and its total noninterest income
(from Schedule HI, item 5(m)). For each component of
other noninterest income that exceeds this disclosure
threshold for which a preprinted caption has not been
provided in Schedule HI, Memoranda items 6(a) through
6(e) and 6(i), describe the component with a clear but
concise caption in Schedule HI, Memoranda items 6(f)
through 6(h). These descriptions should not exceed
50 characters in length (including spacing between
words).
Include as other noninterest income:
(1) Service charges, commissions, and fees for such
services as:
(a) The rental of safe deposit boxes.
(b) The safekeeping of securities for other depository institutions (if the income for such safekeeping services is not included in Schedule HI, item 5(a), ‘‘Income from fiduciary
activities’’).
(c) The sale of bank drafts, money orders, cashiers’
checks, and travelers’ checks.
(d) The collection of utility bills, checks, notes,
bond coupons, and bills of exchange.
(e) The redemption of U.S. savings bonds.
(f) The handling of food stamps and the U.S.
Treasury Tax and Loan Account, including fees
recieved in connection with the issuance of
interest-bearing demand notes by a depository
institution that is a consolidated subsidiary of
the reporting bank holding company.
(g) The execution of acceptances and the issuance
of commercial letters of credit, standby letters
of credit, defered payment letters of credit, and
letters of credit issued for cash or its equivalent.
Exclude income on bankers acceptances and
trade acceptances (report such income in the
Schedule HI

FR Y-9C
March 2007

Schedule HI

appropriate subitem of Schedule HI, item 1(a),
‘‘Interest and fee income on loans,’’ or in
Schedule HI, item 1(e), ‘‘Interest income from
trading assets,’’ as appropriate).
(h) The notarizing of forms and documents.
(i) The negotiation or management of loans from
other lenders for customers or correspondents.
(j) The providing of consulting and advisory services to others. Exclude income from investment advisory services, which is to be reported
in Schedule HI, item 5(d).
(k) The use of the bank holding company subsidiary bank’s automated teller machines or remote
service units by depositors of other depository
institutions.
(2) Income and fees from the sale and printing of
checks.
(3) Gross rentals and other income from all real estate
reportable in Schedule HC, item 7, ‘‘Other real
estate owned.’’
(4) Earnings on or other increases in the value of the
cash surrender values of life insurance policies
owned by the bank holding company’s subsidiary
bank(s).
(5) Annual or other periodic fees paid by holders of
credit cards issued by the bank holding company or
its consolidated subsidairies. Fees that are periodically charged to cardholders shall be deferred and
recognized on a straight-line basis over the period
the fee entitles the cardholder to use the card.
(6) Charges to merchants for the bank’s handling of
credit card or charge sales when the bank holding
company does not carry the related loan accounts
on its books. Bank holding companies may report
this income net of the expenses (except salaries)
related to the handling of these credit card sales.
(7) Interchange fees
transactions.

earned

from

credit

card

(8) Gross income received for performing data processing services for others. Do not deduct the expense
of performing such services for others (report in the
appropriate items of noninterest expense).
FR Y-9C
Schedule HI

March 2007

(9) Loan commitment fees that are recognized during
the commitment period (i.e., fees retrospectively
determined and fees for commitments where exercise is remote) or included in income when the
commitment expires and loan syndication fees that
are not required to be deferred. Refer to the Glossary entry for ‘‘loan fees’’ for further information.
(10) Service charges on deposit accounts in foreign
offices.
(11) Net tellers’ overages (shortages), net recoveries
(losses) on forged checks, net recoveries (losses) on
payment of checks over stop payment orders, and
similar recurring operating gains (losses) of this
type. Bank holding companies should consistently
report these gains (losses) either in this item or in
Schedule HI, item 7(d).
(12) Net gains (losses) from the sale or other disposal of
branches (i.e., where the reporting bank holding
company sells a branch’s assets to another depository institution, which assumes the deposit liabilities of the branch). Bank holding companies should
consistently report these net gains (losses) either in
this item or in Schedule HI, item 7(d).
(13) Net gains (losses) from all transactions involving
foreign currency or foreign exchange other than
trading transactions. Bank holding companies
should consistently report these net gains (losses)
either in this item or in Schedule HI, item 7(d).
(14) Rental fees applicable to operating leases for furniture and equipment rented to others.
(15) Interest recieved on tax refunds.
(16) Life insurance proceeds on policies for which the
bank holding company or its subsidiaries are the
beneficiary.
(17) Credits resulting from litigation or other claims.
(18) Portions of penalties for early withdrawals of time
deposits that exceed the interest accrued or paid on
the deposit to the date of withdrawal, if material.
Penalties for early withdrawals, or portions of such
penalties, that represent the forfeiture of interest
accrued or paid to the date of withdrawal are a
reduction of interest expense and should be deducted
from the gross interest expense of the appropriate
HI-11

Schedule HI

category
of
time
deposits
in
ule HI, item 2(a), ‘‘Interest on deposits.’’

Sched-

(19) Interest income from advances to, or obligations of,
and the bank holding company’s proportionate
share of the income or loss before extraordinary
items and other adjustments from its investments
in:
(a) Unconsolidated subsidiaries,
(b) Associated companies, and
(c) Corporate joint ventures, unincorporated joint
ventures, general partnerships, and limited partnerships over which the bank holding company
exercises significant influence,
other than those that are principally engaged in
investment banking, advisory, brokerage, or securites underwriting activities; venture capital activities; insurance and reinsurance underwriting activities; or insurance and annunity sales activities (the
income from which should be reported in Schedule HI, items 5(d), 5(e), 5(h)(1) and 5(h)(2),
respectively). Exclude the bank holding company’s
proportionate share of material extraordinary items
and other adjustments of these entities (report in
Schedule HI, item 12, ‘‘Extraordinary items and
other adjustments, net of income taxes’’).
(20) Net gains (losses) on nonhedging derivative instruments held for purposes other than trading. Bank
holding companies should consistently report these
net gains (losses) either in this item or in Schedule
HI, item 7(d). For further information, see the
Glossary entry for ‘‘derivative contracts.’’
(21) Gross income generated by securities contributed to
charitable contribution Clifford Trusts.
(22) Income from ground rents and air rights.
(23) Revaluation adjustments to the carrying value of all
assets and liabilities reported in Schedule HC at fair
value under a fair value option (excluding servicing
assets and liabilities reported in Schedule HC, item
10(b), "Other intangible assets," and Schedule HC,
item 20, "Other liabilities," respectively, and assets
and liabilities reported in Schedule HC, item 5,
"Trading assets," and Schedule HC, item 15, "Trading liabilities," respectively) resulting from the
periodic marking of such assets and liabilities to
HI-12

fair value. (Report the amount of this income in
Schedule HI, Memorandum item 6(i), if the absolute value of this amount exceeds 1 percent of the
sum of the bank holding company’s total interest
income from Schedule HI, item 1(h), and its total
noninterest income from Schedule HI, item 5(m)
Exclude the contractual amounts of interest income
earned and interest expense incurred on financial
assets and liabilities reported at fair value under a
fair value option, which should be reported in the
appropriate interest income or interest expense
items on Schedule HI.
Line Item 5(m)

Total noninterest income.

Report the sum of items 5(a) through 5(l).
Line Item 6(a) Realized gains (losses) on
held-to-maturity securities.
Report the net gain or loss realized during the calendar
year-to-date from the sale, exchange, redemption, or
retirement of all securities reportable in Schedule HC,
item 2(a), ‘‘Held-to-maturity securities.’’ The realized
gain or loss is the difference between the sales price
(excluding interest at the coupon rate accrued since the
last interest payment date, if any) and the amortized cost.
Also include in this item the write-downs of the cost basis
of individual held-to-maturity securities for other-thantemporary impairments. If the amount to be reported in
this item is a net loss, enclose it in parentheses.
Do not adjust for applicable income taxes (income taxes
applicable to gains (losses) on held-to-maturity securities
are to be included in the applicable income taxes reported
in item 9 below).
Exclude:
(1) Realized gains (losses) on available-for-sale securities (report in Schedule HI, item 6(b) below) and
trading securities (report in Schedule HI, item 5(c)
above).
(2) Net gains (losses) from the sale of detached securities
coupons and the sale of ex-coupon securities (report
in item 5(l), ‘‘Other noninterest income,’’ or item 7(d),
‘‘Other noninterest expense,’’ as appropriate). (Refer
to the Glossary entry for ‘‘coupon stripping’’ for
further information.)
Schedule HI

FR Y-9C
March 2007

Schedule HI

Line Item 6(b) Realized gains (losses) on
available-for-sale securities.
Report the net gain or loss realized during the calendar
year-to-date from the sale, exchange, redemption, or
retirement of all securities reportable in Schedule HC,
item 2(b), ‘‘Available-for-sale securities.’’ The realized
gain or loss is the difference between the sales price
(excluding interest at the coupon rate accrued since the
last interest payment date, if any) and the amortized cost.
Also include in this item write-downs of the cost basis of
individual available-for-sale securities for other-thantemporary impairments. If the amount to be reported in
this item is a net loss, enclose it in parentheses.
Do not adjust for applicable income taxes (income taxes
applicable to gains (losses) on available-for-sale securities are to be included in the applicable income taxes
reported in item 9 below).
Exclude:
(1) The change in net unrealized holding gains (losses)
on available-for-sale securities during the calendar
year to date (report in Schedule HI-A, item 12).
(2) Realized gains (losses) on held-to-maturity securities
(report in Schedule HI, item 6(a) above) and on
trading securities (report in Schedule HI, item 5(c)
above).
(3) Net gains (losses) from the sale of detached securities
coupons and the sale of ex-coupon securities (report
in item 5(l), ‘‘Other noninterest income,’’ or item 7(d),
‘‘Other noninterest expense,’’ as appropriate). (Refer
to the Glossary entry for ‘‘coupon stripping’’ for
further information.)
Line Item 7

Noninterest expense:

Line Item 7(a)

Salaries and employee benefits.

Report salaries and benefits of all officers and employees
of the bank holding company and its consolidated subsidiaries including guards and contracted guards, temporary
office help, dining room and cafeteria employees, and
building department officers and employees (including
maintenance personnel). Include as salaries and employee
benefits:
(1) Gross salaries, wages, overtime, bonuses, incentive
compensation, and extra compensation.
FR Y-9C
Schedule HI

March 2007

(2) Social security taxes and state and federal unemployment taxes paid by the consolidated bank holding company.
(3) Contributions to the consolidated bank holding
company’s retirement plan, pension fund, profitsharing plan, employee stock ownership plan, employee stock purchase plan, and employee savings
plan.
(4) Premiums (net of dividends received) on health and
accident, hospitalization, dental, disability, and life
insurance policies for which the consolidated bank
holding company is not the beneficiary.
(5) Cost of office temporaries whether hired directly by
the bank holding company or its consolidated subsidiaries or through an outside agency.
(6) Workmen’s compensation insurance premiums.
(7) The net cost to the bank holding company or its
consolidated subsidiaries for employee dining
rooms, restaurants, and cafeterias.
(8) Accrued vacation pay earned by employees during
the calendar year-to-date.
(9) The cost of medical or health services, relocation
programs and reimbursements of moving expenses,
tuition reimbursement programs, and other socalled fringe benefits for officers and employees.
(10) Compensation expense (service component and
interest component) related to deferred compensation agreements.
Exclude from salaries and employee benefits (report in
item 7(d), ‘‘Other noninterest expense’’):
(1) Amounts paid to attorneys, accountants, management consultants, investment counselors, and other
professionals who are not salaried officers or
employees of the bank holding company or its
consolidated subsidiaries.
(2) The cost of bank holding company or consolidated
subsidiary newspapers and magazines prepared for
distribution to bank holding company or its consolidated subsidiaries’ officers and employees.
(3) Premiums on life insurance policies for which the
bank holding company or its consolidated subsidiaries are the beneficiary.
HI-13

Schedule HI

(4) Dues, fees, and other expenses associated with
memberships in country clubs, social or private
clubs, civic organizations, and similar clubs and
organizations.
Line Item 7(b)
assets.

Expenses of premises and fixed

Report all noninterest expenses related to the use of
premises, equipment, furniture, and fixtures, net of rental
income, that are reportable in Schedule HC, item 6,
‘‘Premises and fixed assets.’’ If this net amount is a credit
balance, enclose it in parentheses.
Deduct rental income from gross premises and fixed asset
expense. Rental income includes all rentals charged for
the use of buildings not incident to their use by the
reporting bank holding company or its consolidated
subsidiaries, including rentals by regular tenants of the
bank holding company’s or its consolidated subsidiaries’
buildings, income received from short-term rentals of
other facilities of the bank holding company or its
consolidated subsidiaries, and income from sub-leases.
Also deduct income from assets that indirectly represent
premises, equipment, furniture, or fixtures reportable in
Schedule HC, item 6, ‘‘Premises and fixed assets.’’
Include as expenses of premises and fixed assets:e
(1) Normal and recurring depreciation and amortization charges against assets reportable in Schedule HC, item 6, ‘‘Premises and fixed assets,’’ including capital lease assets, which are applicable to the
calendar year-to-date, whether they represent direct
reductions in the carrying value of the assets or
additions to accumulated depreciation or amortization accounts. Any method of depreciation or amortization conforming to accounting principles that
are generally acceptable for financial reporting
purposes may be used. However, depreciation for
premises and fixed assets may be based on the
Accelerated Cost Recovery System (ACRS) used
for federal income tax purposes if the results would
not be materially different from depreciation based
on the asset’s estimated useful life.
(2) All operating lease payments made by the bank
holding company or its consolidated subsidiaries
on premises (including parking lots), equipment
(including data processing equipment), furniture,
and fixtures.
HI-14

(3) Cost of ordinary repairs to premises (including
leasehold improvements), equipment, furniture, and
fixtures.
(4) Cost of service or maintenance contracts for equipment, furniture, and fixtures.
(5) Cost of leasehold improvements, equipment, furniture, and fixtures charged directly to expense and
not placed on the consolidated bank holding company’s books as assets.
(6) Insurance expense related to the use of premises,
equipment, furniture, and fixtures including such
coverages as fire, multi-peril, boiler, plate glass,
flood, and public liability.
(7) All property tax and other tax expense related to
premises (including leasehold improvements),
equipment, furniture, and fixtures, including deficiency payments, net of all rebates, refunds, or
credits.
(8) Any portion of capital lease payments representing
executory costs such as insurance, maintenance,
and taxes.
(9) Cost of heat, electricity, water, and other utilities
connected with the use of premises and fixed assets.
(10) Cost of janitorial supplies and outside janitorial
services.
(11) Fuel, maintenance, and other expenses related to
the use of bank holding company- or consolidated
subsidiary-owned automobiles, airplanes, and other
vehicles for bank holding company or consolidated
subsidiaries’ business.
Exclude from expenses of premises and fixed assets:
(1) Salaries and employee benefits (report such expenses
for all officers and employees of the bank holding
company and its consolidated subsidiaries in item 7(a),
‘‘Salaries and employee benefits’’).
(2) Interest on mortgages, liens, or other encumbrances
on premises or equipment owned, including the
portion of capital lease payments representing interest expense (report in item 2(c), ‘‘Interest on trading
liabilities and other borrowed money’’).
(3) All expenses associated with other real estate owned
(report in item 7(d), ‘‘Other noninterest expense’’).
Schedule HI

FR Y-9C
March 2007

Schedule HI

(4) Gross rentals from other real estate owned and fees
charged for the use of parking lots properly reported
as other real estate owned, as well as safe deposit box
rentals and rental fees applicable to operating leases
for furniture and equipment rented to others (report
in item 5(l), ‘‘Other noninterest income’’).
Line Item 7(c)(1)

Goodwill impairment losses.

Report any impairment losses recognized during the
period on goodwill (as defined for Schedule HC,
item 10(a)). Exclude the amortization expense of and any
impairment losses on any unidentifiable intangible assets
recorded in accordance with FASB Statement No. 72
(report such amortization expense in Schedule HI,
item 7(c)(2)). Also exclude goodwill impairment losses
associated with discontinued operations (report such
losses on a net-of-tax basis in Schedule HI, item 12,
‘‘Extraordinary items, net of applicable taxes and minority interest’’).
Impairment losses on goodwill should be tested at the
consolidated bank holding company level in accordance
with FASB Statement No. 142, Goodwill and Other
Intangible Assets, if there is impairment losses at a
subsidiary level using the subsidiary’s reporting units. If
goodwill impairment loss is recognized at a subsidiary
level, then goodwill of the reporting unit or units (at the
higher consolidated level) in which the subsidiary’s
reporting unit with impaired goodwill resides must be
tested for impairment if the events or conditions that gave
rise to the loss at the subsidiary level would more likely
than not reduce the fair value of the reporting unit (at the
higher consolidated level) below its carrying amount.
Only if goodwill at that higher-level reporting unit is
impaired would a goodwill impairment loss be recognized at the consolidated level.
Goodwill is considered impaired when the amount of
goodwill exceeds its implied fair value at the reporting
unit level. If the carrying amount of reporting unit
goodwill exceeds its implied fair value, an impairment
loss must be recognized in earnings in an amount equal to
that excess and reported in this item. The loss recognized
cannot exceed the carrying amount of the reporting unit’s
goodwill. After a goodwill impairment loss is recognized, the adjusted carrying amount of goodwill shall be
its new accounting basis. Subsequent reversal of a previously recognized goodwill impairment loss is prohibited
once the measurement of that loss is completed.
FR Y-9C
Schedule HI

March 2007

Goodwill of a reporting unit must be tested for impairment annually and between annual tests if an event
occurs or circumstances change that would more likely
than not reduce the fair value of a reporting unit below its
carrying amount. Examples of such events or circumstances include a significant adverse change in the business climate, unanticipated competition, a loss of key
personnel, and an expectation that a reporting unit or a
significant portion of a reporting unit will be sold or
otherwise disposed of. In addition, goodwill must be
tested for impairment after a portion of goodwill has been
allocated to a business to be disposed of.
When a reporting unit is to be disposed of in its entirety,
goodwill of that reporting unit must be included in the
carrying amount of the reporting unit in determining the
gain or loss on disposal. When a portion of a reporting
unit that constitutes a business is to be disposed of,
goodwill associated with that business must be included
in the carrying amount of the business in determining the
gain or loss on disposal. Otherwise, a bank holding
company may not remove goodwill from its balance
sheet, for example, by ‘‘selling’’ or ‘‘dividending’’ this
asset to its parent holding company or another affiliate.
Until interpretive guidance concerning the application of
the purchase method of accounting for business combinations between two or more mutual institutions is issued
by the FASB and takes effect, mutual institutions must
continue to amortize goodwill and test goodwill for
impairment in accordance with APB Opinion No. 17.
Mutual institutions should report this goodwill amortization expense and any goodwill impairment losses in this
item.
Line Item 7(c)(2) Amortization expense and
impairment losses for other intangible assets.
Report the amortization expense of and any impairment
losses on ‘‘Other intangible assets’’ (as defined for Schedule HC, item 10(b)). Under FASB Statement No. 142,
intangible assets that have indefinite useful lives should
not be amortized but must be tested at least annually for
impairment. Intangible assets that have finite useful lives
must be amortized over their useful lives and must be
reviewed for impairment in accordance with FASB Statement No. 144.
Include in this item the amortization expense of and any
impairment losses on any unidentifiable intangible assets
recorded in accordance with FASB Statement No. 72.
HI-15

Schedule HI

However, exclude the amortization expense of and any
impairment losses on servicing assets, which should be
netted against the servicing income reported in Schedule HI, item 5(f), ‘‘Net servicing fees,’’ above.
Line Item 7(d)

Other noninterest expense.

Report all operating expenses of the bank holding company for the calendar year-to-date not required to be
reported elsewhere in Schedule HI. Disclose in Schedule
HI, Memoranda items 6(a) through 6(j), each component
of other noninterest expense, and the dollar amount of
such component, that exceeds 1 percent of the sum of the
bank holding company’s total interest income (from
Schedule HI, item 1(h)) and its total noninterest income
(from Schedule HI, item 5(m)). For each component of
other noninterest expense that exceeds this disclosure
threshold for which a preprinted caption has not been
provided in Schedule HI, Memoranda items 6(a) through
6(g), describe the component with a clear but concise
caption in Schedule HI, Memoranda items 6(h) through
6(j). These descriptions should not exceed 50 characters
in length (including spacing between words).
Include as other noninterest expense:
(1) Fees paid to directors and advisory directors for
attendance at board of directors or committee meetings (including travel and expense allowances).
(2) Premiums on fidelity insurance (blanket bond,
excess employee dishonesty bond), directors’ and
officers’ liability insurance, and life insurance policies for which the bank holding company or its
consolidated subsidiaries are the beneficiary.
(3) Federal deposit insurance and Comptroller of the
Currency assessment expense net of all assessment
credits during the period.
(4) Legal fees and other direct costs incurred in connection with foreclosures and subsequent noninterest
expenses related to holdings of real estate owned
other than bank holding company (or its consolidated subsidiaries) premises (including depreciation charges or other write-downs if prescribed
by law or by regulatory agencies or if otherwise
appropriate).
(5) Sales taxes, taxes based on the number of shares
of bank holding company stock outstanding, taxes
based on the consolidated bank holding company’s
total assets or total deposits, taxes based on the
HI-16

bank’s gross revenues or gross receipts, capital
stock taxes, and other taxes not included in other
categories of expense. Exclude any foreign, state,
and local taxes based on a net amount of revenues
less expenses (report as applicable income taxes in
item 9 or include as applicable income taxes on
extraordinary items in item 12, as appropriate).
(6) Cost of data processing services performed for the
consolidated bank holding company by others.
(7) Advertising, promotional, public relations, and
business development expenses. Also include the
cost of athletic activities in which officers and
employees participate when the purpose may be
construed to be for public relations with employee
benefits only incidental to the activities.
(8) Costs of gifts or premiums (whether in the form
of merchandise, credit, or cash) given to depositors
at the time of the opening of a new account or an
addition to, or renewal of, an existing account.
(9) Fees levied by deposit brokers that are, in substance, retainer fees or that otherwise do not represent an adjustment to the interest rate paid on
deposits the reporting bank acquires through brokers. However, report as interest expense on the
appropriate category of deposits those finders’ fees
and brokers’ fees that do represent an adjustment to
the interest rate paid on brokered deposits.
(10) Research and development costs and costs incurred
in the internal development of computer software.
(11) Net losses (gains) from all transactions involving
foreign currency or foreign exchange other than
trading transactions. Bank holding companies
should consistently report these net losses (gains)
either in this item or in Schedule HI, item 5(l)
above.
(12) Charges resulting from litigation or other claims.
(13) Charitable contributions including donations by
Clifford Trusts.
(14) Retainer fees, legal fees, audit fees, and other fees
and expenses paid to attorneys, accountants, management consultants, investment counselors, and
other professionals who are not officers or employees of the bank holding company or its consolidated
subsidiaries.
Schedule HI

FR Y-9C
March 2007

Schedule HI

(15) Office supplies purchased, printing, and postage.
(16) Telephone and telegraph expenses.
(17) Examination and other fees levied by the Federal
Reserve.
(18) Net tellers’ shortages, forged check losses, losses
on payment of checks over stop payment orders,
losses from counterfeit money, and similar recurring operating losses of this type.
(19) Losses from robberies, defalcations, and other
criminal acts not covered by the consolidated bank
holding company’s blanket bond.
(20) Travel and entertainment expenses, including costs
incurred by officers and employees of the bank
holding company or its consolidated subsidiaries
for attending meetings and conventions.
(21) Dues, fees, and other expenses associated with
memberships in country clubs, social or private
clubs, civic organizations, and similar clubs and
organizations.
(22) Civil money penalties and fines.
(23) All service charges, commissions, and fees levied
by others for the repossession of assets and the
collection of the consolidated bank holding company’s loans or other assets, including charged-off
loans or other charged-off assets.
(24) Expenses (except salaries) related to handling credit
card or charge sales received from merchants when
the bank holding company or its consolidated subsidiaries do not carry the related loan accounts on
its books. Bank holding companies are also permitted to net these expenses against their charges to
merchants for the bank holding company’s handling of these sales reported in item 5(l) above.

sold, leased, or otherwise marketed capitalized in
accordance with the provision of FASB Statement
No. 86.
(29) Net losses (gains) on nonhedging derivative instruments held for purposes other than trading. Bank
holding companies should consistently report these
net losses (gains) either in this item or in Schedule HI, item 5(l). For further information, see the
Glossary entry for ‘‘derivative contracts.’’
(30) Net tellers’ shortages (overages), net losses (recoveries) on forged checks, net losses (recoveries) on
payment of checks over stop payment orders, and
similar recurring operating losses (gains) of this
type. Bank holding companies should consistently
report these losses (gains) either in this item or in
Schedule HI, item 5(l).
(31) Benefit, losses and expenses from insurance-related
activities. (Also report separately in Schedule HI,
memorandum item 12(c)).
(32) Provision for credit losses on off-balance sheet
credit exposures.
(33) Net losses (gains) from the extinguishment of
liabilities (debt), including losses resulting from the
payment of prepayment penalties on borrowings
such as Federal Home Loan Bank advances. However, if a bank holding company’s debt extinguishments normally result in net gains over time, then
the bank should consistently report its net gains
(losses) in Schedule HI, item 5(l), ‘‘Other noninterest income.’’
Exclude from other noninterest expense:

(27) Cost of checks provided to depositors.

(1) Material expenses incurred in the issuance of subordinated notes and debentures (capitalize such
expenses and amortize them over the life of the
related notes and debentures and report the expense
in item 2(d) ‘‘Interest on subordinated notes
and debentures and on mandatory convertible
securities’’), and material expenses incurred in the
issuance of notes payable to unconsolidated special
purpose entities that issue trust preferred securities
(capitalize such expenses and amortize them over the
life of the related notes payable and report the
expense in item 2(e), ‘‘Other interest expense’’).

(28) Amortization expense of purchased computer software and of the costs of computer software to be

(2) Expenses incurred in the sale of preferred and common stock. (Deduct such expenses from the sale

(25) The cost of newspapers and magazines of the bank
holding company or its consolidated subsidiaries
prepared for distribution to bank officers and
employees or to others.
(26) Depreciation expense of furniture and equipment
rented to others under operating leases.

FR Y-9C
Schedule HI

March 2007

HI-17

Schedule HI

proceeds and credit the net amount to the appropriate
stock account. For perpetual preferred and common
stock only, report the net sales proceeds in Schedule HI-A, item 5(a), ‘‘Sale of perpetual preferred
stock, gross’’ and item 6(a), ‘‘Sale of common stock,
gross’’ as appropriate.)

(losses) on available-for-sale securities,’’ minus item 7(e),
‘‘Total noninterest expense.’’ If the result is negative,
enclose it in parentheses.

(3) Depreciation and other expenses related to the use of
automobiles owned by the bank holding company
or its consolidated subsidiaries, airplanes, and other
vehicles for bank holding company (or its consolidated subsidiaries) business (report in item 7(b),
‘‘Expenses on premises and fixed assets, net of rental
income’’).

Report the total estimated federal, state and local, and
foreign income tax expense applicable to item 8, ‘‘Income
(loss) before income taxes and extraordinary items and
other adjustments,’’ including the tax effects of gains
(losses) on securities not held in trading accounts (i.e.,
available-for-sale securities and held-to-maturity securities). Include both the current and deferred portions of
these income taxes. If the amount is a tax benefit rather
than tax expense, enclose it in parentheses.

(4) Write-downs of the cost basis of individual heldto-maturity and available-for-sale securities for
other than temporary impairments (report in Schedule HI, item 6(a), ‘‘Realized gains (losses) on heldto-maturity securities,’’ and item 6(b), ‘‘Realized
gains (losses) on available-for-sale securities,’’
respectively).
(5) Revaluation adjustments to the carrying value of all
assets and liabilities reported in Schedule HC at fair
value under a fair value option. Bank holding companies should report these net decreases (increases) in
fair value on trading assets and liabilities in Schedule
HI, item 5(c); on servicing assets and liabilities in
Schedule HI, item 5(f); and on other financial assets
and liabilities in Schedule HI, item 5(l). Contractual
amounts of interest income earned and interest
expense incurred on these financial assets and liabilities should be excluded from the net decreases
(increases) in fair value and reported in the appropriate interest income or interest expense items on
Schedule HI.
Line Item 7(e)

Total noninterest expense.

Report the sum of items 7(a) through 7(d).
Line Item 8 Income (loss) before income taxes,
extraordinary items, and other adjustments.
Report the consolidated bank holding company’s pretax
operating income. This amount will generally be determined by taking item 3, ‘‘Net interest income,’’ minus
item 4, ‘‘Provision for loan and lease losses,’’ plus
item 5(m), ‘‘Total noninterest income,’’ plus or minus
item 6(a), ‘‘Realized gains (losses) on held-to-maturity
securities,’’ plus or minus item 6(b), ‘‘Realized gains
HI-18

Line Item 9

Applicable income taxes (on item 8).

Include as applicable income taxes all taxes based on a
net amount of taxable revenues less deductible expenses.
Exclude from applicable income taxes all taxes based on
gross revenues or gross receipts (report such taxes in
item 7(d), ‘‘Other noninterest expense’’).
Include income tax effects of changes in tax laws or rates.
Also include the effect of changes in the valuation
allowance related to deferred tax assets resulting from a
change in estimate of the realizability of deferred tax
assets, excluding the effect of any valuation allowance
changes related to unrealized holding gains (losses) on
available-for-sale securities that are charged or credited
directly to the separate component of equity capital for
‘‘Accumulated other comprehensive income’’ (Schedule HC, item 26(b)).
Include tax benefits from operating loss carrybacks realized during the reporting period. If the consolidated
bank holding company has realized tax benefits from
operating loss carryforwards during the reporting period,
do not net the dollar amount of these benefits against
the income taxes which would be applicable to item 8,
‘‘Income (loss) before income taxes and extraordinary
items and other adjustments.’’ Report the dollar amount
of income taxes applicable to item 8 in this item and
report the realized tax benefits of operating loss carryforwards gross in item 12, ‘‘Extraordinary items, net of
applicable taxes and minority interest.’’
Also include the dollar amount of any material adjustments or settlements reached with a taxing authority
(whether negotiated or adjudicated) relating to disputed
income taxes of prior years.
Schedule HI

FR Y-9C
March 2007

Schedule HI

Exclude the estimated federal, state and local, and foreign income taxes applicable to:
(1) Item 12, ‘‘Extraordinary items, net of applicable
income taxes and minority interest.’’
(2) Schedule HI-A, item 2, ‘‘Restatements due to corrections of material accounting errors and changes in
accounting principles.’’
(3) Schedule HI-A, item 12, ‘‘Other comprehensive
income.’’
Line Item 10

Minority interest.

Report the minority interests in the net income or loss
of the reporting bank holding company’s consolidated
subsidiaries.
Line Item 11 Income (loss) before extraordinary
items and other adjustments.
Report the difference between item 8, ‘‘Income (loss)
before income taxes and extraordinary items and other
adjustments’’ and the sum of item 9, ‘‘Applicable income
taxes (on item 8),’’ and item 10, ‘‘Minority interest.’’ If
the amount is negative, enclose it in parentheses.
Line Item 12 Extraordinary items, net of
applicable income taxes and minority interest.
Report the total of the transactions listed below, if any,
net of any applicable income taxes (including federal,
state and local, and foreign taxes). If the amount reported
in this item is a net loss, enclose it in parentheses.
Include as extraordinary items and other adjustments:
(1) The material effects of any extraordinary items.
Extraordinary items are very rare and the criteria
which must be satisfied in order for an event or
transaction to be reported as an extraordinary item
are discussed in the Glossary entry for ‘‘extraordinary items.’’
(2) Material aggregate gains on troubled debt restructurings of the consolidated bank holding company’s
own debt, as determined in accordance with the
provisions of FASB Statement No. 15.
(3) The cumulative effect of all changes in accounting
principles except those required to be reported in
Schedule HI-A, item 2, ‘‘Restatements due to corrections of material accounting errors and changes in
FR Y-9C
Schedule HI

March 2007

accounting principles.’’ Refer to the Glossary entry
for ‘‘accounting changes’’ for further discussion of
changes in accounting principles.
(4) The results of discontinued operations as determined
in accordance with the provisions of FASB Statement
No. 144.
Exclude from extraordinary items and other adjustments:
(1) Net gains or losses on sales or other disposals of:
(a) All assets reportable as loans and leases in Schedule HC-C.
(b) Premises and fixed assets.
(c) Other real estate owned.
(d) Personal property acquired for debts previously
contracted (such as automobiles, boats, equipment and appliances).
(e) Coins, art, and other similar assets.
(f) Branches (i.e., where the consolidated bank holding company sells a branch’s assets to another
depository institution which assumes the deposit
liabilities of the branch).
For the first five categories above, bank holding
companies should report net gains (losses) in the
appropriate category of ‘‘Noninterest income’’ in
Schedule HI, item 5. For the final category above,
bank holding companies should consistently report net gains (losses) from branch sales as
‘‘Other noninterest income’’ in Schedule HI, item
5(l), or as ‘‘Other noninterest expense’’ in Schedule HI, item 7(d).
(2) Write-downs of the cost basis of individual heldto-maturity and available-for-sale securities for
other than temporary impairments (report in Schedule HI, item 6(a), ‘‘Realized gains (losses) on
held-to-maturity securities,’’ and item 6(b), ‘‘Realized gains (losses) on available-for-sale securities,’’
respectively).

Line Item 13

Net income (loss).

Report the sum of items 11, and 12. This item must equal
Schedule HI-A, item 4, ‘‘Net income (loss).’’ If this
amount is a net loss, enclose it in parentheses.
HI-19

Schedule HI

Memoranda
Line Item M1 Net interest income (item 3 above)
on a fully taxable equivalent basis.
Report net interest income (Schedule HI, item 3 above)
on a fully taxable equivalent basis. The amount reported
in this item should reflect what net interest income of the
reporting bank holding company would be if all its
interest income was subject to federal and state income
taxes.
The following accounts on which the interest income is
fully or partially tax-exempt, should be adjusted to a
‘‘taxable equivalent’’ basis in order that the holding
company can compute its net interest income on a fully
taxable equivalent basis:
(1) interest income on tax-exempt obligations (other than
securities) of states and political subdivisions in the
U.S. (included in Schedule HI, item 1(a));
(2) income on tax-exempt securities issued by states and
political subdivisions in the U.S. (included in Schedule HI, item 1(d)(3));
(3) income on lease financing receivables that is taxexempt (included in Schedule HI, item 1(b)); and
(4) any other interest income (such as interest income
earned on loans to an Employee Stock Ownership
Plan), which under state or federal laws is partially or
in its entirety exempt from income taxes.
The changes to the 1986 Tax Reform Act must be taken
into consideration when computing net interest income
on a fully taxable equivalent basis. The 1986 Act, in
general, disallowed 100% of the interest expense allocable to tax-exempt obligations acquired after August 7,
1986. Previous to that date, and after December 31, 1982,
the disallowance percentage was 20%; previous to December 31, 1982, the disallowance was 0%.
Line Item M2 Net income before income taxes,
extraordinary items, and other adjustments (item 8
above) on a fully taxable equivalent basis.
Report net income before income taxes, extraordinary
items, and other adjustments (item 8 above) on a fully
taxable equivalent basis. The amount reported in this
item should reflect what net income of the reporting bank
holding company would be if all its income was subject
to federal and state income taxes. For purposes of this
item, include net interest income on a fully taxable
HI-20

equivalent basis as reported in memoranda item 1 above
plus all other income and expense adjusted to reflect the
holding company’s net income on a fully taxable equivalent basis.
Line Item M3 Income on tax-exempt loans and
leases to states and political subdivisions in the U.S.
(included in items 1(a) and 1(b) above).
Report the bank holding company’s best estimate of the
income from all tax-exempt loans and leases extended
to states and political subdivisions in the U.S. that is
included in items 1(a) and 1(b) above.
Tax-exempt loans and leases are those loans and leases to
states and political subdivisions in the U.S. whose income
is excludable from gross income for federal income tax
purposes, regardless of whether the income from the loan
or lease must be included in the bank holding company’s
alternative minimum taxable income and regardless of
the federal income tax treatment of the expense incurred
to carry the loan or lease.
Line Item M4 Income on tax-exempt securities
issued by states and political subdivisions in the U.S.
(included in item 1(d)(3) above).
Report the bank holding company’s best estimate of the
income from all tax-exempt securities issued by states
and political subdivisions in the U.S. that is included in
item 1(d)(3) above.
Line Item M5 Number of full-time equivalent
employees at end of current period.
Report the number of full-time equivalent employees on
the payroll of the bank holding company and its consolidated subsidiaries as of the report date.
To convert the number of part-time employees to fulltime equivalent employees, add the total number of hours
all part-time and temporary employees worked during the
quarter ending on the report date and divide this amount
by the number of hours a full-time employee would have
been expected to work during the quarter. Round the
result to the nearest whole number and add it to the
number of full-time employees. (A full-time employee
may be expected to work more or less than 40 hours each
week, depending on the policies of the reporting bank
holding company.)
Schedule HI

FR Y-9C
March 2007

Schedule HI

Line Item M6 Other noninterest income (only
report amounts that exceed 1 percent of the sum
of Schedule HI, items 1(h) and 5(m) above):

items 6(f) through 6(h), then these items should be left
blank.

Disclose in memoranda items 6(a) through 6(i) each
component of Schedule HI, item 5(l), ‘‘Other noninterest
income,’’ and the dollar amount of such component, that
exceeds 1 percent of the sum of ‘‘Total interest income’’
and ‘‘Total noninterest income’’ (Schedule HI, item 1(h)
plus item 5(m)).

Line Item M7 Other noninterest expense (only
report amounts that exceed 1 percent of the sum
of Schedule HI, items 1(h) and 5(m) above):

Preprinted captions have been provided for the following
categories of ‘‘Other noninterest income’’:
• M6(a), ‘‘Income and fees from the printing and sale of
checks,’’
• M6(b), ‘‘Earnings on/increase in value of cash surrender value of life insurance,’’

Disclose in memoranda items 7(a) through 7(j) each
component of Schedule HI, item 7(d), ‘‘Other noninterest
expense,’’ and the dollar amount of such component, that
exceeds 1 percent of the sum of ‘‘Total interest income’’
and ‘‘Total noninterest income’’ (Schedule HI, item 1(h)
plus item 5(m)).
Preprinted captions have been provided for the following
categories of ‘‘Other noninterest expense’’:
• M7(a), ‘‘Data processing expenses,’’

• M6(c), ‘‘Income and fees from automated teller
machines (ATMs),’’

• M7(b), ‘‘Advertising and marketing expenses,’’

• M6(d), ‘‘Rent and other income from other real estate
owned,’’

• M7(d), ‘‘Printing, stationery, and supplies,’’

• M6(e), ‘‘Safe deposit box rent.’’

• M7(c), ‘‘Directors’ fees,’’

• M7(e), ‘‘Postage,’’
• M7(f), ‘‘Legal fees and expenses,’’

• M6(i), ‘‘Net change in the fair values of financial
instruments accounted for under a fair value option.’’

• M7(g), ‘‘FDIC deposit insurance assessments.’’

For other components of ‘‘other noninterest income’’ that
exceed the disclosure threshold, list and briefly describe
these components in memoranda items 6(f) through 6(h).

For other components of ‘‘other noninterest expense’’
that exceed the disclosure threshold, list and briefly
describe these components in memoranda items 7(h)
through 7(j).

If losses have been reported in Schedule HI, item 5(l),
use the absolute value of such losses to determine
whether the amount of the losses exceeds one percent of
the total amount reported in items 1(h) plus 5(m) and
whether such losses should be reported in this memorandum item. (The absolute value refers to the magnitude of
the dollar amount without regard to whether the amount
is a net gain or loss.) If losses are reported in this
memorandum item, enclose in parentheses. A sample of
the types of items that may require disclosure has been
included in the instructions to item 5(l) above. The
description of each item reported in memoranda items 6(f)
through 6(h) should be reported in the area marked as
‘‘text’’ on the report form in a clear and concise manner
and limited to 132 characters per item (including punctuation and spaces). Do not use words such as ‘‘miscellaneous’’ or ‘‘other’’ to describe these items. The dollar
amount should be reported in the adjacent column on the
right. If there are no reportable amounts for memoranda
FR Y-9C
Schedule HI

March 2007

Do not itemize ‘‘Benefits, losses, and expenses from
insurance-related activities.’’ These amounts are reported
separately in Schedule HI, memorandum item 12(c).
If gains have been reported in Schedule HI, item 7(d), use
the absolute value of such gains to determine whether the
amount of the gains exceeds one percent of the total
amount reported in items 1(h) plus 5(l) and whether such
gains should be reported in this memorandum item. (The
absolute value refers to the magnitude of the dollar
amount without regard to whether the amount is a net
gain or loss.) If gains are reported in this memorandum
item, enclose in parentheses. A sample of the types of
items that may require disclosure has been included in
the instructions to item 7(d) above. The description of
each item reported in memoranda items 7(h) through 7(j)
should be reported in the area marked as ‘‘text’’ on the
report form in a clear and concise manner and limited
to 132 characters per item (including punctuation and
HI-21

Schedule HI

spaces). Do not use words such as ‘‘miscellaneous’’ or
‘‘other’’ to describe these items. The dollar amount
should be reported in the adjacent column on the right.
If there are no reportable amounts for memoranda
items 7(h) through 7(j), then these items should be left
blank.
Line Item M8
adjustments.

Extraordinary items and other

List and briefly describe in items M8(a) through M8(c)
below each extraordinary item or adjustment included in
item 12, ‘‘Extraordinary items, net of applicable income
taxes and minority interest’’ below. However, each item
should be reported separately, gross of income taxes and
the income tax effect separately reported, as indicated.
If an extraordinary item or other adjustment is a loss or
otherwise reduces the bank holding company’s income,
enclose the dollar amount reported in parentheses. If an
applicable income tax effect is a tax benefit (rather than
a tax expense), enclose the dollar amount reported in
parentheses.
Line Item M9 Trading revenue (from cash
instruments and derivative instruments).
Memorandum items 9(a) through 9(e) are to be completed by bank holding companies that reported average
trading assets (in Schedule HC-K, item 4(a)) of $2 million or more for any quarter of the preceding calendar
year.
Report, in the appropriate item below, a breakdown of
trading revenue that has been included in the body of the
income statement in Schedule HI, item 5(c). For each of
the five types of underlying risk exposure, report the
combined revenue (net gains and losses) from trading
cash instruments and derivative instruments. For purposes of Memorandum item 9, the reporting bank holding company should determine the underlying risk exposure category in which to report the trading revenue from
cash instruments and derivative instruments in the same
manner that the bank holding company makes this determination for other financial reporting purposes. The sum
of Memorandum items 9(a) through 9(e) must equal
Schedule HI, item 5(c).
Line Item M9(a)

Interest rate exposures.

Report in this item net gains (losses) from trading cash
instruments and derivative contracts that the reporting
HI-22

bank holding company manages as interest rate exposures. Interest rate exposures may arise from cash debt
instruments (e.g., U.S. Treasury securities) and interest
rate contracts. Interest rate contracts are those contracts
related to an interest-bearing financial instrument or
whose cash flows are determined by referencing interest
rates or another interest rate contract (e.g., an option on a
futures contract to purchase a Treasury bill). Interest rate
contracts include single currency interest rate swaps,
basis swaps, forward rate agreements, and interest rate
options, including caps, floors, collars, and corridors.
Exclude trading revenue on contracts involving the
exchange of foreign currencies (e.g., cross-currency
swaps and currency options) that the reporting bank
holding company manages as foreign exchange exposures. Report such trading revenue in Memorandum
item 9(b).
Line Item M9(b)

Foreign exchange exposures.

Report in this item net gains (losses) from trading cash
instruments and derivative contracts that the reporting
bank holding company manages as foreign exchange
exposures. Foreign exchange exposures may arise from
cash instruments (e.g., debt securities) denominated in
non-U.S. currencies and foreign exchange rate contracts.
Foreign exchange rate contracts are those contracts to
purchase foreign (non-U.S.) currencies and U.S. dollar
exchange in the forward market (i.e., on an organized
exchange or in an over-the-counter market). A purchase
of U.S. dollar exchange is equivalent to a sale of foreign
currency. Foreign exchange rate contracts include crosscurrency interest rate swaps where there is an exchange
of principal, forward and spot foreign exchange contracts, and currency futures and currency options.
Line Item M9(c)
exposures.

Equity security and index

Report in this item net gains (losses) from trading cash
instruments and derivative contracts that the reporting
bank holding company manages as equity security and
index exposures. Equity security or index exposures may
arise from equity securities and equity security or index
(i.e., equity derivative) contracts. Equity derivative contracts are contracts that have a return, or a portion of their
return, linked to the price of a particular equity or to an
index of equity prices, such as the Standard and Poor’s
500.
Schedule HI

FR Y-9C
March 2007

Schedule HI

Line Item M9(d)

Commodity and other exposures.

Report in this item net gains (losses) from trading cash
instruments and derivative contracts that the reporting
bank holding company manages as commodity or other
exposures. Commodity or other exposures may arise
from commodities and commodity and other derivative
contracts not reported as interest rate, foreign exchange,
equity, or credit derivative contracts. Commodity and
other contracts are contracts that have a return, or a
portion of their return, linked to the price or to an index
of precious metals, petroleum, lumber, agricultural products, etc. Commodity and other contracts also include
any other contracts that are not reportable as interest rate,
foreign exchange, equity, or credit derivative contracts.
Line Item M9(e)

Credit exposures.

Report in this item net gains (losses) from trading cash
instruments and derivative contracts that the reporting
bank holding company manages as credit exposures.
Credit exposures may arise from cash debt instruments
(e.g., debt securities) and credit derivative contracts. In
general, credit derivative contracts are arrangements that
allow one party (the "beneficiary") to transfer the credit
risk of a "reference asset" or "reference entity" to another
party (the "guarantor"). Credit derivative contracts include
credit default swaps, total return swaps, credit options,
and other credit derivatives.
Line Item M10 Net gains (losses) recognized in
earnings on credit derivatives that economically
hedge credit exposures held outside the trading
account.
Report in the appropriate subitem the net gains (losses)
recognized in earnings on credit derivatives that economically hedge credit exposures held outside the trading
account, regardless of whether the credit derivative is
designated as and qualifies as a hedging instrument under
generally accepted accounting principles. Credit exposures held outside the trading account include, for example, nontrading assets (such as available-for-sale securities and loans held for investment) and unused lines of
credit.
Line Item M10(a) Net gains (losses) on credit
derivatives held for trading.
Report the net gains (losses) recognized in earnings on
credit derivatives held for trading (and reportable as
trading assets or trading liabilities, as appropriate, in
FR Y-9C
Schedule HI

March 2007

Schedule HC, item 5 or item 15, respectively) that
economically hedge credit exposures held outside the
trading account. The net gains (losses) on credit derivatives reported in this item will also have been included as
trading revenue in Schedule HI, Memorandum item 9(e),
"Credit exposures."
Line Item M10(b) Net gains (losses) on credit
derivatives held for purposes other than trading.
Report the net gains (losses) recognized in earnings on
credit derivatives held for purposes other than trading
(and reportable as other assets or other liabilities, as
appropriate, in Schedule HC, item 11 or item 20, respectively) that economically hedge credit exposures held
outside the trading account. Net gains (losses) on credit
derivatives held for purposes other than trading should
not be reported as trading revenue in Schedule HI, item
5(c).
Line Item M11

Credit losses on derivatives.

Report the consolidated bank holding company’s year-todate credit losses incurred on derivative contracts (as
defined for Schedule HC-L, items 7 and 11), net of
recoveries (e.g., net charge-offs). The amount reported in
this item should include all credit losses regardless of
whether the consolidated bank holding company charged
such losses directly to income (e.g., trading revenue) or
to another account (e.g., allowance for credit losses on
derivatives).
Line Item M12(a) Income from the sale and
servicing of mutual funds and annuities (in
domestic offices).
Report the amount of income earned by the reporting
bank holding company during the calendar year to datefrom the sale and servicing of mutual funds and annuities
(in domestic offices).
Include in this item:
(1) Income earned in connection with mutual funds
and annuities that are sold on the premises of the
reporting bank holding company or its subsidiaries,
or that are sold by the reporting bank holding company, a subsidiary, or by affiliated or unaffiliated
entities from whom the reporting bank holding company reports income on a consolidated basis in the
FR Y-9C. This income may be in the form of fees or
sales commissions at the time of the sale or fees,
HI-23

Schedule HI

including a share of another entity’s fees, that are
earned over the duration of the account (e.g., annual
fees, Rule 12b-1 fees or ‘‘trailer fees,’’ and redemption fees). Commissions should be reported as income
as earned at the time of the sale (i.e., on an accrual
basis), but may be reported as income when payment
is received if the results would not differ materially
from those obtained using an accrual basis.
(2) Income that is reported on a consolidated basis in the
FR Y-9C from leasing arrangements with affiliated
and unaffiliated entities who lease space in offices
of the reporting bank holding company or its subsidiaries for use in selling mutual funds and annuities. Income from leasing arrangements should be
reported as income as earned (i.e., on an accrual
basis), but may be reported as income when payment
is received if the results would not differ materially
from those obtained using an accrual basis.
(3) Fees for providing investment advisory services for
mutual funds and annuities.
(4) Fees for providing securities custody, transfer agent,
and other operational and ancillary services to mutual
funds and annuities that are sold on the premises of
the reporting bank holding company, or sold by the
reporting bank holding company or its subsidiaries,
through a subsidiary, or by affiliated or unaffiliated
entities from whom the bank holding company
reports income on a consolidated basis in the FR Y-9C
at the time of the sale or over the duration of the
account.
Also include income from sales conducted through the
reporting bank holding company’s trust department that
are not executed in a fiduciary capacity (e.g., trustee,
executor, administrator, conservator) but exclude income
from sales conducted by the trust department that are
executed in a fiduciary capacity.
In general, this income will have been included in
Schedule HI, item 5(d), ‘‘Investment banking, advisory,
brokerage, and underwriting fees and commissions’’ (for
mutual funds) and item 5(h)(2), ‘‘Income from other
insurance and reinsurance activities’’ (for annuities).
However, income from leasing arrangements, or the
portion thereof, that is fixed in amount and does not vary
based on sales volume may have been reported as a
deduction from Schedule HI, item 7(b), ‘‘Expenses of
premises and fixed assets, net of rental income.’’ Thus,
HI-24

the income to be included in this item should be reported
gross rather than net of expenses incurred by the reporting bank holding company or a consolidated subsidiary.
Exclude fees earned for providing securities custody,
transfer agent, and other operational and ancillary services to third party mutual funds and annuities that are
not sold on the premises of the reporting bank holding
company or its consolidated subsidiaries and are not
otherwise sold by the reporting bank holding company,
through a subsidiary, or by affiliated or unaffiliated
entities from whom the reporting bank holding company
receives income at the time of the sale or over the
duration of the account.
Line Item M12(b) Premiums.
Report in memoranda items 12(b)(1) and 12(b)(2) premium revenues from the insurance and reinsurance
underwriting operations of the bank holding company
and its affiliates. Do not include any commission and fee
income from the sale of insurance products.
Line Item M12(b)(1) Premiums on insurance
related to the extension of credit.
Report the amount of premiums from insurance and
reinsurance underwriting reported in item 5(h)(1) above
that were recognized on property, casualty, life, health,
accident, involuntary unemployment and other insurance
coverage related to an extension of credit or lease
financing, e.g., credit life and mortgage insurance. Include
title insurance premiums, forced placed coverage, collateral protection, and private mortgage insurance premiums in this line item. Exclude all insurance and annuity
sales and referral fee revenue (reported in Schedule HI,
line item 5(h)(2)).
Line Item M12(b)(2) All other insurance
premiums.
Report the amount of insurance premiums from insurance and reinsurance underwriting reported in item 5(h)(1)
above other than the credit-related insurance premiums
reported in item M12(b)(1) above. Exclude all insurance
and annuity sales and referral fee revenue (reported in
Schedule HI, line item 5(h)(2)).
Line Item M12(c) Benefits, losses, and expenses
from insurance-related activities.
Report for insurance and reinsurance underwriting activities current and future insurance benefits, interest credited to contractholders, policyholder dividends, amortization of deferred acquisition cost, claims and claims
Schedule HI

FR Y-9C
March 2007

Schedule HI

adjustment expenses and any other operating expenses,
excluding salaries and overhead expense (except salaries
and benefits expense included in claims adjustment
expense), which should be reported in item 7(a) above.

Line Item M13 Does the reporting bank holding
company have a Subchapter S election in effect for
federal income tax purposes for the current tax
year? (Enter ‘‘1’’ for yes; enter ‘‘0’’ for no.)
Indicate whether the bank holding company has elected,
for federal income tax purposes, an ‘‘S corporation’’
status, as defined in Internal Revenue Code Section 1361
as of the report date. Enter ‘‘1’’ for yes; enter ‘‘0’’ for no.
In order to be an S corporation, the bank holding company must have a valid election with the Internal Revenue Service and obtain the consent of all of its shareholders. In addition, the bank holding company must meet
specific criteria for federal income tax purposes at all
times during which the election remains in effect. These
specific criteria include, for example, having no more
than 100 qualifying shareholders and having only one
class of stock outstanding.

Line Item M14

Not applicable.

Memorandum item 16 is to be completed by bank
holding companies that are required to complete Schedule HC-C, Memorandum items 6(b) and 6(c).
Line Item 16 Noncash income from negative
amortization on closed-end loans secured by 1-4
family residential properties.
Report the amount of noncash income from negative
amortization on closed-end loans secured by 1-4 family
residential properties (i.e., interest income accrued and
uncollected that has been added to principal) included in
interest and fee income on loans in domestic offices
(Schedule HI, item 1(a)(1)).
Negative amortization refers to a method in which a loan
is structured so that the borrower’s minimum monthly (or
other periodic) payment is contractually permitted to be
less than the full amount of interest owed to the lender,
with the unpaid interest added to the loan’s principal
balance. The contractual terms of the loan provide that if
the borrower allows the principal balance to rise to a
pre-specified amount or maximum cap, the loan payments are then recast to a fully amortizing schedule.
Negative amortization features may be applied to either
adjustable rate mortgages or fixed rate mortgages, the
latter commonly referred to as graduated payment mortgages (GPMs).

Line Item M15 Stock-based employee
compensation expense (net of tax effects) calculated
for all awards under the fair value method.
Report the stock-based employee compensation cost, that
is included in Schedule HI, item 7(e), net of related tax
effects. This compensation cost includes employee stock
options expense, calculated using the fair value method
applied to all awards in conformity with FASB Statement No. 123(R), Shared-Based Payment. Stock-based
employee compensation plans include all arrangements
by which employees receive shares of stock or other
equity instruments of the employer or the employer
incurs liabilities to employees in amounts based on the
price of the employer’s stock. Examples are stock purchase plans, stock options, restricted stock, and stock
appreciation rights.
For purposes of reporting in this item, all awards refers
to awards granted, modified, or settled in fiscal periods
beginning after December 15, 1994.
FR Y-9C
Schedule HI

March 2007

HI-25

LINE ITEM INSTRUCTIONS FOR

Changes in Equity Capital
Schedule HI-A

General Instructions
Total equity capital includes perpetual preferred stock,
common stock, capital surplus, retained earnings, accumulated other comprehensive income and other equity
capital components such as treasury stock and unearned
Employee Stock Ownership Plan Shares. All amounts in
Schedule HI-A, other than those reported in items 1, 3,
and 12, should represent net aggregate changes for the
calendar year-to-date. Enclose all net decreases and
losses (net reductions of equity capital) in parentheses.
Line Item 1 Equity capital most recently reported
for the end of previous calendar year.
Report the consolidated bank holding company’s total
equity capital balance most recently reported for the
previous calendar year-end after the effect of all corrections and adjustments to total equity capital that were
made in any amended report(s) for the previous calendar
year-end.
Do not enter the consolidated bank holding company’s
total equity capital ending balance from the Report of
Income for the preceding quarter when preparing the
June 30, September 30, or December 31 report.
For bank holding companies opened since January 1 of
the current calendar year, report the word ‘‘none’’ in this
item. Report the consolidated bank holding company’s
opening (original) total equity capital in items 5(a), ‘‘Sale
of perpetual preferred stock, gross’’ or 6(a), ‘‘Sale of
common stock, gross’’ as appropriate.
Pre-opening income earned and expenses incurred from
the bank holding company’s inception until the date the
bank holding company commenced operations should be
reported in Schedule HI using one of the two following
methods, consistent with the manner in which the bank
holding company reports pre-opening income and expenses for other financial reporting purposes:
FR Y-9C
Schedule HI-A

March 2007

(1) The net amount of pre-opening income and expenses
for the entire period from the bank holding company’s inception until the date the bank holding company commenced operations should be reported in
the appropriate items of Schedule HI, each quarter
during the calendar year in which operations commenced; or
(2) Pre-opening income and expenses for the period
from the bank holding company’s inception until the
beginning of the calendar year in which the bank
holding company commenced operations should be
included, along with the bank holding company’s
opening (original) equity capital, in this item. The net
amount of these pre-opening income and expenses
should be identified and described in ‘‘Notes to the
Income Statement.’’ Pre-opening income earned and
expenses incurred during the calendar year in which
the bank holding company commenced operations
should be reported in the appropriate items of Schedule HI, each quarter during the calendar year in
which operations commenced.
Line Item 2 Restatements due to corrections
of material accounting errors and changes in
accounting principles.
Report the sum of all corrections, net of applicable
income taxes, resulting from material accounting errors
which were made in prior years’ Consolidated Financial
Statements for Bank Holding Companies and not corrected by the filing of an amended report for the period in
which the error was made. Include only those corrections
which result from:
(1) Mathematical mistakes.
(2) Mistakes in applying accounting principles.
(3) Improper use of information which existed when the
prior Consolidated Financial Statements for Bank
Holding Companies were prepared.
HI-A-1

Schedule HI-A

(4) A change from an accounting principle that is neither
accepted nor sanctioned by the Federal Reserve to
one that is acceptable to the Federal Reserve.

reported in this item. (Include limited-life preferred stock
in Schedule HC, item 19(a)).

The effect of accounting errors differs from the effect of
changes in accounting estimates. Changes in accounting
estimates are an inherent part of the accrual accounting
process. Report the effect of any changes in accounting
estimates in the appropriate line items of Schedule HI,
Consolidated Income Statement. For further information
on corrections of errors and changes in estimates, refer to
the Glossary entry for ‘‘accounting changes.’’

Line Item 5(a)
gross.

Also report the cumulative effect, net of applicable
income taxes, of those changes in accounting principles
which are properly accounted for by restating prior years’
financial statements.
The cumulative effect of a change in accounting principle
is the difference between (1) the balance in the retained
earnings account at the beginning of the year in which the
change is made and (2) the balance in the retained
earnings account that would have been reported at the
beginning of the year had the newly adopted accounting
principle been applied in all prior periods.
The cumulative effect of all other changes in accounting
principles adopted during the calendar year-to-date must
be reported in Schedule HI, item 12, ‘‘Extraordinary
items, net of applicable taxes and minority interest.’’
Refer to the Glossary entry for ‘‘accounting changes’’ for
information on how to determine the amount of the
cumulative effect of a change in accounting principle.
Line Item 3
as restated.

Balance end of previous calendar year

Report the sum of items 1 and 2.
Line Item 4

Net income (loss).

Report the net income (loss) for the calendar year-to-date
as reported in Schedule HI, item 13, ‘‘Net income (loss).’’
Line Item 5

Sale of perpetual preferred stock.

Report the changes in the consolidated bank holding
company’s total equity capital resulting from the sale of
the bank holding company’s perpetual preferred stock.
Limited-life preferred stock is not included in equity
capital; any proceeds from the sale of limited-life preferred stock during the calendar year-to-date are not to be
HI-A-2

Sale of perpetual preferred stock,

Report in this item the total amount of new perpetual
preferred stock issued, net of any expenses associated
with the issuance of the stock.
Exclude the conversion of convertible debt and limitedlife preferred stock into perpetual preferred stock, as well
as the exercise of stock options (report in item 5(b)).
Line Item 5(b) Conversion or retirement of
perpetual preferred stock.
Report in this item the changes in the consolidated bank
holding company’s total equity capital resulting from:
(1) The conversion of convertible debt or limited-life
preferred stock into perpetual preferred stock.
(2) Exercise of stock options, including:
(a) Any income tax benefits to the consolidated bank
holding company resulting from the sale of the
bank holding company’s own stock acquired
under a qualified stock option within three years
of its purchase by the employee who had been
granted the option.
(b) Any tax benefits to the consolidated bank holding
company resulting from the exercise (or granting) of nonqualified stock options (on the bank
holding company’s stock) based on the difference
between the option price and the fair market
value of the stock at the date of exercise (or
grant).
(3) Retirement of perpetual preferred stock.
(4) The awarding of share-based employee compensation classified as equity. Under FASB Statement No.
123 (Revised 2004), the compensation cost for such
an award must be recognized over the requisite
service period with a corresponding credit to equity.
This reporting treatment applies regardless of whether
the shares awarded to an employee are shares of bank
holding company stock or shares of stock of the bank
holding company’s subsidiary bank.
Schedule HI-A

FR Y-9C
March 2007

Schedule HI-A

Include:
(1) The net decrease in equity capital which occurs when
cash is distributed in lieu of fractional shares in a
stock dividend.
(2) The net increase in equity capital when a stockholder
who receives a fractional share from a stock dividend
purchases the additional fraction necessary to make a
whole share.
Line Item 6

Sale of common stock.

Report the changes in the consolidated bank holding
company’s total equity capital resulting from the sale of
the bank holding company’s common stock.
Line Item 6(a)

Sale of common stock, gross.

Report the total amount of new common stock issued
by the consolidated bank holding company, net of any
expenses associated with the issuance of such stock.
In the event of the formation of a new bank holding
company over an existing bank that has been accounted
for as a reorganization, report the bank holding company
shares issued in this line item. See also the Glossary entry
for ‘‘business combinations—reorganizations’’ for further information
Line Item 6(b) Conversion or retirement of
common stock.
Report in this item the changes in the consolidated bank
holding company’s total equity capital resulting from:
(1) the conversion of convertible debt, limited-life preferred stock, or perpetual preferred stock into common stock.
(2) Exercise of stock options, including:
(a) Any income tax benefits to the consolidated bank
holding company resulting from the sale of the
bank holding company’s own stock acquired
under a qualified stock option within three years
of its purchase by the employee who had been
granted the option.
(b) Any tax benefits to the consolidated bank holding
company resulting from the exercise (or granting) of nonqualified stock options (on the bank
holding company’s stock) based on the difference
FR Y-9C
Schedule HI-A

March 2007

between the option price and the fair market
value of the stock at the date of exercise (or
grant).
(3) Retirement of common stock.
(4) The awarding of share-based employee compensation classified as equity. Under FASB Statement No.
123 (Revised 2004), the compensation cost for such
an award must be recognized over the requisite
service period with a corresponding credit to equity.
This reporting treatment applies regardless of whether
the shares awarded to an employee are shares of bank
holding company stock or shares of stock of the bank
holding company’s subsidiary bank.
Include:
(1) The net decrease in equity capital which occurs when
cash is distributed in lieu of fractional shares in a
stock dividend.
(2) The net increase in equity capital when a stockholder
who receives a fractional share from a stock dividend. Do not include dividends declared during the
previous calendar year but paid in the current period.
Refer to the Glossary entry for ‘‘dividends’’ for further
information on cash dividends.
Line Item 7

Sale of treasury stock.

Report the resale or other disposal of the bank holding
company’s own perpetual preferred stock or common
stock, i.e., treasury stock transactions (see the Glossary
entry for ‘‘treasury stock’’).
Line Item 8

LESS: Purchase of treasury stock.

Report the acquisition (without retirement) of the bank
holding company’s own perpetual preferred stock or
common stock, i.e., treasury stock transactions (see the
Glossary entry for ‘‘treasury stock’’). Report the amount
as an absolute value; do not enclose the amount in
parentheses or use a minus (−) sign.
Line Item 9 Changes incident to business
combinations, net.
If the bank holding company has entered into a business
combination which became effective during the reporting
period and which has been accounted for as a pooling of
interests, report the historical equity capital balances of
the consolidated bank holding company or other business
HI-A-3

Schedule HI-A

acquired as of the end of the previous calendar year. For
further information on poolings of interests, refer to the
Glossary entry for ‘‘business combinations.’’
If the consolidated bank holding company purchased
another bank or business during the reporting period,
report the fair value of any perpetual preferred or common shares issued (less the direct cost of issuing the
shares) less any goodwill charged against undivided
profits. If for any reason goodwill is charged off, a net
reduction of equity capital may result. Exclude the fair
value of limited-life preferred stock issued in connection
with purchase acquisitions. Refer to the Glossary entry
for ‘‘business combinations’’ for further information on
purchase acquisitions.
Include any retroactive adjustments that result from the
realization of income tax benefits of preacquisition operating loss carryforwards of purchased subsidiaries and
other purchased businesses.
Line Item 10 LESS: Cash dividends declared on
preferred stock.
Report all cash dividends declared on preferred stock
(including limited-life preferred stock) during the calendar year-to-date, including dividends not payable until
after the report date. Report the amount as an absolute
value; do not enclose the amount in parentheses or use a
minus (−) sign.
Do not include dividends declared during the previous
calendar year but paid in the current period.
Refer to the Glossary entry for ‘‘dividends’’ for further
information on cash dividends.
Line Item 11 LESS: Cash dividends declared on
common stock.
Report all cash dividends declared on common stock
during the calendar year-to-date, including dividends not
payable until after the report date. Report the amount as
an absolute value; do not enclose the amount in parentheses or use a minus (−) sign.
Do not include dividends declared during the previous
calendar year but paid in the current period.
For further information on cash dividends, see the Glossary entry for ‘‘dividends.’’
HI-A-4

Line Item 12

Other comprehensive income.

Report the bank holding company’s other comprehensive
income for the calendar year-to-date. If the amount to be
reported represents a reduction in the bank holding
company’s equity capital, enclose it in parentheses.
Other comprehensive income includes:
(1) The change during the calendar year-to-date in net
unrealized holding gains (losses) on the bank holding
company’s available-for-sale securities.
(2) The change during the calendar year-to-date in
the bank holding company’s accumulated net gains
(losses) on cash flow hedges.
(3) The increase or decrease during the calendar year-todate in the bank holding company’s cumulative
foreign currency translation adjustments and qualifying foreign currency transaction gains or losses, net
of applicable income taxes, if any. Refer to the
Glossary entry for ‘‘foreign currency transactions
and translation’’ for further information on accounting for foreign currency translation.
(4) The change during the calendar year-to-date in any
minimum pension liability adjustment recognized in
accordance with FASB Statement No. 87, Employers’ Accounting for Pensions.
Line Item 13 Change in the offsetting debit
to the liability for Employee Stock Ownership Plan
(ESOP) debt guaranteed by the bank holding
company.
Report an amount in this item only if the consolidated
bank holding company has guaranteed the debt of its
ESOP. The amount reported in this item should reflect
any changes during the calendar year-to-date to the
offsetting debit to the liability recorded by the bank
holding company in connection with ESOP debt guaranteed by the reporting company (that is, the equity contra
account). The changes in this account result either:
(1) from the booking of an offsetting debit to any new
ESOP debt guaranteed by the consolidated bank holding
company; or (2) from any reduction in the equity contra
account as existing guaranteed ESOP debt is amortized.
As the ESOP’s debt is amortized, the equity contra
account is reduced, thereby increasing the total amount
of equity capital reported as outstanding by the reporting
bank holding company. As the ESOP borrows more
Schedule HI-A

FR Y-9C
March 2007

Schedule HI-A

funds that are guaranteed by the reporting bank holding
company, the offsetting debit increases the equity contra
account, thereby reducing the total amount of equity
capital reported as outstanding.
When the net impact of these changes to the equity contra
account results in an overall decrease to that account, the
amount of that decrease should be reported in this item as
an increase in the total amount of equity capital by
adding that amount when calculating ‘‘changes in equity
capital’’ for this schedule. When the net impact of these
changes to the equity contra account results in an overall
increase to that account, the amount of that increase
should be reported in this item as a decrease in the total
amount of equity capital by placing that amount in
parenthesis and subtracting it when calculating ‘‘changes
in equity capital’’ for this schedule.

FR Y-9C
Schedule HI-A

March 2007

Line Item 14 Other adjustments to equity capital
(not included above).
Report in this item all other adjustments to equity capital
that are not properly reported in items 1 through 13.
Included are contributions of capital made to the holding
company when the company is a partnership.

Line Item 15
period.

Total equity capital end of current

Report the sum of items 3, 4, 5, 6, 7, 9, 12, 13, and 14,
less items 8, 10, and 11. This item must equal Schedule HC, item 28.

HI-A-5

LINE ITEM INSTRUCTIONS FOR

Charge-Offs and Recoveries on Loans and
Leases and Changes in Allowance for
Loan and Lease Losses
Schedule HI-B

Part I. Charge-Offs and Recoveries on
Loans and Leases
General Instructions

other land loan purposes in domestic offices (as defined
for Schedule HC-C, item 1(a), ‘‘Construction, land development, and other land loans’’).

This part has two columns. In column A report loans and
leases charged off during the current calendar year-todate. Also include in column A write-downs to fair value
on loans (and leases) transferred to the held-for-sale
account during the calendar year-to-date that occurred
when (1) the reporting bank holding company decided to
sell loans that were not originated or otherwise acquired
with the intent to sell and (2) the fair value of those loans
had declined for any reason other than a change in the
general market level of interest or foreign exchange rates.
In column B report amounts recovered during the current
calendar year-to-date on loans and leases previously
charged off. For those bank holding companies or consolidated subsidiaries required to establish and maintain
an allocated transfer risk reserve, as specified in Section
905(a) of the International Lending Supervision Act of
1983, in the agency regulations implementing the Act
(Subpart D of Federal Reserve Regulation K) and in any
guidelines, or instructions issued by the Federal Reserve,
columns A and B of part I include loans and leases
charged-off against and amounts recovered, respectively,
through the allocated transfer risk reserve.
These instructions should be read in conjunction with
the Glossary entries for ‘‘allowance for loan and lease
losses’’ and ‘‘domicile.’’

Line Item 1(b)
offices.

Line Item 1 Loans secured by real estate.
Report in the appropriate subitem and column loans
secured by real estate (as defined in Schedule HC-C,
item 1) charged off and recovered.

Report in the appropriate subitem and column closed-end
loans in domestic offices secured by 1–4 family residential properties charged-off and recovered.

Line Item 1(a) Construction, land development,
and other land loans in domestic offices.
Report in columns A and B, as appropriate, loans secured
by real estate for construction, land development, and

Report in columns A and B, as appropriate, closedend loans secured by first liens on 1–4 family residential properties (as defined for Schedule HC-C,
item 1(c)(2)(a), column B) charged-off and recovered.

FR Y-9C
Schedule HI-B

March 2007

Secured by farmland in domestic

Report in columns A and B, as appropriate, loans secured
by farmland in domestic offices (as defined for Schedule HC-C, item 1(b), ‘‘Secured by farmland’’).
Line Item 1(c) Secured by 1–4 family residential
properties in domestic offices.
Report in columns A and B, as appropriate, in the
subitems below, loans secured by 1–4 family residential
properties in domestic offices (as defined for Schedule HC-C, item 1(c), ‘‘Secured by 1–4 family residential
properties’’).
Line Item 1(c)(1) Revolving, open-end loans
secured by 1–4 family residential properties and
extended under lines of credit.
Report in columns A and B, as appropriate, all revolving,
open-end loans in domestic offices secured by 1–4 family
residential properties and extended under lines of credit.
Corresponds to Schedule HC-C, item 1(c)(1).
Line Item 1(c)(2) Closed-end loans secured by
1–4 family residential properties in domestic offices.

Line Item 1(c)(2)(a)

Secured by first liens.

HI-B-1

Schedule HI-B

Line Item 1(c)(2)(b)

Secured by junior liens.

Report in columns A and B, as appropriate, closedend loans secured by junior liens on 1–4 family residential properties (as defined for Schedule HC-C,
item 1(c)(2)(b), column B) charged-off and recovered.
Include loans secured by junior liens in this item even if
the bank holding company also holds a loan secured by a
first lien on the same 1–4 family residential property and
there are no intervening junior liens.
Line Item 1(d) Secured by multifamily (5 or more)
residential properties in domestic offices.
Report in columns A and B, as appropriate, loans secured
by multifamily (5 or more) residential properties in
domestic offices (as defined for Schedule HC-C,
item 1(d), ‘‘Secured by multifamily (5 or more) residential
properties’’).
Line Item 1(e) Secured by nonfarm nonresidential
properties in domestic offices.
Report in columns A and B, as appropriate, loans secured
by nonfarm nonresidential properties in domestic offices
(as defined for Schedule HC-C, item 1(e), ‘‘Secured by
nonfarm nonresidential properties’’).
Line Item 1(f)

In foreign offices.

Report in columns A and B, as appropriate, loans secured
by real estate in foreign offices.

to finance agricultural production and other loans to
farmers’’).
Line Item 4

Commercial and industrial loans.

Line Item 4(a)

To U.S. addressees.

Report in columns A and B, as appropriate, commercial
and industrial loans (as defined for Schedule HC-C,
item 4(a), ‘‘Commercial and industrial loans to U.S.
addressees’’).
Line Item 4(b)

To non-U.S. addressees.

Report in columns A and B, as appropriate, commercial
and industrial loans (as defined for Schedule HC-C,
item 4(b), ‘‘Commercial and industrial loans to non-U.S.
addressees’’).
Line Item 5 Loans to individuals for household,
family, and other personal expenditures.
Report in columns A and B, as appropriate, all extensions
of credit under credit cards and related plans and all other
loans to individuals for household, family, and other
personal expenditures (as defined for Schedule HC-C,
item 6, ‘‘Loans to individuals for household, family, and
other personal expenditures’’).
Report in item 5(a) credit cards, and in item 5(b) related
plans and all other loans to individuals for household,
family, and other personal expenditures.
Line Item 5(a)

Credit cards.

Line Item 2 Loans to depository institutions and
acceptances of other banks.

Corresponds to Schedule HC-C, item 6(a).

Report in columns A and B, in the appropriate subitem,
loans to depository institutions and acceptances of other
banks (as defined for Schedule HC-C, item 2).

Line Item 5(b) Other (includes single payment,
installment, all student loans, and revolving credit
plans other than credit cards).

Line Item 2(a) To U.S. banks and other U.S.
depository institutions.

Corresponds to Schedule HC-C, items 6(b) and 6(c).

Corresponds to Schedule HC-C, item 2(a).
Line Item 2(b)

To foreign banks.

Corresponds to Schedule HC-C, item 2(b).

Line Item 6 Loans to foreign governments and
official institutions.
Report in columns A and B, as appropriate, all loans
to foreign governments and official institutions (as defined
for Schedule HC-C, item 7, ‘‘Loans to foreign governments and official institutions’’).

Line Item 3 Loans to finance agricultural
production and other loans to farmers.

Line Item 7

Report in columns A and B, as appropriate, agricultural
loans (as defined for Schedule HC-C, item 3, ‘‘Loans

Report in columns A and B, as appropriate, other loans as
defined for Schedule HC-C, item 9, ‘‘All other loans.’’

HI-B-2

All other loans.

Schedule HI-B

FR Y-9C
March 2007

Schedule HI-B

Line Item 8

Lease financing receivables.

Line Item M2 Loans secured by real estate to
non-U.S. addressees (domicile).

Line Item M3 Uncollectible retail credit card fees
and finance charges reversed against income (i.e.,
not included in charge-offs against the allowance
for loan and lease losses).
This item is to be completed by (1) bank holding companies that, together with affiliated institutions, have outstanding credit card receivables that exceed $500 million
as of the report date or (2) bank holding companies that
on a consolidated basis are credit card specialty holding
companies.
Outstanding credit card receivables are the sum of:
(a) Schedule HC-C, item 6(a), column A;
(b) Schedule HC-S, item 1, column C; and
(c) Schedule HC-S, item 6(a), column C.
Credit card specialty bank holding companies are defined
as those bank holding companies that on a consolidated
basis exceed 50 percent for the following two criteria:
(a) the sum of credit card loans (Schedule HC-C,
item 6(a), column A) plus securitized and sold
credit card receivables (Schedule HC-S, item 1,
column C) divided by the sum of total loans
(Schedule HC-C, item 12, column A) plus securitized and sold credit card receivables (Schedule
HC-S, item 1, column C); and
(b) the sum of total loans (Schedule HC-C, item 12,
column A) plus securitized and sold credit card
receivables (Schedule HC-S, item 1, column C)
divided by the sum of total assets (Schedule HC,
item 12) plus securitized and sold credit card
receivables (Schedule HC-S, item 1, column C).
Report the amount of fees and finance charges on credit
cards (as defined for Schedule HC-C, item 6(a) that the
bank holding company reversed against either interest
and fee income or a separate contra-asset account during
the calendar year-to-date. Report the amount of fees and
finance charges that have been reversed on a gross basis,
i.e., do not reduce the amount of reversed fees and
finance charges by recoveries of these reversed fees and
finance charges. Exclude from this item credit card fees
and finance charges reported as charge-offs against the
allowance for loan and lease losses in Schedule HI-B,
part 1, item 5(a), column A.

Report in columns A and B, as appropriate, loans secured
by real estate to non-U.S. addressees (as defined for
Schedule HC-C, Memorandum item 3) included in
Schedule HI-B, part I, item 1, above.

Line Item M4 Construction, land development,
and other land loans (in domestic offices).
Report in the appropriate subitem and column construction, land development, and other land loans (as defined

Report in columns A and B, as appropriate, all lease
financing receivables (as defined for Schedule HC-C,
item 10) charged-off and recovered.
Line Item 8(a) Leases to individuals for household,
family, and other personal expenditures.
Report in columns A and B, as appropriate, all leases to
individuals for household, family, and other personal
expenditures (as defined for Schedule HC-C, item 10(a),
column A) charged-off and recovered.
Line Item 8(b)

All other leases.

Report in columns A and B, as appropriate, all other
leases (as defined for Schedule HC-C, item 10(b), column A) charged-off and recovered.
Line Item 9

Total.

Report in columns A and B the sum of items 1 through 8.
The amount reported in column A must equal part II,
item 3, ‘‘Charge-offs,’’ plus part II, item 4, ‘‘write-downs
arising from transfers of loans to a held-for-sale account,’’
below, and the amount reported in column B must equal
part II, item 2, ‘‘Recoveries,’’ below.

Memoranda
Line Item M1 Loans to finance commercial real
estate, construction, and land development activities
(not secured by real estate) included in items 4 and
7 above.
Report in columns A and B, as appropriate, loans to
finance commercial real estate, construction, and land
development activities not secured by real estate (as
defined for Schedule HC-C, Memorandum item 2). Such
loans will have been included in items 4 and 7 of
Schedule HI-B, part I, above. Exclude from this item all
loans secured by real estate included in item 1 of
Schedule HI-B, part I, above.

FR Y-9C
Schedule HI-B

March 2007

HI-B-3

Schedule HI-B

for Schedule HC-C, item 1(a), column B) charged off and
recovered. The sum of Memorandum items 5(a) and 5(b)
must equal Schedule HI-B, part I, item 1(a).
Line Item M4(a) 1-4 family residential
construction loans.
Report in columns A and B, as appropriate, 1-4 family
residential construction loans (as defined for Schedule
HC-C, Memorandum item 7(a)) charged off and recovered.
Line Item M4(b) Other construction loans and all
land development and other land loans.
Report in columns A and B, as appropriate, other construction loans and all land development and other land
loans (as defined for Schedule HC-C, Memorandum item
7(b)) charged off and recovered.
Line Item M5 Loans secured by nonfarm
nonresidential properties (in domestic offices).
Report in the appropriate subitem and column loans
secured by nonfarm nonresidential properties (as defined
for Schedule HC-C, item 1(e), column B) charged off and
recovered. The sum of Memorandum items 5(a) and 5(b)
must equal Schedule HI-B, part I, item 1(e).
Line Item M5(a) Loans secured by
owner-occupied nonfarm nonresidential properties.
Report in columns A and B, as appropriate, loans secured
by owner-occupied nonfarm nonresidential properties (as
defined for Schedule HC-C, Memorandum item 8(a))
charged off and recovered.
Line Item M5(b) Loans secured by other nonfarm
nonresidential properties.
Report in columns A and B, as appropriate, loans secured
by other nonfarm nonresidential properties (as defined
for Schedule HC-C, Memorandum item 8(b)) charged off
and recovered.

Part II.
Losses

Exclude the balances of the allowance for credit losses on
off-balance sheet credit exposures reported in Schedule
HC-G, item 3, and any capital reserves included in
Schedule HC, item 26(a), ‘‘Retained earnings,’’ and the
effect of any transactions therein.
Refer to the Glossary entry for the ‘‘allowance for loan
and lease losses’’ for further information.
If the consolidated bank holding company has entered
into a business combination that became effective during
the reporting period which has been accounted for as a
pooling of interests, include the recoveries, losses, and
provisions of the combined bank holding company or
other business for the calendar year-to-date. Report the
balance as of the end of the previous calendar year of the
allowance for loan and lease losses of the bank or other
business acquired in the pooling in item 6, ‘‘Adjustments.’’
If the consolidated bank holding company purchased
another bank or business during the reporting period,
include the recoveries, losses, and provisions of the
combined bank or other business only after its acquisition. Report the amount of the allowance for loan and
lease losses of the bank or other business acquired as of
the effective date of the business combination in item 6,
‘‘Adjustments.’’ (Refer to the Glossary entry for ‘‘business combinations’’ for further information.)

Allowance for Loan and Lease

General Instructions
Report the reconcilement of the allowance for loan and
lease losses on a calendar year-to-date basis.
HI-B-4

For those bank holding companies required to establish
and maintain an allocated transfer risk reserve as specified in Section 905(a) of the International Lending Supervision Act of 1983, in the agency regulations implementing the Act (Subpart D of Federal Reserve Regulation K)
and in any guidelines, or instructions issued by the
Federal Reserve, the reconcilement should include the
activity in the allocated transfer risk reserve during the
calendar year-to-date that relates to loans and leases. For
reporting during 2003, the balance of any allocated
transfer risk reserve reported in the FR Y-9C for December 31, 2002, that relates to loans and leases should be
included in Schedule HI-B, part II, item 1, ‘‘Balance
most recently reported at end of previous year.’’

Line Item 1 Balance most recently reported at end
of previous calendar year.
Report the balance in the allowance for loan and lease
losses from the Consolidated Financial Statements for
Bank Holding Companies most recently reported at the
Schedule HI-B

FR Y-9C
March 2007

Schedule HI-B

previous calendar year-end after the effect of all corrections and adjustments to the allowance for loan and lease
losses that were made in any amended report(s) for the
previous calendar year-end. For reporting during 2003,
the balance of any allocated transfer risk reserve reported
in the FR Y-9C for December 31, 2002, that relates to
loans and leases should be included in Schedule HI-B,
part II, item 1.

reported must equal Schedule HI, item 4. If an amount is
negative, enclose it in parentheses.

Line Item 2

Report the net cumulative effect of all changes in the
allowance for loan and lease losses of a bank or other
business acquired in a business combination during the
reporting period. Determine those amounts in accordance
with the General Instructions at the beginning of this part.

Recoveries.

Report the amount credited to the allowance for loan and
lease losses for recoveries during the calendar year-todate on amounts previously charged against the allowance for loan and lease losses. The amount reported must
equal part I, item 9, column B.
Line Item 3

LESS: Charge-offs.

Report the amount of all loans and leases charged against
the allowance for loan and lease losses during the
calendar year-to-date. The amount reported in this item
must equal Schedule HI-B, part I, item 9, column A,
‘‘Total’’ charge-offs, less Schedule HI-B, part II, item 4,
‘‘LESS: Write-downs arising from transfers of loans to a
held-for-sale account.’’
Line Item 4 LESS: Write-downs arising from
transfers of loans to a held-for-sale account.
Report the amount of write-downs to fair value charged
against the allowance for loan and lease losses resulting from transfers of loans and leases to a held-for-sale
account during the calendar year-to-date that occurred
when:
(1) the reporting bank holding company decided to sell
loans and leases that were not originated or otherwise
acquired with the intent to sell, and
(2) the fair value of those loans and leases had declined
for any reason other than a change in the general
market level of interest or foreign exchange rates.
Line Item 5

Adjustments.

Report the net cumulative effect of all corrections and
adjustments made to the amount originally reported as
the ending balances of the allowance for loan and lease
losses as of the previous calendar year-end.

For bank holding companies with foreign offices, report
any increases or decreases resulting from the translation
into dollars of any portions of the allowance for loan and
lease losses that are denominated in a foreign currency.
Report all other allowable adjustments made during the
reporting period.
If the amount reported in this item is negative, enclose it
in parentheses.
Line Item 7

Balance at end of current period.

Report the sum of item 1, 2, 5, and 6 less items 3 and 4
(must equal Schedule HC, item 4(c)).

Memoranda
Line Item M1 Allocated transfer risk reserve
included in Schedule HI-B, part II, item 7.
Report the amount of any allocated transfer risk reserve
related to loans and leases that the reporting bank holding
company is required to establish and maintain that the
bank holding company has included in the end-of-period
balance of the allowance for loan and lease losses
reported in Schedule HI-B, part II, item 7, and in
Schedule HC, item 4(c).

Provision for loan and lease losses.

Report the amount expensed as the provision for loan and
lease losses during the calendar year-to-date. The provision for loan and lease losses represents the amount
needed to make the allowance for loan and lease losses
adequate to absorb estimated loan and lease losses based
upon management’s evaluation of the bank holding company’s current loan and lease exposures. The amount
FR Y-9C
Schedule HI-B

Line Item 6

March 2007

Line Item M2 Separate valuation allowance for
uncollectible retail credit card fees and finance
charges.
This item is to be completed by (1) bank holding companies that, together with affiliated institutions, have outstanding credit card receivables that exceed $500 million
as of the report date or (2) bank holding companies that
HI-B-5

Schedule HI-B

on a consolidated basis are credit card specialty holding
companies.
Outstanding credit card receivables are the sum of:
(a) Schedule HC-C, item 6(a), column A;
(b) Schedule HC-S, item 1, column C; and
(c) Schedule HC-S, item 6(a), column C.
Credit card specialty bank holding companies are defined
as those bank holding companies that on a consolidated
basis exceed 50 percent for the following two criteria:
(a) the sum of credit card loans (Schedule HC-C,
item 6(a), column A) plus securitized and sold
credit card receivables (Schedule HC-S, item 1,
column C) divided by the sum of total loans
(Schedule HC-C, item 12, column A) plus securitized and sold credit card receivables (Schedule
HC-S, item 1, column C); and
(b) the sum of total loans (Schedule HC-C, item 12,
column A) plus securitized and sold credit card
receivables (Schedule HC-S, item 1, column C)
divided by the sum of total assets (Schedule HC,
item 12) plus securitized and sold credit card
receivables (Schedule HC-S, item 1, column C).
Report the amount of any valuation allowance or contraasset account that the bank holding company maintains
separate from the allowance for loan and lease losses to
account for uncollectible fees and finance charges on
credit cards (as defined for Schedule HC-C, item 6(a).
This memorandum item is only applicable to those bank
holding companies that maintain an allowance or contraasset account separate from the allowance for loan and
lease losses. Do not include in this item the amount of
any valuation allowance established for impairment in
retained interests in accrued interest receivable related to
securitized credit cards.
Line Item M3 Amount of allowance for loan and
lease losses attributable to retail credit card fees
and finance charges.
This item is to be completed by (1) bank holding companies that, together with affiliated institutions, have outstanding credit card receivables that exceed $500 million
as of the report date or (2) bank holding companies that
on a consolidated basis are credit card specialty holding
companies.
HI-B-6

Outstanding credit card receivables are the sum of:
(a) Schedule HC-C, item 6(a), column A;
(b) Schedule HC-S, item 1, column C; and
(c) Schedule HC-S, item 6(a), column C.
Credit card specialty bank holding companies are defined
as those bank holding companies that on a consolidated
basis exceed 50 percent for the following two criteria:
(a) the sum of credit card loans (Schedule HC-C,
item 6(a), column A) plus securitized and sold
credit card receivables (Schedule HC-S, item 1,
column C) divided by the sum of total loans
(Schedule HC-C, item 12, column A) plus securitized and sold credit card receivables (Schedule
HC-S, item 1, column C); and
(b) the sum of total loans (Schedule HC-C, item 12,
column A) plus securitized and sold credit card
receivables (Schedule HC-S, item 1, column C)
divided by the sum of total assets (Schedule HC,
item 12) plus securitized and sold credit card
receivables (Schedule HC-S, item 1, column C).
Report in this item the amount of the allowance for loan
and lease losses that is attributable to outstanding fees
and finance charges on credit cards (as defined for
Schedule HC-C, item 6(a). This amount is a component
of the amount reported in Schedule HC, item 4(c), and
Schedule HI-B, part II, item 7. Do not include in this item
the amount of any valuation allowance established for
impairment in retained interests in accrued interest
receivable related to securitized credit cards.
Line Item M4 Amount of allowance for
post-acquisition losses on purchased impaired loans
accounted for in accordance with AICPA Statement
of Position 03-3.
This item is to be completed by all bank holding companies.
Report in this item the amount of any valuation allowances established after acquisition for decreases in cash
flows expected to be collected on purchased impaired
loans reported as held for investment in Schedule HC,
item 4(b), and accounted for in accordance with AICPA
Statement of Position 03-3. These post-acquisition allowances should be included in the bank holding company’s
allowance for loan and lease losses as reported in Schedule HC, item 4(c), and Schedule HI-B, part II, item 7.
Schedule HI-B

FR Y-9C
March 2007

Schedule HI-B

Under Statement of Position 03-3, if, upon evaluation
subsequent to acquisition, based on current information
and events, it is probable that the bank holding company
is unable to collect all cash flows expected at acquisition
(plus additional cash flows expected to be collected
arising from changes in estimate after acquisition) on a

FR Y-9C
Schedule HI-B

March 2007

purchased impaired loan held for investment (and not
accounted for as a debt security), the loan should be
considered impaired for purposes of establishing an
allowance pursuant to FASB Statement No. 5 or No. 114,
as appropriate.

HI-B-7

LINE ITEM INSTRUCTIONS FOR

Notes to the Income Statement
Predecessor Financial Items

General Instructions
This one-time reporting schedule is event-driven. An
event for reporting the income statement items below is
defined as a business combination that occurred during
the quarter (that is, the BHC consummated a merger or
acquisition within the quarter). Complete this schedule
only if the combined assets of the acquired entity(ies) are
at least equal to $10 billion or 5 percent of the reporting
bank holding company’s total consolidated assets at the
previous quarter-end, whichever is less.
Report in accordance with these instructions the selected
income statement information for any acquired company(ies), the predecessor, as described above. The information should be reported year to date of acquisition, that
is, from January 1 of the current year to the last day prior
to the acquisition date.
Only a single schedule should be completed with aggregated information for all entities acquired during the
quarter. The combined assets of these firms should at
least equal $10 billion or 5 percent of the respondent’s
total consolidated assets at the previous quarter-end,
whichever is less.

The line item instructions should be read in conjunction
with the instructions for Schedule HI, ‘‘Consolidated
Report of Income.’’
Line Item 1

Total interest income.

Report the total interest income of the acquired company
for the year to date of acquisition.
Include as interest income:
(1) Interest and fee income on loans;
(2) Income from lease financing receivables;
(3) Interest income on balances due from depository
institutions;
(4) Interest and dividend income on securities;
(5) Interest income from trading assets; and
(6) All other interest income.
Line Item 1(a)
leases.

Interest income on loans and

The reporting BHC may report the items below, net of
merger-related adjustments, if any.

Report the amount of interest income on loans and leases.

In the unlikely event that only a portion of a firm was
purchased and actual financial statements for the acquired
operations are not readily available, the reporting BHC
may provide estimates in lieu of inaccessible actual data.

(1) All interest, fees, and similar charges levied against
or associated with all assets reportable as loans as
defined in Schedule HC-C, items 1 through 9; and

If a single transaction business combination occurred
where the acquiree was another BHC that filed the
FR Y-9C in the preceding quarter, and the combination
occurred on the first day of the quarter, that event is
exempt from being reported on this schedule. This
exemption also applies if all entities acquired on the first
day of the quarter were FR Y-9C filers as of the prior
quarter.
FR Y-9C
Notes to the Income Statement—Predecessor Financial Items

March 2007

Include as interest income on loans and leases:

(2) Income from direct financing and leveraging leases
as defined in Schedule HC-C, item 10.
Line Item 1(b)
securities.

Interest income on investment

Report all income on assets that are reportable as securities as defined in Schedule HC-B.
ISnotes-P-1

Notes to the Income Statement—Predecessor Financial Items

Include as interest income on investment securities:
(1) Income from U.S. Treasury securities and U.S. government agency obligations;
(2) Income from mortgage-backed securities; and
(3) Income from all other securities.
Line Item 2

Total interest expense.

Report the total interest expense of the acquired company
for the year to date of acquisition.
Include as interest expense:
(1) Interest on deposits;
(2) Expense on federal funds purchased and securities
sold under agreements to repurchase;
(3) Interest on trading liabilities and other borrowed
money;

sion for allocated transfer risk related to loans and leases.
Enclose negative amounts in parentheses.
Exclude provision for credit losses on off-balance sheet
credit exposures.
The amount reported here may differ from the bad debt
expense deduction taken for federal income tax purposes.
Line Item 5

Total noninterest income.

Report the total noninterest income of the acquired
company for the year to date of acquisition.
Include as noninterest income:
(1) Income from fiduciary activities;
(2) Service charges on deposit accounts in domestic
offices;
(3) Trading revenue;

(4) Interest on subordinated notes and debentures and on
mandatory convertible securities; and

(4) Investment banking, advisory, brokerage and underwriting fees and commissions;

(5) All other interest expense.

(5) Venture capital revenue;

Line Item 2(a)

Interest expense on deposits.

Report all interest expense, including amortization of the
cost of merchandise or property offered in lieu of interest
payments, on deposits as defined in Schedule HC, item
13(a)(2) and 13(b)(2).
Include as interest expense on deposits:
(1) Interest on deposits in domestic offices including
interest on time deposits and all other deposits; and

(6) Net servicing fees;
(7) Net securitization income;
(8) Insurance commissions and fees;
(9) Net gains (losses) on sales of loans and leases;
(10) Net gains (losses) on sales of other real estate
owned;
(11) Net gains (losses) on sales of other assets (excluding securities); and

(2) Interest on deposits in foreign offices, Edge and
Agreement subsidiaries, and IBFs.

(12) Other noninterest income.

Line Item 3

Line Item 5(a)

Net interest income.

Report the difference between item 1, ‘‘Total interest
income’’ and item 2, ‘‘Total interest expense.’’ If the
amount is negative, enclose it in parentheses.
Line Item 4

Provision for loan and lease losses.

Report the amount the acquired company needed to make
the allowance for loan and lease losses, as defined in
Schedule HC, item 4(c), adequate to absorb expected
loan and lease losses, based upon management’s evaluation of the consolidated bank holding company’s loan
and lease portfolio. Also include in this item any proviISnotes-P-2

Income from fiduciary activities.

Report gross income from services rendered by the trust
departments of the acquired company’s banking subsidiaries or by any of the acquired company’s consolidated
subsidiaries acting in any fiduciary capacity. Include
commissions and fees on the sales of annuities by these
entities that were executed in a fiduciary capacity.
Exclude commissions and fees received for the accumulation or disbursement of funds deposited to Individual
Retirement Accounts (IRAs) or Keogh Plan accounts
when they were not handled by the trust departments of
the acquired entity’s subsidiary banks.
Notes to the Income Statement—Predecessor Financial Items

FR Y-9C
March 2007

Notes to the Income Statement—Predecessor Financial Items

Leave this item blank if the subsidiary banks of the
acquired company had no trust departments and the
acquired company had no consolidated subsidiaries that
rendered services in any fiduciary capacity.

Also include the acquired company’s proportionate share
of the income or loss before extraordinary items and
other adjustments from its investment in:

Line Item 5(b)

(2) Associated companies, and

Trading revenue.

Report the net gain or loss from trading cash instruments
and off-balance-sheet derivative contracts (including
commodity contracts) that was recognized during the
year to date of acquisition.
Include as trading revenue:
(1) Revaluation adjustments to the carrying value of
trading assets and liabilities as defined in Schedule
HC, items 5 and 15, resulting from the periodic
marking to market of such assets and liabilities;
(2) Revaluation adjustments from the periodic marking
to market interest rate, foreign exchange, equity
derivative, and commodity and other contracts as
defined in Schedule HC-L, item 12; and
(3) Incidental income and expense related to the purchase and sale of trading assets and liabilities as
defined in Schedule HC, items 5 and 15, and offbalance-sheet derivative contracts as defined in Schedule HC-L, item 12.
If the amount to be reported in this item is a net loss,
enclose it in parentheses.
Line Item 5(c) Investment banking, advisory,
brokerage and underwriting fees and commissions.
Report fees and commissions from underwriting (or
participating in the underwriting of) securities, investment advisory and management services, merger and
acquisition services, and other related consulting fees.
Include fees and commissions from securities brokerage
activities, from the sale and servicing of mutual funds,
from the sale of annuities to the acquired company’s
customers by securities brokerage firms, from the purchase and sale of securities and money market instruments where the acquired company was acting as agent
for other banking institutions or customers and from the
lending of securities owned by the predecessor company
or its customers (if these fees and commissions are not
included in Notes to the Income Statement - Predecessor
Financial Items, item 5(a), ‘‘Income from fiduciary activities,’’ or item 5(b), ‘‘Trading revenue’’).
FR Y-9C
Notes to the Income Statement—Predecessor Financial Items

March 2007

(1) Unconsolidated subsidiaries,

(3) Corporate joint ventures, unincorporated joint ventures, general partnerships, and limited partnerships
over which the acquired company exercised significant influence that were principally engaged in
investment banking, advisory, brokerage or securities
underwriting activities.
Line Item 5(d)

Venture capital revenue.

Report as venture capital revenue market value adjustments, interest, dividends, gains, and losses (including
impairment losses) on venture capital investments (loans
and securities).
Also include the acquired company’s proportionate share
of the income or loss before extraordinary items and
other adjustments from its investment in:
(1) Unconsolidated subsidiaries,
(2) Associated companies, and
(3) Corporate joint ventures, unincorporated joint ventures, general partnerships, and limited partnerships
over which the acquired company exercised significant influence that were principally engaged in venture capital activities.
In general, venture capital activities involve the providing of funds, whether in the form of loans or equity, and
technical and management assistance, when needed and
requested, to start-up or high-risk companies specializing
in new technologies, ideas, products, or processes. The
primary objective of these investments is capital growth.
Line Item 5(e)

Net securitization income.

Report net gains (losses) on assets sold in securitization
transactions, (i.e., net of transaction costs). Include fees
(other than servicing fees) earned from the acquired
company’s securitization transactions and unrealized
losses (and recoveries or unrealized losses) on loans and
leases held for sale in securitization transactions. Exclude
income from servicing securitized assets and seller’s
interests and residual interests retained by the acquired
company.
ISnotes-P-3

Notes to the Income Statement—Predecessor Financial Items

Line Item 5(f)

Insurance commissions and fees.

Line Item 7(a)

Salaries and employee benefits.

Report the amount of premiums earned by bank holding
company subsidiaries engaged in insurance underwriting
and reinsurance activities, and income from insurance
product sales and referrals, as defined in Schedule HI,
items 5(h)(1) and 5(h)(2).

Report salaries and benefits of all officers and employees
of the acquired company and its consolidated subsidiaries
including guards and contracted guards, temporary office
help, dining room and cafeteria employees, and building
department officers and employees (including maintenance personnel).

Line Item 6 Realized gains (losses) on
held-to-maturity and available-for-sale securities.

Include as salaries and employee benefits:

Report the net gain or loss realized during the year to date
of acquisition from the sale, exchange, redemption, or
retirement of all securities as defined in Schedule HC,
items 2(a) and 2(b). The realized gain or loss is the
difference between the sales price (excluding interest at
the coupon rate accrued since the last interest payment
date, if any) and the amortized cost. Also include in this
item the write-downs of the cost basis of individual
held-to-maturity or available-for-sale securities for otherthan-temporary impairments. If the amount to be reported
in this item is a net loss, enclose it in parentheses.
Do not adjust for applicable income taxes (income taxes
applicable to gains (losses) on held-to-maturity or
available-for-sale securities are to be reported in item 9,
‘‘Applicable income taxes (on item 8),’’ below).
Exclude from this item:
(1) Net gains (losses) from the sale of detached securities
coupons and the sale of ex-coupon securities (report
in item 5, ‘‘Total noninterest income,’’ or item 7,
‘‘Total noninterest expense,’’ as appropriate); and
(2) The change in net unrealized holding gains (losses)
on available-for-sale securities during the year to
date of acquisition.
Line Item 7

Total noninterest expense.

Report the total noninterest expense of the acquired
company for the year to date of acquisition.
Include as noninterest expense:
(1) Salaries and employee benefits;
(2) Expenses of premises and fixed assets;
(3) Goodwill impairment losses;
(4) Amortization expense and impairment losses for
other intangible assets; and
(5) Other noninterest expense.
ISnotes-P-4

(1) Gross salaries, wages, overtime, bonuses, incentive
compensation, and extra compensation;
(2) Social security taxes and state and federal unemployment taxes paid by the consolidated acquired company;
(3) Contributions to the consolidated acquired company’s retirement plan, pension fund, profit-sharing
plan, employee stock ownership plan, employee
stock purchase plan, and employee savings plan;
(4) Premiums (net of dividends received) on health and
accident, hospitalization, dental, disability, and life
insurance policies for which the consolidated acquired company was not the beneficiary;
(5) Cost of office temporaries whether hired directly by
the acquired company or its consolidated subsidiaries
or through an outside agency;
(6) Worker’s compensation insurance premiums;
(7) The net cost to the acquired company or its consolidated subsidiaries for employee dining rooms, restaurants, and cafeterias;
(8) Accrued vacation pay earned by employees during
the year to date of acquisition; and
(9) The cost of medical or health services, relocation
programs and reimbursement programs, and other
so-called fringe benefits for officers and employees.
Line Item 7(b)

Goodwill impairment losses.

Report any impairment losses recognized during the year
to date of acquisition on goodwill (as defined for Schedule HC, item 10(a)). See Schedule HI, item 7(c)(1) for
further guidance.
Line Item 8 Income (loss) before income taxes,
extraordinary items, and other adjustments.
Report the consolidated acquired company’s pretax operating income. This amount will generally be determined
Notes to the Income Statement—Predecessor Financial Items

FR Y-9C
March 2007

Notes to the Income Statement—Predecessor Financial Items

by taking item 1, minus the sum of item 2 and item 4,
plus item 5, plus or minus item 6, minus item 7. If the
result is negative, enclose it in parentheses.
Line Item 9

Applicable income taxes.

Report the total estimated federal, state and local, and
foreign income tax expense applicable to item 8, ‘‘Income
(loss) before income taxes, extraordinary items, and other
adjustments,’’ including the tax effects of gains (losses)
on securities not held in trading accounts (i.e., held-tomaturity and available-for-sale securities). Include both
the current and deferred portions of these income taxes. If
the amount is a tax benefit rather than tax expense,
enclose it in parentheses.
Include as applicable income taxes all taxes based on a
net amount of taxable revenues less deductible expenses.
Exclude from applicable income taxes all taxes based on
gross revenues or gross receipts.
Include income tax effects of changes in tax laws or rates.
Also include the effect of changes in the valuation
allowance related to deferred tax assets resulting from a
change in estimate of the realizability of deferred tax
assets, excluding the effect of any valuation allowance
changes related to unrealized holding gains (losses) on
available-for-sale securities that are charged or credited
directly to the separate component of equity capital for
‘‘Accumulated other comprehensive income.’’
Include tax benefits from operating loss carrybacks realized during the reporting period up to acquisition date. If
the consolidated acquired company had realized tax
benefits from operating loss carryforwards during this
period, do not net the dollar amount of these benefits
against the income taxes which would be applicable to
item 8. Report the dollar amount of income taxes applicable to item 8 in this item and report the realized tax
benefits of operating loss carryforwards gross in item 11,
‘‘Extraordinary items, net of applicable income taxes and
minority interest.’’
Also include the dollar amount of any material adjustments or settlements reached with a taxing authority
(whether negotiated or adjudicated) relating to disputed
income taxes of prior years (report in noninterest income
or noninterest expense, as appropriate).
Exclude the estimated federal, state and local, and foreign income taxes applicable to:
FR Y-9C
Notes to the Income Statement—Predecessor Financial Items

March 2007

(1) Item 11, ‘‘Extraordinary items, net of applicable
income taxes and minority interest’’;
(2) Any restatements due to corrections of material
accounting errors and changes in accounting principles; and
(3) Other comprehensive income.
Line Item 10

Minority interest.

Report the minority interest in the net income or loss of
the acquired company’s consolidated subsidiaries.
Line Item 11 Extraordinary items, net of
applicable income taxes and minority interest.
Report the total of the transactions listed below, if any,
net of any applicable income taxes (including federal,
state and local, and foreign taxes). If the amount reported
in this item is a net loss, enclose it in parentheses.
Include as extraordinary items and other adjustments:
(1) The material effects of any extraordinary items.
Extraordinary items are very rare and the criteria
which must be satisfied in order for an event or
transaction to be reported as an extraordinary item
are discussed in the Glossary entry for ‘‘extraordinary items.’’
(2) Material aggregate gains on troubled debt restructurings of the consolidated acquired company’s own
debt, as determined in accordance with the provisions of FASB Statement No. 15.
(3) The cumulative effect of all changes in accounting
principles except those required to be reported in
restatements due to corrections of material accounting errors and changes in accounting principles.
Refer to the Glossary entry for ‘‘accounting changes’’
for further discussion of changes in accounting
principles.
(4) The results of discontinued operations as determined
in accordance with the provisions of FASB Statement
No. 144.
Exclude from extraordinary items and other adjustments:
(1) Net gains or losses on sales or other disposals of:
(a) All assets reportable as loans and leases in Schedule HC-C;
(b) Premises and fixed assets;
ISnotes-P-5

Notes to the Income Statement—Predecessor Financial Items

(c) Other real estate owned;
(d) Personal property acquired for debts previously
contracted (such as automobiles, boats, equipment and appliances);
(e) Coins, art, and other similar assets; and
(f) Branches (i.e., where the consolidated acquired
company sold a branch’s assets to another depository institution which assumes the deposit liabilities of the branch).
Report these items in noninterest income or noninterest
expense, as appropriate, above.
(2) Write-downs of the cost basis of individual held-tomaturity and available-for-sale securities for other
than temporary impairments (report in item 6).
Line Item 12

Net income (loss).

Report the difference between item 8 and the sum of item
9, item 10, and item 11. If the amount is negative, enclose
it in parentheses.
Line Item 13

Cash dividends declared.

Report all cash dividends declared on common and
preferred stock (including limited-life preferred stock)
during the year to date of acquisition, including dividends not payable until after the acquisition date.
Do not include dividends declared during the previous
calendar year but paid in the current period.
For further information on cash dividends, refer to the
Glossary entry for ‘‘dividends.’’
Line Item 14

Net charge-offs.

Report in this item the difference between gross chargeoffs (loans and leases charged by the acquired company
against the allowance) and recoveries (amounts credited
to the allowance for recoveries on loans and leases
previously charged against the allowance) from January
1 to the last business day prior to the date of the BHC’s
merger with the acquired entity. Include in charged off
loans and leases write-downs to fair value on loans and
leases transferred to the held-for-sale account during the
year to date of acquisition that occurred when (1) the
acquired company decided to sell loans that were not
originated or otherwise acquired with the intent to sell

ISnotes-P-6

and (2) the fair value of those loans had declined for any
reason other than a change in the general market level of
interest or foreign exchange rates.
Line Item 15 Net interest income (item 3 above)
on a fully taxable equivalent basis.
Report net interest income (Notes to the Income Statement - Predecessor Financial Items, item 3, ‘‘Net interest
income,’’ above) on a fully taxable equivalent basis. The
amount reported in this item should reflect what net
interest income of the acquired company would have
been if all its interest income were subject to federal and
state income taxes.
The following accounts, on which the interest income is
fully or partially tax-exempt, should be adjusted to a
"taxable equivalent" basis in order that the acquired
company’s interest income can be computed on a fully
taxable equivalent basis:
(1) Interest income on tax-exempt obligations (other
than securities) of states and political subdivisions in
the U.S. (included in Notes to the Income Statement Predecessor Financial Items, item 1(a), ‘‘Interest
income on loans and leases’’);
(2) Income on lease financing receivables that is taxexempt (included in Notes to the Income Statement Predecessor Financial Items, item 1(a), ‘‘Interest
income on loans and leases’’);
(3) Income on tax-exempt securities issued by states and
political subdivisions in the U.S. (included in Notes
to the Income Statement - Predecessor Financial
Items, item 1(b), "Interest income on investment
securities"); and
(4) Any other interest income (such as interest income
earned on loans to an Employee Stock Ownership
Plan), which under state or federal laws is partially or
in its entirety exempt from income taxes.
The changes to the 1986 Tax Reform Act must be taken
into consideration when computing net interest income
on a fully taxable equivalent basis. The 1986 Act, in
general, disallowed 100% of the interest expense allocable to tax-exempt obligations acquired after August 7,
1986. Previous to that date, and after December 31, 1982,
the disallowance percentage was 20%; previous to December 31, 1982, the disallowance was 0%.

Notes to the Income Statement—Predecessor Financial Items

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Notes to the Income Statement
Other

This section has been provided to allow bank holding companies that so wish
to explain the content of specific items in the income statement. The reporting
bank holding company should include any transactions reported on Schedules HI through HI-B that it wishes to explain or that have been separately
disclosed in the bank holding company’s quarterly reports to its shareholders,
in its press releases, or on its quarterly reports to the Securities and Exchange
Commission (SEC).
Exclude, however, any transactions that have been separately disclosed under
the reporting requirements specified in Memoranda items 6 through 8 to
Schedule HI, the Consolidated Income Statement.
Also include any transactions which previously would have appeared as
footnotes to Schedules HI through HI-B.
Report in the space provided the schedule and line item for which the holding
company is specifying additional information, a description of the transaction
and, in the column provided, the dollar amount associated with the transaction
being disclosed.

FR Y-9C
Notes to the Income Statement—Other

March 2007

ISnotes-1

LINE ITEM INSTRUCTIONS FOR

Consolidated Balance Sheet
for Bank Holding Companies
Schedule HC
The line item instructions should be read in conjunction with the Glossary and other
sections of these instructions. See the discussion of the Organization of the Instruction
Book in the General Instructions.
Assets
Line Item 1 Cash and balances due from
depository institutions.
Report in item 1(a) noninterest-bearing balances due
from depository institutions and currency and coin and in
item 1(b) interest-bearing balances due from depository
institutions.
Depository institutions cover the following
(1) Depository institutions in the U.S., i.e.,
(a) U.S. branches and agencies of foreign banks
(refer to the Glossary entry for ‘‘banks, U.S. and
foreign’’ for the definition of this term);
(b) U.S. branches of U.S. banks (refer to the Glossary
entry for ‘‘banks, U.S. and foreign’’);
(c) savings or building and loan associations, homestead associations, and cooperative banks;
(d) mutual and stock savings banks; and
(e) credit unions.
(2) Banks in foreign countries, i.e.,
(a) foreign-domiciled branches of other U.S. banks;
and
(b) foreign-domiciled branches of foreign banks.
See the Glossary entry for ‘‘banks, U.S. and foreign’’
for a description of banks in foreign countries.

(c) nationalized banks and banking institutions owned
by central governments that have, as an important part of their functions, activities similar to
those of a central bank; and
(d) the Bank for International Settlements (BIS).
Balances due from such institutions cover all interestbearing and noninterest-bearing balances whether in the
form of demand, savings, or time balances, including
certificates of deposit, but excluding any balances held
in the consolidated bank holding company’s trading
accounts. Balances with foreign central banks should
include all balances with such entities, including reserve,
operating, and investment balances. Balances should
include ‘‘placements and redeposits’’ between foreign
offices of the banking subsidiaries of the reporting bank
holding company and foreign offices of other banks.
Treatment of reciprocal balances with depository institutions. Reciprocal balances arise when two depository
institutions maintain balances with each other, i.e., each
institution has both a ‘‘due from’’ and a ‘‘due to’’ balance
with the other institution. For purposes of reporting on
this schedule and on Schedule HC-E, Deposit Liabilities,
reciprocal balances should be reported in accordance
with generally accepted accounting principles.
For purposes of these reports, deposit accounts ‘‘due
from’’ other depository institutions that are overdrawn
are to be reported as borrowings in Schedule HC, item 16.
For further information, refer to the Glossary entry for
‘‘overdraft.’’
Exclude from items 1(a) and 1(b) the following

(a) foreign central banks in foreign countries;

(1) All intracompany transactions, i.e., all transactions
between any offices of the consolidated bank holding
company.

(b) departments of foreign central governments that
have, as an important part of their functions,
activities similar to those of a central bank;

(2) Claims on banks or other depository institutions held
in the consolidated bank holding company’s trading
accounts.

(3) Foreign central banks, i.e.,

FR Y-9C
Schedule HC

March 2007

HC-1

Schedule HC

(3) Deposit accounts ‘‘due to’’ other depository institutions that are overdrawn (report in Schedule HC-C,
item 2, ‘‘Loans to depository institutions and acceptances of other banks’’).
(4) Loans to depository institutions (report in Schedule HC-C, item 2).
(5) Unavailable balances due from closed or liquidating
banks or other depository institutions (report in
Schedule HC, item 11, ‘‘Other assets’’).
Line Item 1(a) Noninterest-bearing balances and
currency and coin.
Report the total of all noninterest-bearing balances due
from depository institutions, currency and coin, cash
items in process of collection, and unposted debits.
For purposes of this report, the consolidated bank holding company’s overdrafts on deposit accounts it holds
with other depository institutions that are not consolidated on the reporting bank holding company’s FR Y-9C
(i.e., its ‘‘due from’’ accounts) are to be reported as
borrowings in Schedule HC, item 16, except overdrafts
arising in connection with checks or drafts drawn by
subsidiary depository institutions of the reporting bank
holding company and drawn on, or payable at or through,
another depository institution either on a zero-balance
account or on an account that is not routinely maintained
with sufficient balances to cover checks or drafts drawn
in the normal course of business during the period until
the amount of the checks or drafts is remitted to the other
depository institution (in which case, report the funds
received or held in connection with such checks or
drafts as deposits in Schedule HC-E until the funds are
remitted).
Noninterest-bearing balances include the following
(1) Cash items in process of collection. Cash items in
process of collection include the following:
(a) Checks or drafts in process of collection that are
drawn on another depository institution (or on
a Federal Reserve Bank) and that are payable
immediately upon presentation in the country
where the reporting bank holding company’s
office that is clearing or collecting the check or
draft is located. This includes checks or drafts
drawn on other institutions that have already
been forwarded for collection but for which the
reporting bank has not yet been given credit
HC-2

(‘‘cash letters’’) and checks or drafts on hand that
will be presented for payment or forwarded for
collection on the following business day.
(b) Government checks drawn on the Treasurer of
the United States or any other government agency
that are payable immediately upon presentation
and that are in process of collection.
(c) Such other items in process of collection that are
payable immediately upon presentation and that
are customarily cleared or collected as cash items
by depository institutions in the country where
the reporting bank holding company’s office
which is clearing or collecting the item is located.
(2) Unposted debits, which are cash items in a subsidiary
depository institution’s possession, drawn on itself,
that are immediately chargeable, but that have not
been charged to the general ledger deposit control
account at the close of business on the report date.
(3) Noninterest-bearing balances with depository institutions, i.e., whether in the form of demand, time, or
savings balances, provided that the accounts pay no
interest.
(4) Balances due from Federal Reserve Banks as shown
by the subsidiary depository institutions on its books.
This amount includes reserves and other balances.
(5) Currency and coin. Include both U.S. and foreign
currency and coin owned and held in all offices of the
consolidated bank holding company; currency and
coin in transit to a Federal Reserve Bank or to any
other depository institution for which the reporting
bank holding company’s subsidiaries have not yet
received credit; and currency and coin in transit from
a Federal Reserve Bank or from any other depository
institution for which the accounts of the subsidiaries
of the reporting bank holding company have already
been charged. Foreign currency and coin should be
converted into U.S. dollar equivalents as of the report
date.
Exclude from this item the following
(1) Credit or debit card sales slips in process of collection (report as noncash items in Schedule HC,
item 11, ‘‘Other assets’’). However, when the reporting bank holding company or its consolidated subsidiaries have been notified that they have been given
Schedule HC

FR Y-9C
March 2007

Schedule HC

credit, the amount of such sales slips should be
reported in this item.

foreign offices, Edge or Agreement subsidiaries, or International Banking Facilities.

(2) Cash items not conforming to the definition of in
process of collection, whether or not cleared through
Federal Reserve Banks (report in Schedule HC,
item 11, ‘‘Other assets’’).

Report the total of all interest-bearing balances due from
depository institutions, wherever located, provided that
the reporting bank holding company or its consolidated
subsidiaries book such balances as assets of offices that
are located outside the fifty states of the United States
and the District of Columbia. Also report all interestbearing balances held in International Banking Facilities (IBFs) and in Edge and Agreement corporations of
the reporting bank holding company or its consolidated
subsidiaries.

(3) Commodity or bill-of-lading drafts (including arrival
drafts) not yet payable (because the merchandise
against which the draft was drawn has not yet
arrived), whether or not deposit credit has been
given. (If deposit credit has been given, report as
loans in the appropriate item of Schedule HC-C; if
the drafts were received on a collection basis, they
should be excluded entirely from the consolidated
bank holding company’s balance sheet, Schedule HC,
until the funds have actually been collected.)
Line Item 1(b)

Interest-bearing balances.

Report the total of all interest-bearing balances due from
depository institutions and foreign central banks that are
held in offices of the bank holding company or its
consolidated subsidiaries.
Line Item 1(b)(1)

In U.S. offices.

Report the total of all interest-bearing balances due from
depository institutions and foreign central banks that are
held in offices of the bank holding company or its
consolidated subsidiaries located in the fifty states of the
United States and the District of Columbia. NOTE: This
item should include balances due from unaffiliated U.S.
and foreign banks and central banks wherever those
institutions are located, provided that such balances are
booked as assets in domestic offices of the bank holding
company or of its consolidated subsidiaries.
Exclude balances held in Edge and Agreement subsidiaries or in international banking facilities (IBFs) of the
reporting bank holding company, which are considered
foreign offices of the bank holding company for purposes
of this report. Such balances are to be reported in
item 1(b)(2) below.
Line Item 1(b)(2) In foreign offices, Edge and
Agreement subsidiaries, and IBFs.
This item is to be reported only by bank holding companies that have foreign offices or Edge or Agreement
subsidiaries or whose consolidated subsidiaries have
FR Y-9C
Schedule HC

March 2007

Line Item 2

Securities.

Line Item 2(a)

Held-to-maturity securities.

Report the amount from Schedule HC-B, item 8, column A, ‘‘Total amortized cost.’’
Line Item 2(b)

Available-for-sale securities.

Report the amount from Schedule HC-B, item 8, column D, ‘‘Total fair value.’’
Line Item 3 Federal funds sold and securities
purchased under agreements to resell.
Line Item 3(a)
offices.

Federal funds sold in domestic

Report the outstanding amount of federal funds sold,
i.e., immediately available funds lent (in domestic offices)
under agreements or contracts that have an original
maturity of one business day or roll over under a
continuing contract, excluding such funds lent in the
form of securities purchased under agreements to resell
(which should be reported in Schedule HC, item 3(b))
and overnight lending for commercial and industrial
purposes (which generally should be reported in Schedule HC, item 4(b)). Transactions that are to be reported as
federal funds sold may be secured or unsecured or may
involve an agreement to resell loans or other instruments
that are not securities.
Immediately available funds are funds that the purchasing bank holding company can either use or dispose of on
the same business day that the transaction giving rise to
the receipt or disposal of the funds is executed. A
continuing contract, regardless of the terminology used,
is an agreement that remains in effect for more than one
business day, but has no specified maturity and does not
HC-3

Schedule HC

require advance notice of the lender or the borrower to
terminate.

under agreements to repurchase, except to the extent
permitted under FASB Interpretation No. 41.

Report federal funds sold on a gross basis, i.e., do not net
them against federal funds purchased, except to the
extent permitted under FASB Interpretation No. 39.

Exclude from this item

Also exclude from federal funds sold
(1) Sales of so-called ‘‘term federal funds’’ (as defined in
the Glossary entry for ‘‘federal funds transactions’’)
(report in Schedule HC, item 4(b), ‘‘Loans and
leases, net of unearned income’’).
(2) Securities resale agreements that have an original
maturity of one business day or roll over under a
continuing contract, if the agreement requires the
bank holding company to resell the identical security
purchased or a security that meets the definition of
substantially the same in the case of a dollar roll
(report in Schedule HC, item 3(b), ‘‘Securities purchased under agreements to resell’’).
(3) Deposit balances due from a Federal Home Loan
Bank (report as balances due from depository institutions in Schedule HC, item 1(a) or 1(b), as
appropriate).
(4) Lending transactions in foreign offices involving
immediately available funds with an original maturity of one business day or under a continuing
contract that are not securities resale agreements
(report in Schedule RC, item 4(b), ‘‘Loans and
leases, net of unearned income’’).
For further information, see the Glossary entry for ‘‘federal funds transactions.’’
Line Item 3(b) Securities purchased under
agreements to resell.
Report the outstanding amount of
(1) Securities resale agreements, regardless of maturity,
if the agreement requires the bank holding company
to resell the identical security purchased or a security
that meets the definition of substantially the same in
the case of a dollar roll.
(2) Purchases of participations in pools of securities,
regardless of maturity.
Report securities purchased under agreements to resell on
a gross basis, i.e., do not net them against securities sold
HC-4

(1) Resale agreements involving assets other than securities (report in Schedule HC, item 3(a), ‘‘Federal
funds sold,’’ or item 4(b), ‘‘Loans and leases, net of
unearned income,’’ as appropriate, depending on the
maturity and office location of the transaction).
(2) Due bills representing purchases of securities or
other assets by the reporting bank holding company
that have not yet been delivered and similar instruments, whether collateralized or uncollateralized
(report in Schedule HC, item 4(b)). See the Glossary
entry for ‘‘due bills.’’
(3) So-called yield maintenance dollar repurchase agreements (see the Glossary entry for ‘‘repurchase/resale
agreements’’).
For further information, see the Glossary entry for
‘‘repurchase/resale agreements.’’
Line Item 4

Loans and lease financing receivables.

Report in the appropriate subitem loans and leases held
for sale and loans and leases that the reporting bank
holding company has the intent and ability to hold for the
foreseeable future or until maturity or payoff, i.e., held
for investment.
Line Item 4(a)

Loans and leases held for sale.

Report the amount of loans and leases held for sale at the
lower of cost or fair value. The amount by which cost
exceeds fair value, if any, shall be accounted for as a
valuation allowance. Therefore, no allowance for loan
and lease losses should be established for loans and
leases held for sale. These loans and leases are included
by loan category in Schedule HC-C.
Line Item 4(b)
income.

Loans and leases, net of unearned

Report the amount of loans and leases that the reporting
bank holding company has the intent and ability to hold
for the foreseeable future or until maturity or payoff, i.e.,
held for investment.
This item must equal Schedule HC-C item 12, column A, excluding the amount of loans and leases held for
sale, which should be reported separately in item 4(a)
Schedule HC

FR Y-9C
March 2007

Schedule HC

above. Loans and leases reported in line item 4(b) should
be net of unearned income.

Report the allowance for loan and lease losses as determined in accordance with generally accepted accounting
principles (GAAP) (and described in the Glossary entry
for ‘‘allowance for loan and lease losses’’). Also include
in this item any allocated transfer risk reserve related to
loans and leases held for investment that the reporting
bank holding company is required to establish and maintain as specified in Section 905(a) of the International
Lending Supervision Act of 1983, in the agency regulations implementing the Act (Subpart D of Federal
Reserve Regulation K), and in any guidelines, or instructions issued by the Federal Reserve. This item must equal
Schedule HI-B, part II, item 7.

securities issued by states and political subdivisions in
the U.S., other bonds, notes, and debentures, certificates
of deposit, commercial paper, and bankers acceptances.
Trading assets also include the amount of revaluation
gains (i.e., assets) from the ‘‘marking to market’’ of
interest rate, foreign exchange rate, commodity, equity,
and credit derivative contracts held for trading purposes.
Revaluation gains and losses (i.e., assets and liabilities)
from the ‘‘marking to market’’ of the reporting bank
holding company’s interest rate, foreign exchange rate,
and other commodity and equity derivative contracts
with the same counterparty that meet the criteria for a
valid right of setoff contained in FASB Interpretation
No. 39 (e.g., those contracts subject to a qualifying
master netting agreement) may be reported on a net basis
using this item and Schedule HC, item 15, ‘‘Trading
liabilities,’’ as appropriate. (See the Glossary entry for
‘‘offsetting.’’)

Line Item 4(d) Loans and leases, net of unearned
income and allowance for loan and lease losses.

For those bank holding companies that must complete
Schedule HC-D, this item must equal Schedule HC-D,
item 12, ‘‘Total trading assets.’’

Report the amount derived by subtracting item 4(c) from
item 4(b).

Line Item 6

Line Item 4(c)
losses.

Line Item 5

LESS: Allowance for loan and lease

Trading assets.

Bank holding companies that (a) regularly underwrite
or deal in securities, interest rate contracts, foreign
exchange rate contracts, commodity, equity, and credit
derivative contracts, other financial instruments, and
other assets for resale, (b) acquire or take positions in
such items principally for the purpose of selling in the
near term or otherwise with the intent to resell in order to
profit from short-term price movements, or (c) acquire or
take positions in such items as an accommodation to
customers or for other trading purposes shall report in
this item the value of such assets or positions on the
report date. Assets and other financial instruments held
for trading shall be consistently valued at fair value.
Do not include in this item the carrying value of any
available-for-sale securities or of any loans or leases
that are held for sale. Available-for-sale securities are
reported in Schedule HC, item 2(b) and in Schedule HC-B, columns C and D. Loans and leases held for
sale should be reported in Schedule HC, item 4(a),
‘‘Loans and leases held for sale,’’ and in Schedule HC-C.
Trading assets include but are not limited to U.S. Treasury securities, U.S. Government agency obligations,
FR Y-9C
Schedule HC

March 2007

Premises and fixed assets.

Report the book value, less accumulated depreciation or
amortization, of all premises, equipment, furniture, and
fixtures purchased directly or acquired by means of
a capital lease. The method of depreciation or amortization should conform to generally accepted accounting
principles.
Do not deduct mortgages or other liens on such property
(report in Schedule HC, item 16, ‘‘Other borrowed
money’’).
Include the following as premises and fixed assets
(1) Premises that are actually owned and occupied (or to
be occupied, if under construction) by the bank
holding company, its consolidated subsidiaries, or
their branches.
(2) Leasehold improvements, vaults, and fixed machinery and equipment.
(3) Remodeling costs to existing premises.
(4) Real estate acquired and intended to be used for
future expansion.
(5) Parking lots that are used by customers or employees
of the bank holding company, its consolidated subsidiaries, and their branches.
HC-5

Schedule HC

(6) Furniture, fixtures, and movable equipment of the
bank holding company, its consolidated subsidiaries,
and their branches.
(7) Automobiles, airplanes, and other vehicles owned by
the bank holding company or its consolidated subsidiaries and used in the conduct of its business.
(8) The amount of capital lease property (with the bank
holding company or its consolidated subsidiaries as
lessee)—premises, furniture, fixtures, and equipment. See the discussion of accounting with bank
holding company as lessee in the Glossary entry for
‘‘lease accounting.’’
(9) Stocks and bonds issued by nonmajority-owned corporations whose principal activity is the ownership of
land, buildings, equipment, furniture, or fixtures
occupied or used (or to be occupied or used) by the
bank holding company, its consolidated subsidiaries,
or their branches.
Property formerly but no longer used for banking or
nonbanking activities may be reported in this item as
‘‘Premises and fixed assets’’ or in item 7, ‘‘Other real
estate owned.’’
Exclude from premises and fixed assets
(1) Original paintings, antiques, and similar valuable
objects (report in item 11, ‘‘Other assets’’);
(2) Favorable leasehold rights (report in item 10(b),
‘‘Other intangible assets’’); and
(3) Loans and advances, whether secured or unsecured,
to individuals, partnerships, and nonmajority-owned
corporations for the purpose of purchasing or holding
land, buildings, or fixtures occupied or used (or to be
occupied or used) by the bank holding company, its
consolidated subsidiaries, or their branches (report in
item 4(b) ‘‘Loans and leases, net of unearned
income’’).
Line Item 7 Other real estate owned.
Report the total amount of other real estate owned from
Schedule HC-M, item 13(c). For further information on
other real estate owned, see the instructions to Schedule HC-M, item 13, and the Glossary entry for ‘‘foreclosed assets.’’
Line Item 8 Investments in unconsolidated
subsidiaries and associated companies.
Report the amount of the bank holding company’s investments in the stock of all subsidiaries that have not been
HC-6

consolidated, associated companies, and those corporate
joint ventures over which the reporting bank holding
company exercises significant influence (collectively
referred to as ‘‘investees’’). Special purpose entities
issuing trust preferred securities that a bank holding
company deconsolidates under GAAP generally are considered unconsolidated subsidiaries for regulatory reporting and other regulatory purposes. Include such investments in unconsolidated special purpose entities that
issue trust preferred securities. Also include loans and
advances to investees and holdings of their bonds, notes,
and debentures.
Investments in the common stock of investees shall be
reported using the equity method of accounting in accordance with GAAP. Under the equity method, the carrying
value of the bank holding company’s investment in the
common stock of an investee is originally recorded at
cost but is adjusted periodically to record as income
the bank holding company’s proportionate share of the
investee’s earnings or losses and decreased by the amount
of any cash dividends received from the investee and
amortization of goodwill.
Unconsolidated subsidiaries include all subsidiaries of
the reporting bank holding company that are 50 percent
or less owned (i.e., less than majority-owned) by the
reporting bank holding company or, for some reason
under GAAP, are not consolidated on the reporting bank
holding company’s consolidated financial statements.
Refer to the General Instructions section of this book for
a more detailed discussion of consolidation. See also the
Glossary entry for ‘‘subsidiaries’’ for definitions of subsidiary, associated companies, and joint ventures.
Line Item 9

Not applicable.

Line Item 10 Intangible assets.
Report in the appropriate subitem the amount of intangible assets. Such intangibles may arise from the
following:
(1) business combinations accounted for under the purchase method in accordance with generally accepted
accounting principles, and
(2) acquisitions of portions or segments of another institution’s business, such as branch offices, mortgage
servicing portfolios, and credit card portfolios.
Line Item 10(a)

Goodwill.

Report the carrying amount of goodwill. Goodwill represents the excess of the cost of a company over the sum of
Schedule HC

FR Y-9C
March 2007

Schedule HC

the fair values of the tangible assets and identifiable
intangible assets acquired less the fair value of liabilities
assumed in a business combination accounted for as a
purchase.

pany. This item must equal the sum of Schedule HC-E,
items 1(a) through 1(e) and 2(a) through 2(e).

Goodwill should not be amortized, but must be tested for
impairment as described in the instructions to Schedule
HI, item 7(c)(1), ‘‘Goodwill impairment losses.’’ However, until interpretive guidance concerning the application of the purchase method of accounting for business
combinations between two or more mutual institutions is
issued by the FASB and takes effect, goodwill acquired
in a combination between two or more mutual enterprises
must continue to be amortized over its estimated useful
life, generally not to exceed 25 years, and tested for
impairment in accordance with APB Opinion No. 17.

Report the total of all noninterest-bearing deposits in
domestic offices of depository institutions that are consolidated subsidiaries of the reporting bank holding company included in Schedule HC-E, Deposit Liabilities.

Exclude unidentifiable intangible assets recorded in
accordance with FASB Statement No. 72 (report such
intangible assets in Schedule HC, item 10(b), ‘‘Other
intangible assets.’’)

Line Item 13(b) In foreign offices, Edge and
Agreement subsidiaries, and IBFs.

Line Item 10(b)

Other intangible assets.

Report the total amount of other intangible assets from
Schedule HC-M, line item 12(d). For further information
on other intangible assets, see the instructions to Schedule HC-M, line items 12(a) through 12(c).
Line Item 11

Total assets.

Report the sum of items 1 through 11. This item must
equal item 29, ‘‘Total liabilities, minority interest, and
equity capital.’’

Liabilities
Line Item 13

Deposits.

(For a discussion of noninterest-bearing and interestbearing deposits, see the Glossary entry for ‘‘deposits.’’)
Line Item 13(a)

In domestic offices.

Report the total of all deposits that are booked at
domestic offices of depository institutions that are consolidated subsidiaries of the reporting bank holding comFR Y-9C
Schedule HC

Line Item 13(a)(2)

Noninterest-bearing.

Interest-bearing.

Report the total of all interest-bearing deposits in domestic offices of depository institutions that are consolidated
subsidiaries of the reporting bank holding company
included in Schedule HC-E, Deposit Liabilities.

NOTE: This item is to be reported only by bank holding
companies that have foreign offices or Edge or Agreement subsidiaries or whose consolidated subsidiaries
have foreign offices, Edge or Agreement subsidiaries, or
International Banking Facilities.
Report the total of all deposits booked at foreign offices
of depository institutions that are consolidated subsidiaries of the reporting bank holding company, their Edge
and Agreement subsidiaries, and their IBFs.

Other assets.

Report the total amount of other assets from Schedule HC-F, line item 7. For further information, see the
instructions for Schedule HC-F, line items 1 through 6.
Line Item 12

Line Item 13(a)(1)

March 2007

Line Item 13(b)(1)

Noninterest-bearing.

Report the total of all noninterest-bearing deposits in
foreign offices of depository institutions that are consolidated subsidiaries of the reporting bank holding
company.
Line Item 13(b)(2)

Interest-bearing.

Report the total of all interest-bearing deposits in foreign
offices of depository institutions that are consolidated
subsidiaries of the reporting bank holding company.
Line Item 14 Federal funds purchased and
securities sold under agreements to repurchase.
Line Item 14(a) Federal funds purchased in
domestic offices.
Report the outstanding amount of federal funds purchased, i.e., immediately available funds borrowed (in
domestic offices) under agreements or contracts that have
an original maturity of one business day or roll over
HC-7

Schedule HC

under a continuing contract, excluding such funds borrowed in the form of securities sold under agreements to
repurchase (which should be reported in Schedule HC,
item 14(b)) and Federal Home Loan Bank advances
(which should be reported in Schedule HC, item 16).
Transactions that are to be reported as federal funds
purchased may be secured or unsecured or may involve
an agreement to repurchase loans or other instruments
that are not securities.

Line Item 14(b)
to repurchase.

Immediately available funds are funds that the purchasing institution can either use or dispose of on the same
business day that the transaction giving rise to the receipt
or disposal of the funds is executed. A continuing
contract, regardless of the terminology used, is an agreement that remains in effect for more than one business
day, but has no specified maturity and does not require
advance notice of the lender or the borrower to terminate.

(2) Sales of participations in pools of securities, regardless of maturity.

Securities sold under agreements

Report the outstanding amount of
(1) Securities repurchase agreements, regardless of
maturity, if the agreement requires the bank holding
company to repurchase the identical security sold or
a security that meets the definition of substantially
the same in the case of a dollar roll.

Report securities sold under agreements to repurchase
on a gross basis, i.e., do not net them against securities
purchased under agreements to resell, except to the
extent permitted under FASB Interpretation No. 41.
Exclude from this item

Also exclude from federal funds purchased

(1) Repurchase agreements involving assets other than
securities (report in Schedule HC, item 14(a), ‘‘Federal funds purchased,’’ or item 16, ‘‘Other borrowed
money,’’ as appropriate, depending on the maturity
and office location of the transaction).

(1) Purchases of so-called ‘‘term federal funds’’ (as
defined in the Glossary entry for ‘‘federal funds
transactions’’) (report in Schedule HC, item 16,
‘‘Other borrowed money’’).

(2) Borrowings from a Federal Home Loan Bank or a
Federal Reserve Bank other than in the form of
securities repurchase agreements (report in Schedule HC, item 16).

(2) Securities repurchase agreements that have an original maturity of one business day or roll over under a
continuing contract, if the agreement requires the
bank holding company to repurchase the identical
security sold or a security that meets the definition of
substantially the same in the case of a dollar roll
(report in Schedule HC, item 14(b), ‘‘Securities sold
under agreements to repurchase’’).

(3) Obligations under due bills that resulted when the
bank holding company sold securities or other assets
and received payment, but has not yet delivered the
assets, and similar obligations, whether collateralized
or uncollateralized (report in Schedule HC, item 16).
See the Glossary entry for ‘‘due bills.’’

Report federal funds purchased on a gross basis, i.e., do
not net them against federal funds sold, except to the
extent permitted under FASB Interpretation No. 39.

(3) Borrowings from a Federal Home Loan Bank or a
Federal Reserve Bank (report those in the form of
securities repurchase agreements in Schedule HC,
item 14(b), and all other borrowings in Schedule HC,
item 16).
(4) Borrowing transactions in foreign offices involving
immediately available funds with an original maturity of one business day or under a continuing
contract that are not securities repurchase agreements
(report in Schedule HC, item 16).
For further information, see the Glossary entry for ‘‘federal funds transactions.’’
HC-8

(4) So-called yield maintenance dollar repurchase agreements (see the Glossary entry for ‘‘repurchase/resale
agreements’’).
For further information, see the Glossary entry for
‘‘repurchase/resale agreements.’’
Line Item 15

Trading liabilities.

Report the amount of liabilities from the reporting bank
holding company’s trading activities. Include liabilities
resulting from the sales of assets that the reporting bank
holding company does not own (see Glossary entry for
‘‘short position’’) and revaluation losses from ‘‘marking
to market’’ derivative contracts into which the reporting
bank holding company has entered for trading, dealer,
Schedule HC

FR Y-9C
March 2007

Schedule HC

customer accommodation, and similar purposes. For
bank holding companies that must complete Schedule HC-D, ‘‘Trading Assets and Liabilites,’’ the amount
reported in this item must equal Schedule HC-D, item 15.

Line Item 19(b) Subordinated notes payable to
unconsolidated trusts issuing trust preferred
securities, and trust preferred securities issued by
consolidated special purpose entities.

Line Item 16

Report the amount of subordinated notes payable to
unconsolidated special purpose entities (trusts) that issue
trust preferred securities. If the bank holding company
consolidates special purpose entities that issue trust
preferred securities, report the amount of the trust preferred securities issued by the special purpose entity. For
further information, see the glossary entry for ‘‘Trust
preferred securities issued.’’

Other borrowed money.

Report the total amount of other borrowed money from
Schedule HC-M, line item 14(d). For further information
on other borrowed money, see the instructions to Schedule HC-M, line items 14(a) through 14(c).
Line Item 17

Not applicable.

Line Item 18

Not applicable.

Line item 19(a)
debentures.

Subordinated notes and

Report the amount of subordinated debt of the consolidated bank holding company. Include the amount of
outstanding notes and debentures that are subordinated
to the deposits of the subsidiary depository institutions
(see the Glossary entry for ‘‘subordinated notes and
debentures’’) and any other debt that is designated as
subordinated in its indenture agreement.
Include in this line item the total amount of outstanding
equity contract notes and equity commitment notes that
qualify as capital, as defined by the Federal Reserve
Board’s capital adequacy guidelines, 12 C.F.R., Part 225,
Appendix B.
Also include perpetual debt securities that are subordinated.
For purposes of this item, report the amount of any
outstanding limited-life preferred stock including any
amounts received in excess of its par or stated value. (See
the Glossary entry for ‘‘preferred stock’’ for the definition of limited-life preferred stock.)
For purposes of this report, do not include instruments
generally referred to as trust preferred securities in this
item. Such securities of consolidated special purpose
entities should be reported in line item 19(b), ‘‘Subordinated notes payable to unconsolidated trusts issuing trust
preferred securities, and trust preferred securities issued
by consolidated special purpose entities. ’’
Also do not include reportable notes payable to unconsolidated special purpose entities that issue trust preferred securities. Report such notes payable in line item
19(b).
FR Y-9C
Schedule HC

March 2007

Line Item 20

Other liabilities.

Report the total amount of other liabilities from Schedule HC-G, line item 5. For further information see the
instructions for Schedule HC-G, line items 2 through 4.
Line Item 21

Total liabilities.

Report the sum of items 13 through 20.
Line Item 22 Minority interest in consolidated
subsidiaries and similar items.
Report the portion of the equity capital accounts of all
consolidated subsidiaries of the reporting bank holding
company that must be allocated to minority shareholders
of such subsidiaries. For purposes of this item, do not
report the outstanding amount of instruments generally
referred to as trust preferred securities. Such securities
should be reported in line item 19(b), ‘‘Subordinated
notes payable to unconsolidated trusts issuing trust preferred securities, and trust preferred securities issued by
consolidated special purpose entities.’’ For further information, see the Glossary entry for ‘‘trust preferred securities.’’
Also do not include reportable notes payable to unconsolidated special purpose entities that issue trust preferred securities. Report such notes payable in line item
19(b).

Equity Capital
Line Item 23 Perpetual preferred stock and
related surplus.
Report the amount of perpetual preferred stock issued,
including any amounts received in excess of its par
HC-9

Schedule HC

or stated value. (See the Glossary entry for ‘‘preferred
stock’’ for the definition of perpetual preferred stock.)
Line Item 24

Common stock (par value).

Report the aggregate par or stated value of common stock
issued.
Line Item 25 Surplus (exclude all surplus related
to preferred stock).
Report the net amount formally transferred to the surplus
account, including capital contributions, and any amount
received for common stock in excess of its par or stated
value on or before the report date.
Do not include any portion of the proceeds received from
the sale of limited-life preferred stock in excess of its par
or stated value (report in Schedule HC, item 19(a)) or any
portion of the proceeds received from the sale of perpetual preferred stock in excess of its par or stated value
(report in Schedule HC, item 23).
Line Item 26(a)

Retained earnings.

(3) Retirement account (for limited-life preferred stock
or notes and debentures subordinated to deposits)—
includes amounts allocated under the plan for retirement of limited-life preferred stock or notes and
debentures subordinated to deposits contained in the
bank holding company’s articles of association or in
the agreement under which such stock or notes and
debentures were issued.
(4) Reserve for contingencies includes amounts set aside
for possible unforeseen or indeterminate liabilities
not otherwise reflected on the bank holding company’s books and not covered by insurance. This
reserve may include, for example, reserves set up
to provide for possible losses that bank holding
company may sustain because of lawsuits, the deductible amount under the bank holding company’s blanket bond, defaults on obligations for which the bank
holding company is contingently liable, or other
claims against the bank holding company. A reserve
for contingencies represents a segregation of retained
earnings. It should not include any element of known
losses or of any probable losses the amount of which
can be estimated with reasonable accuracy (see the
Glossary entry for ‘‘loss contingencies’’ for additional information).

Report the amount of retained earnings (including capital reserves) as of the report date. The amount of the
retained earnings should reflect the transfer of net
income, declaration of dividends, transfers to surplus,
and any other appropriate entries.

Exclude the following from retained earnings:

Adjustments of accruals and other accounting estimates
made shortly after the report date that relate to the
income and expenses of the year-to-date period ended as
of the report date must be reported in the appropriate
items of Schedule HI, Income Statement, for that year-todate period.

(2) Any portion of the proceeds received from the sale of
perpetual preferred stock and common stock in
excess of its par or stated value (report surplus
related to perpetual preferred stock in item 23 and
surplus related to common stock in item 25 except
where required by state law or regulation).

Capital reserves are segregations of retained earnings and
are not to be reported as liability accounts or as reductions of asset balances. Capital reserves may be established for such purposes as follows:

(3) Any portion of the proceeds received from the sale of
limited-life preferred stock in excess of its par or
stated value (report in Schedule HC, item 19(a)).

(1) Reserve for undeclared stock dividends—includes
amounts set aside to provide for stock dividends (not
cash dividends) not yet declared.
(2) Reserve for undeclared cash dividends—includes
amounts set aside for cash dividends on common and
preferred stock not yet declared. (Cash dividends
declared but not yet payable should be included in
item 20, ‘‘Other liabilities,’’ of this schedule.)
HC-10

(1) The amount of the cumulative foreign currency translation adjustment (report in item 26(b)).

(4) ‘‘Reserves’’ that reduce the related asset balances
such as valuation allowances (e.g., allowance for
loan and lease losses), reserves for depreciation, and
reserves for bond premiums.
Line Item 26(b)
income.

Accumulated other comprehensive

Report in this item the amount of other comprehensive
income in conformity with the requirements of FASB
Schedule HC

FR Y-9C
March 2007

Schedule HC

Statement No. 130, Reporting Comprehensive Income.
Accumulated other comprehensive income includes net
unrealized holding gains (losses) on available-for-sale
securities, accumulated net gains (losses) on cash flow
hedges, foreign currency translation adjustments, and
minimum pension liability adjustments. Net unrealized
holding gains (losses) on available-for-sale securities is
the difference between the amortized cost and fair value
of the reporting bank holding company and its consolidated subsidiaries’ available-for-sale securities, net of tax
effects, as of the report date. For most bank holding
companies, all ‘‘securities,’’ as the term is defined in
FASB Statement No. 115, that are designated as
‘‘available-for-sale’’ will be reported as ‘‘available-forsale securities’’ in Schedule HC, item 2(b), and in
Schedule HC-B, columns C and D. However, a bank
holding company may have certain assets that fall within
the definition of ‘‘securities’’ in FASB Statement No. 115
(e.g., commercial paper, nonrated industrial development
obligations) that the bank holding company has designated as ‘‘available-for-sale’’ which are reported for
purposes of the FR Y-9C in a balance sheet category
other than ‘‘securities’’ (e.g., ‘‘loans and lease financing
receivables’’). These ‘‘available-for-sale’’ assets must be
carried on the FR Y-9C balance sheet at fair value rather
than amortized cost and the difference between these two
amounts, net of tax effects, must be included in this item.
Also include in this item the unamortized amount of the
unrealized holding gain or loss at the date of transfer of
any debt security transferred into the held-to-maturity
category from the available-for-sale category. When a
debt security is transferred from available-for-sale to
held-to-maturity, the unrealized holding gain or loss at
the date of transfer continues to be reported in this equity
capital account, but must be amortized over the remaining life of the security as an adjustment of yield in a
manner consistent with the amortization of any premium
or discount.
Accumulated net gains (losses) on cash flow hedges 1 is
1. Generally, the objective of a cash flow hedge is to link a derivative to
an existing recognized asset or liability or a forecasted transaction with
exposure to variability in expected future cash flows, e.g., the future
interest payments (receipts) on a variable-rate liability (asset) or a forecasted purchase (sale). The changes in cash flows of the derivative are
expected to offset changes in cash flows of the hedged item or transaction.
To achieve the matching of cash flows, FASB Statement No. 133 requires
that changes in fair value of properly designated and qualifying derivatives
initially be reported in a separate component of equity (accumulated other
FR Y-9C
Schedule HC

March 2007

the effective portion 2 of the accumulated change in fair
value (gain or loss) on derivatives designated and qualifying as cash flow hedges in accordance with FASB
Statement No. 133, Accounting for Derivative Instruments and Hedging Activities.
Under Statement No. 133, a bank holding company that
elects to apply hedge accounting must exclude from net
income the effective portion of the change in fair value of
a derivative designated as a cash flow hedge and record it
on the balance sheet in a separate component of equity
capital (referred to as ‘‘accumulated other comprehensive
income’’ in the accounting standard). The ineffective
portion of the cash flow hedge must be reported in
earnings. The equity capital component (i.e., the accumulated other comprehensive income) associated with a
hedged transaction should be adjusted each reporting
period to a balance that reflects the lesser (in absolute
amounts) of:
(1) the cumulative gain or loss on the derivative from
inception of the hedge, less (a) amounts excluded
consistent with the bank holding company’s defined
risk management strategy, and (b) the derivative’s
gains or losses previously reclassified from accumulated other comprehensive income into earnings to
offset the hedged transaction, or
(2) The portion of the cumulative gain or loss on the
derivative necessary to offset the cumulative change
in expected future cash flows on the hedged transaction from inception of the hedge less the derivative’s
gains or losses previously reclassified from accumulated other comprehensive income into earnings.
Accordingly, the amount reported in this item should
reflect the sum of the adjusted balance (as described
above) of the cumulative gain or loss for each derivative
designated and qualifying as a cash flow hedge. These
amounts will be reclassified into earnings in the same
period or periods during which the hedged transactions
affects earnings (for example, when a hedged variablerate interest receipt on a loan is accrued or when a
forecasted sale occurs).
comprehensive income) and reclassified into earnings in the same period
that the hedged transaction affects earnings.
2. The effective portion of a cash flow hedge can be described as a
change in fair value of the derivative that offsets the change in expected
future cash flows being hedged. Refer to FASB Statement No. 133,
Appendix A, Section 2, for further information.

HC-11

Schedule HC

Include in this item the sum of the bank holding company’s foreign currency translation adjustments accumulated in accordance with FASB No. 52. A net debit
balance should be reported as a reduction of the total
amount reported in this item (See the Glossary entry for
‘‘foreign currency transactions and translation’’ for further information.) For additional information, refer to
FASB Statement No. 130, Reporting Comprehensive
Income.
Report any minimum pension liability adjustment recognized in accordance with FASB Statement No. 87,
Employers’ Accounting for Pensions. Under Statement
No. 87, an employer must report in a separate component
of equity capital, net of any applicable tax benefits, the
excess of additional pension liability over unrecognized
prior service cost.
Line Item 27

Other equity capital components.

Report in this item all other equity capital components
including the total carrying value (at cost) of treasury
stock and unearned Employee Stock Ownership Plan
(ESOP) shares as of the report date. (See the Glossary
entry for ‘‘treasury stock’’ for further information.)
NOTE: When the reporting bank holding company has
included in item 16 above the ESOP’s long-term debt
that it has explicitly or implicitly guaranteed, include in
this item the dollar amount of the offsetting debit to the
liability recorded by the reporting bank holding company
in connection with that debt. The amount of unearned
ESOP shares should be reduced as the debt is amortized.
Report a total net debit balance for this line item in
parentheses.
Line Item 28 Total equity capital.
Report the sum of items 23 through 27. This item must
equal Report of Income Schedule HI-A, item 15, ‘‘Total
equity capital end of current period.’’
Line Item 29 Total liabilities, minority interest and
equity capital.
Report the sum of items 21, 22 and 28. This item must
equal item 12, ‘‘Total assets.’’

HC-12

Memoranda
Line Item M1 Has the bank holding company
engaged in a full-scope independent external audit
at any time during the calendar year?
Enter a ‘‘1’’ for yes if the bank holding company has
engaged in a full-scope independent external audit (in
which an opinion is rendered on their financial statements) at any time during the calendar year as of the
December 31 report date. Also enter a ‘‘1’’ for yes if the
bank holding company has engaged or begun a full-scope
independent external audit by December 31 that has not
yet concluded. Enter a ‘‘0’’ if the response to this
question is no. If the response to this question is yes, the
bank holding company must complete all of Memoranda
item 2 below. If the response to this question is no, skip
Memoranda item 2.

Line Item M2 If the response to Memoranda item
1 is yes, indicate below the name and address of the
bank holding company’s independent external
auditing firm, and the name and e-mail address of
the auditing firm’s engagement partner.
Report in memoranda item 2(a) the name and address
(city, U.S. Postal Service abbreviation for state, zip code)
of the bank holding company’s independent external
auditing firm. An independent auditing firm is a company
that provides full-scope auditing services to the bank
holding company in which an opinion is rendered on
their financial statements. Bank holding companies that
do not have a full-scope audit conducted of their financial
statements do not need to complete this item.
Report in memoranda item 2(b) the name and e-mail
address of the independent external auditing firm’s
engagement partner (partner in charge of the audit). This
contact information is for the confidential use of the
Federal Reserve and will not be released to the public.

Schedule HC

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Securities
Schedule HC-B

General Instructions
This schedule has four columns for information on
securities, two columns for held-to-maturity securities
and two columns for available-for-sale securities. Report
the amortized cost and the current fair (market) value of
held-to-maturity securities in columns A and B, respectively. Report the amortized cost and the current fair
(market) value of available-for-sale debt securities in
columns C and D, respectively. Information on equity
securities is reported in the columns for available-for-sale
securities only (columns C and D). For equity securities
with readily determinable fair values, historical cost (not
amortized cost) is reported in column C and fair value is
reported in column D. See the Glossary entry for ‘‘market
value of securities‘‘ for a discussion of acceptable valuation methods. Equity securities that do not have readily
determinable fair value should be reported in in Schedule HC-F, ‘‘Other Assets.’’
Amortized cost must include amortization of premium
and accretion of discount on securities purchased at other
than par or face value (including U.S. Treasury bills). The
preferred method for reporting purchases and sales of
securities is as of trade date. However, settlement date
accounting is acceptable if the reported amounts would
not be materially different. (See the Glossary entry for
‘‘trade date and settlement date accounting.’’)
For purposes of this schedule, the following events and
transactions shall be treated in the following manner:
(1) Purchases of securities under agreements to resell
and sales of securities under agreements to
repurchase—These transactions are not to be treated
as purchases or sales of securities but as lending
or borrowing (i.e., financing) transactions collateralized by these securities if the agreements meet the
criteria for a borrowing as set forth in FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of
FR Y-9C
Schedule HC-B

March 2007

Liabilities. For further information, see the Glossary entry for ‘‘transfers of financial assets’’ and
‘‘repurchase/resale agreements.’’
(2) Purchases and sales of participations in pools of
securities—Similarly, these transactions are not to be
treated as purchases or sales of the securities in the
pool but as lending or borrowing (i.e., financing)
transactions collateralized by the pooled securities if
the participation agreements meet the criteria for a
borrowing set forth in FASB Statement No. 140,
Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. For
further information, see the Glossary entry for ‘‘transfers of financial assets’’ and ‘‘repurchase/resale agreements.’’
(3) Pledged securities—Pledge securities that have not
been transferred to the secured party should continue
to be included in the pledging bank holding company’s holdings of securities that are reported in Schedule HC-B. If the reporting bank holding company has
transferred pledged securities to the secured party,
the reporting bank holding company should account
for the pledged securities in accordance with FASB
Statement No. 140.
(4) Securities borrowed and lent—Securities borrowed
and lent shall be reported on the balance sheet
of either the borrowing or lending bank holding
company or its consolidated subsidiaries in accordance with Statement No. 140, Accounting for
Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities. For further information, see the Glossary entries for ‘‘transfers of
financial assets’’ and ‘‘securities borrowing/lending
transactions.’’
(5) Short sales of securities—Such transactions are to be
reported as described in the Glossary entry for ‘‘short
position.’’
HC-B-1

Schedule HC-B

(6) Futures, forward, and standby contracts—Such open
contracts to buy or sell in the future are to be reported
as derivatives in Schedule HC-L, item 11).

(4) Participations in pools of Federal Housing Administration (FHA) Title I loans, which generally consist
of junior lien home improvement loans.

Line Item 1

Line Item 2(a)
agencies.

U.S. Treasury securities.

Report in the appropriate columns the amortized cost and
fair value of all U.S. Treasury securities not held in
trading accounts. Include all bills, certificates of indebtedness, notes, and bonds, including those issued under
the Separate Trading of Registered Interest and Principal of Securities (STRIPS) program and those that are
‘‘inflation indexed.’’
Exclude all obligations of U.S. government agencies and
corporations. Also exclude detached Treasury security
coupons and ex-coupon Treasury securities held as the
result of either their purchase or the bank’s stripping of
such securities and Treasury receipts such as CATs,
TIGRs, COUGARs, LIONs, and ETRs (report in item 6).
(Refer to the Glossary entry for ‘‘coupon stripping’’ for
additional information.)
Line Item 2 U.S. government agency obligations
(exclude mortgage-backed securities).
Report in the appropriate columns of the appropriate
subitem the amortized cost and fair value of all U.S.
government agency and obligations (excluding mortgagebacked securities) not held in trading accounts.
For purposes of this line item, exclude from U.S. government agency obligations:
(1) Loans to the Export Import Bank and to federallysponsored lending agencies (report in ‘‘All other
loans,’’ Schedule HC-C, item 9). Refer to the Glossary entry for federally-sponsored lending agency for
the definition of this term.
(2) All holdings of U.S. government-issued or -guaranteed
mortgage pass-through securities (report in item 4(a)
below).
(3) Collateralized mortgage obligations (CMOs), real
estate mortgage investments conduits (REMICs),
CMO and REMIC residuals, and stripped mortgagebacked securities (such as interest-only strips (IOs),
principal-only strips (POs) and similar instruments)
issued by U.S. government agencies and corporations
(report in item 4(b) below).
HC-B-2

Issued by U.S. government

Report in the appropriate columns the amortized cost and
fair value of all obligations not held in trading accounts
that have been issued by U.S. government agencies. For
purposes of this item, a U.S. government agency is
defined as an instrumentality of the U.S. government
whose debt obligations are fully and explicitly guaranteed as to the timely payment of principal and interest by
the full faith and credit of the U.S. government.
Include, among others, debt securities (but not mortgagebacked securities) of the following U.S. government
agencies:
(1) Export–Import Bank (Ex-Im Bank)
(2) Federal Housing Administration (FHA)
(3) Government National Mortgage Association
(GNMA)
(4) Maritime Administration
(5) Small Business Administration (SBA)
Include such obligations as:
(1) Small Business Administration (SBA) ‘‘Guaranteed
Loan Pool Certificates,’’ which represent an undivided interest in a pool of SBA-guaranteed portion of
loans for which the SBA has further guaranteed the
timely payment of scheduled principal and interest
payments.
(2) Participation certificates issued by the Export–Import
Bank and the General Services Administration.
(3) Notes issued by the Farmers Home Administration
(FmHA) and instruments (certificates of beneficial
ownership and insured note insurance contracts) representing an interest in FmHA-insured notes.
Line Item 2(b) Issued by U.S. governmentsponsored agencies.
Report in the appropriate column the amortized cost
and fair value of all obligations not held in trading
accounts that have been issued by U.S. governmentsponsored agencies. For purposes of the FR Y-9C, U.S.
Schedule HC-B

FR Y-9C
March 2007

Schedule HC-B

government-sponsored agencies are defined as agencies
originally established or chartered by the U.S. government to serve public purposes specified by the U.S.
Congress but whose debt obligations are not explicitly
guaranteed by the full faith and credit of the U.S.
government.
Include, among others, debt securities (but not mortgagebacked securities) of the following governmentsponsored agencies:
(1) Federal Agricultural Mortgage Corporation
(Farmer Mac)
(2) Federal Farm Credit Banks
(3) Federal Home Loan Banks (FHLBs)
(4) Federal Home Loan Mortgage Corporation
(FHLMC or Freddie Mac)
(5) Federal Land Banks (FLBs)
(6) Federal National Mortgage Association (FNMA or
Fannie Mae)
(7) Financing Corporation (FICO)
(8) Resolution Funding Corporation (REFCORP)
(9) Student Loan Marketing Association (SLMA or
Sallie Mae)
(10) Tennessee Valley Authority (TVA)
(11) U.S. Postal Service
Exclude debt securities issued by SLM Corporation, the
private-sector corporation that is the successor to the
Student Loan Marketing Association (report in Schedule
HC-B, item 6(a), ‘‘Other domestic debt securities,’’
below), and securitized student loans issued by SLM
Corporation (or its affiliates) (report in Schedule HC-B,
item 5, ‘‘Asset-backed securities,’’ below).
Line Item 3 Securities issued by states and
political subdivisions in the U.S.
Report amortized cost and fair value of all securities
issued by states and political subdivisions in the United
States not held in trading accounts.
States and political subdivisions in the U.S., for purposes
of this report, include:
(1) the fifty states of the United States and the District of
Columbia and their counties, municipalities, school
FR Y-9C
Schedule HC-B

March 2007

districts, irrigation districts, and drainage and sewer
districts; and
(2) the governments of Puerto Rico and of the U.S.
territories and possessions and their political
subdivisions.
Securities issued by states and political subdivisions
include:
(1) General obligations, which are securities whose principal and interest will be paid from the general tax
receipts of the state or political subdivision.
(2) Revenue obligations, are securities whose debt service is paid solely from the revenues of the projects
financed by the securities rather than from general
tax funds.
(3) Industrial development and similar obligations.
Treatment of industrial development bonds (IDBs).
IDBs, sometimes referred to as ‘‘industrial revenue
bonds,’’ are typically issued by local industrial development authorities to benefit private commercial and industrial development. For purposes of this report, all IDBs
should reported as securities in this item or as loans in
Schedule HC-C, (item 9) consistent with the asset category in which the bank holding company reports its IDBs
on its balance sheet for other financial reporting purposes. Regardless of whether they are reported as securities in Schedule HC-B or as loans in Schedule HC-C, all IDBs that meet the definition of a ‘‘security’’ in FASB Statement No. 115 must be measured in
accordance with Statement No. 115.
Treatment of other obligations of state and political
subdivisions in the U.S. In addition to those IDBs that are
reported as securities in accordance with the preceding
paragraph, also include in this item as securities issued by
states and political subdivisions in the U.S., all obligations other than IDBs that meet any of the following
criteria:
(1) Nonrated obligations of states and political subdivisions in the U.S., other than those specifically excluded
below, that the bank holding company considers
securities for other financial reporting purposes.
(2) Notes, bonds, and debentures (including tax warrants
and tax-anticipation notes) that are rated by a
nationally-recognized rating service.
HC-B-3

Schedule HC-B

(3) Obligations of state and local governments that
are guaranteed by the U.S. government (excluding
mortgage-backed securities).
Exclude from item 3:
(1) All overdrafts of states and political subdivisions in
the U.S. (report as loans in Schedule HC, item 4(b),
and Schedule HC-C, item 9).
(2) All lease financing receivables of states and political
subdivisions in the U.S. (report as leases in Schedule HC, item 4(b), and Schedule HC-C, item 10).
(3) All IDBs that are to be reported as loans in accordance with the reporting treatment described above
(report as loans in Schedule HC, item 4(b), and
Schedule HC-C; item 9).
(4) All other nonrated obligations of states and political
subdivisions in the U.S. that the bank holding company considers loans for other financial reporting
purposes (report as loans in Schedule HC, item 4(b),
and Schedule HC-C, item 9).
(5) All mortgage pass-through securities issued by state
and local housing authorities in the U.S. (report in
Schedule HC-B, item 4(a) below).
(6) Collateralized mortgage obligations (CMOs), real
estate mortgage investments conduits (REMICs),
CMO and REMIC residuals, and stripped mortgagebacked securities (such as interest-only strips (IOs),
principal-only strips (POs), and similar instruments)
issued by state and local housing authorities in the
U.S. (report in Schedule HC-B, item 4(b) below).
(7) All obligations of states and political subdivisions in
the U.S. held by the reporting bank holding company
or its consolidated subsidiaries in trading accounts
(report in Schedule HC, item 5).
Line Item 4

Mortgage-backed securities.

Report in the appropriate columns of the appropriate
subitems the amortized cost and fair value of all mortgage pass-through securities, collateralized mortgage
obligations (CMOs), real estate mortgage investment
conduits (REMICs), CMO and REMIC residuals, and
stripped mortgage-backed securities (such as interestonly strips (IOs), principal-only strips (POs), and similar
instruments).
Exclude from mortgage-backed-securities:
HC-B-4

(1) Securities backed by loans extended under home
equity lines (i.e., revolving open-end lines of credit
secured by 1–4 family residential properties (report
as asset-backed securities in item 5(b) below).
(2) Bonds issued by the Federal National Mortgage
Association (FNMA) and the Federal Home Loan
Mortgage Corporation (FHLMC) that are collateralized by mortgages i.e., mortgage-backed bonds.
(report in Schedule HC-B, item 2, ‘‘U.S. government
agency obligations’’) and mortgage-backed bonds
issued by non-U.S. government issuers (report in
Schedule HC-B, item 6(a), ‘‘Other domestic debt
securities.’’
(3) Participation certificates issued by the Export–Import
Bank and the General Services Administration (report
in Schedule HC-B, item 2, ‘‘U.S. government agency
obligations’’).
(4) Participation certificates issued by a Federal Intermediate Credit Bank (report in Schedule HC-F, item 4,
‘‘Equity securities that do not have readily determinable fair values’’).
(5) Notes insured by the Farmers Home Administration
(FmHA) and instruments (certificates of beneficial
ownership and insured note insurance contracts) representing an interest in FmHA-insured notes (report
in Schedule HC-B, item 2, ‘‘U.S. government agency
obligations’’).
Line Item 4(a)

Pass-through securities.

Report in the appropriate columns of the appropriate
subitem the amortized cost and fair value of all holdings
of mortgage pass-through securities. In general, a mortgage pass-through security represents an undivided interest in a pool that provides the holder with a pro rata share
of all principal and interest payments on the residential
mortgages in the pool of residential mortgages, and
includes certificates of participation in pools of residential mortgages.
Include certificates of participation in pools of residential
mortgages even though the reporting bank holding company was the original holder of the mortgages underlying
the pool and holds the instruments covering that pool, as
may be the case with GNMA certificates issued by the
bank and swaps with FNMA and FHLMC. Also include
U.S. government- issued participation certificates (PCs)
that represent a pro rata share of all principal and interest
Schedule HC-B

FR Y-9C
March 2007

Schedule HC-B

payments on a pool of resecuritized participation certificates that, in turn, are backed by residential mortgages,
e.g., FHLMC Giant PCs.
Exclude all collateralized mortgage obligations (CMOs),
real estate mortgage investment conduits (REMICs),
CMO and REMIC residuals, and stripped mortgagebacked securities (such as interest-only strips (IOs),
principal-only strips (POs), and similar instruments)
(report in Schedule HC-B, item 4(b) below).
Line Item 4(a)(1)

Guaranteed by GNMA.

Report in the appropriate columns the amortized cost and
fair value of all holdings of mortgage pass-through
securities guaranteed by the Government National Mortgage Association (GNMA) that are not held in trading
accounts. Exclude mortgage pass-through securities issued
by FNMA and FHLMC (report in Schedule HC-B,
item 4(a)(2) below).
Line Item 4(a)(2)

Issued by FNMA and FHLMC.

Report in the appropriate columns the amortized cost and
fair value of all holdings of mortgage pass-through
securities issued by the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage
Corporation (FHLMC) that are not held in trading
accounts. Exclude mortgage pass-through securities that
are guaranteed by the Government National Mortgage
Association (GNMA) (report in Schedule HC-B,
item 4(a)(1) above).
Line Item 4(a)(3)

Other pass-through securities.

Report in the appropriate columns the amortized cost and
fair value of all holdings of mortgage pass-through
securities issued by others (e.g., other depository institutions or insurance companies, state and local housing
authorities) that are not guaranteed by the U.S. government and are not held in trading accounts.
If the reporting bank holding company has issued private
certificates of participation in a pool of its own residential
mortgages in a transaction that is not reported as a
financing in accordance with the Glossary entry for
‘‘participations in pools of residential mortgages,’’ any
unsold private certificates of participation are to be
reported in this item.
FR Y-9C
Schedule HC-B

March 2007

Line Item 4(b)

Other mortgage-backed securities.

Report in the appropriate columns of the appropriate
subitems the amortized cost and fair value of all mortgagebacked securities other than pass-through securities that
are not held in trading accounts.
Other mortgage-backed securities include:
(1) All classes of collateralized mortgage obligations
(CMOs) and real estate mortgage investments conduits (REMICs).
(2) CMO and REMIC residuals and similar interests.
(3) Stripped mortgage-backed securities (such as interestonly strips (IOs), and principal-only strips (POs), and
similar instruments).
Line Item 4(b)(1) Issued or guaranteed by FNMA,
FHLMC or GNMA.
Report in the appropriate columns the amortized cost and
fair value of all classes of CMOs and REMICs, CMO and
REMIC residuals, and stripped mortgage-backed securities issued by the Federal National Mortgage Association
(FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC) or guaranteed by the Government National
Mortgage Association (GNMA). For purposes of this
item, also include REMICs issued by the U.S. Department of Veterans Affairs (VA).
Line Item 4(b)(2) Collateralized by MBS issued or
guaranteed by FNMA, FHLMC, or GNMA.
Report in the appropriate columns the amortized cost and
fair value of all classes of CMOs, REMICs, CMO and
REMIC residuals, and stripped mortgage-backed securities issued by non-U.S. government issuers (e.g., other
depository institutions, insurance companies, state and
local housing authorities in the U.S.) for which the
collateral consists of GNMA (Ginnie Mae) passthroughs, FNMA (Fannie Mae) pass-throughs, FHLMC
(Freddie Mac) participation certificates, or other
mortgage-backed securities (i.e., classes of CMOs or
REMICs, CMO or REMIC residuals, and stripped
mortgage-backed securities) issued or guaranteed by
FNMA, FHLMC, GNMA, or VA.
Line Item 4(b)(3)
securities.

All other mortgage-backed

Report in the appropriate columns the amortized cost and
fair value of all CMOs, REMICs, CMO and REMIC
HC-B-5

Schedule HC-B

residuals, and stripped mortgage-backed securities issued
by non-U.S Government issuers (e.g., other depository
institutions, insurance companies, state and local housing
authorities in the U.S.) for which the collateral does not
consist of GNMA (Ginnie Mae) pass-throughs, FNMA
(Fannie Mae) pass-throughs, FHLMC (Freddie Mac)
participation certificates or other mortgage-backed securities (i.e., classes of CMOs or REMICs, CMO and
REMIC residuals, and stripped mortgage-backed securities) issued by FNMA, FHLMC, GNMA, or VA.
Line Item 5

Asset-backed securities (ABS).

Report in the appropriate columns the amortized cost and
fair value of all asset-backed securities (other than
mortgage-backed securities), including asset-backed commercial paper, not held for trading. For bank holding
companies with foreign offices or with $1 billion or more
in total assets, this item must equal Schedule HC-B, sum
of Memorandum items 5(a) through 5(f).
Line Item 6

Other debt securities.

Report in the appropriate columns the amortized cost and
fair value of all other debt securities that are not held
for trading that cannot properly be reported in Schedule HC-B, items 1 through 5 above.
Exclude from other debt securities:
(1) All holdings of certificates of participation in pools
of residential mortgages, collateralized mortgage
obligations (CMOs), real estate mortgage investment
conduits (REMICs), CMO and REMIC residuals,
and stripped mortgage-backed securities (such as
interest-only strips (IOs), principal-only strips (POs),
and similar instruments) (report in Schedule HC-B,
item 4 above).
(2) Holdings of bankers acceptances, and certificates of
deposit, which are not classified as securities for
purposes of this report.
Line Item 6(a)

Other domestic debt securities.

Include in this item:
(1) Bonds, notes, debenture, equipment trust certificates,
and commercial paper issued by U.S.-chartered corporations and other U.S. issuers and not reportable
elsewhere in Schedule HC-B.
(2) Preferred stock of U.S.-chartered corporations and
business trusts that by its terms either must be
HC-B-6

redeemed by the issuing corporation or trust or is
redeemable at the option of the holder, including trust
preferred securities subject to mandatory redemption.
(3) Detached U.S. government security coupons and
ex-coupon U.S. government securities held as the
result of either their purchase or the bank holding
company’s stripping of such securities and Treasury
receipts such as CATs, TIGRs, COUGARs, LIONs,
and ETRs. (Refer to the Glossary entry for ‘‘coupon
stripping, Treasury receipts, and STRIPS’’ for additional information.)
Line Item 6(b)

Foreign debt securities.

Report in this item the amortized cost and fair value of
foreing debt securities not held for trading issued by
non-U.S.-chartered corporations, foreign governments, or
special international organizations.
Include in this item as foreign debt securities the
following:
(1) Bonds, notes, debentures, equipment trust certificates, and commercial paper issued by non-U.S.chartered corporations.
(2) Debt securities issued by foreign governmental units.
(3) Debt securities issued by international organizations
such as the International Bank for Reconstruction
and Development (World Bank), Inter-American
Development Bank, and Asian Development Bank.
(4) Preferred stock of non-U.S.-chartered corporations
that by its terms either must be redeemed by the
issuing enterprise or is redeemable at the option of
the investor.
Line Item 7 Investments in mutual funds and
other equity securities with readily determinable
fair values.
Report in columns C and D the historical cost and fair
value, respectively, of all investments in mutual funds
and other equity securities with readily determinable fair
values. Such securities include, but are not limited to,
money market mutual funds, mutual funds that invest
solely in U.S. government securities, common stock of
the Federal National Mortgage Association (Fannie Mae),
common stock of the Federal Home Loan Mortgage
Corporation (Freddie Mac), Class A voting and Class C
non-voting common stock of the Federal Agricultural
Schedule HC-B

FR Y-9C
March 2007

Schedule HC-B

Mortgage Corporation (Farmer Mac), and common and
preferred stock of SLM Corporation (the private-sector
successor to the Student Loan Marketing Association).
The fair value of an equity security is readily determinable if sales or bid-and-asked quotations are currently
available on a securities exchange registered with the
Securities and Exchange Commission (SEC) or in the
over-the-counter market, provided that those prices or
quotations for the over-the-counter market are publicly
reported by the National Association of Securities Dealers Automated Quotations systems or by the National
Quotation Bureau. (‘‘Restricted stock,’’ as defined In
FASB Statement No. 115, does not meet this definition.
For the definition of this term, see the instructions to
Schedule HC-F, item 4). The fair value of an equity
security traded only in a foreign market is readily determinable if that foreign market is of a breadth and scope
comparable to one of the U.S. markets referred to above.
Investments in mutual funds and other equity securities
with readily determinable fair values may have been
purchased by the reporting bank holding company or
acquired for debts previously contracted.
Exclude from investments in mutual funds and other
equity securities with readily determinable fair values:
(1) Paid-in stock of a Federal Reserve Bank (report as an
equity security that does not have a readily determinable fair value in Schedule HC-F, item 4).
(2) Stock of a Federal Home Loan Bank (report as an
equity security that does not have a readily determinable fair value in Schedule HC-F, item 4).
(3) Common and preferred stocks that do not have
readily determinable fair values, such as stock of
bankers’ banks and Class B voting common stock of
the Federal Agricultural Mortgage Corporation
(Farmer Mac) (report in Schedule HC-F, item 4).

within one year or if the holder has the power by
contract or otherwise to cause the requirement to be
met within one year (report ‘‘restricted stock’’ as an
equity security that does not have a readily determinable fair value in Schedule HC-F, item 4).
(6) Participation certificates issued by a Federal Intermediate Credit Bank, which represent nonvoting
stock in the bank (report as an equity security that
does not have a readily determinable fair value in
Schedule HC-F, item 4).
(7) Minority interests held by the reporting bank holding
company in any companies not meeting the definition
of associated company (report as equity securities
that do not have a readily determinable fair value in
Schedule HC-F, item 4), except minority holdings
that indirectly represent bank holding company premises (report in Schedule HC, item 6) or other real
estate owned (report in Schedule HC, item 7), provided that the fair value of any capital stock representing the minority interest is not readily determinable. (See the Glossary entry for ‘‘subsidiaries’’ for
the definition of associated company.)
(8) Equity holdings in those corporate joint ventures
over which the reporting bank holding company does
not exercise significant influence (report as equity
securities that do not have a readily determinable fair
value in Schedule HC-F, item 4), except equity
holdings that indirectly represent bank holding company premises (report in schedule HC, item 6) or
other real estate owned (report in Schedule HC,
item 7). (See the Glossary entry for ‘‘subsidiaries’’
for the definition of corporate joint venture.)
(9) Holding of capital stock of and investments in
unconsolidated subsidiaries, associated companies,
and those corporate joint ventures over which the
reporting bank holding company exercises significant influence (report in Schedule HC, item 8,
‘‘Investments in unconsolidated subsidiaries and
associated companies’’).

(4) Preferred stock that by its terms either must be
redeemed by the issuing enterprise or is redeemable
at the option of the investor (report such preferred
stock as an other debt security in Schedule HC-B,
item 6, above).

Line Item 8

(5) ‘‘Restricted stock,’’ as defined in FASB Statement
No. 115, i.e., equity securities for which sale is
restricted by governmental or contractual requirement (other than in connection with being pledged as
collateral), except if that requirement terminates

Report the sum of items 1 through 7. The total of column A for this item must equal Schedul HC, item 2(a),
‘‘Held-to-maturity securities.’’ The total for column D
must equal Schedule HC, item 2(b), ‘‘Available-for-sale
securities.’’

FR Y-9C
Schedule HC-B

March 2007

Total.

HC-B-7

Schedule HC-B

Line Item M1

Pledged securities.

Report the amortized cost of all held-to-maturity securities and the fair value of all available-for-sale securities
included in this schedule that are pledged to secure
deposits, repurchase transactions, or other borrowings
(regardless of the balance of the deposits or other liabilities against which the securities are pledged), as performance bonds under futures or forward contracts, or for
any other purpose. Include as pledged securities any
held-to-maturity and available-for-sale securities that
have been ‘‘loaned’’ in securities borrowing/lending
transactions that do not qualify as sales under FASB
Statement No. 140.
Also include in this item securities owned by consolidated insurance subsidiaries and held in custodial trusts
(that are reported as held-to-maturity securities or
available-for-sale securities in Schedule HC-B) that are
pledged to insurance companies external to the consolidated bank holding company.
Line Item M2 Remaining maturity or next
repricing date of debt securities.
Report in memorandum items 2(a) through 2(c) below
the remaining maturity or next repricing date of debt
securities held by the consolidated bank holding company that are included in items 1 through 6 above. Report
the amortized cost of held-to-maturity securities and the
fair value of available-for-sale securities as reported in
columns A and D above in the appropriate subitems.
Exclude from memorandum item 2 the bank holding
company’s holdings of equity securities with readily
determinable fair values (reported in Schedule HC-B,
item 7, above)(e.g., investments in mutual funds, common stock, preferred stock). Also exclude those debt
securities that are reported as ‘‘nonaccrual’’ in Schedule
HC-N, item 9, column C.

interest rate is a predetermined interest rate which is a
rate that changes during the term of the debt security on a
predetermined basis, with the exact rate of interest over
the life of the debt security known with certainty to both
the borrower and the lender when the debt security is
acquired.
A floating rate is a rate that varies, or can vary, in relation
to an index, to some other interest rate such as the rate on
certain U.S. Government securities or the ‘‘prime rate,’’
or to some other variable criterion the exact value of
which cannot be known in advance. Therefore, the exact
rate the debt security carries at any subsequent time
cannot be known at the time of origination.
When the rate on a debt security with a floating rate has
reached a contractual floor or ceiling level, the debt
security is to be treated as ‘‘fixed rate’’ rather than as
‘‘floating rate’’ until the rate is again free to float.
Next repricing date is the date the interest rate on a
floating rate debt security can next change in accordance
with the terms of the contract (without regard to the
security’s repayment schedule, if any, or expected prepayments) or the contractual maturity date of the security, whichever is earlier.
Bank holding companies whose records or information
systems provide data on the final contractual maturities,
next repricing dates, and expected average lives of their
debt securities for time periods that closely approximate
the maturity periods specified in Memorandum items 2(a)
through 2(c) (e.g., 359 or 360 days rather than 1 year)
may use these dates to complete Memorandum items 2(a)
through 2(c).

Remaining maturity is the amount of time remaining
from the report date until the final contractual maturity of
the instrument without regard to the instrument’s repayment schedule, if any.

For debt securities with scheduled contractual payments,
bank holding companies whose records or information
systems provide repricing data that take into account
these scheduled contractual payments, with or without
the effect of anticipated prepayments, may adjust these
data in an appropriate manner to derive reasonable
estimates for the final contractual maturities of fixed rate
debt securities and floating rate debt securities and the
next repricing dates of floating rate debt securities.

A fixed interest rate is a rate that is specified at the
origination of the transaction, is fixed and invariable
during the term of the debt security, and is known to both
the borrower and the lender. Also treated as a fixed

Callable fixed rate debt securities should be reported in
Memorandum items 2(a), 2(b) and 2(c) without regard to
their next call date unless the security has actually been
called. When fixed rate debt securities have been called,

For purposes of this memorandum item, the following
definitions apply:

HC-B-8

Schedule HC-B

FR Y-9C
March 2007

Schedule HC-B

they should be reported on the basis of the time remaining until the call date. Callable floating rate debt securities should be reported on the basis of their next repricing
date without regard to their next call date if the security
has not been called. Those that have been called should
be reported based on the earlier of their next repricing
date or their actual call date.
Fixed rate mortgage pass-through securities (such as
those guaranteed by the Government National Mortgage
Association (GNMA) or issued by the Federal Home
Loan Mortgage Corporation (FHLMC), the Federal
National Mortgage Association (FNMA), and certain
banks, savings associations, and securities dealers) and
fixed rate Small Business Administration (SBA) ‘‘Guaranteed Loan Pool Certificates’’ should be reported on the
basis of the time remaining until their final contractual
maturity without regard to either expected prepayments
or scheduled contractual payments. Floating rate mortgage pass-through securities and SBA ‘‘Guaranteed Loan
Pool Certificates’’ should be reported on the basis of their
next repricing date.
Fixed rate debt securities that provide the reporting bank
holding company with the option to redeem them at one
or more specified dates prior to their contractual maturity
date, so-called ‘‘put bonds,’’ should be reported on the
basis of the time remaining until the next ‘‘put’’ date.
Floating rate ‘‘put bonds’’ should be reported on the basis
of their next repricing date without regard to ‘‘put’’ dates
if the bank holding company has not exercised the put. If
a ‘‘put’’ has been exercised but the security has not yet
been repaid, the ‘‘put’’ bond should be reported based on
the earlier of its next repricing date or its scheduled
repayment date.

amount of time remaining until next repricing date over
one year but less than five years.
Line Item M2(c)

Over 5 years.

Report in this item all securities held by the consolidated
bank holding company with a remaining maturity or
amount of time remaining until next repricing date of
over five years.
Line Item M3 Amortized cost of held-to-maturity
securities sold or transferred to available-for-sale or
trading securities during the calendar year-to-date.
If the reporting bank holding company has sold any
held-to-maturity debt securities or has transferred any
held-to-maturity debt securities to the available-for-sale
or to trading securities during the calendar year-to-date,
report the total amortized cost of these held-to-maturity
debt securities as of their date of sale or transfer.
Exclude the amortized cost of any held-to-maturity debt
security that has been sold near enough to (e.g., within
three months of) its maturity date (or call date if exercise
of the call is probable) that interest rate risk is substantially eliminated as a pricing factor. Also exclude the
amortized cost of any held-to-maturity debt security that
has been sold after the collection of a substantial portion
(i.e., at least 85 percent) of the principal outstanding at
acquisition due to prepayments on the debt security, or, if
the debt security is a fixed rate security, due to scheduled
payments payable in equal installments (both principal
and interest) over its term.
Line Item M4

Structured notes.

Report in this item all securities held by the consolidated
bank holding company with a remaining maturity or
amount of time remaining until next repricing date of one
year or less.

Report in this item all structured notes included in the
held-to-maturity and available-for-sale accounts and
reported in Schedule HC-B. In general, structured notes
are debt securities whose cash flow characteristics (coupon
rate, redemption amount, or stated maturity) depend upon
one or more indices and/or that have embedded forwards
or options or are otherwise commonly known as ‘‘structured notes.’’ Include as structured notes any assetbacked securities (other than mortgage-backed securities)
which possess the aforementioned characteristics.

Line Item M2(b)

Structured notes include, but are not limited to, the
following common structures:

Zero coupon debt securities, including U.S. Treasury
bills, should be treated as fixed rate debt securities for
purposes of this Memorandum item.
Line Item M2(a)

1 year and less.

Over 1 year to 5 years.

Report in this item all securities held by the consolidated
bank holding company with a remaining maturity or
FR Y-9C
Schedule HC-B

March 2007

(1) Floating rate debt securities whose payment of interest is based upon:
HC-B-9

Schedule HC-B

(a) a single index of a Constant Maturity Treasury
(CMT) rate or a Cost of Funds Index (COFI), or

movements in market yields. A leveraged bond
would involve a multiplier greater than 1.

(b) changes in the Consumer Price Index (CPI).
However, exclude from structured notes all U.S.
Treasury Inflation-Protected Securities (TIPS).

(6) Range Bonds. Range bonds (or accrual bonds) pay
the investor an above-market coupon rate as long as
the reference rate is between levels established at
issue. For each day that the reference rate is outside
this range, the bonds earn no interest. For example, if
LIBOR is the reference rate, a bond might pay
LIBOR plus 75 basis points for each day that LIBOR
is between 3.5 and 5.0 percent. When LIBOR is less
than 3.5 percent or more than 5 percent, the bond
would accrue no interest.

(2) Step-up Bonds. Step-up securities initially pay the
investor an above-market yield for a short noncall
period and then, if not called, ‘‘step up’’ to a higher
coupon rate (which will be below current market
rates). The investor initially receives a higher yield
because of having implicitly sold one or more call
options. A step-up bond may continue to contain call
options even after the bond has stepped up to the
higher coupon rate. A multistep bond has a series of
fixed and successively higher coupons over its life.
At each call date, if the bond is not called, the coupon
rate increases.

(7) Inverse Floaters. These bonds have coupons that
increase as rates decline and decrease as rates rise.
The coupon is based upon a formula, such as 12 percent minus three-month LIBOR.

(3) Index Amortizing Notes (IANs). IANs repay principal according to a predetermined amortization
schedule that is linked to the level of a specific index
(usually the London Interbank Offered Rate—
LIBOR—or a specified prepayment rate). As market
interest rates increase (or prepayment rates decrease),
the maturity of an IAN extends, similar to that of a
collateralized mortgage obligation. When the principal payments on these notes are indexed to the
prepayment performance of a reference pool of mortgages or a reference mortgage-backed security, but
the notes themselves are not collateralized by the
mortgages or the mortgage-backed security, the notes
are sometimes marketed as Prepayment-Linked Notes.

Exclude from structured notes floating rate debt securities denominated in U.S. dollars whose payment of
interest is based upon a single index of a Treasury bill
rate, the prime rate, or LIBOR and which do not contain
adjusting caps, adjusting floors, leverage, or variable
principal redemption. Furthermore, debt securities that
do not possess the aforementioned characteristics of a
structured note need not be reported as structured notes
solely because they are callable as of a specified date at
a specified price. In addition, debt securities that in the
past possessed the characteristics of a structured note, but
which have ‘‘fallen through’’ their structures (e.g., all of
the issuer’s call options have expired and there are no
more adjustments to the interest rate on the security),
need not be reported as structured notes.

(4) Dual Index Notes. These bonds have coupon rates
that are determined by the difference between
two market indices, typically the Constant Maturity
Treasury rate (CMT) and LIBOR. These bonds often
have a fixed coupon rate for a brief period, followed
by a longer period of variable rates, e.g., 8 percent
fixed for two years, then 10-year CMT plus 300 basis
points minus three-month LIBOR.

Generally, municipal and corporate securities that have
periodic call options should not be reported as structured
notes. Although many of these securities have features
similar to those found in some structured notes (e.g.,
step-ups, which generally remain callable after a step-up
date), they are not commonly known as structured notes.
Examples of such callable securities that should not be
reported as structured notes include:

(5) De-leveraged Bonds. These bonds pay investors
according to a formula that is based upon a fraction
of the increase or decrease in a specified index, such
as the CMT rate or the prime rate. For example,
the coupon might be the 10-year CMT rate multiplied
by 0.5, plus 150 basis points. The deleveraging
multiplier (0.5) causes the coupon to lag overall
HC-B-10

(1) Callable municipal and corporate bonds which have
single (or multiple) explicit call dates and then can be
called on any interest payment date after the last explicit call date (i.e., they are continuously callable).
(2) Callable federal agency securities that have continuous call features after an explicit call date, except
step-up bonds (which are structured notes).
Schedule HC-B

FR Y-9C
March 2007

Schedule HC-B

The mere existence of simple caps and floors does not
necessarily make a security a structured note. Securities
with adjusting caps or floors (i.e., caps or floors that
change over time), however, are structured notes. Therefore, the following types of securities should not be
reported as structured notes:
(1) Variable rate securities, including Small Business
Administration ‘‘Guaranteed Loan Pool Certificates,’’
unless they have features of securities which are
commonly known as structured notes (i.e., they are
inverse, range, or de-leveraged floaters, index amortizing notes, dual index or variable principal redemption or step-up bonds), or have adjusting caps or
floors.
(2) Mortgage-backed securities.
Line Item M4(a)
notes.

Amortized cost of structured

Report the amortized cost of all structured notes included
in the held-to-maturity and available-for-sale accounts.
The amortized cost of these securities should also be
reported in columns A and C of the body of Schedule HC-B.
Line Item M4(b)

Fair value of structured notes.

Report the fair (market) value of structured notes reported
in memorandum item 4(a) above. The fair value of these
securities should also be reported in columns B and D of
the body of Schedule HC-B. Do not combine or otherwise net the fair value of any structured note with the fair
or book value of any related asset, liability, or offbalance-sheet derivative instrument.
Line Item M5

Asset-backed securities.

Memorandum items 5(a) through 5(f) are to be completed by bank holding companies with foreign offices
or with $1 billion or more in total assets.1
Report in the appropriate columns of the appropriate
subitems the amortized cost and fair value of all assetbacked securities (other than mortgage-backed securities), including asset-backed commercial paper, not
1. This asset size test is determined based on the total assets reported in
the previous year’s June 30 FR Y-9C report. Once a bank holding company surpasses the $1 billion total asset threshold, it must continue to
report these memorandum items regardless of subsequent changes in its
total assets.
FR Y-9C
Schedule HC-B

March 2007

held for trading. For each column, the sum of Memorandum items 5(a) through 5(f) must equal Schedule HC-B,
item 5.
For purposes of categorizing asset-backed securities in
Schedule HC-B, Memorandum items 5(a) through 5(f),
below, each individual asset-backed security should be
included in the item that most closely describes the
predominant type of asset that collateralizes the security
and this categorization should be used consistently over
time. For example, an asset-backed security may be
collateralized by automobile loans to both individuals
and business enterprises. If the prospectus for this assetbacked security or other available information indicates
that these automobile loans are predominantly loans to
individuals, the security should be reported in Schedule
HC-B, Memorandum item 5(c), as being collateralized
by automobile loans.
Line Item M5(a)

Credit card receivables.

Report in the appropriate columns the amortized cost and
fair value of all asset-backed securities collateralized by
credit card receivables, i.e., extensions of credit to individuals for household, family, and other personal expenditures arising from credit cards as defined for Schedule
HC-C, item 6(a).
Line Item M5(b)

Home equity lines.

Report in the appropriate columns the amortized cost and
fair value of all asset-backed securities collateralized by
home equity lines of credit, i.e., revolving, open-end
lines of credit secured by 1-to-4 family residential properties as defined for Schedule HC-C, item 1(c)(1).
Line Item M5(c)

Automobile loans.

Report in the appropriate columns the amortized cost and
fair value of all asset-backed securities collateralized by
automobile loans, i.e., loans to individuals for the purpose of purchasing private passenger vehicles, including
minivans, vans, sport-utility vehicles, pickup trucks, and
similar light trucks for personal use. Such loans are a
subset of ‘‘Other consumer loans,’’ as defined for Schedule HC-C, item 6(c).
Line Item M5(d)

Other consumer loans.

Report in the appropriate columns the amortized cost and
fair value of all asset-backed securities collateralized by
HC-B-11

Schedule HC-B

other consumer loans, i.e., loans to individuals for household, family, and other personal expenditures as defined
for Schedule HC-C, items 6(b) and 6(c), excluding
automobile loans as described in Schedule HC-B, Memorandum item 5(c), above.
Line Item M5(e)

Commercial and industrial loans.

Report in the appropriate columns the amortized cost and
fair value of all asset-backed securities collateralized by
commercial and industrial loans, i.e., loans for commercial and industrial purposes to sole proprietorships, partnerships, corporations, and other business enterprises,

HC-B-12

whether secured (other than by real estate) or unsecured,
single-payment or installment, as defined for Schedule
HC-C, item 4.
Line Item M5(f)

Other.

Report in the appropriate columns the amortized cost and
fair value of all asset-backed securities collateralized by
non-mortgage loans other than those described in Schedule HC-B, Memorandum items 5(a) through 5(e), above,
i.e., loans as defined for Schedule HC-C, items 2, 3, and 7
through 9; lease financing receivables as defined for
Schedule RC-C, item 10; and all other assets.

Schedule HC-B

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Loan and Lease Financing Receivables
Schedule HC-C

General Instructions
Loans and lease financing receivables are extensions of
credit resulting from either direct negotiation between the
bank holding company or its consolidated subsidiaries
and its customers or the purchase of such assets from
others. (See the Glossary entries for ‘‘loan’’ and for
‘‘lease accounting’’ for further information.)
All reporting bank holding companies must complete this
schedule regardless of whether or not it has foreign or
domestic offices. This schedule has two columns for
information on loans and lease financing receivables.
Column A provides loan and lease detail for the fully
consolidated bank holding company and column B provides detail on loans and leases held by the domestic
offices of the reporting bank holding company. (See the
Glossary entry for ‘‘domestic office’’ for the definition of
this term.)
Report all loans and leases that the bank holding company or its subsidiaries have the intent and ability to hold
for the foreseeable future or until maturity or payoff, i.e.,
loans and leases held for investment in Schedule HC-C.
Also report in this schedule the carrying value of all loans
that are held for sale as part of the bank holding
company’s mortgage banking activities or activities of a
similar nature involving other types of loans. When a
loan is acquired (through origination or purchase) with
the intent or expectation that it may or will be sold at
some indefinite date in the future, the loan should be
reported as held for sale or held for investment, based on
facts and circumstances, in accordance with generally
accepted accounting principles and related supervisory
guidance. In addition, a loan acquired and held for
securitization purposes should be reported as a loan held
for sale. Loans held for sale shall be reported at the lower
of cost or market value as of the report date. The amount
by which cost exceeds market value, if any, shall be
accounted for as a valuation allowance. For further
FR Y-9C
Schedule HC-C

March 2007

information, see FASB Statement No. 65, ‘‘Accounting
for Certain Mortgage Banking Activities,’’ AICPA Statement of Position 01-6, ‘‘Accounting by Certain Entities
(Including Entities With Trade Receivables) That Lend
to or Finance the Activities of Others,’’ and the March 26,
2001, Interagency Guidance on Certain Loans Held for
Sale.
Report loans and leases held for investment in this
schedule without any deduction for loss allowances for
loans and leases or allocated transfer risk reserves related
to loans and leases, which are to be reported in Schedule
HC, item 4(c), ‘‘Allowance for loan and lease losses.’’
Each item in this schedule should be reported net
of (1) unearned income (to the extent possible)
and (2) deposits accumulated for the payment of personal
loans (hypothecated deposits). Net unamortized loan fees
represent an adjustment of the loan yield, and shall be
reported in this schedule in the same manner as unearned
income on loans, i.e., deducted from the related loan
balances (to the extent possible) or deducted from total
loans in Schedule HC-C, item 11, ‘‘LESS: Any unearned
income on loans reflected in items 1–9 above.’’ Net
unamortized direct loan origination costs shall be added
to the related loan balances in each item in this schedule.
‘‘Purchased impaired loans’’ are loans accounted for in
accordance with AICPA Statement of Position 03-3,
‘‘Accounting for Certain Loans or Debt Securities
Acquired in a Transfer,’’ that a bank holding company
has purchased, including those acquired in a purchase
business combination, where there is evidence of deterioration of credit quality since the origination of the loan
and it is probable, at the purchase date, that the bank
holding company will be unable to collect all contractually required payments receivable. Neither the accretable
yield nor the nonaccretable difference associated with
purchased impaired loans should be reported as unearned
income in Schedule HC-C, item 11. In addition, the
HC-C-1

Schedule HC-C

nonaccretable difference, must not be recognized as an
adjustment of yield, loss accrual, or valuation allowance.
If, as a result of a change in circumstances, the bank
holding company regains control of a loan previously
accounted for appropriately as having been sold because
one or more of the conditions for sale accounting in
FASB Statement No. 140, ‘‘Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of
Liabilities,’’ are no longer met, such a change should be
accounted for in the same manner as a purchase of the
loan from the former transferee (purchaser) in exchange
for liabilities assumed. The rebooked loan must be
reported as a loan asset in Schedule HC-C either as a loan
held for sale or a loan held for investment, based on facts
and circumstances, in accordance with generally accepted
accounting principles. This accounting and reporting
treatment applies, for example, to U.S. Governmentguaranteed or insured residential mortgage loans backing
Government National Mortgage Association (GNMA)
mortgage-backed securities that a bank holding company
services after it has securitized the loans in a transfer
accounted for as a sale. If and when individual loans later
meet delinquency criteria specified by GNMA, the loans
are eligible for repurchase, the bank holding company is
deemed to have regained effective control over these
loans, and the delinquent loans must be brought back
onto the bank holding company’s books as loan assets.
Exclude all intracompany (i.e., between subsidiaries of
the consolidated bank holding company) transactions and
all loans and leases held for trading purposes.
All loans are classified according to security, borrower, or
purpose. Loans covering two or more classifications are
sometimes difficult to classify. In such instances, classify
the entire loan according to the major criterion.
Report in this schedule all loans that the reporting bank
holding company or its consolidated subsidiaries have
sold under repurchase agreements. Also report all loans
and leases on the books of the reporting bank holding
company even if on the report date they are past due and
collection is doubtful. Exclude any loans or leases the
bank holding company has sold or charged off. Also
exclude the fair value of any assets received in full or
partial satisfaction of a loan or lease (unless the asset
received is itself reportable as a loan or lease) and
any loans for which the bank holding company has
obtained physical possession of the underlying collateral
regardless of whether formal foreclosure or repossession
HC-C-2

proceedings have been instituted against the borrower.
Refer to the Glossary entries for ‘‘troubled debt restructurings’’ and ‘‘foreclosed assets’’ for further discussions
of these topics.
Exclude, for purposes of this schedule, the following:
(1) Federal funds sold (in domestic offices), i.e., all loans
of immediately available funds (in domestic offices)
that mature in one business day or roll over under a
continuing contract, excluding funds lent in the form
of securities purchased under agreements to resell.
Report federal funds sold (in domestic offices) in
Schedule HC, item 3(a). However, report overnight
lending for commercial and industrial purposes as
loans in this schedule. Also report lending transactions in foreign offices involving immediately available funds with an original maturity of one business
day or under a continuing contract that are not
securities resale agreements as loans in this schedule.
(2) Lending transactions in the form of securities purchased under agreements to resell (report in Schedule
HC, item 3(b), ‘‘Securities purchased under agreements to resell’’).
(3) contracts of sale or other loans indirectly representing other real estate (report in Schedule HC, item 7,
‘‘Other real estate owned’’);
(4) undisbursed loan funds, sometimes referred to as
incomplete loans or loans in process, unless the
borrower is liable for and pays the interest thereon. If
interest is being paid by the borrower on the undisbursed proceeds, the amounts of such undisbursed
funds should be included in both loans and deposits.
(Do not include loan commitments that have not yet
been taken down, even if fees have been paid; see
Schedule HC-L, item 1);
(5) loans and leases held for trading purposes (report in
Schedule HC, item 5, ‘‘Trading assets,’’ and Schedule HC-D); and
(6) holdings of commercial paper (report either in Schedule HC-B or Schedule HC-D as appropriate).
Line Item 1

Loans secured by real estate.

Report all loans (other than those to states and political
subdivisions in the U.S.), regardless of purpose and
regardless of whether originated by the bank holding
company or its consolidated subsidiaries or purchased
Schedule HC-C

FR Y-9C
March 2007

Schedule HC-C

from others, that are secured by real estate as evidenced
by mortgages, deeds of trust, land contracts, or other
instruments, whether first or junior liens (e.g., equity
loans, second mortgages) on real estate. (See the Glossary entry for ‘‘loans secured by real estate’’ for the
definition of this term.)
For bank holding companies with domestic offices
only: Report loans secured by real estate as a single total
in column A for the consolidated bank holding company.
Report in column B within the appropriate subitem below
loans for construction, land development, and other land
loans when they are secured by real estate, loans secured
by farmland, by 1–4 family residential properties, by
multifamily properties, and by nonfarm nonresidential
properties. The total of the subitems in column B should
equal the consolidated total reported in column A.
For bank holding companies with domestic and foreign offices: Report loans secured by real estate as a
single total in column A for the consolidated bank
holding company and by type of real estate collateral in
the appropriate subitem below in column B.
Include all loans (other than those to states and political
subdivisions in the U.S.), regardless of purpose and
regardless of whether originated by the bank holding
company or purchased from others, that are secured by
real estate as evidenced by mortgages, deeds of trust,
land contracts, or other instruments, whether first or
junior liens (e.g., equity loans, second mortgages) on real
estate. See the Glossary entry for ‘‘loan secured by real
estate’’ for the definition of this term.
Include as loans secured by real estate:
(1) Loans secured by residential properties that are
guaranteed by the Farmers Home Administration
(FmHA) and extended, collected, and serviced by a
party other than the FmHA.
(2) Loans secured by properties and guaranteed by governmental entities in foreign countries.
(3) Participations in pools of Federal Housing Administration (FHA) Title I improvement loans that are
secured by liens (generally, junior liens) on residential properties.
Exclude the following from loans secured by real estate:
(1) Obligations (other than securities) of states and
political subdivisions in the U.S. secured by real
estate (report in item 9 below).
FR Y-9C
Schedule HC-C

March 2007

(2) All loans and sales contracts indirectly representing
other real estate (report in Schedule HC, item 7,
‘‘Other real estate owned’’).
(3) Loans to real estate companies, real estate investment
trusts, mortgage lenders, and foreign nongovernmental entities that specialize in mortgage
loan originations and that service mortgages for other
lending institutions when the real estate mortgages or
similar liens on real estate are not sold to the
bank holding company but are merely pledged as
collateral (report below in item 2, ‘‘Loans to depository institutions and acceptances of other banks,’’ or
as all other loans in item 9, ‘‘All other loans,’’ as
appropriate).
(4) Notes issued and insured by the Farmers Home
Administration and instruments (certificates of
beneficial ownership and insured note insurance
contracts) representing an interest in Farmers
Home Administration-insured notes (report in Schedule HC-B, item 2, ‘‘U.S. government agency obligations’’).
(5) Bonds issued by the Federal National Mortgage
Association or by the Federal Home Loan Mortgage
Corporation that are collateralized by residential
mortgages (report in Schedule HC-B, item 2).
(6) Pooled residential mortgages for which participation
certificates have been issued or guaranteed by the
Government National Mortgage Association, the
Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation (report in
Schedule HC-B, item 4(a)). However, if the reporting
bank holding company is the seller-servicer of the
residential mortgages backing such securities and, as
a result of a change in circumstances, it must rebook
any of these mortgages because one or more of the
conditions for sale accounting in FASB Statement
No. 140 are no longer met, the rebooked mortgages
should be included in Schedule HC-C as loans
secured by real estate.
Line Item 1(a) Construction, land development,
and other land loans.
Report in this item loans secured by real estate made to
finance land development (i.e., the process of improving
land—laying sewers, water pipes, etc.) preparatory to
erecting new structure or the on-site construction of
HC-C-3

Schedule HC-C

industrial, commercial, residential, or farm buildings. For
this item, ‘‘construction’’ includes not only construction
of new structures, but also additions or alterations to
existing structures and the demolition of existing structures to make way for new structures. Also include loans
secured by vacant land.

units if each is separated from other units by dividing walls that extend from ground to roof (e.g., row
houses, townhouses, or the like).

Include loans secured by real estate the proceeds of
which are to be used to acquire and improve developed
and undeveloped property.

(2) Mobile homes where (a) state laws define the purchase or holding of a mobile home as the purchase or
holding of real property and where (b) the loan to
purchase the mobile home is secured by that mobile
home as evidenced by a mortgage or other instrument
on real property.

Also include loans made under Title I or Title X of the
National Housing Act that conform to the definition of
construction stated above and that are secured by real
estate.

(3) Individual condominium dwelling units and loans
secured by an interest in individual cooperative housing units, even if in a building with five or more
dwelling units.

Exclude loans to finance construction and land development that are not secured by real estate (report in items 2
through 9 below, as appropriate).

(4) Housekeeping dwellings with commercial units combined where use is primarily residential and where
only 1 to 4 family dwelling units are involved.

Line Item 1(b)

Secured by farmland.

Report in this item loans secured by farmland and
improvements thereon, as evidenced by mortgages or
other liens. Farmland includes all land known to be used
or usable for agricultural purposes, such as crop and
livestock production. Farmland includes grazing or pasture land, whether tillable or not and whether wooded or
not.
Include loans secured by residential properties that are
guaranteed by the Farmers Home Administration (FmHA)
and extended, collected, and serviced by a party other
than the FmHA.
Exclude, however, loans extended, serviced, collected,
and insured by FmHA (report in Schedule HC-B, item 2,
‘‘U.S. government agency obligations.’’) Also exclude
loans for farm property construction and land development purpose (report in Schedule HC-C, item 1(a)
above).
Line Item 1(c)
properties.

Secured by 1–4 family residential

Report in this item open-end and closed-end loans
secured by real estate as evidenced by mortgages (FHA,
FmHA, VA, or conventional) or other liens on the
following:
(1) Nonfarm property containing 1 to 4 dwelling units
(including vacation homes) or more than 4 dwelling
HC-C-4

Exclude loans for 1-to-4 family residential property
construction and land development purposes (report in
Schedule HC-C, item 1(a)). Also, exclude loans secured
by vacant lots in established single-family residential
sections or in areas set aside primarily for 1-to-4 family
homes (report in Schedule HC-C, item 1(a)).
Line Item 1(c)(1) Revolving, open-end loans
secured by 1–4 family residential properties and
extended under lines of credit.
Report the amount outstanding under revolving, openend lines of credit secured by 1 to 4 family residential
properties. These lines of credit, commonly known as
home equity lines, are typically secured by a junior lien
and are usually accessible by check or credit card.
Line Item 1(c)(2) Closed-end loans secured by
1–4 family residential properties.
Report in the appropriate subitem the amount of all
closed-end loans secured by 1 to 4 family residential
properties.
Line Item 1(c)(2)(a)

Secured by first liens.

Report the amount of all closed-end loans secured by first
liens on 1 to 4 family residential properties.
Line Item 1(c)(2)(b)

Secured by junior liens.

Report the amount of all closed-end loans secured by
junior (i.e., other than first) liens on 1 to 4 family
residential properties.
Schedule HC-C

FR Y-9C
March 2007

Schedule HC-C

Line Item 1(d) Secured by multifamily (5 or more)
residential properties.
Report in this item all other nonfarm residential loans
secured by real estate as evidenced by mortgages (FHA
and conventional) or other liens. Specifically, include
loans on the following:
(1) Nonfarm properties with 5 or more dwelling units in
structures (including apartment buildings and apartment hotels) used primarily to accommodate households on a more or less permanent basis.
(2) 5 or more unit housekeeping dwellings with commercial units combined where use is primarily residential.
(3) Cooperative-type apartment buildings containing 5 or
more dwelling units.
Exclude loans for multifamily residential property construction and land development purposes (report in
item 1(a)). Also exclude loans secured by nonfarm
nonresidential properties (report in item 1(e)).
Line Item 1(e)
properties.

Secured by nonfarm nonresidential

Report in this item all loans secured by real estate as
evidenced by mortgages or other liens on business and
industrial properties, hotels, motels, churches, hospitals,
educational and charitable institutions, dormitories, clubs,
lodges, association buildings, ‘‘homes’’ for aged persons
and orphans, golf courses, recreational facilities, and
similar properties.
Exclude loans for purposes of constructing or developing
nonfarm nonresidential properties (report in item 1(a)).

Report all loans (other than those secured by real estate),
including overdrafts to banks, other depository institutions, and other associations, companies, and financial
intermediaries whose primary business is to accept
deposits and to extend credit for business or for personal
expenditure purposes and holdings at all bankers’ acceptances accepted by other banks and not held for trading.
Depository institutions cover:
(1) Commercial banks in the U.S., including:
(a) U.S. branches and agencies of foreign banks, U.S.
branches and agencies of foreign official banking
institutions, and investment companies that are
chartered under Article XII of the New York
State banking law and are majority-owned by one
more foreign banks; and
(b) all other commercial banks in the U.S., i.e., U.S.
branches of U.S. banks;
(2) Depository insitutions in the U.S., other than commercial banks, including:
(a) credit unions;
(b) mutual or stock savings banks;
(c) savings or building and loan associations;
(d) cooperative banks; and
(e) other similar depository institutions; and
(3) Banks in foreign countries, including:
(a) foreign-domiciled branches of other U.S. banks;
and
(b) foreign-domiciled branches of foreign banks.

Line Item 2 Loans to depository institutions and
acceptances of other banks.
For bank holding companies with only domestic
offices: Report in column A in the appropriate subitem
loans to U.S. addressees and loans to non-U.S. addressees. Report the total in column B.
For bank holding companies with domestic and foreign offices: Report in column B the total of loans to
depository institutions in the domestic offices of the
reporting consolidated bank holding companies. Report
in column A, on a fully consolidated basis, the breakdown between loans to U.S. addressees and loans to
non-U.S. addressees.
FR Y-9C
Schedule HC-C

March 2007

See the Glossary entry for ‘‘banks, U.S. and
foreign’’ and ‘‘depository institutions in the U.S.’’
for further discussion of these terms.
Include the following as loans to depository institutions
and acceptances of other banks:
(1) Loans to depository institutions for the purpose of
purchasing or carrying securities.
(2) Loans to depository institutions for which the collateral is a mortgage instrument and not the underlying
real property. Report loans to depository institutions
where the collateral is the real estate itself, as evidenced by mortgages or similar liens, in item 1.
HC-C-5

Schedule HC-C

(3) Purchases of mortgages and other loans under agreements to resell that do not involve the lending of
immediately available funds or that mature in more
than one business day, if acquired from depository
institutions.
(4) Loan participations aquired from depository
institutions that must be treated as secured borrowings rather than sales in accordance with generally
accepted accounting principles. (See the Glossary
entry for ‘‘transfers of financial assets’’ for further
information.)
(5) The acceptances of the consolidated subsidiary banks
of the reporting bank holding company discounted
and held in their portfolios when the account party is
another depository institution.
(6) Any borrowing or lending of immediately available
funds that matures in more than one business day,
other than security repurchase and resale agreements.
Such transactions are sometimes referred to as ‘‘term
federal funds.’’
Exclude the following from loans to depository
institutions:
(1) All transactions reported in Schedule HC, item 3,
‘‘Federal funds sold and securities purchased under
agreements to resell.’’

(8) Loans to lenders other than brokers, dealers, and
banks whose principal business is to extend credit
for the purpose of purchasing or carrying securities
(as described in Federal Reserve Regulation U)
and loans to ‘‘plan lenders’’ (as defined in Federal
Reserve Regulation G) (report as loans for purchasing or carrying securities in item 9).
(9) Loans to federally sponsored lending agencies
(report as all other loans in item 9). (Refer to the
Glossary entry for ‘‘federally sponsored lending
agency’’ for the definition of this term.)
(10) Dollar exchange acceptances created by foreign
governments and official institutions (report in
Schedule HC-C, item 7).
(11) Loans to foreign governments and official institutions, including foreign central banks (report in
Schedule HC-C, item 7). See the Glossary entry for
‘‘foreign governments and official institutions’’ for
the definition of this term.
(12) Acceptances accepted by the reporting bank holding company, discounted, and held in its portfolio, when the account party is not another depository institution. Report such acceptances in other
items of Schedule HC-C, according to the account
party.

(2) Loans secured by real estate, even if extended to
depository institutions (report in item 1).

Line Item 2(a) To U.S. banks and other U.S.
depository institutions.

(3) Loans to holding companies of depository institutions not owned or controlled by the reporting bank
holding company (report as all other loans in
item 9).
(4) Loans to real estate investment trusts and to mortgage companies that specialize in mortgage loan
originations and warehousing or in mortgage loan
servicing (report as all other loans in item 9).

Report in this item for the fully consolidated bank
holding company all loans and acceptances and all other
instruments evidencing loans (except those secured by
real estate) to depository institutions chartered and headquartered in the U.S. (including U.S.-chartered banks
owned by foreigners), but excluding U.S. branches and
agencies of foreign banks. Include in this item loans to
both the U.S. and foreign branches of U.S. banks. U.S.
depository institutions cover the following:

(5) Loans to finance companies and insurance companies (report as all other loans in item 9).

(1) U.S. commercial banks and their branches, wherever
located; and

(6) Loans to brokers and dealers in securities, investment companies, and mutual funds (report as loans
for purchasing or carrying securities in item 9).

(2) other depository institutions in the U.S., i.e.,

(7) Loans to Small Business Investment Companies
(report as all other loans in item 9).
HC-C-6

(a) credit unions;
(b) mutual or stock savings banks;
(c) savings or building and loan associations;
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Schedule HC-C

(d) cooperative banks; and
(e) other similar depository institutions.
Line Item 2(b)

To foreign banks.

Report in this item all loans and acceptances and other
instruments evidencing loans to both the U.S. and foreign
branches of banks chartered and headquartered in a
foreign country. Foreign banks cover the following:
(1) U.S. branches and agencies of foreign banks and
(2) foreign-domiciled branches of foreign banks.
For purposes of these reports, U.S. branches and agencies
of foreign banks include U.S. branches and agencies
of foreign official banking institutions and investment
companies that are chartered under Article XII of the
New York State banking law and that are majority-owned
by one or more foreign banks.
(See the Glossary entry for ‘‘banks, U.S. and foreign’’ for
further discussion of these terms.)
Exclude the following from this item:
(1) dollar exchange acceptances created by foreign governments and official institutions (report in item 7);
and

such loans whether secured (other than by real estate) or
unsecured and whether made to farm and ranch owners
and operators (including tenants) or to nonfarmers. All
other loans to farmers, other than those excluded below,
should also be reported in this item.
Include the following as loans to finance agricultural
production and other loans to farmers:
(1) Loans and advances made for the purpose of financing
agricultural production, including the growing and
storing of crops, the marketing or carrying of agricultural products by the growers thereof, and the breeding, raising, fattening, or marketing of livestock.
(2) Loans and advances made for the purpose of financing
fisheries and forestries, including loans to commercial fishermen.
(3) Agricultural notes and other notes of farmers that the
bank holding company has discounted for, or purchased from, merchants and dealers, either with or
without recourse to the seller.

(2) loans to foreign governments and official institutions,
including foreign central banks (report in item 7).

(4) Loans to farmers that are guaranteed by the Farmers
Home Administration (FmHA) or by the Small Business Administration (SBA) and that are extended,
serviced, and collected by a party other than the
FmHA or SBA.

(See the Glossary entry for ‘‘foreign governments and
official institutions’’ for the definition of this term.)

(5) Loans and advances to farmers for purchases of farm
machinery, equipment, and implements.

Also report in this item the bank holding company’s
holdings of all bankers acceptances accepted by other
banks (both U.S. and non-U.S. banks) and not held in
trading accounts. Acceptances accepted by other banks
may be purchased in the open market or discounted by
the reporting bank holding company or its consolidated
subsidiaries. (For further information, see the Glossary
entry for ‘‘bankers’ acceptances.’’)

(6) Loans and advances to farmers for all other purposes
associated with the maintenance or operations of the
farm, including the following:

Exclude acceptances accepted by the consolidated subsidiary banks of the reporting bank holding company,
discounted, and held in their portfolios. Such acceptances
are to be reported in other items of this schedule according to the account party.
Line Item 3 Loans to finance agricultural
production and other loans to farmers.
Report in columns A and B, as appropriate, loans for the
purpose of financing agricultural production. Include
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Schedule HC-C

March 2007

(a) purchases of private passenger automobiles and
other retail consumer goods; and
(b) provisions for the living expenses of farmers or
ranchers and their families.
Loans to farmers for household, family, and other personal expenditures (including credit cards and related
plans) that are not readily identifiable as being made to
farmers need not be broken out of item 6 for inclusion in
this item.
Exclude the following from loans to finance agricultural
production and other loans to farmers:
(1) Loans secured by real estate (report in item 1).
HC-C-7

Schedule HC-C

(2) Loans to farmers for commercial and industrial purposes, e.g., when a farmer is operating a business
enterprise as well as a farm (report in item 4).
(3) Loans to farmers for the purpose of purchasing or
carrying stocks, bonds, and other securities (report as
loans for purchasing or carrying securities in item 9).
(4) Loans to farmers secured by oil or mining production
payments (report in item 4).
(5) Notes insured by the Farmers Home Administration
(FmHA) and instruments (certificates of beneficial
ownership, insured note insurance contracts) representing an interest in FmHA-insured notes (report
in Schedule HC-B, item 2, ‘‘U.S. government agency
obligations’’). Such notes and instruments are backed
by loans made, serviced, and collected by the FmHA
and were issued prior to January 1, 1975.
Line Item 4

Commercial and industrial loans.

For bank holding companies with domestic offices
only: Report in column A in the appropriate subitem
loans to U.S. addressees and loans to non-U.S. addressees. Report the total in column B.
For bank holding companies with domestic and foreign offices: Report in column B the total of commercial
and industrial loans for the domestic offices only of the
reporting consolidated bank holding companies. Report
in column A, on a fully consolidated basis, the breakdown between loans to U.S. addressees and loans to
non-U.S. addressees.
Report loans for commercial and industrial purposes to
sole proprietorships, partnerships, corporations, and other
business enterprises, whether secured (other than by real
estate) or unsecured, single-payment, or installment.
These loans may take the form of direct or purchased
loans.
Include the acceptances of the consolidated banking
subsidiaries of the reporting bank holding company that
they hold in their portfolio when the account party is a
commercial or industrial enterprise. Also include loans to
individuals for commercial, industrial, and professional
purposes but not for investment or personal expenditure.
Exclude all commercial and industrial loans held in
trading accounts.
Include loans of the types listed below. These descriptions may overlap and are not all inclusive.
HC-C-8

(1) Loans for commercial, industrial, and professional
purposes to
(a) mining, oil- and gas-producing, and quarrying
companies;
(b) manufacturing companies of all kinds, including those that process agricultural
commodities;
(c) construction companies;
(d) transportation and communications companies
and public utilities;
(e) wholesale and retail trade enterprises and other
dealers in commodities;
(f) cooperative associations including farmers’
cooperatives;
(g) service enterprises such as hotels, motels, laundries, automotive service stations, and nursing
homes and hospitals operated for profit;
(h) insurance agents; and
(i) practitioners of law, medicine, and public
accounting.
(2) Loans for the purpose of financing capital expenditures and current operations.
(3) Loans to business enterprises guaranteed by the
Small Business Administration.
(4) Loans to farmers for commercial and industrial
purposes (when farmers operate a business enterprise as well as a farm).
(5) Loans supported by letters of commitment from the
Agency for International Development.
(6) Loans made to finance construction that are not
secured by real estate.
(7) Loans to merchants or dealers on their own promissory notes secured by the pledge of their own
installment paper.
(8) Loans extended under credit cards and related plans
that are readily identifiable as being issued in the
name of a commercial or industrial enterprise.
(9) Dealer flooring or floor-plan loans.
(10) Loans collateralized by production payments (e.g.,
oil or mining production payments). Treat as a loan
Schedule HC-C

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Schedule HC-C

to the original seller of the production payment
rather than to the holder of the production payment.
For example, report in this item, as a loan to an oil
company, a loan made to a nonprofit organization
collateralized by an oil production payment; do not
include in item 9 as a loan to the nonprofit
organization.
(11) Loans and participations in loans secured by conditional sales contracts made to finance the purchase
of commercial transportation equipment.

(9) Equipment trust certificates (report in Schedule HC-B, item 7, or HC-F item 4, as appropriate).
(10) Any commercial or industrial loans and bankers
acceptances, held in the bank holding company’s
trading accounts (report in Schedule HC, item 5,
‘‘Trading assets’’).
(11) Commercial paper (report in Schedule HC-B or
Schedule HC-D, as appropriate).
Line Item 4(a)

(12) Commercial and industrial loans guaranteed by
foreign governmental institutions.

To U.S. addressees (domicile).

(13) Overnight lending for commercial and industrial
purposes.

Report in column A, as appropriate, all commercial and
industrial loans to U.S. addressees. (For a detailed discussion of U.S. and non-U.S. addressees, see the Glossary
entry for ‘‘domicile.’’)

Exclude the following from commercial and industrial
loans:

Line Item 4(b)

(1) Loans secured by real estate, even if for commercial and industrial purposes (report in item 1).
(2) Loans to depository institutions (report in item 2).
(3) Loans to nondepository financial institutions such
as real estate investment trusts, mortgage companies, and insurance companies (report as all other
loans in item 9).
(4) Loans for the purpose of purchasing or carrying
securities (report in item 9).
(5) Loans for the purpose of financing agricultural
production, whether made to farmers or to nonagricultural businesses (report in item 3).
(6) Loans to nonprofit organizations, such as hospitals
or educational institutions (report as all other loans
in item 9), except those for which oil or mining
production payments serve as collateral that are to
be reported in this item.
(7) Holdings of acceptances accepted by other banks,
i.e., that are not consolidated on this report by the
reporting bank holding company (report in item 2).
(8) Holdings of acceptances of banking subsidiaries of
the consolidated bank holding company when the
account party is another bank (report in item 2) or a
foreign government or official institution (report in
item 7).
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March 2007

To non-U.S. addressees (domicile).

Report in column A, as appropriate, all commercial and
industrial loans to non-U.S. addressees. (For a detailed
discussion of U.S. and non-U.S. addressees, see the
Glossary entry for ‘‘domicile.’’)
Line Item 5

Not applicable.

Line Item 6 Loans to individuals for household,
family, and other personal expenditures (i.e.,
consumer loans) (includes purchased paper).
For bank holding companies with foreign offices, report
the amount outstanding of loans to individuals for household, family, and personal expenditures in domestic
offices in column B. Report in column A, on a fully
consolidated basis, the breakdown between credit cards,
other revolving credit plans, and other consumer loans.
For bank holding companies with domestic offices only,
report in column A in the appropriate subitem below
credit cards, other revolving credit plans, and other
consumer loans. Report the total in column B.
Report in the appropriate subitem all credit cards, other
revolving credit plans, and other loans to individuals for
household, family, and personal expenditures. Include
all loans to individuals for household, family, and other
personal expenditures that are not secured by real estate,
whether direct loans or purchased paper. Exclude loans to
individuals for the purpose of purchasing or carrying
securities (report in item 9 below).
HC-C-9

Schedule HC-C

Deposits accumulated by borrowers for the payment of
personal loans (i.e., hypothecated deposits) should be
netted against the related loans.

(3) All credit extended to individuals for household,
family, and other personal expenditures under prearranged overdraft plans (report in Schedule HC-C,
item 6(b)).

Line Item 6(a)

If the bank holding company acts only as agent or
correspondent for the other banks or nonbank corporations and carries no credit card or related plan assets on
its books, enter a ‘‘zero’’. Bank holding companies that
do not participate in any such plan should also enter a
zero.

Credit cards.

Report all extensions of credit to individuals for household, family, and other personal expenditures arising
from credit cards. Report the total amount outstanding of
all funds advanced under these credit cards regardless
of whether there is a period before interest charges are
made. Report the total amount outstanding of all funds
advanced under these credit card plans, regardless of
whether there is a period before interest charges are
made. Report only amounts carried on the books of the
reporting bank holding company as loans that are outstanding on the report date, even if the plan is shared with
other organizations and even if accounting and billing are
done by a correspondent bank or the accounting center of
a plan administered by others.

Line Item 6(b)

Other revolving credit plans.

Report all extensions of credit to individuals for household, family, and other personal expenditures arising
from prearranged overdraft plans and other revolving
credit plans not accessed by credit cards. Report the total
amount outstanding of all funds advanced under these
revolving credit plans, regardless of whether there is a
period before interest charges are made.

If the reporting bank holding company has securitized
credit cards and has retained a seller’s interest that is not
in the form of a security, the carrying value of the seller’s
interest should be reported as credit card loans in this
item. For purposes of these reports, the term ‘‘seller’s
interest’’ means the reporting bank holding company’s
ownership interest in loans that have been securitized,
except an interest that is a form of recourse or other
seller-provided credit enhancement. Seller’s interests
differ from the securities issued to investors by the
securitization structure. The principal amount of a seller’s interest is generally equal to the total principal
amount of the pool of assets included in the securitization
structure less the principal amount of those assets attributable to investors, i.e., in the form of securities issued to
investors.

Do not net balances resulting from overpayment of
account balances on revolving credit plans. Report credit
balances in Schedule HC-E, items 1(a) and 2(a) as
appropriate.

Do not net credit balances resulting from overpayment
of account balances on credit cards. Report credit balances
in Schedule HC-E, items 1(a) or 2(a), as appropriate.

Report in this item other loans to individuals for household, family, and other personal expenditures (other than
those secured by real estate and other than those for
purchasing or carrying securities). This item includes:

Exclude from credit cards:
(1) Credit extended under credit plans to business enterprises (report in Schedule HC-C, item 4, ‘‘Commercial and industrial loans’’).
(2) All credit extended to individuals through credit
cards secured by real estate (report in Schedule HC-C, item 1).
HC-C-10

Exclude from other revolving credit plans:
(1) All ordinary (unplanned) overdrafts on transaction
accounts not associated with check credit or revolving credit operations (report in other items of Schedule HC-C as appropriate).
(2) Credit extended to individuals for household, family,
and other personal expenditures arising from credit
cards (report in Schedule HC-C, item 6(a)).
Line Item 6(c) Other consumer loans (includes
single payment, installment, and all student loans).

(1) purchases of private passenger automobiles, pickup
trucks, household appliances, furniture, trailers, or
boats;
(2) repairs or improvements to the borrower’s residence
(not secured by real estate);
(3) educational expenses, including student loans;
Schedule HC-C

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Schedule HC-C

(4) medical expenses;
(5) personal taxes;
(6) vacations;
(7) consolidation of personal (nonbusiness) debts;
(8) purchases of real estate or mobile homes (not secured
by real estate) to be used as a residence by the
borrower’s family; and
(9) other personal expenditures.
Such loans may take the following form:
(1) Installment loans, demand loans, single payment
time loans, and hire purchase contracts, and should
be reported as other loans to individuals for household, family, and other personal expenditures
regardless of size or maturity and regardless of
whether the loans are made by the consumer loan
department or by any other department of the bank
holding company.
(2) Retail installment sales paper purchased by the bank
holding company from merchants or dealers, finance
companies, and others.
Exclude from other loans to individuals for household,
family, and other personal expenditures:
(1) All direct and purchased loans, regardless of purpose,
secured by real estate as evidenced by mortgages,
deeds of trust, land contracts, or other instruments,
whether first or junior liens (e.g., equity loans, second mortgages), on real estate (report in Schedule HC-C, item 1).
(2) Loans to individuals not secured by real estate for the
purpose of investing in real estate when the real
estate is not to be used as a residence or vacation
home by the borrower or by members of the borrower’s family (report as all other loans in Schedule HC-C, item 9).
(3) Loans to individuals for commercial, industrial, and
professional purposes and for ‘‘floor plan’’ or wholesale financing (report in Schedule HC-C, item 4).
(4) Loans to individuals for the purpose of purchasing
or carrying securities (report in Schedule HC-C,
item 9).
(5) Loans to individuals for investment (as distinct from
commercial, industrial, or professional) purposes
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March 2007

other than those for purchasing or carrying securities
(report as all other loans in Schedule HC-C, item 9).
(6) Loans to merchants, automobile dealers, and finance
companies on their own promissory notes, secured
by the pledge of installment paper or similar instruments (report in Schedule HC-C, item 4, or as all
other loans in Schedule HC-C, item 9, as appropriate).
(7) Loans to farmers, regardless of purpose (to the extent
they can be readily identified, report in Schedule HC-C, item 3).
(8) All credit extended to individuals for household,
family, and other personal expenditures arising from:
(a) Credit cards;
(b) Prearranged overdraft plans (report in Schedule HC-C, item 6(b)).
Line Item 7 Loans to foreign governments and
official institutions.
Report (in columns A and B when appropriate) all loans
(other than those secured by real estate), including
planned and unplanned overdrafts, to governments in
foreign countries, to their official institutions, and to
international and regional institutions. (See the Glossary
entry for ‘‘foreign governments and official institutions’’
for the definition of this term.)
Include bankers acceptances accepted by the subsidiary
banks of the reporting bank holding company and held in
their portfolio when the account party is a foreign
government or official institution, including such acceptances for the purpose of financing dollar exchange.
Exclude acceptances that are held in trading accounts.
Include loans to foreign governments, official institutions, and international and regional institutions (other
than those secured by real estate), including planned and
unplanned overdrafts.
Exclude the following from loans to foreign governments
and official institutions:
(1) Loans to nationalized banks and other banking institutions owned by foreign governments and not
functioning as central banks, banks of issue, or
development banks (report in item 2 above).
(2) Loans to U.S. branches and agencies of foreign
official banking institutions (report as a loan to a
commercial bank in the U.S. in item 2).
HC-C-11

Schedule HC-C

(3) Loans to foreign-government-owned nonbank corporations and enterprises (report in item 4 or 9, as
appropriate).
Line Item 8

Not applicable.

Line Item 9

All other loans.

receivable, and institutions whose functions are
predominantly to finance personal expenditures
(exclude loans to financial corporations whose sole
function is to borrow money and relend it to its
affiliated companies or a corporate joint venture in
which an affiliated company is a joint venturer).

Report in columns A and B, as appropriate, all loans that
cannot be properly classified in items 1 through 8 above.

(10) Loans to federally sponsored lending agencies (see
the Glossary entry for ‘‘federally sponsored lending
agency’’ for the definition of this term).

Include in this item the following:

(11) Loans to investment banks.

(1) Loans for purchasing and carrying securities (as
described below).
(2) Obligations (other than securities) of states and
political subdivisions in the U.S.
(3) Unplanned overdrafts of deposit accounts (except
overdrafts of depository institutions and foreign
governments and official institutions, which are to
be reported in items 2 and 7 above, respectively).
(4) Loans (other than those secured by real estate) to
nonprofit organizations (e.g., churches, hospitals,
educational and charitable institutions, clubs, and
similar associations) except those collateralized by
production payments where the proceeds ultimately
go to a commercial or industrial organization
(report in item 4).
(5) Loans to individuals for investment purposes (as
distinct from commercial, industrial, or professional purposes), other than those secured by real
estate.
(6) Loans (other than those secured by real estate) to
real estate investment trusts and to mortgage companies that specialize in mortgage loan originations
and warehousing or in mortgage loan servicing.
(Exclude outright purchases of mortgages or similar instruments by the bank holding company from
such companies, which are to be reported in item 1.)
(7) Loans to holding companies of depository institutions (other than subsidiary holding companies of
the reporting bank holding company).
(8) Loans to insurance companies.
(9) Loans to finance companies, mortgage finance companies, factors and other financial intermediaries,
short-term business credit institutions that extend
credit to finance inventories or carry accounts
HC-C-12

(12) Loans to other domestic and foreign financial intermediaries whose functions are predominantly the
extending of credit for business purposes, such as
investment companies that hold stock of operating companies for management or development
purposes.
(13) Loans to Small Business Investment Companies.
Exclude from all other loans the following:
(1) Loans to banks in foreign countries that act as
brokers and dealers in securities (report in item 2).
(2) Loans to depository institutions for the purpose of
purchasing or carrying securities (report in item 2).
(3) Transactions reportable in Schedule HC, item 3,
‘‘Federal funds sold and securities purchased under
agreements to resell.’’
(4) Loans secured by real estate (report in item 1).
(5) Extensions of credit initially made in the form of
planned or ‘‘advance agreement’’ overdrafts other
than those made to borrowers of the types whose
obligations are specifically reportable in this item
(report in other items, as appropriate). For example,
report advances to banks in foreign countries in
the form of ‘‘advance agreement’’ overdrafts as loans
to banks in foreign countries in item 2 and overdrafts
under consumer credit card and check–credit plans as
loans to individuals in item 6. Report both planned
and unplanned overdrafts from ‘‘due to’’ deposit
accounts of depository institutions in item 2.
Loans for purchasing or carrying securities include the
following:
(1) All loans to brokers and dealers in securities (other
than those secured by real estate and those to depository institutions).
Schedule HC-C

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Schedule HC-C

(2) All loans, whether secured (other than by real estate)
or unsecured, to any other borrower for the purpose
of purchasing or carrying securities (debt or equity),
such as the following:
(a) Loans made to provide funds to pay for the
purchase of securities at settlement date.
(b) Loans made to provide funds to repay indebtedness incurred in purchasing securities.
(c) Loans that represent the renewal of loans to
purchase or carry securities.
(d) Loans to investment companies (other than Small
Business Investment Companies) and mutual
funds.
(e) Loans to ‘‘plan lenders’’ as defined in Section
221.4(a) of Federal Reserve Regulation U and to
ESOPs.
(f) Loans to lenders other than brokers, dealers, and
banks whose principal business is to extend
credit for the purpose of purchasing or carrying
securities.
Obligations (other than securities) of states and political
subdivisions in the U.S. include obligations of states and
political subdivisions in the United States (including
those secured by real estate), other than those obligations
reported as securities issued by such entities in Schedule HC-B, item 3, ‘‘Securities issued by states and
political subdivisions in the U.S.’’ Exclude all such
obligations held in trading accounts.
States and political subdivisions in the U.S. include the
following:
(1) the fifty states of the United States and the District of
Columbia and their counties, municipalities, school
districts, irrigation districts, and drainage and sewer
districts; and
(2) the governments of Puerto Rico and of the U.S.
territories and possessions and their political
subdivisions.
Treatment of industrial development bonds (IDBs).
Industrial development bonds (IDBs), sometimes referred
to as ‘‘industrial revenue bonds,’’ are typically issued by
local industrial development authorities to benefit private
commercial and industrial development. For purposes of
this report, all IDBs should be reported as securities
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March 2007

issued by states and political subdivisions in the U.S. in
Schedule HC-B, item 3, or as loans in this item, consistent with the asset category in which the bank holding
company reports IDBs on its balance sheet for other
financial reporting purposes. Regardless of whether they
are reported as securities in Schedule HC-B or as loans in
Schedule HC-C, all IDBs that meet the definition of a
‘‘security’’ in FASB Statement No. 115 must be measured in accordance with Statement No. 115.
Treatment of other obligations of states and political
subdivisions in the U.S. In addition to those IDBs that are
reported in this item in accordance with the preceding
paragraph, also include in this item all obligations (other
than securities) of states and political subdivisions in the
U.S., except those that meet any of the following criteria:
(1) Industrial development bonds (IDBs) that are reported
as securities in accordance with the reporting treatment described above (report as securities in Schedule HC, item 2, and Schedule HC-B, item 3).
(2) Notes, bonds, and debentures (including tax warrants
and tax-anticipation notes) that are rated by a nationally recognized rating service (report as securities in
Schedule HC, item 2, and Schedule HC-B, item 3).
(3) Mortgage-backed securities issued by state and local
housing authorities (report as securities in Schedule HC, item 2, and Schedule HC-B, item 3).
(4) Obligations of state and local governments that are
guaranteed by the U.S. government (report as securities in Schedule HC, item 2, and Schedule HC-B,
item 3).
(5) Nonrated obligations of states and political subdivisions in the U.S. that the bank holding company
considers securities for other financial reporting purposes (report as securities in Schedule HC, item 2,
and Schedule HC-B, item 3).
(6) Lease financing receivables of states and political
subdivisions in the U.S. (report as leases in item 10
below).
(7) Obligations of states and political subdivisions in the
U.S. held by the reporting bank holding company in
trading accounts (report in Schedule HC, item 5).
Line Item 9(a) Loans for purchasing or carrying
securities (secured or unsecured).
Report in columns A and B, as appropriate, all loans for
purchasing or carrying securities (secured or unsecured)
as described above.
HC-C-13

Schedule HC-C

Line Item 9(b)

All other loans.

Report in columns A and B, as appropriate, all other
loans as described above.
Line Item 10 Lease financing receivables (net of
unearned income).
Report all outstanding balances relating to direct financing and leveraged leases on property acquired by the
bank holding company for leasing purposes. Report the
total amount of these leases in domestic offices in column
B and a breakdown of these leases for the fully consolidated bank holding company between leases to individuals for household, family, and other personal expenditures and all other leases. These balances should include
the estimated residual value of leased property and must
be net of unearned income. For further discussion of
leases where the bank holding company is the lessor,
refer to the Glossary entry for “lease accounting.”
Include all leases to states and political subdivisions in
the U.S. in this item.
Line Item 10(a) Leases to individuals for
household, family, and other personal expenditures.
Report in column A all outstanding balances relating to
direct financing and leveraged leases on property acquired by the fully consolidated bank holding company
for leasing to individuals for household, family, and other
personal expenditures (i.e., consumer leases). For further
information on extending credit to individuals for consumer purposes, refer to the instructions for Schedule
HC-C, item 6(c), “Other consumer loans.”
Line Item 10(b)

All other leases.

Report in column A all outstanding balances relating to
all other direct financing and leveraged leases on property acquired by the fully consolidated bank holding
company for leasing to lessees other than for household,
family, and other personal expenditure purposes.
Line Item 11 LESS: Any unearned income on
loans reflected in items 1–9 above.
To the extent possible, report the specific loan categories
net of unearned income. A reporting bank holding company should enter in columns A and B of this item, as
appropriate, unearned income only to the extent that it is
included in (i.e., not deducted from) the various loan
items (items 1 through 9) of this schedule. If a consoliHC-C-14

dated bank holding company reports each loan item net
of unearned income, enter a zero. Report the amount
as an absolute value; do not enclose the amount in
parentheses or use a minus (−) sign.
Do not include unearned income on lease financing
receivables in this item (deduct from item 10).
Line Item 12 Total loans and leases, net of
unearned income.
Report in columns A and B, as appropriate, the sum of
items 1 through 10 less the amount reported in item 11.
The total of column A must equal Schedule HC, sum of
items 4(a) and 4(b).

Memoranda
Line Item M1 Loans and leases restructured and
in compliance with modified terms (included in
Schedule HC-C, above and not reported as past due
or nonaccrual in Schedule HC-N, Memorandum
item 1) (exclude loans secured by 1–4 family
residential properties and loans to individuals for
household, family, and other personal expenditures).
For purposes of this item, restructured loans and leases
are those loans and leases whose terms have been
modified, because of a deterioration in the financial
condition of the borrower, to provide for a reduction of
either interest or principal, regardless of whether such
loans and leases are secured or unsecured, regardless of
whether such credits are guaranteed by the government
or others, and (except as noted in the following paragraph) regardless of the effective interest rate on such
credits. However, exclude from this item all restructured
loans secured by 1-to-4 family residential properties and
all restructured loans to individuals for household, family, and other personal expenditures.
Once an obligation has been restructured because of such
credit problems, it continues to be considered restructured until paid in full. However, a restructured obligation that is in compliance with its modified terms and
yields a market rate (i.e., the recorded amount of the
obligation bears an effective interest rate that at the time
of the restructuring is greater than or equal to the rate that
the institution is willing to accept for a new extension of
credit with comparable risk) need not continue to be
reported as a troubled debt restructuring in this Memorandum item in the calendar years after the year in which the
restructuring took place. A loan extended or renewed at a
Schedule HC-C

FR Y-9C
March 2007

Schedule HC-C

stated interest rate equal to the current interest rate for
new debt with similar risk is not considered a restructured loan. Also a loan to a purchaser of ‘‘other real estate
owned’’ by the reporting institution for the purpose of
facilitating the disposal of such real estate is not considered a restructured loan. For further information, see the
Glossary entry for ‘‘troubled debt restructuring.’’

Exclude from this item all loans secured by real estate
that are reported in Schedule HC-C, item 1, above. Also
exclude loans to commercial and industrial firms where
the sole purpose for the loan is to construct a factory or
office building to house the company’s operations or
employees.

Include in this item all restructured loans and leases as
defined above that are in compliance with their modified
terms, that is, restructured loans and leases (1) on which
no contractual payments of principal or interest scheduled under that modified repayment terms are due and
unpaid or (2) on which contractual payments of both
principal and interest scheduled under the modified
repayment terms are less than 30 days past due.

Line Item M3 Loans secured by real estate
to non-U.S. addressees (domicile) (included
in Schedule HC-C, item 1, column A)

Exclude from this item (1) those restructured loans and
leases on which under the modified repayment terms
either principal or interest is 30 days or more past due
(report in Schedule HC-N, column A or B, as appropriate) and (2) those restructured loans and leases that are in
nonaccrual status under the modified repayment terms
(report in Schedule HC-N, column C).
Loan amounts should be reported net of unearned income
to the extent that they are reported net of unearned
income in Schedule HC-C above. All lease amounts must
be reported net of unearned income.
Line Item M2 Loans to finance commercial
real estate, construction, and land development
activities (not secured by real estate) included
in Schedule HC-C, items 4 and 9 above.
Report in this item loans to finance commercial and
residential real estate activities, e.g., acquiring, developing and renovating commercial and residential real
estate, that are reported in Schedule HC-C, item 4,
‘‘Commercial and industrial loans,’’ and item 9, ‘‘All
other loans,’’ column A.
Such loans generally may include:
(1) loans made for the express purpose of financing real
estate ventures as evidenced by loan documentation
or other circumstances connected with the loan; or
(2) loans made to organizations or individuals 80 percent
of whose revenue or assets are derived from or
consist of real estate ventures or holdings.
FR Y-9C
Schedule HC-C

March 2007

Report the amount of loans secured by real estate to
non-U.S. addressees included in Schedule HC-C, item 1.
For a detailed discussion of U.S. and non-U.S. addressees, see the Glossary entry for ‘‘domicile.’’
Line Item M4 Outstanding credit card fees and
finance charges.
This item is to be completed by (1) bank holding companies that, together with affiliated institutions, have outstanding credit card receivables that exceed $500 million
as of the report date or (2) bank holding companies that
on a consolidated basis are credit card specialty holding
companies.
Outstanding credit card receivables are the sum of:
(a) Schedule HC-C, item 6(a), column A;
(b) Schedule HC-S, item 1, column C; and
(c) Schedule HC-S, item 6(a), column C.
Credit card specialty bank holding companies are defined
as those bank holding companies that on a consolidated
basis exceed 50 percent for the following two criteria:
(a) the sum of credit card loans (Schedule HC-C,
item 6(a), column A) plus securitized and sold
credit card receivables (Schedule HC-S, item 1,
column C) divided by the sum of total loans
(Schedule HC-C, item 12, column A) plus securitized and sold credit card receivables (Schedule
HC-S, item 1, column C); and
(b) the sum of total loans (Schedule HC-C, item 12,
column A) plus securitized and sold credit card
receivables (Schedule HC-S, item 1, column C)
divided by the sum of total assets (Schedule HC,
item 12) plus securitized and sold credit card
receivables (Schedule HC-S, item 1, column C).
HC-C-15

Schedule HC-C

Report the amount of fees and finance charges included
in the amount of credit card receivables reported in
Schedule HC-C, item 6(a), column A.
Line Item M5 Purchased impaired loans held for
investment accounted for in accordance with AICPA
Statement of Position 03-3.
Memoranda items 5(a) and 5(b) are to be completed by
all bank holding companies.
Report in the appropriate subitem the outstanding balance and carrying amount of ‘‘purchased impaired loans’’
reported as held for investment in Schedule HC-C, items
1 through 9, and accounted for in accordance with
AICPA Statement of Position 03-3. Purchased impaired
loans are loans that a bank holding company has purchased, including those acquired in a purchase business
combination, where there is evidence of deterioration of
credit quality since the origination of the loan and it is
probable, at the purchase date, that the bank holding
company will be unable to collect all contractually
required payments receivable. Loans held for investment
are those that the bank holding company has the intent
and ability to hold for the foreseeable future or until
maturity or payoff.
Line Item M5(a)

Outstanding balance.

Report the outstanding balance of all purchased impaired
loans reported as held for investment in Schedule HC-C,
items 1 through 9. The outstanding balance is the undiscounted sum of all amounts, including amounts deemed
principal, interest, fees, penalties, and other under the
loan, owed to the bank holding company at the report
date, whether or not currently due and whether or not any
such amounts have been charged off. However, the
outstanding balance does not include amounts that would
be accrued under the contract as interest, fees, penalties,
and other after the report date.
Line Item M5(b) Carrying amount included in
Schedule HC-C, items 1 through 9.
Report the carrying amount (before any allowances
established after acquisition for decreases in cash flows
expected to be collected) of, i.e., the recorded investment
in, all purchased impaired loans reported as held for
investment. The recorded investment in these loans will
have been included in Schedule HC-C, items 1 through 9.
HC-C-16

Line Item 6 Closed-end loans with negative
amortization features secured by 1-4 family
residential properties in domestic offices.
Report in the appropriate subitem the carrying amount of
closed-end loans with negative amortization features
secured by 1-4 family residential properties and, if
certain criteria are met, the maximum remaining amount
of negative amortization contractually permitted on these
loans and the total amount of negative amortization
included in the carrying amount of these loans. Negative
amortization refers to a method in which a loan is
structured so that the borrower’s minimum monthly (or
other periodic) payment is contractually permitted to be
less than the full amount of interest owed to the lender,
with the unpaid interest added to the loan’s principal
balance. The contractual terms of the loan provide that if
the borrower allows the principal balance to rise to a
pre-specified amount or maximum cap, the loan payments are then recast to a fully amortizing schedule.
Negative amortization features may be applied to either
adjustable rate mortgages or fixed rate mortgages, the
latter commonly referred to as graduated payment mortgages (GPMs).
Line Item 6(a) Total carrying amount of
closed-end loans with negative amortization features
secured by 1-4 family residential properties
(included in Schedule HC-C, items 1.c.(2)(a) and
(b)).
This item is to be completed by all bank holding
companies.
Report the total carrying amount (before any loan loss
allowances) of, i.e., the recorded investment in, closedend loans secured by 1-4 family residential properties
whose terms allow for negative amortization. The carrying amounts included in this item will also have been
reported in Schedule HC-C, items 1(c)(2)(a) and (b).
Memorandum items 6(b) and 6(c) are to be completed
by bank holding companies that had closed-end loans
with negative amortization features secured by 1-4
family residential properties (included in Schedule
HC-C, items 1(c)(2)(a) and (b)) as of the previous
December 31 report date, with a carrying amount
(before any loan loss allowances) that exceeds the lesser
of $100 million or 5 percent of total loans and leases,
net of unearned income, in domestic offices (as reported
Schedule HC-C

FR Y-9C
March 2007

Schedule HC-C

in Schedule HC-C item 12, column B), as of the
previous December 31 report date.
Line Item 6(b) Total maximum remaining amount
of negative amortization contractually permitted on
closed-end loans secured by 1-4 family residential
properties.
For all closed-end loans secured by 1-4 family residential
properties whose terms allow for negative amortization
(that were reported in Schedule HC-C, Memorandum
item 6(a), report the total maximum remaining amount of
negative amortization permitted under the terms of the
loan contract (i.e., the maximum loan principal balance
permitted under the negative amortization cap less the
principal balance of the loan as of the quarter-end report
date).
Line Item 6(c) Total amount of negative
amortization on closed-end loans secured by 1-4
family residential properties included in the
carrying amount reported in Memorandum item
6(a) above.
For all closed-end loans secured by 1-4 family residential
properties whose terms allow for negative amortization,
report the total amount of negative amortization included
in the carrying amount (i.e., the total amount of interest
added to the original loan principal balance that has not
yet been repaid) reported in Schedule HC-C, Memorandum item 6(a) above. Once a loan reaches its maximum
principal balance, the amount of negative amortization
included in the carrying amount should continue to be
reported until the principal balance of the loan has been
reduced through cash payments below the original principal balance of the loan.

The term “1-4 family residential properties” is defined in
Schedule HC-C, item 1(c). “1-4 family residential construction loans” include:
• Construction loans to developers secured by tracts of
land on which 1-4 family residential properties, including townhouses, are being constructed.
• Construction loans secured by individual parcels of
land on which single 1-4 family residential properties
are being constructed.
• Construction loans secured by single-family dwelling
units in detached or semidetached structures, including
manufactured housing.
• Construction loans secured by duplex units and townhouses, excluding garden apartment projects where the
total number of units that will secure the permanent
mortgage is greater than four.
• Combination land and construction loans on 1-4 family
residential properties, regardless of the current stage of
construction or development.
• Combination construction-permanent loans on 1-4 family residential properties until construction is completed or principal amortization payments begin, whichever comes first.
• Bridge loans to developers on 1-4 family residential
properties where the buyer will not assume the same
loan, even if construction is completed or principal
amortization payments have begun.
Line Item M7(b) Other construction loans and all
land development and other land loans.

Report in the appropriate subitem all construction, land
development, and other land loans (in domestic offices).
The sum of Memorandum items 7(a) and 7(b) must equal
Schedule HC-C, item 1(a).

Report the amount of all construction loans for purposes
other than constructing 1-4 family residential properties,
all land development loans, and all other land loans (in
domestic offices) included in Schedule HC-C, item 1(a).
Include loans for the development of building lots and
loans secured by vacant land, unless the same loan
finances the construction of 1-4 family residential properties on the property.

Line Item M7(a) 1-4 family residential
construction loans.

Line Item 8 Loans secured by nonfarm
nonresidential properties.

Report the amount of 1-4 family residential construction
loans (in domestic offices) included in Schedule HC-C,
item 1(a), i.e., loans for the purpose of constructing 1-4
family residential properties, which will secure the loan.

Report in the appropriate subitem all loans secured by
nonfarm nonresidential properties (in domestic offices).
The sum of Memorandum items 8(a) and 8(b) must equal
Schedule HC-C, item 1(e).

Line Item M7 Construction, land development,
and other land loans.

FR Y-9C
Schedule HC-C

March 2007

HC-C-17

Schedule HC-C

For purposes of reporting loans in Memorandum items
8(a) and 8(b), the determination as to whether a nonfarm
nonresidential property is considered “owner-occupied”
should be made upon acquisition (origination or purchase) of the loan. However, for purposes of determining
whether existing nonfarm nonresidential real estate loans
should be reported as “owner-occupied”, the bank holding company may consider the source of repayment
either when the loan was acquired or based on the most
recent available information. Once a bank holding company determines whether a loan should be reported as
“owner-occupied” or not, this determination need not be
reviewed thereafter.
Line Item 8(a) Loans secured by owner-occupied
nonfarm nonresidential properties.
Report the amount of loans secured by owner-occupied
nonfarm nonresidential properties (in domestic offices)
included in Schedule HC-C, item 1(e).
‘‘Loans secured by owner-occupied nonfarm nonresidential properties’’ are those nonfarm nonresidential property loans for which the primary source of repayment is
the cash flow from the ongoing operations and activities
conducted by the party, or an affiliate of the party, who
owns the property. Thus, for loans secured by owneroccupied nonfarm nonresidential properties, the primary
source of repayment is not derived from third party,
nonaffiliated, rental income associated with the property
(i.e., any such rental income is less than 50 percent of the

HC-C-18

source of repayment) or the proceeds of the sale, refinancing, or permanent financing of the property. Include
loans secured by hospitals, golf courses, recreational
facilities, and car washes unless the property is owned by
an investor who leases the property to the operator who,
in turn, is not related to or affiliated with the investor (in
which case, the loan should be reported in Memorandum
item 8(b) below). Also include loans secured by churches
unless the property is owned by an investor who leases
the property to the congregation (in which case, the loan
should be reported in Memorandum item 8(b) below).
Line Item 8(b) Loans secured by other nonfarm
nonresidential properties.
Report the amount of loans (in domestic offices) included
in Schedule HC-C, item 1(e), that are not secured by
owner-occupied nonfarm nonresidential properties.
‘‘Loans secured by other nonfarm nonresidential properties’’ are those nonfarm nonresidential property loans
where the primary source of repayment is derived from
rental income associated with the property (i.e., loans for
which 50 percent or more of the source of repayment
comes from third party, nonaffiliated, rental income) or
the proceeds of the sale, refinancing, or permanent
financing of the property. Include loans secured by
hotels, motels, dormitories, nursing homes, assistedliving facilities, mini-storage warehouse facilities, and
similar properties in this item as loans secured by other
nonfarm nonresidential properties.

Schedule HC-C

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Trading Assets and Liabilities
Schedule HC-D

General Instructions
Schedule HC-D is to be completed by bank holding
companies that have reported average trading assets
(Schedule HC-K, item 4(a)) of $2 million or more for
any quarter of the preceding calendar year.
Bank holding companies that (a) regularly underwrite
or deal in securities, interest rate contracts, foreign
exchange rate contracts, other off-balance-sheet commodity, equity and credit derivative contracts, other financial
instruments, and other assets for resale (or repurchase),
(b) acquire or take positions in such items principally for
the purpose of selling in the near term or otherwise with
the intent to resell (or repurchase) in order to profit from
short-term price movements, or (c) acquire or take positions in such items as an accommodation to customers or
for other trading purposes shall report in this schedule the
value of such items or positions on the report date.
Assets, liabilities, and other financial instruments held for
trading shall be generally valued at fair value.
Do not include in this schedule the carrying value of any
available-for-sale securities or of any loans or leases that
are held for sale. Available-for-sale securities are generally reported in Schedule HC, item 2(b), and in Schedule HC-B, columns C and D. However, a bank holding
company may have certain assets that fall within the
definition of ‘‘securities’’ in FASB Statement No. 115
(i.e., nonrated industrial development obligations) that
the bank has designated as ‘‘available-for-sale’’ which
are reported for purposes of the FR Y-9C in a balance
sheet category other than ‘‘Securities’’ (i.e., ‘‘loans and
lease financing receivables’’). Loans and leases held for
sale should be reported separately in Schedule HC,
item 4(a), and in Schedule HC-C.
Line Item 1
offices).

U.S. Treasury securities (in domestic

Report the fair value of securities issued by the U.S.
Treasury (as defined for Schedule HC-B, item 1, ‘‘U.S.
FR Y-9C
Schedule HC-D

March 2007

Treasury securities’’) held for trading (in domestic
offices).
Line Item 2 U.S. government agency obligations in
domestic offices (excluding mortgage-backed
securities).
Report the fair value of all obligations of U.S. government agencies (as defined for Schedule HC-B,
item 2, ‘‘U.S. government agency obligations, excluding
mortgage-backed securities’’) held for trading (in domestic offices).
Line Item 3 Securities issued by states and
political subdivisions in the U.S. in domestic
offices.
Report the fair value of all securities issued by states and
political subdivisions in the United States (as defined for
Schedule HC-B, item 3, ‘‘Securities issued by states and
political subdivisions in the U.S.’’) held for trading (in
domestic offices).
Line Item 4 Mortgage-backed securities in
domestic offices.
Report in the appropriate subitem the fair value of all
mortgage-backed securities held for trading (in domestic
offices).
Line item 4(a) Pass-through securities issued or
guaranteed by FNMA, FHLMC, or GNMA.
Report the fair value of all pass-through securities issued
or guaranteed by FNMA, FHLMC, or GNMA (as defined
for Schedule HC-B, item 4(a)(1), Pass-through securities
‘‘Guaranteed by GNMA,’’ and item 4(a)(2), Pass-through
securities ‘‘Issued by FNMA and FHLMC’’) held for
trading (in domestic offices).
HC-D-1

Schedule HC-D

Line item 4(b) Other mortgage-backed securities
issued or guaranteed by FNMA, FHLMC, or
GNMA.
Report the fair value of all other mortgage-backed securities issued by FNMA, FHLMC, or GNMA (as defined
for Schedule HC-B, item 4(b)(1), ‘‘Other mortgagebacked securities issued or guaranteed by FNMA,
FHLMC, or GNMA’’) held for trading (in domestic
offices). Include CMOs, REMICs, and stripped MBS.
Line item 4(c)
securities.

All other mortgage-backed

Report the fair value of all other mortgage-backed
securities (as defined for Schedule HC-B, item 4(a)(3),
‘‘Other pass-through securities,’’ and items 4(b)(2), ‘‘Collateralized by MBS issued or guaranteed by FNMA,
FHLMC, or GNMA,’’ and 4(b)(3), ‘‘All other mortgagebacked securities’’) held for trading (in domestic offices).
Line item 5
offices.

Other debt securities in domestic

Report the fair value of all other debt securities (as
generally defined for Schedule HC-B, item 6, ‘‘Other
debt securities’’) held for trading (in domestic offices).
However, for purposes of this reporting item, any CMOs,
REMICs, CMO and REMIC residuals and stripped
mortgage-backed securities issued by non-U.S. government issuers should be reported in item 4(c) above.
Line items 6–8
Line item 9
offices.

Not applicable.

Other trading assets in domestic

Report the fair value of all trading assets (in domestic offices) that cannot properly be reported in items 1
through 5. Certificates of deposit and bankers acceptances held for trading (in domestic offices) should be
included in this line item (see the Glossary entries for
‘‘deposits’’ and ‘‘bankers acceptances’’ for the definitions
of these terms). Exclude revaluation gains on interest
rate, foreign exchange rate, commodity, equity, and credit
derivative contracts (in domestic offices) (report in
item 11(a) below).
Line item 10

Trading assets in foreign offices.

Report the fair value of all assets held for trading in
foreign offices. Exclude revaluation gains on interest rate,
foreign exchange rate, commodity, equity, and credit
HC-D-2

derivative contracts in foreign offices (report in item 11(b)
below).
Line item 11

Derivatives with a positive fair value.

Report the amount of revaluation gains (i.e., assets) from
the ‘‘marking to market’’ of interest rate, foreign exchange
rate, commodity, equity, and credit derivative contracts
held for trading purposes. Revaluation gains and losses
(i.e., assets and liabilities) from the ‘‘marking to market’’
of the reporting bank holding company’s interest rate,
foreign exchange rate, commodity, equity, and credit
derivative contracts executed with the same counterparty
that meet the criteria for a valid right of setoff contained
in FASB Interpretation No. 39 (i.e., those contracts
subject to a qualifying master netting agreement) may be
reported on a net basis using this item and item 14 below,
as appropriate. (For further information, see the Glossary
entry for ‘‘offsetting.’’)
Line item 11(a)

In domestic offices.

Report the amount of revaluation gains (i.e., assets) from
the ‘‘marking to market’’ of interest rate, foreign exchange
rate, commodity, equity, and credit derivative contracts
held for trading purposes in domestic offices. To the
extent that the bank holding company performs its
‘‘marking to market’’ of these contracts on a consolidated
basis and nets the resulting revaluation gains and losses
(i.e., assets and liabilities) for other financial reporting
purposes as described in the instruction to item 11 above,
but cannot readily determine separate asset amounts for
its domestic offices and for its foreign offices, the asset
amounts reported in this item may include revaluation
gains and losses on contracts with the same counterparty
in both domestic and foreign offices.
Line item 11(b)

In foreign offices.

Report the amount of revaluation gains (i.e., assets) from
the ‘‘marking to market’’ of interest rate, foreign exchange
rate, commodity, equity, and credit derivative contracts
held for trading purposes in foreign offices.
Line item 12

Total trading assets.

Report the sum of items 1 through 11. This amount must
equal Schedule HC, item 5, ‘‘Trading assets.’’
Line item 13

Liability for short positions.

Report the fair value amount of the reporting bank
holding company’s liabilities resulting from sales of
Schedule HC-D

FR Y-9C
March 2007

Schedule HC-D

assets that the reporting bank holding company does not
own (see the Glossary entry for ‘‘short position’’).
Line item 14
value.

Derivatives with a negative fair

Report the amount of revaluation losses (i.e., liabilities)
from the ‘‘marking to market’’ of interest rate, foreign
exchange rate, commodity, equity, and credit derivative
contracts held for trading purposes. Revaluation gains
and losses (i.e., assets and liabilities) from the ‘‘marking
to market’’ of the reporting bank holding company’s

FR Y-9C
Schedule HC-D

March 2007

interest rate, foreign exchange rate, commodity, equity,
and credit derivative contracts executed with the same
counterparty that meet the criteria for a valid right of
setoff contained in FASB Interpretation No. 39 (i.e.,
those contracts subject to a qualifying master netting
agreement) may be reported on a net basis using this item
and item 11 above, as appropriate. (For further information, see the Glossary entry for ‘‘offsetting.’’)
Line item 15

Total liabilities.

Report the sum of items 13 and 14. This amount must
equal Schedule HC, item 15, ‘‘Trading liabilities.’’

HC-D-3

LINE ITEM INSTRUCTIONS FOR

Deposit Liabilities
Schedule HC-E

General Instructions

(7) pass-through reserve balances;

A complete discussion of deposits is included in the
Glossary entry entitled ‘‘deposits.’’ That discussion
addresses the following topics and types of deposits in
detail:

(8) placements and takings; and

(1) FDI Act definition of deposits;
(2) demand deposits;

(9) reciprocal balances.
NOTE: For purposes of this report, IBFs of subsidiary
depository institutions of the reporting bank holding
company are to be treated as foreign offices and their
deposit liabilities should be excluded from this schedule.

(3) savings deposits;
(4) time deposits;
(5) time certificates of deposit;
(6) time deposits, open account;
(7) transaction accounts;
(8) nontransaction accounts;
(9) NOW accounts;
(10) ATS accounts;
(11) telephone or preauthorized transfer accounts;

Definitions
The term ‘‘deposits’’ is defined in the Glossary and
follows the definition of deposits used in the Federal
Deposit Insurance Act. Reciprocal demand deposits
between the domestic offices of the reporting bank
holding company and the domestic offices of other
depository institutions that are not consolidated on this
report may be reported net when permitted by generally
accepted accounting principles (GAAP). (See the Glossary entry for ‘‘reciprocal balances.’’)

(12) money market deposit accounts (MMDAs);

The following are not reported as deposits:

(13) interest-bearing accounts; and

(1) Deposits received in one office of a depository
institution for deposit in another office of the same
depository institution.

(14) noninterest-bearing accounts.
Additional discussions pertaining to deposits are also
found under separate Glossary entries for the following:
(1) borrowings and deposits in foreign offices;
(2) brokered deposits;
(3) dealer reserve accounts;
(4) hypothecated deposits;
(5) letters of credit (for letters of credit sold for cash and
travelers’ letters of credit);
(6) overdrafts;
FR Y-9C
Schedule HC-E

March 2007

(2) Outstanding drafts (including advices or authorizations to charge the depository institution’s balance in
another depository institution) drawn in the regular
course of business by the reporting depository institution on other depository institutions, including
so-called ‘‘suspense depository accounts’’ (report as
a deduction from the related ‘‘due from’’ account).
(3) Trust funds held in the bank’s own trust department
that the bank keeps segregated and apart from its
general assets and does not use in the conduct of its
business.
HC-E-1

Schedule HC-E

(4) Deposits accumulated for the payment of personal
loans (i.e., hypothecated deposits), which should be
netted against loans in Schedule HC-C, Loans and
Lease Financing Receivables.
(5) All obligations arising from assets sold under agreements to repurchase.
(6) Overdrafts in deposit accounts. Overdrafts are to be
reported as loans in Schedule HC-C, and not as
negative deposits. Overdrafts in a single type of
related transaction accounts (e.g., related demand
deposits or related NOW accounts, but not a combination of demand deposit accounts and NOW
accounts) of a single legal entity that are established
under a bona fide cash management arrangement
by this legal entity are not to be classified as loans
unless there is a net overdraft position in the accounts
taken as a whole. Such accounts are regarded as, and
function as, one account rather than as multiple
separate accounts.
(7) Time deposits sold (issued) by a subsidiary bank of
the consolidated bank holding company that have
been purchased subsequently by a holding company
subsidiary in the secondary market (typically as a
result of the holding company’s trading activities)
and have not resold as of the report date. For
purposes of these reports, a holding company (or its
subsidiaries) that purchases a time deposit a subsidiary has issued is regarded as having paid the time
deposit prior to maturity. The effect of the transaction
is that the consolidated bank holding company has
cancelled a liability as opposed to having acquired an
asset for its portfolio.
The following are reported as deposits:
(1) Deposits of trust funds standing to the credit of other
banks and all trust funds held or deposited in any
department of a subsidiary depository institution of
the reporting bank holding company other than the
trust department.
(2) Escrow funds.
(3) Payments collected by a depository institution subsidiary on loans secured by real estate and other loans
serviced for others that have not yet been remitted to
the owners of the loans.
(4) Credit balances resulting from customers’ overpayments of account balances on credit cards and related
plans.
HC-E-2

(5) Funds received or held in connection with checks or
drafts drawn by a subsidiary depository institution of
the reporting bank holding company and drawn on,
or payable at or through, another depository institution either on a zero-balance account or on an
account that is not routinely maintained with sufficient balances to cover checks drawn in the normal
course of business (including accounts where funds
are remitted by a subsidiary depository institution of
the reporting bank holding company only when it has
been advised that the checks or drafts have been
presented).
(6) Funds received or held in connection with traveler’s
checks and money orders sold (but not drawn) by a
subsidiary depository institution of the reporting
bank holding company, until the proceeds of the sale
are remitted to another party, and funds received or
held in connection with other such checks used (but
not drawn) by a subsidiary depository institution of
the reporting bank holding company, until the amount
of the checks is remitted to another party.
(7) Checks drawn by a subsidiary depository institution
of the reporting bank holding company on, or payable at or through, a Federal Reserve Bank or a
Federal Home Loan Bank.
(8) Refundable loan commitment fees received or held
by a subsidiary depository institution of the reporting
bank holding company prior to loan closing.
(9) Refundable stock subscription payments received or
held by the reporting bank holding company prior to
the issuance of the stock. (Report nonrefundable
stock subscription payments in Schedule HC-G, item
4, ‘‘Other’’ liabilities.)
In addition, the gross amount of debit items (‘‘throwouts,’’ ‘‘bookkeepers’ cutbacks,’’ or ‘‘rejects’’) that cannot be posted to the individual deposit accounts without
creating overdrafts or for some other reason, but which
have been charged to the control accounts of the various
deposit categories on the general ledger, should be credited to (added back to) the appropriate deposit control
totals and reported in Schedule HC, item 11, ‘‘Other
assets.’’
Line Item 1 Deposits held in domestic offices of
commercial bank subsidiaries of the reporting bank
holding company.
Report in items 1(a) through 1(e) below deposits held
in domestic offices of the commercial bank subsidiaries
Schedule HC-E

FR Y-9C
March 2007

Schedule HC-E

of the reporting bank holding company that are consolidated by the holding company on this report.
For purposes of this item, commercial bank subsidiaries
cover all banks that file the commercial bank Consolidated Reports of Condition and Income (FFIEC 031,
041). See the Glossary entry for ‘‘Domestic Office’’ for
the definition of this term.
If the reporting bank holding company consolidates a
subsidiary foreign bank on this report, items 1(a) through
1(e) must also include deposits held in the U.S. offices of
such foreign bank subsidiaries.
Line Item 1(a)

Demand deposits.

Report all demand deposits, including any matured time
deposits that have not automatically been renewed, as
defined in the Glossary entry for ‘‘deposits.’’
Include the following:
(1) Noninterest-bearing deposits that are payable immediately on demand or issued with an original maturity
of less than seven days, or that are payable with less
than seven days notice, or for which the bank subsidiary does not reserve the right to require at least
seven days written notice of an intended withdrawal.
(2) Unpaid depositors’ checks that have been certified.
(3) Cashiers’ checks, money orders, or other officers’
checks issued for any purpose including those issued
in payment for services, dividends, or purchases that
are drawn on a consolidated bank subsidiary of the
reporting bank holding company by any of its duly
authorized officers and that are outstanding on the
report date.
(4) Outstanding travelers’ checks, travelers’ letters of
credit, or other letters of credit (less any outstandingdrafts accepted thereunder) sold for cash or its
equivalent by the consolidated bank holding company organization or its agents.
(5) Outstanding drafts and bills of exchange accepted by
the consolidated bank holding company organization
or its agents for money or its equivalent, including
drafts accepted against a letter of credit issued for
money or its equivalent.
(6) Checks or drafts drawn by, or on behalf of, a
non-U.S. office of a subsidiary bank of the reporting
bank holding company on an account maintained at a
FR Y-9C
Schedule HC-E

March 2007

U.S. office of the bank subsidiary. Such drafts are, for
the Consolidated Financial Statements for Bank
Holding Companies, the same as officers’ checks.
This would include ‘‘London checks,’’ ‘‘Eurodollar
bills payable checks,’’ and any other credit items that
the domestic bank issues in connection with such
transactions.
Line Item 1(b)
accounts.

NOW, ATS, and other transaction

Report in this item all accounts subject to negotiable
orders of withdrawal (i.e., NOW accounts), all ATS
accounts (that is, accounts subject to automatic transfer
from savings accounts), and all other transaction accounts,
excluding demand deposits.
Other transaction accounts include the following:
(1) Accounts (other than MMDAs) that permit third
party payments through automated teller machines
(ATMs) or remote service units (RSUs).
(2) Accounts (other than MMDAs) that permit third
party payments through the use of checks, drafts,
negotiable instruments, debit cards, or other similar
items.
(3) Accounts (other than MMDAs) if more than six of
the following transactions per calendar month are
permitted to be made by telephone or preauthorized
order or instruction:
(a) payments or transfers to third parties;
(b) transfers to another account of the depositor at
the same institution; and
(c) transfers to an account at another depository
institution.
Line Item 1(c) Money market deposit accounts
and other savings accounts.
Report in this item all savings deposits held in the
subsidiary commercial banks consolidated in this report
by the reporting bank holding company, other than NOW
accounts, ATS accounts, or other transaction accounts
that are in the form of savings deposits.
Include the following in this item:
(1) Money market deposit accounts (MMDAs).
HC-E-3

Schedule HC-E

(2) Savings deposits subject to telephone and preauthorized transfers where the depositor is not permitted or
authorized to make more than six withdrawals per
month for purposes of transferring funds to another
account or for making a payment to a third party
by means of preauthorized or telephone agreement,
order, or instruction.
(3) Savings deposits subject to no more than six transfers
per month for purposes of covering overdrafts (i.e.,
overdraft protection plan accounts).
(4) All other savings deposits that are not classified as
transaction accounts (e.g., regular savings and passbook savings accounts).
(5) Interest paid by crediting the savings deposit accounts
defined by paragraphs (1) through (4) in this item.
Exclude the following from this item:
(1) NOW accounts (including ‘‘Super NOWs’’) and ATS
accounts (report in item 1(b) above).
(2) Overdraft protection plan accounts that permit more
than six transfers per month (report in item 1(a) as a
demand deposit).
(3) Savings deposits subject to telephone or preauthorized transfer (report in item 1(b) above), unless the
depositor is not permitted or not authorized to make
more than six withdrawals per month for purposes of
transferring funds to another account or for making a
payment to a third party by means of preauthorized
or telephone agreement, order, or instruction.
(4) Special passbook or statement accounts, such as
‘‘90-day notice accounts,’’ ‘‘golden passbook
accounts,’’ or deposits labeled as ‘‘savings certificates,’’ that have a specified original maturity of
seven days or more (report as time deposits in
item 1(d) or 1(e) below).
(5) Interest accrued on savings deposits but not yet paid
or credited to a deposit account (exclude from this
schedule and report in Schedule HC, item 20, ‘‘Other
liabilities’’).
Line Item 1(d)
$100,000.

Time deposits of less than

Report in this item all time deposits with balances of less
than $100,000 that are held in domestic offices of the
commercial bank subsidiaries of the reporting bank holdHC-E-4

ing company. This item includes both time certificates
of deposit and open-account time deposits with balances
of less than $100,000, regardless of negotiability or
transferability.
Include the following:
(1) Time deposits (as defined in the Glossary entry for
‘‘deposits’’), which are deposits with original maturities of seven days or more, that are not classified as
transaction accounts and that have balances of less
than $100,000.
(2) Interest paid by crediting nontransaction time deposit
accounts with balances of less than $100,000.
(3) Time deposits issued to deposit brokers in the form
of large ($100,000 or more) certificates of deposit
that have been participated out by the broker in
shares of less than $100,000. In addition, if the bank
subsidiary has issued a master certificate of deposit to
a deposit broker in an amount that exceeds $100,000
and under which brokered certificates of deposit are
issued in $1,000 amounts (so-called "retail brokered
deposits"), individual depositors who purchase multiple certificates issued by the bank subsidiary normally do not exceed the applicable deposit insurance
limit (either $100,000 or $250,000). Under current
deposit insurance rules the deposit broker is not
required to provide information routinely on these
purchasers and their account ownership capacity to
the bank subsidiary issuing the deposits. If this
information is not readily available to the issuing
bank subsidiary, these brokered certificates of deposit
in $1,000 amounts should be reported in this item as
time deposits of less than $100,000.
Exclude from this item all time deposits with balances of
$100,000 or more (report in item 1(e) below).
Line Item 1(e)

Time deposits of $100,000 or more.

Report in this item all time deposits, including time
certificates of deposit and open-account time deposits
with balances of $100,000 or more, regardless of negotiability or transferability that are held in the commercial
bank subsidiaries of the reporting bank holding company.
Include the following:
(1) Time deposits (as defined in the Glossary entry for
‘‘deposits’’), which are deposits with original maturities of seven days or more, that are not classified
Schedule HC-E

FR Y-9C
March 2007

Schedule HC-E

as transaction accounts and that have balances of
$100,000 or more.
(2) Interest paid by crediting nontransaction time deposit
accounts with balances of $100,000 or more.
Exclude the following:
(1) All time deposits issued to deposit brokers in the
form of large ($100,000 or more) certificates of
deposit that have been participated out by the broker
in shares of less than $100,000 (report in item 1(d)).

Line Item 2(a)

Noninterest-bearing balances.

Report all noninterest-bearing deposits, including any
matured time or savings deposits that have not automatically been renewed, as defined in the Glossary entry for
‘‘deposits,’’ that are held in domestic offices of ‘‘other
depository institutions’’ that are subsidiaries consolidated
on the reporting bank holding company’s financial statements. Include any deposit account on which the issuing
depository institution pays no compensation.

(2) All time deposits with balances of less than $100,000
(report in item 1(d)),

Line Item 2(b)
accounts.

NOTE: Bank holding companies should include as time
deposits of their commercial bank subsidiaries of
$100,000 or more those time deposits originally issued in
denominations of less than $100,000 but that, because of
interest paid or credited, or because of additional deposits, now have a balance of $100,000 or more.

Report in this item all accounts subject to negotiable
orders of withdrawal (i.e., NOW accounts), all ATS
accounts (that is, accounts subject to automatic transfer
from savings accounts), and all other transaction accounts
that are held in domestic offices of the ‘‘other depository
institution’’ subsidiaries of the reporting bank holding
company.

Line Item 2 Deposits held in domestic offices of
other depository institutions that are subsidiaries of
the reporting bank holding company.
NOTE: Items 2(a) through 2(e) are to be completed only
by bank holding companies that have depository institutions other than banks as subsidiaries.
Report in items 2(a) through 2(e) below deposits held in
domestic offices of other depository institutions that are
subsidiaries of the reporting bank holding company and
that are consolidated by the holding company on this
report.
For purposes of this item, other depository institutions
cover depository institutions other than commercial
banks (as defined in item 1 of this schedule) that are
consolidated subsidiaries of the reporting bank holding
company. Such depository institutions may include savings and loan or building and loan associations, depository trust companies, or other institutions that accept
deposits that do not submit the commercial bank Reports
of Condition and Income (FFIEC 031, 041).
Exclude Edge and Agreement Corporations from the
coverage of ‘‘other depository institutions’’ for purposes
of this item. Domestic offices are those offices located in
the fifty states of the United States and the District of
Columbia.
FR Y-9C
Schedule HC-E

March 2007

NOW, ATS, and other transaction

Other transaction accounts include the following:
(1) Accounts (other than MMDAs) that permit third
party payments through automated teller machines
(ATMs) or remote service units (RSUs).
(2) Accounts (other than MMDAs) that permit third
party payments through the use of checks, drafts,
negotiable instruments, debit cards, or other similar
items.
(3) Accounts (other than MMDAs) if more than six of
the following transactions per calendar month are
permitted to be made by telephone or preauthorized
order or instruction:
(a) payments or transfers to third parties;
(b) transfers to another account of the depositor at
the same institution; and
(c) transfers to an account at another depository
institution.
Line Item 2(c) Money market deposit accounts
and other savings accounts.
Report in this item all savings deposits held in the
subsidiary depository institutions (other than commercial
banks) consolidated in this report by the reporting bank
holding company, other than NOW accounts, ATS
HC-E-5

Schedule HC-E

accounts, or other transaction accounts that are in the
form of savings deposits.

its with balances of less than $100,000, regardless of
negotiability or transferability.

Include in this item the following:

Include the following:

(1) Savings deposits subject to telephone and preauthorized transfers where the depositor is not permitted or
authorized to make more than six withdrawals per
month for purposes of transferring funds to another
account or for making a payment to a third party
by means of preauthorized or telephone agreement,
order, or instruction.

(1) Time deposits (as defined in the Glossary entry for
‘‘deposits’’), which are deposits with original maturities of seven days or more, that are not classified as
transaction accounts and that have balances of less
than $100,000.

(2) Savings deposits subject to no more than six transfers
per month for purposes of covering overdrafts (i.e.,
overdraft protection plan accounts).
(3) All other savings deposits that are not classified as
transaction accounts (e.g., regular savings and passbook savings accounts).
(4) Interest paid by crediting the savings deposit accounts
defined by paragraphs (1) through (4) in this item.
Exclude from this item the following:
(1) NOW accounts and ATS accounts (report in item 2(b)
above).
(2) Overdraft protection plan accounts that permit more
than six transfers per month (report in item 2(a) as
noninterest-bearing balances).
(3) Savings deposits subject to telephone or preauthorized transfer (report in item 2(b) above), unless the
depositor is not permitted or not authorized to make
more than six withdrawals per month for purposes of
transferring funds to another account or for making a
payment to a third party by means of preauthorized
or telephone agreement, order, or instruction.
(4) Interest accrued on savings deposits but not yet paid
or credited to a deposit account (exclude from this
schedule and report in Schedule HC, item 20, ‘‘Other
liabilities’’).
Line Item 2(d)
$100,000.

Time deposits of less than

Report in this item all time deposits with balances of less
than $100,000 that are held in domestic offices of ‘‘other
depository institutions’’ (other than commercial banks),
as defined in item 2 above that are subsidiaries of the
reporting bank holding company. This item includes both
time certificates of deposit and open-account time deposHC-E-6

(2) Interest paid by crediting nontransaction time deposit
accounts with balances of less than $100,000.
(3) Time deposits issued to deposit brokers in the form
of large ($100,000 or more) certificates of deposit
that have been participated out by the broker in
shares of less than $100,000. In addition, if the
depository institution has issued a master certificate
of deposit to a deposit broker in an amount that
exceeds $100,000 and under which brokered certificates of deposit are issued in $1,000 amounts (socalled "retail brokered deposits"), individual depositors who purchase multiple certificates issued by the
depository institution normally do not exceed the
applicable deposit insurance limit (either $100,000 or
$250,000). Under current deposit insurance rules the
deposit broker is not required to provide information
routinely on these purchasers and their account ownership capacity to the depository institution issuing
the deposits. If this information is not readily available to the issuing depository institution, these brokered certificates of deposit in $1,000 amounts
should be reported in this item as time deposits of
less than $100,000.
Exclude from this item all time deposits with balances of
$100,000 or more (report in item 2(e) below).
Line Item 2(e)

Time deposits of $100,000 or more.

Report in this item all time deposits, including time
certificates of deposit and open-account time deposits
with balances of $100,000 or more, regardless of negotiability or transferability that are held in depository
institutions (other than commercial banks) that are subsidiaries of the reporting bank holding company.
Include the following:
(1) Time deposits (as defined in the Glossary entry for
‘‘deposits’’), which are deposits with original maturities of seven days or more, that are not classified as
Schedule HC-E

FR Y-9C
March 2007

Schedule HC-E

transaction accounts and that have balances of
$100,000 or more.
(2) Interest paid by crediting nontransaction time deposit
accounts with balances of $100,000 or more.
Exclude the following:
(1) All time deposits issued to deposit brokers in the
form of large ($100,000 or more) certificates of
deposit that have been participated out by the broker
in shares of less than $100,000 (report in item 2(d)).
(2) All time deposits with balances of less than $100,000
(report in item 2(d)),
NOTE: Bank holding companies should include as time
deposits held in their depository institution subsidiaries
(other than commercial banks) with balances of $100,000
or more, those time deposits originally issued in denominations of less than $100,000 but that, because of interest
paid or credited, or because of additional deposits, now
have a balance of $100,000 or more.

Memoranda
Line Item M1 Brokered deposits less than
$100,000 with a remaining maturity of one year or
less.
Report in this item those brokered time deposits included
in items 1 or 2 above that are issued in denominations of
less than $100,000 with a remaining maturity of one year
or less and are held in domestic offices of commercial
banks or other depository institutions that are subsidiaries
of the reporting bank holding company. Remaining maturity is the amount of time remaining from the report date
until the final contractual maturity of a brokered deposit.
Also report in this item all brokered demand and savings
deposits with balances of less than $100,000. See the

FR Y-9C
Schedule HC-E

March 2007

Glossary entries for ‘‘Brokered deposits’’ and ‘‘Brokered
retail deposits’’ for additional information.
Line Item M2 Brokered deposits less than
$100,000 with a remaining maturity of more than
one year.
Report in this item those brokered time deposits included
in items 1 or 2 above that are issued in denominations of
less than $100,000 with a remaining maturity of more
than one year and are held in domestic offices of commercial banks or other depository institutions that are subsidiaries of the reporting bank holding company. Remaining
maturity is the amount of time remaining from the report
date until the final contractual maturity of a brokered
deposit. See the Glossary entries for ‘‘Brokered deposits’’ and ‘‘Brokered retail deposits’’ for additional information.
Line Item M3 Time deposits of $100,000 or more
with a remaining maturity of one year or less.
Report in this item time deposits included in items 1(e)
and 2(e) above that are issued in denominations of
$100,000 or more with a remaining maturity of one year
or less. Remaining maturity is the amount of time
remaining from the report date until the final contractual
maturity of a time deposit.
Line Item M4 Foreign office time deposits with a
remaining maturity of one year or less.
Report all time deposits in foreign offices with remaining
maturities of one year or less. Remaining maturity is the
amount of time remaining from the report date until the
final contractual maturity of a time deposit. The time
deposits included in this item will also have been
included in Schedule HC, item 13(b).

HC-E-7

LINE ITEM INSTRUCTIONS FOR

Other Assets
Schedule HC-F

General Instructions
Complete this schedule for the fully consolidated bank
holding company. Eliminate all intercompany balances
between offices, subsidiaries, and other entities included
in the scope of the consolidated bank holding company.
Line Item 1

Accrued interest receivable.

Report the amount of interest earned or accrued on
earning assets and applicable to current or prior periods
that has not yet been collected. Accrued interest on
securities purchased may be reported in this item, or in
item 5 below, if accounted for separately from ‘‘accrued
interest receivable’’ in the bank holding company’s
records.
Exclude retained interest in accrued interest receivable
related to securitized credit cards (report in Schedule
HC-F, item 6).
Line Item 2

Net deferred tax assets.

Report the net amount after offsetting deferred tax assets
(net of valuation allowance) and deferred tax liabilities
measured at the report date for a particular tax jurisdiction if the net result is a debit balance. If the result for a
particular tax jurisdiction is a net credit balance, report
the amount in Schedule HC-G, item 2, ‘‘Net deferred tax
liabilities.’’ If the result for each tax jurisdiction is a
net credit balance, enter a zero or the word ‘‘none’’ in this
item. (A bank holding company may report a net deferred
tax debit, or asset, for one tax jurisdiction, such as for
federal income tax purposes, and also report at the same
time a net deferred tax credit, or liability, for another tax
jurisdiction, such as for state or local income tax purposes.)
For further information on calculating deferred taxes for
different tax jurisdictions, see the Glossary entry for
‘‘income taxes.’’
FR Y-9C
Schedule HC-F

March 2007

Line Item 3 Interest-only strips receivable (not in
the form of a security) on:
As defined in FASB Statement No. 140, ‘‘Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,’’ an interest-only strip receivable is the contractual right to receive some or all of the
interest due on a bond, mortgage loan, collateralized
mortgage obligation, or other interest-bearing financial
asset. This includes, for example, contractual rights to
future interest cash flows that exceed contractually specified servicing fees on financial assets that have been sold.
Report in the appropriate subitem interest-only strips
receivable not in the form of a security that are measured
at fair value like available-for-sale securities.1 Report
unrealized gains (losses) on these interest-only strips
receivable in Schedule HC, item 26(b), ‘‘Accumulated
other comprehensive income.’’
Exclude from this item interest-only strips receivable in
the form of a security, which should be reported as
available-for-sale securities in Schedule HC, item 2(b),
or as trading assets in Schedule HC, item 5, as appropriate. Also exclude interest-only strips not in the form of
a security that are held for trading, which should be
reported in Schedule HC, item 5.
Line Item 3(a)

Mortgage loans.

Report the fair value of interest-only strips receivable
(not in the form of a security) on mortgage loans.
Line Item 3(b)

Other financial assets.

Report the fair value of interest-only strips receivable
(not in the form of a security) on financial assets other
than mortgage loans.
1. An interest-only strip receivable is not in the form of a security if the
strip does not meet the definition of a security in FASB Statement No. 115,
‘‘Accounting for Certain Investments in Debt and Equity Securities.’’

HC-F-1

Schedule HC-F

Line Item 4 Equity securities that do not have
readily determinable fair values.
Report the historical cost of equity securities without
readily determinable fair values. These equity securities
are outside the scope of FASB Statement No. 115,
‘‘Accounting for Certain Investments in Debt and Equity
Securities.’’ An equity security does not have a readily
determinable fair value if sales or bid-and-asked quotations are not currently available on a securities exchange
registered with the Securities and Exchange Commission
(SEC) and are not publicly reported by the National
Association of Securities Dealers Automated Quotations
systems or the National Quotation Bureau. The fair value
of an equity security traded only in a foreign market is
not of a breadth and scope comparable to one of the U.S.
markets referenced above.
Equity securities that do not have readily determinable
fair values may have been purchased by the reporting
bank holding company or acquired for debts previously
contracted.
Include in this item:
(1) Paid-in stock of a Federal Reserve Bank.
(2) Common and preferred stocks that do not have
readily determinable fair values, such as stock of
bankers’ banks and Class B voting common stock of
the Federal Agricultural Mortgage Corporation
(Farmer Mac).
(3) Stock of a Federal Home Loan Bank.
(4) ‘‘Restricted stock,’’ as defined in FASB Statement
No. 115, i.e., equity securities for which sale is
restricted by governmental or contractual requirement (other than in connection with being pledged as
collateral), except if that requirement terminates
within one year or if the holder has the power by
contract or otherwise to cause the requirement to be
met within one year.
(5) Participation certificates issued by a Federal Intermediate Credit Bank, which represent nonvoting stock
of the bank.
(6) Minority interests held by the reporting bank holding
company in any company not meeting the definition
of associated company, except minority holdings that
indirectly represent premises of the bank holding
company (report in Schedule HC, item 6) or other
HC-F-2

real estate owned (report in Schedule HC, item 7),
provided that the fair value of any capital stock
representing the minority interest is not readily determinable. (See the Glossary entry for ‘‘subsidiaries’’
for the definition of associated company.)
(7) Equity holdings in those corporate ventures over
which the reporting bank does not exercise significant influence, except equity holdings that indirectly
represent premises of the bank holding company
(report in Schedule HC, item 6) or other real estate
owned (report in Schedule HC, item 7). (See the
Glossary entry for ‘‘subsidiaries’’ for the definition of
corporate joint venture.)
Exclude from this item:
(1) Holdings of capital stock of and investments in
unconsolidated subsidiaries, associated companies,
and those corporate joint ventures over which the
reporting bank holding company exercises significant influence (report in Schedule HC, item 8,
‘‘Investments in unconsolidated subsidiaries and
associated companies’’).
(2) Preferred stock that by its terms either must be
redeemed by the issuing enterprise or is redeemable
at the option of the investor (report in Schedule HC-B, item 6, ‘‘Other debt securities’’).
Line Item 5

Life insurance assets.

Report the amount of the bank holding company’s holdings of life insurance assets. Include the cash surrender
value of life insurance reported by the insurance carrier,
less any applicable surrender charges not reflected by the
carrier in this reported value, on all forms of permanent
life insurance policies owned by the bank holding company, its consolidated subsidiaries, and grantor (rabbi)
trusts established by the bank subsidiary or its consolidated subsidiaries, regardless of the purposes for acquiring the insurance and regardless of whether the insurance
is a general account obligation of the insurer or a separate
account obligation of the insurer. Permanent life insurance refers to whole and universal life insurance, including variable universal life insurance. Purposes for which
insurance may be acquired include offsetting pre- and
post-retirement costs for employee compensation and
benefit plans, protecting against the loss of key persons,
and providing retirement and death benefits to employees. Include as life insurance assets the bank holding
Schedule HC-F

FR Y-9C
March 2007

Schedule HC-F

company’s interest in insurance policies under splitdollar life insurance arrangements with directors, officers, and employees under both the endorsement and
collateral assignment methods.
Line Item 6

Other.

Report the amount of all other assets (other than those
reported in Schedule HC-F, items 1, 2, 3, 4, and 5 above)
which cannot properly be reported in Schedule HC,
items 1 through 10.
Include as all other assets:
(1) Prepaid expenses i.e., those applicable as a charge
against operations in future periods.
(2) Cost of issuing subordinated notes and debentures
and the cost of issuing notes payable to unconsolidated special purpose entities that issue trust preferred securities, net of accumulated amortization.
(3) Automobiles, boats, equipment, appliances, and
similar personal property repossessed or otherwise
acquired for debts previously contracted.
(4) Derivative instruments that have a positive fair
value that the bank holding company holds for
purposes other than trading. For further information, see Glossary entry for ‘‘derivative contracts.’’
(5) Accrued interest on securities purchased (or in line
item 1 above).
(6) Cash items not conforming to the definition of
‘‘Cash items in process of collection’’ found in the
instruction to Schedule HC, item 1(a).
(7) Credit or debit card sales slips in process of collection until the reporting bank holding company has
been notified that it has been given credit (report
thereafter in Schedule HC, item 1(a), ‘‘Noninterestbearing balances and currency and coin’’).
(8) Purchased computer software, net of accumulated
amortization, and unamortized costs of computer
software to be sold, leased, or otherwise marketed
capitalized in accordance with the provisions of
FASB Statement No. 86.
(9) Bullion (e.g., gold or silver) not held for trading
purposes.
(10) Original art objects, including paintings, antique
objects, and similar valuable decorative articles
FR Y-9C
Schedule HC-F

March 2007

(report at cost unless there has been a decline in
value, judged to be other than temporary, in which
case the object should be written down to its fair
value).
(11) Securities or other assets held in charitable trusts
(e.g., Clifford Trusts).
(12) The full amount (with the exceptions noted below)
of customers’ liability to the reporting bank holding
company on drafts and bills of exchange that have
been accepted by the reporting bank holding company, or by others for its account, and are outstanding. The amount of customers’ liability to the
reporting bank holding company on its acceptances
that have not yet matured should be reduced only
when: (a) the customer anticipates its liability to the
reporting bank holding company on an outstanding
acceptance by making a payment to the bank
holding company in advance of the acceptance’s
maturity that immediately reduces the customer’s
indebtedness to the bank holding company on such
an acceptance; or (b) the reporting bank holding
company acquires and holds its own acceptance.
See the Glossary entry for ‘‘bankers acceptances’’
for further information.
(13) Furniture and equipment rented to others under
operating leases, net of accumulated depreciation.
(14) Ground rents.
(15) Customers’ liability for deferred payment letters of
credit.
(16) Reinsurance recoverables of insurance subsidiaries
from unaffiliated reinsurers only. (Also report, as
appropriate, in Schedule HC-I).
(17) ‘‘Separate account assets’’ of insurance subsidiaries. (Also report, as appropriate, in Schedule
HC-I).
Exclude from all other assets:
(1) Redeemed U.S. savings bonds and food stamps
(report in Schedule HC, item 1(a), ‘‘Noninterestbearing balances and currency and coin’’).
(2) Real estate owned or leasehold improvements to
property intended for future use as premises of the
bank holding company (report in Schedule HC,
item 6, ‘‘Premises and fixed assets’’).
HC-F-3

Schedule HC-F

(3) Accounts identified as ‘‘building accounts,’’ ‘‘construction accounts,’’ or ‘‘remodeling accounts’’ (report
in Schedule HC, item 6, ‘‘Premises and fixed assets’’).
(4) Real estate acquired in any manner for debts previously contracted (including, but not limited to, real
estate acquired through foreclosure and real estate
acquired by deed in lieu of foreclosure), even if the
bank holding company has not yet received title to
the property, and real estate collateral underlying a
loan when the bank holding company has obtained
physical possession of the collateral, regardless of
whether formal foreclosure proceedings have been

HC-F-4

instituted against the borrower (report as ‘‘All other
real estate owned’’ in Schedule HC-M, item 13(b)).
(5) Due bills representing purchases of securities or
other assets by the reporting bank that have not yet
been delivered (report as loans in Schedule HC-C).
(6) Factored accounts receivable (report as loans in
Schedule HC-C).
Line Item 7

Total.

Report the sum of items 1 through 6. This amount must
equal Schedule HC, item 11, ‘‘Other assets.’’

Schedule HC-F

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Other Liabilities
Schedule HC-G

General Instructions
Complete this schedule for the fully consolidated bank
holding company. Eliminate all intercompany balances
between offices, subsidiaries, and other entities included
in the scope of the consolidated bank holding company.

income taxes, interest on nondeposit liabilities, and other
expenses accrued through charges to expense during the
current or prior periods, but not yet paid or credited to a
deposit account.
Include as all other liabilities:

Line Item 1

Not applicable.

(1) Accounts payable.

Line Item 2

Net deferred tax liabilities.

(2) Deferred compensation liabilities.

Report the net amount after offsetting deferred tax assets
(net of valuation allowance) and deferred tax liabilities
measured at the report date for a particular tax jurisdiction if the net result is a credit balance. If the result for a
particular tax jurisdiction is a net debit balance, report the
amount in Schedule HC-F, item 2, ‘‘Net deferred tax
assets.’’ If the result for each tax jurisdiction is a net debit
balance, enter a zero in this item. (A bank holding
company may report a net deferred tax debit, or asset, for
one tax jurisdiction, such as for federal income tax
purposes, and also report at the same time a net deferred
tax credit, or liability, for another tax jurisdiction, such as
for state or local income tax purposes.)
For further information on calculating deferred taxes for
different tax jurisdictions, see the Glossary entry for
‘‘income taxes.’’
Line Item 3 Allowance for credit losses on
off-balance sheet credit exposures.
Report the amount of any allowance for credit losses on
off-balance sheet exposures established in accordance
with generally accepted accounting principles.
Line Item 4

Other.

Report the amount of all other liabilities (other than those
reported in Schedule HC-G, items 2 and 3 above) that
cannot properly be reported in Schedule HC, items 13
through 19. Report the amount of interest on deposits,
FR Y-9C
Schedule HC-G

March 2007

(3) Dividends declared but not yet payable—Include
the amount of cash dividends declared on limitedlife preferred, perpetual preferred, and common
stock on or before the report date but not payable until after the report date. (Report dividend
checks outstanding as deposit liabilities in Schedule HC-E).
(4) Derivative instruments that have a negative fair
value that the reporting bank holding company
holds for purposes other than trading. For further
information, see Glossary entry for ‘‘derivative
contracts.’’
(5) Deferred gains from sale–leaseback transactions.
(6) Unamortized loan fees, other than those that represent an adjustment of the interest yield, if material
(refer to the Glossary entry for ‘‘loan fees’’ for
further information).
(7) Bank holding company’s liability for deferred payment letters of credit.
(8) Recourse liability accounts arising from asset transfers with recourse that are reported as sales.
(9) Claims and claims adjustment expense reserves of
insurance subsidiaries. (Also report, as appropriate,
in Schedule HC-I).
(10) Unearned premiums of insurance subsidiaries. (Also
report, as appropriate, in Schedule HC-I).
HC-G-1

Schedule HC-G

(11) Policyholder benefits and contractholder funds of
insurance subsidiaries. (Also report, as appropriate,
on Schedule HC-I).
(12) ‘‘Separate account liabilities’’ of insurance subsidiaries (Also report, as appropriate, in Schedule HC-I).
(13) The full amount (except as noted below) of the
liability represented by drafts and bills of exchange
that have been accepted by the reporting bank
holding company, or by others for its account, and
that are outstanding. The bank holding company’s
liability on acceptances executed and outstanding
should be reduced prior to the maturity of such
acceptances only when the reporting bank holding
company acquires and holds its own acceptances,
i.e., only when the acceptances are not outstanding.
See the Glossary entry for ‘‘bankers acceptances’’
for further information.
Exclude from all other liabilities (report in Schedule HC,
item 19(b), ‘‘Subordinated notes payable to unconsolidated trusts issuing trust preferred securities, and trust
preferred securities issued by consolidated special purpose entities’’):
(1) Instruments generally referred to as trust preferred
securities that are issued out of consolidated special
purpose entities. For further information, see the
Glossary entry for ‘‘Trust preferred securities
issued.’’
(2) Notes payable to unconsolidated special purpose
entities that issue trust preferred securities.
Exclude from all other liabilities (report in appropriate
items of Schedule HC-E, Deposit Liabilities):

HC-G-2

(1) Proceeds from sales of U.S. savings bonds.
(2) Withheld taxes, social security taxes, sales taxes, and
similar items.
(3) Mortgage and other escrow funds (e.g., funds received
for payment of taxes or insurance), sometimes described as mortgagors’ deposits or mortgage credit
balances.
(4) Undisbursed loan funds for which borrowers are
liable and on which they pay interest. The amounts of
such undisbursed funds should be included in both
loans and deposits.
(5) Funds held as dealer reserves (see the Glossary entry
for ‘‘dealer reserve accounts’’ for the definition of
this term).
(6) Payments collected by the bank holding company on
loans secured by real estate and other loans serviced
for others that have not yet been remitted to the
owners of the loans.
(7) Credit balances on credit cards and other revolving
credit plans as a result of customers’ overpayments.
Also exclude from all other liabilities due bills or similar
instruments representing the bank holding company’s
receipt of payment and the bank holding company’s
liability on capital lease obligations (report in Schedule HC, item 16, ‘‘Other borrowed money’’).
Line Item 5

Total.

Report the sum of items 1 through 4. This amount must
equal Schedule HC, item 20, ‘‘Other liabilities.’’

Schedule HC-G

FR Y-9C
March 2007

LINE INSTRUCTIONS FOR

Interest Sensitivity
Schedule HC-H

General Instructions
Schedule HC-H requests information related to interest
rate sensitivity.
Information for only selected assets and liabilities is
requested in this schedule. The schedule does not provide, nor is it intended to provide, a comprehensive view
of the interest rate sensitivity position of the reporting
bank holding company.
The information reported on this schedule must be
consolidated on the same basis as the rest of the Consolidated Financial Statements for Bank Holding Companies. However, bank holding companies that have foreign
subsidiaries or subsidiaries with more than one office
in foreign countries (including offices of consolidated
foreign subsidiaries but excluding ‘‘shell’’ branches,
excluding offices in Puerto Rico or U.S. territories and
possessions, and excluding IBFs) have the option of
excluding the smallest of such non-U.S. offices from
coverage in this schedule. Such bank holding companies
may exclude the smallest of their offices in foreign
countries (other than ‘‘shell’’ branches) when arrayed
by total assets provided that the assets of the excluded
offices do not exceed 50 percent of the total assets of the
bank holding company’s offices (excluding ‘‘shells’’) in
foreign countries and do not exceed 10 percent of the
total consolidated assets of the reporting bank holding
company as of the report date. (Note: In determining the
total assets of offices in foreign countries eligible for
exclusion from this schedule, bank holding companies
should exclude not only ‘‘shell’’ branches but also offices
in Puerto Rico and U.S. territories and possessions,
domestic offices of Edge and Agreement subsidiaries,
and IBFs even though these are sometimes referred to as
‘‘foreign’’ offices. Also, the asset totals for all offices in
foreign countries should be the component of the total
consolidated assets, i.e., should exclude all intracompany
transactions.)
FR Y-9C
Schedule HC-H

March 2007

The assets and liabilities included in this schedule should
be reported without regard to the instruments’ repayment
schedules, by remaining maturity for transactions with
fixed or predetermined rates, and by repricing frequency
for transactions with floating or adjustable rates. (See
definitions of terms below.)
Alternatively, the bank holding company may, at its
option:
(1) continue to report its floating rate transactions by
the earliest repricing opportunity if its records provide repricing data on the length of time between the
report date and the date the rate can next change; and
(2) continue to report its multipayment transactions on
the basis of the scheduled contractual payments if its
records provide repricing data on the basis of these
scheduled contractual payments.
However, the reporting bank holding company must
apply either the first procedure in reporting this schedule
or the alternate procedure but it must apply one procedure consistently for every transaction reported on this
schedule.

Definitions
A fixed interest rate is a rate that is specified at the
origination of the transaction, is fixed and invariable
during the term of the instrument, and is known to both
the borrower and the lender.
A predetermined interest rate is a rate that changes
during the term of the instrument on a predetermined
basis, with the exact rate of interest over the life of the
instrument known with certainty to both the borrower
and the lender when the instrument is acquired. Examples
of predetermined-rate transactions are as follows:
HC-H-1

Schedule HC-H

(1) Loans that carry a specified interest rate, for, say, six
months and thereafter carry a rate equal to a specific
percentage over the initial rate.
(2) Loans that carry a specified interest rate while the
loan amount is below a certain threshold amount but
carry a different specified rate above that threshold
(e.g., a line of credit where the interest rate is 14%
when the unpaid balance of amounts advanced is
$100,000 or less, and 12% when the unpaid balance
is more than $100,000).
A floating or adjustable interest rate is a rate that varies,
or can vary, in relation to an index, to some other interest
rate, such as the rate on certain U.S. government securities or the bank’s ‘‘prime rate,’’ or to some other variable
criterion the exact value of which cannot be known in
advance. Therefore, the exact rate the instrument carries
at any subsequent time cannot be known at the time of
origination. If the interest rate can float or be adjusted
daily, the rate is considered immediately adjustable, even
if the rate is not, in fact, changed.
For purposes of this schedule, when the rate on an
instrument with a floating or adjustable rate can no longer
float because it has reached a floor or ceiling level, the
instrument is to be treated as ‘‘fixed rate’’ rather than as
‘‘floating rate’’ until the rate is again free to float.
Remaining maturity is the amount of time remaining
from the report date until the final contractual maturity of
the instrument without regard to the instruments repayment schedule, if any.
Repricing frequency is how often the contract permits the
interest rate on an instrument to be changed (e.g., daily,
monthly, quarterly, semiannually, annually) without regard to the length of time between the report date and the
date the rate can next change.
Line Item 1 Earning assets that are repriceable
within one year or mature within one year.
Report all assets that the consolidated bank holding
company considers earning assets that have a remaining
maturity of less than one year or where the repricing
frequency is less than one year.
Earning assets generally include interest-bearing balances due from depository institutions, securities, federal
funds sold and securities purchased under agreements to
resell, and loans and leases. Assets in these categories
HC-H-2

that are in nonaccrual status should be excluded from
earning assets.
Exclude trading account assets and equity securities.
Report in this item the following:
(1) Earning assets that have a fixed or predetermined
interest rate and that have a remaining maturity of
less than one year.
Note, however, bank holding companies with multipayment fixed rate earning assets may continue to
report the dollar amount of scheduled contractual
payments that are to be repaid in less than one year in
this item even though the remaining maturity of the
assets is one year or more provided all multipayment
transactions are reported in this manner. (See general
instructions for this schedule.)
(2) Earning assets that have a floating or variable rate
contract that permits the interest rate on the asset to
change more often than once a year, i.e., has a
repricing frequency of less than one year (even
though the remaining maturity on the assets may be
one year or more).
Note, however, bank holding companies whose
records provide repricing data on the length of time
between the report date and the date the rate can next
change (i.e., by earliest repricing opportunity) may
continue to report in this item the dollar amount of
floating rate earning assets with an earliest repricing
opportunity of less than one year, even though the
repricing frequency is one year or more, provided
all floating rate transactions are reported on this
schedule in this manner. If a bank holding company
chooses to report its floating rate earning assets by
the earliest repricing opportunity, it should report in
this item the dollar amount of the contractual payments on its multipayment floating rate earning
assets that are scheduled to be repaid within one year
even if the earliest repricing opportunity and the
repricing frequency is one year or more. (See general
instructions for this schedule.)
Included in this item, if the repricing frequency or
remaining maturity are less than one year, are the
following:
(1) Leases, net of unearned income, as fixed rate
instruments.
Schedule HC-H

FR Y-9C
March 2007

Schedule HC-H

Note, however, bank holding companies may continue to report the change in the book value of the
lease payments that are to be repaid in less than one
year, net of unearned income provided they are
reporting on this schedule using the alternate procedure described in the general instructions to this
schedule. Any estimated residual value included in
the net book value should be reported if the final
lease payment is scheduled to be made in less than
one year.
(2) All demand loans made solely on a demand basis
(i.e., without an alternate maturity date or without
repayment terms).
(3) Demand loans that have an alternate maturity date
or repayment terms, as fixed or floating rate instruments, on the basis of the alternate maturity date.
(4) Credit cards and related plans with floating or
adjustable rates (e.g., where the rate varies, or can
vary, each billing cycle). Where the bank holding
company in its contract with the borrower simply
reserves the right to change the interest rate on a
credit card or related plan, the plan should not be
considered to have a floating or adjustable rate.
Credit cards and related plans with fixed or predetermined rates are to be excluded from this item.
(5) Amortizing fixed rate mortgage loans that implicitly permit rate adjustments by having the note
mature at the end of an interval shorter than the
term of the amortization schedule unless the holding company made no promise to refinance the
loan, as a floating rate instrument.
(6) Student loans whose interest rate is adjusted periodically by the U.S. government by means of
interest payments that include an amount of ‘‘additional interest,’’ as floating rate instruments.
(7) Loans secured by real estate that are held by the
holding company or its subsidiaries for sale and
delivery to the Federal National Mortgage Association or other secondary market participants under
the terms of a binding commitment, on the basis of
the delivery date specified in the commitment.
(8) Floating rate loans on which the borrower has the
option at each repricing date to choose the next
repricing date, in accordance with the repricing
option currently in effect as of the report date.
FR Y-9C
Schedule HC-H

March 2007

(9) Debt securities, without regard to their call date
unless the security has actually been called. When
fixed rate debt securities have been called, they
should be reported on the basis of the time remaining until the call date.
(10) Mortgage pass-through certificates (such as those
issued by the Government National Mortgage
Association (GNMA), the Federal Home Loan
Mortgage Corporation (FHLMC), certain banks
and savings and loan associations, and securities
dealers) and all Small Business Administration
(SBA) ‘‘Guaranteed Loan Pool Certificates.’’
(11) Fixed rate collateralized mortgage obligations
(CMOs) and similar instruments on the basis of the
time remaining until the stated final maturity of the
instrument, not the projected final maturity or
weighted average life of the instrument.
(12) Debt securities that provide the consolidated bank
holding company with the option to redeem them at
one or more specified dates prior to their contractual maturity date, so-called ‘‘put bonds,’’ on the
basis of earliest ‘‘put’’ date for bonds.
(13) Zero coupon debt securities, as fixed rate debt
securities.
Line Item 2 Interest-bearing deposit liabilities that
reprice within one year or mature within one year.
Report in this item all interest-bearing deposit liabilities
that have a time remaining to maturity of less than one
year and any other interest-bearing deposit liabilities that
have a repricing frequency of less than one year (regardless of the remaining maturity), without regard to scheduled contractual payments on deposits with multiple
maturities. The amount reported in this item should
be included in Schedule HC, item 13(a)(2), ‘‘Interestbearing deposits in domestic offices,’’ and item 13(b)(2),
‘‘Interest-bearing deposits in foreign offices, Edge and
agreement subsidiaries, and IBFs.’’
Do not report deposits in domestic offices classified as
demand or savings accounts (including money market
deposit accounts and all NOW accounts).
Note, however, bank holding companies choosing to
continue to report their multi-maturity deposits on the
basis of their scheduled contractual payments and their
floating rate deposits by earliest repricing opportunity
should report in this item the following:
HC-H-3

Schedule HC-H

(1) the dollar amount of floating or variable rate deposits
that can be repriced in less than one year even if few,
if any, of the contractual payments are scheduled to
be repaid within one year. If the deposits have
multiple maturities and have some contractual payments scheduled to be repaid within one year, but
cannot be repriced for one year or more, include the
dollar amount of the contractual payments to be
repaid within one year. (See general instructions for
this schedule.)
(2) the dollar amount of the scheduled contractual payments that are to be repaid in less than one year if the
deposits have fixed or predetermined rates. (See
general instructions for this schedule.)
Line Item 3 Long-term debt with a remaining
maturity of more than one year but reprices
within one year included in items 16 and 19(a) on
Schedule HC, Balance Sheet.
Report debt issued by the consolidated bank holding
company that has a remaining maturity of more than one
year but that has a repricing frequency of less than a year.
Include as long-term debt the following:
(1) Other borrowed money with a remaining maturity of
more than one year reported in Schedule HC, item 16
(excluding mortgage indebtedness and obligations
under capitalized leases reported on Schedule HC,
item 16);
(2) Mandatory convertible securities (included in Schedule HC, item 19(a)); and
(3) Subordinated notes and debentures reported in Schedule HC, item 19(a) (excluding limited-life preferred
stock and related surplus reported in Schedule HC,
item 19(a)).
Note, however, bank holding companies choosing to
continue to report their long-term debt that can be repaid
in more than one payment on the basis of their scheduled
contractual payments and their floating rate long-term
debt by earliest repricing opportunity should report the
following in this item:
(1) the dollar amount of floating or variable rate longterm debt that can be repriced in less than one year
even if few, if any, of the contractual payments are

HC-H-4

scheduled to be repaid within one year. If the multipayment debt has some contractual payments scheduled to be repaid within one year, but cannot be
repriced for one year or more, include the dollar
amount of the contractual payments to be repaid
within one year. (See general instructions for this
schedule.)
(2) the dollar amount of the scheduled contractual payments that are to be repaid in less than one year if the
long-term debt has fixed or predetermined rates. (See
general instructions for this schedule.)
Exclude from this item commercial paper, demand notes
issued to the U.S. Treasury, and other borrowings that
had a remaining maturity of one year or less, mortgage
indebtedness and obligations under capitalized leases
with a remaining maturity of more than one year that is
reported in Schedule HC, item 16, and limited-life preferred stock reported in Schedule HC, item 19(a).
Line Item 4 Variable rate preferred stock
(includes both limited-life and perpetual preferred
stock).
Report the total amount outstanding of both limited-life
(reported in Schedule HC, item 19(a)), and perpetual
preferred stock that has a floating or adjustable rate (as
defined above).
(See the Glossary entry for ‘‘preferred stock,’’ for a
definition of limited-life or perpetual preferred stock.)
Line Item 5 Long-term debt reported in
Schedule HC, item 19(a) on the Balance Sheet that
is scheduled to mature within one year.
Report all debt issued by the consolidated bank holding
company and reported in Schedule HC, item 19(a),
‘‘Subordinated notes and debentures,’’ that is scheduled
to mature within one year, regardless whether the debt
has fixed or floating rates.
Include in this item the amount of such debt issued by the
consolidated bank holding company that is redeemable at
the option of the holder within one year, even when the
debt is scheduled to mature in more than one year.

Schedule HC-H

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Insurance-Related Underwriting Activities
(Including Reinsurance)
Schedule HC-I

General Instructions

Line Item 1

Schedule HC-I, Insurance-Related Underwriting Activities (Including Reinsurance), must be submitted by all
bank holding companies on a consolidated basis. Report
all items in this schedule in accordance with generally
accepted accounting principles (GAAP). Include all
insurance enterprises subject to FAS 60.

Report reinsurance recoverables from unaffiliated property casualty reinsurers only.

The term ‘‘subsidiary,’’ as defined in Section 225.2 of
Federal Reserve Regulation Y, generally includes companies that are 25 percent or more owned or controlled by
another company. However, for purposes of reporting
‘‘Total Assets’’ in part I, item 2 and part II, item 3, only
include the consolidated assets of those insurance underwriting and reinsurance subsidiaries that are consolidated
for financial reporting purposes under GAAP and the net
investments in unconsolidated subsidiaries and associated companies that are accounted for under the equity
method of accounting. For purposes of reporting ‘‘Total
Equity’’ in part I, item 5 and part II, item 6, include the
equity of subsidiaries that are fully consolidated under
GAAP. In addition, ‘‘Net Income’’ in part I, item 6 and
Part II, item 7, should include the net income of subsidiaries that are consolidated under GAAP and the reporting
bank holding company’s proportionate share of the net
income of unconsolidated subsidiaries and associated
companies that are accounted for under the equity method
of accounting.
See the Glossary entries for additional information on the
following terms: (1) Contractholder, (2) Insurance Commissions, (3) Insurance Underwriting, (4) Policyholder,
(5) Insurance Premiums, (6) Reinsurance, (7) Reinsurance Recoverables, and (8) Separate Accounts.

Part I.

Property and Casualty

Assets
FR Y-9C
Schedule HC-I

March 2007

Line item 2

Reinsurance recoverables.

Total assets.

Report the amount of total consolidated assets that are
specific to property casualty insurance underwriting
activities of the bank holding company. Include in total
assets the assets of all legal entities that are considered to
be an integral part of the company’s property casualty
insurance underwriting activities.

Liabilities
Line item 3
reserves.

Claims and claims adjustment expense

Report the liability for unpaid claims and claims adjustment expense reserves, which represents the estimated
ultimate cost of settling claims, net of estimated recoveries, and including all costs expected to be incurred in
connection with the settlement of unpaid claims. Such
costs are accrued when an insured event occurs.
Line item 4

Unearned premiums.

Report the reserve for unearned premiums. Unearned
premiums represent the policy premiums associated with
the unexpired portion of the term of coverage.
Line item 5

Total equity.

Report the total equity capital of property casualty underwriting subsidiaries that are consolidated under GAAP.
Line item 6

Net income.

Report the consolidated net income attributable to property casualty insurance underwriting related activities of
the bank holding company. Include the net income of all
legal entities that are considered to be an integral part of
HC-I-1

Schedule HC-I

the bank holding company’s property and casualty insurance underwriting activities.

Liabilities

Part II.

Report the liability for future policy benefits, which
represents the present value of future policy benefits to
be paid to or on behalf of policyholders and related
expenses less the present value of future net premiums.
Also include contractholder funds that represent receipts
from the issuance of universal life, corporate owned life
insurance, pension investment and certain deferred annuity contracts.

Life and Health

Assets
Line Item 1

Reinsurance recoverables.

Report reinsurance recoverables from unaffiliated life
and health reinsurers only.
Line item 2

Separate account assets.

Line item 4 Policyholder benefits and
contractholder funds.

Line item 5

Separate account liabilities.

Report all assets qualifying for separate account summary total presentation in the insurer’s balance sheet.
Include assets related to products in which the contractholder and not the insurer retains all or most of the
investment and/or interest rate risk.

Report all liabilities qualifying for separate account
summary presentation in the insurer’s balance sheet.

Line item 3

Line item 7

Total assets.

Report the amount of total consolidated assets that are
specific to life and health insurance underwriting activities of the bank holding company. Include in total assets
the assets of all legal entities that are considered to be an
integral part of the company’s life and health insurance
underwriting activities.

HC-I-2

Line item 6

Total equity.

Report the equity capital of life and health underwriting
subsidiaries that are consolidated under GAAP.
Net income.

Report the consolidated net income attributable to life
and health insurance underwriting related activities of the
bank holding company. Include the net income of all
legal entities that are considered to be an integral part of
the bank holding company’s life and health insurance
underwriting activities.

Schedule HC-I

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Quarterly Averages
Schedule HC-K

General Instructions

Line Item 3

Loans and leases.

Report for the items on this schedule the average of the
balances as of the close of business for each day for the
calendar quarter or an average of the balances as of the
close of business on each Wednesday during the calendar
quarter. For days that the bank holding company (or any
of its consolidated subsidiaries or branches) is closed
(e.g., Saturdays, Sundays, or holidays), use the amount
outstanding from the previous business day. An office is
considered closed if there are no transactions posted to
the general ledger as of that date.

Report the quarterly average for all loans and leases, net
of unearned income, in both domestic and foreign offices
of the reporting bank holding company (as defined for
Schedule HC-C, items 1 through 11).
Line Item 4(a)

Trading assets.

Report the quarterly average for the fully consolidated
bank holding company for trading assets (as defined for
Schedule HC, item 5). Trading assets include derivatives
with positive fair values.

Assets
Line Item 1

Securities.

Report the quarterly average for the fully consolidated
bank holding company’s holdings of securities. When
calculating quarterly averages for securities (not held for
trading) for purposes of this schedule, report the quarterly average amortized cost (or historical cost for equity
securities) for both held-to-maturity and available-forsale securities. Securities consist of U.S. Treasury and
U.S. Government agency obligations (as defined for
Schedule HC-B, items 1 and 2), state and local securities
(as defined Schedule HC-B, item 3), mortgage-backed
securities (MBS) (as defined for Schedule HC-B, item 4),
asset-backed securities (ABS) (as defined for Schedule HC-B, item 5), other domestic debt securities (as
defined for Schedule HC-B, item 6(a)), foreign debt
securities (as defined for Schedule HC-B, item 6(b)), and
investments in mutual funds and other equity securities
with readily determinable fair values (as defined for
Schedule HC-B, item 7).
Line Item 2 Federal funds sold and securities
purchased under agreements to resell.
Report the quarterly average for federal funds sold and
securities purchased under agreements to resell (as
defined in Schedule HC, item 3).
FR Y-9C
Schedule HC-K

March 2007

Line Item 4(b)

Other earning assets.

Report the quarterly average for those other assets that
the bank holding company considers earning assets.
Line Item 5

Total consolidated assets.

Report the quarterly average for the fully consolidated
bank holding company’s total assets (as defined for
Schedule HC, item 12, ‘‘Total assets’’). When calculating
the quarterly average total consolidated assets for purposes of this schedule, reflect all debt securities (not held
for trading) at amortized cost, available-for-sale equity
securities with readily determinable fair values at the
lower of cost or fair value, and equity securities without
readily determinable fair values at historical cost. In
addition, to the extent that net deferred tax assets included
in the bank holding company’s total assets, if any,
include the deferred tax effects of any unrealized holding
gains and losses on available-for-sale debt securities,
these deferred tax effects may be excluded from the
determination of the quarterly average for total
consolidated assets. If these deferred tax effects are
excluded, this treatment must be followed consistently
over time.
This item is not the sum of items 1 through 4(b).
HC-K-1

Schedule HC-K

Liabilities

Line Item 9

Line Item 6 Interest-bearing deposits (domestic).
Report the quarterly average for all interest-bearing
deposits held in domestic offices of depository institutions that are consolidated subsidiaries of the bank
holding company or of its subsidiaries. Include all time
and savings deposits in domestic offices (as defined for
Schedule HC-E, items 1(b) through 1(e) and items 2(b)
through 2(e)).

Report the quarterly average for the fully consolidated
bank holding company’s other borrowed money (as
defined for Schedule HC, item 16).

Line Item 7 Interest-bearing deposits (foreign).
Report the quarterly average for interest- bearing deposits in foreign offices of depository institutions that are
consolidated subsidiaries of the reporting bank holding
company, Edge and Agreement subsidiaries, and IBFs (as
defined for Schedule HC, item 13(b)(2), ‘‘Interestbearing’’).
Line Item 8 Federal funds purchased and
securities sold under agreements to repurchase.
Report the quarterly average for federal funds purchased
and securities sold under agreements to repurchase (as
defined in Schedule HC, item 14).

HC-K-2

All other borrowed money.

Included are commercial paper and all other borrowed
money regardless of maturity.

Line Item 10

Not applicable.

Line Item 11 Equity capital (excludes limited-life
preferred stock).
Report the quarterly average for the fully consolidated
bank holding company’s equity capital (as defined for
Schedule HC, item 28). For purposes of this schedule,
include net unrealized losses on marketable equity securities, other net unrealized gains and losses on availablefor-sale securities, and accumulated net gains (losses) on
cash flow hedges when calculating average equity
capital.

Schedule HC-K

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Derivatives and Off-Balance-Sheet Items
Schedule HC-L

General Instructions
Report on a fully consolidated basis the following
selected commitments, contingencies, and other offbalance sheet items. Exclude from this schedule contingencies arising in connection with litigation. For those
asset-backed commercial paper program conduits that the
reporting bank holding company consolidates onto its
balance sheet (Schedule HC) in accordance with FASB
Interpretation No. 46 (Revised), any credit enhancements
and liquidity facilities the bank holding company provides to the programs should not be reported in Schedule HC-L. In contrast, for conduits that the reporting
bank holding company does not consolidate, the bank
holding company should report the credit enhancements
and liquidity facilities it provides to the programs in the
appropriate items of Schedule HC-L.
Line Item 1

Unused commitments.

Report in the appropriate subitem the unused portions of
commitments to make or purchase extensions of credit in
the form of loans or participations in loans, lease financing receivables, or similar transactions. Exclude commitments that meet the definition of a derivative and must be
accounted for in accordance with FASB Statement No.
133, which should be reported in Schedule HC-L, item
11. Include loan commitments that do not meet the
definition of a derivative that the bank holding company
has elected to report at fair value under a fair value
option.
Report the unused portions of all credit card lines in item
1(b). Report in items 1(a) and 1(c) through 1(e) the
unused portions of commitments for which the bank
holding company has charged a commitment fee or other
consideration, or otherwise has a legally binding commitment. Such commitments are to be reported in the
appropriate subitem regardless of whether they contain
“material adverse change” clauses or other provisions
FR Y-9C
Schedule HC-L

March 2007

that are intended to relieve the issuer of its funding
obligations under certain conditions and regardless of
whether they are unconditionally cancelable at any time.
In the case of commitments for syndicated loans, report
only the bank holding company’s proportional share of
the commitment. Unused commitments are to be reported
gross, i.e., include in this item the amounts of commitments acquired from and conveyed to others.
If the bank holding company offers an overdraft protection program and it advises account holders of the
available amount of overdraft protection, for example,
when accounts are opened or on depositors’ account
statements or ATM receipts, report the available amount
of overdraft protection on depositors’ accounts in item
1(e).
Include loan proceeds that the bank holding company is
obligated to advance, such as loan draws, construction
progress payments, seasonal or living advances to farmers under prearranged lines of credit, rotating or revolving credit arrangements, including retail credit cards, or
similar transactions. Forward agreements and commitments to issue a commitment at some point in the future
are to be reported in this item.
For purposes of reporting the unused portions of revolving asset-based lending commitments, the legally binding
commitment is defined as the amount a bank holding
company is obligated to fund — as of the report date —
based on the contractually agreed upon terms. In the case
of revolving asset-based lending, the unused portions of
such legally binding commitments should be measured as
the difference between (a) the lesser of the contractual
borrowing base (i.e., eligible collateral times the advance
rate) or the note commitment limit, and (b) the sum of
outstanding loans and letters of credit under the commitment. The note commitment limit is the overall maximum loan amount beyond which the bank holding company will not advance funds regardless of the amount of
HC-L-1

Schedule HC-L

collateral posted. This definition of “legally binding
commitment” is applicable only to revolving asset-based
lending, which is a specialized form of secured lending in
which a borrower uses current assets (e.g., accounts
receivable and inventory) as collateral for a loan. The
loan is structured so that the amount of credit is limited
by the value of the collateral.
In addition, include revolving underwriting facilities
(RUFs), note issuance facilities (NIFs), and other similar
arrangements. These are facilities under which a borrower can issue on a revolving basis short-term paper in
its own name, but for which the underwriting bank
holding companies have a legally binding commitment
either to purchase any notes the borrower is unable to sell
by the rollover date or to advance funds to the borrower.

Also include the unused portions of commitments to
extend credit for the specific purpose of acquiring commercial real estate, financing land development (i.e., the
process of improving land—laying sewers, water pipes,
etc.) preparatory to erecting new structures or the on-site
construction of industrial, commercial, residential, or
farm buildings, provided that such commitments, when
funded, would be reportable as loans secured by real
estate in Schedule HC-C, item 1(a). For this item,
‘‘construction’’ includes not only construction of new
structures, but also additions or alterations to existing
structures and the demolition of existing structures to
make way for new structures. Also, include in this item
loan proceeds the bank holding company is obligated to
advance as construction progress payments.

Line Item 1(a) Revolving, open-end loans secured
by 1–4 family residential properties, e.g., home
equity lines.

Do not include general lines of credit that a borrower, at
its option, may draw down to finance construction and
land development. (Report this in item 1(c)(2) or 1(e)
below, as appropriate).

Report the unused portion of commitments to extend
credit under revolving, open-end lines of credit secured
by 1 to 4 family residential properties. These lines,
commonly known as home equity lines, are typically
secured by a junior lien and are usually accessible by
check or credit card.
Line Item 1(b)

Credit card lines.

Report the unused portion of all commitments to extend
credit both to individuals for household, family, and other
personal expenditures and to commercial or industrial
enterprises through credit cards. Exclude home equity
lines accessible through credit cards. Bank holding companies may report unused credit card lines as of the end
of their customers’ last monthly billing cycle prior to the
report date or as of the report date.
Line Item 1(c)(1) Commitments to fund
commercial real estate, construction, and land
development loans secured by real estate.
Report the unused portion of commitments to extend
credit for the specific purpose of financing commercial
and multifamily residential properties (e.g., business and
industrial properties, hotels, motels, churches, hospitals,
and apartment buildings), provided that such commitments, when funded, would be reportable as either loans
secured by multifamily residential properties in Schedule HC-C, item 1(d), or loans secured by nonfarm
nonresidential properties in Schedule HC-C, item 1(e).
HC-L-2

The sum of items 1(c)(1)(a) and 1(c)(1)(b), below, must
equal Schedule HC-L, item 1(c)(1).
Line Item 1(c)(1)(a) 1-4 family residential
construction loan commitments.
Report the unused portions of commitments to extend
credit for the specific purpose of constructing 1-4 family
residential properties, provided that such commitments,
when funded, would be reportable as loans secured by
real estate in Schedule HC-C, Memorandum item 7(a),
“1-4 family residential construction loans.”
Line Item 1(c)(1)(b) Commercial real estate, other
construction loan, and land development loan
commitments.
Report the unused portions of all other commitments to
fund loans secured by real estate, i.e., all commitments to
fund loans secured by real estate (as defined for Schedule
HC-L, item 1(c)(1)) other than commitments to fund 1-4
family residential construction (as defined for Schedule
HC-L, item 1(c)(1)(a)).
Line Item 1(c)(2) Commitments to fund
commercial real estate, construction, and land
development loans NOT secured by real estate.
Report in this item the unused portions of all commitments to extend credit for the specific purpose of financing commercial and residential real estate activities, e.g.,
Schedule HC-L

FR Y-9C
March 2007

Schedule HC-L

acquiring, developing and renovating commercial and
residential real estate provided that when funded they
would be reported in Schedule HC-C, items 2 through 9.
Include in this item loan proceeds that the bank holding
company or its consolidated subsidiaries are obligated to
advance as construction progresses.
Such commitments generally may include:
(1) commitments to extend credit for the express purpose
of financing real estate ventures as evidenced by
underlying commitment documentation or other circumstances connected with the commitment; or
(2) commitments made to organizations or individuals
80 percent of whose revenue or assets are derived
from or consist of real estate ventures or holdings.
Exclude any commitments that when funded would be
reported in Schedule HC-C, item 1. Also exclude commitments made to commercial and industrial firms where
the sole purpose for the financing is to construct a factory
or office building to house the company’s operations or
employees.
Line Item 1(d)

Securities underwriting.

Report the unsold portion of the reporting bank holding
company’s own takedown in securities underwriting
transactions on a consolidated basis. Include NIFs and
RUFs in this item.
Line Item 1(e)

Other unused commitments.

Report the unused portion of all other commitments not
reportable above. Include commitments to extend credit
through overdraft facilities or commercial lines of credit,
retail check credit and related plans, and those overdraft
protection programs in which the bank holding company
advises account holders of the available amount of
protection. Also include commitments to extend credit
secured by 1–4 family residential properties, except (a)
revolving, open-end lines of credit secured by 1–4 family
residential properties (e.g., home equity lines) which
should be reported in Schedule HC-L, item 1(a), above,
(b) commitments for 1–4 family residential construction
and land development loans (that are secured by such
properties) which should be reported in Schedule HC-L,
item 1(c)(1) above, and (c) commitments that meet the
definition of a derivative and must be accounted for in
accordance with FASB Statement No. 133, which should
be reported in Schedule HC-L, item 11.
FR Y-9C
Schedule HC-L

March 2007

Line Items 2 and 3 General Instructions for
Standby Letters of Credit.
Originating bank holding companies (or their subsidiaries) must report in items 2 and 3 the full amount
outstanding and unused of financial and performance
standby letters of credit, respectively. Include those
standby letters of credit that are collateralized by cash
on deposit, that have been acquired by others, and in
which participations have been conveyed to others where
(a) the originating and issuing bank holding company is
obligated to pay the full amount of any draft drawn under
the terms of the standby letter of credit and (b) the
participating institutions have an obligation to partially or
wholly reimburse the originating bank holding company,
either directly in cash or through a participation in a loan
to the account party.
For syndicated standby letters of credit where each bank
holding company has a direct obligation to the beneficiary, each institution must report only its share in the
syndication. Similarly, if several organizations participate in the issuance of a standby letter of credit under a
bona fide binding agreement that provides that (a) regardless of any event, each participant shall be liable only up
to a certain percentage or to a certain amount and (b) the
beneficiary is advised and has agreed that each participating organization is only liable for a certain portion of the
entire amount, each bank holding company shall report
only its proportional share of the total standby letter of
credit.
For a financial or performance standby letter of credit
that is in turn backed by a financial standby letter of
credit issued by another institution, each bank holding
company must report the entire amount of the standby
letter of credit it has issued in either item 2 or 3 below, as
appropriate. The amount of the reporting bank holding
company’s financial or performance standby letter of
credit that is backed by the other institution’s financial
standby letter of credit must be included in either
item 2(a) or 3(a) as appropriate, since the backing of
standby letters of credit has substantially the same effect
as the conveying of participations in standby letters of
credit.
Also, include all financial and performance guarantees
issued by foreign offices of the reporting bank holding
company pursuant to Section 211.4(a)(1) of Federal
Reserve Regulation K or Section 347.3(c)(1) of the FDIC
Rules and Regulations.
HC-L-3

Schedule HC-L

Line Item 2 Financial standby letters of credit and
foreign office guarantees.

the Glossary entry for ‘‘letter of credit’’ for further
information).

Report the amount outstanding and unused as of the
report date of all financial standby letters of credit (and
all legally binding commitments to issue financial standby
letters of credit) issued by any office of the bank holding
company or its consolidated subsidiaries. A financial
standby letter of credit irrevocably obligates the bank
holding company to pay a third-party beneficiary when a
customer (account party) fails to repay an outstanding
loan or debt instrument. (See the Glossary entry for
‘‘letter of credit’’ for further information).

Exclude from performance standby letters of credit the
following:

Exclude from financial standby letters of credit the
following:
(1) Financial standby letters of credit where the beneficiary is a consolidated subsidiary of the bank holding
company.
(2) Performance standby letters of credit.
(3) Signature or endorsement guarantees of the type
associated with the clearing of negotiable instruments or securities in the normal course of business.
Line Item 2(a) Amount of financial standby letters
of credit conveyed to others.
Report that portion of the consolidated bank holding
company’s total contingent liability for financial standby
letters of credit reported in item 2 that the holding
company has conveyed to others. Also, include that
portion of the reporting bank holding company’s financial standby letters of credit that are backed by other
organizations’ financial standby letters of credit, as well
as the portion that participating bank holding companies
have reparticipated to others. Participations and backings
may be for any part or all of a given obligation.
Line Item 3 Performance standby letters of credit
and foreign office guarantees.
Report the amount outstanding and unused as of the
report date of all performance standby letters of credit
(and all legally binding commitments to issue performance standby letters of credit) issued by any office of
the bank holding company or its consolidated subsidiaries. A performance standby letter of credit irrevocably
obligates the bank holding company to pay a third-party
beneficiary when a customer (account party) fails to
perform some contractual non-financial obligation. (See
HC-L-4

(1) Performance standby letters of credit where the beneficiary is a consolidated subsidiary of the bank
holding company.
(2) Financial standby letters of credit.
(3) Signature or endorsement guarantees of the type
associated with the clearing of negotiable instruments or securities in the normal course of business.
Line Item 3(a) Amount of performance standby
letters of credit conveyed to others.
Report that portion of the consolidated bank holding
company’s total contingent liability for performance
standby letters of credit reported in item 3 that the
holding company has conveyed to others. Also, include
that portion of the reporting bank holding company’s
performance standby letters of credit that are backed by
other organizations’ financial standby letters of credit, as
well as the portion that participating bank holding companies have reparticipated to others. Participations and
backings may be for any part or all of a given obligation.
Line Item 4
credit.

Commercial and similar letters of

Report the amount outstanding and unused as of the
report date of issued or confirmed commercial letters
of credit, travelers’ letters of credit not issued for money
or its equivalent, and all similar letters of credit, but
excluding standby letters of credit (which are to be
reported in item 2 and 3 above). (See the Glossary entry
for ‘‘letter of credit.’’) Legally binding commitments to
issue commercial letters of credit are to be reported in
this item.
Travelers’ letters of credit or other letters of credit issued
for money or its equivalent by the reporting bank holding
company or its agents should be reported as demand
deposit liabilities in Schedule HC-E.
Line Item 5

Not applicable.

Line Item 6

Securities lent.

Report the appropriate amount of all securities lent
against collateral or on an uncollateralized basis. Report
Schedule HC-L

FR Y-9C
March 2007

Schedule HC-L

the book value of bank holding company-owned securities that have been lent. In addition, for customers who
have been indemnified against any losses by the reporting
bank holding company or its consolidated subsidiaries,
report the market value as of the report date of such
customers’ securities, including customers’ securities
held in the reporting bank holding company’s trust
department, that have been lent. If the reporting bank
holding company or its consolidated subsidiaries have
indemnified their customers against any losses on their
securities that have been lent by the company or its
subsidiaries, the commitment to indemnify—either
through a standby letter of credit or other means—should
not be reported in any other item on Schedule HC-L.
Line Item 7

Credit derivatives.

Report in the appropriate subitem and column the
notional amount and fair value of all credit derivatives. In
general, credit derivatives are arrangements that allow
one party (the ‘‘beneficiary’’) to transfer the credit risk of
a ‘‘reference asset’’ or ‘‘reference entity’’ to another party
(the ‘‘guarantor’’). Report the notional amounts of credit
derivatives by type of instrument in Schedule HC-L,
items 7(a)(1) through 7(a)(4). Report the gross positive
and negative fair values of all credit derivatives in
Schedule HC-L, items 7(b)(1) and 7(b)(2). For both the
notional amounts and gross fair values, report credit
derivatives for which the bank holding company is the
guarantor in column A and those on which the bank
holding company is the beneficiary in column B.
All credit derivative transactions within the consolidated
bank holding company should be reported on a net basis,
i.e., intracompany transactions should not be reported in
this item. No other netting of contracts is permitted for
purposes of this item. Therefore, do not net the notional
amounts or fair values of: (1) credit derivatives with third
parties on which the reporting bank holding company is
the beneficiary against credit derivatives with third parties on which the reporting bank holding company is the
guarantor, or (2) contracts subject to bilateral netting
agreements. The notional amount of credit derivatives
should not be included in Schedule HC-L, items 11
through 13, and the fair value of credit derivatives should
not be included in Schedule HC-L, item 14.
Line Item 7(a)

Notional amounts.

Report in the appropriate subitem and column the
notional amount (stated in U.S. dollars) of all credit
FR Y-9C
Schedule HC-L

March 2007

derivatives. For tranched credit derivative transctions
that relate to an index, e.g., the Dow Jones CDX NA
index, report as the notional amount the dollar amount of
the tranche upon which the reporting bank holding
company’s credit derivative cash flows are based.
Line Item 7(a)(1)

Credit default swaps.

Report in the appropriate column the notional amount of
all credit default swaps. A credit default swap is a
contract in which a guarantor (risk taker), for a fee,
agrees to reimburse a beneficiary (risk hedger) for any
losses that occur due to a credit event on a particular
entity, called the ‘‘reference entity.’’ If there is no credit
default event (as defined by the derivative contract), then
the guarantor makes no payments to the beneficiary and
receives only the contractually specified fee. Under standard industry definitions, a credit event is normally
defined to include bankruptcy, failure to pay, and restructuring. Other potential credit events include obligation
acceleration, obligation default, and repudiation/
moratorium.
Line item 7(a)(2)

Total return swaps.

Report in the appropriate column the notional amount of
all total return swaps. A total return swap transfers the
total economic performance of a reference asset, which
includes all associated cash flows, as well as capital
appreciation or depreciation. The protection buyer
receives a floating rate of interest and any depreciation on
the reference asset from the protection seller. The protection seller (guarantor) has the opposite profile. The
guarantor receives cash flows on the reference asset, plus
any appreciation, and it pays any depreciation to the
beneficiary, plus a floating interest rate. A total return
swap may terminate upon a default of the reference asset.
Line Item 7(a)(3)

Credit options.

Report in the appropriate column the notional amount of
all credit options. A credit option is a structure that
allows investors to trade or hedge changes in the credit
quality of the reference asset. For example, in a credit
spread option, the option writer (guarantor) assumes the
obligation to purchase or sell the reference asset at a
specified ‘‘strike’’ spread level. The option purchaser
(beneficiary) buys the right to sell the reference asset to,
or purchase it from, the option writer at the strike spread
level.
HC-L-5

Schedule HC-L

Line Item 7(a)(4)

Other credit derivatives.

Report in the appropriate column the notional amount of
all other credit derivatives. Other credit derivatives consist of any credit derivatives not reportable as a credit
default swap, a total return swap, or a credit option.
Credit linked notes are cash securities and should not be
reported as other credit derivatives.
Line Item 7(b)

Gross fair values.

Report in the appropriate subitem and column the gross
fair values of all credit derivatives.
As defined in FASB Statement No. 133, fair value is the
amount at which an asset (liability) could be bought
(incurred) or sold (settled) in a current transaction
between willing parties, that is, other than in a forced or
liquidation sale. Quoted market prices in active markets
are the best evidence of fair value and should be used as
the basis for the measurement, if available. If a quoted
market price is available, the fair value is the product of
the number of trading units times that market price. If a
quoted market price is not available, the estimate of fair
value should be based on the best information available
in the circumstances. The estimate of fair value should
consider prices for similar assets or similar liabilities and
the results of valuation techniques to the extent available
in the circumstances. For purposes of this item, the
reporting bank holding company should determine the
fair value of its credit derivative contracts in the same
manner that it determines the fair value of these contracts
for other financial reporting purposes.
Line Item 7(b)(1)

Gross positive fair value.

Report in the appropriate column the total fair value of
those credit derivatives reported in Schedule HC-L, items
7(a)(1) through 7(a)(4), above, with positive fair values.
Line Item 7(b)(2)

Gross negative fair value.

Report in the appropriate column the total fair value of
those credit derivatives reported in Schedule HC-L, items
7(a)(1) through 7(a)(4), above, with negative fair values.
Report the total fair value as an absolute value; do not
enclose the total fair value in parentheses or use a minus
(-) sign.
Line Item 8

Spot foreign exchange contracts.

Report the gross amount (stated in U.S. dollars) of all
spot contracts committing the reporting bank holding
HC-L-6

company to purchase foreign (non-U.S.) currencies and
U.S. dollar exchange that are outstanding as of the report
date. All transactions within the bank holding company
should be reported on a consolidated basis.
A spot contract is an agreement for the immediate
delivery, usually within two business days, of a foreign
currency at the prevailing cash market rate. Spot contracts are considered outstanding (i.e., open) until they
have been cancelled by acquisition or delivery of the
underlying currencies.
Only one side of a spot foreign exchange contract is to be
reported. In those transactions where foreign (non-U.S.)
currencies are bought or sold against U.S. dollars, report
only that side of the transaction that involves the foreign
(non-U.S.) currency. For example, if the reporting bank
holding company enters into a spot contract which
obligates the bank holding company to purchase U.S.
dollar exchange against which it sells Japanese yen, then
the bank holding company would report (in U.S. dollar
equivalent values) the amount of Japanese yen sold in
this item. In cross-currency spot foreign exchange transactions, which involve the purchase and sale of two
non-U.S. currencies, only the purchase side is to be
reported (in U.S. dollar equivalent values).
Line Item 9 All other off-balance-sheet items
(exclude derivatives).
With the exceptions listed below, report all significant
types of off-balance-sheet items not covered in other
items of this schedule. Exclude off-balance-sheet derivative contracts that are reported elsewhere in Schedule HC-L.
Report only the aggregate amount of those types of
‘‘other off-balance sheet items’’ that individually exceed
10 percent of the bank holding company’s total equity
capital reported in Schedule HC, item 28. If the bank
holding company has no types of ‘‘other off-balance
sheet items’’ that individually exceed 10 percent of total
equity capital, report a zero or the word ‘‘none.’’
Disclose in items 9(a) through 9(g) each type of ‘‘other
off-balance sheet items’’ reportable in this item, and the
dollar amount of the off-balance sheet item, that individually exceeds 25 percent of the bank holding company’s
total equity capital reported in Schedule HC, item 28. For
each type of off-balance sheet item that exceeds this
disclosure threshold for which a preprinted caption has
not been provided, describe the item with a clear but
Schedule HC-L

FR Y-9C
March 2007

Schedule HC-L

concise caption in items 9(d) through 9(g). These descriptions should not exceed 50 characters in length (including
spacing between words).
Include the following as other off-balance-sheet items:
(1) Securities borrowed against collateral (other than
cash), or on an uncollateralized basis, for such purposes as a pledge against deposit liabilities or delivery against short sales. Report borrowed securities
that are fully collateralized by similar securities of
equivalent value at market value at the time they
were borrowed. For other borrowed securities, report
their market value as of the report date. (Report the
amount of securities borrowed in Schedule HC-L,
item 9(a), if this amount exceeds 25 percent of the
bank holding company’s total equity capital reported
in Schedule HC, item 28.)
(2) Contracts for the purchase and sale of when-issued
securities that are excluded from the requirements of
FASB Statement No. 133, as amended (and therefore
not reported as forward contracts in Schedule HC-L,
item 11(b), below), and accounted for on a settlementdate basis. (Report the amount of these commitments
in Schedule HC-L, item 9(b) or item 9(c), if this
amount exceeds 25 percent of the bank holding
company’s total equity capital reported in Schedule
HC, item 28.)
(3) Standby letters of credit issued by a Federal Home
Loan Bank on behalf of the reporting bank holding
company or its subsidiaries, which is the account
party on the letters of credit and therefore obligated
to reimburse the issuing Federal Home Loan Bank
for all payments made under the standby letters of
credit.
(4) Financial guarantee insurance that insures the timely
payment of principal and interest on bond issues.
(5) Letters of indemnity other than those issued in
connection with the replacement of lost or stolen
official checks.
(6) Shipside or dockside guarantees or similar guarantees relating to missing bills of lading or title documents and other document guarantees that facilitate
the replacement of lost or destroyed documents and
negotiable instruments.
Exclude the following from other off-balance-sheet items:
FR Y-9C
Schedule HC-L

March 2007

(1) All items that are required to be reported on the
balance sheet of the Consolidated Financial Statements for Bank Holding Companies, such as repurchase and resale agreements.
(2) Commitments to purchase property being acquired
for lease to others (report in item 1 above).
(3) Contingent liabilities arising in connection with litigation in which the reporting bank holding company
is involved.
(4) Signature or endorsement guarantees of the type
associated with the regular clearing of negotiable
instruments or securities in the normal course of
business.
Line item 10

Not applicable.

Line item 11 Gross amounts (e.g., notional
amounts) of derivatives contracts.
Report in the appropriate column and subitem the gross
par value (stated in U.S. dollars) (e.g., futures, forwards,
and option contracts) or the notional amount (stated in
U.S. dollars) (e.g., forward rate agreements and swaps),
as appropriate, of all contracts that meet the definition of
a derivative and must be accounted for in accordance
with FASB Statement No. 133. Include both freestanding
derivative contracts and embedded derivatives that must
be accounted for separately from their host contract
under Statement No. 133. Report each contract according
to its underlying risk exposure: interest rate, foreign
exchange, equity, and commodity and other. Contracts
with multiple risk characteristics should be classified
based upon the predominant risk characteristics at the
origination of the derivative. However, exclude from
Schedule HC-L, items 11 through 14, all credit derivatives, which should be reported in Schedule HC-L, item 7
above.
The notional amount or par value to be reported for a
derivative contract with a multiplier component is the
contract’s effective notional amount or par value. For
example, a swap contract with a stated notional amount
of $1,000,000 whose terms called for quarterly settlement of the difference between 5% and LIBOR multiplied by 10 has an effective notional amount of
$10,000,000.
All transactions within the bank holding company should
be reported on a consolidated basis (i.e., intercompany
transactions should be eliminated). No other netting of
HC-L-7

Schedule HC-L

contracts is permitted for purposes of this item. Therefore, do not net: (1) obligations of the reporting bank
holding company to purchase from third parties against
the bank holding company’s obligations to sell to third
parties, (2) written options against purchased options, or
(3) contracts subject to bilateral netting agreements.
For each column, the sum of Schedule HC-L, items 11(a)
through 11(e) must equal the sum of Schedule HC-L,
items 12 and 13.

Column Instructions
Column A Interest Rate Contracts
Interest rate contracts are contracts related to an interestbearing financial instrument or whose cash flows are
determined by referencing interest rates or another interest rate contract (e.g., an option on a futures contract to
purchase a Treasury bill). These contracts are generally
used to adjust the bank holding company’s interest rate
exposure or, if the bank holding company is an intermediary, the interest rate exposure of others. Interest rate
contracts include single currency interest rate swaps,
basis swaps, forward rate agreements, and interest rate
options, including caps, floors, collars, and corridors.

Only one side of a foreign currency transaction is to be
reported. In those transactions where foreign (non-U.S.)
currencies are bought or sold against U.S. dollars, report
only that side of the transaction that involves the foreign
(non-U.S.) currency. For example, if the reporting bank
holding company enters into a futures contract which
obligates the bank holding company to purchase U.S.
dollar exchange against which it sells Japanese yen, then
the bank holding company would report (in U.S. dollar
equivalent values) the amount of Japanese yen sold in
Schedule HC-L, item 11(a). In cross-currency transactions, which involve the purchase and sale of two
non-U.S. currencies, only the purchase side is to be
reported.
All amounts in column B are to be reported in U.S. dollar
equivalent values.

Column C

Equity Derivative Contracts

Equity derivative contracts are contracts that have a
return, or a portion of their return, linked to the price of a
particular equity or to an index of equity prices, such as
the Standard and Poor’s 500.

Exclude contracts involving the exchange of one or more
foreign currencies (e.g., cross-currency swaps and currency options) and other contracts whose predominant
risk characteristic is foreign exchange risk, which are to
be reported in column B as foreign exchange contracts.

The contract amount to be reported for equity derivative
contracts is the quantity, e.g., number of units, of the
equity instrument or equity index contracted for purchase
or sale multiplied by the contract price of a unit.

Unsettled securities transactions that exceed regular way
settlement time limit that is customary in each relevant
market must be reported as forward contracts in Schedule
HC-L, item 11(b).

Column D Commodity and Other Contracts

Column B

Foreign Exchange Contracts

Foreign exchange contracts are contracts to purchase
foreign (non-U.S.) currencies and U.S. dollar exchange in
the forward market, i.e., on an organized exchange or
in an over-the-counter market. A purchase of U.S. dollar
exchange is equivalent to a sale of foreign currency.
Foreign exchange contracts include cross-currency interest rate swaps where there is an exchange of principal,
forward foreign exchange contracts (usually settling three
or more business days from trade date), and currency
futures and currency options. Exclude spot foreign
exchange contracts which are to be reported in Schedule HC-L, item 8.
HC-L-8

Commodity contracts are contracts that have a return, or
a portion of their return, linked to the price of or to an
index of precious metals, petroleum, lumber, agricultural
products, etc. Commodity and other contracts also include
any other contracts that are not reportable as interest rate,
foreign exchange, or equity derivative contracts.
The contract amount to be reported for commodity and
other contracts is the quantity, e.g., number of units, of
the commodity or product contracted for purchase or sale
multiplied by the contract price of a unit.
The notional amount to be reported for commodity
contracts with multiple exchanges of principal is the
contractual amount multiplied by the number of remaining payments (i.e., exchanges of principal) in the contract.
Schedule HC-L

FR Y-9C
March 2007

Schedule HC-L

Line Item Instructions
Line Item 11(a)

Futures contracts.

Futures contracts represent agreements for delayed delivery of financial instruments or commodities in which the
buyer agrees to purchase and the seller agrees to deliver,
at a specified future date, a specified instrument at a
specified price or yield. Futures contracts are standardized and are traded on organized exchanges that act as the
counterparty to each contract.
Report, in the appropriate column, the aggregate par
value of futures contracts that have been entered into by
the reporting bank holding company and are outstanding
(i.e., open contracts) as of the report date. Do not report
the par value of financial instruments intended to be
delivered under such contracts if this par value differs
from the par value of the contracts themselves.
Contracts are outstanding (i.e., open) until they have
been cancelled by acquisition or delivery of the underlying financial instruments or by offset. Offset is the
liquidating of a purchase of futures through the sale of an
equal number of contracts of the same delivery month
on the same underlying instrument, or the covering of a
short sale of futures through the purchase of an equal
number of contracts of the same delivery month on the
same underlying instrument on the same exchange.
Column A, Interest Rate Futures. Report futures
contracts committing the reporting bank holding company to purchase or sell financial instruments and whose
predominant risk characteristic is interest rate risk. Some
of the more common interest rate futures include futures
on 90-day U.S. Treasury bills; 12-year GNMA passthrough securities; and 2-, 4-, 6-, and 10-year U.S.
Treasury notes.
Column B, Foreign Exchange Futures. Report the
gross amount (stated in U.S. dollars) of all futures
contracts committing the reporting bank holding company to purchase foreign (non-U.S.) currencies and U.S.
dollar exchange and whose predominant risk characteristic is foreign exchange risk.
A currency futures contract is a standardized agreement
for delayed delivery of a foreign (non-U.S.) currency or
U.S. dollar exchange in which the buyer agrees to
purchase and the seller agrees to deliver, at a specified
future date, a specified amount at a specified exchange
rate.
FR Y-9C
Schedule HC-L

March 2007

Column C, Equity Derivative Futures. Report futures
contracts committing the reporting bank holding company to purchase or sell equity securities or instruments
based on equity indexes such as the Standard and Poor’s
500, or the Nikkei.
Column D, Commodity and Other Futures. Report
the contract amount for all futures contracts committing
the reporting bank holding company to purchase or sell
commodities such as agricultural products (e.g., wheat,
coffee), precious metals (e.g., gold, platinum), and nonferrous metals (e.g., copper, zinc). Include any other
futures contract that is not reportable as an interest rate,
foreign exchange, or equity derivative contract in column A, B, or C.
Line Item 11(b)

Forward contracts.

Forward contracts represent agreements for delayed
delivery of financial instruments or commodities in which
the buyer agrees to purchase and the seller agrees to
deliver, at a specified future date, a specified instrument
or commodity at a specified price or yield. Forward
contracts are not traded on organized exchanges and their
contractual terms are not standardized.
Report the notional value of forward contracts that
have been entered into by the reporting bank holding
company and are outstanding (i.e., open contracts) as
of the report date. Do not report financial instruments
intended to be delivered under such contracts if this
notional value differs from the notional value of the
contracts themselves.
Contracts are outstanding (i.e., open) until they have
been cancelled by acquisition or delivery of the underlying financial instruments or settled in cash. Such contracts can only be terminated, other than by receipt of the
underlying asset, by agreement of both buyer and seller.
Include as forward contracts in this item contracts for the
purchase and sale of when-issued securities that are not
excluded from the requirements of FASB Statement
No. 133, as amended. Report contracts for the purchase
and sale of when-issued securities that are excluded from
the requirements of FASB Statement No. 133, as amended,
and accounted for on a settlement-date basis as ‘‘Other
off-balance-sheet items’’ in Schedule HC-L, item 9,
subject to the existing reporting threshold for this item.
HC-L-9

Schedule HC-L

Column A, Interest Rate Forwards. Report forward
contracts committing the reporting bank holding company to purchase or sell financial instruments and whose
predominant risk characteristic is interest rate risk.
Include in this item firm commitments (i.e., commitments that have a specific interest rate, selling date, and
dollar amount) to sell loans secured by 1-to-4 family
residential properties that meet the definition of a
derivative contract under FASB Statement No. 133.
Column B, Foreign Exchange Forwards. Report the
gross amount (stated in U.S. dollars) of all forward
contracts committing the reporting bank holding company to purchase foreign (non-U.S.) currencies and U.S.
dollar exchange and whose predominant risk characteristic is foreign exchange risk.
A forward foreign exchange contract is an agreement for
delayed delivery of a foreign (non-U.S.) currency or U.S.
dollar exchange in which the buyer agrees to purchase
and the seller agrees to deliver, at a specified future date,
a specified amount at a specified exchange rate.
Column C, Equity Derivative Forwards. Report forward contracts committing the reporting bank holding
company to purchase or sell equity instruments.
Column D, Commodity and Other Forwards. Report
the contract amount for all forward contracts committing
the reporting bank holding company to purchase or sell
commodities such as agricultural products (e.g., wheat,
coffee), precious metals (e.g., gold, platinum), and nonferrous metals (e.g., copper, zinc). Include any other
forward contract that is not reportable as an interest rate,
foreign exchange, or equity derivative contract in column
A, B, or C.

financial instrument or commodity at the option of the
buyer of the contract. A put option contract obligates
the seller of the contract to purchase some financial
instrument or commodity at the option of the buyer of the
contract. A call option contract obligates the seller of the
contract to sell some financial instrument or commodity
at the option of the buyer of the contract.
Line Item 11(c)(1)

Written options.

Report in this item the aggregate par value of the
financial instruments or commodities that the reporting
bank holding company has, for compensation (such as a
fee or premium), obligated itself to either purchase or sell
under exchange-traded option contracts that are outstanding as of the report date.
Column A, Written Exchange-Traded Interest Rate
Options. For exchange-traded option contracts obligating the reporting bank holding company to either purchase or sell an interest rate futures contract and whose
predominant risk characteristic is interest rate risk, report
the par value of the financial instrument underlying the
futures contract. An example of such a contract is a
Chicago Board Options Exchange option on the 13-week
Treasury bill rate.

Option contracts convey either the right or the obligation,
depending upon whether the reporting bank holding
company is the purchaser or the writer, respectively,
to buy or sell a financial instrument or commodity at a
specified price by a specified future date. Some options
are traded on organized exchanges.

Column B, Written Exchange-Traded Foreign
Exchange Options. Report in this item the gross
amount (stated in U.S. dollars) of foreign (non-U.S.)
currency and U.S. dollar exchange that the reporting bank
holding company has, for compensation, obligated itself
to either purchase or sell under exchange-traded option
contracts whose predominant risk characteristic is foreign exchange risk. In the case of option contracts
obligating the reporting bank holding company to either
purchase or sell a foreign exchange futures contract,
report the gross amount (stated in U.S. dollars) of the
foreign (non-U.S.) currency underlying the futures contract. Exchange-traded options on major currencies such
as the Japanese Yen and British Pound Sterling and
options on futures contracts of major currencies are
examples of such contracts.

The buyer of an option contract has, for compensation
(such as a fee or premium), acquired the right (or option)
to sell to, or purchase from, another party some financial
instrument or commodity at a stated price on a specified
future date. The seller of the contract has, for such
compensation, become obligated to purchase or sell the

Column C, Written Exchange-Traded Equity Derivative Options. Report the contract amount for those
exchange-traded option contracts where the reporting
bank holding company has obligated itself, for compensation, to purchase or sell an equity instrument or equity
index.

Line Item 11(c)

HC-L-10

Exchange-traded option contracts.

Schedule HC-L

FR Y-9C
March 2007

Schedule HC-L

Column D, Written Commodity and Other ExchangeTraded Options. Report the contract amount for those
exchange-traded option contracts where the reporting
bank holding company has obligated itself, for compensation, to purchase or sell a commodity or product.
Include any other written, exchange-traded option that is
not reportable as an interest rate, foreign exchange, or
equity derivative contract in columns A, B, or C.
Line Item 11(c)(2)

Purchased options.

Report in this item the aggregate par value of the
financial instruments or commodities that the reporting
bank holding company has, for a fee or premium, purchased the right to either purchase or sell under exchangetraded option contracts that are outstanding as of the
report date.
Column A, Purchased Exchange-Traded Interest Rate
Options. For exchange-traded option contracts giving
the reporting bank holding company the right to either
purchase or sell an interest rate futures contract and
whose predominant risk characteristic is interest rate risk,
report the par value of the financial instrument underlying the futures contract. An example of such a contract
is a Chicago Board Options Exchange option on the
13-week Treasury bill rate.
Column B, Purchased Exchange-Traded Foreign
Exchange Options. Report in this item the gross
amount (stated in U.S. dollars) of foreign (non-U.S.)
currency and U.S. dollar exchange that the reporting bank
holding company has, for a fee, purchased the right to
either purchase or sell under exchange-traded option
contracts whose predominant risk characteristic is foreign exchange risk. In the case of option contracts giving
the reporting bank holding company the right to either
purchase or sell a currency futures contract, report the
gross amount (stated in U.S. dollars) of the foreign
(non-U.S.) currency underlying the futures contract.
Exchange-traded options on major currencies such as the
Japanese Yen and British Pound Sterling and options on
futures contracts of major currencies are examples of
such contracts.
Column C, Purchased Exchange-Traded Equity
Derivative Options. Report the contract amount of
those exchange-traded option contracts where the reporting bank holding company has, for a fee, purchased the
right to purchase or sell an equity instrument or equity
index.
FR Y-9C
Schedule HC-L

Column D, Purchased Commodity and Other
Exchange-Traded Options. Report the contract amount
for those exchange-traded option contracts where the
reporting bank holding company has, for a fee, or
premium, purchased the right to purchase or sell a
commodity or product. Include any other purchased,
exchange-traded option that is not reportable as an
interest rate, foreign exchange, or equity derivative contract in column A, B, or C.

March 2007

Line Item 11(d)

Over-the-counter option contracts.

Option contracts convey either the right or the obligation,
depending upon whether the reporting bank holding
company is the purchaser or the writer, respectively, to
buy or sell a financial instrument or commodity at a
specified price by a specified future date. Options can be
written to meet the specialized needs of the counterparties to the transaction. These customized option contracts
are known as over-the-counter (OTC) options. Thus,
over-the-counter option contracts include all option contracts not traded on an organized exchange.
The buyer of an option contract has, for compensation
(such as a fee or premium), acquired the right (or option)
to sell to, or purchase from, another party some financial
instrument or commodity at a stated price on a specified
future date. The seller of the contract has, for such
compensation, become obligated to purchase or sell the
financial instrument or commodity at the option of the
buyer of the contract. A put option contract obligates the
seller of the contract to purchase some financial instrument or commodity at the option of the buyer of the
contract. A call option contract obligates the seller of the
contract to sell some financial instrument or commodity
at the option of the buyer of the contract.
In addition, swaptions, i.e., options to enter into a swapcontract, and contracts known as caps, floors, collars, and
corridors1 should be reported as options.
1. A cap is a contract under which the purchaser has, for compensation
(such as a fee or premium), acquired the right to receive a payment from
the seller if a specified index rate, e.g., LIBOR, rises above a designated
strike rate. Payments are based on the principal amount or notional amount
of the cap, although no exchange of principal takes place. A floor is similar
to a cap except that the purchaser has, for compensation (such as a fee or
premium), acquired the right to receive a payment from the seller if the
specified index rate falls below the strike rate. A collar is the simultaneous
purchase of a cap (with a strike rate at one index rate) and sale of a floor
(with a strike rate at a lower index rate), designed to maintain interest rates

HC-L-11

Schedule HC-L

Commitments to lend that meet the definition of a
derivative and must be accounted for in accordance with
FASB Statement No. 133 are considered options for
purposes of Schedule HC-L, item 11. All other commitments to lend should be reported in Schedule HC-L,
item 1.
Line Item 11(d)(1)

Written options.

Report in this item the aggregate par value of the
financial instruments or commodities that the reporting
bank holding company has, for compensation (such as a
fee or premium), obligated itself to either purchase or sell
under OTC option contracts that are outstanding as of the
report date. Also report the aggregate notional amount of
written caps, floors, and swaptions and for the written
portion of collars and corridors.
Column A, Written OTC Interest Rate Options.
Interest rate options include options to purchase and sell
interest-bearing financial instruments and whose predominant risk characteristic is interest rate risk as well as
contracts known as caps, floors, collars, corridors, and
swaptions. Include in this item the notional amount for
interest rate caps and floors that the reporting bank
holding company sells. For interest rate collars and
corridors, report a notional amount for the written portion
of the contract in Schedule HC-L, item 11(d)(1), column
A, and for the purchased portion of the contract in Schedule HC-L, item 11(d)(2), column A.
Column B, Written OTC Foreign Exchange Options.
A written currency option contract conveys the obligation to exchange two different currencies at a specified
exchange rate. Report in this item the gross amount
(stated in U.S. dollars) of foreign (non-U.S.) currency and
U.S. dollar exchange that the reporting bank holding
company has, for compensation, obligated itself to either
purchase or sell under OTC option contracts whose
predominant risk characteristic is foreign exchange risk.
Column C, Written OTC Equity Derivative Options.
Report the contract amount for those OTC option contracts where the reporting bank holding company has
within a specified range. The premium income from the sale of the floor
reduces or offsets the cost of buying the cap. A corridor is the simultaneous
purchase of a cap (with a strike rate at one index rate) and sale of a cap
(with a strike rate at a higher index rate), designed to reduce the cost of the
lower strike cap. The premium income from the sale of one cap reduces or
offsets the cost of buying the other cap.

HC-L-12

obligated itself, for compensation, to purchase or sell an
equity instrument or equity index.
Column D, Written Commodity and Other OTC
Options. Report the contract amount for those OTC
option contracts where the reporting bank holding company has obligated itself, for compensation, to purchase
or sell a commodity or product. Include any other
written, OTC option that is not reportable as an interest
rate, foreign exchange, or equity derivative contract in
column A, B, or C.
Line Item 11(d)(2)

Purchased options.

Report in this item the aggregate par value of the
financial instruments or commodities that the reporting
bank holding company has, for a fee or premium, purchased the right to either purchase or sell under OTC
option contracts that are outstanding as of the report date.
Also report the aggregate notional amount for purchased
caps, floors, and swaptions and for the purchased portion
of collars and corridors.
Column A, Purchased OTC Interest Rate Options.
Interest rate options include options to purchase and sell
interest-bearing financial instruments and whose predominant risk characteristic is interest rate risk as well as
contracts known as caps, floors, collars, corridors, and
swaptions. Include in this item the notional amount for
interest rate caps and floors that the reporting bank
holding company purchases. For interest rate collars and
corridors, report a notional amount for the written portion
of the contract in Schedule HC-L, item 11(d)(1), column
A, and for the purchased portion of the contract in
Schedule HC-L, item 11(d)(2), column A.
Column B, Purchased OTC Foreign Exchange
Options. Report in this item the gross amount (stated
in U.S. dollars) of foreign (non-U.S.) currency and U.S.
dollar exchange that the reporting bank holding company
has, for a fee or premium, purchased the right to either
purchase or sell under option contracts whose predominant risk characteristic is foreign exchange risk.
Column C, Purchased OTC Equity Derivative
Options. Report the notional amount of those OTC
option contracts where the reporting bank holding company has, for a fee or premium, purchased the right to
purchase or sell an equity instrument or equity index.
Column D, Purchased Commodity and Other OTC
Options. Report the contract amount for those option
Schedule HC-L

FR Y-9C
March 2007

Schedule HC-L

contracts where the reporting bank holding company
has, for a fee or premium, purchased the right to purchase
or sell a commodity or product. Include any other
purchased OTC option that is not reportable as an interest
rate, foreign exchange or equity derivative contract in
column A, B, or C.
Line Item 11(e)

Swaps.

Swaps are contracts in which two parties agree to
exchange payment streams based on a specified notional
amount for a specified period. Forward starting swap
contracts should be reported as swaps. The notional
amount of a swap is the underlying principal amount
upon which the exchange of interest, foreign exchange or
other income or expense is based. The notional amount
reported for a swap contract with a multiplier component
is the contract’s effective notional amount. In those cases
where the reporting bank holding company is acting as an
intermediary, both sides of the transaction are to be
reported.
Column A, Interest Rate Swaps. Report the notional
amount of all outstanding interest rate and basis swaps
whose predominant risk characteristic is interest rate risk.
Column B, Foreign Exchange Swaps. Report the
notional principal amount (stated in U.S. dollars) of all
outstanding cross-currency interest rate swaps.
A cross-currency interest rate swap is a contract in which
two parties agree to exchange principal amounts of
different currencies, usually at the prevailing spot rate, at
the inception of an agreement which lasts for a certain
number of years. At defined intervals over the life of the
swap, the counterparties exchange payments in the different currencies based on specified rates of interest. When
the agreement matures, the principal amounts will be
re-exchanged at the same spot rate. The notional amount
of a cross-currency interest rate swap is generally the
underlying principal amount upon which the exchange is
based.
Column C, Equity Swaps. Report the notional amount
of all outstanding equity or equity index swaps.
Column D, Commodity and Other Swaps. Report the
notional principal amount of all other swap contracts that
are not reportable as either interest rate, foreign exchange,
or equity derivative contracts in column A, B, or C. The
notional amount to be reported for commodity contracts
with multiple exchanges of principal is the contractual
FR Y-9C
Schedule HC-L

March 2007

amount multiplied by the number of remaining payments
(or exchanges of principal) in the contract.
Line Item 12 Total gross notional amount of
derivative contracts held for trading.
Report in the appropriate column, the total notional
amount or par value of those off-balance- sheet derivative
contracts in Schedule HC-L, item 11 above that are held
for trading purposes. Contracts held for trading purposes
include those used in dealing and other trading activities
accounted for at fair value with gains and losses recognized in earnings. Derivative instruments used to hedge
trading activities should also be reported in this item.
Derivative trading activities include (a) regularly dealing
in interest rate contracts, foreign exchange contracts,
equity derivative contracts, and other off-balance-sheet
commodity contracts, (b) acquiring or taking positions
in such items principally for the purpose of selling in
the near term or otherwise with the intent to resell (or
repurchase) in order to profit from short-term price
movements, or (c) acquiring or taking positions in such
items as an accommodation to customers.
The trading department of a bank holding company or its
subsidiaries may have entered into a derivative contract
with another department or business unit within the
consolidated bank holding company (and which has been
reported on a consolidated basis in accordance with the
instructions to Schedule HC-L, item 11 above). If the
trading department has also entered into a matching
contract with a counterparty outside the consolidated
bank holding company, the contract with the outside
counterparty should be designated as held for trading or
as held for purposes other than trading consistent with the
contract’s designation for other financial reporting purposes.
Line Item 13 Total gross notional amount of
derivative contracts held for purposes other than
trading.
Report in the appropriate column, the total notional
amount or par value of those contracts in Schedule HC-L,
item 11 above that are held for purposes other than
trading.
Line Item 14
contracts.

Gross fair values of derivative

Report in the appropriate column and subitem below the
fair (or market) value of all derivative contracts reported
HC-L-13

Schedule HC-L

in Schedule HC-L, items 12 and 13 above. For each of
the four types of underlying risk exposure in columns A
through D, the gross positive and gross negative fair
values will be reported separately below for contracts
held for trading (item 14(a)), and contracts held for
purposes other than trading (item 14(b)). Guidance for
reporting by type of underlying risk exposure is provided
in Schedule HC-L, item 11 above. Guidance for reporting
by purpose and accounting methodology is provided
in the instructions for Schedule HC-L, items 12 and 13
above.
All transactions within the bank holding company should
be reported on a consolidated basis. For purposes of this
item, do not net (1) obligations of the reporting bank
holding company to buy against the bank holding company’s obligations to sell, (2) written options against purchased options, (3) positive fair values against negative
fair values, or (4) contracts subject to bilateral netting
agreements.
As defined in FASB Statement No. 133, fair value is the
amount at which an asset (liability) could be bought
(incurred) or sold (settled) in a current transaction
between willing parties, that is, other than in a forced or
liquidation sale. Quoted market prices in active markets
is the best evidence of fair value and should be used as
the basis for the measurement, if available. If a quoted
market price is available, the fair value is the product of
the number of trading units times that market price. If a
quoted market price is not available, the estimate of fair
value should be based on the best information available
in the circumstances. The estimate of fair value should
consider prices for similar assets or liabilities and the
results of valuation techniques to the extent available in
the circumstances. For purposes of item 14, the reporting
bank holding company should determine the fair value
of its derivative contracts in the same manner that it

HC-L-14

determines the fair value of these contracts for other
financial reporting purposes.
Line Item 14(a) Contracts held for trading.
Report in the appropriate column and subitem the gross
positive and gross negative fair values of those contracts
held for trading reported in Schedule HC-L, item 12
above.
Line Item 14(a)(1) Gross positive fair value.
Report in the appropriate column the total fair value of
those contracts in Schedule HC-L, item 12 above with
positive fair values.
Line Item 14(a)(2) Gross negative fair value.
Report in the appropriate column the total fair value of
those contracts in Schedule HC-L, item 12 above with
negative fair values. Report the total fair value as an
absolute value, do not enclose the total fair value in
parentheses or use a minus (−) sign.
Line Item 14(b) Contracts held for purposes other
than trading.
Report in the appropriate column and subitem the gross
positive and gross negative fair values of those contractsheld for purposes other than trading that are reported in
Schedule HC-L, item 13 above.
Line Item 14(b)(1) Gross positive fair value.
Report in the appropriate column the total fair value of
those contracts in Schedule HC-L, item 13 above with
positive fair values.
Line Item 14(b)(2) Gross negative fair value.
Report in the appropriate column the total fair value of
those contracts in Schedule HC-L, item 13 above with
negative fair values. Report the total fair value as an
absolute value, do not enclose the total fair value in
parentheses or use a minus (−) sign.

Schedule HC-L

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Memoranda
Schedule HC-M

Line Item 1 Total number of bank holding
company common shares outstanding.
Report in this item the total number of common stock
outstanding by the consolidated bank holding company
as of the report date. Do not round this number. Total
outstanding shares equals total shares issued less treasury
stock.
Line Item 2 Debt maturing in one year or less that
is issued to unrelated third parties by bank
subsidiaries.
Report in this item all debt maturing in one year or less
included in Schedule HC, items 16 and 19(a) that is
issued to unrelated third parties by any direct or indirect
bank subsidiary of the reporting bank holding company.
Include in this item the amount of such debt that is
redeemable at the option of the holder within one year,
even when the debt is scheduled to mature in more than
one year.
‘‘Unrelated third parties’’ covers all individuals and those
partnerships and corporations that are not majorityowned or controlled, directly or indirectly, by the respondent holding company or any of its subsidiaries.
Line Item 3 Debt maturing in more than one year
that is issued to unrelated third parties by bank
subsidiaries.
Report in this item all debt maturing in more than one
year included in Schedule HC, items 16 and 19(a) that is
issued to unrelated third parties by any direct or indirect
bank subsidiary of the reporting bank holding company.
Exclude from this item the amount of such debt that is
redeemable at the option of the holder within one year,
even when the debt is scheduled to mature in more than
one year.
FR Y-9C
Schedule HC-M

March 2007

‘‘Unrelated third parties’’ covers all individuals and those
partnerships and corporations that are not majorityowned or controlled, directly or indirectly, by the respondent holding company or any of its subsidiaries.
Line Item 4 Other assets acquired in satisfaction
of debts previously contracted.
Report in this item all assets (other than other real estate
owned) that have been acquired in satisfaction of debts
previously contracted (DPC). Include assets, such as
securities, loans, and equipment, that have been acquired
in satisfaction of DPC.
Line Item 5 Securities purchased under
agreements to resell offset against securities sold
under agreements to repurchase on Schedule HC.
Report in this item the amount of securities purchased
under agreements to resell that have been offset (where
the ‘‘right of setoff’’ exists) by securities sold under
agreements to repurchase (i.e., assets removed from
Schedule HC). For further information, see the Glossary
entry for ‘‘offsetting’’ and FASB Interpretation No. 41,
Offsetting of Amounts Related to Certain Repurchase and
Reverse Repurchase Agreements.
Line Item 6

Investments in real estate.

This item is to be reported only by bank holding
companies that have been authorized by the Federal
Reserve to have real estate investments.
Report in this item equity investments, funded loans, and
committed loans in real estate projects in which the bank
holding company or its subsidiaries have an equity
investment.
Include the following as investments in real estate
ventures:
HC-M-1

Schedule HC-M

(1) Any real estate acquired, directly or indirectly, by the
bank holding company or a consolidated subsidiary
and held for development, resale, or other investment
purposes.
NOTE: Exclude any real estate acquired in satisfaction of debt previously contracted, including, but not
limited to, real estate acquired through foreclosure or
acquired by deed in lieu of foreclosure.
(2) Any debt or equity investments by the bank holding
company in unconsolidated subsidiaries, associated
companies, and corporate joint ventures, unincorporated joint ventures, and general and limited
partnerships over which the bank holding company
or its subsidiaries exercise significant influence (all
of which are commonly referred to as ‘‘investees’’) if
such investees are primarily engaged in the
holding of real estate for development, resale, or
other investment purposes. Investments by the
bank holding company in these investees, which
are also reported in Schedule HC, item 8, ‘‘Investments in unconsolidated subsidiaries and associated
companies,’’ may be in the form of common or
preferred stock, partnership interests, loans or other
advances, bonds, notes, or debentures. Such investments shall be reported using the equity method of
accounting as described in the instruction to Schedule HC, item 8.
(3) Real estate acquisition, development, or construction
(ADC) arrangements that are accounted for as direct
investments in real estate or as real estate joint
ventures in accordance with guidance prepared by
the American Institute of Certified Public Accountants (AICPA) in Notices to Practitioners issued in
November 1983, November 1984, and February
1986.
(4) Any other loans secured by real estate and advanced
for real estate acquisition, development, or investment purposes if the reporting bank holding company
in substance has virtually the same risks and potential
rewards as an investor in the borrower’s real estate
venture.
Exclude from this item any property necessary for the
conduct of banking business that has been reported in
Schedule HC, item 6, ‘‘Premises and fixed assets,’’ and
any property not specifically held for real estate development or other investment purposes.
HC-M-2

Item 7

Not applicable.

Line Item 8 Has the bank holding company
entered into a business combination during the
calendar year that was accounted for by the
purchase method of accounting?
Enter a ‘‘1’’ for yes if the respondent bank holding
company consummated the acquisition of another company during the calendar year that was accounted for by
the purchase method of accounting. Enter ‘‘0’’ for no
if the respondent bank holding company consummated
no business combinations during the calendar year.
Line Item 9 Has the bank holding company
restated its financial statements during the last
quarter as a result of new or revised Statements of
Financial Accounting Standards?
Enter a ‘‘1’’ for yes if the respondent bank holding
company has restated its financial statements during the
quarter ending with the report date because a new or
revised Statement of Financial Accounting Standards
(SFAS) was implemented. Enter a ‘‘0’’ if no financial
statements were revised as a result of the implementation
of a new or revised SFAS.
If the response to this question is ‘‘yes,’’ restated financial
statements that reflect those changes in accounting standards should be submitted to the appropriate Federal
Reserve District Bank as soon as possible.
Line Item 10

Not applicable.

Line Item 11 Have all changes in investments and
activities been reported to the Federal Reserve on
the Bank Holding Company Report of Changes in
Organizational Structure (FR Y-10)?
Enter a ‘‘1’’ for yes if the bank holding company has
submitted all changes, if any, in its investments and
activities on the FR Y-10. If the bank holding company had no changes in investments and activities and
therefore was not required to file a FR Y-10, also enter a
‘‘1’’ in this item. Enter a ‘‘0’’ for no if it has not yet
submitted all changes to investments and activities on the
FR Y-10. (If the answer to this question is no, the bank
holding company must complete the FR Y-10 report.)
The name of the holding company official responsible for
verifying that the FR Y-10 has been completed should be
typed or printed on the line provided whether the answer
is ‘‘yes,’’ or ‘‘no.’’ In addition, enter the area code and
Schedule HC-M

FR Y-9C
March 2007

Schedule HC-M

phone number of the official responsible for verifying the
FR Y-10.
Line Item 12

Intangible assets other than goodwill.

Report in the appropriate subitem the carrying amount of
intangible assets other than goodwill. Intangible assets
primarily result from business combinations accounted
for under the purchase method in accordance with FASB
Statement No. 141, Business Combinations, from acquisitions of portions or segments of another institution’s
business such as branch offices, mortgage servicing
portfolios, and credit card portfolios, and from the sale or
securitization of financial assets with servicing retained.
An intangible asset with a finite life (other than a
servicing asset) should be amortized over its estimated
useful life and should be reviewed at least quarterly to
determine whether events or changes in circumstances
indicate that its carrying amount may not be recoverable.
If this review indicates that the carrying amount may not
be recoverable, the intangible asset should be tested for
recoverability (impairment) in accordance with FASB
Statement No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets. An impairment loss shall
be recognized if the carrying amount of the intangible
asset is not recoverable and this amount exceeds the
asset’s fair value. The carrying amount is not recoverable
if it exceeds the sum of the undiscounted expected future
cash flows from the intangible asset. An impairment loss
is recognized by writing the intangible asset down to its
fair value (which becomes the new accounting basis of
the intangible asset), with a corresponding charge to
expense (which should be reported in Schedule HI, item
7(c)(2)). Subsequent reversal of a previously recognized
impairment loss is prohibited.
An intangible asset with an indefinite useful life should
not be amortized, but should be tested for impairment at
least annually in accordance with FASB Statement No.
142, Goodwill and Other Intangible Assets.
Line Item 12(a)

Mortgage servicing assets.

Report the carrying amount of mortgage servicing assets,
i.e., the cost of acquiring contracts to service loans
secured by real estate (as defined for Schedule HC-C,
item 1, and in the Glossary entry for ‘‘Loans secured by
real estate’’) that have been securitized or are owned by
another party, net of any related valuation allowances.
Servicing assets resulting from contracts to service finanFR Y-9C
Schedule HC-M

March 2007

cial assets other than loans secured by real estate should
be reported in line item 12(b). For further information,
see the Glossary entry for ‘‘servicing assets and
liabilities.’’
Line Item 12(a)(1) Estimated fair value of
mortgage servicing assets.
Report the estimated fair value of the capitalized mortgage servicing assets reported in Schedule HC-M,
item 12(a) above.
According to FASB Statement No. 140, the fair value of
mortgage servicing assets is the amount at which the
assets could be bought or sold in a current transaction
between willing parties, that is, other than in a forced or
liquidation sale. Quoted market prices in active markets
are the best evidence of the fair value of an asset and
should be used to measure fair value if available. If
quoted market prices are not available, the estimate of
fair value should be based on the best information
available in the circumstances, considering prices for
similar assets and the results of valuation techniques such
as the present value of estimated expected future cash
flows using a discount rate commensurate with the risks
involved. Valuation techniques for measuring servicing
assets should be consistent with the objective of measuring fair value and should incorporate assumptions that
market participants would use. Estimates of expected
future cash flows, if used to estimate fair value, should be
the best estimate based on reasonable and supportable
assumptions and projections.
For purposes of this item, the reporting bank holding
company should determine the fair value of mortgage
servicing assets in the same manner that it determines the
fair value of these assets for other financial reporting
purposes, consistent with the guidance in FASB Statement No. 140.
Line Item 12(b) Purchased credit card
relationships and nonmortgage servicing assets.
Report the carrying amount of purchased credit card
relationships (PCCRs) plus the carrying value of nonmortgage servicing assets.
PCCRs represent the right to conduct ongoing credit card
business dealings with the cardholders. In general,
PCCRs are an amount paid in excess of the value of the
purchased credit card receivables. Such relationships
arise when a banking organization purchases existing
HC-M-3

Schedule HC-M

credit card receivables and also has the right to provide
credit card services to those customers. PCCRs may also
be acquired when the reporting bank holding company
acquires an entire depository institution.
Purchased credit card relationships shall be carried at
amortized cost. Management of the institution shall
review the carrying amount at least quarterly, adequately
document this review, and adjust the carrying amount as
necessary. This review should determine whether unanticipated acceleration or deceleration of cardholder payments, account attrition, changes in fees or finance
charges, or other events or changes in circumstances
indicate that the carrying amount of the purchased credit
card relationships may not be recoverable. If this review
indicates that the carrying amount may not be recoverable, the intangible asset should be tested for recoverability, and any impairment loss should be recognized, as
described in the instruction for Schedule HC-M, item 12.
The carrying value of nonmortgage servicing assets is the
unamortized cost of acquiring contracts to service financial assets, other than loans secured by real estate (as
defined for Schedule HC-C, item 1), that have been
securitized by another party, net of any related valuation
allowances. For further information, see the Glossary
entry for ‘‘servicing assets and liabilities.’’
Line Item 12(c)
assets.

All other identifiable intangible

Report the carrying amount of all other specifically
identifiable intangible assets such as core deposit intangibles and favorable leasehold rights. Also include the
unamortized amount of any unidentifiable intangible
assets recorded in accordance with FASB Statement
No. 72, Accounting for Certain Combinations of a Banking or Thrift Institution. Exclude goodwill, which should
be reported in Schedule HC, item 10(a).
Line Item 12(d)

Total.

Report the sum of items 12(a), 12(b) and 12(c). This
amount must equal Schedule HC, item 10(b), ‘‘Other
intangible assets.’’
Line Item 13

Other real estate owned.

Report the book value (not to exceed fair value), less
accumulated depreciation, if any, of all real estate other
than premises actually owned by the bank holding company or its consolidated subsidiaries. Do not deduct
HC-M-4

mortgages or other liens on such property (report in
Schedule HC, item 16, ‘‘Other borrowed money’’). Also
report in the appropriate subitem certain receivables
resulting from sales of other real estate owned as
described. This item should be reported net of any
valuation allowance applicable to ‘‘Other real estate
owned.’’
Report in item 13(a) real estate acquired in satisfaction of
debts previously contracted. Report in item 13(b) real
estate acquired and held for investment and property
originally acquired for future expansion but no longer
intended to be used for that purpose.
Exclude any property necessary for the conduct of banking business (report in Schedule HC, item 6, ‘‘Premises
and fixed assets’’).
Line Item 13(a) Real estate acquired in
satisfaction of debts previously contracted.
Include the following as real estate acquired in satisfaction of debts previously contracted:
(1) Real estate acquired in any manner for debts previously contracted, (including, but not limited to, real
estate acquired through foreclosure and real estate
acquired by deed in lieu of foreclosure), even if the
bank holding company or its consolidated subsidiaries has not yet received title to the property.
(2) Real estate collateral underlying a loan when the
bank holding company has obtained physical possession of the collateral, regardless of whether formal
foreclosure proceedings have been instituted against
the borrower.
Foreclosed real estate received in full or partial
satisfaction of a loan should be recorded at the fair
value less cost to sell the property at the time of
foreclosure. The fair value of the asset less cost to
sell the property at the time of foreclosure becomes
the ‘‘cost’’ of the asset. When foreclosed real estate is
received in full satisfaction of a loan, the amount, if
any, by which the recorded amount of the loan
exceeds the fair value less cost to sell the property is
a loss which must be charged to the allowance for
loan and lease losses at the time of foreclosure. Any
amount of senior debt to which foreclosed real estate
is subject at the time of foreclosure must be reported
as a liability in Schedule HC, item 16, ‘‘Other
borrowed money.’’
Schedule HC-M

FR Y-9C
March 2007

Schedule HC-M

After foreclosure, each individual foreclosed real
estate asset must be carried at the lower of (1) the fair
value of the asset minus estimated costs to sell the
asset as of the reporting date or (2) the ‘‘cost’’ of the
asset as defined in the preceding paragraph. This
determination must be made on an asset-by-asset
basis. If the fair value of a foreclosed real estate asset
minus the estimated costs to sell the asset is less than
the asset’s cost, the deficiency must be recognized
as a valuation allowance against the asset which
is created through a charge to expense. The valuation allowance should thereafter be increased or
decreased (but not below zero) through charges or
credits to expense for changes in the asset’s fair value
or estimated selling costs. For further information,
see the glossary entries for ‘‘foreclosed assets’’ and
‘‘troubled debt restructurings.’’
(3) Foreclosed real estate sold under contract and
accounted for under the deposit method of accounting in accordance with FASB Statement No. 66,
‘‘Accounting for Sales of Real Estate.’’ Under this
method, the seller does not record notes receivable,
but continues to report the real estate and any related
existing debt on its balance sheet. The deposit
method is used when a sale has not been consummated and is commonly used when the recovery of
the carrying value of the property is not reasonably
assured. If the full accrual, installment, cost recovery,
reduced profit, or percentage-of-completion method
of accounting under FASB Statement No. 66 is being
used to account for the sale, the receivable resulting
from the sale of the foreclosed real estate should be
reported as a loan in Schedule HC-C, and any gain on
the sale should be recognized in accordance with
FASB Statement No. 66. For further information, see
the Glossary entry for ‘‘foreclosed assets.’’
(4) Foreclosed real estate arising from mortgage loans
insured by the Federal Housing Administration (FHA)
or the Farmers Home Administration (FmHA) or
guaranteed by the Veterans Administration (VA) that
back Government National Mortgage Association
(GNMA) securities, i.e., ‘‘GNMA loans.’’
Line item 13(b)

Other real estate owned.

Report in this item all real estate acquired and held by the
consolidated bank holding company for investment purposes. Property formerly but no longer used for banking
FR Y-9C
Schedule HC-M

March 2007

or nonbanking activities may be reported in this item as
‘‘Other real estate owned’’ or in item 6, as ‘‘Premises and
fixed assets.’’
Include in this item the following:
(1) Any real estate acquired, directly or indirectly, by the
bank holding company or a consolidated subsidiary
and held for development or other investment purposes. (Do not include real estate acquired in any
manner for debts previously contracted, which are to
be reported in item 13(a) above.)
(2) Real estate acquisition, development, or construction
(ADC) arrangements that are accounted for as investments in real estate in accordance with guidance
prepared by the American Institute of Certified Public Accountants (AICPA) in Notices to Practitioners
issued in November 1983, November 1984, and
February 1986.
(3) Real estate acquired and held for investment by the
consolidated holding company or a consolidated
subsidiary that has been sold under contract and
accounted for under the deposit method in accordance with FASB Statement No. 66, ‘‘Accounting for
Sales of Real Estate.’’ Under this method, the seller
does not record notes receivable, but continues to
report the real estate and any related existing debt on
its balance sheet. The deposit method is used when a
sale has not been consummated and is commonly
used when the recovery of the carrying value of the
property is not reasonably assured. Once the criteria
for sale treatment under FASB Statement No. 66
have been met, the receivable resulting from the sale
of the foreclosed real estate should continue to be
reported in this item or should be reported as a loan
in Schedule HC-C, and any gain on the sale should
be recognized in accordance with FASB Statement
No. 66.
(4) Any other loans secured by real estate and advanced
for real estate acquisition, development, or investment purposes if the reporting bank in substance has
virtually the same risks and potential rewards as an
investor in the borrower’s real estate venture.
(5) Investments in corporate joint ventures, unincorporated joint ventures, and general or limited partnerships that are primarily engaged in the holding of real
estate for development, resale, or other investment
HC-M-5

Schedule HC-M

purposes and over which the bank does not exercise
significant influence.
(6) Property originally acquired for future expansion but
no longer intended to be used for that purpose.
Line Item 13(c)

Total.

Report the sum of items 13(a) and 13(b). This amount
must equal Schedule HC, item 7, ‘‘Other real estate
owned.’’
Line Item 14

Other borrowed money.

Report in the appropriate subitem the amount borrowed
by the consolidated bank holding company.
Line Item 14(a)

Commercial paper.

Report the total amount outstanding of commercial paper
issued by the reporting bank holding company or its
subsidiaries.
(See the Glossary entry for ‘‘commercial paper’’ for a
description of commercial paper.)
Line Item 14(b) Other borrowed money with a
remaining maturity of one year or less.
Report the total amount of money borrowed by the
consolidated bank holding company with a remaining
maturity of one year or less. For purposes of this item,
remaining maturity is the amount of time remaining from
the report date until final contractual maturity of a
borrowing without regard to the borrowing’s repayment
schedule, if any.
Report the dollar amount outstanding of all interestbearing demand notes issued to the U.S. Treasury by the
depository institutions that are consolidated subsidiaries
of the reporting bank holding company. If the depository
institution subsidiary participates in the Treasury Tax and
Loan note program, funds received for credit to the U.S.
government are demand deposits on the day received and
become note balances on the following business day.
Report in this item mortgage indebtedness and obligations under capitalized leases with a remaining maturity
of one year or less. Report the amount of mortgages,
liens, or other encumbrances on premises and fixed assets
and on other real estate owned for which the bank
holding company or its consolidated subsidiaries are
liable.
HC-M-6

If the bank holding company is the lessee on capitalized
lease property, include the bank holding company’s
liability for capitalized lease payments. (See the Glossary
entry for ‘‘lease accounting’’ for a discussion of accounting with bank holding company as lessee.)
Report the total amount of money borrowed with a
remaining maturity of one year or less:
(1) on its promissory notes;
(2) on notes and bills rediscounted (including commodity drafts rediscounted);
(3) on financial assets (other than securities) sold under
repurchase agreements that have an original maturity of more than one business day and sales of
participations in pools of loans that have an original
maturity of more than one business day;
(4) by transferring financial assets in exchange for cash
or other consideration (other than beneficial interests in the transferred assets) in transactions that do
not satisfy the criteria for sale treatment under
FASB Statement No. 140 (see the Glossary entry
for ‘‘transfers of financial assets’’ for further
information);
(5) by the creation of due bills representing the bank
holding company’s receipt of payment and similar
instruments, whether collateralized or uncollateralized (see the Glossary entry for ‘‘due bills’’);
(6) from Federal Reserve Banks;
(7) by overdrawing ‘‘due from’’ balances with depository institutions, except overdrafts arising in connection with checks or drafts drawn by subsidiary
depository institutions of the reporting bank holding company and drawn on, or payable at or
through, another depository institution either on a
zero-balance account or on an account that is not
routinely maintained with sufficient balances to
cover checks or drafts drawn in the normal course
of business during the period until the amount of
the checks or drafts is remitted to the other depository institution (in which case, report the funds
received or held in connection with such checks or
drafts as deposits in Schedule HC-E until the funds
are remitted).
Schedule HC-M

FR Y-9C
March 2007

Schedule HC-M

(8) on purchases of ‘‘term federal funds’’ (as defined in
the Glossary entry for ‘‘federal funds transactions’’); and

Report the total amount of money borrowed by the
consolidated bank holding company with a remaining
maturity of more than one year:

(9) by borrowing immediately available funds in foreign offices that have an original maturity of one
business day or roll over under a continuing contrast that are not securities repurchase agreements.

(1) on its promissory notes;

(10) on any other obligation for the purpose of borrowing money that has a remaining maturity of one
year or less and that is not reported elsewhere.
(For a discussion of borrowings in foreign offices, see the
Glossary entry for ‘‘borrowings and deposits in foreign
offices.’’)
Exclude from this item the following:
(1) Federal funds purchased (in domestic offices) and
securities sold under agreements to repurchase (report
in Schedule HC, items 14(a) and 14(b), respectively);
(2) Liabilities resulting from the sales of assets that the
reporting bank holding company or its consolidated
subsidiaries does not own (see Glossary entry for
‘‘short position’’) (report in Schedule HC, item 15);
and

(2) in the form of perpetual debt securities that are
unsecured and not subordinated;
(3) on notes and bills rediscounted (including commodity drafts rediscounted);
(4) on loans sold under repurchase agreements that
mature in more than one business day; and
(5) on any other obligation with a remaining maturity of
more than one year for the purpose of borrowing
money that is not reported elsewhere.
NOTE: When the reporting bank holding company has
explicitly or implicitly guaranteed the long-term debt of
its Employee Stock Ownership Plan (ESOP), report in
this item the dollar amount outstanding of the long-term
debt guaranteed.
For a discussion of borrowings in foreign offices, see the
Glossary entry for ‘‘borrowings and deposits in foreign
offices.’’
Exclude from this item the following:

(3) Subordinated notes and debentures (report in Schedule HC, item 19(a)).

(1) federal funds purchased (in domestic offices) and
securities sold under agreements to repurchase (report
in Schedule HC, items 14(a) and 14(b), respectively);

Line Item 14(c) Other borrowed money with a
remaining maturity of more than one year.

(2) liabilities resulting from the sales of assets that the
reporting bank holding company or its consolidated
subsidiaries do not own (see Glossary entry for
‘‘short position’’) (report in Schedule HC, item 15);
and

For purposes of this item, remaining maturity is the
amount of time remaining from the report date until final
contractual maturity of a borrowing without regard to the
borrowing’s repayment schedule, if any.
Report in this item mortgage indebtedness and obligations under capitalized leases with a remaining maturity
of more than year. Report the amount of mortgages, liens,
or other encumbrances on premises and fixed assets and
on other real estate owned for which the bank holding
company or its consolidated subsidiaries are liable.
If the bank holding company is the lessee on capitalized
lease property, include the bank holding company’s
liability for capitalized lease payments. (See the Glossary
entry for ‘‘lease accounting’’ for a discussion of accounting with bank holding company as lessee.)
FR Y-9C
Schedule HC-M

March 2007

(3) subordinated notes and debentures (report in Schedule HC, item 19(a)).
Line Item 14(d)

Total.

Report the sum of items 14(a), 14(b) and 14(c). This
amount must equal Schedule HC, item 16, ‘‘Other borrowed money.’’
Line Item 15 Does the holding company sell
private label or third party mutual funds and
annuities?
Indicate whether the reporting bank holding company
currently sells private label or third party mutual funds
and annuities.
HC-M-7

Schedule HC-M

Place ‘‘1’’ for yes if the bank holding company, a bank
holding company subsidiary or other affiliate, or an
unaffiliated entity sells private label or third party mutual
funds and annuities:
(1) on premises of the bank holding company;
(2) from which the bank holding company receives
income at the time of the sale or over the duration of
the account (e.g., annual fees, Rule 12b-1 fees or
‘‘trailer fees,’’ and redemption fees); or
(3) through the reporting bank holding company’s trust
department in transactions that are not executed in a
fiduciary capacity (e.g., trustee, executor, administrator, conservator).
Otherwise, enter ‘‘0’’ for no.
Mutual fund is the common name for an open-end
investment company whose shares are sold to the investing public. An annuity is an investment product, typically
underwritten by an insurance company, that pays either a
fixed or variable payment stream over a specified period
of time. Both proprietary and private label mutual funds
and annuities are established in order to be marketed
primarily to a banking organization’s customers. A proprietary product is a product for which the reporting bank
holding company or a subsidiary or other affiliate of the
reporting bank holding company acts as investment
adviser and may perform additional support services. In a
private label product, an unaffiliated entity acts as the
investment adviser. The identity of the investment adviser
is normally disclosed in the prospectus for a mutual fund
or annuity. Mutual funds and annuities that are not
proprietary or private label products are considered third
party products. For example, third party mutual funds
and annuities include products that are widely marketed
by numerous parties to the investing public and have
investment advisers that are not affiliated with the reporting bank holding company.
Line Item 16 Assets under management in
proprietary mutual funds and annuities.
Report the amount of assets (stated in U.S. dollars) held
by mutual funds and annuities as of the report date for
which the reporting bank holding company or a subsidiary of the bank holding company acts as investment
adviser.
A general description of a proprietary product is included
in the instruction to Schedule HC-M, item 15, above.
HC-M-8

Proprietary mutual funds and annuities are typically
created by large banking organizations and offered to
customers of the banking organization’s subsidiary banks.
Therefore, small, independent banks do not normally act
as investment advisers for mutual funds and annuities.
If neither the bank holding company nor any subsidiary
of the bank holding company acts as investment adviser
for a mutual fund or annuity, the bank holding company
should report a zero in this item.

Information related to the filing of the
FR Y-12 report (Line Items 17, 18, 19(a),
19(b))
Line items 17 and 18 will be used to determine if the
reporting bank holding company must complete the
Consolidated Bank Holding Company Report of Equity
Investments in Nonfinancial Companies (FR Y-12). In a
multi-tiered organization with one or more bank holding
companies (BHCs), only the top-tier BHC should complete items 17 and 18 on a consolidated basis. However,
if a lower-tier BHC is functioning as the consolidated
top-tier reporter for other financial reports (for example,
when the top-tier is a non-U.S. BHC, ESOP, or limited
partnership), this lower-tier BHC should complete
items 17 and 18 on a consolidated basis.
Items 19(a) and 19(b) are to be completed by all
bank holding companies that are not required to file the
FR Y-12.
Line Item 17 Does the bank holding company
hold, either directly or indirectly through a
subsidiary or affiliate, any nonfinancial equity
investments within a Small Business Investment
Company (SBIC) structure, or under section 4(c)(6)
or 4(c)(7) of the Bank Holding Company Act, or
pursuant to the merchant banking authority of
section 4(k)4(H) of the Bank Holding Company Act,
or pursuant to the investment authority granted by
Regulation K?
Enter a ‘‘1’’ if the answer to this question is yes. Enter a
‘‘0’’ if the response to this question is no. If the answer to
this question is no, your organization does not need to
complete the FR Y-12. Skip items 18 and proceed to items
19(a) and 19(b). If the answer to this question is yes,
proceed to item 18 below.
Schedule HC-M

FR Y-9C
March 2007

Schedule HC-M

For purposes of this question, an equity investment refers
to common stock, partnership interests, convertible preferred stock, convertible debt, and warrants, options, and
other rights that give the holder the right to acquire
common stock or instruments convertible into common
stock. An equity investment does not include any position or security held in a trading account in accordance
with applicable accounting principles and as part of an
underwriting, market making or dealing activity.
A nonfinancial equity investment means an equity investment made by the BHC or any of its subsidiaries
(including all U.S. offices, International Banking Facilities, foreign branches, branches in Puerto Rico and U.S.
territories and possessions, and majority-owned bank and
nonbank domestic and foreign subsidiaries, including
Edge and agreement subsidiaries, domestic nonbankingsubsidiaries, and small business investment
companies (SBICs)):
• pursuant to the merchant banking authority of section
4(k)(4)(H) of the BHC Act (12 U.S.C. 1843(k)(4)(H))
and subpart J of the Board’s Regulation Y,
• under section 4(c)(6) or 4(c)(7) of the BHC Act
(12 U.S.C. 1843(c)(6) and (c)(7)) in a nonfinancial
company (as defined below) or in a company that
makes investments in nonfinancial companies,
• investments made through a SBIC that is consolidated
with the BHC or subsidiary, or in an SBIC that is not
consolidated, under section 302(b) of the Small Business Investment Act of 1958,
• in a nonfinancial company under the portfolio investment provisions of the Board’s Regulation K (12 CFR
211.8(c)(3), or
• in a nonfinancial company under section 24 of the
Federal Deposit Insurance Act (12 U.S.C. 1831a).
This question does not apply to equity investments that a
BHC or any of its subsidiaries may make under other
legal authorities. For example, this question does not
apply to nonfinancial investments made by an insurance
company subsidiary of a financial holding company
under section 4(k)(4)(I) of the BHC Act (12 U.S.C.
1843(k)(4)(I)). Also, this question does not apply to DPC
investments.
A nonfinancial company is a company that is engaged in
any activity that has not been determined to be financial
FR Y-9C
Schedule HC-M

March 2007

in nature or incidental to a financial activity under
section 4(k) of the BHC Act (12 U.S.C. 1843(k)).
Line Item 18 Do your aggregate nonfinancial
equity investments equal or exceed the lesser of
$100 million (on an acquisition cost basis) or
10 percent of the BHC’s consolidated Tier 1 capital
as of the report date?
Enter a ‘‘1’’ if the answer to this question is yes. Enter a
‘‘0’’ if the response to this question is no. If the answer to
both item 17 and item 18 is yes, your organization must
complete the FR Y-12. Skip items 19.a and 19.b, and
proceed to item 20 below. If the answer to either item 17
or item 18 is no, your organization does not need to
complete the FR Y-12. Proceed to items 19(a) and 19(b)
below.
See the instructions for item 17 above for the definition
of nonfinancial equity investment.
Acquisition cost is the amount paid by the BHC for the
nonfinancial equity investment when it was acquired.
Tier 1 capital is the amount reported in Schedule HC- R,
Regulatory Capital, item 11.
Items 19(a) and 19(b) are to be completed by all bank
holding companies that are not required to file the
FR Y-12.
Line Item 19(a) Has the bank holding company sold
or otherwise liquidated its holding of any
nonfinancial equity investment since the previous
reporting period?
Enter a ‘‘1’’ if the answer to this question is yes. Enter a
‘‘0’’ if the response to this question is no. See the
instructions for item 17 above for the definition of
nonfinancial equity investment.
Line item 19(b) Does the bank holding company
manage any nonfinancial equity investments for the
benefit of others?
Enter a ‘‘1’’ if the answer to this question is yes. Enter a
‘‘0’’ if the response to this question is no.
This item applies to all bank holding companies that do
not file the FR Y-12 report that manage nonfinancial
equity investments for others by serving as a general
partner in a limited partnership or performing a similar
function in a private equity fund. These investments are
not owned by the bank holding company and are not
HC-M-9

Schedule HC-M

consolidated in the bank holding company’s financial
statements. Exclude investments managed through a bank
trust department in a fiduciary capacity. See the instructions for item 17 above for the definition of nonfinancial
equity investment.

receivables and amounts owed from operating the subsidiary or providing services to the parent company.

Line Item 20 Balances of broker–dealer
subsidiaries engaged in underwriting or dealing
securities pursuant to Section 4(k)(4)(E) of the Bank
Holding Company Act as amended by the
Gramm–Leach–Bliley Act.

Report intercompany transaction balances due from subsidiary banks and their subsidiaries of the bank holding
company. This may include cash due from subsidiary
banks or amounts owed for services provided.

These items are to be completed only by top-tier financial holding companies. A financial holding company is
a U.S. bank holding company that has submitted a
declaration to become a financial holding company with
the appropriate Federal Reserve Bank and whose declaration has been determined to be effective as of the
reporting period (e.g., March 31, June 30, September 30,
or December 31).

Line Item 20(b)(3) Due from nonbank subsidiaries
of the bank holding company, gross.

Line Item 20(a)

Line items 20(c)(1) through 20(c)(3) include intercompany liabilities that are owed to affiliates or are derived
from subordinated debt agreement(s) with affiliates that
are considered capital under the SEC’s net capital rule
(Rule 15c3-1). The aggregate amount of that subordinated debt is reported in line 20(d).

Net Assets.

Report the total net assets of all broker–dealer subsidiaries engaged in underwriting or dealing securities pursuant to Section 4(k)4(E) of the Bank Holding Company
Act as amended by the Gramm–Leach–Bliley Act. The
definition of assets generally corresponds to Schedule
HC, Balance Sheet, line 12. Include both domestic and
foreign subsidiaries that are owned by the financial
holding company. Exclude from this item intercompany
assets and claims on affiliates that are eliminated when
preparing consolidated financial statements for the financial holding company. Report intercompany assets and
claims in items 20(b) and 20(c), respectively. Also
exclude any subsidiaries that are held through a U.S.
depository institution.
Line Item 20(b)
institutions.

Line Item 20(b)(2) Due from subsidiary banks of
the bank holding company, gross.

Report intercompany transaction balances due from nonbank subsidiaries of the bank holding company.
Line Item 20(c)
institutions.

Balances due to related

Line Item 20(c)(1) Due to bank holding company
(parent company only), gross.
Report the amount of all intercompany liabilities that are
owed to the reporting parent bank holding company.
Such liabilities may consist of administrative service
agreements, utilized lines of credit, management fees,
advances or any other amounts due to the bank holding
company parent.

Balances due from related

Report intercompany transaction balances due from the
parent company, subsidiary banks and their subsidiaries,
and nonbank subsidiaries of the parent bank holding
company. This may include cash, receivables and all
other amounts due from operating the underwriting subsidiary. All amounts are reported gross.

Line Item 20(c)(2) Due to subsidiary banks of the
bank holding company, gross.
Report the amounts of all intercompany liabilities owed
to the subsidiary banks and their subsidiaries of the bank
holding company. Such liabilities may consist of shortterm loans and transaction processing fees.

Line Item 20(b)(1) Due from bank holding
company (parent company only), gross.

Line Item 20(c)(3) Due to the nonbank
subsidiaries of the bank holding company, gross.

Report intercompany transaction balances due from the
reporting parent bank holding company. This may include

Report the amount of all intercompany liabilities owed to
the nonbank subsidiaries of the bank holding company.

HC-M-10

Schedule HC-M

FR Y-9C
March 2007

Schedule HC-M

Line Item 20(d) Intercompany liabilities reported
in items 20.c(1), 20.c(2), and 20.c(3) above that
qualify as liabilities subordinated to claims of
general creditors.
Report the amount of intercompany liabilities that are
derived from subordinated debt agreement(s) that are
considered capital under SEC net capital rules (Rule
15c3-1).
Line Item 21 Net assets of subsidiaries engaged in
insurance or reinsurance underwriting pursuant to
Section 4(k)(4)(B) of the Bank Holding Company
Act as amended by the Gramm—Leach—Bliley Act.
This item is to be completed only by the top-tier financial holding company in a multi-tiered organization
(and single-tiered financial holding companies), and
includes only newly authorized insurance underwriting
activities permitted under the Gramm–Leach–Bliley
Act. A financial holding company is a U.S. bank holding
company that has submitted a declaration to become a
financial holding company with the appropriate Federal
Reserve Bank and whose declaration has been determined to be effective as of the reporting period (e.g.,
March 31, June 30, September 30, or December 31).
Report the total net assets for subsidiaries engaged in
insurance or reinsurance underwriting pursuant to Section 4(k)(4)(B) of the Bank Holding Company Act as
amended by the Gramm—Leach—Bliley Act. The definition of assets generally corresponds to Schedule HC,
Balance Sheet, line 12. Include both domestic and foreign subsidiaries that are owned by the financial holding
company. Exclude from this item:
(1) intercompany assets and claims on affiliates that are
eliminated when preparing consolidated financial
statements for the financial holding company,
(2) subsidiaries that engage solely in underwriting creditrelated insurance that was permissible for bank holding companies to engage in prior to the Gramm–
Leach–Bliley Act under Section 225.28(b)(11)(i) of
Regulation Y, and
(3) subsidiaries that are principally engaged in insurance
agency activities.
Line Item 22 Address (URL) for the reporting
bank holding company’s web page that displays risk
disclosures, including credit and market risks.
(This item is to be reported by bank holding companies
with total assets of $30 billion or more.)
FR Y-9C
Schedule HC-M

March 2007

Report the bank holding company’s Internet Web address,
also known as the Uniform Resource Locator (URL), that
the public enters into Internet browser software in order
to access the bank holding company’s risk disclosure
information. Bank holding companies should provide the
URL that links directly to the risk disclosure information
on the bank holding company’s web site or to a table that
cross-references to the location of the disclosures on the
web site. The risk disclosure information should include
the information as outlined in SR letter 01-6. This risk
information would typically be found in the management’s discussion and analysis (MD&A) of Form 10-K
and Form 10-Q filed with the SEC.
Each bank holding company should ensure that it accurately reports its URL. Do not provide an e-mail address
in the space for the Web address. The URL reported in
this item will be publicly available. Examples of URLs
are www.bhc.com/riskdisclosure and www.bhc.com/fin/;
do not preface with http:// because this is already included
on the form.
Line Item 23

Secured liabilities.

(This item is to be completed by all bank holding
companies.)
Report in the appropriate subitem the carrying amount of
federal funds purchased (in domestic offices) and ‘‘Other
borrowings’’ that are secured, i.e., the carrying amount of
these types of liabilities for which the bank holding
company (or a consolidated subsidiary) has pledged
securities, loans, or other assets as collateral.
Line Item 23(a) Amount of ‘‘Federal funds
purchased (in domestic offices)’’ that are secured.
Report the carrying amount of federal funds purchased
(in domestic offices) (as defined for Schedule HC, item
14(a)) that are secured.
Line Item 23(b) Amount of ‘‘Other borrowings’’
that are secured.
Report the carrying amount of ‘‘Other borrowings’’ (as
defined for Schedule HC-M, item 14(d)) that are secured.
Secured ‘‘Other borrowings’’ include, but are not limited
to, transfers of financial assets accounted for as financing
transactions because they do not satisfy the criteria for sale
accounting under FASB Statement No. 140, mortgages
payable on bank holding company premises and other real
estate owned, and obligations under capitalized leases.
HC-M-11

LINE ITEM INSTRUCTIONS FOR

Past Due and Nonaccrual Loans, Leases,
and Other Assets
Schedule HC-N

General Instructions
Report on a fully consolidated basis all loans including
loans held for sale, leases, debt securities, and other
assets that are past due or are in nonaccrual status,
regardless of whether such credits are guaranteed or
secured or by the U.S. Government or by others. Loan
amounts should be reported net of unearned income to
the extent that they are reported net of unearned income
in Schedule HC-C. All lease, debt security, and other
asset amounts must be reported net of unearned income.
Report the full recorded investment in assets that are past
due or in nonaccrual status, as reported for purposes of
Schedule HC, Balance Sheet, not simply the delinquent
payments.
When a bank holding company services residential mortgage loans insured by the Federal Housing Administration (FHA) or the Farmers Home Administration (FmHA)
or guaranteed by the Veterans Administration (VA) that
back Government National Mortgage Association
(GNMA) securities, i.e., ‘‘GNMA loans,’’ after it has
securitized the loans in a transfer accounted for as a sale,
FASB Statement No. 140 requires the bank holding
company to bring individual delinquent GNMA loans
that it previously accounted for as sold back onto its
books as loan assets when, under the GNMA MortgageBacked Securities Guide, the loan meets GNMA’s specified delinquency criteria and is eligible for repurchase.
This rebooking of GNMA loans is required regardless of
whether the bank holding company, as seller-servicer,
intends to exercise the repurchase (buy-back) option. A
seller-servicer must report all delinquent rebooked GNMA
loans that have been repurchased or are eligible for
repurchase as past due in Schedule HC-N in accordance
with their contractual repayment terms. In addition, if a
bank holding company services GNMA loans, but was
not the transferor of the loans that were securitized, and
purchases individual delinquent loans out of the GNMA
securitization, the bank holding company must report the
FR Y-9C
Schedule HC-N

March 2007

purchased loans as past due in Schedule HC-N in accordance with their contractual repayment terms even
though the bank holding company was not required to
record the delinquent GNMA loans as assets prior to
purchasing the loans. Such delinquent GNMA loans
should be reported in items 1(c), 11, and 11(b) of
Schedule RC-N.

Definitions
Past Due—The past due status of a loan or other asset
should be determined in accordance with its contractual
repayment terms. For purposes of this schedule, grace
periods allowed by the bank holding company after a
loan or other asset technically has become past due but
before the imposition of late charges are not to be taken
into account in determining past due status. Furthermore,
loans, leases, debt securities, and other assets are to be
reported as past due when either interest or principal is
unpaid in the following circumstances:
(1) Closed-end installment loans, amortizing loans
secured by real estate, and any other loans and lease
financing receivables with payments scheduled
monthly are to be reported as past due when the
borrower is in arrears two or more monthly payments. (At a bank holding company’s option, loans
and leases with payments scheduled monthly may be
reported as past due when one scheduled payment is
due and unpaid for 30 days or more.) Other multipayment obligations with payments scheduled other than
monthly are to be reported as past due when one
scheduled payment is due and unpaid for 30 days or
more.
(2) Open-end credit such as charge-card plans, check
credit, and other revolving credit plans are to be
reported as past due when the customer has not made
the minimum payment for two or more billing cycles.
HC-N-1

Schedule HC-N

(3) Single payment and demand notes, debt securities,
and other assets providing for the payment of interest
at stated intervals are to be reported as past due after
one interest payment is due and unpaid for 30 days or
more.
(4) Single payment notes, debt securities, and other
assets providing for the payment of interest at maturity are to be reported as past due after maturity if
interest or principal remains unpaid for 30 days or
more.
(5) Unplanned overdrafts are to be reported as past due if
the account remains continuously overdrawn for
30 days or more.
For purposes of this schedule, a full payment in computing past due status for consumer installment loans (both
closed-end and open-end) is defined to include a partial
payment equivalent to 90 percent or more of the contractual payment.
NOTE: The time period used for reporting past due
status as indicated above may not in all instances conform to those utilized by federal bank regulators in bank
examinations.
Nonaccrual—For purposes of this schedule, an asset is
to be reported as being in nonaccrual status if: (1) it is
maintained on a cash basis because of deterioration in the
financial condition of the borrower, (2) payment in full of
principal or interest is not expected, or (3) principal or
interest has been in default for a period of 90 days or
more unless the asset is both well secured and in the
process of collection.
An asset is ‘‘well secured’’ if it is secured (1) by
collateral in the form of liens on or pledges of real or
personal property, including securities, that have a realizable value sufficient to discharge the debt (including
accrued interest) in full, or (2) by the guarantee of a
financially responsible party. An asset is ‘‘in the process
of collection’’ if collection of the asset is proceeding in
due course either (1) through legal action, including
judgment enforcement procedures, or, (2) in appropriate
circumstances, through collection efforts not involving
legal action which are reasonably expected to result in
repayment of the debt or in its restoration to a current
status in the near future.
For purposes of applying the third test for nonaccrual
status listed above, the date on which an asset reaches
nonaccrual status is determined by its contractual terms.
HC-N-2

If the principal or interest on an asset becomes due and
unpaid for 90 days or more on a date that falls between
report dates, the asset should be placed in nonaccrual
status as of the date it becomes 90 days past due and
itshould remain in nonaccrual status until it meets the
criteria for restoration to accrual status described below.
In the following situations, an asset need not be placed in
nonaccrual status:
(1) The criteria for accrual of income under the interest
method specified in AICPA Statement of Position
03-3, ‘‘Accounting for Certain Loans or Debt Securities Acquired in a Transfer,’’ are met for a purchased
impaired loan or debt security accounted for in
accordance with that Statement of Position, regardless of whether the loan or debt security had been
maintained in nonaccrual status by its seller. For
further information, see the Glossary entry for “purchased impaired loans and debt securities.”
(2) The criteria for amortization (i.e., accretion of discount) specified in AICPA Practice Bulletin No. 6,
‘‘Amortization of Discounts on Certain Acquired
Loans,’’ are met with respect to a loan or other debt
instrument accounted for in accordance with that
Practice Bulletin that was acquired at a discount
(because there is uncertainty as to the amounts or
timing of future cash flows) from an unaffiliated third
party (such as another institution or the receiver of a
failed institution), including those that the seller had
maintained in nonaccrual status.
(3) The asset upon which principal or interest is due and
unpaid for 90 days or more is a consumer loan (as
defined for Schedule HC-C, item 6, ‘‘Loans to individuals for household, family, and other personal
expenditures’’) or a loan secured by a 1-to-4 family
residential property (as defined for Schedule HC-C,
item 1(c), Loans ‘‘Secured by 1-4 family residential
properties’’). Nevertheless, such loans should be
subject to other alternative methods of evaluation to
assure that the bank holding company’s net income is
not materially overstated. To the extent that the bank
holding company has elected to carry such a loan in
nonaccrual status on its books, the loan must be
reported as nonaccrual in this schedule.
As a general rule, a nonaccrual asset may be restored to
accrual status when:
Schedule HC-N

FR Y-9C
March 2007

Schedule HC-N

(1) None of its principal and interest is due and unpaid,
and the bank holding company expects repayment of
the remaining contractual principal and interest, or
(2) When it otherwise becomes well secured and in the
process of collection.
For purposes of meeting the first test for restoration to
accrual status, the bank holding company must have
received repayment of the past due principal and interest
unless, as discussed in the Glossary entry for ‘‘nonaccrual status,’’
(1) The asset has been formally restructured and qualifies for accrual status,
(2) The asset is a purchased impaired loan or debt
security accounted for in accordance with AICPA
Statement of Position 03-3 and it meets the criteria
for accrual of income under the interest method
specified in that Statement of Position,
(3) The asset has been acquired at a discount (because
there is uncertainty as to the amounts or timing of
future cash flows) from an unaffiliated third party, is
accounted for in accordance with AICPA Practice
Bulletin No. 6, and meets the criteria for amortization
(i.e., accretion of discount) specified in that Practice
Bulletin, or
(4) The borrower has resumed paying the full amount of
the scheduled contractual interest and principal payments on a loan that is past due and in nonaccrual
status, even though the loan has not been brought
fully current, and certain repayment criteria are met.
For further information, see the Glossary entry for ‘‘nonaccrual status.’’
Restructured—For purposes of this schedule, restructured loans and leases are those loans and leases whose
terms have been modified, because of a deterioration in
the financial condition of the borrower, to provide for a
reduction of either interest or principal. Once an obligation has been restructured because of such credit problems, it continues to be considered restructured until paid
in full or, if the obligation yields a market rate, until the
year subsequent to the year in which the restructuring
takes place. A loan extended or renewed at a stated
interest rate equal to the current interest rate for new debt
with similar risk is not considered a restructured loan.
Also, a loan to a purchaser of ‘‘other real estate owned’’
by the reporting bank holding company for the purpose
FR Y-9C
Schedule HC-N

March 2007

of facilitating the disposal of such real estate is not
considered a restructured loan.
For further information, see the Glossary entry for
‘‘troubled debt restructurings.’’

Column Instructions
The columns of Schedule HC-N are mutually exclusive.
Any given loan, lease, debt security, or other asset should
be reported in only one of columns A, B, and C.
Information reported for any given off-balance sheet
contract should be reported in only column A or column B.
Report in columns A and B of Schedule HC-N (except for
Memorandum item 6) the recorded investments (not just
delinquent payments) of loans, leases, debt securities,
and other assets that are past due and upon which the
bank continues to accrue interest, as follows:
(1) In column A, report closed-end monthly installment
loans, amortizing loans secured by real estate, lease
financing receivables, and open-end credit in arrears
two or three monthly payments; other multipayment
obligations with payments scheduled other than
monthly when one scheduled payment is due and
unpaid for 30 through 89 days; single payment and
demand notes, debt securities, and other assets providing for payment of interest at stated intervals
after one interest payment is due and unpaid for
30 through 89 days; single payment notes, debt
securities, and other assets providing for payment of
interest at maturity, on which interest or principal
remains unpaid for 30 through 89 days after maturity;
unplanned overdrafts, whether or not the bank hold
company is accruing interest on them, if the account
remains continuously overdrawn for 30 through
89 days.
(2) In column B, report the loans, lease financing receivables, debt securities, and other assets as specified
above on which payment is due and unpaid for
90 days or more.
Include in columns A and B, as appropriate (except for
Memorandum item 6), all loans, leases, debt securities,
and other assets which, subsequent to their restructuring by means of a modification of terms, have become
30 days or more past due and upon which the bank
holding company continues to accrue interest. Exclude
HC-N-3

Schedule HC-N

from columns A and B all loans, leases, debt securities,
and other assets that are in nonaccrual status.

Line Item 1(b)
offices.

Report in columns A and B of Memorandum item 6 the
fair value, if positive, of all interest rate, foreign exchange
rate, equity and commodity and other derivative contracts on which a required payment by the bank holding
company’s counterparty is due and unpaid for 30 through
89 days and due and unpaid for 90 days or more,
respectively.

Report in the appropriate column all past due and nonaccrual loans in domestic offices secured by farmland and
improvements thereon, included in Schedule HC-C,
item 1(b).

Report in column C the recorded investments in loans,
leases, debt securities, and other assets that are in nonaccrual status. Include all restructured loans, leases, debt
securities, and other assets that are in nonaccrual status.
However, restructured loans, leases, debt securities, and
other assets with a zero percent effective interest rate are
not to be reported in this column as nonaccrual assets.

Item Instructions
The loan category definitions used in Schedule HC-N
correspond with the loan category definitions found in
Schedule HC-C. Consistent with Schedule HC-C, the
category-by-category breakdown of loans and leases in
Schedule HC-N includes (1) loans and leases held for
sale and (2) loans and leases that the reporting bank
holding company has the intent and ability to hold for the
foreseeable future or until maturity or payoff.
Line Item 1

Loans secured by real estate.

Report in the appropriate subitem and column all past
due and nonaccrual loans secured by real estate included
in Schedule HC-C, item 1. In addition, report in item 1(f),
‘‘In foreign offices’’ past due and nonaccrual loans and
leases secured by real estate in foreign offices.
Line Item 1(a) Construction, land development,
and other land loans in domestic offices.
Report in the appropriate column all past due and nonaccrual loans in domestic offices secured by real estate
made to finance land development (i.e., the process of
improving land—laying sewers, water pipes, etc.) preparatory to erecting new structures or the on-site construction of industrial, commercial, residential, or farm buildings included in Schedule HC-C, item 1(a).
HC-N-4

Secured by farmland in domestic

Line Item 1(c) Secured by 1–4 family residential
properties in domestic offices.
Report in the appropriate column all past due and nonaccrual loans in domestic offices secured by 1–4 family
residential properties included in Schedule HC-C,
item 1(c).
Line Item 1(c)(1) Revolving, open-end loans
secured by 1–4 family residential properties and
extended under lines of credit.
Report in the appropriate column all past due and nonaccrual loans secured by revolving, open-end lines of
credit secured by 1-to-4 family residential properties,
included in Schedule HC-C, item 1(c)(1).
Line Item 1(c)(2) Closed-end loans secured by
1–4 family residential properties.
Report in the appropriate subitem and column the amount
of all closed-end loans secured by 1–4 family residential
properties (in domestic offices), included for Schedule HC-C, item 1(c)(2), column B, that are past due
30 days or more or are in nonaccrual status as of the
report date.
Line Item 1(c)(2)(a)

Secured by first liens.

Report in the appropriate column the amount of all
closed-end loans secured by first liens on 1–4 family
residential properties (in domestic offices), included for
Schedule HC-C, item 1(c)(2)(a), column B, that are past
due 30 days or more or are in nonaccrual status as of the
report date.
Line Item 1(c)(2)(b)

Secured by junior liens.

Report in the appropriate column the amount of all
closed-end loans secured by junior liens on 1–4 family
residential properties (in domestic offices), included for
Schedule HC-C, item 1(c)(2)(b), column B, that are past
due 30 days or more or are in nonaccrual status as of the
report date. Include loans secured by junior liens in this
item even if the bank holding company also holds a loan
Schedule HC-N

FR Y-9C
March 2007

Schedule HC-N

secured by a first lien on the same 1–4 family residential
property and there are no intervening junior liens.
Line Item 1(d) Secured by multifamily (5 or more)
residential properties in domestic offices.
Report in the appropriate column all past due and nonaccrual loans secured by (5 or more) residential properties (in domestic offices) included in Schedule HC-C,
item 1(d).
Line Item 1(e) Secured by nonfarm nonresidential
properties in domestic offices.
Report in the appropriate column all past due and nonaccrual loans in domestic offices secured by nonfarm
nonresidential properties included in Schedule HC-C,
item 1(e).
Line Item 1(f)

Secured by loans in foreign offices.

Report in the appropriate column all past due and nonaccrual loans secured by real estate in foreign offices
included in Schedule HC-C, item 1, column A.
Line Item 2 Loans to depository institutions and
acceptances of other banks.
Report in the appropriate column all past due and nonaccrual loans and acceptances of other banks included in
Schedule HC-C, item 2.
Line Item 2(a) U.S. banks and other U.S.
depository institutions.
Report in the appropriate column all past due and nonaccrual loans to and acceptances of U.S. banks and other
depository institutions included on Schedule HC-C,
item 2(a).
Line Item 2(b)

Foreign banks.

Report in the appropriate column all past due and nonaccrual loans to and acceptances of foreign banks included
in Schedule HC-C, item 2(b).
Line Item 3 Loans to finance agricultural
production and other loans to farmers.
Report in the appropriate column all past due and nonaccrual loans to finance agricultural production and other
loans to farms included in Schedule HC-C, item 3.
FR Y-9C
Schedule HC-N

March 2007

Line Item 4

Commercial and industrial loans.

Report in the appropriate column all past due and nonaccrual commercial and industrial loans included in
Schedule HC-C, item 4.
Line Item 5 Loans to individuals for household,
family, and other personal expenditures.
Report in the appropriate column all past due and nonaccrual loans to individuals for household, family, and
other personal expenditures included in Schedule HC-C,
item 6, column A.
Line Item 5(a)

Credit cards.

Report in the appropriate column all past due and nonaccrual loans arising from credit cards included in Schedule HC-C, item 6(a).
Line Item 5(b) Other (includes single payment,
installment, all student loans, and revolving credit
plans other than credit cards).
Report in the appropriate column all other past due and
nonaccrual loans to individuals for household, family,
and other personal expenditures included in Schedule HC-C, items 6(b) and 6(c).
Line Item 6 Loans to foreign governments and
official institutions.
Report in the appropriate column all past due and nonaccrual loans to foreign governments and official institutions included in Schedule HC-C, item 7.
Line Item 7

All other loans.

Report in the appropriate column all other past due and
nonaccrual loans included in Schedule HC-C, item 9.
Line Item 8 Lease financing receivables (net of
unearned income).
Report in the appropriate subitem and column the amount
of all lease financing receivables (net of unearned
income) included in Schedule HC-C, item 10, that are
past due 30 days or more or are in nonaccrual status as of
the report date.
Line Item 8(a) Leases to individuals for household,
family, and other personal expenditures.
Report in the appropriate column the amount of all leases
(net of unearned income) to individuals for household,
HC-N-5

Schedule HC-N

family, and other personal expenditures included in
Schedule HC-C, item 10(a), column A, that are past due
30 days or more or are in nonaccrual status as of the
report date.
Line Item 8(b)

All other leases.

Report in the appropriate column the amount of all other
leases (net of unearned income) included in Schedule
HC-C, item 10(b), column A, that are past due 30 days or
more or are in nonaccrual status as of the report date.
Line Item 9 Debt securities and other assets
(exclude other real estate owned and other
repossessed assets).
Report in the appropriate column all assets other than
loans and leases reportable in Schedule HC that are past
due 30 days or more or are in nonaccrual status as of
the report date. Include such assets as debt securities
and interest-bearing balances due from depository
institutions. Also include operating lease payments receivable that have been recorded as assets in Schedule HC,
item 11, when the operating lease is past due 30 days or
more or in nonaccrual status. Exclude other real estate
owned reportable in Schedule HC, item 7, and other
repossessed assets reportable in Schedule HC, item 11,
such as automobiles, boats, equipment, appliances, and
similar personal property.
Line Item 10

Total.

Report the sum of items 1 through 9.
Line Item 11 Loans and leases reported in
items 1 through 8 above which are wholly or
partially guaranteed by the U.S. Government.
Report in the appropriate column the aggregate recorded
investment in all loans and leases reported in items 1
through 8 above for which repayment of principal is
wholly or partially guaranteed or insured by the U.S.
Government, including its agencies and its governmentsponsored agencies. Examples include loans guaranteed
by the FDIC (through loss-sharing arrangements in
FDIC-assisted acquisitions), the Small Business Administration, and the Federal Housing Administration.
Exclude from this item loans and leases guaranteed by or
insured by state or local governments, state or local
government agencies, foreign (non-U.S.) governments,
and private agencies or organizations. Also exclude loans
HC-N-6

and leases collateralized by securities issued by the U.S.
Government, including its agencies and its governmentsponsored agencies. Amounts need not be reported in this
item and in item 11(a) below if they are considered
immaterial.
Line Item 11(a) Guaranteed portion of loans and
leases (exclude rebooked ′GNMA loans’) included in
item 11 above.
Report in the appropriate column the maximum amount
recoverable from the U.S. Government, including its
agencies and its government-sponsored agencies, under
the guarantee or insurance provisions applicable to the
loans and leases included in Schedule HC-N, item 11,
above.
Seller-servicers of GNMA loans should exclude all delinquent rebooked GNMA loans that have been repurchased
or are eligible for repurchase from this item (report such
rebooked GNMA loans in item 11(b) below). Servicers
of GNMA loans should exclude individual delinquent
loans (for which they were not the transferor) that they
have purchased out of GNMA securitizations from this
item (report such purchased GNMA loans in item 11(b)
below).
Line item 11(b) Rebooked ‘‘GNMA loans’’ that have
been repurchased or are eligible for repurchase
included in item 11 above.
Report in the appropriate column the recorded investment in:
(1) Delinquent rebooked GNMA loans that have been
repurchased or are eligible for repurchase by sellerservicers of GNMA loans; and
(2) Delinquent loans that have been purchased out of
GNMA securitizations by servicers of GNMA loans
that were not the transferors of the loans.

Memoranda
Line Item M1 Restructured loans and leases
included in items 1 through 8, above (and not
reported in Schedule HC-C, memoranda item 1.)
Report the amount of restructured loans and leases (as
defined above) that under their modified terms are past
due 30 days or more or are in nonaccrual status as of
the report date. Such loans and leases will have been
included in one or more of the loan categories in
Schedule HC-N

FR Y-9C
March 2007

Schedule HC-N

items 1 through 8 of this schedule. However, exclude
from this item all restructured loans secured by 1-to-4
family residential properties and all restructured loans to
individuals for household, family, and other personal
expenditures.
Line Item M2 Loans to finance commercial real
estate, construction, and land development activities
included (not secured by real estate) in
Schedule HC-N, items 4 and 7, above.
Report the amount of loans to finance commercial real
estate, construction, and land development activities not
secured by real estate that are past due 30 days or more
or are in nonaccrual status as of the report date. Such
loans will have been included in items 4 and 7 of
Schedule HC-N above. Exclude from this item all loans
secured by real estate included in item 1 of Schedule HC-N above. This item corresponds with the amounts
reported in memoranda item 2 of Schedule HC-C.
Line Item M3 Loans and leases included in
Schedule HC-N, items 1, 2, 4, 5, 6, 7, and 8
extended to non-U.S. addresses.
Report the total amount of past due and nonaccrual loans
and leases extended to customers domiciled in a foreign
country.
See the Glossary entry for ‘‘domicile’’ for the definition
of non-U.S. addressee.
Line Item M4

Not applicable.

Line Item M5

Loans and leases held for sale.

Report in the appropriate column the amount of all loans
and leases held for sale included in Schedule HC,
item 4(a), that are past due 30 days or more or are in
nonaccrual status as of the report date. Such loans and
leases will have been included in one or more of the loan
and lease categories in items 1 through 8 of Schedule HC-N above.

by the bank holding company’s counterparty is past due
30 days or more as of the report date.
Line Item M7 Additions to nonaccrual assets
during the quarter.
Report the aggregate amount of all loans, leases, debt
securities, and other assets (net of unearned income) that
have been placed in nonaccrual status during the calendar
quarter ending on the report date. Include those assets
placed in nonaccrual status during the quarter that are
included as of the quarter-end report date in Schedule
HC-N, column C, items 1 through 9. Also include those
assets placed in nonaccrual status during the quarter that,
before the current quarter-end, have been sold, paid off,
charged-off, settled through foreclosure or concession of
collateral (or any other disposition of the nonaccrual
asset) or have been returned to accrual status. In other
words, the aggregate amount of assets placed in nonaccrual status since the prior quarter-end that should be
reported in this item should not be reduced, for example,
by any charge-offs or sales of such nonaccrual assets. If a
given asset is placed in nonaccrual status more than once
during the quarter, report the amount of the asset only
once.
Line Item M8
quarter.

Nonaccrual assets sold during the

Report the total of the outstanding balances of all loans,
leases, debt securities, and other assets held in nonaccrual
status (i.e., reportable in Schedule HC-N, column C,
items 1 through 9) that were sold during the calendar
quarter ending on the report date. The amount to be
included in this item is the outstanding balance (net of
unearned income) of each nonaccrual asset at the time of
its sale. Do not report the sales price of the nonaccrual
assets and do not include any gains or losses from the
sale. For purposes of this item, only include those
transfers of nonaccrual assets that meet the criteria for a
sale as set forth in FASB Statement No. 140. For further
information, see the Glossary entry for ‘‘Transfers of
financial assets.’’

Line Item M6 Interest rate, foreign exchange rate,
and other commodity and equity contracts: Fair
value of amounts carried as assets.

Line Item M9 Construction, land development,
and other land loans (in domestic offices).

Report in the appropriate column the fair value for all
interest rate, foreign exchange rate, and other derivative
contracts commodity and equity contracts (as defined for
Schedule HC-L, item 11) on which a required payment

Report in the appropriate subitem and column the amount
of all construction, land development, and other land
loans (in domestic offices) included in Schedule HC-C,
item 1(a), column B, that are past due 30 days or more or

FR Y-9C
Schedule HC-N

March 2007

HC-N-7

Schedule HC-N

are in nonaccrual status as of the report date. The sum of
Memorandum items 9(a) and 9(b) must equal Schedule
HC-N, item 1(a).
Line Item M9(a) 1-4 family residential
construction loans.
Report in the appropriate column the amount of all 1-4
family residential construction loans (in domestic offices)
included in Schedule HC-C, Memorandum item 7(a), that

HC-N-8

are past due 30 days or more or are in nonaccrual status
as of the report date.
Line Item M9(b) Other construction loans and all
land development and other land loans.
Report in the appropriate column the amount of all other
construction loans and all land development and other
land loans (in domestic offices) included in Schedule
HC-C, Memorandum item 7(b), that are past due 30 days
or more or are in nonaccrual status as of the report date.

Schedule HC-N

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Closed-End 1–4 Family Residential
Mortgage Banking Activities
Schedule HC-P

General Instructions
Schedule HC-P is to be completed by (1) all bank holding
companies with $1 billion or more in total assets1 and
(2) bank holding companies with less than $1 billion in
total assets whose closed-end 1-4 family residential
mortgage banking activities (in domestic offices) exceed
a specified level. More specifically, a bank holding
company with less than $1 billion in total assets must
complete Schedule HC-P if any of the following residential mortgage banking activities exceed $10 million for
two consecutive quarters:
(a) Closed-end first lien and junior lien 1-4 family
residential mortgage loan originations and purchases for resale from all sources during a calendar quarter; or
(b) Closed-end first lien and junior lien 1-4 family
residential mortgage loan sales during a calendar
quarter; or
(c) Closed-end first lien and junior lien 1-4 family
residential mortgage loans held for sale at calendar quarter-end.
For a bank holding company with less than $1 billion in
total assets, the bank holding company must complete
Schedule HC-P beginning the second quarter in which
the $10 million threshold is exceeded and continue to
complete the schedule through the end of the calendar
year. For example, if the bank holding company’s closedend first and junior lien 1-4 family residential mortgage
loan originations and purchases for resale from all
sources exceeded $10 million during the quarter ended
June 30, 2006, and the bank holding company’s sales of
such loans exceeded $10 million during the quarter ended
September 30, 2006, the bank holding company would be
1. The $1 billion asset size test is generally based on the total assets
reported as of June 30, of the previous calendar year.
FR Y-9C
Schedule HC-P

March 2007

required to complete Schedule HC-P in its September 30
and December 31, 2006, reports. If its total assets remain
less than $1 billion, the level of this bank holding
company’s mortgage banking activities during the fourth
quarter of 2006 and the first quarter of 2007 would
determine whether it would need to complete Schedule
HC-P each quarter during 2007 beginning March 31,
2007.
For purposes of Schedule HC-P, closed-end 1-4 family
residential mortgage loans are defined in Schedule HC-C,
item 1(c)(2), ‘‘Closed-end loans secured by 1-4 family
residential properties.’’ All closed-end 1-4 family residential mortgage loans secured by junior (i.e., other than
first) liens should be reported as junior liens in Schedule
HC-P even if the bank holding company has also originated or purchased a loan secured by a first lien on the
same 1-4 family residential property and there are no
intervening junior liens.
Report closed-end 1-4 family residential mortgage banking activities in domestic offices only.
Line item 1 Retail originations during the quarter
of closed-end 1-4 family residential mortgage loans
for sale.
Report in the appropriate subitem the principal amount of
retail originations of closed-end 1-4 family residential
mortgage loans for resale during the calendar quarter
ending on the report date. Include as retail originations
those closed-end 1-4 family residential mortgage loans
for which the origination and underwriting process was
handled exclusively by the bank holding company or a
consolidated subsidiary of the bank holding company.
Exclude closed-end 1-4 family residential mortgage loans
originated or purchased for the reporting bank’s own loan
portfolio.
HC-P-1

Schedule HC-P

Line item 1(a)

First liens.

Report the principal amount of retail originations of
closed-end first lien 1-4 family residential mortgage
loans for resale during the calendar quarter.
Line item 1(b)

Junior liens.

Report the principal amount of retail originations of
closed-end junior lien 1-4 family residential mortgage
loans for resale during the calendar quarter.
Line item 2 Wholesale originations and purchases
during the quarter of closed-end 1-4 family
residential mortgage loans for sale.
Report in the appropriate subitem the principal amount of
wholesale originations and purchases of closed-end 1-4
family residential mortgage loans for resale during the
calendar quarter ending on the report date. Include as
wholesale originations and purchases those closed-end
1-4 family residential mortgage loans for resale for which
the origination and underwriting process was handled in
whole or in part by another party, such as a correspondent
or mortgage broker, even if the loan was closed in the
name of the bank holding company or a consolidated
subsidiary of the bank holding company. Also include
acquisitions of closed-end 1-4 family residential mortgage loans for resale that were closed in the name of a
party other than the bank holding company or a consolidated subsidiary of the bank holding company.
Exclude closed-end 1-4 family residential mortgage loans
originated or purchased for the reporting bank holding
company’s own loan portfolio.
Line item 2(a)

First liens.

Report the principal amount of wholesale originations
and purchases of closed-end first lien 1-4 family residential mortgage loans for resale during the calendar quarter.
Line item 2(b)

Junior liens.

Report the principal amount of wholesale originations
and purchases of closed-end junior lien 1-4 family residential mortgage loans for resale during the calendar
quarter.
Line item 3 Closed-end 1-4 family residential
mortgage loans sold during the quarter.
Report in the appropriate subitem the principal amount of
closed-end 1-4 family residential mortgage loans sold
HC-P-2

during the calendar quarter ending on the report date.
Include transfers of closed-end 1-4 family residential
mortgage loans originated or purchased for resale from
retail or wholesale sources that have been accounted for
as sales in accordance with FASB Statement No. 140,
i.e., those transfers where the loans are no longer included
in the bank holding company’s consolidated total assets.
Also include all sales during the quarter of closed-end
1-4 family residential mortgage loans directly from the
bank holding company’s loan portfolio. For further information, see the Glossary entry for ‘‘Transfers of financial
assets.’’
Line item 3(a)

First liens.

Report the principal amount of closed-end first lien 1-4
family residential mortgage loans sold during the calendar quarter.
Line item 3(b)

Junior liens.

Report the principal amount of closed-end junior lien 1-4
family residential mortgage loans sold during the calendar quarter.
Line item 4 Closed-end 1-4 family residential
mortgage loans held for sale at quarter-end.
Report in the appropriate subitem the carrying amount of
closed-end 1-4 family residential mortgages held for sale
as of the quarter-end report date and included in Schedule
HC, item 4(a), ‘‘Loans and leases held for sale.’’ Loans
held for sale should be reported at the lower of cost or
fair value consistent with their presentation in the balance
sheet (Schedule HC, item 4(a)). Closed-end 1-4 family
residential mortgage loans held for sale at quarter-end
include any mortgage loans transferred at any time from
the bank holding company’s loan portfolio to a held-forsale account that have not been sold by quarter-end.
Line item 4(a)

First liens.

Report the carrying amount of closed-end first lien 1-4
family residential mortgage loans held for sale at quarterend.
Line item 4(b)

Junior liens.

Report the carrying amount of closed-end junior lien 1-4
family residential mortgage loans held for sale at quarterend.
Schedule HC-P

FR Y-9C
March 2007

Schedule HC-P

Line Item 5 Noninterest income for the quarter
from the sale, securitization, and servicing of
closed-end 1-4 family residential mortgage loans.
Report the noninterest income earned during the calendar
quarter ending on the report date from mortgage banking
activities involving closed-end 1-4 family residential

FR Y-9C
Schedule HC-P

March 2007

mortgage loans. Include the portion of the consolidated
bank holding company’s “Net servicing fees,” “Net
securitization income,” and “Net gains (losses) on sales
of loans and leases” (items 5(f), 5(g), and 5(i) of Schedule HI) earned during the quarter that is attributable to
closed-end 1-4 family residential mortgage loans.

HC-P-3

LINE ITEM INSTRUCTIONS FOR

Financial Assets and Liabilities
Measured at Fair Value
Schedule HC-Q

General Instructions

Column Instructions

Schedule HC-Q is to be completed by bank holding
companies that have adopted FASB Statement No. 157,
‘‘Fair Value Measurements’’ (FAS 157), and either:

Column A, Total Fair Value Reported on
Schedule HC

(1) Have elected to report certain assets and liabilities at
fair value with changes in fair value recognized in
earnings in accordance with U.S. generally accepted
accounting principles (GAAP) (i.e., FASB Statement
No. 159, ‘‘The Fair Value Option for Financial
Assets and Financial Liabilities’’ (FAS 159); FASB
Statement No. 155, ‘‘Accounting for Certain Hybrid
Financial Instruments’’ (FAS 155); and FASB Statement No. 156, ‘‘Accounting for Servicing of Financial Assets’’ (FAS 156)). This election is generally
referred to as the fair value option.
OR
(1) Are required to complete Schedule HC-D, Trading
Assets and Liabilities.
Bank holding companies that have elected to report
certain assets and liabilities at fair value through earnings
in accordance with FAS 155 and/or FAS 156, but have
not adopted FAS 157, need not complete Schedule HC-Q
until the first quarter-end report date after the effective
date of FAS 157, which is determined based on a bank
holding company’s fiscal year.
Bank holding companies must adopt FAS 157 for purposes of this report in the first fiscal quarter of their first
fiscal year beginning after November 15, 2007. Thus,
bank holding companies with a calendar year fiscal year
must adopt FAS 157 as of January 1, 2008. Earlier
adoption of FAS 157 is permitted as of the beginning of
an earlier fiscal year in accordance with the provisions of
the standard (e.g., as of January 1, 2007, for bank holding
companies with a calendar year fiscal year, provided FAS
157 is applied in their originally filed March 31, 2007,
reports).
FR Y-9C
Schedule HC-Q

March 2007

For items 1, 2(a), 3, 4, 6, and 7, include in Column A the
total fair value of those assets and liabilities reported on
Schedule HC, Balance Sheet, that the bank holding
company has elected to report at fair value under the fair
value option. For items 2 and 5, include in Column A the
total amount of trading assets and trading liabilities
reported in Schedule HC, item 5 and item 15, respectively.

Columns B and C, Fair Value Measurements
Include in Column B the fair value reported in Column A
for those assets or liabilities whose fair value was
determined using Level 2 measurement inputs as defined
in FAS 157. Include in Column C the fair value reported
in Column A for those assets or liabilities whose fair
value was determined using Level 3 inputs as defined in
FAS 157. If the fair value of an asset or liability has
elements of both Level 2 and Level 3 measurement
inputs, report the entire fair value of the asset or liability
in Column B or Column C based on the lowest level
measurement input with the most significance to the fair
value of the asset or liability in its entirety as described in
FAS 157. For more information on Level 2 and 3
measurement inputs, see the Glossary entry for ‘‘fair
value.’’ Line Item 1 Loans and leases.
Report in the appropriate column the total fair value of
those loans held for sale and held for investment that the
bank holding company has elected to report under the fair
value option and the fair values determined using Level 2
and Level 3 measurement inputs. Loans held for sale that
the bank holding company has elected to report under the
fair value option are included in Schedule HC, item 4(a).
Loans held for investment that the bank holding company
HC-Q-1

Schedule HC-Q

has elected to report under the fair value option are
included in Schedule HC, item 4(b). Leases are generally
not eligible for the fair value option. Exclude loans held
for sale that are reported at the lower of cost or fair value.
Line Item 2 Trading assets.
Report in the appropriate column the total fair value of
trading assets as reported in Schedule HC, item 5, and the
fair values determined using Level 2 and Level 3 measurement inputs. Line Item 2(a) Nontrading securities at
fair value with changes in fair value reported in current
earnings.
Report in the appropriate column the total fair value of
those securities the bank holding company has elected to
report under the fair value option that is included in
Schedule HC-Q, item 2 above, and the fair values
determined using Level 2 or Level 3 measurement inputs.
Securities that the bank holding company has elected to
report at fair value under the fair value option are
reported as trading securities pursuant to FAS 159 even
though management did not acquire the securities principally for the purpose of selling them in the near term.
Line Item 3 All other financial assets and servicing
assets.

report under the fair value option that is included in
Schedule HC, items 13(a)(1) through 13(b)(2), and the
fair values determined using Level 2 and Level 3 measurement inputs. Deposits with demand features (e.g.,
demand and savings deposits in domestic offices) are
generally not eligible for the fair value option.
Line Item 5 Trading liabilities.
Report in the appropriate column the total fair value of
trading liabilities as reported in Schedule HC, item 15,
and the fair values determined using Level 2 and Level 3
measurement inputs.
Line Item 6 All other financial liabilities and
servicing liabilities.
Report in the appropriate column the total fair value of all
other liabilities (except loan commitments reported in
Schedule HC-Q, item 7 below) the bank holding company has elected to report under the fair value option that
is included in Schedule HC, Balance Sheet, and is not
reported in Schedule HC-Q, items 4 and 5 above, and the
fair values determined using Level 2 or Level 3 measurement inputs.

Report in the appropriate column the total fair value of all
other assets (except loan commitments reported in Schedule HC-Q, item 7 below) the bank holding company has
elected to report under the fair value option that is
included in Schedule HC, Balance Sheet, and is not
reported in Schedule HC-Q, items 1 and 2 above, and the
fair values determined using Level 2 or Level 3 measurement inputs.

Exclude derivative liabilities held for purposes other than
trading from this item. Because derivatives are required
to be reported at fair value on the balance sheet under
applicable accounting standards, the fair value option
cannot be applied to them.

Exclude derivative assets held for purposes other than
trading and interest-only strips receivable (not in the
form of a security) from this item. Because these two
categories of financial instruments are required to be
reported at fair value on the balance sheet under applicable accounting standards, the fair value option cannot be
applied to them.

Report in the appropriate column the total fair value of
those unused loan commitments the bank holding company has elected to report under the fair value option that
is included in Schedule HC, Balance Sheet, and the fair
values determined using Level 2 and Level 3 measurement inputs. Exclude unused loan commitments that
meet the definition of a derivative under GAAP. For
purposes of this item, report the net fair value of unused
loan commitments reported as assets and those reported
as liabilities. If the net fair value is a liability, report it as
a negative number.

Line Item 4 Deposits.
Report in the appropriate column the total fair value of
those deposits the bank holding company has elected to

HC-Q-2

Line Item 7 Loan commitments (not accounted for
as derivatives).

Schedule HC-Q

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Regulatory Capital
Schedule HC-R

General Instructions
The instructions for Schedule HC-R should be read in
conjunction with the capital guidelines issued by the
Federal Reserve. Under the Federal Reserve’s risk-based
capital guidelines, assets and credit equivalent amounts
of derivatives and off-balance sheet items are assigned to
one of several broad risk categories according to the
obligor, or, if relevant, the guarantor or the nature of the
collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with
that category. The resulting weighted values from each of
the risk categories are added together, and generally this
sum is the bank holding company’s total risk weighted
assets which comprises the denominator of the risk-based
capital ratio.
Risk weights for derivative contracts and off-balance
sheet items are determined by a two-step process. First,
the ‘‘credit equivalent amount’’ is determined. In the case
of derivative contracts, the credit equivalent amount is
the sum of the current credit exposure (fair value of the
contract, if positive) and the potential future exposure.
In the case of most off-balance sheet items, the credit
equivalent amount is determined by multiplying the face
value or notional amount of the off-balance sheet item by
a credit conversion factor. Second, the credit equivalent
amount is treated like a balance sheet asset and generally
is assigned to the appropriate risk category according to
the obligor or, if relevant, the guarantor or the nature of
the collateral. A summary of the credit conversion factors
for off-balance sheet items is presented below.
In general, if a particular asset, derivative contract, or
off-balance sheet item has features that could place it in
more than one risk category, it is assigned to the category
that has the lowest risk weight. For example, a holding
of a U.S. municipal revenue bond that is fully guaranteed
by a U.S. bank would be assigned the 20 percent risk
weight appropriate to claims guaranteed by U.S. banks,
FR Y-9C
Schedule HC-R

March 2007

rather than the 50 percent risk weight appropriate to U.S.
municipal revenue bonds.
At each bank holding company’s option, assets and
the credit equivalent amounts of derivative contracts
and off-balance sheet items that are assigned to a risk
weight category of less than 100 percent may be
included in the amount reported for a higher risk
weight category (e.g., the 100 percent category) than
the risk weight category to which the asset or credit
equivalent amount of the off-balance sheet item would
otherwise be assigned.
For risk-based capital purposes, the term ‘‘claim’’ refers
to loans to, securities issued by, balances due from,
accrued interest receivable from, and all other claims
against the various entities with which the reporting bank
holding company conducts its business.
If a reporting bank holding company has conveyed risk
participations in bankers’ acceptances, standby letters of
credit, and commitments, it may segregate the amounts
conveyed from the total outstanding amount. The bank
holding company may then risk weight the amounts
conveyed according to the guarantors (i.e., the parties
that have acquired the conveyances) separately from the
amounts retained if this results in a lower risk weight for
the amounts conveyed.
When assets have been transferred with recourse, the
amount of risk-based capital required to be maintained to
support this exposure may not exceed the maximum
amount of recourse for which the transferring institution
is contractually liable under the recourse agreement. This
rule applies to recourse transactions in which a bank
holding company contractually limits its recourse exposure to less than the full effective minimum risk-based
capital requirement for the assets transferred—generally,
four percent for first lien residential mortgage loans and
eight percent for most other assets. These types of asset
HC-R-1

Schedule HC-R

transfers are referred to as low level recourse transactions and should be reported in Schedule HC-R,
item 50, column A.
Credit Conversion Factors for Off-Balance Sheet
Items—A summary of the credit conversion factors follows. For further information on these factors, refer to the
risk-based capital guidelines.
Off-balance sheet items subject to a 100 percent conversion factor:

Off-balance sheet items subject to a zero percent conversion factor:
(1) Unused portions of commitments with an original
maturity of one year or less.
(2) Unused portions of commitments (regardless of
maturity) which are unconditionally cancellable at
any time, provided a separate credit decision is made
before each drawing.

(1) Direct credit substitutes, including general guarantees of indebtedness and guarantee-type instruments,
such as financial standby letters of credit.

Tier 1 Capital

(2) Risk participations acquired in bankers acceptances
and in direct credit substitutes such as financial
standby letters of credit.

Report the amount of the bank holding company’s total
equity capital as reported in Schedule HC, item 28.

(3) Sale and repurchase agreements and assets sold with
recourse, if not included on the balance sheet, except
low level recourse transactions and small business
obligations transferred with recourse under Section 208 of the Riegle Community Development and
Regulatory Improvement Act of 1994, each of which
is discussed below.
(4) Forward agreements/contingent obligations to purchase assets with drawdown certain. (Exclude forward agreements that are reported as derivative
contracts.)
(5) Securities lent, if the lending bank holding company
is exposed to risk of loss.
Off-balance sheet items subject to a 50 percent conversion factor:
(1) Transaction-related contingencies, including performance standby letters of credit, shipside guarantees,
bid bonds, performance bonds, and warranties.
(2) Unused portions of commitments with an original
maturity exceeding one year, including underwriting
commitments and commercial credit lines.
(3) Revolving underwriting facilities (RUFs), note issuance facilities (NIFs), and other similar arrangements, regardless of maturity.
Off-balance sheet items subject to a 20 percent conversion factor:
(1) Short-term, self-liquidating, trade-related contingencies, including commercial letters of credit.
HC-R-2

Line item 1

Total equity capital.

Line item 2 LESS: Net unrealized gains (losses) on
available-for-sale securities (if a gain, report as a
positive value; if a loss, report as a negative value).
Report the amount of net unrealized holding gains
(losses) on available-for-sale securities that is included in
Schedule HC, item 26(b), ‘‘Accumulated other comprehensive income.’’ If the amount is a net unrealized
holding gain, report it as a positive value in this item. If
the amount is a net unrealized holding loss, report it as a
negative value in this item.
Line item 3 LESS: Net unrealized loss on
available-for-sale equity securities (report loss as a
positive value).
Report as a positive value the amount of any net unrealized holding loss on available-for-sale equity securities
that is included in Schedule HC, item 26(b), ‘‘Accumulated other comprehensive income.’’
Line item 4 LESS: Accumulated net gains (losses)
on cash flow hedges (if a gain, report as a positive
value; if a loss, report as a negative value).
Report the amount of accumulated net gains (losses)
on cash flow hedges that is included in Schedule HC,
item 26(b), ‘‘Accumulated other comprehensive income.’’
If the amount is an accumulated net gain, report it as a
positive value in this item. If the amount is an accumulated net loss, report it as a negative value in this item.
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

Line item 5 LESS: Nonqualifying perpetual
preferred stock.
Report the portion of perpetual preferred stock (and any
related surplus) included in Schedule HC, item 23, that
does not qualify for inclusion in Tier 1 capital based on
the Federal Reserve’s capital guidelines for bank holding
companies. For bank holding companies, both cumulative and noncumulative perpetual preferred stock qualifies for inclusion in Tier 1 capital. However, the aggregate amount of cumulative preferred stock that may be
included in a bank holding company’s Tier 1 capital is
limited to one-third of the sum of (1) common stockholders’ equity, (2) qualifying noncumulative preferred stock
(including related surplus) and (3) minority interest in the
equity accounts of consolidated subsidiaries. Cumulative
perpetual preferred stock in excess of this limit should be
reported as nonqualifying perpetual preferred stock in
this item. Although the amount reported in this item is
not eligible for Tier 1 capital, it may be eligible for
inclusion in Tier 2 capital in Schedule HC-R, item 13.
NOTE: For assistance in determining the amounts to be
reported in items 5, 6(a) and 6(b), see the examples
presented at the end of Schedule HC-R instructions.
Line item 6(a) Qualifying minority interests in
consolidated subsidiaries and similar items.
Report the portion of minority interests in consolidated
subsidiaries included in Schedule HC, item 22, that is
included in Tier 1 capital based on the capital guidelines.
Generally, bank holding companies may include minority
interests in equity capital accounts (both common and
noncumulative perpetual preferred stocks) of consolidated subsidiaries unless such accounts would not otherwise qualify for inclusion in Tier 1 capital. For example,
a bank holding company may not include minority
interests representing cumulative preferred stock in consolidated subsidiaries since such preferred stock, if issued
directly by the bank holding company, would not be
eligible for inclusion in Tier 1 capital.
Exclude any minority interests in consolidated assetbacked commercial paper conduits if the consolidated
program assets are excluded from risk-weighted assets.
Line item 6(b)
securities.

Qualifying trust preferred

Report instruments generally known as trust preferred
securities that are issued by consolidated special purpose
FR Y-9C
Schedule HC-R

March 2007

entities and reported in Schedule HC, item 19(b), that are
included in Tier 1 capital and are within the limits for
cumulative preferred stock as described in the risk-based
capital guidelines. For special purpose entities that issue
trust preferred securities and the entity is not consolidated, bank holding companies can include in Tier 1
capital the amount of the notes payable to the unconsolidated subsidiary, net of the bank holding company’s
investment in the special purpose entity, up to the limits
for cumulative preferred stock as described in the riskbased capital guidelines. The amount of trust preferred
stock (or notes payable to unconsolidated special purpose
entities that issue trust preferred securities, net of investment in the entity) included in Tier 1 capital and reported
in this item is limited together with cumulative perpetual
preferred stock as described for Schedule HC-R, item 5
above. Amounts in excess of these limits should be
reported in Schedule HC-R, item 16 below. For further
information, see the glossary for ‘‘Trust preferred securities issued.’’
NOTE: For assistance in determining the amounts to be
reported in items 5, 6(a) and 6(b), see the examples
presented at the end of Schedule HC-R instructions.
Line item 7(a) LESS: Disallowed goodwill and
other disallowed intangible assets.
Report the portion of goodwill included in Schedule HC,
item 10(a), and the portion of other identifiable intangible
assets included in Schedule HC-M, item 12(c), that does
not qualify for inclusion in Tier 1 capital based on the
capital guidelines. Generally, all goodwill reported in
Schedule HC, item 10(a), and all other identifiable
intangible assets reported in Schedule HC-M, item 12(c),
do not qualify for Tier 1 capital and should be included in
this item.
However, if the bank holding company has a deferred tax
liability that is specifically related to an intangible asset
(other than servicing assets and purchased credit card
relationships) acquired in a nontaxable purchase business
combination that it chooses to net against the intangible
asset for regulatory capital purposes, the amount of
disallowed intangibles to be reported in this item should
be reduced by the amount of this deferred tax liability.
However, a deferred tax liability that the bank holding
company chooses to net against the related intangible
asset for purposes of this item may not also be netted
against deferred tax assets when the bank holding company determines the amount of deferred tax assets that
HC-R-3

Schedule HC-R

are dependent upon future taxable income and calculates
the maximum allowable amount of such deferred tax
assets for regulatory capital purposes.
If the amount reported for other identifiable intangible
assets in Schedule HC-M, item 12(c), includes intangible
assets that were recorded on the reporting bank holding
company’s balance sheet on or before February 19, 1992,
the remaining book value as of the report date of these
intangible assets may be excluded from this item.
Line Item 7(b) LESS: Cumulative change in fair
value of all financial liabilities accounted for under
a fair value option that is included in retained
earnings and is attributable to changes in the bank
holding company’s own creditworthiness.
When determining the fair value of a financial liability
reported on Schedule HC — Balance Sheet, that is
accounted for under a fair value option, bank holding
companies should consider the effect of a change in their
own creditworthiness on the fair value of the liability.
The Federal Reserve has determined that bank holding
companies should exclude from Tier 1 capital the cumulative change in the fair value of financial liabilities
accounted for under a fair value option that is included in
retained earnings (Schedule HC, item 26(a)) and is
attributable to changes in the bank holding company’s
own creditworthiness. Bank holding companies should
report in this item the amount of this cumulative change,
net of applicable taxes.
If the amount of the cumulative change is a net gain,
report it as a positive value in this item. If the amount of
the cumulative change is a net loss, report it as a negative
value in this item.
Line item 8

Subtotal.

Report the sum of Schedule HC-R, items 1, 6(a) and 6(b),
less items 2, 3, 4, 5, and 7(a) and 7(b). The amount
reported in this item should be used to determine the
limitations on servicing assets and purchased credit card
relationships for Schedule HC-R, item 9(a); deferred tax
assets for Schedule HC-R, item 9(b); and creditenhancing interest-only strips and nonfinancial equity
investments for Schedule HC-R, item 10, below.
Line item 9(a) LESS: Disallowed servicing assets
and purchased credit card relationships.
Report the portion of servicing assets and purchased
credit card relationships included in Schedule HC-M,
HC-R-4

items 12(a) and 12(b), that does not qualify for inclusion
in Tier 1 capital based on the capital guidelines. Generally, servicing assets and purchased credit card relationships (PCCRs) are limited to 100 percent of Tier 1
capital. In addition, nonmortgage servicing assets and
PCCRs are subject to a separate sublimit of 25 percent
of Tier 1 capital. Bank holding companies may use the
following approach to determine the amount of disallowed servicing assets and PCCRs.
Disallowed Mortgage Servicing Assets, Nonmortgage
Servicing Assets, and PCCRs Calculation
(a) Enter the amount from Schedule HC-R,
item 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) Enter 25% of the amount in (a) above . . . . .
(c) Enter the amount of nonmortgage
servicing assets and PCCRs reported in
Schedule HC-M, item 12(b) . . . . . . . . . . . . . . . .
(d) Enter 90% of the fair value of the
nonmortgage servicing assets and PCCRs
reported in (c) above . . . . . . . . . . . . . . . . . . . . . . . .
(e) Enter the lesser of (b), (c), or (d) . . . . . . . . . . .
(f) Minimun amount of nonmortgage
servicing assets and PCCRs to be deducted
from Tier 1 capital: subtract (e) from (c);
enter 0 if the result is a negative amount. . .
(g) Enter the amount of mortgage servicing
assets reported in Schedule HC-M,
item 12(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(h) Enter 90% of the estimated fair value of
mortgage servicing assets reported in
Schedule HC-M, item 12(a)(1). . . . . . . . . . . . . .
(i) Enter the lesser of (a), (g), or (h) . . . . . . . . . . .
(j) Minimum amount of mortgage servicing
assets to be deducted from Tier 1 capital:
subtract (i) from (g); enter 0 if the result is
a negative amount . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

(k) Excess nonmortgage servicing assets,
PCCRs, and mortgage servicing assets
(i.e., the combined amount exceeding
100 percent of Tier 1 capital): sum of (e)
and (i) minus (a); enter 0 if the result is a
negative amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(l) Disallowed nonmortgage servicing assets,
PCCRs, and mortgage servicing assets:
enter the sum of (f), (j), and (k) . . . . . . . . . . . .
Bank holding companies are permitted, but not required,
to deduct disallowed servicing assets on a basis that is net
of a proportional amount of any associated deferred tax
liability recorded on the balance sheet. Any deferred tax
liability used in this manner would not be available for
the bank holding company to use in determining the
amount of disallowed deferred tax assets in Schedule
HC-R, item 9(b), below.
Line item 9(b) LESS: Disallowed deferred tax assets.
Report the portion of net deferred tax assets included
in Schedule HC-F, item 2, that does not qualify for
inclusion in Tier 1 capital based on the capital guidelines.
Generally, deferred tax assets that are dependent upon
future taxable income are limited to the lesser of: (i) the
amount of such deferred tax assets that the bank holding
company expects to realize within one year of the
calendar quarter-end date, based on its projected future
taxable income for that year or (ii) 10% of the amount of
the bank holding company’s Tier 1 capital. A bank
holding company may calculate one overall limit on
deferred tax assets that covers all tax jurisdictions in
which the bank holding company operates.
Deferred tax assets that are dependent upon future taxable income are (a) deferred tax assets arising from
deductible temporary differences that exceed the amount
of taxes previously paid that a bank holding company
could recover through loss carrybacks if the bank holding
company’s temporary differences (both deductible and taxable) fully reverse at the report date and
(b) deferred tax assets arising from operating loss and tax
credit carryforwards. Therefore, for purposes of this
item, all temporary differences should be assumed to
fully reverse at the report date.
A bank holding company may use its future taxable
income projection for its current fiscal year (adjusted
for any significant changes that have occurred or are
FR Y-9C
Schedule HC-R

March 2007

expected to occur) when determining the regulatory
capital limit for its deferred tax assets at an interim
calendarquarter-end date rather than preparing a new
projection each quarter. Projected future taxable income
should not include net operating loss carryforwards
expected to be used within one year of the quarter-end
report date or the amount of existing temporary differences expected to reverse within that year, but should
include the estimated effect of tax planning strategies that
are expected to be implemented to realize carryforwards
that will otherwise expire during that year.
Deferred tax assets which can be realized from taxes paid
in prior carryback years and from future reversals of
existing taxable temporary differences should generally
not be reported in this item.
Treatment of deferred tax assets relating to available-forsale securities: In accordance with FASB Statement
No. 115, Accounting for Certain Investments in Debt
and Equity Securities, available-for-sale securities are
reported on the balance sheet at fair value, with unrealized holding gains and losses on such securities, net of
tax effects, included in a separate component of equity
capital. These tax effects may increase or decrease the
reported amount of a bank holding company’s deferred
tax assets. The Federal Reserve excludes from regulatory
capital the amount of net unrealized holding gains and
losses on available-for-sale securities (except net
unrealized holding losses on available-for-sale equity
securities with readily determinable fair values). When
determining the regulatory capital limit for deferred tax
assets, a bank holding company may, but is not required
to, adjust the amount of its deferred tax assets for any
deferred tax assets and liabilities arising from markingto-market available-for-sale debt securities for purposes
of these reports. A bank holding company must follow a
consistent approach with respect to such adjustments.
Bank holding companies may use the following approach
to determine the amount of disallowed deferred tax assets.
Disallowed Deferred Tax Assets Calculation
(a) Enter the amount from Schedule HC-R,
item 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) Enter 10% of the amount in (a) above . . . . .
(c) Enter the amount of deferred tax assets
reported in Schedule HC-F, item 2 . . . . . . . . .
HC-R-5

Schedule HC-R

(d) Enter the amount of taxes previously paid
that the bank holding company could
recover through loss carrybacks if the bank
holding company’s temporary differences
(both deductible and taxable) fully reverse
at the report date . . . . . . . . . . . . . . . . . . . . . . . . . . .

include other similar ‘‘spread’’ assets and can be either
retained or purchased. In general, credit-enhancing
interest-only strips are limited to 25 percent of Tier 1
capital. Bank holding companies may use the following
approach to determine the amount of disallowed creditenhancing interest-only strips.

(e) Amount of deferred tax assets that is
dependent upon future taxable income:
subtract (d) from (c); enter -0- if the result
is a negative amount . . . . . . . . . . . . . . . . . . . . . . . .

Disallowed Credit-Enhancing Interest-Only Strips
Calculation

(f) Enter the portion of (e) that the bank
holding company could realize within the
next 12 months based on its projected
future taxable income. Future taxable
income should not include net operating
loss carryforwards to be used during the
next 12 months or existing temporary
differences that are expected to reverse
over the next 12 months . . . . . . . . . . . . . . . . . . .
(g) Enter the lesser of (b) and (f) . . . . . . . . . . . . . .
(h) Disallowed net deferred tax assets: subtract
(g) from (e); enter 0 if the result is a
negative amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(a) Enter the amount from Schedule HC-R,
item 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) Enter 25% of the amount in (a) above . . . . .
(c) Retained credit-enhancing interest-only
strips from Schedule HC-S, items 2(a) and
12: enter the fair value of those strips
included in Schedule HC, item 5, ‘‘Trading
assets,’’ and the amortized cost of those
strips not held for trading 1 . . . . . . . . . . . . . . . . .
(d) Purchased credit-enhancing interest-only
strips included in Schedule HC-S, item 9: 2
enter the fair value of those strips included
in Schedule HC, item 5, ‘‘Trading assets,’’
and the amortized cost of those strips not
held for trading3 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Line item 10 Other additions to (deductions from)
Tier 1 capital.

(e) Total credit-enhancing interest-only strips:
enter the sum of (c) and (d) . . . . . . . . . . . . . . . .

Report the amount of any additions to or deductions from
Tier 1 capital based on the Federal Reserve’s capital
guidelines for bank holding companies that are not
included in Schedule HC-R, items 1 through 9(b), above.

(f) Enter the lesser of (b) and (e) . . . . . . . . . . . . . .

For example, include the portion of credit-enhancing
interest-only strips included in the bank holding company’s total assets that does not qualify for inclusion in
Tier 1 capital based on the Federal Reserve’s capital
guidelines. A credit-enhancing interest-only strip is
defined in the capital guidelines as ‘‘an on-balance sheet
asset that, in form or in substance: (i) represents the
contractual right to receive some or all of the interest due
on transferred assets; and (ii) exposes the bank holding
company to credit risk directly or indirectly associated
with the transferred assets that exceeds a pro rata share of
the bank holding company’s claim on the assets, whether
through subordination provisions or other credit enhancement techniques.’’ Credit-enhancing interest-only strips
HC-R-6

(g) Disallowed credit-enhancing interest-only
strips: subtract (f) from (e); enter 0 if the
result is a negative amount . . . . . . . . . . . . . . . . .
If the bank holding company has disallowed creditenhancing interest-only strips, i.e., line (g) in the preceding calculation is a positive amount, include this amount
as a deduction from Tier 1 capital in this item. Bank
holding companies are permitted, but not required, to
1. While credit-enhancing interest-only strips not held for trading are
reported at fair value in Schedule HC-S, the amortized cost of these strips
should be used in this calculation.
2. Also include any purchased interest-only strips that act as credit
enhancements for assets that have not been securitized because these strips
are not reported in Schedule HC-S, item 9.
3. See footnote 1 above.

Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

deduct disallowed credit-enhancing interest-only strips,
i.e., the amount from line (g) above, on a basis that is net
of a proportional amount of any associated deferred tax
liability recorded on the balance sheet. Any deferred tax
liability used in this manner would not be available for
the bank holding company to use in determining the
amount of disallowed deferred tax assets in Schedule HC-R, item 9(b), above.
If a bank holding company has nonfinancial equity
investments that are subject to Tier 1 capital deductions,
these deductions should be reported in this item. Under the
Federal Reserve’s capital rules on nonfinancial equity
investments, which were published on January 25, 2002, a
nonfinancial equity investment is any equity investment that
a bank holding company holds in a nonfinancial company: 4
• Under the merchant banking authority of section 4(k)(4)(H) of the Bank Holding Company Act and
subpart J of Federal Reserve Regulation Y,
• Under the authority to acquire up to 5 percent of the
voting shares of any company under section 4(c)(6) or
(7) of the Bank Holding Company Act,
• through a small business investment company (SBIC)
under section 302(b) of the Small Business Investment
Act of 1958 (15 U.S.C. 682(b)),5
• under the portfolio investment provisions of Federal
Reserve Regulation K (12 CFR 211.8(c)(3)), or
• under section 24 of the Federal Deposit Insurance Act
(12 U.S.C. 1831a). However, investments made by
state banks under section 24(f) of the Federal Deposit
Insurance Act are exempt from these capital rules and
are not subject to any Tier 1 capital deductions.
4. Generally, this capital calculation does not apply to investments in
nonconvertible senior or subordinated debt, equity investments in a
company that engages only in activities that are permissible for a bank
holding company to conduct, equity investments in community development corporations under 12 U.S.C. 24(Eleventh) that promote the public
welfare, equity securities acquired in satisfaction of a debt previously
contracted that are held and divested in accordance with applicable law,
unexercised warrants acquired by a bank holding company as additional
consideration for making a loan that are not held under the legal authorities
covered by this rule, equity investments made by an insurance underwriting affiliate, equity investments held by a securities broker or dealer as part
of an underwriting/market making/dealing activity, or equity instruments
held as a hedge of an equity derivative transaction.
5. An equity investment made under section 302(b) of the Small Business Investment Act of 1958 in an SBIC that is not consolidated with the
bank holding company is treated as a nonfinancial equity investment.
FR Y-9C
Schedule HC-R

March 2007

The capital guidelines impose Tier 1 capital deductions
on nonfinancial equity investments that increase as the
aggregate amount of nonfinancial equity investments
held by a bank holding company increases. These marginal capital charges are based on the adjusted carrying
value of the investments as a percent of the bank holding
company’s Tier 1 capital as calculated in item 8 of
Schedule HC-R. The total adjusted carrying value of a
nonfinancial equity investment that is subject to the
Tier 1 deduction is excluded from risk-weighted assets
for purposes of computing the bank holding company’s
risk-based capital ratio and from average assets for
purposes of computing the Tier 1 leverage ratio. The
adjusted carrying value is the value at which the investment is recorded on the balance sheet of the banking
organization, reduced by (i) any net unrealized gains that
are included in the carrying value but that have not been
included in Tier 1 capital and (ii) any associated deferred
tax liabilities.
The following table details the marginal capital charges
for nonfinancial equity investments:
Deduction for Nonfinancial Equity Investments
Aggregate adjusted carrying value
of all nonfinancial equity investments
held directly or indirectly
by the bank holding company
(as a percentage of Tier 1 capital
as reported in Schedule HC-R, item 8)

Deduction from
Tier 1 capital as a
percentage of the
adjusted carrying
value of the
investment

Less than 15% . . . . . . . . . . . . . . . . . . . . . . .

8%

Greater than or equal to 15%
but less than 25% . . . . . . . . . . . . . . . . .

12%

Greater than or equal to 25% . . . . . . . .

25%

NOTE: ‘‘High concentrations’’ (generally more than
50% of Tier 1 capital) of nonfinancial equity investments
will be monitored and may be subject to heightened
supervision and a higher minimum capital requirement.
These deductions are applied on a marginal basis to the
portions of the adjusted carrying value of nonfinancial
equity investments that fall within the specified ranges
of Tier 1 capital. For example, if the adjusted carrying
value of all nonfinancial equity investments held by a
bank holding company equals 20 percent of the bank
holding company’s Tier 1 capital, then the amount of
thededuction would be 8 percent of the adjusted carrying
HC-R-7

Schedule HC-R

value of all investments up to 15 percent of Tier 1 capital,
and 12 percent of the adjusted carrying value of all
investments in excess of 15 percent of Tier 1 capital.

banking and finance subsidiaries that are not consolidated
for accounting or regulatory reporting purposes. For
further information, refer to the capital guidelines.

Nonfinancial equity investments that are covered by
the agencies’ capital rules, but which are not subject to
any Tier 1 capital deductions, generally include the
following:

If the amount to be reported is a net deduction, enclose
the amount in parentheses.

SBIC investments. Nonfinancial equity investments held
by a bank holding company through one or more SBICs
under section 302(b) of the Small Business Investment
Act are not subject to the marginal capital charges to the
extent that the aggregate adjusted carrying value of all
such investments does not exceed 15% of Tier 1 capital.
The adjusted carrying value of all SBIC investments,
however, must be included in the total amount of nonfinancial equity investments held by the bank holding
company when determining the total amount of these
investments in relation to Tier 1 capital for purposes of
computing the bank holding company’s marginal capital
charge.
Nonfinancial equity investments that are held through or
in SBICs and are not required to be deducted from Tier 1
capital continue to be included in average total assets
for the leverage ratio calculation and in risk-weighted
assets (at a 100% risk weight) for the risk-based capital
calculations.
Grandfathered nonfinancial equity investments. Nonfinancial equity investments made by a bank holding
company prior to March 13, 2000, or that were made by a
bank holding company after that date pursuant to a binding written commitment entered into prior to March 13,
2000, are not subject to the marginal capital charge. The
adjusted carrying value of these grandfathered assets,
however, must be included in the total amount of nonfinancial equity investments held by the bank holding
company when determining the total amount of these
investments in relation to Tier 1 capital for purposes of
computing the bank holding company’s marginal capital
charge.
Grandfathered nonfinancial equity investments continue
to be included in average total assets for the leverage
ratio calculation and in risk-weighted assets (at a 100%
risk weight) for the risk-based capital calculations.
In addition, for purposes of the item, bank holding
companies are to report as a deduction from Tier 1 capital
50 percent of the aggregate amount of its investments in
HC-R-8

NOTE: Investments in ‘‘financial subsidiaries,’’ as defined
by the Gramm–Leach–Bliley Act, that are deducted from
banks’ regulatory capital on the Reports of Condition and
Income (FFIEC 031 and 041 reports) should not be
deducted by bank holding companies when determining
the consolidated regulatory capital for bank holding
companies.
Line item 11

Tier 1 capital.

Report the sum of Schedule HC-R, items 8 and 10, less
items 9(a) and 9(b). The amount reported in this item is
the numerator of the bank holding company’s Tier 1
risk-based capital ratio and its Tier 1 leverage ratio.

Tier 2 Capital
Line item 12 Qualifying subordinated debt and
redeemable preferred stock.
Report the portion of the bank holding company’s qualifying limited-life capital instruments that is includible
in Tier 2 capital based on the capital guidelines. This
amount is the sum of:
(1) the portion of qualifying subordinated debt and
intermediate-term preferred stock includible in Tier 2
capital, and
(2) the portion of qualifying other limited-life capital
instruments includible in Tier 2 capital.
The portion of limited-life capital instruments that is
includible in Tier 2 capital is the amount that remains
after discounting those instruments, if any, with five
years or less until maturity and then applying any applicable percentage of a Tier 1 capital limit. For limitedlife capital instruments with serial maturities or with
sinking fund provisions, the amount associated with
each maturity date is to be treated as a separate issue
and discounted on an individual basis. If the holder of
the reporting bank holding company’s subordinated
debt or intermediate-term or long-term preferred stock
has the right to require the bank holding company to
redeem, repay, or repurchase the instrument prior to the
original stated maturity, then maturity would be defined
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

as the earliest possible date on which the holder can
put the instrument back to the issuing bank holding
company.
Qualifying term subordinated debt and intermediate-term
preferred stock (including any related surplus) must have
an original weighted average maturity of at least five
years. Intermediate-term preferred stock includes those
issues of preferred stock with an original maturity of less
than 20 years. Mandatory convertible debt, i.e., equity

contract notes, is not considered a limited-life capital
instrument for risk-based capital purposes and should be
excluded from this item.
The portion of qualifying term subordinated debt and
intermediate-term preferred stock that remains after discounting and is includible in Tier 2 capital is limited to
50 percent of Tier 1 capital. This portion is calculated as
follows:

(A1) Amount of subordinated debt and intermediate-term preferred stock
with a remaining maturity of more than five years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

× 100% =

(A2) Amount of subordinated debt and intermediate-term preferred stock
with a remaining maturity of more than four years, but less than five years . . . . . . . . . . .

× 80% =

(A3) Amount of subordinated debt and intermediate-term preferred stock
with a remaining maturity of more than three years, but less than four years . . . . . . . . .

× 60% =

(A4) Amount of subordinated debt and intermediate-term preferred stock
with a remaining maturity of more than two years, but less than three years . . . . . . . . . .

× 40% =

(A5) Amount of subordinated debt and intermediate-term preferred stock
with a remaining maturity of more than one year, but less than two years . . . . . . . . . . . .

× 20% =

(A6) Amount of subordinated debt and intermediate-term preferred stock
with a remaining maturity of one year or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

×

0% =

(A7) Qualifying subordinated debt and intermediate-term preferred stock
(sum of discounted amounts of lines (A1) through (A6)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(A8) Tier 1 capital (from Schedule HC-R, item 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(A9) Multiplied by 50 percent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

× 50% =

(A10) Limit for qualifying subordinated debt and intermediate-term preferred stock
(line (A8) multiplied by 50 percent) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(A11) Portion of qualifying subordinated debt and intermediate-term preferred stock
includible in Tier 2 capital (lesser of lines (A7) and (A10)) . . . . . . . . . . . . . . . . . . . . . . . . . . .

FR Y-9C
Schedule HC-R

March 2007

HC-R-9

Schedule HC-R

The entire amount of qualifying other limited-life capital
instruments, such as long-term preferred stock with an
original maturity of 20 years or more, that remains after

discounting is includible in Tier 2 capital. This portion is
calculated as follows:

(B1) Amount of other limited-life capital instruments with a remaining
maturity of more than five years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

× 100% =

(B2) Amount of other limited-life capital instruments with a remaining
maturity of more than four years, but less than five years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

× 80% =

(B3) Amount of other limited-life capital instruments with a remaining
maturity of more than three years, but less than four years . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

× 60% =

(B4) Amount of other limited-life capital instruments with a remaining
maturity of more than two year, but less than three years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

× 40% =

(B5) Amount of other limited-life capital instruments with a remaining
maturity of more than one year, but less than two years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

× 20% =

(B6) Amount of other limited-life capital instruments with a remaining
maturity of one year or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

×

0% =

(B7) Portion of qualifying other limited-life capital instruments
(sum of discounted amounts of lines (B1) through (B6)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Report the sum of the amounts from lines (A11) and (B7)
above in Schedule HC-R, item 12.
Line item 13 Cumulative perpetual preferred stock
includible in Tier 2 capital.
Report the amount of outstanding cumulative perpetual
preferred stock, including any amounts received in excess
of its par or stated value, that is included in Schedule HC,
item 23. Include cumulative perpetual preferred stock
that exceed the limits for Tier I capital, and, therefore,
was excluded from Tier 1 capital. Also include perpetual
preferred stock issues that were excluded from Tier 1
capital such as noncumulative perpetual preferred where
the dividend is reset periodically based, in whole or in
part, upon the bank holding company’s current credit
standing (including, but not limited to, auction rate,
money market, and remarketable preferred stock).
Line item 14 Allowance for loan and lease losses
includible in Tier 2 capital.
Report the portion of the bank holding company’s allowance for loan and lease losses that is includible in Tier 2
capital. (None of the bank holding company’s allocated
transfer risk reserve, if any, is includible in Tier 2
capital.) The amount reported in this item cannot exceed
1.25 percent of the bank holding company’s gross riskHC-R-10

weighted assets. For risk-based capital purposes, the
allowance for loan and lease losses is the sum of Schedule HC, item 4(c), ‘‘Allowance for loan and lease losses,’’
less Schedule HI-B, part II, memorandum item 1,
‘‘Allocated transfer risk reserve included in Schedule
HI-B, part II item 7,’’ plus Schedule HC-G, item 3,
‘‘Allowance for credit losses on off-balance sheet credit
exposures.’’
Gross risk-weighted assets is reported in Schedule HC-R,
item 59. If the bank holding company has any lowlevelexposure transactions or residual interests and
chooses to use the ‘‘direct reduction method’’ for reporting these transactions in Schedule HC-R, refer to the
discussion of this subject in the instructions for Schedule HC-R, item 50, ‘‘Recourse and direct credit substitutes (other than financial standby letters of credit)
subject to the low level exposure rule and residual
interests subject to a dollar-for-dollar capital requirement,’’ for guidance on determining the limit on the
allowance for loan and lease losses for Tier 2 capital
purposes.
Line item 15 Unrealized gains on available-for-sale
equity securities includible in Tier 2 capital.
Report the pretax net unrealized holding gain (i.e., the
excess of fair value as reported in Schedule HC-B,
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

item 7, column D, over historical cost as reported in
Schedule HC-B, item 7, column C), if any, on availablefor-sale equity securities that is includible in Tier 2
capital subject to the limits specified by the capital
guidelines. The amount reported in this item cannot
exceed 45 percent of the bank holding company’s pretax
net unrealized holding gain on available-for-sale equity
securities with readily determinable fair values.
Line item 16

Other Tier 2 capital components.

Report the amount of any items that qualify for inclusion
in Tier 2 capital based on the capital guidelines that are
not included in Schedule HC-R, items 12 through 15,
above. Include mandatory convertible debt, i.e., equity
contract notes, which is a form of subordinated debt that
obligates the holder to take the common or perpetual
preferred stock of the issuer in lieu of cash for repayment
of principal. Also include amounts of trust preferred
securities issued by consolidated special purpose entities
(or notes payable to unconsolidated special purpose
entities that issue trust preferred securities, net of the
bank holding company’s investment in the entity) that are
in excess of the limits for cumulative preferred stock that
can be included in Tier 1 capital. For purposes of this
item, bank holding companies are to report as a deduction
from Tier 2 capital 50 percent of the aggregate amount of
its investments in banking and finance subsidiaries that
are not consolidated for accounting or regulatory reporting purposes. For further information, refer to the capital
guidelines.
If the amount to be reported is a net deduction, enclose
the amount in parentheses.
Line item 17

Tier 2 capital.

Report the sum of Schedule HC-R, items 12 through 16.
Line item 18

Allowable Tier 2 capital.

Report the amount of the bank holding company’s allowable Tier 2 capital. The maximum amount of Tier 2
capital that is allowable in a bank holding company’s
qualifying total capital is 100 percent of Tier 1 capital.
The amount reported in this item must be the lesser of
Schedule HC-R, item 11, ‘‘Tier 1 capital,’’ and item 17,
‘‘Tier 2 capital.’’
FR Y-9C
Schedule HC-R

March 2007

Line item 19 Tier 3 capital allocated for market
risk.
Report the amount of the bank holding company’s Tier 3
capital allocated for market risk. This item is only
applicable to bank holding companies that are subject to
the market risk capital guidelines. The amount reported
in this item may only be used to satisfy the bank holding
company’s market risk capital requirement and may not
be used to support credit risk. The sum of the amount
reported in this item and the amount reported in Schedule HC-R, item 18, ‘‘Allowable Tier 2 capital,’’ must be
less than or equal to the amount reported in Schedule HC-R, item 11, ‘‘Tier 1 capital.’’ In addition, Tier 3
capital allocated for market risk plus Tier 2 capital
allocated for market risk are limited to 71.4 percent of a
bank holding company’s measure for market risk.
Line item 20 LESS: Deductions for total
risk-based capital.
Report the amount of any intentional reciprocal crossholdings of banking organizations’ capital instruments,
and any other deductions for total risk-based capital
as determined by the Federal Reserve or the capital
guidelines.
NOTE: Investments in ‘‘financial subsidiaries,’’ as defined
by the Gramm–Leach–Bliley Act, that are deducted from
banks’ regulatory capital on the Reports of Condition and
Income (FFIEC 031 and 041 reports) should not be
deducted by bank holding companies when determining
the consolidated regulatory capital for bank holding
companies.
Line item 21 Total risk-based capital.
Report the sum of Schedule HC-R, items 11, 18, and 19,
less item 20. The amount reported in this item is the
numerator of the bank holding company’s total riskbased capital ratio.

Total assets for leverage ratio
Line item 22 Average total assets.
Report the bank holding company’s average total assets
as reported in Schedule HC-K, item 5.
Line item 23 LESS: Disallowed goodwill and other
disallowed intangible assets.
Report the amount of any disallowed goodwill and other
disallowed intangible assets from Schedule HC-R, item 7,
above.
HC-R-11

Schedule HC-R

Line item 24 LESS: Disallowed servicing assets
and purchased credit card relationships.

Line item 33

Total risk-based capital ratio.

Report the amount of any disallowed servicing assets and
purchased credit card relationships from Schedule HC-R,
item 9(a), above.

Report the bank holding company’s total risk-based
capital ratio as a percentage, rounded to two decimal
places. The ratio is determined by dividing Schedule HC-R, item 21, by Schedule HC-R, item 62.

Line item 25

Risk-Weighted Assets

LESS: Disallowed deferred tax assets.

Report the amount of any disallowed deferred tax assets
from Schedule HC-R, item 9(b), above.
Line item 26 LESS: Other deductions from assets
for leverage capital purposes.
Report the amount of any other assets that are deducted
in determining Tier 1 capital in accordance with the
capital standards. Include the amount of any disallowed
credit-enhancing interest-only strips from Schedule HC-R, item 10, above. Also include the adjusted
carrying value of any nonfinancial equity investments for
which a Tier 1 capital deduction is included on Schedule HC-R, item 10 above.
In addition, for purposes of the item, bank holding
companies are to report as a deduction from Tier 1 capital
50 percent of the aggregate amount of its investments in
banking and finance subsidiaries that are not consolidated
for accounting or regulatory reporting purposes. For
further information, refer to the capital guidelines.
Line item 27 Average total assets for leverage
capital purposes.
Report Schedule HC-R, item 22, less items 23 through 26.
Line items 28–30

Not applicable.

Capital Ratios
Line item 31

Tier 1 leverage ratio.

Report the bank holding company’s Tier 1 leverage ratio
as a percentage, rounded to two decimal places. The ratio
is determined by dividing Schedule HC-R, item 11, by
Schedule HC-R, item 27.
Line item 32

Tier 1 risk-based capital ratio.

Report the bank holding company’s Tier 1 risk-based
capital ratio as a percentage, rounded to two decimal
places. The ratio is determined by dividing Schedule HC-R, item 11, by Schedule HC-R, item 62.
HC-R-12

The instructions for Schedule HC-R, items 34 through 54
provide general directions for the allocation of bank
holding company balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items to
the risk weight categories in columns C through F and,
for items 34 through 43 only, to the items not subject to
risk-weighting in column B. These instructions should
provide sufficient guidance for most bank holding companies for risk-weighting their balance sheet assets and
credit equivalent amounts. However, these instructions
may not identify every asset and other bank holding
company transactions that qualify for a risk weight lower
than the maximum risk weight. For further information
on allocating assets and off-balance sheet transactions to
the proper risk weight category, bank holding companies
should consult the risk-based capital guidelines.
In order to save time and reduce burden, a bank holding
company may decide not to determine every asset or
off-balance sheet transaction that is accorded a risk
weight lower than 100%(50% for derivative contracts).
Accordingly, at its option, a bank holding company
may risk-weight any asset or credit equivalent amount
at a higher risk weight than the risk weight that
would otherwise apply to the asset or credit equivalent amount, e.g., an asset that qualifies for a 20% risk
weight may be assigned a 100% risk weight.
For items 34 through 43 of Schedule HC-R, column B
should include the amount of the reporting bank holding
company’s on-balance sheet assets that are deducted or
excluded (not risk weighted) in the determination of
risk-weighted assets. Column B should include assets
that are deducted from capital such as goodwill, disallowed deferred tax assets, disallowed servicing assets
and PCCRs, disallowed credit-enhancing interest-only
strips, intentional reciprocal cross-holdings of banking
organization’s capital instruments, the adjusted carrying
value of nonfinancial equity investments subject to a
Tier 1 capital deduction, and any other assets that must be
deducted in accordance with the requirements of the
Federal Reserve’s capital guidelines. Column B should
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

also include items that are excluded from the calculation
of risk-weighted assets such as the allowance for loan
and lease losses, allocated transfer risk reserves, investments in unconsolidated special purpose entities that
issue trust preferred securities, and certain on-balance
sheet asset amounts associated with derivative contracts
that are included in the calculation of their credit equivalent amounts. For items 34 through 43 of Schedule HC-R,
the sum of columns B through F must equal the balance
sheet asset amount reported in column A.
For items 44 through 54 of Schedule HC-R, column B
should include the credit equivalent amounts of the
reporting bank holding company’s derivative contracts
and off-balance sheet items that are covered by the
risk-based capital standards. For off-balance sheet items,
the credit equivalent amount to be reported in column B
is calculated by multiplying the face or notional amount
in column A by the appropriate credit conversion factor.
The credit equivalent amounts in column B are to be risk
weighted in columns C through F. For items 44 through
54 of Schedule HC-R, the sum of columns C through F
must equal the credit equivalent amount reported in
column B.
The following are some of the most common exceptions to the risk weight category assignments that are
described below in the instructions for items 34 through
54. These exceptions enable a bank holding company, at
its option, to assign assets, derivatives, and off-balance
sheet items to lower risk weight categories than under the
instructions for each of these items.
Column C

0% column:

(1) All claims (defined broadly to include securities,
loans, and leases) that are direct claims on, or the
portion of claims that are directly and unconditionally
guaranteed by, the U.S. Government, other OECD
central governments, or U.S. Government agencies.
(2) For national and state member banks, claims that are
collateralized by cash on deposit in the bank or by
securities issued or guaranteed by the U.S. Government, other OECD central governments, or U.S.
Government agencies (refer to the risk-based capital
guidelines for the collateral criteria).
(3) For state nonmember banks, claims on, or guaranteed
by, qualifying securities firms incorporated in the
U.S. or in other OECD countries that are collateralized by cash on deposit in the bank or by securities
FR Y-9C
Schedule HC-R

March 2007

issued or guaranteed by the U.S. Government, other
OECD central governments, or U.S. Government
agencies (refer to the risk-based capital guidelines for
the collateral and qualifying securities firm criteria).
Column D

20% column:

(1) The portion of claims that are conditionally guaranteed by the U.S. Government, other OECD central
governments, or U.S. Government agencies.
(2) The portion of claims that are collateralized by cash
on deposit in the bank holding company or by
securities issued or guaranteed by the U.S. Government, other OECD central governments, or U.S.
Government agencies that are not included in the
zero percent column.
(3) The portion of local currency securities that are
conditionally guaranteed by non-OECD central governments (to the extent that the bank holding company has liabilities booked in that currency).
(4) General obligation claims on, or portions of claims
guaranteed by the full faith and credit of, states or
other political subdivisions of the U.S.
(5) Claims on, and the portions of claims guaranteed
by, multilateral lending institutions or regional development banks in which the U.S. Government is a
shareholder or contributing member.
(6) Claims on, or guaranteed by, qualifying securities
firms incorporated in the U.S. or in other OECD
countries provided the firm meets certain rating
criteria, the claim is guaranteed by the firm’s parent
company and that company meets the rating criteria,
or the claim is a repurchase/resale agreement or a
securities lending/borrowing transaction that is collateralized and meets certain criteria (refer to the
risk-based capital guidelines for the rating, collateral,
and qualifying securities firm criteria).
The risk-based capital guidelines include a ratings-based
approach that sets the risk-based capital requirements for
asset-backed and mortgage-backed securities and other
positions in securitization transactions (except creditenhancing interest-only strips) according to their relative
risk using credit ratings from nationally recognized statistical rating organizations, i.e., rating agencies, to measure the level of risk. (The ratings-based approach does
not apply to corporate bonds, municipal bonds, or other
debt securities that have been rated by a rating agency.)
HC-R-13

Schedule HC-R

In general, under the ratings-based approach, the riskbased capital requirement for a position in a securitization is computed by multiplying the face amount of the
position by the risk weight appropriate for the external
credit rating of the position. The risk weights for longterm and short-term external ratings are as follows:
Long-Term Rating Category

Examples

Risk Weight

Highest or second highest
investment grade

AAA or AA

20%

Third highest investment
grade

A

50%

Lowest investment grade

BBB

100%

BB

200%

B or unrated

Not eligible
for ratingsbased
approach

Short-Term Rating Category

Examples

Risk Weight

Highest investment grade

A-1, P-1

20%

Second highest investment
grade

A-2, P-2

50%

Lowest investment grade

A-3, P-3

100%

Below investment grade,
or unrated

B or unrated

Not eligible
for ratingsbased
approach

One category below
investment grade
More than one category
below investment grade,
or unrated

Under the ratings-based approach, a position in a securitization that is a ‘‘traded position,’’ as defined in the
risk-based capital guidelines, must receive at least one
external rating. If a traded position receives more than
one external ratings, the lowest rating will apply. For a
position in a securitization that is not a traded position to
be eligible for the ratings-based approach, the position
must receive at least two publicly available external
ratings that are based on the same criteria used to rate
traded positions. The lowest external rating will determine the risk weight category for the position.
In addition, a position (other than a residual interest) in a
securitization or structured finance program that is not
HC-R-14

externally rated may use the credit rating for the position
under one of three alternative standards to determine the
risk weight for the position. These alternatives are internal risk ratings for direct credit substitutes (but not
purchased credit-enhancing interest-only strips) supporting asset-backed commercial paper programs and program ratings and credit assessment computer programs
for credit enhancements (but not residual interests) supporting structured finance programs. Under these alternatives, a position receiving an investment grade rating is
assigned a 100% risk weight and a position receiving a
rating one category below investment grade is assigned a
200% risk weight.
The extent to which qualifying securities are recognized
as collateral for risk-based capital purposes is determined by their current market value. If a claim is partially
secured, that is, the market value of the pledged securities
is less than the face amount of an asset or
off-balance sheet item, only the portion that is covered by
the market value of the collateral is to be reported in this
item. The face amount of a claim secured by two types of
qualifying collateral is to be reported in the items appropriate to the collateral types, apportioned according to the
market value of each of the two types of collateral.
If a claim is partially guaranteed or covered by two types
of guarantees, then the preceding discussion on the
treatment of claims that are collateralized is applicable. A
guarantee is conditional if its validity is dependent upon
some affirmative action by the bank holding company or
a third party (e.g., servicing requirements).
NOTE: Claims collateralized by deposits in other depository institutions (e.g., certificates of deposit issued by
other banks) do not qualify for a 20 percent risk weight.
Such collateralized claims are to be reported in the
50 percent or 100 percent risk weight category in columns E or F of Schedule HC-R, as appropriate, according
to the obligor or, if relevant, the guarantor or the nature of
any other collateral.
These instructions contain several references to the
OECD, i.e., the Organization for Economic Cooperation
and Development. The following countries are members
of the OECD: Australia, Austria, Belgium, Canada, the
Czech Republic, Denmark, Finland, France, Germany,
Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea,
Luxembourg, Mexico, the Netherlands, New Zealand,
Norway, Poland, Portugal, Slovak Republic, Spain,
Sweden, Switzerland, Turkey, the United Kingdom, and
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

the United States. In addition, Saudi Arabia should be
treated as an OECD country. All other countries should
be treated as non-OECD countries.

Balance Sheet Asset Categories
Assets Sold with Recourse and Purchased
Credit-Enhancing Interest-Only Strips

Bank holding companies that are subject to
the market risk capital guidelines

When an on-balance sheet asset that is a position in an
asset securitization qualifies for the ratings-based
approach, the asset should be reported in the appropriate
asset category in Schedule HC-R (items 34 to 42) and
risk-weighted 20%, 50%, 100%, or 200% according to its
rating. (See the paragraph below for further information
on assets subject to a 200% risk weight.)

The risk-based capital standards require all bank holding
companies with significant market risk to measure their
market risk exposure and hold sufficient capital to mitigate this exposure. In general, a bank holding company is
subject to the market risk capital guidelines if its consolidated trading activity, defined as the sum of trading assets
and liabilities as reported in its FR Y-9C for the previous
quarter, equals: (1) 10 percent or more of the bank
holding company’s total assets as reported in its FR Y-9C
for the previous quarter, or (2) $1 billion or more.
However, the Federal Reserve may exempt or include a
bank holding company if necessary or appropriate for
safe and sound banking practices.
A bank holding company that is subject to the market risk
capital guidelines must hold capital to support its exposure to general market risk arising from fluctuations in
interest rates, equity prices, foreign exchange rates, and
commodity prices and its exposure to specific risk associated with certain debt and equity positions. Covered
positions include all positions in a bank holding company’s trading account and foreign exchange and commodity positions, whether or not in the trading account.
Covered positions generally should not be risk-weighted
as part of the bank holding company’s gross riskweighted assets. However, foreign exchange positions
that are outside of the trading account and all over-thecounter (OTC) derivatives continue to have a counterparty credit risk capital charge. Those positions are
included in both gross risk-weighted assets for credit risk
and the bank holding company’s covered positions for
market risk.
For a bank holding company that is subject to the market
risk capital guidelines, positions in the trading account
arising from asset securitizations, including recourse
obligations, residual interests, and direct credit substitutes, should be treated for risk-based capital purposes in
accordance with those guidelines. However, the bank
holding company remains subject to the concentration
limit for credit-enhancing interest-only strips (see the
instructions for Schedule HC-R, item 10, ‘‘Other additions to (deductions from) Tier 1 capital’’).
FR Y-9C
Schedule HC-R

March 2007

Otherwise, in an asset sale with recourse in which a bank
holding company has retained on-balance sheet assets
that act as credit enhancements (including retained creditenhancing interest-only strips) that do not qualify for the
ratings-based approach, these assets should be reported
in column B, ‘‘Items Not Subject to Risk-Weighting,’’ of
the appropriate Schedule HC-R asset category (items 34
to 42). Similarly, purchased credit-enhancing interestonly strips should be reported in column B. Depending
on the nature of the individual recourse transactions, the
risk-weighting of these transactions will take place in
Schedule HC-R, item 49, ‘‘Retained recourse on small
business obligations sold with recourse,’’ item 50, ‘‘Recourse and direct credit substitutes (other than financial
standby letters of credit) subject to the low level exposure
rule and residual interests subject to a dollar-for-dollar
capital requirement,’’ or item 51, ‘‘All other financial
assets sold with recourse.’’ Purchased credit-enhancing
interest-only strips are to be risk-weighted in Schedule HC-R, item 50. However, exclude disallowed creditenhancing interest-only strips that have been deducted
from Tier 1 capital and assets from Schedule HC-R,
items 49, 50, and 51.

Assets Subject to a 200% Risk Weight
Asset-backed and mortgage-backed securities and other
on-balance sheet positions in asset securitizations that are
rated one category below investment grade (e.g., BB) by
a rating agency are subject to a 200% risk weight.
Because Schedule HC-R does not have a column for the
200% risk weight, assets in this risk weight category
should be reported in the following manner in Schedule HC-R:
• If a 200% risk-weighted asset is reported on the
balance sheet (Schedule HC) at amortized cost, e.g., in
‘‘Held-to-maturity securities,’’ report (1) the asset’s
HC-R-15

Schedule HC-R

amortized cost multiplied by 2 in column F—100%
risk weight, and (2) the asset’s amortized cost as a
negative number in column B.
• If a 200% risk-weighted asset is reported on the
balance sheet (Schedule HC) like an ‘‘Available-forsale debt security,’’ i.e., at fair value with unrealized
gains (losses) reported in ‘‘Other comprehensive
income,’’ report (1) the difference between the asset’s
fair value and amortized cost in column B as a positive
number if fair value exceeds cost or as a negative
number if cost exceeds fair value, (2) the asset’s
amortized cost multiplied by 2 in column F—100%
risk weight, and (3) the asset’s amortized cost as a
negative number in column B.
• If a 200% risk-weighted asset is reported on the
balance sheet (Schedule HC) like a ‘‘Trading asset,’’
i.e., at fair value with unrealized gains (losses) included
in current earnings, report (1) the asset’s fair value
multiplied by 2 in column F—100% risk weight, and
(2) the asset’s fair value as a negative number in
column B.

Treatment of Embedded Derivatives
If a bank holding company has a hybrid contract containing an embedded derivative that must be separated from
the host contract and accounted for as a derivative instrument under FASB Statement No. 133, then the host
contract and embedded derivative should be treated separately for risk-based capital purposes. When the fair value
of the embedded derivative has been reported as part of the
bank holding company’s assets on Sched ule HC—
Balance Sheet, that fair value (whether positive or negative) should be reported (as a positive or negative number)
in column B of the corresponding asset cate gory item in
Schedule HC-R (items 34 to 42). The host contract, if an
asset, should be risk weighted according to the obligor or,
if relevant, the guarantor or the nature of the collateral.

Treatment of Asset-Backed Commercial
Paper Conduits
If a bank holding company that sponsors an asset-backed
commercial paper (ABCP) program is required to consolidate the ABCP conduit in accordance with FASB
Interpretation No. 46 (Revised), Consolidation of Variable Interest Entities, the sponsoring bank holding company is permitted to exclude the consolidated ABCP
HC-R-16

program assets from its risk-weighted asset base when it
calculates its risk-based capital ratios. In this situation,
the sponsoring bank holding company should include the
consolidated assets in the appropriate balance sheet asset
categories when completing items 34 through 43, column
A, in Schedule HC-R. The amounts of these consolidated
assets should also be reported in items 34 through 43,
column B, ‘‘Items not Subject to Risk-Weighting,’’ unless
the bank holding company has chosen to consolidate the
ABCP program assets onto its balance sheet for riskbased capital purposes, as permitted under the Federal
Reserve’s risk-based capital standards, and risk weights
them accordingly. However, unless this consolidation
option has been chosen, a sponsoring bank holding
company must continue to hold risk-based capital against
all exposures arising in connection with its ABCP program, whether or not the program is consolidated for
accounting purposes, including direct credit substitutes,
recourse obligations, residual interests, and loans. These
exposures should be reported in the appropriate items of
Schedule HC-R. In addition, any minority interests in
consolidated ABCP programs are not eligible for inclusion in Tier 1 capital (or total risk-based capital) and
should not be included in Schedule HC-R, item 6(a),
‘‘Qualifying minority interests in consolidated subsidiaries and similar items,’’ if the bank holding company
excludes the consolidated ABCP program assets from
risk-weighted assets as permitted by the Federal Reserve’s risk-based capital standards.

Allocated Transfer Risk Reserves (ATRRs)
If the reporting bank holding company is required to
establish and maintain an ATRR as specified in Section 905(a) of the International Lending Supervision Act
of 1983, in the Federal Reserve’s regulation implementing the Act (Subpart D of Federal Reserve Regulation K),
and in any guidelines, letters, or instructions issued by
the Federal Reserve, the ATRR should be reported in
Schedule HC-R, item 61. The ATRR is not eligible for
inclusion in either Tier 1 or Tier 2 capital.
Any ATRR related to loans and leases held for investment is included on the balance sheet in Schedule HC,
item 4(c), ‘‘Allowance for loan and lease losses,’’ and
separately disclosed in Sechedule HI-B, part II, memorandum item 1. However, if the bank holding company
must maintain an ATRR for any asset other than a loan or
lease held for investment, the balance sheet category for
that asset should be reported net of the ATRR on
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

Schedule HC. In this situation, the ATRR should be
reported as a negative number (i.e., in parentheses) in
column B, ‘‘Items Not Subject to Risk-Weighting,’’ of
the corresponding asset category in Schedule HC-R,
items 34 through 38, 41, and 42. The amount to be
risk-weighted for this asset in column C, D, E, or F, as
appropriate, would be its net carrying value plus the
ATRR. For example, a bank holding company has a
held-to-maturity security issued by a foreign commercial
company against which it has established an ATRR of
$20. The security, net of the ATRR, is included in
Schedule HC, item 2(a), ‘‘Held-to-maturity securities,’’
at $80. The security should be included in Schedule
HC-R, item 35, column A, at $80. The bank holding
company should include $(20) in Schedule HC-R, item
35, column B, and $100 in item 35, column F.
Line item 34 Cash and balances due from
depository institutions.
Report in column A the amount of cash and balances due
from depository institutions reported in Schedule HC,
sum of items 1(a) and 1(b).
In column C—0% risk weight, include the amount of
currency and coin plus any balances due from Federal
Reserve Banks reported in Schedule HC, item 1(a) and
any balances due from central banks in other OECD
countries reported in Schedule HC, items 1(a) and 1(b).
In column F—100% risk weight, include balances due
from non-OECD depository institutions with remaining
maturities of over one year, all non-local currency claims
on non-OECD central banks, and local currency claims
on non-OECD central banks that exceed the local currency liability held by the bank holding company.
In column D—20% risk weight, include all other amounts
that are not reported in column C or F.
Line item 35

Held-to-maturity securities.

Report in column A the amortized cost of held-tomaturity (HTM) securities reported in Schedule HC,
item 2(a).
In column B, include as a negative number the amortized
cost of those mortgage-backed and asset-backed securities reported in Schedule HC-B, item 4(a)(3), column A,
‘‘Other pass-through securities,’’ item 4(b)(2), column A,
Other mortgage-backed securities ‘‘Collateralized by
MBS issued or guaranteed by FNMA, FHLMC, or
GNMA,’’ item 4(b)(3), column A, ‘‘All other mortgageFR Y-9C
Schedule HC-R

March 2007

backed securities,’’ and item 5, column A, ‘‘Asset-backed
securities,’’ that are rated one category below investment
grade, e.g., BB.
In column C—0% risk weight, include the amounts
reported in Schedule HC-B, column A, for item 1, ‘‘U.S.
Treasury securities,’’ item 2(a), Securities ‘‘Issued by
U.S. Government agencies,’’ and item 4(a)(1), Passthrough securities ‘‘Guaranteed by GNMA. Also includethe portion of Schedule HC-B, item 4(b)(1), column A,
Other mortgage-backed securities ‘‘Issued or guaranteed
by FNMA, FHLMC, or GNMA,’’ that represents the
amortized cost of GNMA securities.
In column D—20% risk weight, include the amounts
reported in Schedule HC-B, column A, for item 2(b),
Securities ‘‘Issued by U.S. Government-sponsored agencies,’’ and item 4(a)(2), Pass-through securities ‘‘Issued
by FNMA and FHLMC.’’ Include the portion of Schedule HC-B, item 3, column A, ‘‘Securities issued by states
and political subdivisions in the U.S.,’’ that represents the
amortized cost of general obligation securities and the
portion of Schedule HC-B, item 4(b)(1), column A,
Other mortgage-backed securities ‘‘Issued or guaranteed
by FNMA, FHLMC, or GNMA,’’ that represents the
amortized cost of FHLMC and FNMA securities
(excluding interest-only strips that are not creditenhancing and principal-only strips, which must be
assigned a 100 percent risk weight). Also include the
portion of Schedule HC-B, item 4(b)(2), column A,
Other mortgage-backed securities ‘‘Collateralized by
MBS issued or guaranteed by FNMA, FHLMC, or
GNMA,’’ that represents the amortized cost of senior
interests in such securities (excluding interest-only strips
that are not credit-enhancing and principal-only strips,
which must be assigned a 100 percent risk weight). Also
include the portions of Schedule HC-B, item 4(a)(3),
column A, ‘‘Other pass-through securities,’’ item 4(b)(2),
column A, Other mortgage-backed securities ‘‘Collateralized by MBS issued or guaranteed by FNMA, FHLMC,
or GNMA,’’ item 4(b)(3), column A, ‘‘All other mortgagebacked securities,’’ and item 5, column A, ‘‘Asset-backed
securities,’’ that represents the amortized cost of securities that are rated in the highest or second highest
investment grade, e.g., AAA or AA, in the case of
long-term ratings, or in the highest rating category, e.g.,
A-1 or P-1, in the case of short-term ratings.
In column E—50% risk weight, include the portion of
Schedule HC-B, item 3, column A, ‘‘Securities issued by
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Schedule HC-R

states and political subdivisions in the U.S.,’’ that represents the amortized cost of revenue obligation securities. Also include the portions of Schedule HC-B,
item 4(a)(3), column A, ‘‘Other pass-through securities,’’
item 4(b)(2), column A, Other mortgage-backed securities ‘‘Collateralized by MBS issued or guaranteed by
FNMA, FHLMC, or GNMA,’’ item 4(b)(3), column A,
‘‘All other mortgage-backed securities,’’ and item 5,
column A, ‘‘Asset-backed securities,’’ that represents the
amortized cost of securities that are rated in the third
highest investment grade, e.g., A, in the case of long-term
ratings, or in the second highest rating category, e.g., A-2
or P-2, in the case of short-term ratings (excluding
interest-only strips that are not credit-enhancing and principal-only strips, which must be assigned a 100 percent
risk weight).
In column F—100% risk weight, include the amortized
cost of all other HTM securities reported in Schedule HC,
item 2(a), that are not included in columns C through E.
However, for those mortgage-backed and asset-backed
securities reported in Schedule HC-B, item 4(a)(3), column A, ‘‘Other pass-through securities,’’ item 4(b)(2),
column A, Other mortgage-backed securities ‘‘Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or
GNMA,’’ item 4(b)(3), column A, ‘‘All other mortgagebacked securities,’’ and item 5, column A, ‘‘Asset-backed
securities,’’ that are rated one category below investment
grade, e.g., BB, include in column F the amortized cost of
these securities multiplied by 2.
Line item 36

Available-for-sale securities.

Report in column A the fair value of available-for-sale
(AFS) securities reported in Schedule HC, item 2(b). For
regulatory capital purposes, however, AFS debt securities
are risk weighted at their amortized cost. In addition,
when AFS equity securities with readily determinable
fair values have a net unrealized loss, they are risk
weighted at their fair value. When such equity securities
have a net unrealized gain, they are risk weighted at their
historical cost plus the portion of the unrealized gain (up
to 45 percent) included in Tier 2 capital. This unrealized
gain is reported in Schedule HC-R, item 15.
In column B, include the difference between the fair
value and amortized cost of AFS debt securities. This
difference equals Schedule HC-B, items 1 through 6,
column D, minus items 1 through 6, column C. When fair
value exceeds cost, report the difference as a positive
number in Schedule HC-R, item 36, column B. When
HC-R-18

cost exceeds fair value, report the difference as a negative
number (i.e., in parentheses) in Schedule HC-R, item 36,
column B. If AFS equity securities with readily determinable fair values have a net unrealized gain (i.e., Schedule HC-B, item 7, column D, exceeds item 7, column C),
the portion of the net unrealized gain (55 percent or
more) not included in Tier 2 capital should be included in
Schedule HC-R, item 36, column B. The portion that is
not included in Tier 2 capital equals Schedule HC-B,
item 7, column D minus column C, minus Schedule
HC-R, item 15.
Also include in column B as a negative number the
amortized cost of those mortgage-backed and assetbacked securities reported in Schedule HC-B, item 4(a)(3),
column C, ‘‘Other pass-through securities,’’ item 4(b)(2),
column C, Other mortgage-backed securities ‘‘Collateralized by MBS issued or guaranteed by FNMA, FHLMC,
or GNMA,’’ item 4(b)(3), column C, ‘‘All other mortgagebacked securities,’’ and item 5, column C, ‘‘Asset-backed
securities,’’ that are rated one category below investment
grade, e.g., BB.
In column C—0% risk weight, include the amounts
reported in Schedule HC-B, column C, for item 1, ‘‘U.S.
Treasury securities,’’ item 2(a), Securities ‘‘Issued by
U.S. Government agencies,’’ and item 4(a)(1), Passthrough securities ‘‘Guaranteed by GNMA. Also include
the portion of Schedule HC-B, item 4(b)(1), column C,
Other mortgage-backed securities ‘‘Issued or guaranteed
by FNMA, FHLMC, or GNMA,’’ that represents the
amortized cost of GNMA securities.
In column D—20% risk weight, include the amounts
reported in Schedule HC-B, column C, for item 2(b),
Securities ‘‘Issued by U.S. Government-sponsored agencies,’’ and item 4(a)(2), Pass-through securities ‘‘Issued
by FNMA and FHLMC.’’ Include the portion of Schedule HC-B, item 3, column C, ‘‘Securities issued by states
and political subdivisions in the U.S.,’’ that represents
the amortized cost of general obligation securities and the
portion of Schedule HC-B, item 4(b)(1), column C, Other
mortgage-backed securities ‘‘Issued or guaranteed by
FNMA, FHLMC, or GNMA,’’ that represents the amortized cost of FHLMC and FNMA securities (excluding
interest-only strips that are not credit-enhancing and
principal-only strips, which must be assigned a 100 percent risk weight). Also include the portion of Schedule HC-B, item 4(b)(2), column C, Other mortgagebacked securities ‘‘Collateralized by MBS issued or
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

guaranteed by FNMA, FHLMC, or GNMA,’’ that represents the amortized cost of senior interests in such
securities (excluding interest-only strips that are not
credit-enhancing and principal-only strips, which must
be assigned a 100 percent risk weight). Also include the
portions of Schedule HC-B, item 4(a)(3), column C,
‘‘Other pass-through securities,’’ item 4(b)(2), column C,
Other mortgage-backed securities ‘‘Collateralized by
MBS issued or guaranteed by FNMA, FHLMC, or
GNMA,’’ item 4(b)(3), column C, ‘‘All other mortgagebacked securities,’’ and item 5, column C, ‘‘Asset-backed
securities,’’ that represents the amortized cost of securities that are rated in the highest or second highest
investment grade, e.g., AAA or AA, in the case of
long-term ratings, or in the highest rating category, e.g.,
A-1 or P-1, in the case of short-term ratings.

In addition, for AFS equity securities with readily determinable fair values reported in Schedule HC-B, item 7,
include the fair value of these equity securities (as
reported in Schedule HC-B, item 7, column D) if they
have a net unrealized loss. If these equity securities
have a net unrealized gain, include their historical cost
(as reported in Schedule HC-B, item 7, column C) plus
the portion of the unrealized gain (up to 45 percent)
included in Tier 2 capital (as reported in Schedule
HC-R, item 15). (NOTE: Certain investments in mutual
funds reported in Schedule HC-B, item 7, may qualify for
less than a 100 percent risk weight. For further information, refer to the risk-based capital standards.)

In column E—50% risk weight, include the portion of
Schedule HC-B, item 3, column C, ‘‘Securities issued
by states and political subdivisions in the U.S.,’’ that
represents the amortized cost of revenue obligation
securities. Also include the portions of Schedule HC-B,
item 4(a)(3), column C, ‘‘Other pass-through securities,’’
item 4(b)(2), column C, Other mortgage-backed securities ‘‘Collateralized by MBS issued or guaranteed by
FNMA, FHLMC, or GNMA,’’ item 4(b)(3), column C,
‘‘All other mortgage-backed securities,’’ and item 5,
column C, ‘‘Asset-backed securities,’’ that represents the
amortized cost of securities that are rated in the third
highest investment grade, e.g., A, in the case of long-term
ratings, or in the second highest rating category, e.g., A-2
or P-2, in the case of short-term ratings (excluding
interest-only strips that are not credit-enhancing and
principal-only strips, which must be assigned a 100 percent risk weight).

Report in column A the amount of federal funds sold and
securities purchased under agreements to resell reported
in Schedule HC, item 3.

In column F—100% risk weight, include the amortized
cost of all other AFS debt securities reported in Schedule HC-B, column C, that are not included in columns B
through E. However, for those mortgage-backed and
asset-backed securities reported in Schedule HC-B,
item 4(a)(3), column C, ‘‘Other pass-through securities,’’
item 4(b)(2), column C, Other mortgage-backed securities ‘‘Collateralized by MBS issued or guaranteed by
FNMA, FHLMC, or GNMA,’’ item 4(b)(3), column C,
‘‘All other mortgage-backed securities,’’ and item 5,
column C, ‘‘Asset-backed securities,’’ that are rated one
category below investment grade, e.g., BB, include in
column F the amortized cost of these securities multiplied by 2.
FR Y-9C
Schedule HC-R

March 2007

Line item 37 Federal funds sold and securities
purchased under agreements to resell.

In column C—0% risk weight, include the portion of
Schedule HC, item 3, that is directly and unconditionally
guaranteed by U.S. Government agencies or OECD
central governments.
In column D—20% risk weight, include the amount of
federal funds sold and securities resale agreements
reported in Schedule HC, item 3, that are not included in
columns C and F.
In column F—100% risk weight, include claims on
nondepository institution counterparties that lack qualifying collateral (refer to the risk based capital guidelines
for specific criteria) and claims on non-OECD depository
institutions with maturities of over one year.
Line item 38

Loans and leases held for sale.

Report in column A the carrying value of loans and leases
held for sale (HFS) reported in Schedule HC, item 4(a).
In column C—0% risk weight, include the carrying value
of the guaranteed portion of HFS SBA loans purchased in
the secondary market that are included in Schedule HC-C, items 3, ‘‘Loans to finance agricultural production and other loans to farmers,’’ and 4, ‘‘Commercial
and industrial loans.’’
In column D—20% risk weight, include the carrying
value of HFS loans to and acceptances of other depository institutions that are reported in Schedule HC-C,
item 2, (excluding the carrying value of any long-term
HC-R-19

Schedule HC-R

claims on non-OECD banks that are HFS), plus the
carrying value of the guaranteed portion of HFS FHA
and VA mortgage loans included in Schedule HC-C,
item 1(c)(2)(a), the carrying value of the guaranteed
portion of HFS SBA loans originated and held by the
reporting bank holding company included in Schedule HC-C, items 3 and 4, and the carrying value of
the portion of HFS student loans reinsured by the U.S.
Department of Education included in Schedule HC-C,
item 6(c), ‘‘Other consumer loans.’’
In column E—50% risk weight, include the carrying
value of HFS loans secured by 1–4 family residential
properties and by multifamily residential properties
included in Schedule HC-C, items 1(c)(2)(a) and 1(d),
respectively, that are prudently underwritten, are fully
secured by first liens on 1–4 family or multifamily
residential properties, are not 90 days or more past due or
in nonaccrual status, and meet other requirements specified in the risk-based capital guidelines.
In column F—100% risk weight, include the carrying
value of HFS loans reported in Schedule HC, item 4(a),
that is not included in columns B through E.
Line item 39
income.

Loans and leases, net of unearned

Report in column A the amount of loans and leases, net
of unearned income, reported in Schedule HC, item 4(b).
In column C—0% risk weight, include the carrying value
of the guaranteed portion of SBA loans purchased in the
secondary market that are included in Schedule HC-C,
items 3, ‘‘Loans to finance agricultural production and
other loans to farmers,’’ and 4, ‘‘Commercial and industrial loans.’’
In column D—20% risk weight, include the carrying
value of loans to and acceptances of other depository
institutions that are reported in Schedule HC-C, item 2,
(excluding the carrying value of any long-term claims on
non-OECD banks), plus the carrying value of the guaranteed portion of FHA and VA mortgage loans included in
Schedule HC-C, item 1(c)(2)(a), the carrying value of the
guaranteed portion of SBA loans originated and held by
the reporting bank holding company included in Schedule HC-C, items 3 and 4, and the carrying value of the
portion of student loans reinsured by the U.S. Department
of Education included in Schedule HC-C, item 6(c),
‘‘Other consumer loans.’’
HC-R-20

In column E—50% risk weight, include the carrying
value of loans secured by 1–4 family residential properties and by multifamily residential properties included in
Schedule HC-C, items 1(c)(2)(a) and 1(d), respectively,
that are prudently underwritten, are fully secured by first
liens on 1–4 family or multifamily residential properties,
are not 90 days or more past due or in nonaccrual status,
and meet other requirements specified in the risk-based
capital guidelines.
In column F—100% risk weight, include the carrying
value of loans reported in Schedule HC, item 4(b), that is
not included in columns B through E.
Line item 40
losses.

LESS: Allowance for loan and lease

Report in columns A and B the balance of the allowance
for loan and lease losses reported in Schedule HC,
item 4(c).
Line item 41

Trading assets.

Report in column A the fair value of trading assets
reported in Schedule HC, item 5.
If the bank holding company is subject to the market risk
capital requirement, also include the fair value of all
trading assets reported in Schedule HC, item 5, in
column B. The bank holding company will report its
market risk equivalent assets in Schedule HC-R, item 58.
For bank holding companies not subject to the market
risk capital requirement:
In column B, if the bank holding company completes
Schedule HC-D, include the fair value of derivative
contracts that are reported as assets in Schedule HC-D,
item 11. If the bank holding company does not complete
Schedule HC-D, include the portion of the amount
reported in Schedule HC, item 5, that represents the fair
value of derivative contracts that are assets.
Also include in column B as a negative number the fair
value of those mortgage-backed and asset-backed securities reported in Schedule HC-D, item 4, ‘‘Mortgagebacked securities,’’ item 5, ‘‘Other debt securities,’’ and
item 10, ‘‘Trading assets in foreign offices,’’ that are rated
one category below investment grade, e.g., BB. If the
bank holding company does not complete Schedule HC-D, include the portion of the amount reported in
Schedule HC, item 5, that represents the fair value of
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

mortgage-backed and asset-backed securities that are
rated one category below investment grade, e.g., BB.
In column C—0% risk weight, if the bank holding
company completes Schedule HC-D, include the amount
reported in Schedule HC-D, item 1, ‘‘U.S. Treasury
securities,’’ the portion of the amount reported in Schedule HC-D, item 2, that represents the fair value of
securities issued by U.S. Government agencies, and the
portion of the amounts reported in Schedule HC-D,
items 4(a) and 4(b), that represents the fair value of
mortgage-backed securities guaranteed by GNMA. If the
bank holding company does not complete Schedule HC-D, include the portion of the amount reported in
Schedule HC, item 5, that represents the fair value of
these types of securities.
In column D—20% risk weight, if the bank holding
company completes Schedule HC-D, include the portion
of the amount reported in Schedule HC-D, item 2, that
represents the fair value of securities issued by U.S.
Government-sponsored agencies, the portion of the
amount reported in Schedule HC-D, item 3, that represents the fair value of general obligations issued by states
and political subdivisions in the U.S., the portion of the
amount reported in Schedule HC-D, items 4(a) and 4(b),
that represents the fair value of mortgage-backed securities issued by FNMA and FHLMC (excluding interestonly strips that are not credit-enhancing and principalonly strips, which must be assigned a 100 percent risk
weight). and the portion of the amount reported in
Schedule HC-D, item 9, ‘‘Other trading assets,’’ that
represents the fair value of certificates of deposit and
bankers acceptances (excluding the fair of any long-term
claims on non-OECD banks). Also include the fair value
of those mortgage-backed and asset-backed securities
reported in Schedule HC-D, item 4, ‘‘Mortgage-backed
securities,’’ item 5, ‘‘Other debt securities,’’ and item 10,
‘‘Trading assets in foreign offices,’’ that are rated in the
highest or second highest investment grade, e.g., AAA or
AA, in the case of long-term ratings, or in the highest
rating category, e.g., A-1 or P-1, in the case of short-term
ratings. If the bank holding company does not complete
Schedule HC-D, include the portion of the amount
reported in Schedule HC, item 5, that represents the fair
value of these types of trading assets.
In column E—50% risk weight, if the bank holding
company completes Schedule HC-D, include the portion
of the amount reported in HC-D, item 3, that represents
FR Y-9C
Schedule HC-R

March 2007

the fair value of revenue obligations issued by states and
political subdivisions in the U.S. Also include the fair
value of those mortgage-backed and asset-backed securities reported in Schedule HC-D, item 4, ‘‘Mortgagebacked securities,’’ item 5, ‘‘Other debt securities,’’ and
item 10, ‘‘Trading assets in foreign offices,’’ that are rated
in the third highest investment grade category, e.g., A, in
the case of long-term ratings, or in the second highest
rating category, e.g. A-2 or P-2, in the case of short-term
ratings (excluding interest-only strips that are not creditenhancing and principal-only strips, which must be
assigned a 100 percent risk weight). If the bank holding
company does not complete Schedule HC-D, include the
portion of the amount reported in Schedule HC, item 5,
that represents the fair value of these types of securities.
In column F—100% risk weight, include the fair value of
trading assets reported in Schedule HC, item 5, that is not
included in columns B through E. However, for those
mortgage-backed and asset-backed securities reported in
Schedule HC, item 5, that are rated one category below
investment grade, e.g., BB, include in column F the fair
value of these securities multiplied by 2.
Line item 42

All other assets.

Report in column A the sum of the amounts reported
in Schedule HC, item 6, ‘‘Premises and fixed assets,’’
item 7, ‘‘Other real estate owned,’’ item 8, ‘‘Investments in
unconsolidated subsidiaries and associated companies,’’
item 10(a), ‘‘Goodwill,’’ item 10(b), ‘‘Other intangible
assets,’’ and item 11, ‘‘Other assets.’’
The carrying value of any bank holding company-owned
general account insurance product included in Schedule
HC, item 11, should be risk-weighted 100 percent. If the
bank holding company owns a separate account insurance product that qualifies for the ‘‘look-through’’ approach, the qualifying portion of the carrying value of
this product included in Schedule HC, item 11, may be
eligible for a risk weight less than 100 percent, but in no
case less than 20 percent. Any general account and stable
value protection (SVP) portions of the carrying value of a
separate account insurance product should be risk
weighted at the risk weights applicable to claims on the
insurer (100 percent) and the SVP provider (100 percent
or, if appropriate, 20 percent), respectively. A separate
account insurance product that does not qualify for the
‘‘look-through’’ approach should receive a 100 percent
risk weight. For further information, see the Interagency
HC-R-21

Schedule HC-R

Statement on the Purchase and Risk Management of Life
Insurance, issued December 7, 2004.
In column B, include the amount of any disallowed
goodwill and other disallowed intangible assets reported
in Schedule HC-R, item 7; disallowed servicing assets
and purchased credit card relationships reported in Schedule HC-R, item 9(a); disallowed deferred tax assets
reported in Schedule HC-R, item 9(b); all credit-enhancing
interest-only strips reported in Schedule HC, item 11; all
residual interests (as defined in the instructions for
Schedule HC-R, item 50) not eligible for the ratingsbased approach; the fair value of derivative contracts that
are reported as assets in Schedule HC, item 11; and the
carrying value of other assets reported in Schedule HC,
item 11, that act as credit enhancements for those
recourse transactions that must be reported in Schedule HC-R, items 49 and 51. Include the amount of the
bank holding company’s investments in unconsolidated
banking and finance subsidiaries that are reported in
Schedule HC, item 8, and are deducted for risk-based
capital purposes in Schedule HC-R, item 20. Also include
investments in unconsolidated special purpose entities
that issue trust preferred securities.
If the bank holding company has residual interests in
asset securitizations that are eligible for the ratings-based
approach, report the difference between these residuals’
fair value carrying amount and their amortized cost in
column B as a positive number if fair value exceeds cost
and as a negative number (i.e., in parentheses) if cost
exceeds fair value. Also, include in column B as a
negative number the amortized cost of any residual
interests in asset securitizations (other than creditenhancing interest-only strips) included in Schedule HC,
item 1 are rated one category below investment grade,
e.g., BB.
In column C—0% risk weight, include the carrying
value of Federal Reserve Bank stock included in Schedule HC-F, item 4; accrued interest receivable on assets
included in the zero percent risk weight category (column C of Schedule HC-R, items 34 through 41); and the
carrying value of gold bullion not held for trading that is
held in the bank holding company’s own vault or in
another institution’s vault on an allocated basis.
In column D—20% risk weight, include the carrying
value of Federal Home Loan Bank stock included in
Schedule HC-F, item 4; accrued interest receivable on
assets included in the 20 percent risk weight category
HC-R-22

(column D of Schedule HC-R, items 34 through 41); and
the portion of customers’ acceptance liability reported in
Schedule HC, item 11, that has been participated to other
depository institutions. Also include the amortized cost
of residual interests in asset securitizations (other than
credit-enhancing interest-only strips) included in Schedule HC, item 11, that are rated in the highest or second
highest investment grade, e.g., AAA or AA, in the case of
long-term ratings, or in the highest rating category, e.g.,
A-1 or P-1, in the case of short-term ratings.
In column E—50% risk weight, include accrued interest
receivable on assets included in the 50 percent risk
weight category (column E of Schedule HC-R, items 34
through 41). Also include the amortized cost of residual
interests in asset securitizations (other than creditenhancing interest-only strips) included in Schedule HC,
item 11, that are rated in the third highest investment
grade, e.g., A, in the case of long-term ratings, or in the
second highest rating category, e.g., A-2 or P-2, in the
case of short-term ratings.
In column F—100% risk weight, include the amount of
all other assets reported in column A that is not included
in columns B through E. However, for residual interests
in asset securitizations (other than credit-enhancing
interest-only strips) included in Schedule HC, item 11,
include the amortized cost of those that are rated in the
lowest investment grade category, e.g., BBB, and the
amortized cost multiplied by 2 of those that are rated one
category below investment grade, e.g., BB.
Line item 43

Total assets.

For columns A through F, report the sum of items 34
through 42. The sum of columns B through F must equal
column A.

Derivatives and Off-Balance Sheet Items
Bank holding companies should refer to the supervisory
guidance issued by the Federal Reserve for information
on how they should treat credit derivatives for risk-based
capital purposes and, as a consequence, for purposes of
completing the section of Schedule HC-R for derivatives
and off-balance sheet items.

Treatment of Liquidity Facilities for
Asset-Backed Commercial Paper Programs
Bank holding companies that provide liquidity facilities
to asset-backed commercial paper (ABCP) programs,
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

whether or not they are the program sponsor, must report
these facilities in the following manner in Schedule
HC-R (unless the bank holding company is a sponsor and
has chosen to consolidate the ABCP program assets onto
its balance sheet for risk-based capital purposes). The full
amount of the unused portion of an eligible liquidity
facility with an original maturity exceeding one year
should be reported in item 53, column A. For an eligible
liquidity facility with an original maturity of one year or
less, 20 percent of the unused portion of the facility
should be reported in item 53, column A, to produce the
effect of a 10 percent conversion factor when reporting
the credit equivalent amount of the liquidity facility in
item 53, column B. For ineligible liquidity facilities (both
direct credit substitutes and recourse obligations), bank
holding companies should report the full amount of the
unused portion of the facility in Schedule HC-R, item 51,
column A.
Line item 44

Financial standby letters of credit.

For financial standby letters of credit reported in Schedule HC-L, item 2, that act as credit enhancements for
asset-backed or mortgage-backed securities and to which
the ratings-based approach applies, report in column A:
(1) the amount outstanding and unused of those letters of
credit subject to a risk weight of 100% or less, and
(2) two times the amount outstanding and unused of
those letters of credit subject to a 200% risk weight.
For these financial standby letters of credit, report in
column B 100% of the amount reported in column A.
For all other financial standby letters of credit reported in
Schedule HC-L, item 2, report in column A:
(1) the amount outstanding and unused of those letters of
credit for which this amount is less than the effective
risk-based capital requirement for the assets that are
credit-enhanced by the letter of credit. These financial standby letters of credit are subject to the lowlevel exposure rule. For these financial standby letters of credit, report as the credit equivalent amount
in column B their amount outstanding and unused
multiplied by either 12.5 or by the institution-specific
factor determined in the manner described in the
instructions for Schedule HC-R, item 50.
(2) the full amount of the assets that are credit-enhanced
by those letters of credit that are not subject to the
FR Y-9C
Schedule HC-R

March 2007

low-level exposure rule. For these financial standby
letters of credit, report in column B 100% of the
amount reported in column A.
In column D—20% risk weight, include the credit equivalent amount of the portion of financial standby letters of
credit reported in Schedule HC-L, item 2(a), that has
been conveyed to U.S. and other OECD depository
institutions (and to non-OECD depository institutions for
letters of credit with remaining maturities of one year or
less). Also include in column D the credit equivalent
amount of financial standby letters of credit to which the
ratings-based approach applies that are rated in the
highest or second highest investment grade category, e.g.,
AAA or AA, in the case of long-term ratings, or in the
highest rating category, e.g., A-1 or P-1, in the case of
short-term ratings.
In column E—50% risk weight, include the credit equivalent amount of financial standby letters of credit to which
the ratings-based approach applies that are rated in the
third highest investment grade category, e.g., A, in the
case of long-term ratings, or in the second highest rating
category, e.g., A-2 or P-2, in the case of short-term ratings.
In column F—100% risk weight, include the portion of
the credit equivalent amount reported in column B that is
not included in columns C through E.
Line item 45 Performance standby letters of credit.
Report in column A the face amount of performance
standby letters of credit reported in Schedule HC-L,
item 3.
In column B, report 50 percent of the face amount
reported in column A.
In column D—20% risk weight, include the credit equivalent amount of the portion of performance standby letters
of credit reported in Schedule HC-L, item 3(a), that has
been conveyed to U.S. and other OECD depository institutions (and to non-OECD depository institutions for
letters of credit with remaining maturities of one year or
less).
In column F—100% risk weight, include the portion of
the credit equivalent amount reported in column B that is
not included in columns C through E.
Line item 46 Commercial and similar letters of
credit.
Report in column A the face amount of commercial and
similar letters of credit reported in Schedule HC-L,
item 4.
HC-R-23

Schedule HC-R

In column B, report 20 percent of the face amount
reported in column A.
In column F—100% risk weight, include the portion of
the credit equivalent amount reported in column B that is
not included in columns C through E.
Line item 47 Risk participations in banker’s
acceptances acquired by the reporting institution.
Report in column A the face amount of risk participations
in bankers acceptances that have been acquired by the
reporting institution and are outstanding.
In column B, report 100 percent of the face amount
reported in column A.
In column D—20% risk weight, include the credit equivalent amount of the portion of risk participations in
bankers acceptances that the reporting bank holding
company has acquired and subsequently conveyed to
U.S. and other OECD depository institutions (and to
non-OECD depository institutions for bankers acceptances with remaining maturities of one year or less).
In column F—100% risk weight, include the portion of
the credit equivalent amount reported in column B that is
not included in columns C and D.
Line item 48

Securities lent.

Report in column A the amount of securities lent reported
in Schedule HC-L, item 6.
In column B, report 100 percent of the face amount
reported in column A.
In column C—0% risk weight, include the credit equivalent amount of securities lent that is supported by the
appropriate amount of collateral that qualifies for the zero
percent risk weight under the risk based capital guidelines (refer to these guidelines for the specific qualifying
criteria).
In column D—20% risk weight, include the credit equivalent amount of securities lent that is supported by the
appropriate amount of collateral that qualifies for the
20 percent risk weight under the risk based capital
guidelines (refer to these guidelines for specific qualifying criteria). Also include the credit equivalent amount of
securities lent that represents claims on U.S. and other
OECD depository institutions (and claims on non-OECD
depository institutions for securities lent with remaining
maturities of one year or less).
HC-R-24

In column F—100% risk weight, include the portion of
the credit equivalent amount reported in column B that is
not included in columns C through E.
Line item 49 Retained recourse on small business
obligations sold with recourse.
Report in column A the amount of retained recourse on
small business obligations reported in Schedule HC-S,
Memorandum item 1(b).
Under Section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994, a ‘‘qualifying institution’’ that transfers small business loans and
leases on personal property (small business obligations)
with recourse in a transaction that qualifies as a sale
under generally accepted accounting principles (GAAP)
must maintain risk-based capital only against the amount
of recourse retained, provided the institution establishes a
recourse liability account that is sufficient under GAAP.
Only loans and leases to businesses that meet the criteria
for a small business concern established by the Small
Business Administration under Section 3(c) of the Small
Business Act (12 U.S.C. 631) are eligible for this favorable risk-based capital treatment.
In general, a ‘‘qualifying institution’’ is one that is well
capitalized without regard to the Section 208 provisions.
If a bank holding company ceases to be a qualifying
institution or exceeds the retained recourse limit set forth
in regulations implementing Section 208, all new transfers of small business obligations with recourse would
not be treated as sales. However, the reporting and
risk-based capital treatment described above will continue to apply to any transfers of small business obligations with recourse that were consummated during the
time the bank holding company was a ‘‘qualifying institution’’ and did not exceed the limit.
In column B, report 100 percent of the amount reported in
column A.
In column F—100% risk weight, include the portion of
the credit equivalent amount reported in column B that is
not included in columns C through E.
Line item 50 Recourse and direct credit
substitutes (other than financial standby letters of
credit) subject to the low level exposure rule and
residual interests subject to a dollar-for-dollar
capital requirement.
As defined in the risk-based capital standards,
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

• Recourse means an arrangement in which an institution
retains, in form or in substance, any credit risk directly
or indirectly associated with an asset it has sold (in
accordance with generally accepted accounting principles) that exceeds a pro rata share of the institution’s
claim on the asset.

assets (generally, four percent for qualifying first lien 1–4
family residential mortgages and eight percent for most
other assets), the risk-based capital requirement is limited
to the institution’s maximum contractual exposure, less
any recourse liability account established in accordance
with generally accepted accounting principles.

• Direct credit substitute means an arrangement in which
an institution assumes, in form or in substance, credit
risk directly or indirectly associated with an on- or
off-balance sheet asset or exposure that was not previously owned by the institution (third-party asset) and
the risk assumed by the institution exceeds the pro rata
share of the institution’s interest in the third party asset.

However, for residual interests (other than creditenhancing interest-only strips that have been deducted
from Tier 1 capital and assets) not eligible for the
ratings-based approach, an institution must maintain riskbased capital equal to the face amount of the residual
interest (net of any existing associated deferred tax
liability recorded on the balance sheet), even if the
amount of risk-based capital required to be maintained
exceeds the full risk-based capital requirement for the
assets transferred. The effect of this requirement is that,
notwithstanding the low level exposure rule, an institution must hold one dollar in total risk-based capital
against every dollar of the face amount of its residual
interests that are not eligible for the ratings-based approach (a dollar-for-dollar capital requirement), except
for any credit-enhancing interest-only strips that are
required to be deducted from Tier 1 capital and assets.

• Residual interest means any on-balance sheet asset that
represents an interest (including a beneficial interest)
created by a transfer that qualifies as a sale (in accordance with generally accepted accounting principles)
of financial assets, whether through a securitization or
otherwise, and that exposes an institution to credit risk
directly or indirectly associated with the transferred
asset that exceeds a pro rata share of the institution’s
claim on the asset, whether through subordination
provisions or other credit enhancement techniques. In
general, residual interests include credit-enhancing
interest-only strips (both retained and purchased),
spread accounts, cash collateral accounts, retained subordinated interests, other forms of overcollateralization, accrued but uncollected interest on transferred
assets that (when collected) will be available to serve in
a credit-enhancing capacity, and similar on-balance
sheet assets that function as a credit enhancement.
Under these definitions, all recourse arrangements in the
form of on-balance sheet assets are residual interests. The
only type of residual interest that is not a recourse
arrangement is a purchased credit-enhancing interestonly strip. Purchased credit-enhancing interest-only strips
are a type of direct credit substitute. Recourse arrangements not in the form of on-balance sheet assets (e.g.,
off-balance sheet recourse obligations, which may have
an associated on-balance sheet recourse liability) are not
residual interests.
The risk-based capital standards include a low-level
exposure rule, which states that if the maximum exposure
to loss retained or assumed by an institution in connection with a recourse arrangement, a direct credit substitute, or a residual interest is less than the effective
risk-based capital requirement for the credit-enhanced
FR Y-9C
Schedule HC-R

March 2007

Because all residual interests (including all retained
and purchased credit-enhancing interest-only strips) are
on-balance sheet assets, the on-balance sheet amount of
an institution’s residual interests not eligible for the
ratings-based approach should be reported in column B
of the Balance Sheet Asset Category section of Schedule HC-R. Similarly, when a direct credit substitute is
carried as an asset on the bank holding company’s
balance sheet and the low level exposure rule applies, the
on-balance sheet asset amount should be reported in
column B of the Balance Sheet Asset Category section of
Schedule HC-R.
For purposes of this item, the ‘‘maximum contractual
dollar amount of exposure’’ of a residual interest and a
direct credit substitute that is an on-balance sheet asset is
its ‘‘face amount’’ as of the report date, i.e., its amortized
cost if it is not held for trading purposes and its fair value
if it is held for trading purposes. In determining the
‘‘maximum contractual dollar amount of exposure’’ for a
residual interest, an institution is permitted, but not
required, to reduce the face amount by the amount of any
existing associated deferred tax liability.6 The ‘‘maximum contractual dollar amount of exposure’’ of a
6. Any deferred tax liability used in this manner would not be available

HC-R-25

Schedule HC-R

recourse arrangement and a direct credit substitute that
is not in the form of an on-balance sheet asset is the
maximum contractual amount of the institution’s exposure as of the report date, less the balance of any
associated recourse liability account established in accordance with generally accepted accounting principles and
reported in Schedule HC-G, item 4, ‘‘Other’’ liabilities.
Bank holding companies that have entered into
(a) recourse arrangements and direct credit substitutes
(other than financial standby letters of credit) that are
subject to the low level exposure rule and (b) residual
interests subject to a dollar-for-dollar capital requirement
should report these transactions in this item using either
the ‘‘direct reduction method’’ or the ‘‘gross-up method’’
in accordance with the following guidance. Exclude from
this item disallowed credit-enhancing interest-only strips
that have been deducted from Tier 1 capital and assets.
When using the ‘‘gross-up method,’’ an institution
includes an amount in its risk-weighted assets (the
denominator of its risk-based capital ratios) for its ‘‘maximum contractual dollar amount of exposure’’ that is
calculated under the assumption that the institution’s
total risk-based capital ratio equals the 8 percent minimum requirement. In contrast, when using the ‘‘direct
reduction method,’’ an institution includes an institutionspecific amount in its risk-weighted assets for its ‘‘maximum contractual dollar amount of exposure’’ that is
calculated using the actual amount of the institution’s
total risk-based capital. This institution-specific calculation produces the effect of directly reducing Tier 1 and
total risk-based capital by the ‘‘maximum contractual
dollar amount of exposure’’ without lowering the institution’s Tier 1 leverage capital ratio. For an institution
whose risk-based capital ratios exceed the required minimums, it is normally preferable to use the ‘‘direct reduction method.’’
If the bank holding company chooses to use the ‘‘direct
reduction method,’’ the bank holding company should
report as the credit equivalent amount in Schedule HC-R,
item 50, column B, an ‘‘institution-specific add-on factor’’ for its low-level exposure or residual interest. This
credit equivalent amount should then be assigned to the
100 percent risk weight category in column F of this
item. The ‘‘institution-specific add-on factor,’’ which is
for the bank holding company to use in determining the amount of
disallowed deferred tax assets in Schedule HC-R, item 9(b), above.

HC-R-26

independent of the risk weight category of the assets to
which the exposure relates, is calculated as follows:
C×A
F=
−A
C−R
where
F = institution-specific add-on factor;
C = total risk-based capital (as reported in
Schedule HC-R, item 21);
A = net risk-weighted assets excluding low-level
exposures and residual interests; and
R = maximum contractual dollar amount of
exposure in low-level exposure transactions
or of residual interests (as reported in
column A of this item)
For purposes of calculating the amount of the bank
holding company’s total risk-based capital to be used in
the preceding formula (C in the formula) and to be
reported in Schedule HC-R, item 21, the bank holding
company should determine the Tier 2 capital limit on the
allowance for loan and lease losses by multiplying its
‘‘maximum contractual dollar amount of exposure’’ (R in
the preceding formula, as defined in these instructions)
by 12.5 and adding this product to its gross risk-weighted
assets excluding low level exposures and residual interests. This adjusted gross risk-weighted-assets figure multiplied by 1.25 percent is the bank’s Tier 2 capital limit
on the allowance for loan and lease losses. Once this limit
on the allowance has been calculated, the limit is fixed at
this amount. This limit should not be changed after the
bank holding company calculates the actual amount of its
net risk-weighted assets excluding low level exposures
and residual interests (A in the preceding formula) or its
institution-specific add-on factor for low level exposures
and residual interests under the ‘‘direct reduction method’’
(F in the preceding formula). This means that a bank
holding company will measure its Tier 2 capital and its
total risk-based capital prior to its application of the
‘‘direct reduction method’’ and will not recalculate these
two amounts once the add-on factor is known.
If the bank holding company chooses to use the ‘‘gross-up
method,’’ the ‘‘maximum contractual dollar amount of
exposure’’ for the bank holding company’s low level
exposure transactions and its residual interests, as reported in column A of this item, should be multiplied by
a factor of 12.5. The resulting dollar amount should be
reported as the credit equivalent amount in column B of
Schedule HC-R

FR Y-9C
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Schedule HC-R

this item and assigned to the 100 percent risk weight
category in column F.
For example, a bank holding company has sold $2 million in first lien residential mortgages subject to two
percent recourse. The bank holding company has removed
the $2 million in mortgages from its balance sheet and, in
accordance with GAAP, has also established a recourse
liability account with a balance of $10,000. The maximum amount for which the bank holding company is
liable is $40,000. The mortgages qualify for a 50 percent
risk weight and the bank holding company’s recourse
exposure is less than the $80,000 minimum risk-based
capital requirement for these assets sold with recourse.
Thus, the low level exposure rule applies. The ‘‘maximum contractual dollar amount of exposure’’ for this
transaction is $30,000, the $40,000 maximum contractual
amount of the bank holding company’s recourse exposure as of the report date, less the $10,000 balance of the
recourse liability account for this transaction. The bank
holding company has no other transactions that would
qualify for the low level exposure rule. It has gross
risk-weighted assets excluding low level exposures and
residual interests of $100 million, Tier 1 capital of
$8 million, an allowance for loan and lease losses of
$1.1 million, and other qualifying Tier 2 capital components of $1.4 million.
If the bank holding company chooses to use the ‘‘direct
reduction method,’’ the bank holding company would
report $30,000—its ‘‘maximum contractual dollar amount
of exposure’’—as the ‘‘face value or notional amount’’ in
column A of this item and would use this amount to
calculate its institution-specific add-on factor using the
formula provided above. To determine the Tier 2 capital
limit for the bank holding company’s allowance for loan
and lease losses, the bank holding company would first
add $375,000 ($30,000—its ‘‘maximum contractual dollar amount of exposure’’—multiplied by 12.5) to its
$100 million of gross risk-weighted assets excluding low
level exposures and residual interests. Its Tier 2 capital
limit for the allowance would be $1,254,688
($100,375,000 − its adjusted gross risk-weighted assets—
multiplied by 1.25 percent—the limit for the allowance).
Since the bank holding company’s $1.1 million allowance is less than its Tier 2 capital limit for the allowance,
the bank holding company would report an ‘‘excess
allowance for loan and lease losses’’ of $0 in Schedule HC-R, item 60, column F. The bank holding company’s total risk-based capital is $10.5 million and its net
FR Y-9C
Schedule HC-R

March 2007

risk-weighted assets excluding low level exposures and
residual interests are $100 million. Based on the facts in
the example, the bank holding company calculates that
its institution-specific add-on factor is $286,533. The
bank holding company would report the amount of this
add-on factor as the credit equivalent amount in column B of this item and assign this amount to the
100 percent risk weight category in column F.
If the bank holding company chooses to use the ‘‘gross-up
method,’’ the bank holding company would report $30,000
(its ‘‘maximum contractual dollar amount of exposure’’)
as the ‘‘face value or notional amount’’ in column A of
this item. The bank holding company would report
$375,000 as the credit equivalent amount in column B
($30,000—its ‘‘maximum contractual dollar amount of
exposure’’—multiplied by 12.5). It would also assign this
amount to the 100 percent risk weight category in column
F of this item. Because the $2 million in mortgages sold
have been removed from the balance sheet, the difference
between the $375,000 credit equivalent amount and the
$2 million is not reported in Schedule HC-R. In addition,
the bank holding company would include the $375,000 in
its gross risk-weighted assets for purposes of determining
the Tier 2 capital limit for the allowance for loan and
lease losses.
Line item 51
recourse.

All other financial assets sold with

Include in this item all recourse arrangements (as defined
in Schedule HC-R, item 50, above) in which the bank
holding company’s exposure has not already been
included in Schedule HC-R, item 44, ‘‘Financial standby
letters of credit,’’ item 49, ‘‘Retained recourse on small
business obligations sold with recourse,’’ or item 50,
‘‘Recourse and direct credit substitutes (other than financial standby letters of credit) subject to the low level
exposure rule and residual interests subject to a dollarfor-dollar capital requirement.’’ For example, include in
this item recourse arrangements where the bank holding
company is obligated to repurchase a loan or otherwise
compensate the purchaser of a loan in the event of the
borrower’s failure to pay when due (unless the loan is a
small business obligation sold with recourse that has
been reported in Schedule HC-R, item 49, above).
Exclude from this item disallowed credit-enhancing
interest-only strips that have been deducted from Tier 1
capital and assets.
HC-R-27

Schedule HC-R

For those recourse arrangements that must be included
in this item that are not eligible for the ratings-based
approach, report in column A the outstanding principal
balance of the loans or other financial assets that were
sold with recourse, minus the amount of any recourse
liability account associated with these transactions that is
included in Schedule HC-G, item 4, ‘‘Other’’ liabilities.
For those recourse arrangements that must be included in
this item that act as credit enhancements for asset-backed
or mortgage-backed securities and to which the ratingsbased approach applies, report in column A:
(1) the maximum contractual remaining amount of the
bank holding company’s recourse exposures that are
subject to a risk weight of 100% or less, minus the
amount of any recourse liability account associated
with these exposures that is included in Schedule HCG, item 4, and
(2) two times the maximum contractual remaining
amount of the bank holding company’s recourse
exposures that are subject to a 200% risk weight,
minus the amount of any recourse liability account
associated with these exposures that is included in
Schedule HC-G, item 4.
In column B, report 100 percent of the amount reported in
column A.
In column C—0% risk weight, include the credit equivalent amount of financial assets sold with recourse (not
eligible for the ratings-based approach) that, if they were
carried as assets on the balance sheet, would meet the
criteria for the zero percent risk weight category as
described in the instructions for Risk-Weighted Assets
and for Schedule HC-R, items 34 through 42, above.
In column D—20% risk weight, include the credit equivalent amount of financial assets sold with recourse (not
eligible for the ratings-based approach) that, if they were
carried as assets on the balance sheet, would meet the
criteria for the 20 percent risk weight category as
described in the instructions for Risk-Weighted Assets
and for Schedule HC-R, items 34 through 42, above.
Also include in column D the credit equivalent amount of
those recourse arrangements to which the ratings-based
approach applies that are rated in the highest or second
highest investment grade category, e.g., AAA or AA, in
the case of long-term ratings, or in the highest rating
category, e.g., A-1 or P-1, in the case of short-term
ratings.
HC-R-28

In column E—50% risk weight, include the credit equivalent amount of financial assets sold with recourse (not
eligible for the ratings-based approach) that, if they were
carried as assets on the balance sheet, would meet the
criteria for the 50 percent risk weight category as
described in the instructions for Risk-Weighted Assets
and for Schedule HC-R, items 34 through 42, above.
Also include in column E the credit equivalent amount of
those recourse arrangements to which the ratings-based
approach applies that are rated in the third highest
investment grade category, e.g., A, in the case of longterm ratings, or in the second highest rating category,
e.g., A-2 or P-2, in the case of short-term ratings.
In column F—100% risk weight, include the portion of
the credit equivalent amount reported in column B that is
not included in columns C through E.
Line item 52

All other off-balance sheet liabilities.

Report in column A the notional amount of all other
off-balance sheet liabilities reported in Schedule HC-L,
item 9, that are covered by the risk-based capital guidelines. Also include in column A the notional amount of
written option contracts that act as financial guarantees,
which have been reported as derivatives in Schedule HC-L, item 11, but are treated as direct credit
substitutes rather than derivatives for risk-based capital
purposes. Also include in column A the amount of those
credit derivatives reported in Schedule HC-L, item 7, that
under Federal Reserve supervisory guidance, are covered
by the risk-based capital standards, but have not been
included in any of the preceding items in the Derivatives
and Off-Balance Sheet Items section of Schedule HC-R.
However, do not report in column A the notional amount
of standby letters of credit issued by a Federal Home
Loan Bank on behalf of the reporting bank holding
company that are reported in Schedule HC-L, item 9,
because these letters of credit are not covered by the
risk-based capital guidelines.
In column B, report 100 percent of the notional amount
reported in column A.
In column C—0% risk weight, include the credit equivalent amount of liabilities to counterparties who meet, or
that have guarantees or collateral that meets, the criteria
for the zero percent risk weight category as described in
the instructions for Risk-Weighted Assets and for Schedule HC-R, items 34 through 42, above.
Schedule HC-R

FR Y-9C
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Schedule HC-R

In column D—20% risk weight, include the credit equivalent amount of liabilities to counterparties who meet, or
that have guarantees or collateral that meets, the criteria
for the 20 percent risk weight category as described in the
instructions for Risk-Weighted Assets and for Schedule HC-R, items 34 through 42, above.
In column E—50% risk weight, include the credit equivalent amount of liabilities to counterparties who meet, or
that have guarantees or collateral that meets, the criteria
for the 50 percent risk weight category as described in the
instructions for Risk-Weighted Assets and for Schedule HC-R, items 34 through 42, above.
In column F—100% risk weight, include the portion of
the credit equivalent amount reported in column B that is
not included in columns C through E.
Line item 53 Unused commitments with an
original maturity exceeding one year.
Report in column A the unused portion of commitments
to make or purchase extensions of credit in the form of
loans or participations in loans, lease financing receivables, or similar transactions as reflected in Schedule HC-L, item 1, that have an original maturity exceeding one year and are subject to the risk-based capital
guidelines. Under the risk-based capital guidelines, the
unused portion of commitments (facilities) with an original maturity of one year or less or which are unconditionally cancelable (without cause) at any time by the bank
holding company, provided a separate credit decision is
made before each drawing, have a zero percent conversion factor. The unused portion of such commitments
should be excluded from this item. ‘‘Original maturity’’
is defined as the length of time between the date a
commitment is issued and the date of maturity, or the
earliest date on which the bank holding company (1) is
scheduled to (and as a normal practice actually does)
review the facility to determine whether or not it should
be extended and (2) can unconditionally cancel the
commitment. Also include in column A all revolving
underwriting facilities (RUFs) and note issuance facilities (NIFs), regardless of maturity.
In the case of consumer home equity or mortgage lines of
credit secured by liens on 1–4 family residential properties, a bank holding company is deemed able to unconditionally cancel the commitment if, at its option, it can
prohibit additional extensions of credit, reduce the credit
line, and terminate the commitment to the full extent
FR Y-9C
Schedule HC-R

March 2007

permitted by relevant federal law. Retail credit cards and
related plans, including overdraft checking plans and
overdraft protection programs, are defined to be shortterm commitments that should be converted at zero
percent and excluded from this item 53 if the bank
holding company has the unconditional right to cancel
the line of credit at any time in accordance with applicable law.
For commitments providing for increases in the dollar
amount of the commitment, the amount to be converted
to an on-balance sheet credit equivalent amount and risk
weighted is the maximum dollar amount that the bank
holding company is obligated to advance at any time
during the life of the commitment. This includes seasonal
commitments where the dollar amount of the commitment increases during the customer’s peak business
period. In addition, this risk-based capital treatment
applies to long-term commitments that contain shortterm options which, for a fee, allow the customer to
increase the dollar amount of the commitment. Until the
short-term option has expired, the reporting bank holding
company must convert and risk weight the amount which
it is obligated to lend if the option is exercised. After the
expiration of a short-term option which has not been
exercised, the unused portion of the original amount of
the commitment is to be used in the credit conversion
process.
In column B, report 50 percent of the amount of unused
commitments reported in column A.
In column C—0% risk weight, include the credit equivalent amount of unused commitments for extensions of
credit to counterparties who meet, or that have guarantees or collateral that meets, the criteria for the zero
percent risk weight category as described in the instructions for Risk-Weighted Assets and for Schedule HC-R,
items 34 through 42, above.
In column D—20% risk weight, include the credit equivalent amount of unused commitments for extensions of
credit to counterparties who meet, or that have guarantees or collateral that meets, the criteria for the 20 percent risk weight category as described in the instructions for Risk-Weighted Assets and for Schedule HC-R,
items 34 through 42, above. Include commitments that
have been conveyed to U.S. and other OECD depository
institutions.
In column E—50% risk weight, include the credit equivalent amount of unused commitments for extensions of
HC-R-29

Schedule HC-R

credit to counterparties who meet, or that have guarantees or collateral that meets, the criteria for the 50 percent
risk weight category as described in the instructions for Risk-Weighted Assets and for Schedule HC-R,
items 34 through 42, above.
In column F—100% risk weight, include the portion of
the credit equivalent amount reported in column B that is
not included in columns C through E.
Line item 54

Derivative contracts.

Report in column B the credit equivalent amount of
derivative contracts covered by the risk-based capital
guidelines. Under these guidelines, the maximum risk
weight to be applied to the credit equivalent amount of
any derivative contract is 50 percent. However, exclude
credit derivative contracts, which, if covered by the
risk-based capital standards in accordance with Federal
Reserve supervisory guidance, should be reported in one
of the preceding items in the Derivatives and Off-Balance
Sheet Items section of Schedule HC-R.
The credit equivalent amount of a bank holding company’s derivative contract is the sum of its current credit
exposure reported in Schedule HC-R, memorandum
item 1, plus the potential future exposure over the
remaining life of the derivative contract (regardless of its
current credit exposure, if any). The current credit exposure of a derivative contract is (1) the fair value of the
contract when that fair value is positive and (2) zero
when the fair value of the contract is negative or zero.
The potential future credit exposure of a contract, which
is based on the type of contract and the contract’s
remaining maturity, is determined by multiplying the
notional principal amount of the contract by the appropriate credit conversion factor from the chart presented
below. The notional principal amounts of the reporting
bank holding company’s derivatives that are subject to

the risk-based capital requirements are reported in Schedule HC-R, Memorandum items 2(a) through 2(f).
Under the risk-based capital standards and for purposes
of Schedule HC-R, the existence of a legally enforceable
bilateral netting agreement between the reporting bank
holding company and a counterparty may be taken
into consideration when determining both the current
credit exposure and the potential future exposure of
derivative contracts. For further information on the
treatment of bilateral netting agreements covering derivative contracts, refer to the instructions for Schedule HC-R, Memorandum item 1, and the risk-based
capital standards.
In column C—0% risk weight, include the credit equivalent amount of derivative contracts. with counterparties
who meet, or that have guarantees or collateral that
meets, the criteria for the zero percent risk weight
category as described in the instructions for RiskWeighted Assets and for Schedule HC-R, items 34
through 42, above.
In column D—20% risk weight, include the credit equivalent amount of derivative contracts with counterparties
who meet, or that have guarantees or collateral that
meets, the criteria for the 20 percent risk weight category
as described in the instructions for Risk-Weighted Assets
and for Schedule HC-R, items 34 through 42, above.
In column E—50% risk weight, include the portion of the
credit equivalent amount reported in column B that is not
included in columns C and D.

Totals
Line item 55 Total assets, derivatives, and
off-balance sheet items by risk weight category.
Report the sum of items 43 through 54 for each column
(columns C through F).

Equity
contracts

Precious
metals
contracts
(except
gold)

Other
commodity
contracts

1.0%

6.0%

7.0%

10.0%

0.5%

5.0%

8.0%

7.0%

12.0%

1.5%

7.5%

10.0%

8.0%

15.0%

Remaining maturity

Interest
rate
contracts

Foreign
exchange
and gold
contracts

One year or less . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.0%

More than one year through five years . . .
More than five years . . . . . . . . . . . . . . . . . . . . . .
HC-R-30

Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

Line item 56

Risk weight factor.

Line item 57
category.

Risk-weighted assets by risk weight

For each of columns C through F, multiply the amount in
item 55 by the risk weight factor specified for that
column in item 56.
Line item 58

Market risk equivalent assets.

NOTE: Item 58 is applicable only to bank holding
companies that are subject to the market risk capital
guidelines.
Report the amount of the bank holding company’s market risk equivalent assets. For further background information, bank holding companies should refer to the
discussion of ‘‘Bank holding companies that are subject
to the market risk capital guidelines’’ in the RiskWeighted Assets section of these instructions and the
capital guidelines for specific instructions on the calculation of the measure for market risk.
The value-at-risk (VAR) of the a bank holding company’s covered positions should be used to determine
thebank holding company’s measure for market risk.
Covered positions include all positions in a bank holding
company’s trading account and foreign exchange and
commodity positions, whether or not in the trading
account. VAR is an estimate of the amount by which a
bank holding company’s positions in a risk category
could decline due to expected losses in the bank holding
company’s portfolio due to market movements during a
given period, measured with a specified confidence level.
A bank holding company’s measure for market risk
equals the sum of its VAR-based capital charge, the
specific risk add-on (if any), and the capital charge for
de minimus exposures (if any). A bank holding company’s market risk equivalent assets equal its measure for
market risk multiplied by 12.5 (the reciprocal of the
minimum 8.0 percent capital ratio).
Bank holding companies subject to the market risk
capital guidelines must maintain an overall minimum
8.0 percent ratio of total qualifying capital (the sum of
Tier 1 capital (both allocated and excess), Tier 2 capital
(both allocated and excess), and Tier 3 capital (allocated
for market risk), net of all deductions) to risk-weighted
assets and market risk equivalent assets. Bank holding
companies should refer to the capital guidelines for
FR Y-9C
Schedule HC-R

March 2007

specific instructions on the calculation of the measure for
market risk.
Line item 59 Risk-weighted assets before
deductions for excess allowance for loan and lease
losses and allocated transfer risk reserve.
Report the sum of item 57, columns C through F, and
item 58.
Line item 60
lease losses.

LESS: Excess allowance for loan and

Report the amount, if any, by which the bank holding
company’s allowance for loan and lease losses exceeds
1.25 percent of the bank holding company’s gross riskweighted assets. The amount to be reported in this item is
Schedule HC, item 4(c), less Schedule HI-B, part II,
memorandum item 1, plus Schedule HC-G, item 3, less
Schedule HC-R, item 14.
Line item 61
reserve.

LESS: Allocated transfer risk

Report the entire amount of any allocated transfer risk
reserve the reporting bank holding company is required
to establish and maintain as specified in Section 905(a) of
the International Lending Supervision Act of 1983, in the
Federal Reserve’s regulation implementing the Act (Subpart D of Federal Reserve Regulation K), and in any
guidelines, letters, or instructions issued by the Federal
Reserve. The entire amount of the ATRR equals the
ATRR related to loans and leases held for investment
(which is reported in Schedule HI-B, part II, memorandum item 1) plus the ATRR for assets other than loans
and leases held for investment.
Line item 62

Total risk-weighted assets.

Report the amount derived by subtracting items 60 and
61 from item 59.

Memoranda
Line item M1 Current credit exposure across all
derivative contracts covered by the risk-based
capital standards.
Report the total current credit exposure amount for all
interest rate, foreign exchange, commodity, and equity
derivative contracts covered by the risk-based capital
standards after considering applicable legally enforceable
HC-R-31

Schedule HC-R

bilateral netting agreements. Bank holding companies that are subject to the market risk capital guidelines
should exclude all covered positions subject to these
guidelines, except for foreign exchange derivatives that
are outside of the trading account and all over-the-counter
(OTC) derivatives. Foreign exchange derivatives that are
outside of the trading account and all OTC derivatives
continue to have a counterparty credit risk capital charge
and, therefore, a current credit exposure amount for these
derivatives should be reported in this item.
The following types of derivative contracts are not
covered by the risk-based capital standards:
(1) interest rate, foreign exchange, equity, commodity
and other derivative contracts traded on exchanges
that require daily payment of variation margin,
(2) foreign exchange contracts with an original maturity
of fourteen calendar days or less, and
(3) all written option contracts except for those that are,
in substance, financial guarantees.
Purchased options held by the reporting bank holding
company that are traded on an exchange are covered by
the risk-based capital standards unless such options are
subject to a daily variation margin. Variation margin is
defined as the gain or loss on open positions, calculated
by marking to market at the end of each trading day. Such
gain or loss is credited or debited by the clearing house to
each clearing member’s account, and by members to
their customers’ accounts.
If a written option contract acts as a financial guarantee,
then it will be treated as a direct credit substitute for
risk-based capital purposes and the notional amount
of the option should be included in Schedule HC-R,
item 52, column A, as an ‘‘other off-balance sheet
liability.’’ An example of such a contract occurs when the
reporting bank holding company writes a put option to a
second institution which has a loan to a third party. The
strike price would be the equivalent of the par value of
the loan. If the credit quality of the loan deteriorates,
thereby reducing the value of the loan to the second
institution, the reporting bank holding company would be
required by the second institution to take the loan onto its
books.
Current credit exposure (sometimes referred to as the
placement cost) is the fair value of a contract when that
fair value is positive. The current credit exposure is zero
when the fair value is negative or zero. Current credit
HC-R-32

exposure should be derived as follows: Determine whether
a legally enforceable bilateral netting agreement is in
place between the reporting bank holding company and a
counterparty. If such an agreement is in place, the fair
values of all applicable derivative contracts with that
counterparty that are included in the netting agreement
are netted to a single amount. Next, for all other contracts
covered by the risk-based capital standards that have
positive fair values, the total of the positive fair values is
determined. Then, report in this item the sum of (i) the
net positive fair values of applicable derivative contracts
subject to legally enforceable bilateral netting agreements and (ii) the total positive fair values of all other
contracts covered by the risk-based capital standards.
The current credit exposure reported in this item is a
component of the credit equivalent amount of derivative
contracts that is to be reported in Schedule HC-R,
item 54, column B.
Consistent with the risk-based capital guidelines, if a bilateral netting agreement covers off-balance sheet derivative contracts that are normally not covered by the riskbased capital standards (e.g., foreign exchange contracts
with an original maturity of 14 calendar days or less and
contracts traded on exchanges that require daily payment
of variation margin), the reporting bank holding company
may elect to consistently either include or exclude the fair
values of all such derivative contracts when determining
the net current credit exposure for that agreement.
The definition of a legally enforceable bilateral netting
agreement for purposes of this item is the same as that set
forth in the risk-based capital rules. These rules require a
written bilateral netting contract that creates a single
legal obligation covering all included individual contracts and that does not contain a walkaway clause. The
bilateral netting agreement must be supported by a
written and reasoned legal opinion representing that an
organization’s claim or obligation, in the event of a legal
challenge, including one resulting from default, insolvency, bankruptcy, or similar circumstances, would be
found by the court and administrative authorities of all
relevant jurisdictions to be the net sum of all positive and
negative fair values of contracts included in the bilateral
netting contract.
Line item M2 Notional principal amounts of
derivative contracts.
Report in the appropriate subitem and column the
notional amount or par value of all derivative contracts,
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

including credit derivatives, that are subject to the riskbased capital requirements for derivatives. Such contracts include swaps, forwards, and purchased options.
Report notional amounts and par values in the column
corresponding to the contract’s remaining term to maturity from the report date. Remaining maturities are to be
reported as (1) one year or less in column A, (2) over one
year through five years in column B, or (3) over five
years in column C.
Do not report the notional amount for single currency
interest rate swaps in which payments are made based
upon two floating rate indices, so-called floating/floating
or basis swaps; foreign exchange contracts with an
original maturity of 14 days or less; and futures contracts.
The notional amount or par value to be reported for an
off-balance-sheet derivative contract with a multiplier
component is the contract’s effective notional amount or
par value. (For example, a swap contract with a stated
notional amount of $1,000,000 whose terms call for
quarterly settlement of the difference between 5% and
LIBOR multiplied by 10 has an effective notional amount
of $10,000,000.)
The notional amount to be reported for an amortizing
derivative contract is the contract’s current (or, if appropriate, effective) notional amount. This notional amount
should be reported in the column corresponding to the
contract’s remaining term to final maturity.
For descriptions of ‘‘interest rate contracts,’’ ‘‘foreign
exchange contracts,’’ ‘‘commodity and other contracts,’’
and ‘‘equity derivative contracts,’’ refer to the instructions for Schedule HC-L, item 11. For a description of
‘‘credit derivative contracts,’’ refer to the instructions for
Schedule HC-L, item 7.
Line item M2(a)

Interest rate contracts.

Report the remaining maturities of interest rate contracts
that are subject to risk-based capital requirements.
Line item M2(b)

Gold contracts.

Report the remaining maturities of gold contracts that are
subject to risk-based capital requirements.
FR Y-9C
Schedule HC-R

Other precious metals contracts.

Report the remaining maturities of other precious metals
contracts that are subject to risk-based capital requirements. Report all silver, platinum, and palladium contracts.
Line item M2(e)

Other commodity contracts.

Report the remaining maturities of other commodity
contracts that are subject to risk-based capital requirements. For contracts with multiple exchanges of principal, notional amount is determined by multiplying the
contractual amount by the number of remaining payments (i.e., exchanges of principal) in the derivative
contract.
Line item M2(f)

Equity derivative contracts.

Report the remaining maturities of equity derivative
contracts that are subject to risk-based capital requirements.
Line Item M2(g)

Credit derivative contracts.

Report in the appropriate subitem the remaining maturities of credit derivative contracts that are subject to
risk-based capital requirements. The credit derivative
contracts included in this item should not be reported in
Schedule HC-R, item 54, but should be reported in
Schedule HC-R, item 52, if they have not been reported
in one of the items preceding item 52 in the Derivatives
and Off-Balance-Sheet Items section of this schedule.
Line Item M2(g)(1)

Investment grade.

Report the remaining maturities of credit derivative
contracts where the underlying reference asset is rated
investment grade or, if not rated, is the equivalent of
investment grade under the bank holding company’s
internal credit rating system

Foreign exchange contracts.

Report the remaining maturities of foreign exchange
contracts that are subject to risk-based capital
requirements.
Line item M2(c)

Line item M2(d)

March 2007

Line Item M2(g)(2)

Subinvestment grade.

Report the remaining maturities of credit derivative
contracts where the underlying reference asset is rated
below investment grade, i.e., subinvestment grade, or, if
not rated, is the equivalent of below investment grade
under the bank holding company’s internal credit rating
system.
HC-R-33

Schedule HC-R

Line item M3 Preferred stock (including related
surplus) eligible for inclusion in Tier 1 capital.
Line item M3(a) Noncumulative perpetual
preferred stock (included and reported in ‘‘Total
equity capital,’’ on Schedule HC).
Report all noncumulative perpetual preferred stock
included and reported in ‘‘Total equity capital,’’ on
Schedule HC that is eligible for inclusion in Tier 1
capital. Report all amounts net of any noncumulative
perpetual preferred stock incuded in treasury stock. Also
report noncumulative perpetual preferred stock net of the
offsetting debit to the liability recorded by the reporting
bank holding company in connection with its ESOP debt
to the extent that the proceeds of the borrowings were
used to purchase the holding company’s or its consolidated subsidiaries’ perpetual preferred stock.
Line item M3(b) Cumulative perpetual preferred
stock (included and reported in ‘‘Total equity
capital,’’ on Schedule HC).
Report all cumulative perpetual preferred stock included
and reported in ‘‘Total equity capital,’’ on Schedule HC
that is eligible for inclusion in Tier 1 capital. Report all
amounts net of any cumulative perpetual preferred stock
included in treasury stock. Also report cumulative perpetual preferred stock net of the offsetting debit to the
liability recorded by the reporting bank holding company
in connection with its ESOP debt to the extent that the
proceeds of the borrowings were used to purchase the
holding company’s or its consolidated subsidiaries’ perpetual preferred stock.
Line item M3(c) Other noncumulative preferred
stock eligible for inclusion in Tier 1 capital (e.g.
REIT preferred securities)(included in Schedule
HC, item 22).
Report all other noncumulative preferred stock included
and reported in Schedule HC, item 22, ‘‘Minority interest
in consolidated subsidiaries and similar items,’’ that is
eligible for inclusion in tier 1 capital. Include instruments
such as preferred securities issued by real estate investment trusts (REITs). REITs are special purpose entities
that hold real estate related assets and issue preferred
stock that pay dividends distributing most of the REIT’s
income to investors. Such income is taxed as income to
the investors rather than the REIT.
HC-R-34

Line item M3(d) Other cumulative preferred stock
eligible for inclusion in Tier 1 capital (excluding
trust preferred securities) (included in Schedule
HC, item 20 or 22).
Report all other cumulative preferred stock included and
reported in Schedule HC, item 20, ‘‘Other liabilities’’ or
item 22, ‘‘Minority interest in consolidated subsidiaries
and similar items,’’ that is eligible for inclusion in Tier 1
capital. Include other cumulative preferred stock that is
eligible for inclusion in Tier 1 capital but is not included
in line item M3(b) above. Exclude instruments generally
known as trust preferred securities that are issued by
consolidated special purpose entities and reported in
Schedule HC, item 19(b). Also exclude notes payable to
unconsolidated special purpose entities that issue trust
preferred securities.
Line item M4 Offsetting debit to the liability (i.e.,
the contra account) for Employee Stock Ownership
Plan (ESOP) debt guaranteed by the reporting
bank holding company.
Report in this item the total dollar amount of the offsetting debit to the liability (i.e., the equity contra account)
for an Employee Stock Ownership Plan (ESOP) debt
implicitly or explicitly guaranteed by the reporting bank
holding company. This amount should be reduced as
the guaranteed debt is amortized. When an ESOP borrows
money and that debt is guaranteed by the employer bank
holding company, the obligation of the ESOP is to be
reported as a liability on the books of the employer (i.e.,
the reporting bank holding company). The offsetting
debit to that liability is to be reported in this item. As no
real expansion of equity has occurred, this offsetting
debit is to be reported by the reporting bank holding
company as a reduction of shareholders’ equity and,
for purposes of this report, included in Schedule HC,
item 27, ‘‘Other equity capital components,’’ as well as
being separately reported in this item.
Line item M5 Treasury stock (including offsetting
debit to the liability for ESOP debt).
Report the amount of treasury stock in the form of
perpetual preferred stock in memorandum item 5(a)
and in the form of common stock in memorandum
item 5(b). These amounts are also reported in Schedule HC, item 27, ‘‘Other equity capital components.’’ The
amounts reported in memorandum items 5(a) and 5(b)
should include the amount of the offsetting debit to the
Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

liability recorded by the reporting bank holding company
in connection with its ESOP’s debt (and reported separately in memorandum item 4 above). The offsetting
debit should be allocated based on what type of stock the
ESOP purchased with the proceeds of the borrowings.
For example, if the holding company’s ESOP uses the
proceeds of its borrowings to purchase the perpetual
preferred stock of the bank holding company or its
consolidated subsidiaries, then the amount of the offsetting debit to the liability recorded for that debt should
be included in memorandum item 5(a). If, however,
the holding company’s ESOP uses the proceeds of its
borrowings to purchase the common stock of the bank
holding company or its consolidated subsidiaries, then
the amount of the offsetting debit to the liability recorded
for that debt should reported in memorandum
item 5(b).
Line item M6 Market risk equivalent assets
attributable to specific risk.
NOTE: Memorandum item 6 is applicable only to bank
holding companies that are subject to the market risk
capital guidelines.
Report the amount of the bank holding company’s market risk equivalent assets attributable to specific risk,
included in Schedule HC-R, item 58, ‘‘Market risk
equivalent assets.’’ Specific risk refers to changes in the
market value of specific positions due to factors other
than broad market movements and includes event and
default risk. For further background information, bank
holding companies should refer to the discussion of
‘‘Bank holding companies that are subject to the market
risk capital guidelines’’ in the Risk-Weighted Assets
section of these instructions, the line item instructions for
Schedule HC-R, item 58, and the capital guidelines for
specific instructions on the calculation of the measure of
market risk.

Examples of determining the amount of
cumulative preferred stock and trust
preferred securities that qualify for
inclusion in Tier 1 capital.
The following examples are intended to assist respondents in determining the amount of cumulative preferred
FR Y-9C
Schedule HC-R

March 2007

stock and trust preferred securities7 that qualify for
inclusion in Tier 1 capital. While the Federal Reserve’s
press release of October 21, 1996 stated that the amount
of these instruments that a bank holding company may
include in Tier 1 capital is limited to ‘‘25 percent of
Tier 1,’’ the guiding principle is set for in the Capital
Guidelines which states that such instruments are limited
to 25% of ‘‘the sum of all core capital elements, including cumulative perpetual preferred stock.’’ For purposes
of determining this limitation, core capital elements
include (1) common stockholders’ equity, (2) qualifying
noncumulative perpetual preferred stock, (3) qualifying
cumulative perpetual preferred stock and (4) minority
interest. Each example uses the same assumptions, except
the cumulative preferred stock component of equity
capital is different in each example, thereby producing
different reporting results in line items 5 and 6 of
Schedule HC-R. The first example illustrates when both
components (cumulative preferred stock and trust preferred securities) are within the required limits of Tier 1
capital. The second example illustrates when both components are in excess of the limits, and deductions and
exclusions are required. The third example illustrates
when a portion of one component exceeds the limit
and requires an exclusion from Tier 1 capital. These
examples represent a sample, and not all scenarios, that
can occur in determining the qualifying amount of Tier 1
capital.
Example 1: Both components of cumulative preferred
stock and trust preferred securities are within the qualifying limit of Tier 1 capital.
Assumptions:
Assume a bank holding company has $100,000,000 in
total equity capital (reported in Schedule HC, item 28)
which includes cumulative preferred stock of $5,000,000,
and total net unrealized holding losses on availablefor-sale securities of $35,000,000. Included in the
$35,000,000 net unrealized losses on available-for-sale
securities are $55,000,000 in unrealized losses on
available-for-sale equity securities.

7. Throughout these examples, if the bank holding company does not
consolidate the special purpose entity issuing trust preferred securities,
then the term trust preferred securities refers to the amount of notes
payable to unconsolidated special purpose entities that issue trust preferred
securities, net of the bank holding companies investment in the special
purpose entity.

HC-R-35

Schedule HC-R

Also assume that minority interest of $3,000,000 is reported
on Schedule HC, item 22, and $7,000,000 of trust preferred
securities is reported in Schedule HC, item 19(b).
Based on these assumptions, items 1 though 4 on Schedule HC-R would be reported as follows:

Item 6(b): Qualifying trust preferred
securities

$7,000,000

Example 2: Both components of cumulative preferred
stock and trust preferred securities exceed the qualifying
limit of Tier 1 capital.

Item 1:
Item 2:

Total equity capital
$100,000,000
LESS: Net unrealized gains
(losses) on available- for-sale
securities
35,000,000 8
Item 3: LESS: Net unrealized loss on
available-for-sale equity
securities
(55,000,000)
Item 4: LESS: Accumulated net gains
(losses) on cash flow hedges
-0Subtotal through Schedule HC-R, item 4 $ 80,000,000

Assumptions:

Calculation to determine the amount of cumulative
preferred stock and trust preferred securities that
qualify for inclusion in Tier 1 capital:

Calculation to determine the amount of cumulative
preferred stock and trust preferred securities that
qualify for inclusion in Tier 1 capital:

Amount of equity capital, after
adjustments (subtotal through
Schedule HC-R, item 4, above)
$
LESS: Amount of cumulative preferred
stock included in total equity capital
ADD: Minority interest
Subtotal for limit calculation
$
Amount of cumulative preferred stock
and underlying trust preferred securities
that qualifies for inclusion in Tier 1
capital (1/3 of $78,000,000)
$

Amount of equity capital, after
adjustments (subtotal through
Schedule HC-R, item 4, above)

80,000,000
(5,000,000)
3,000,000
78,000,000

26,000,000

The qualifying amount of $26,000,000 is greater than the
sum of cumulative preferred stock ($5,000,000) and trust
preferred securities ($7,000,000). Therefore, the full
amount of cumulative preferred stock and trust preferred
securities is included in the Tier 1 capital calculation.
Line items 5, 6(a) and 6(b) of Schedule HC-R would be
reported as follows:
Item 5:

LESS: Nonqualifying perpetual preferred
stock
-0-

Item 6(a): Qualifying minority interests in
consolidated subsidiaries

$3,000,000

8. Because this amount represents a loss, it should be presented in
parentheses on Schedule HC-R. Mathematically, however, as shown in this
example, it is added back to item 1.

HC-R-36

In this example the assumptions are the same as example 1,
except the amount of cumulative preferred stock that is
included in total equity capital (reported in Schedule HC, item 28) is $50,000,000. The amounts reported in
items 1–4 of Schedule HC-R would be the same as reported
in example 1. However, the amounts reported in items 5 and
6(b) of Schedule HC-R will be different from example 1.
The calculation of the amounts reported in items 5, 6(a) and
6(b) of Schedule HC-R follows:

LESS: Amount of cumulative preferred
stock included in total equity capital

$ 80,000,000
(50,000,000)

ADD: Minority interest

3,000,000

Subtotal for qualifying limit

$ 33,000,000

Amount of cumulative preferred stock
and underlying trust preferred
securities that qualify for Tier 1
capital (1/3 of $33,000,000)

$ 11,000,000 9

The qualifying amount of cumulative preferred stock and
trust preferred securities is $11,000,000, which is less
than the sum of cumulative preferred stock ($50,000,000)
and trust preferred securities ($7,000,000). Only
$11,000,00 of the cumulative preferred stock is included
in Tier 1 capital. Therefore, $39,000,000 of cumulative
preferred stock must be deducted from Schedule HC-R in
item 5, and none of the trust preferred securities is
9. Stated differently, the aggregate amount of qualifying cumulative
preferred stock and trust preferred securities cannot exceed 25% of the sum
of all core capital elements, including qualifying cumulative preferred
stock. The calculation is:
Cumulative preferred & trust preferred stock limit =
.25($30,000,000 + $11,000,000 + 3,000,000)
Cumulative preferred & trust preferred stock limit = $11,000,000

Schedule HC-R

FR Y-9C
March 2007

Schedule HC-R

included in Tier 1 capital (Schedule HC-R, item 6(b)).
(However, the $39,000,000 of cumulative preferred stock
and the $7,000,000 of trust preferred securities that do
not qualify for inclusion in Tier 1 capital are eligible for
inclusion for Tier 2 capital, subject to the overall limits of
Tier 2 capital, and reported in Schedule HC-R, item 16).
Line items 5, 6(a) and 6(b) of Schedule HC-R would be
reported as follows:
Item 5:

LESS: Nonqualifying perpetual
preferred stock ($50,000,000
minus $11,000,000)
$39,000,000

Item 6(a): Qualifying minority interests
in consolidated subsidiaries $ 3,000,000 10
Item 6(b): Qualifying trust preferred
securities

-0-

Example 3: A portion of one component (trust preferred
securities) exceeds the qualifying limit of Tier 1 capital.
Assumptions:
In this example the assumptions are the same as examples
1 and 2, except the amount of cumulative preferred
stock that is included in total equity capital (reported in
Schedule HC, item 28) is $20,000,000. The amounts
reported in items 1–4 of Schedule HC-R would be the
same as reported in examples 1 and 2. However, the
amounts reported in items 5 and 6(b) of Schedule HC-R
will be different from the prior examples. This example
illustrates when all of the cumulative preferred stock
qualifies for inclusion in Tier 1 capital, but only a portion
of the trust preferred securities qualifies for inclusion in
Tier 1 capital. The calculation of the amounts reported in
items 5, 6(a) and 6(b) of Schedule HC-R follows:

LESS: Amount of cumulative preferred
stock included in total equity capital

(20,000,000)

ADD: Minority interest

3,000,000

Subtotal for qualifying limit

$ 63,000,000

Amount of cumulative preferred stock
and underlying trust preferred
securities that qualify for Tier 1
capital (1/3 of $63,000,000)

$ 21,000,000 11

The qualifying amount of cumulative preferred stock
and trust preferred securities is $21,000,000, which is less
than the sum of cumulative preferred stock ($20,000,000)
and trust preferred securities ($7,000,000). Therefore, all
of the $20,000,000 of cumulative preferred securities can
be included in Tier 1 capital but only $1,000,000 of trust
preferred securities that are reported in Schedule HC,
item 19(b)) qualify for inclusion in Tier 1 capital.
(However, the remaining $6,000,000 of trust preferred
securities that do not qualify for inclusion in Tier 1
capital is eligible for inclusion for Tier 2 capital, subject
to the overall limits of Tier 2 capital and reported in
Schedule HC-R, item 16). Line items 5, 6(a) and 6(b) of
Schedule HC-R would be reported as follows:
Item 5:

LESS: Nonqualifying perpetual
preferred stock

-0-

Item 6(a): Qualifying minority interests in
consolidated subsidiaries and
similar items
$ 3,000,000
Item 6(b): Qualifying trust preferred
securities

$ 1,000,000

Calculation to determine the amount of cumulative
preferred stock and trust preferred securities that
qualify for inclusion in Tier 1 capital:
Amount of equity capital, after
adjustments (subtotal through
Schedule HC-R, item 4, above)

$ 80,000,000

10. Excludes the trust preferred securities reported in Schedule HC,
item 19(b).

FR Y-9C
Schedule HC-R

March 2007

11. Stated differently, the aggregate amount of qualifying cumulative
preferred stock and trust preferred securities cannot exceed 25% of the sum
of all core capital elements, including qualifying cumulative preferred
stock. The calculation is:
Cumulative preferred & trust preferred stock limit =
.25 ($60,000,000 + $21,000,000 + 3,000,000)
Cumulative preferred & trust preferred stock limit = $21,000,000

HC-R-37

LINE ITEM INSTRUCTIONS FOR

Servicing, Securitization,
and Asset Sale Activities
Schedule HC-S

General Instructions
Schedule HC-S should be completed on a fully consolidated basis. Schedule HC-S includes information on
1–4 family residential mortgages and other financial
assets serviced for others (in Memorandum items 2(a),
2(b), and 2(c)). Schedule HC-S also includes information
on assets that have been securitized or sold and are not
reportable on the balance sheet (Schedule HC), except
for credit-enhancing interest-only strips (which are
reported in item 2(a) of this schedule), subordinated
securities and other enhancements (which are reported in
items 2(b), 2(c), and 9 and Memorandum items 3(a)(1)
and (2)), and seller’s interests (which are reported in
items 6(a) and 6(b)).

Column Instructions
Column A, 1–4 Family Residential Loans: 1–4 family residential loans are permanent closed-end loans
secured by first or junior liens on 1–to–4 family residential properties as defined for Schedule HC-C,
items 1(c)(2)(a) and 1(c)(2)(b).
Column B, Home Equity Lines: Home equity lines
are revolving, open-end lines of credit secured by1– to–4
family residential properties as defined for Schedule HC-C, item 1(c)(1).
Column C, Credit Card Receivables: Credit card
receivables are extensions of credit to individuals for
household, family, and other personal expenditures arising from credit cards as defined for Schedule HC-C,
item 6(a).
Column D, Auto Loans: Auto loans are loans to
individuals for the purpose of purchasing private passenger vehicles, including minivans, vans, sport-utility vehicles, pickup trucks, and similar light trucks for personal
use, and are a subset of ‘‘Other consumer loans,’’ as
defined for Schedule HC-C, item 6(c).
FR Y-9C
Schedule HC-S

March 2007

Column E, Other Consumer Loans: Other consumer
loans are loans to individuals for household, family,
and other personal expenditures as defined for Schedule HC-C, items 6(b) and 6(c), excluding auto loans as
described in Column D of this schedule.
Column F, Commercial and Industrial Loans: Commercial and industrial loans are loans for commercial and
industrial purposes to sole proprietorships, partnerships,
corporations, and other business enterprises, whether
secured (other than by real estate) or unsecured, singlepayment or installment, as defined for Schedule HC-C,
item 4.
Column G, All Other Loans, All Leases, and All Other
Assets: All other loans are loans that cannot properly
be reported in Columns A through F of this schedule as
defined for Schedule HC-C, items 1(a), 1(b), 1(d), 1(e), 2,
3, and 7 through 9. All leases are all lease financing
receivables as defined for Shedule HC-C, item 10. All
other assets are all assets other than loans and leases, e.g.,
securities.
For purposes of items 1 through 10 of Schedule HC-S on
bank securitization activities and other securitization
facilities, information about each separate securitization
should be included in only one of the seven columns of
this schedule. The appropriate column for a particular
securitization should be based on the predominant type of
loan included in the securitization and this column should
be used consistently over time. For example, a securitization may include auto loans to individuals and to business
enterprises. If these auto loans are predominantly loans to
individuals, all of the requested information about this
securitization should be included in Column D, Auto
Loans.

Definitions
For purposes of this schedule, the following definitions
of terms are applicable.
HC-S-1

Schedule HC-S

Recourse or other seller-provided credit enhancement
means an arrangement in which the reporting institution
retains, in form or in substance, any risk of credit loss
directly or indirectly associated with a transferred (sold)
asset that exceeds its pro rata claim on the asset. It
also includes a representation or warranty extended by
the reporting institution when it transfers an asset, or
assumed by the institution when it services a transferred
asset, that obligates the institution to absorb credit losses
on the transferred asset. Such an arrangement typically
exists when the institution transfers assets and agrees to
protect purchasers or some other party, e.g., investors in
securitized assets, from losses due to default by or
nonperformance of the obligor on the transferred assets
or some other party. The reporting institution provides
this protection by retaining:
(1) an interest in the transferred assets, e.g., creditenhancing interest-only strips, ‘‘spread’’ accounts,
subordinated interests or securities, collateral invested
amounts, and cash collateral accounts, that absorbs
losses, or
(2) an obligation to repurchase the transferred assets
in the event of a default of principal or interest on the
transferred assets or any other deficiency in the performance of the underlying obligor or some other party.

ties, e.g., by smoothing timing differences in the receipt
of interest and principal payments on the underlying
securitized assets, or to ensure investors of payments in
the event of market disruptions. Advances under such a
facility are typically reimbursed from subsequent collections by the securitization structure and are not subordinated to other claims on the cash flows from the
underlying assets and, therefore, should generally not be
construed to be a form of credit enhancement. However,
if the advances under such a facility are subordinated to
other claims on the cash flows, the facility should be
treated as a credit enhancement for purposes of this
schedule.
Seller’s interest means the reporting institution’s ownership interest in loans that have been securitized, except an
interest that is a form of recourse or other seller-provided
credit enhancement. Seller’s interests should be reported
on Schedule HC—Balance Sheet—as securities or as
loans depending on the form in which the interest is held.
However, seller’s interests differ from the securities
issued to investors by the securitization structure. The
principal amount of a seller’s interest is generally equal
to the total principal amount of the pool of assets
included in the securitization structure less the principal
amount of those assets attributable to investors, i.e., in
the form of securities issued to investors.

Credit-enhancing interest-only strip, as defined in the
regulatory capital standards, means an on-balance sheet
asset that, in form or in substance: (i) represents the
contractual right to receive some or all of the interest due
on transferred assets; and (ii) exposes the bank holding
company to credit risk directly or indirectly associated
with the transferred assets that exceeds a pro rata share of
the bank holding company’s claim on the assets, whether
through subordination provisions or other credit enhancement techniques. Credit-enhancing interest-only strips
include other similar ‘‘spread’’ assets and can be either
retained or purchased.

Line Item Instructions
Securitization Activities

Subordinated interests and subordinated securities
retained by the institution when it securitizes assets
expose the institution to more than its pro rata share of
loss and thus are considered a form of credit enhancement to the securitization structure.

(1) retaining the right to service these assets or

Liquidity facility means any arrangement, including servicer cash advances, in which the reporting institution is
obligated to provide funding to a securitization structure
to ensure investors of timely payments on issued securiHC-S-2

Line Item 1 Outstanding principal balance of
assets sold and securitized with servicing retained
or with recourse or other seller-provided credit
enhancements.
Report in the appropriate column the principal balance
outstanding as of the report date of loans and leases
which the reporting institution has sold and securitized
while:

(2) when servicing has not been retained, retaining
recourse or providing other seller-provided credit
enhancements to the securitization structure. Include
in column C the amount outstanding of any credit
card fees and finance charges that the reporting bank
holding company has securitized and sold in connection with its securitization and sale of credit card
receivable balances.
Schedule HC-S

FR Y-9C
March 2007

Schedule HC-S

Exclude the principal balance of loans underlying seller’s
interests owned by the reporting institution; report the
amount of seller’s interests in Schedule HC-S, item 6.
Also exclude small business obligations transferred with
recourse under Section 208 of the Riegle Community
Development and Regulatory Improvement Act of 1994,
which are to be reported in Schedule HC-S, memorandum item 1, below.
Do not report in this item the outstanding balance of 1–4
family residential mortgages sold to the Federal National
Mortgage Association (Fannie Mae) or the Federal Home
Loan Mortgage Corporation (Freddie Mac) that the
government-sponsored agency in turn securitizes. Report
1–4 family residential mortgages sold to Fannie Mae or
Freddie Mac with recourse or other seller-provided credit
enhancements in Schedule HC-S, item 11, column A, and
report the maximum credit exposure arising from the
enhancements in item 12, column A. If servicing has
been retained on the 1–4 family residential mortgages,
report the outstanding principal balance of the mortgages
in Schedule HC-S, Memorandum item 2(a) or 2(b)
depending on whether the servicing is performed with
or without recourse or other servicer-provided credit
enhancements. If the reporting institution has both retained
the servicing and provided credit enhancements, report
the principal balance of the 1–4 family residential mortgages in Schedule HC-S, item 11, column A, and in
Memorandum item 2(a).
Exclude securitizations that have been accounted for as
secured borrowings because the transactions do not meet
the criteria for sale accounting under generally accepted
accounting principles. The securitized loans and leases
should continue to be carried as assets on the reporting
institution’s balance sheet.
Line Item 2 Maximum amount of credit exposure
arising from recourse or other seller-provided credit
enhancements provided to structures reported in
item 1.
Report in the appropriate subitem the maximum contractual credit exposure remaining as of the report date under
recourse arrangements and other seller-provided credit
enhancements provided by the reporting institution to
securitization structures reported in Schedule HC-S,
item 1, above. Do not report as the remaining maximum
contractual exposure a reasonable estimate of the probable loss under the recourse arrangements or credit
enhancement provisions or the fair value of any liability
FR Y-9C
Schedule HC-S

March 2007

incurred under such provisions. Furthermore, do not
reduce the remaining maximum contractual exposure by
the amount of any associated recourse liability account.
Report exposure amounts gross rather than net of any tax
effects, e.g., any associated deferred tax liability.
Do not include unused portions of commitments that
function as liquidity facilities (report such unused commitments in Schedule HC-S, item 3).
Line Item 2(a)
strips.

Credit enhancing interest-only

Report in the appropriate column the carrying value of
credit-enhancing interest-only strips included as securities in Schedules HC-B, as other assets in Schedule HC-F, or as trading assets in Schedule HC, item 5,
that the reporting institution has retained as credit
enhancements in connection with the securitization structures reported in Schedule HC-S, item 1, above.
Line Item 2(b) Subordinated securities and other
residual interests.
Report in the appropriate column the carrying value of
subordinated securities and other residual interests carried as on-balance sheet assets that the reporting bank
holding company has retained in connection with the
securitization structures reported in Schedule HC-S,
item 1. Exclude retained credit-enhancing interest-only
strips, which are to be reported in Schedule HC-S item
2(a).
Line Item 2(c) Standby letters of credit and other
enhancements.
Report in the appropriate column the unused portion of
standby letters of credit and the maximum contractual
amount of recourse or other credit exposure not in the
form of an on-balance sheet asset that the reporting bank
holding company has provided or retained in connection
with the securitization structures reported in Schedule
HC-S, item 1.
Line Item 3 Reporting institution’s unused
commitments to provide liquidity to structures
reported in item 1.
Report in the appropriate column the unused portions of
commitments provided by the reporting institution to
thesecuritization structures reported in Schedule HC-S,
item 1, above that function as liquidity facilities.
HC-S-3

Schedule HC-S

Line Item 4
item 1.

Past due loan amounts included in

Report in the appropriate subitem the outstanding principal balance of loans and leases reported in Schedule HC-S, item 1, above that are 30 days or more past due
as of the report date. For purposes of determining whether
a loan or lease reported in item 1 above is past due, the
reporting criteria to be used are the same as those for
columns A and B of Schedule HC-N.
Line Item 4(a)

30–89 days past due.

Report in the appropriate column the outstanding principal balance of loans and leases reported in Schedule HC-S, item 1, above that are 30 to 89 days past due as
of the report date.
Line Item 4(b)

90 days or more past due.

Report in the appropriate column the outstanding principal balance of loans and leases reported in Schedule HC-S, item 1, above that are 90 days or more past due
as of the report date.
Line Item 5 Charge-offs and recoveries on assets
sold and securitized with servicing retained or with
recourse or other seller-provided credit
enhancements (calendar year-to-date).
Report in the appropriate subitem the amount of chargeoffs and recoveries during the calendar year to date on
loans and leases that have been sold and securitized in the
securitization structures reported in Schedule HC-S,
item 1. If a securitization is no longer outstanding as of
the report date, i.e., no amount is reported for the
securitization in Schedule HC-S, item 1, do not report
any year-to-date charge-offs and recoveries for the securitization in Schedule HC-S, items 5(a) and 5(b).
Line Item 5(a)

Charge-offs.

Report in the appropriate column the amount of loans and
leases that have been sold and securitized by the reporting institution in the securitization structures reported in
Schedule HC-S, item 1, above that have been charged off
or otherwise designated as losses by the trustees of the
securitizations, or other designated parties, during the
calendar year-to-date.
Include in column C charge-offs or reversals of uncollectible credit card fees and finance charges that had been
HC-S-4

capitalized into the credit card receivable balances that
have been securitized or sold.
Line Item 5(b)

Recoveries.

Report in the appropriate column the amount of recoveries of previously charged-off loans and leases in the
securitization structures reported in Schedule HC-S,
item 1, above during the calendar year-to-date.
Include in column C recoveries of previously charged-off
or reversed credit card fees and finance charges that had
been capitalized into the credit card receivable balances
that had been securitized and sold.
Line Item 6 Amount of ownership (or seller’s)
interests carried as securities or loans.
Report in the appropriate subitem the carrying value of
the reporting institution’s ownership (or seller’s) interests
associated with the securitization structures reported in
Schedule HC-S, item 1, above.
Line Item 6(a)

Securities (included in HC-B).

Report in the appropriate column the carrying value of
seller’s interests in the form of a security that are
included as available-for-sale or held-to-maturity securities in Schedule HC-B—Securities— or as trading securities in Schedule HC, item 5, ‘‘Trading assets.’’ A
seller’s interest is in the form of a security only if the
seller’s interest meets the definition of a security in FASB
Statement No. 115, ‘‘Accounting for Certain Investments
in Debt and Equity Securities.’’
Line Item 6(b)

Loans (included in HC-C).

Report in the appropriate column the carrying value of
seller’s interests not in the form of a security. Such
seller’s interests are to be reported as loans and included
in Schedule HC-C—Loans and Lease Financing
Receivables.
Line Item 7 Past due loan amounts included in
interests reported in item 6(a).
Report in the appropriate subitem the outstanding principal balance of loans underlying the reporting institution’s
seller’s interests reported in Schedule HC-S, item 6(a),
above that are 30 days or more past due as of the report
date. For purposes of determining whether a loan underlying the seller’s interests reported in item 6(a) is past
Schedule HC-S

FR Y-9C
March 2007

Schedule HC-S

due, the reporting criteria to be used are the same as those
for columns A and B of Schedule HC-N.
Line Item 7(a)

30–89 days past due.

Report in the appropriate column the outstanding principal balance of loans underlying the seller’s interests
reported in Schedule HC-S, item 6(a), above that are
30–89 days past due as of the report date.
Line Item 7(b)

90 days or more past due.

Report in the appropriate column the outstanding principal balance of loans underlying the seller’s interests
reported in Schedule HC-S, item 6(a), above that are 90
or more days past due as of the report date.
Line Item 8 Charge-offs and recoveries on loan
amounts included in interests reported in item 6(a)
(calendar year-to-date).
Report in the appropriate subitem the amount of chargeoffs and recoveries during the calendar year to date on
loans that had been underlying the seller’s interests
reported in Schedule HC-S, item 6(a), above.
Line Item 8(a)

Charge-offs.

Report in the appropriate column the amount of loans
that had been underlying the seller’s interests reported in
Schedule HC-S, item 6(a), above that have been charged
off or otherwise designated as losses by the trustees of the
securitizations, or other designated parties, during the
calendar year-to-date.
Include in column C the amount of credit card fees and
finance charges written off as uncollectible that were
attributable to the credit card receivables included in
ownership interests reported as securities in item 6(a),
column C.
Line Item 8(b)

Recoveries.

Report in the appropriate column the amount of recoveries of previously charged-off loans that had been underlying the seller’s interests reported in Schedule HC-S,
item 6(a), above during the calendar year-to-date.
Include in column C recoveries of previously charged-off
or reversed credit card fees and finance charges that had
been capitalized into the credit card receivable balances
that had been securitized and sold.
FR Y-9C
Schedule HC-S

March 2007

For Securitization Facilities Sponsored
By or Otherwise Established By Other
Institutions
Line Item 9 Maximum amount of credit exposure
arising from credit enhancements provided by the
reporting institution to other institutions’
securitization structures in the form of standby
letters of credit, purchased subordinated securities,
and other enhancements.
Report in the appropriate column the maximum contractual credit exposure remaining as of the report date under
credit enhancements provided by the reporting institution
to securitization structures sponsored by or otherwise
established by other institutions or entities, i.e., securitizations not reported in Schedule HC-S, item 1, above.
Report the unused portion of standby letters of credit, the
carrying value of purchased subordinated securities and
purchased credit-enhancing interest-only strips, and the
maximum contractual amount of credit exposure arising
from other on- and off-balance sheet credit enhancements
that provide credit support to these securitization structures. Do not report as the remaining maximum contractual exposure a reasonable estimate of the probable loss
under credit enhancement provisions or the fair value of
any liability incurred under such provisions. Furthermore, do not reduce the remaining maximum contractual
exposure by the amount of any associated recourse
liability account. Report exposure amounts gross rather
than net of any tax effects, e.g., any associated deferred
tax liability.
Exclude the amount of credit exposure arising from
loans and leases that the reporting institution has sold
with recourse or other seller-provided credit enhancements to other institutions or entities, which then securitized the loans and leases purchased from the reporting
institution (report this exposure in Schedule HC-S,
item 12, below). Also exclude the amount of credit
exposure arising from credit enhancements provided to
asset-backed commercial paper conduits (report this
exposure in Schedule HC-S, Memorandum item 3(a)).
Line Item 10 Reporting institution’s unused
commitments to provide liquidity to other
institutions’ securitization structures.
Report in the appropriate column the unused portions of
commitments provided by the reporting bank that function as liquidity facilities to securitization structures
HC-S-5

Schedule HC-S

sponsored by or otherwise established by other institutions or entities, i.e., securitizations not reported in
Schedule HC-S, item 1, above. Exclude the amount of
unused commitments to provide liquidity to asset-backed
commercial paper conduits (report this amount in Schedule HC-S, Memorandum item 3(b)).

Asset Sales
Line Item 11 Assets sold with recourse or other
seller-provided credit enhancements and not
securitized.
Report in the appropriate column the unpaid principal
balance as of the report date of loans and leases, which
the reporting institution has sold with recourse or other
seller-provided credit enhancements, but which were not
securitized by the reporting institution. Include loans
and leases that the reporting institution has sold with
recourse or other seller-provided credit enhancements to
other institutions or entities, whether or not the purchaser
has securitized the loans and leases purchased from the
reporting institution. Include 1−4 family residential
mortgages that the reporting institution has sold to the
Federal National Mortgage Association (Fannie Mae) or
the Federal Home Loan Mortgage Corporation (Freddie
Mac) with recourse or other seller-provided credit
enhancements.
Exclude small business obligations transferred with
recourse under Section 208 of the Riegle Community
Development and Regulatory Improvement Act of 1994,
which are to be reported in Schedule HC-S, Memorandum item 1, below.
Line Item 12 Maximum amount of credit exposure
arising from recourse or other seller-provided credit
enhancements provided to assets reported in
item 11.
Report in the appropriate column the maximum contractual credit exposure remaining as of the report date under
recourse arrangements or other seller-provided credit
enhancements provided by the reporting institution in
connection with its sales of the loans and leases reported
in Schedule HC-S, item 11, above. Report the unused
portion of standby letters of credit, the carrying value of
retained interests, and the maximum contractual amount
of recourse or other credit exposure arising from other
on- and off-balance sheet credit enhancements that the
reporting institution has provided. Do not report as the
HC-S-6

remaining maximum contractual exposure a reasonable
estimate of the probable loss under the recourse arrangements or credit enhancement provisions or the fair value
of any liability incurred under such provisions. Furthermore, do not reduce the remaining maximum contractual
exposure by the amount of any associated recourse
liability account. Report exposure amounts gross rather
than net of any tax effects, e.g., any associated deferred
tax liability.

Memoranda
Line Item M1 Small business obligations
transferred with recourse under Section 208 of the
Riegle Community Development and Regulatory
Improvement Act of 1994.
Report in the appropriate subitem the outstanding principal balance of and recourse exposure on small business
loans and leases on personal property (small business
obligations) which the reporting institution has transferred with recourse during the time the institution was a
‘‘qualifying institution’’ and did not exceed the retained
recourse limit set forth in banking agency regulations
implementing Section 208. Transfers of small business
obligations with recourse that were consummated during
such a time should be reported as sales for FR Y-9C
reporting purposes if the transactions are treated as sales
under generally accepted accounting principles (GAAP)
and the institution establishes a recourse liability account
that is sufficient under GAAP.
Line Item M1(a)

Outstanding principal balance.

Report the principal balance outstanding as of the report
date for small business obligations which the reporting
institution has transferred with recourse while it was a
‘‘qualifying institution’’ and did not exceed the retained
recourse limit.
Line Item M1(b) Amount of retained recourse on
these obligations as of the report date.
Report the maximum contractual amount of recourse the
reporting institution has retained on the small business
obligations whose outstanding principal balance was
reported in Schedule HC-S, Memorandum item 1(a),
above, not a reasonable estimate of the probable loss
under the recourse provision and not the fair value of the
liability incurred under this provision. Furthermore, the
remaining maximum contractual exposure should not be
Schedule HC-S

FR Y-9C
March 2007

Schedule HC-S

reduced by the amount of any associated recourse liability account. The amount of recourse exposure to be
reported should not include interest payments the reporting institution has advanced on delinquent obligations.
For small business obligations transferred with full
(unlimited) recourse, the amount of recourse exposure to
be reported is the outstanding principal balance of the
obligations as of the report date. For small business
obligations transferred with limited recourse, the amount
of recourse exposure to be reported is the maximum
amount of principal the transferring institution would be
obligated to pay the holder of the obligations in the event
the entire outstanding principal balance of the obligations
transferred becomes uncollectible.

the Federal National Mortgage Association, serviced
with recourse for the Federal Home Loan Mortgage
Corporation, and serviced with recourse under other
servicing contracts.

Line Item M2 Outstanding principal balance of
assets serviced for others.

Line Item M2(c)

Report in the appropriate subitem the outstanding principal balance of loans and other financial assets the reporting institution services for others, regardless of whether
the servicing involves whole loans and other financial
assets or only portions thereof, as is typically the case
with loan participations. Include (1) the principal balance
of loans and other financial assets owned by others for
which the reporting institution has purchased the servicing (i.e., purchased servicing) and (2) the principal
balance of loans and other financial assets that the
reporting institution has either originated or purchased
and subsequently sold, whether or not securitized, but for
which it has retained the servicing duties and responsibilities (i.e., retained servicing). If the reporting institution services a portion of a loan or other financial asset
for one or more other parties and owns the remaining
portion of the loan or other financial asset, report only the
principal balance of the portion of the asset serviced for
others.
Line Item M2(a) Closed-end 1–4 family residential
mortgages serviced with recourse or other
servicer-provided credit enhancements.
Report the outstanding principal balance of closed-end
1-to-4 family residential mortgage loans (as defined for
Schedule HC-C, item 1(c)(2)) that the reporting institution services for others under servicing arrangements in
which the reporting institution also provides recourse
or other servicer-provided credit enhancements. Include
closed-end 1–to–4 family residential mortgages serviced
under regular option contracts (i.e., with recourse) with
FR Y-9C
Schedule HC-S

March 2007

Line Item M2(b) Closed-end 1–4 family residential
mortgages serviced with no recourse or other
servicer-provided credit enhancements.
Report the outstanding principal balance of closed-end
1-to-4 family residential mortgage loans (as defined for
Shedule HC-C, item 1(c)(2)) that the reporting institution
services for others under servicing arrangements in which
the reporting institution does not provide recourse or
other servicer-provided credit enhancements.
Other financial assets.

Memorandum item 2(c) is to be completed if the principal
balance of loans and other financial assets serviced for
others is more than $10 million. Report the outstanding
principal balance of loans and other financial assets,
other than closed-end 1-to-4 family residential mortgage
loans, that the reporting institution services for others.
These serviced financial assets may include, but are not
limited to, home equity lines, credit cards, automobile
loans, and loans guaranteed by the Small Business
Administration.
Line Item M3
conduits:

Asset-backed commercial paper

Report the requested information on credit enhancements
and liquidity facilities provided to asset-backed commercial paper conduits in memorandum items 3(a) and 3(b),
respectively, regardless of whether the reporting bank
holding company must consolidate the conduit for reporting purposes in accordance with FASB Interpretation No.
46 (Revised).
Line Item M3(a) Maximum amount of credit
exposure arising from credit enhancements
provided to conduit structures in the form of
standby letters of credit, subordinated securities,
and other enhancements.
Report in the appropriate subitem the maximum contractual credit exposure remaining as of the report date under
standby letters of credit, subordinated securities, and
other credit enhancements provided by the reporting
institution to asset-backed commercial paper conduit
structures. Do not report in these subitems a reasonable
HC-S-7

Schedule HC-S

estimate of the probable loss under the credit enhancement provisions or the fair value of any liability incurred
under such provisions.
Line Item M3(a)(1) Conduits sponsored by the bank,
a bank affiliate, or the bank holding company.
Report the unused portion of standby letters of credit, the
carrying value of subordinated securities, and the maximum contractual amount of credit exposure arising from
other credit enhancements that the reporting institution
has provided to asset-backed commercial paper conduit
structures sponsored by the reporting institution’s bank(s),
an affiliate of the bank or bank holding company, or the
reporting bank holding company.

to asset-backed commercial paper conduit structures
sponsored by the reporting institution’s bank(s), an affiliate of the bank or bank holding company, or the reporting
bank holding company.
Line Item M3(b)(2) Conduits sponsored by other
unrelated institutions.
Report the unused portions of commitments provided by
the reporting institution that function as liquidity facilities to asset-backed commercial paper conduit structures
other than those sponsored by the reporting institution’s
bank(s), an affiliate of the bank or bank holding company,
or the reporting bank holding company.

Line Item M3(a)(2) Conduits sponsored by other
unrelated institutions.

Line Item M4 Outstanding credit card fees and
finance charges.

Report the unused portion of standby letters of credit, the
carrying value of subordinated securities, and the maximum contractual amount of credit exposure arising from
other credit enhancements that the reporting institution
has provided to asset-backed commercial paper conduit
structures other than those sponsored by the reporting
institution’s bank(s), an affiliate of the bank or bank holding company, or the reporting bank holding company.

This item is to be completed by (1) bank holding companies that, together with affiliated institutions, have outstanding credit card receivables that exceed $500 million
as of the report date or (2) bank holding companies that
on a consolidated basis are credit card specialty holding
companies.

Line Item M3(b) Unused commitments to provide
liquidity to conduit structures.
Report in the appropriate subitem the unused portions of
commitments provided by the reporting institution that
function as liquidity facilities to asset-backed commercial paper conduit structures. Typically, these facilities
take the form of a Backstop Line (Loan Agreement) or an
Asset Purchase Agreement. Under a backstop line, the
reporting institution advances funds to the conduit when
a draw is required under the liquidity facility. The
advance is secured by the cash flow of the underlying
asset pools. Under an asset purchase agreement, the
reporting institution purchases a specific pool of assets
from the conduit when a draw is required under the
liquidity facility. Typically, the reporting institution is
repaid from the cash flow on the purchased assets or from
the sale of the purchased pool of assets.
Line Item M3(b)(1) Conduits sponsored by the
bank, a bank affiliate, or the bank holding company.
Report the unused portions of commitments provided by
the reporting institution that function as liquidity facilities
HC-S-8

Outstanding credit card receivables are the sum of:
(a) Schedule HC-C, item 6(a), column A;
(b) Schedule HC-S, item 1, column C; and
(c) Schedule HC-S, item 6(a), column C.
Credit card specialty bank holding companies are defined
as those bank holding companies that on a consolidated
basis exceed 50 percent for the following two criteria:
(a) the sum of credit card loans (Schedule HC-C,
item 6(a), column A) plus securitized and sold
credit card receivables (Schedule HC-S, item 1,
column C) divided by the sum of total loans
(Schedule HC-C, item 12, column A) plus securitized and sold credit card receivables (Schedule
HC-S, item 1, column C); and
(b) the sum of total loans (Schedule HC-C, item 12,
column A) plus securitized and sold credit card
receivables (Schedule HC-S, item 1, column C)
divided by the sum of total assets (Schedule HC,
item 12) plus securitized and sold credit card
receivables (Schedule HC-S, item 1, column C).
Report the amount outstanding of credit card fees and
finance charges that the bank holding company has
Schedule HC-S

FR Y-9C
March 2007

Schedule HC-S

securitized and sold in connection with its securitization
and sale of the credit card receivables reported in Schedule HC-S, item 1, column C.

FR Y-9C
Schedule HC-S

March 2007

HC-S-9

LINE ITEM INSTRUCTIONS FOR

Notes to the Balance Sheet
Predecessor Financial Items

General Instructions
This one-time reporting schedule is event-driven. An
event for reporting the average balance sheet items below
is defined as a business combination that occurred during
the quarter (that is, the BHC consummated a merger or
acquisition within the quarter). Complete this schedule
only if the combined assets of the acquired entity(ies) are
at least equal to $10 billion or 5 percent of the reporting
bank holding company’s total consolidated assets at the
previous quarter-end, whichever is less.
Report in accordance with these instructions the selected
quarterly average information for any acquired company(ies), the predecessor, as described above. For the
items on this schedule, report the average of the balances
as of the close of business for each day for the calendar
quarter up to the date of acquisition or an average of the
balances as of the close of business on each Wednesday
during the calendar quarter up to date of acquisition. For
days that the acquired company or any of its consolidated
subsidiaries were closed (e.g., Saturdays, Sundays, or
holidays), use the amount outstanding from the previous
business day. An office is considered closed if there are
no transactions posted to the general ledger as of that
date.
Only a single schedule should be completed with aggregated information for all entities acquired during the
quarter. The combined assets of these firms should at
least equal $10 billion or 5 percent of the respondent’s
total consolidated assets at the previous quarter-end,
whichever is less.
The reporting BHC may report the items below, net of
merger-related adjustments, if any.
In the unlikely event that only a portion of a firm was
purchased and actual financial statements for the acquired
operations are not readily available, the reporting BHC
may provide estimates in lieu of inaccessible actual data.
FR Y-9C
Notes to the Balance Sheet—Predecessor Financial Items

March 2007

If a single transaction business combination occurred
where the acquiree was another BHC that filed the
FR Y-9C in the preceding quarter, and the combination
occurred on the first day of the quarter, that event is
exempt from being reported on this schedule. This
exemption also applies if all entities acquired on the first
day of the quarter were FR Y-9C filers as of the prior
quarter.
The line item instructions should be read in conjunction
with the instructions for Schedule HC-K, ‘‘Quarterly
Averages.’’
Line Item 1 Average loans and leases (net of
unearned income).
Report the quarterly average for all loans and leases, net
of unearned income, in both domestic and foreign offices
of the acquired company (as defined for Schedule HC-C,
items 1 through 11).
Line Item 2

Average earning assets.

Report the quarterly average for all earning assets.
Include as earning assets:
(1) Securities;
(2) Federal funds sold and securities purchased under
agreements to resell;
(3) Loans and leases;
(4) Trading assets; and
(5) Other earning assets.
Line Item 3

Average total consolidated assets.

Report the quarterly average for the fully consolidated
acquired company’s total assets (as defined for Schedule
HC, item 12, ‘‘Total assets’’). When calculating the
quarterly average total consolidated assets for purposes
of this schedule, reflect all debt securities (not held for
BSnotes-P-1

Notes to the Balance Sheet—Predecessor Financial Items

trading) at amortized cost, available-for-sale equity securities with readily determinable fair values at the lower of
cost or fair value, and equity securities without readily
determinable fair values at historical cost. In addition, to
the extent that net deferred tax assets included in the
acquired company’s total assets, if any, include the
deferred tax effects of any unrealized holding gains and
losses on available-for-sale debt securities, these deferred
tax effects may be excluded from the determination of the
quarterly average for total consolidated assets. If these
deferred tax effects are excluded, this treatment must be
followed consistently over time.

BSnotes-P-2

Line Item 4 Average equity capital (excludes
limited-life preferred stock).
Report the quarterly average for the fully consolidated
equity capital (as defined for Schedule HC, item 28) of
the acquired company. For purposes of this schedule,
deduct net unrealized losses on marketable equity securities and exclude other net unrealized gains and losses on
available-for-sale securities, and accumulated net gains
(losses) on cash flow hedges when calculating average
equity capital.

Notes to the Balance Sheet—Predecessor Financial Items

FR Y-9C
March 2007

LINE ITEM INSTRUCTIONS FOR

Notes to the Balance Sheet
Other

This section has been provided to allow bank holding companies that so wish
to explain the content of specific items in the balance sheet. The reporting bank
holding company should include any transactions reported on Schedules HC
through HC-S that it wishes to explain or that have been separately disclosed
in the bank holding company’s quarterly reports to its shareholders, in its press
releases, or on its quarterly reports to the Securities and Exchange Commission
(SEC). Also include any transactions which previously would have appeared as
footnotes to Schedules HC through HC-S.
Report in the space provided the schedule and line item for which the holding
company is specifying additional information, a description of the transaction
and, in the column provided, the dollar amount associated with the transaction
being disclosed.

FR Y-9C
Notes to the Balance Sheet—Other

March 2007

BSnotes-1

Glossary

The definitions in this Glossary apply to the Consolidated
Financial Statements for Bank Holding Companies (FR Y9C) and are not necessarily applicable for other regulatory or legal purposes. The presentation of the assets,
liabilities, and stockholders’ equity, and the recognition
of income and expenses in the FR Y-9C are to be in
accordance with generally accepted accounting principles. The accounting discussions in this Glossary are
those relevant to the preparation of these reports and are
not intended to constitute a comprehensive presentation
on bank accounting or on generally accepted accounting
principles.
Acceptances: See ‘‘Bankers’ acceptances.’’
Accounting Changes: Changes in accounting principles—The accounting principles that bank holding companies have adopted for the preparation of their FR Y-9C
should be changed only in the direction of more preferable accounting practices in accordance with GAAP. If a
bank holding company changes from the use of one
acceptable accounting principle to one that is more
preferable at any time during the calendar year, it must
report the income or expense item(s) affected by the
change for the entire year on the basis of the newly
adopted accounting principle regardless of the date when
the change is actually made. However, a change from an
accounting principle that is neither accepted nor sanctioned by the Federal Reserve to one that is acceptable to
the Federal Reserve is to be reported as a correction of an
error as discussed below.
Most changes in accounting principles give rise to a
cumulative adjustment that will affect the net income of
the year in which the change is made. The cumulative
effect of such changes in accounting principles, computed as described below, and the income tax effect of
such changes are to be reported in Schedule HI, item 12,
‘‘Extraordinary items, net of applicable income taxes and
minority interest.’’ Examples of this type of change in
FR Y-9C
Glossary March 2007

accounting principle include (1) the adoption of the
interest method or the sum of the digits method of
recognizing income on installment loans in preference to
the straight line, pro rata method and (2) the adoption of
an accelerated method of depreciation for premises and
fixed assets in preference to the straight line method.
The cumulative effect of a change in accounting principle
is the difference between (1) the balance in the retained
earnings account at the beginning of the year in which the
change is made, and (2) the balance in the retained
earnings account which would have been reported at the
beginning of the year in which the change is made had
the newly adopted accounting principle actually been
applied in all prior periods, net of the income tax effect.
New accounting standards that are adopted by the Financial Accounting Standards Board (or other such organizations officially designated to establish accounting
principles) often apply retroactively and may require or
allow a bank holding company to restate prior years’
financial statements prepared in accordance with generally accepted accounting principles. However, the
FR Y-9C does not present financial statements on a comparative basis (i.e., year-to-year) and, therefore, does not
lend itself to retroactive restatement. As a consequence,
if restatement is required by the new accounting standard, or if restatement is at the bank holding company’s
option and it chooses to restate, the effect of the retroactive application of the new standard on the amount of
retained earnings at the beginning of the year in which
the new standard is first adopted for purposes of the
FR Y-9C (net of applicable income taxes, if any) is to be
excluded from net income and reported as a direct
adjustment to equity capital in Schedule HI-A, item 2. On
the other hand, if a new standard must be applied retroactively but restatement is not allowed, the effect of the
retroactive application on retained earnings at the beginning of the year in which the new standard is first adopted
for purposes of the FR Y-9C is to be included in net
GL-1

Glossary

income like the cumulative effect of a change in accounting principles described above. The amount of this effect
(net of applicable income taxes, if any) is to be reported
in Schedule HI, item 12.
Some new accounting standards are to be applied prospectively but permit retroactive application through the
restatements of amounts reported in prior years’ financial statements prepared in accordance with generally
accepted accounting principles. In such situations, if a
bank holding company elects to retroactively apply a new
standard, the effect of the retroactive application of the
new standard on the amount of retained earnings at the
beginning of the year in which the new standard is first
adopted for purposes of the FR Y-9C (net of applicable
income taxes, if any) is to be excluded from net income
and reported as a direct adjustment to equity capital in
Schedule HI-A, item 2.
Changes in accounting estimates—Accounting and the
preparation of financial statements involve the use of
estimates. As more current information becomes known,
estimates may be changed. In particular, accruals are
derived from estimates based on judgments about the
outcome of future events and changes in these estimates
are an inherent part of accrual accounting.
Reasonable changes in accounting estimates do not
require the restatement of amounts of income and
expenses and assets, liabilities, and capital reported in
previously submitted FR Y-9Cs. Computation of the
cumulative effect of these changes is also not ordinarily
necessary. Rather, the effect of such changes is handled
on a prospective basis. That is, beginning in the period
when an accounting estimate is revised, the related item
of income or expense for that period is adjusted accordingly. For example, if the bank holding company’s
estimate of the remaining useful life of certain equipment
is increased, the remaining undepreciated cost of the
equipment would be spread over its revised remaining
useful life. Similarly, immaterial accrual adjustments to
items of income and expenses, including provisions for
loan and lease losses and income taxes, are considered
changes in accounting estimates and would be taken into
account by adjusting the affected income and expense
accounts for the year in which the adjustments were
found to be appropriate.
However, large and unusual changes in accounting estimates may be more properly treated as constituting
GL-2

accounting errors, and if so, must be reported accordingly
as described below.
Corrections of accounting errors—A bank holding company may become aware of an error in its FR Y-9C after
it has been submitted to the appropriate Federal Reserve
bank through either its own or the Reserve Bank’s
discovery of the error. An error in a report for a prior
period may result from:
(1) a mathematical mistake;
(2) a mistake in applying accounting principles; or
(3) the improper use of information that existed when the
FR Y-9C for prior periods were prepared.
When a material error of one of these types is discovered
in a FR Y-9C, the bank holding company may be directed
to file amended reports for each prior period that was
significantly affected by the error. Normally, such refilings will not be retroactively required for a period
exceeding five years. If amended reports are not required,
the bank holding company should report the effect of
such corrections on retained earnings at the beginning
of the year, net of applicable income taxes, in Schedule HI-A, item 2, ‘‘Restatements due to corrections of
material accounting errors and changes in accounting
principles.’’ The effect of such corrections on income and
expenses since the beginning of the year in which the
error is discovered should be reflected in each affected
income and expense account on a year-to-date basis in
the next quarterly Consolidated Income Statement (Schedule HI) to be filed and not as a direct adjustment to
retained earnings.
In addition, a change from an accounting principle that is
neither accepted nor sanctioned by bank holding company supervisor to one that is acceptable to supervisors is
to be reported as a correction of an error. In these cases
amended reports may be required. When such a change is
implemented, the cumulative effect that applies to prior
periods, calculated in the same manner as described
above for other changes in accounting principles, should
be reported in Schedule HI-A, item 2, ‘‘Restatements due
to corrections of material accounting errors and changes
in accounting principles.’’
For further information on these three topics, see APB
Opinion No. 20, Accounting Changes, as amended.
Accounting Errors, Corrections of: See ‘‘Accounting
changes.’’
Glossary

FR Y-9C
March 2007

Glossary

Accounting Estimates, Changes in: See ‘‘Accounting
changes.’’
Accounting Principles, Changes in: See ‘‘Accounting
changes.’’
Accrued Interest Receivable Related to Credit Card
Securitizations: In a typical credit card securitization, an
institution transfers a pool of receivables and the right to
receive the future collections of principal (credit card
purchases and cash advances), finance charges, and fees
on the receivables to a trust. If a securitization transaction
qualifies as a sale under FASB Statement No. 140, the
selling institution removes the receivables that were sold
from its reported assets and continues to carry any
retained interests in the transferred receivables on its
balance sheet. The ‘‘accrued interest receivable’’ (AIR)
asset typically consists of the seller’s retained interest in
the investor’s portion of (1) the accrued fees and finance
charges that have been billed to customer accounts, but
have not yet been collected (‘‘billed but uncollected’’),
and (2) the right to finance charges that have been
accrued on cardholder accounts, but have not yet been
billed (‘‘accrued but unbilled’’).
While the selling institution retains a right to the excess
cash flows generated from the fees and finance charges
collected on the transferred receivables, the institution
generally subordinates its right to these cash flows to the
investors in the securitization. If and when cash payments on the accrued fees and finance charges are
collected, they flow through the trust, where they are
available to satisfy more senior obligations before any
excess amount is remitted to the seller. Only after trust
expenses (such as servicing fees, investor certificate
interest, and investor principal charge-offs) have been
paid will the trustee distribute any excess fee and finance
charge cash flow back to the seller. Since investors are
paid from these cash collections before the selling institution receives the amount of AIR that is due, the seller
may or may not realize the full amount of its AIR asset.
Accounting at Inception of the Securitization Transaction
Generally, if a securitization transaction meets the criteria for sale treatment and the AIR is subordinated either
because the asset has been isolated from the transferor
(see paragraph 9(a) of FASB Statement No. 140) or
because of the operation of the cash flow distribution (or
‘‘waterfall’’) through the securitization trust, the total
AIR asset (both the “billed and uncollected” and ‘‘accrued
and unbilled’’) should be considered one of the compoFR Y-9C
Glossary March 2007

nents of the sale transaction. Thus, when accounting for a
credit card securitization, an institution should allocate
the previous carrying amount of the AIR (net of any
related allowance for uncollectible amounts) and the
other transferred assets between the assets that are sold
and the retained interests, based on their relative fair
values at the date of transfer. As a result, after a
securitization, the allocated carrying amount of the AIR
asset will typically be lower than its face amount.
Subsequent Accounting
After securitization, the AIR asset should be accounted
for at its allocated cost basis (as discussed above). In
addition, an institution should treat the AIR asset as a
retained (subordinated) beneficial interest. Accordingly,
it should be reported as an ‘‘Other Asset’’ in Schedule
HC-F, item 6, and in Schedule HC-S, item 2(b), column
C (if reported as a stand-alone asset) and not as a loan
receivable.
Although the AIR asset is a retained beneficial interest in
transferred assets, it is not required to be subsequently
measured like an investment in debt securities classified
as available for sale or trading under FASB Statements
Nos. 115 and 140 because the AIR asset cannot be
contractually prepaid or settled in such a way that the
holder would not recover substantially all of its recorded
investment. Rather, institutions should follow existing
applicable accounting standards, including FASB Statement No. 5, Accounting for Contingencies, in subsequent
accounting for the AIR asset. Statement No. 5 addresses
the accounting for various loss contingencies, including
the collectibility of receivables.
For further guidance, bank holding companies should
refer to the Interagency Advisory on the Accounting
Treatment of Accrued Interest Receivable Related to
Credit Card Securitizations dated December 4, 2002. See
also the Glossary entry for ‘‘Transfers of Financial
Assets.’’
Acquisition, Development, or Construction (ADC)
Arrangements: An ADC arrangement is an arrangement
in which a bank holding company or its consolidated
subsidiaries provide financing for real estate acquisition,
development, or construction purposes and participates
in the expected residual profit resulting from the ultimate
sale or other use of the property. ADC arrangements
should be reported as loans, real estate joint ventures, or
direct investments in real estate in accordance with
guidance presented by the American Institute of Certified
GL-3

Glossary

Public Accountants in a Notice to Practitioners issued in
February 1986 (or, if appropriate, in notices issued in
November 1983 and November 1984).’’
Agreement Corporation: See ‘‘Edge and Agreement
corporation.’’
Allowance for Loan and Lease Losses: Each bank
holding company must maintain an allowance for loan
and lease losses (allowance) that is adequate to absorb
estimated credit losses associated with its loan and lease
portfolio, i.e., loans and leases that the bank holding
company has intent and ability to hold for the foreseeable
future or until maturity or payoff. Each bank holding
company should also maintain, as a separate liability
account, an allowance sufficient to absorb estimated
credit losses associated with off-balance sheet credit
instruments such as off-balance sheet loan commitments,
standby letters of credit, and guarantees. This separate
allowance should be reported in Schedule HC-G, item 3,
‘‘Allowance for credit losses on off-balance sheet credit
exposures,’’ not as part of the ‘‘Allowance for loan and
lease losses’’ in Schedule HC, item 4(c).
The term ‘‘estimated credit losses’’ means an estimate of
the current amount of the loan and lease portfolio (net
of unearned income) that is not likely to be collected; that
is, net charge-offs that are likely to be realized for a loan
or pool of loans given facts and circumstances as of the
evaluation date. These estimated credit losses should
meet the criteria for accrual of a loss contingency (i.e.,
a provision to the allowance) set forth in generally
accepted accounting principles (GAAP).
As of the end of each quarter, or more frequently if
warranted, the management of each bank holding company must evaluate the collectibility of the loan and lease
portfolio, including any recorded accrued and unpaid
interest (i.e., not already reversed or charged off), and
make appropriate entries to maintain the balance of the
allowance for loan and lease losses on the balance sheet
at a level adequate to absorb estimated credit losses.
Management must maintain reasonable records in support of their evaluations and entries. Furthermore, each
bank holding company is responsible for ensuring that
controls are in place to consistently determine the allowance for loan and lease losses in accordance with GAAP
(including FASB Statement No. 5, ‘‘Accounting for
Contingencies,’’ and FASB Statement No. 114, ‘‘Accounting by Creditors for Impairment of a Loan’’), the bank
GL-4

holding company’s stated policies and procedures, and
relevant supervisory guidance.
Additions to, or reductions of, the allowance account
resulting from such evaluations are to be made through
charges or credits to the ‘‘provision for loan and lease
losses’’ (provision) in the Consolidated Statement of
Income. When available information confirms that specific loans and leases, or portions thereof, are uncollectible, these amounts should be promptly charged off
against the allowance. All charge-offs of loans and leases
shall be charged directly to the allowance. Under no
circumstances can loan or lease losses be charged directly
to ‘‘Retained earnings.’’ Recoveries on loans and leases
represent collections on amounts that were previously
charged off against the allowance. Recoveries shall be
credited to the allowance, provided, however, that the
total amount credited to the allowance as recoveries on
an individual loan (which may include amounts representing principal, interest, and fees) is limited to the
amount previously charged off against the allowance on
that loan. Any amounts collected in excess of this limit
should be recognized as income.
AICPA Statement of Position 03-3, ‘‘Accounting for
Certain Loans or Debt Securities Acquired in a Transfer,’’ prohibits a bank holding company from ‘‘carrying
over’’ or creating loan loss allowances in the initial
accounting for ‘‘purchased impaired loans,’’ i.e., loans
that a bank holding company has purchased where there
is evidence of deterioration of credit quality since the
origination of the loan and it is probable, at the purchase
date, that the bank holding company will be unable to
collect all contractually required payments receivable.
This prohibition applies to the purchase of an individual
impaired loan, a pool or group of impaired loans, and
impaired loans acquired in a purchase business combination. However, if, upon evaluation subsequent to acquisition, based on current information and events, it is
probable that the bank holding company is unable to
collect all cash flows expected at acquisition (plus additional cash flows expected to be collected arising from
changes in estimate after acquisition) on a purchased
impaired loan (not accounted for as a debt security), the
loan should be considered impaired for purposes of
establishing an allowance pursuant to FASB Statement
No. 5 or No. 114, as appropriate.
When a bank holding company makes a full or partial
direct write-down of a loan or lease that is uncollectible,
Glossary

FR Y-9C
March 2007

Glossary

the bank holding company establishes a new cost basis
for the asset. Consequently, once the new cost basis has
been established for a loan or lease through a direct
write-down, this cost basis may not be ‘‘written up’’ at
a later date. Reversing the previous write-down and
‘‘re-booking’’ the charged-off asset after the bank holding company concludes that the prospects for recovering the charge-off have improved, regardless of whether
the bank holding company assigns a new account number
to the asset or the borrower signs a new note, is not an
acceptable accounting practice.
The allowance account must never have a debit balance.
If losses charged off exceed the amount of the allowance,
a provision sufficient to restore the allowance to an adequate level must be charged to expense on the income
statement immediately. A bank holding company shall
not increase the allowance account by transferring an
amount from retained earnings or any segregation thereof
to the allowance for loan and lease losses.
To the extent that a bank holding company’s reserve for
bad debts for tax purposes is greater than or less than its
‘‘allowance for loan and lease losses’’ on the balance
sheet, the difference is referred to as a temporary difference. See the Glossary entry for ‘‘income taxes’’ for
guidance on how to report the tax effect of such a
temporary difference.
Recourse liability accounts that arise from recourse obligations for any transfers of loans that are reported as
sales for purposes of this report should not be included in
the allowance for loan and lease losses. These accounts
are considered separate and distinct from the allowance
account and from the allowance for credit losses on
off-balance credit exposures. Recourse liability accounts
should be reported as liabilities on Schedule HC-G, item
4, ‘‘Other’’ liabilities.
Information on the application of FASB Statement
No. 114, Accounting by Creditors for Impairment of a
Loan, to the determination of an allowance for credit
losses on those loans covered by that accounting
standard is provided in the Glossary entry for ‘‘loan
impairment.’’
For information on reporting on foreclosed and repossessed assets, see the Glossary entry for ‘‘foreclosed
assets.’’
Applicable Income Taxes: See ‘‘Income taxes.’’
Associated Company: See ‘‘Subsidiaries.’’
FR Y-9C
Glossary March 2007

ATS Account: See ‘‘Deposits.’’
Bankers’ Acceptances: A banker’s acceptance, for purposes of these reports, is a draft or bill of exchange that
has been drawn on and accepted by a banking institution
(the ‘‘accepting bank’’) or its agent for payment by that
institution at a future date that is specified in the instrument. Funds are advanced to the drawer of the acceptance
by the discounting of the accepted draft either by the
accepting bank or by others; the accepted draft is negotiable and may be sold and resold subsequent to its
original discounting. At the maturity date specified, the
holder or owner of the acceptance at that date, who has
advanced funds either by initial discount or subsequent
purchase, presents the accepted draft to the accepting
bank for payment.
The accepting bank has an unconditional obligation to
put the holder in funds (to pay the holder the face amount
of the draft) on presentation on the specified date. The
account party (customer) has an unconditional obligation
to put the accepting bank in funds at or before the
maturity date specified in the instrument.
The following description covers the treatment in the
FR Y-9C of (1) acceptances that have been executed by
a bank subsidiary of the reporting holding company, that
is, those drafts that have been drawn on and accepted by a
subsidiary bank; (2) ‘‘participations’’ in acceptances, that
is, ‘‘participations’’ in the accepting bank’s obligation to
put the holder of the acceptance in funds at maturity, or
participations in the accepting bank’s risk of loss in the
event of default by the account party; and (3) acceptances
owned by the reporting bank holding company or its
subsidiaries, that is, those acceptances— whether executed by the reporting holding company’s subsidiary
banks or by others—that a bank subsidiary has discounted or that any subsidiary of the holding company
has purchased.
(1) Acceptances executed by a subsidiary bank of the
reporting holding company. With the exceptions
described below, the reporting bank holding company must report on its balance sheet the full amount
of the acceptance in both (a) the liability item,
‘‘Other liabilities’’ (Schedule HC, item 20), reflecting the subsidiary bank’s obligation to put the holder
of the acceptance in funds at maturity, and (b) the
asset item, ‘‘Other assets’’ (Schedule HC, item 11),
reflecting the account party’s liability to put the
accepting bank subsidiary in funds at or before
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Glossary

maturity. The acceptance liability and acceptance
asset must also be reported in both Schedule HC-G,
item 4, ‘‘Other liabilities,’’ and Schedule HC-F, item
6, ‘‘Other assets,’’ respectively.
Exceptions to the mandatory reporting by the reporting bank holding company of the full amount of all
outstanding drafts accepted by the bank subsidiary(ies) of the reporting holding company in both
‘‘Other liabilities’’ (Schedule HC, item 20) and
‘‘Other assets’’ (Schedule HC, item 11) on the Consolidated Balance sheet of the FR Y-9C occur in the
following situations:
(a) One exception occurs in situations where the
accepting bank acquires—through initial discounting or subsequent purchase—and holds its
own acceptance (i.e., a draft that it has itself
accepted). In this case, the bank subsidiary’s own
acceptances that are held by it will not be reported
in the ‘‘Other liabilities’’ and ‘‘Other assets’’
items noted above. The bank subsidiary’s holdings of its own acceptances will be reported
either in ‘‘Loans and leases, net of unearned
income’’ (Schedule HC, item 4(b)) or, if held in a
trading account, in ‘‘Trading assets’’ (Schedule
HC, item 5).
(b) A second exception occurs where the parent bank
holding company or a subsidiary of the bank
holding company (other than the accepting bank
subsidiary) purchases an acceptance executed by
one of the reporting bank holding company’s
subsidiary banks. In this case, the process of
consolidation eliminates the consolidated bank
holding company’s liability on acceptances and
outstanding and the customers’ liability to the
accepting bank on acceptances outstanding will
be reported either in Schedule HC, item 4(b) or
item 5.
(c) A third exception occurs in situations where the
account party anticipates its liability to a bank
subsidiary of the reporting bank holding company on an acceptance outstanding by making a
payment to the bank that reduces the customer’s
liability in advance of the maturity of the acceptance. In this case, the bank holding company
will decrease the asset item ‘‘Other assets’’
(Schedule HC, item 11) by the amount of such
prepayment; the prepayment will not affect the
GL-6

liability item ‘‘Other liabilities’’ (Schedule HC,
item 20) which would continue to reflect the full
amount of the acceptance until the bank subsidiary has repaid the holder of the acceptance at the
maturity date specified in the instrument. If the
account party’s payment to the accepting bank
before the maturity date is not for the purpose of
immediate reduction of its indebtedness to the
reporting bank or if receipt of the payment does
not immediately reduce or extinguish that indebtedness, such advance payment will not reduce
item 11 of Schedule HC but should be reflected
in the bank’s deposit liabilities.
(d) A fourth exception occurs when the bank holding
company has a subsidiary of the bank holding
company (other than the accepting bank) that is
the account party (customer) in the acceptance
transaction. In this case, the process of consolidation eliminates the asset item but will leave the
liability item (item 20) unaffected except where
the holding company or one of its consolidated
subsidiaries purchases the acceptance executed.
In all situations other than these four exceptions just
described, the reporting bank holding company’s
financial statement must reflect the full amount of its
acceptances in ‘‘Other liabilities’’ (Schedule HC,
item 20) and in ‘‘Other assets’’ (Schedule HC, item
11).
(2) ‘‘Participations’’in acceptances. The general requirement for the accepting bank to report on its balance
sheet the full amount of the total obligation to put the
holder of the acceptance in funds applies also, in
particular, to any situation in which the acceptingbank enters into any kind of arrangement with others
for the purpose of having the latter share, or participate, in the obligation to put the holder of the
acceptance in funds at maturity or in the risk of loss
in the event of default on the part of the account
party.1 In any such sharing arrangement or participation agreement—regardless of its form or its contract
provisions, regardless of the terminology (e.g.,
‘‘funded,’’ ‘‘risk,’’ ‘‘unconditional,’’ or ‘‘contingent’’)
used to describe it and the relationships under it,

1. The discussion does not deal with participations in holdings of bankers
acceptances, which are reportable under loans. Such participations are
treated like any participations in loans.

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Glossary

regardless of whether it is described as a participation
in the customer’s liability or in the accepting bank’s
obligation or in the risk of default by the account
party, and regardless of the system of debits and
credits used by the accepting bank to reflect the
participation arrangement—the existence of the participation or other agreement should not reduce the
accepting bank’s obligation to honor the full amount
of the acceptance at maturity.
The existence of such participations should not to be
recorded on the balance sheet of the accepting bank
subsidiary nor on the consolidated balance sheet
(Schedule HC) of the bank holding company (except
for immaterial amounts) that conveys shares in its
obligation to put the holder of the acceptance in
funds or shares in its risk of loss in the event of
default on the part of the account party, and similarly
is not to be recorded on the balance sheets (Schedule HC) of the other bank holding companies or their
subsidiaries that are party to, or acquire, such participations. However, in such cases of agreements to
participate, the nonaccepting institution acquiring the
participation will report an amount in the item ‘‘Risk
participations in bankers acceptances acquired by the
reporting institution’’ (item 47 of Schedule HC-R).
This same reporting treatment applies to a bank
holding company that acquires a participation in an
acceptance of another (accepting) institution and
subsequently conveys the participation to others and
to an institution that acquires such a participation.
Moreover, the bank holding company that both
acquires and conveys a participation in another institution’s acceptance must report the amount of the
participations in the acceptance particiaption item in
Schedule HC-R.
(3) Acceptances owned by the reporting bank holding
company. The treatment of acceptances owned or
held by the reporting bank holding company (whether
acquired by initial discount or subsequent purchase)
depends upon whether the acceptances are held in
trading account or in portfolio and upon whether the
acceptances held have been accepted by a bank
subsidiary of the reporting bank holding company or
by a bank that is not a subsidiary of the reporting
bank holding company. All acceptances held by the
reporting bank holding company in trading accounts
(whether acceptances of a bank of the reporting bank
holding company or of banks outside the holding
FR Y-9C
Glossary March 2007

company) are to be reported in Schedule HC, item 5,
‘‘Trading assets.’’ The reporting bank holding company’s holdings of acceptances other than those in its
trading account (whether acceptances of a bank
subsidiary of the reporting bank holding company or
of banks outside the holding company) are to be
reported in Schedule HC, item 4(b), ‘‘Loans and
leases, net of unearned income,’’ and in Schedule
HC-C which calls for detail on ‘‘Loans and lease
financing receivables.’’
In Schedule HC-C, the reporting bank holding company’s holdings of acceptances of banks outside the
reporting bank holding company, other than those held
in trading accounts, are to be reported in ‘‘Loans to
depository institutions and acceptances of other banks’’
(item 2). On the other hand, the bank holding company’s
holdings of acceptances of its bank subsidiaries, other
than those held in trading accounts, are to be reported in
Schedule HC-C according to the account party of the
draft. Thus, holdings of acceptances of bank subsidiaries
for which the account parties are commercial or industrial enterprises are to be reported in Schedule HC-C in
‘‘Commercial and industrial loans’’ (item 4); holdings of
acceptances of subsidiary banks for which the account
parties are banks outside the bank holding company (e.g.,
in connection with the refinancing of another acceptance
or for the financing of dollar exchange) are to be reported
in Schedule HC-C in ‘‘Loans to depository institutions
and acceptances of other banks’’ (item 2); and holdings
of acceptances of subsidiary banks for which the account
parties are foreign governments or official institutions
(e.g., for the financing of dollar exchange) are to be
reported in Schedule HC-C, ‘‘Loans to foreign governments and official institutions’’ (item 7).
The difference in treatment between holdings of acceptances of subsidiary banks and holdings of other banks’
acceptances reflects the fact that, for other banks’ acceptances, the bank holding company’s immediate claim is
on the accepting bank, regardless of the account party or
of the purpose of the loan. On the other hand, for its
holdings of its own acceptances, the bank holding company’s immediate claim is on the account party named in
the accepted draft.
If the account party prepays its acceptance liability on an
acceptance of a bank subsidiary of the reporting bank
holding company that is held by the bank subsidiary
(either in loans or trading account) so as to immediately
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Glossary

reduce its indebtedness to the bank subsidiary, the
recording of the holding—in ‘‘Commercial and industrial
loans,’’ ‘‘Loans to depository institutions,’’ or ‘‘Assets
held in trading accounts,’’ as appropriate—is reduced by
the prepayment.
Bank-Owned Life Insurance: FASB Technical Bulletin
No. 85-4, Accounting for Purchases of Life Insurance,
addresses the accounting for bank-owned life insurance.
According to this technical bulletin, only the amount that
could be realized under the insurance contract as of the
balance sheet date should be reported as an asset. This
amount is the cash surrender value reported to the
institution by the insurance carrier less any applicable
surrender charges not reflected by the insurance carrier in
the reported cash surrender value, i.e., the net cash
surrender value. Because there is no right of offset, an
investment in bank-owned life insurance should be
reported as an asset separately from any related deferred
compensation liability.
The net cash surrender value of bank-owned life insurance policies as of the report date should be reported on
the balance sheet in Schedule HC, item 11, ‘‘Other
assets,’’ and in Schedule HC-F, item 5, ‘‘Life insurance
assets.’’ The net earnings (losses) on or the net increases
(decreases) in the net cash surrender value of bankowned life insurance should be reported in the income
statement in Schedule HI, item 5(l), ‘‘Other noninterest
income.’’ Alternatively, the gross earnings (losses) on or
increases (decreases) in net cash surrender value may be
reported in Schedule HI, item 5(l), and the life insurance
policy expenses may be reported in Schedule HI, Item
7(d), ‘‘Other noninterest expense.’’ If the earnings (losses)
on or the increases (decreases) in the net cash surrender
value that are reported in Schedule HI, item 5.l, are
greater than 1 percent of the sum of total interest income
and total noninterest income, this amount should be
reported in Schedule HI, Memoranda item 6(b).
Banks, U.S. and Foreign: In the classification of banks
as customers of the reporting bank holding company,
distinctions are drawn for purposes of the FR Y-9C
between ‘‘U.S. banks’’ and ‘‘commercial banks in the
U.S.’’ and between ‘‘foreign banks’’ and ‘‘banks in
foreign countries.’’ Some report items call for one set of
these categories and other items call for the other set. The
distinctions center around the inclusion or exclusion of
foreign branches of U.S. banks and U.S. branches and

GL-8

agencies of foreign banks. For purposes of describing the
office location of banks as customers of the reporting
bank, the term ‘‘United States’’ covers the 50 states of the
United States, the District of Columbia, Puerto Rico, and
U.S. territories and possessions. (This is in contrast to the
usage with respect to the offices of the reporting bank,
where U.S.-domiciled Edge and Agreement subsidiaries
and IBFs are included in ‘‘foreign’’ offices. Furthermore,
for bank holding companies chartered and headquartered
in the 50 states of the United States and the District of
Columbia, offices of the reporting bank holding company
in Puerto Rico and U.S. territories and possessions are
also included in ‘‘foreign’’ offices, but, for bank holding
companies chartered and headquartered in Puerto Rico
and U.S. territories and possessions, offices of the reporting bank holding company in Puerto Rico and U.S.
territories and possessions are included in ‘‘domestic’’
offices.)
U.S. banks—The term ‘‘U.S. banks’’ covers both the U.S.
and foreign branches of banks chartered and headquartered in the U.S. (including U.S.-chartered banks
owned by foreigners), but excluding U.S. branches and
agencies of foreign banks. On the other hand, the term
‘‘banks in the U.S.’’ or ‘‘commercial banks in the U.S.’’
(the institutional coverage of which is described in detail
later in this entry) covers the U.S. offices of U.S. banks
(including their IBFs) and the U.S. branches and agencies
of foreign banks, but excludes the foreign branches of
U.S. banks.
Foreign banks—Similarly, the term ‘‘foreign banks’’
covers all branches of banks chartered and headquartered
in foreign countries (including foreign banks owned by
U.S. nationals and institutions), including their U.S.domiciled branches and agencies, but excluding the
foreign branches of U.S. banks. In contrast, the term
‘‘banks in foreign countries’’ covers foreign-domiciled
branches of banks, including the foreign branches of U.S.
banks, but excluding the U.S. branches and agencies of
foreign banks.
The following table summarizes these contrasting categories of banks considered as customers as used in the
Reports of Condition and Income. (‘‘X’’ indicates inclusion; no entry indicates exclusion.)
Commercial banks in the U.S.—The detailed institutional composition of ‘‘commercial banks in the U.S.’’
includes:

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FR Y-9C
March 2007

Glossary

(1) the U.S.-domiciled head offices and branches of:
(a) national banks;

(1) the U.S. branches and agencies of foreign banks;

(b) state-chartered commercial banks;
(c) trust companies that perform a commercial banking business;
(d) industrial banks;
(e) International Banking Facilities (IBFs) of U.S.
banks;
(f) Edge and Agreement corporations; and

(2) the U.S.-domiciled branches and agencies of foreign
banks (as defined below).

U.S. branches
of U.S. banks
(including
IBFs) ..............
Foreign branches
of U.S. banks ...
Foreign branches
of foreign
banks ..............
U.S. branches
and agencies
of foreign
banks ..............

X

Commercial
banks in
Foreign
the U.S.
banks

Banks in
foreign
countries

(3) investment companies that are chartered under Article
XII of the New York State banking law and that are
majority-owned by one or more foreign banks.

(1) the foreign-domiciled head offices and branches of:
(a) foreign commercial banks (including foreigndomiciled banking subsidiaries of U.S. banks and
of Edge and Agreement corporations);
(b) foreign savings banks or discount houses;
(c) nationalized banks not functioning either as central banks, as foreign development banks, or as
banks of issue;

X

X

X

(d) other similar foreign institutions that accept
short-term deposits; and
(2) the foreign-domiciled branches of U.S. banks.

X

X

X

X

This coverage includes the U.S. institutions listed above
that are owned by foreigners. Excluded from commercial
banks in the U.S. are branches located in foreign countries of U.S. banks.
U.S. branches and agencies of foreign banks—U.S.
branches of foreign banks include any offices or places of
business of foreign banks that are located in the United
States at which deposits are accepted. U.S. agencies of
foreign banks generally include any offices or places of
business of foreign banks that are located in the United
States at which credit balances are maintained incidental
to or arising out of the exercise of banking powers but at
which deposits may not be accepted from citizens or
residents of the United States. For purposes of the
FR Y-9C
Glossary March 2007

(2) the U.S. branches and agencies of foreign official
banking institutions, including central banks, nationalized banks, and other banking institutions owned
by foreign governments; and

Banks in foreign countries—The institutional composition of ‘‘banks in foreign countries’’ includes:

(g) private or unincorporated banks;

U.S.
banks

FR Y-9C, the term ‘‘U.S. branches and agencies of
foreign banks’’ covers:

See also ‘‘International Banking Facility (IBF).’’ Banks
in Foreign Countries: See ‘‘Banks, U.S. and foreign.’’
Bill-of-Lading Draft: See ‘‘Commodity or bill-of-lading
draft.’’
Borrowings and Deposits in Foreign Offices: Borrowings in foreign offices include assets rediscounted with
central banks, certain participations sold in loans and
securities, government funding of loans, borrowings from
the Export–Import Bank, and rediscounted trade acceptances. Federal funds sold and repurchase agreements in
foreign offices should be reported in accordance with the
Glossary entries for ‘‘federal funds transactions’’ and
‘‘repurchase/resale agreements.’’ Liability accounts such
as accruals and allocated capital shall not be reported as
borrowings. Deposits consist of such other short-term
and long-term liabilities issued or undertaken as a means
of obtaining funds to be used in the banking business and
include those liabilities generally characterized as placements and takings, call money, and deposit substitutes.
Key factors in determining if a liability is a deposit or
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Glossary

borrowing are the provisions of the underlying contract.
If no such contract exists the confirmation may be used to
determine the nature of the liability.
Brokered Deposits: Brokered deposits represent deposits which the banking subsidiaries of the reporting bank
holding company receives from brokers or dealers for the
account of others either directly or ultimately. Brokered
deposits include both those in which the entire beneficial
interest in a given deposit instrument issued by the bank
subsidiary is held by a single depositor and those in
which the broker sells participations in a given bank
instrument to one or more investors.
Brokered Retail Deposits: are brokered deposits that are
issued in denominations of $100,000 or less or that are
issued in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less.
In some cases, brokered retailed deposits are issued in
$1,000 amounts under a master certificate of deposit
issued by a bank subsidiary to a deposit broker in an
amount that exceeds $100,000. For these retail brokered
deposits, multiple purchases by individual depositors
from an individual bank subsidiary normally do not
exceed the applicable deposit insurance limit (either
$100,000 or $250,000), but under current deposit insurance rules the deposit broker is not required to provide
information routinely on these purchasers and their
account ownership capacity to the bank subsidiary issuing the deposits. If this information is not readily available to the issuing bank subsidiary, these brokered certificates of deposit in $1,000 amounts may be rebuttably
presumed to be fully insured brokered deposits and
should be reported in Schedule HC-E, Memorandum
item 1 or 2. In addition, some brokered deposits are
transaction accounts or money market deposit accounts
(MMDAs) that are denominated in amounts of $0.01 and
established and maintained by the deposit broker (or its
agent) as agent, custodian, or other fiduciary for the
broker’s customers. An individual depositor’s deposits
within the brokered transaction account or MMDA normally do not exceed the applicable deposit insurance
limit. As with retail brokered deposits, if information on
these depositors and their account ownership capacity is
not readily available to the bank subsidiary establishing
the transaction account or MMDA, the amounts in the
transaction account or MMDA may be rebuttably presumed to be fully insured brokered deposits and should
be reported in Schedule HC-E, Memorandum item 1 or 2.
GL-10

For purposes of this report, the term deposit broker
includes:
(1) any person engaged in the business of placing deposits, or facilitating the placement of deposits, of third
parties with insured depository institutions or the
business of placing deposits with insured depository
institutions for the purpose of selling interests in
those deposits to third parties, and
(2) an agent or trustee who establishes a deposit account
to facilitate a business arrangement with an insured
depository institution to use the proceeds of the
account to fund a prearranged loan.
The term deposit broker does not include:
(1) an insured depository institution, with respect to
funds placed with that depository institution;
(2) an employee of an insured depository institution,
with respect to funds placed with the employing
depository institution;
(3) a trust department of an insured depository institution, if the trust in question has not been established
for the primary purpose of placing funds with insured
depository institutions;
(4) the trustee of a pension or other employee benefit
plan, with respect to funds of the plan;
(5) a person acting as a plan administrator or an investment adviser in connection with a pension plan or
other employee benefit plan provided that that person
is performing managerial functions with respect to
the plan;
(6) the trustee of a testamentary account;
(7) the trustee of an irrevocable trust (other than a trustee
who establishes a deposit account to facilitate a
business arrangement with an insured depository
institution to use the proceeds of the account to fund
a prearranged loan), as long as the trust in question
has not been established for the primary purpose of
placing funds with insured depository institutions;
(8) a trustee or custodian of a pension or profit sharing
plan qualified under Section 401(d) or 430(a) of the
Internal Revenue Code of 1986; or
(9) an agent or nominee whose primary purpose is not
the placement of funds with depository institutions.
(For purposes of applying this ninth exclusion from
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March 2007

Glossary

the definition of deposit broker, ‘‘primary purposes’’
does not mean ‘‘primary activity,’’ but should be
construed as ‘‘primary intent.’’)
Notwithstanding these nine exclusions, the term deposit
broker includes any insured depository institution, and
any employee of any insured depository institution,
which engages, directly or indirectly, in the solicitation of
deposits by offering rates of interest (with respect to such
deposits) which are significantly higher than the prevailing rates of interest on deposits offered by other insured
depository institutions having the same type of charter in
such depository institution’s normal market area.
In addition, deposit instruments of the reporting bank
holding company that are sold to brokers, dealers, or
underwriters (including both bank affiliates and nonbank
subsidiaries of the reporting bank holding company) who
then reoffer and/or resell these deposit instruments to one
or more investors, regardless of the minimum denomination which the investor must purchase, are considered
brokered deposits.
In some cases, brokered deposits are issued in the name
of the depositor whose funds have been placed in a bank
holding company or its subsidiary by a deposit broker. In
other cases, a bank holding company’s deposit account
records may indicate that the funds have been deposited
in the name of a third party custodian for the benefit of
others (e.g., ‘‘XYZ Corporation as custodian for the
benefit of others,’’ or ‘‘Custodial account of XYZ Corporation’’). Unless the custodian meets one of the specific
exemptions from the ‘‘deposit broker’’ definition in Section 29 of the Federal Deposit Insurance Act and this
Glossary entry, these custodial accounts should be
reported as brokered deposits in Schedule HC-E, Deposit
Liabilities.
A deposit listing service whose only function is to
provide information on the availability and terms of
accounts is not facilitating the placement of deposits and
therefore is not a deposit broker per se. However, if a
deposit broker uses a deposit listing service to identify an
institution offering a high rate on deposits and then places
its customers’ funds at that institution, the deposits would
be brokered deposits and the institution should report
them as such in Schedule HC-E. The designation of these
deposits as brokered deposits is based not on the broker’s
use of the listing service but on the placement of the
deposits in the institution by the deposit broker.
FR Y-9C
Glossary March 2007

Broker’s Security Draft: A broker’s security draft is a
draft with securities or title to securities attached that is
drawn to obtain payment for the securities. This draft is
sent to a bank for collection with instructions to release
the securities only on payment of the draft.
Business Combinations: The accounting and reporting
standards for business combinations are set forth in
FASB Statement No. 141, ‘‘Business Combinations.’’
Statement No. 141 requires that all business combinations initiated after June 30, 2001, must be accounted for
using the purchase method. The use of the pooling-ofinterests method to account for business combinations
initiated after June 30, 2001, is prohibited. However, for
combinations between two or more mutual institutions,
Statement No.141 will not take effect until interpretive
guidance related to the application of the purchase
method to those transactions is issued. Business combinations initiated before July 1, 2001, were accounted for
using one of two methods, the pooling-of-interests method
or the purchase method. A business combination involving the exchange of voting common stock between
unrelated stock institutions and meeting all 12 of the
conditions specified in APB Opinion No. 16, ‘‘Business
Combinations,’’ was accounted for using the pooling-ofinterests method; all other unrelated party business combinations were accounted for using the purchase method.
Pooling of interests method—In a pooling of interests
method, the assets, liabilities, and capital of the bank
holding company and the business being acquired are
added together on a line-by-line basis without any adjustments for fair market value. The historical cost-based
amount (cost adjusted for amortization of premiums and
discounts or depreciation) of each asset, liability, and
capital account of the acquiring bank holding company is
added to the corresponding account of the business being
acquired to arrive at the balance sheet for the combined
holding company. However, the capital stock outstanding
of the combined bank holding company must be equal to
the number of shares issued and outstanding (including
the shares issued in connection with the acquisition)
multiplied by par or stated value.
If the sum of the capital stock accounts of the entities
being combined does not equal this amount (and it rarely,
if ever, will), adjustment is required. If the sum of the
capital stock accounts is less than the number of shares
outstanding of the combined holding company multiplied
by par or stated value, ‘‘Surplus,’’ Schedule HC, item 25,
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Glossary

must be debited for the amount of the difference and
‘‘Common stock,’’ Schedule HC, item 24 is credited. If
the surplus account is insufficient to absorb such an
adjustment the remainder must be debited to ‘‘Retained
earnings,’’ Schedule HC, item 26(a). If the sum of the
capital stock accounts is more than the amount of the
outstanding stock of the combined bank holding company, ‘‘Surplus’’ must be credited and ‘‘Common stock’’
debited.
Any adjustments necessary to conform the accounting
methods of the acquired entity to those of the reportingbank holding company must be made to ‘‘Retained
earnings.’’
For the year in which a pooling of interests occurs,
income and expenses must be reported as though the
companies had combined at the beginning of the year.
The portion of the adjustment necessary to conform the
accounting methods applicable to the current period
must also be allocated to income and expenses for the
period.
Purchase method—In general, under the purchase method
an acquiring entity must allocate the cost of an acquired
entity to the assets acquired and liabilities assumed based
on their estimated fair values at the date of acquisition.
Any cash payments, the fair values of securities or other
assets distributed as consideration, and the fair values of
liabilities incurred by an acquiring entity must be used to
measure the cost of an acquired entity. The cost of an
acquired entity also includes the direct costs of the
business combination. Costs of registering and issuing
equity securities must be recognized as a reduction of the
otherwise determinable fair value of the securities. However, indirect and general expenses related to business
combinations must be expensed as incurred.
Statement No. 141 provides general guidance for assigning amounts to assets acquired and liabilities assumed.
Acquired assets may be tangible (such as securities or
fixed assets) or intangible (as discussed in the following
paragraph). An acquiring entity must not recognize the
goodwill, if any, or the deferred income taxes recorded
by an acquired entity before its acquisition. However, a
deferred tax liability or asset must be recognized for
differences between the assigned values and the tax bases
of the recognized assets acquired and liabilities assumed
in a business combination in accordance with FASB
Statement No. 109, ‘‘Accounting for Income Taxes.’’ (For
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further information, see the Glossary entry for ‘‘income
taxes.’’)
Under Statement No. 141, an intangible asset must be
recognized as an asset apart from goodwill if it arises
from contractual or other legal rights (regardless of
transferability or separability). Otherwise, an intangible
asset must be recognized as an asset apart from goodwill
only if it is separable, that is, it is capable of being
separated or divided from the acquired entity and sold,
transferred, licensed, rented or exchanged either individually or in combination with a related contract, asset, or
liability. Examples of intangible assets that must be
recognized as an asset apart from goodwill are core
deposit intangibles, purchased credit card relationships,
servicing assets, favorable leasehold rights, trademarks,
tradenames, Internet domain names, and noncompetition
agreements. These intangible assets, as well as any
unidentifiable intangible assets recorded in accordance
with FASB Statement No. 72, must be reported in
Schedule HC, item 10(b), ‘‘Other intangible assets,’’ and
in Schedule HC-M, item 12.
The excess of the cost of an acquired entity over the net
of the amounts assigned to assets acquired and liabilities
must be recognized as goodwill, which is reported in
Schedule HC, item 10(a). An acquired intangible asset
that does not meet the criteria described in the preceding
paragraph must be included in the amount recognized as
goodwill. After initial recognition, goodwill must be
accounted for in accordance with FASB Statement
No. 142, ‘‘Goodwill and Other Intangible Assets,’’ and
the instructions for Schedule HI, item 7(c)(1), ‘‘Goodwill
impairment losses.’’
In contrast, if the sum of the amounts assigned to assets
acquired and liabilities assumed exceeds the cost of the
acquired entity, that excess must be allocated as a pro rata
reduction of the amounts that otherwise would have been
assigned to all of the acquired assets except financial
assets (other than investments accounted for by the
equity method), assets to be disposed of by sale (such as
foreclosed real estate), deferred tax assets, prepaid assets
relating to pension or other postretirement benefit plans,
and any other current assets.2 If any excess remains after
reducing to zero the amounts that otherwise would have
2. Prior to the allocation of the excess, the acquiring entity must
reassess whether all acquired assets and assumed liabilities have been
identified and recognized and perform remeasurements to verify that
the consideration paid, assets acquired, and liabilities assumed have

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been assigned to those assets, that remaining excess shall
be recognized as an extraordinary gain, generally in the
period in which the business combination is completed,
and reported in Schedule HI, item 12, ‘‘Extraordinary
items, net of applicable taxes and minority interest.’’

For further information, see FASB Statement No. 34,
Capitalization of Interest Costs, as amended.
Carrybacks and Carryforwards: See ‘‘Income taxes.’’
Certificate of Deposit: See ‘‘Deposits.’’

Under the purchase method, the historical equity capital
balances of the acquired business are not to be carried
forward to the balance sheet of the combined bank
holding company. The operating results of the acquired
entity are to be included in the income and expenses of
the reporting bank holding company only from the date
of acquisition.

Changes in Accounting Estimates: See ‘‘Accounting
changes.’’

Reorganizations—A combination of two or more entities
involving related parties is considered a reorganization
and not a business combination. For example, two subsidiary banks of a bank holding company may combine
into one bank which is a change in legal organization but
not a change in the entity. The assets and liabilities
transferred in the combination are accounted for at historical cost in a manner similar to that described above
under ‘‘pooling of interests method.’’

Commercial Letter of Credit: See ‘‘Letter of credit.’’

For further details on the accounting for business combinations, see FASB Statement No. 141 and FASB Statement No. 72, Accounting for Certain Acquisitions of
Banking or Thrift Institutions.
Call Option: See ‘‘Futures, forward, and standby
contracts.’’
Capitalization of Interest: Interest costs associated with
the construction of a building shall, if material, be
capitalized as part of the cost of the building. Such
interest costs include both the actual interest incurred
when the construction funds are borrowed and the interest costs imputed to internal financing of a construction
project.
The interest rate utilized to capitalized interest on internally financed projects in the reporting period shall be the
rate(s) applicable to the bank holding company’s borrowings outstanding during the period. For this purpose, a
bank holding company’s borrowings include interestbearing deposits and other interest-bearing liabilities.
The interest capitalized shall not exceed the total amount
of interest cost incurred by the bank holding company
during the reporting period.
been properly valued.
FR Y-9C
Glossary March 2007

Changes in Accounting Principles: See ‘‘Accounting
changes.’’
Commercial Banks in the U.S.: See ‘‘Banks, U.S. and
foreign.’’

Commercial Paper: Commercial paper consists of shortterm negotiable promissory notes. Commercial paper
matures in 270 days or less. Commercial paper may be
backed by a standby letter of credit from a bank, as in the
case of documented discounted notes. Holdings of commercial paper are to be reported as ‘‘securities’’ in
Schedule HC-B, unless held for trading and therefore
reportable in Schedule HC, item 5, ‘‘Trading assets.’’
Commodity or Bill-of-Lading Draft: A commodity or
bill-of-lading draft is a draft that is issued in connection
with the shipment of goods. If the commodity or bill-oflading draft becomes payable only when the shipment of
goods against which it is payable arrives, it is an arrival
draft. Arrival drafts are usually forwarded by the shipper
to the collecting depository institution with instructions
to release the shipping documents (e.g., bill of lading)
conveying title to the goods only upon payment of the
draft. Payment, however, cannot be demanded until the
goods have arrived at the drawee’s destination. Arrival
drafts provide a means of insuring payment of shipped
goods at the time that the goods are released.
Common Stock of Unconsolidated Subsidiaries,
Investments in: See the instructions to Consolidated
Financial Statements for Bank Holding Companies,
Schedule HC, item 8, ‘‘Investments in unconsolidated
subsidiaries and associated companies.’’
Continuing Contract: See ‘‘Federal funds transactions.’’
Contractholder: A contractholder is the person, entity
or group to whom an annuity is issued.
Corporate Joint Venture: See ‘‘Subsidiaries.’’
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Glossary

Corrections of Accounting Errors: See ‘‘Accounting
changes.’’
Coupon Stripping, Treasury Receipts, and STRIPS:
Coupon stripping occurs when a security holder physically detaches unmatured coupons from the principal
portion of a security and sells either the detached coupons or the ex-coupon security separately. (Such transactions are generally considered by the Federal Reserve
to represent ‘‘improper investment practices’’ for bank
holding companies.) In accounting for such transactions,
the carrying amount of the security must be allocated
between the ex-coupon security and the detached coupons based on their relative fair values at the date of the
sale in accordance with FASB Statement No. 140. (See
the Glossary entry for ‘‘transfers of financial assets.’’)
Detached U.S. government security coupons and
ex-coupon U.S. government securities that are held for
purposes other than trading, whether resulting from the
coupon stripping activities of the reporting bank holding
company or from its purchase of stripped securities, shall
be reported as ‘‘Other domestic debt securities’’ in
Schedule HC-B. The amount of any discount or premium
relating to the detached coupons or ex-coupon securities
must be amortized. (See the Glossary entry for ‘‘premiums and discounts.’’)
A variation of coupon stripping has been developed
by several securities firms which have marketed instruments with such names as CATS (Certificates of Accrual
on Treasury Securities), TIGR (Treasury Investment
Growth Receipts), COUGAR (Certificates on Government Receipts), LION (Lehman Investment Opportunity
Notes), and ETR (East Treasury Receipts). A securities
dealer purchases U.S. Treasury securities, delivers them
to a trustee, and sells receipts representing the rights to
future interest and/or principal payments on the U.S.
Treasury securities held by the trustee. Such Treasury
receipts are not an obligation of the U.S. government and,
when held for purposes other than trading shall be reported as other (domestic) securities in Schedule HC-B,
item 6(a). The discount on these Treasury receipts must
be accreted.
Under a program called Separate Trading of Registered
Interest and Principal of Securities (STRIPS), the U.S.
Treasury has issued certain long-term note and bond
issues that are maintained in the book-entry system
operated by the Federal Reserve Banks in a manner that
permits separate trading and ownership of the interest
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and principal payments on these issues. Even after the
interest or principal portions of U.S. Treasury STRIPS
have been separately traded, they remain obligations of
the U.S. government. STRIPS held for purposes other
than trading shall be reported as U.S. Treasury securities
in Schedule HC-B, item 1. The discount on separately
traded portions of STRIPS must be accreted.
Detached coupons, ex-coupon securities, Treasury
receipts, and U.S. Treasury STRIPS held for trading
purposes shall be reported in Schedule HC, item 5, at fair
value.
Custody Account: A custody account is one in which
securities or other assets are held by a bank holding
company or subsidiary of the bank holding company on
behalf of a customer under a safekeeping arrangement.
Assets held in such capacity are not to be reported in the
balance sheet of the reporting bank nor are such accounts
to be reflected as a liability. Assets of the reporting bank
holding company held in custody accounts at banks that
are outside the holding company are to be reported on the
reporting bank holding company’s balance sheet in the
appropriate asset categories as if held in the physical
custody of the reporting holding company.
Dealer Reserve Account: A dealer reserve account
arises when the bank holding company purchases at full
face value a dealer’s installment note receivables, but
credits less than the full face value directly to the dealer’s
account. The remaining amount is credited to a separate
dealer reserve account. That account is held by the bank
holding company as collateral for the installment notes
and, for reporting purposes, is treated as a deposit in
the appropriate items of Schedule HC-E. The bank will
subsequently disburse to the dealer predetermined portions of the reserve as the purchased notes are paid in a
timely manner.
For example, if a bank purchases $100,000 in notes from
a dealer for the full face amount ($100,000) and pays to
the dealer $90,000 in cash or in credits to his/her deposit
account, the remaining $10,000, which is held as collateral security, would be credited to the dealer reserve
account.
See also ‘‘Deposits.’’
Deferred Compensation Agreements: Institutions often
enter into deferred compensation agreements with selected employees as part of executive compensation and
retention programs. These agreements are generally
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structured as nonqualified retirement plans for federal
income tax purposes and are based upon individual
agreements with selected employees. Institutions purchase life insurance in connection with many of these
agreements. Bank-owned life insurance may produce
attractive tax-equivalent yields that offset some or all of
the costs of the agreements.
Deferred compensation agreements with select employees under individual contracts generally do not constitute
postretirement income plans (i.e., pension plans) or postretirement health and welfare benefit plans. The accounting for individual contracts that, when taken together, do
not represent a postretirement plan should follow
Accounting Principles Board Opinion No. 12, Omnibus
Opinion 1967, as amended by FASB Statement No. 106,
Employers’ Accounting for Postretirement Benefits Other
Than Pensions (hereafter referred to as APB Opinion No.
12). If the individual contracts, taken together, are equivalent to a plan, the plan should be accounted for under
FASB Statement No. 87, Employers’ Accounting for
Pensions, or Statement No. 106.
APB Opinion No. 12 requires that an employer’s obligation under a deferred compensation agreement be accrued
according to the terms of the individual contract over the
required service period to the date the employee is fully
eligible to receive the benefits, i.e., the ‘‘full eligibility
date.’’ Depending on the individual contract, the full
eligibility date may be the employee’s expected retirement date, the date the employee entered into the contract, or a date between these two dates. APB Opinion
No. 12 does not prescribe a specific accrual method for
the benefits under deferred compensation contracts, stating only that the ‘‘cost of those benefits shall be accrued
over that period of the employee’s service in a systematic
and rational manner.’’ The amounts to be accrued each
period should result in a deferred compensation liability
at the full eligibility date that equals the then present
value of the estimated benefit payments to be made under
the individual contract.
APB Opinion No. 12 does not specify how to select the
discount rate to measure the present value of the estimated benefit payments. Therefore, other relevant
accounting literature must be considered in determining
an appropriate discount rate. For purposes of these
reports, an institution’s incremental borrowing rate3 and
3. APB Opinion No. 21, Interest on Receivables and Payables, paragraph
FR Y-9C
Glossary March 2007

the current rate of return on high-quality fixed-income
debt securities4 are acceptable discount rates to measure
deferred compensation agreement obligations. An institution must select and consistently apply a discount rate
policy that conforms with generally accepted accounting
principles.
For each deferred compensation agreement to be accounted for in accordance with APB Opinion No. 12, an
institution should calculate the present value of the
expected future benefit payments under the agreement at
the employee’s full eligibility date. The expected future
benefit payments can be reasonably estimated and should
be based on reasonable and supportable assumptions.
The estimated amount of these benefit payments should
be discounted because the benefits will be paid in periodic installments after the employee retires.
For deferred compensation agreements commonly referred to as revenue neutral or indexed retirement plans,5
the expected future benefits should include both the
‘‘primary benefit’’ and, if the employee is entitled to
‘‘excess earnings’’ that are earned after retirement, the
‘‘secondary benefit.’’ The number of periods the primary
13, states in part that the rate used for valuation purposes will normally
be at least equal to the rate at which the debtor can obtain financing of a
similar nature from other sources at the date of the transaction.’
4. FASB Statement No. 106, paragraph 186, states that ‘‘he objective of
selecting assumed discount rates is to measure the single amount that,
if invested at the measurement date in a portfolio of high-quality debt
instruments, would provide the necessary future cash flows to pay the
accumulated benefits when due.’’
5. Revenue neutral and indexed retirement plans are deferred compensation agreements that are typically designed so that the spread each year,
if any, between the tax-equivalent earnings on bank-owned life insurance covering an individual employee and a hypothetical earnings
calculation is deferred and paid to the employee as a postretirement
benefit. This spread is commonly referred to as ‘‘excess earnings.’’ The
hypothetical earnings are computed based on a pre-defined variable
index rate (e.g., cost of funds or federal funds rate) times a notional
amount. The agreement for this type of plan typically requires the
excess earnings that accrue before an employee’s retirement to be
recorded in a separate liability account. Once the employee retires, the
balance in the liability account is generally paid to the employee in
equal annual installments over a set number of years (e.g., 10 or 15
years). These payments are commonly referred to as the ‘‘primary
benefit’’ or ‘‘preretirement benefit.’’ The employee may also receive
the excess earnings that are earned after retirement. This benefit may
continue until his or her death and is commonly referred to as the
‘‘secondary benefit’’ or ‘‘postretirement benefit.’’the secondary benefit
is paid annually, once the employee has retired, in addition to the
primary benefit.

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Glossary

and any secondary benefit payments should be discounted may differ because the discount period for each
type of benefit payment should be based upon the length
of time during which each type of benefit will be paid as
specified in the deferred compensation agreement.
After the present value of the expected future benefit
payments has been determined, an institution should
accrue an amount of compensation expense and a liability each year from the date the employee enters into the
deferred compensation agreement until the full eligibility
date. The amount of these annual accruals should be
sufficient to ensure that a deferred compensation liability
equal to the present value of the expected benefit payments is recorded by the full eligibility date. Any method
of deferred compensation accounting that does not recognize some expense in each year from the date the
employee enters into the agreement until the full eligibility date is not systematic and rational. (For indexed
retirement plans, some expense should be recognized for
the primary benefit and any secondary benefit in each of
these years.)
Vesting provisions should be reviewed to ensure that the
full eligibility date is properly determined because this
date is critical to the measurement of the liability estimate. Because APB Opinion No. 12 requires that the
present value of the expected benefit payments be
recorded by the full eligibility date, institutions also need
to consider changes in market interest rates to appropriately measure deferred compensation liabilities. Therefore, institutions should periodically review their estimates of the expected future benefits under deferred
compensation agreements and the discount rates used to
compute the present value of the expected benefit payments and revise the estimates and rates, when appropriate.
Deferred compensation agreements may include noncompete provisions or provisions requiring employees to
perform consulting services during postretirement years.
If the value of the noncompete provisions cannot be
reasonably and reliably estimated, no value should be
assigned to the noncompete provisions in recognizing the
deferred compensation liability. Institutions should allocate a portion of the future benefit payments to consulting
services to be performed in postretirement years only if
the consulting services are determined to be substantive.
Factors to consider in determining whether postretirement consulting services are substantive include, but are
GL-16

not limited to, whether the services are required to be
performed, whether there is an economic benefit to the
institution, and whether the employee forfeits the benefits
under the agreement for failure to perform such services.
Deferred compensation liabilities should be reported on
the balance sheet in Schedule HC, item 20, ‘‘Other
liabilities,’’ and in Schedule HC-G, item 4, ‘‘Other’’
liabilities. The annual compensation expense (service
component and interest component) related to deferred
compensation agreements should be reported in the
income statement in Schedule HI, item 7(a), ‘‘Salaries
and employee benefits.’’
See also ‘‘Bank-owned life insurance.’’
Deferred Income Taxes: See ‘‘Income taxes.’’
Demand Deposits: See ‘‘Deposits.’’
Depository Institutions: Depository institutions consist
of depository institutions in the U.S. and banks in foreign
countries.
Depository institutions in the U.S. consist of:
(1) U.S. branches and agencies of foreign banks;
(2) U.S.-domiciled head offices and branches of U.S.
banks, i.e.,
(a) national banks,
(b) state-chartered commercial banks,
(c) trust companies that perform a commercial banking business,
(d) industrial banks,
(e) private or unincorporated banks,
(f) Edge and Agreement corporations, and
(g) International Banking Facilities of U.S. depository institutions; and
(3) U.S.-domiciled head offices and branches of other
depository institutions in the U.S., i.e.,
(a) mutual or stock savings banks,
(b) savings or building and loan associations,
(c) cooperative banks,
(d) credit unions,
(e) homestead associations, and
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(f) International Banking Facilities (IBFs) of other
depository institutions in the U.S.; and
(g) other similar depository institutions in the U.S.
Banks in foreign countries consist of foreign branches of
foreign banks and foreign offices of U.S. banks.
See the Glossary entry for ‘‘Banks, U.S. and foreign,’’ for
a definition of foreign banks.
Deposits: The basic statutory and regulatory definitions
of ‘‘deposits’’ are contained in Section 3(1) of the Federal
Deposit Insurance Act and in the Federal Reserve Regulation D. The definitions in these two legal sources differ
in certain respects. Furthermore, for purposes of these
reports, the reporting standards for deposits specified in
these instructions do not strictly follow the precise legal
definitions in these two sources. In addition, deposits for
purposes of this report, include deposits of thrift institutions. The definitions of deposits to be reported in the
deposit items of the Consolidated Financial Statements of
Bank Holding Companies are discussed below under the
following headings:
(I) FDI Act definition of deposits.
(II) Transaction–nontransaction deposit
distinction.
(III) Interest noninterest-bearing deposit
distinction.
(I) FDI Act definition of deposits:
(1) the unpaid balance of money or its equivalent received
or held by a bank in the usual course of business and
for which it has given or is obligated to give credit,
either conditionally or unconditionally, to a commercial, checking, savings, time, or thrift account, or
which is evidenced by its certificate of indebtedness,
or other similar name, or a check or draft drawn
against a deposit account and certified by the bank, or
a letter of credit or a traveler’s check on which the
bank is primarily liable: Provided that, without limiting the generality of the term ‘‘money or its equivalent,’’ any such account or instrument must be
regarded as evidencing the receipt of the equivalent
of money when credited or issued in exchange for
checks or drafts or for a promissory note upon which
the person obtaining any such credit or instrument is
primarily or secondarily liable, or for a charge against
a deposit account, or in settlement of checks, drafts,
or other instruments forwarded to such bank for
collection.
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Glossary March 2007

(2) trust funds as defined in this Act received or held by
such bank, whether held in the trust department or
held or deposited in any other department of such
bank.
(3) money received or held by a bank, or the credit given
for money or its equivalent received or held by a
bank, in the usual course of business for a special or
specific purpose, regardless of the legal relationship
thereby established, including without being limited
to, escrow funds, funds held as security for an
obligation due to the bank or others (including funds
held as dealers reserves) or for securities loaned by
the bank, funds deposited by a debtor to meet
maturing obligations, funds deposited as advance
payment on subscriptions to United States government securities, funds held for distribution or purchase of securities, funds held to meet its acceptances
or letters of credit, and withheld taxes: Provided that
there shall not be included funds which are received
by the bank for immediate application to the reduction of an indebtedness to the receiving bank, or
under condition that the receipt thereof immediately
reduces or extinguishes such an indebtedness.
(4) outstanding draft (including advice or authorization
to charge bank’s balance in another bank), cashier’s
check, money order, or other officer’s check issued in
the usual course of business for any purpose, including without being limited to those issued in payment
for services, dividends, or purchases, and
(5) such other obligations of a bank as the Board of
Directors, after consultation with the Comptroller of
the Currency and the Board of Governors of the
Federal Reserve System, shall find and prescribe by
regulation to be deposit liabilities by general usage.
(II) Transaction–nontransaction deposit distinction:
The Monetary Control Act of 1980 and the current
Federal Reserve Regulation D, ‘‘Reserve Requirements
of Depository institutions,’’ establish, for purposes of
federal reserve requirements on deposit liabilities, a
category of deposits designated as ‘‘transaction accounts’’
All deposits that are not transaction accounts are ‘‘nontransaction accounts.’’
(1) Transaction accounts—With the exceptions noted
below, a ‘‘transaction account,’’ as defined in Regulation D and in these instructions, is a deposit or
account from which the depositor or account holder
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Glossary

is permitted to make transfers or withdrawals by
negotiable or transferable instruments, payment orders
of withdrawal, telephone transfers, or other similar
devices for the purpose of making payments or
transfers to third persons or others or from which the
depositor may make more than six third party payments at an automated teller machine (ATM), a
remote service unit (RSU), or another electronic
device, including by debit card.
Excluded from transaction accounts are savings
deposits (including money market deposit accounts—
MMDAs) as defined below in the nontransaction
account category. However, an account that otherwise meets the definition of savings deposits but that
authorizes or permits the depositor to exceed the
transfer limitations specified for those respective
accounts shall be reported as a transaction account.
(Please refer to the definitions of savings deposits for
further detail.)
Transaction accounts consist of the following types
of deposits: (a) demand deposits; (b) NOW accounts
(including accounts previously designated as ‘‘Super
NOWs’’); (c) ATS accounts; and (d) telephone and
preauthorized transfer accounts. Interest that is paid
by the crediting of transaction accounts is also
included in transaction accounts.
(a) Demand deposits are noninterest-bearing deposits that are payable immediately on demand, or
have an original maturity or required notice
period of less than seven days, or that represent
funds for which the depository institution does
not reserve the right to require at least seven
days’ written notice of an intended withdrawal.
Demand deposits include any matured time deposits without automatic renewal provisions, unless
the deposit agreement provides for the funds to
be transferred at maturity to another type of
account. Demand deposits do not include: (i)
money market deposit accounts (MMDAs) or (ii)
NOW accounts, as defined below in this entry.
(b) NOW accounts are interest-bearing deposits (i) on
which the depository institution has reserved the
right to require at least seven days’ written notice
prior to withdrawal or transfer of any funds in the
account and (ii) that can be withdrawn or transferred to third parties by issuance of a negotiable
or transferable instrument.
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NOW accounts, as authorized by federal law, are
limited to accounts held by:
(i) Individuals or sole proprietorships;
(ii) Organizations that are operated primarily for
religious, philanthropic, charitable, educational, or other similar purposes and that are
not operated for profit. These include organizations, partnerships, corporations, or associations that are not organized for profit
and are described in section 501(c)(3)
through (13) and (19) and section 528 of the
Internal Revenue Code, such as church organizations; professional associations; trade
associations; labor unions; fraternities,
sororities and similar social organizations;
and nonprofit recreational clubs; or
(iii) Governmental units including the federal
government; state governments; county and
municipal governments and their political
subdivisions; the District of Columbia; the
Commonwealth of Puerto Rico, American
Samoa, Guam, and any territory or possession of the United States and their political
subdivisions.
NOTE: There are no regulatory requirements
with respect to minimum balances to be maintained in a NOW account or to the amount of
interest that may be paid on a NOW account.
(c) ATS accounts are deposits or accounts of individuals on which the depository institution has
reserved the right to require at least seven days’
written notice prior to withdrawal or transfer of
any funds in the account and from which, pursuant to written agreement arranged in advance
between the reporting institution and the depositor, withdrawals may be made automatically
through payment to the depository institution
itself or through transfer of credit to a demand
deposit or other account in order to cover checks
or drafts drawn upon the institution or to maintain a specified balance in, or to make periodic
transfers to, such other accounts.
(d) Telephone or preauthorized transfer accounts
consist of deposits or accounts (1) in which the
entire beneficial interest is held by a party eligible to hold a NOW account, (2) on which the
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reporting institution has reserved the right to
require at least seven days’ written notice prior to
withdrawal or transfer of any funds in the account,
and (3) under the terms of which, or by practice
of the reporting institution, the depositor is permitted or authorized to make more than six
withdrawals per month or statement cycle (or
similar period) of at least four weeks for purposes
of transferring funds to another account of the
depositor at the same institution (including a
transaction account) or for making payment to
institution (including a transaction account) or
for making payment to a third party by means of
preauthorized transfer, or telephonic (including
data transmission) agreement, order or instruction. An account that permits or authorizes more
than six such withdrawals in a ‘‘month’’ (a
calendar month or any period approximating a
month that is at least four weeks long, such as a
statement cycle) is a transaction account whether
or not more than six such withdrawals actually
are made in the ‘‘month.’’
A ‘‘preauthorized transfer’’ includes any
arrangement by the reporting institution to pay
a third party from the account of a depositor
(1) upon written or oral instruction (including an
order received through an automated clearing
house (ACH), or (2) at a predetermined time or
on a fixed schedule.
Telephone and preauthorized transfer accounts
also include (1) the balances of deposits or
accounts that otherwise meet the definition of
savings deposits (other than MMDAs) or time
deposits, but from which payments may be made
to third parties by means of a debit card, an
automated teller machine, remote service unit or
other electronic device, regardless of the number
of payments made; and (2) deposits or accounts
maintained in connection with an arrangement
that permits the depositor to obtain credit directly
or indirectly through the drawing of a negotiable
or nonnegotiable check, draft, order or instruction or other similar device (including telephone
or electronic order or instruction) on the issuing
institution that can be used for purposes of
making payments or transfers to third persons
or others, or to another deposit account of the
depositor.
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Telephone or preauthorized transfer accounts do
not include:
(i) Accounts that otherwise meet the definition
of telephone or preauthorized transfer
accounts as defined above but that are held
by a depositor that is not eligible to hold
a NOW account. Such accounts shall be
reported as demand deposits.
(ii) Accounts, regardless of holder, that permit
no more than six telephone or preauthorized
transfers per month to another account of the
depositor at the same institution or to a third
party. (iii)
(iii) All demand deposits, ATS accounts, NOW
accounts, and savings deposits (including
MMDAs), even if telephone or preauthorized transfers are permitted from such
accounts.
(iv) Deposits or accounts (other than savings
deposits) held by individuals from which
more than six transfers per month can
be made to a checking or NOW account
to cover overdrafts. Such accounts are
regarded as ATS accounts, not as telephone
or preauthorized transfer accounts.
(2) Nontransaction accounts—All deposits that are not
transaction accounts (as defined above) are non transaction accounts. Nontransaction accounts include:
(a) savings deposits (including MMDAs and other
savings deposits) and (b) time deposits (time certificates of deposit and time deposits, open account).
(a) Savings deposits are deposits that are not payable
on a specified date or after a specified period of
time from the date of deposit, but for which the
reporting institution expressly reserves the right
to require at least seven days’ written notice
before an intended withdrawal.
Under the terms of the deposit contract or by practice of the depository institution, the depositor is
permitted or authorized to make no more than six
transfers per calendar month or statement cycle
(or similar period) of at least four weeks to
another account (including a transaction account)
of the depositor at the same institution or to a
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third party by means of a preauthorized or automatic transfer or telephonic (including data transmission) agreement, order or instruction and no
more than three of the six such transfers may be
by check, draft, debit card or similar order made
by the depositor and payable to third parties.

rized transfer account, an ATS account, or a
demand deposit, depending first on whether
transfers or withdrawals by check, draft, or
similar instrument are permitted or authorized and, if not, on the types of transfers
allowed and on the type of depositor:

There are no regulatory restrictions on the following types of transfers or withdrawals from a
saving account regardless of the number:

(a) If withdrawals or transfers by check,
draft, or similar instrument are permitted
or authorized, the account is considered a
NOW account.

(1) Transfers for the purpose of repaying loans
and associated expenses at the same depository institution (as originator or servicer).
(2) Transfers of funds from this account to
another account of the same depositor at the
same institution when by mail, messenger,
automated teller machine, or in person.
(3) Withdrawals for payment directly to the
depositor when made by mail, messenger,
automated teller machine, in person, or
by telephone (via check mailed to the
depositor).
Further, savings deposit have no minimum balance is required by regulation, there is no regulatory limitation on the amount of interest that may
be paid, and no minimum maturity is required
(although depository institutions must reserve the
right to require at least seven days’ written notice
prior to withdrawal as stipulated above for a
savings deposit).
Any depository institution may place restrictions
and requirements on savings deposits in addition
to those stipulated above for each respective
account and in Federal Reserve Regulation D.
On the other hand, an account that otherwise
meets the definition of savings deposit but that
authorizes or permits the depositor to exceed the
third-party transfer rule shall be reported as a
transaction account, as follows:
(1) If the depositor is ineligible to hold a NOW
account, such an account is considered a
demand deposit.
(2) If the depositor is eligible to hold a NOW
account, the account will be considered either
a NOW account, a telephone or pre authoGL-20

(b) If withdrawals or transfers by check,
draft, or similar instrument are not permitted or authorized, the nature of the
account is determined first by the type of
transfers authorized or permitted and second by the type of depositor:
(i) If only telephone or preauthorized
transfers are permitted or authorized,
the account is considered a telephone
or preauthorized transfer account.
(ii) If other types of transfers are authorized or permitted (e.g., automatic
transfers), the account type is determined by the type of depositor:
(a) If the depositor is eligible to hold
an ATS account, the account is
considered an ATS account.
(b) If the depositor is ineligible to
hold an ATS account, the account
is considered a demand deposit.
(b) Time deposits are payable on a specified date not
less than seven days after the date of deposit or
payable at the expiration of a specified time not
less than seven days after the date of deposit, or
payable only upon written notice that is actually
required to be given by the depositor not less than
seven days prior to withdrawal. Also, the depositor does not have a right, and is not permitted, to
make withdrawals from time deposits within six
days after the date of deposit unless the deposit is
subject to an early withdrawal penalty of at least
seven days’ simple interest on amounts withdrawn within the first six days after deposit.6 A
6. Accounts existing on March 31, 1986, may satisfy the early withdrawal

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time deposit from which partial early withdrawals are permitted must impose additional early
withdrawal penalties of at least seven days’
simple interest on amounts withdrawn within six
days after each partial withdrawal. If such additional early withdrawal penalties are not imposed,
the account ceases to be a time deposit. The
account may become a savings deposit if it meets
the requirements for a savings deposit; other wise
it becomes a demand deposit.
NOTE: The above prescribed penalties are the
minimum required by Federal Reserve Regulation D. Institutions may choose to require penalties for early withdrawal in excess of the
regulatory minimums.
Time deposits take two forms:
(i) Time certificates of deposit (including rollover certificates of deposit) are deposits
evidenced by a negotiable or nonnegotiable instrument, or a deposit in book
entry form evidenced by a receipt or similar acknowledgement issued by the bank,
that provides, on its face, that the amount
of such deposit is payable to the bearer, to
any specified person, or to the order of a
specified person as follows:
(a) on a certain date not less than seven
days after the date of deposit,
(b) at the expiration of a specified period
not less than seven days after the date
of the deposit, or
(c) upon written notice to the bank which
is to be given not less than seven days
before the date of withdrawal.
(ii) Time deposits, open account are deposits
(other than time certificates of deposit) for
which there is in force a written contract
with the depositor that neither the whole
nor any part of such deposit may be withdrawn prior to:

(a) the date of maturity which shall be not
less than seven days after the date of
the deposit, or
(b) the expiration of a specified period of
written notice of not less than seven
days. These deposits include ‘‘club
accounts.’’ For purposes of the Consolidated Financial Statements of Bank
Holding Companies, ‘‘club accounts’’
consist of accounts, such as Christmas
club and vacation club accounts, made
under written contracts that provide
that no withdrawal shall be made until
a certain number of periodic deposits
have been made during a period of not
less than three months, even though
some of the deposits are made within
six days of the end of such period.
Time deposits do not include the following
categories of liabilities even if they have an
original maturity of seven days or more:
(1) Any deposit or account that otherwise
meets the definition of a time deposit but
that allows withdrawals within the first
six days after deposit and that does not
require an early withdrawal penalty of at
least seven days’ simple interest on
amounts withdrawn within those first six
days. Such deposits or accounts that meet
the definition of a savings deposit shall be
reported as savings deposits; otherwise
they shall be reported as demand deposits.
(2) The remaining balance of a time deposit if
a partial early withdrawal is made and the
remaining balance is not subject to additional early withdrawal penalties of at
least seven days’ simple interest on
amounts withdrawn within six days after
each partial withdrawal. Such time deposits that meet the definition of a savings
deposit shall be reported as savings deposits; otherwise they shall be reported as
demand deposits.
(III) Interest noninterest-bearing deposit distinction:

penalties specified by Federal Reserve Regulation D by meeting the
Depository Institutions Deregulation Committee’s early withdrawal
penalties in existence on March 31, 1986.
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(1) Interest-bearing deposit accounts consist of deposit
accounts on which the issuing depository institution
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Glossary

pays compensation to the holder for the use of the
funds. Such compensation may be in the form of
cash, merchandise, or property or as a credit to an
account. Deposits with a zero percent interest rate
that are issued on a discount basis are to be treated as
interest-bearing. Deposit accounts on which the interest rate is periodically adjusted in response to changes
in market interest rates and other factors should be
reported as interest-bearing even if the rate has been
reduced zero, provided the interest rate on these
accounts can be increased as market conditions
change.
(2) Noninterest-bearing deposit accounts consist of
deposit accounts on which the issuing depository
institution pays no compensation to the holder for the
use of the funds.
Noninterest-bearing deposit accounts include (i)
matured time deposits that are not automatically
renewable (unless the deposit agreement provides for
the funds to be transferred at maturity to another type
of account) and (ii) deposits with a zero percent
stated interest rate that are issued at face value.
See also ‘‘Brokered deposits’’ and ‘‘Hypothecated deposits.’’
Derivative Contracts: Bank holding companies commonly use derivative instruments for managing (positioning or hedging) their exposure to market risk (including
interest rate risk and foreign exchange risk), cash flow
risk, and other risks in their operations and for trading.
The accounting and reporting standards for derivative
instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities
are set forth in FASB Statement No. 133, ‘‘Accounting
for Derivative Instruments and Hedging Activities,’’ as
amended. Statement No. 133 requires all derivatives to
be recognized on the balance sheet as either assets or
liabilities at their fair value. A summary of the principal
provisions of Statement No. 133 follows. For further
information, see Statement No. 133 and the implementation guidance issued by the FASB’s Derivatives Implementation Group, which may be found at the FASB’s
Web site at www.fasb.org.
Statement No. 133 is effective for fiscal years beginning
after June 15, 2000. For purposes of these reports, bank
holding companies must adopt Statement No. 133 upon
the statement’s effective date based on their fiscal year,
with earlier application permitted consistent with the
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statement. Bank holding companies are also expected to
follow the accounting guidance issued by the Derivatives
Implementation Group.
Definition of Derivative
Statement No. 133 defines a ‘‘derivative instrument’’ as a
financial instrument or other contract with all three of the
following characteristics:
(1) It has one or more underlyings (i.e., specified interest
rate, security price, commodity price, foreign
exchange rate, index of prices or rates, or other
variable) and one or more notional amounts (i.e.,
number of currency units, shares, bushels, pounds, or
other units specified in the contract) or payment
provisions or both. These terms determine the amount
of the settlement or settlements, and in some cases,
whether or not a settlement is required.
(2) It requires no initial net investment or an initial net
investment that is smaller than would be required for
other types of contracts that would be expected to
have similar response to changes in market factors.
(3) Its terms require or permit net settlement, it can be
readily settled net by a means outside the contract, or
it provides for delivery of an asset that puts the
recipient in a position not substantially different from
net settlement.
Certain contracts that may meet the definition of a
derivative are specifically excluded from the scope of
Statement No. 133, including:
• ‘‘regular-way’’ securities trades, which are trades that
are completed within the time period generally established by regulations and conventions in the marketplace or by the exchange on which the trade is executed;
• normal purchases and sales of an item other than
a financial instrument or derivative instrument (e.g.,
a commodity) that will be delivered in quantities
expected to be used or sold by the reporting entity over
a reasonable period in the normal course of business;
• traditional life insurance and property and casualty
contracts; and
• certain financial guarantee contracts.
However, a loan commitment may meet Statement
No. 133 definition of a derivative instrument. For example, loan commitments to originate or acquire mortgage
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loans that will be resold as part of an institution’s
mortgage banking operations are derivative instruments.
Types of Derivatives
The most common types of freestanding derivatives are
forward, futures, swaps, options, caps, floors, and collars.
Forward contracts are agreements that obligate two
parties to purchase (long) and sell (short) a specific
financial instrument, foreign currency, or commodity at a
specified price with delivery and settlement at a specified
future date.
Futures contracts are standardized forward contracts that
are traded on organized exchanges. Exchanges in the U.S.
are registered with and regulated by the Commodity
Futures Trading Commission. The deliverable financial
instruments underlying interest-rate future contracts are
specified investment-grade financial instruments, such as
U.S. Treasury securities or mortgage-backed securities.
Foreign currency futures contracts involve specified
deliverable amounts of a particular foreign currency. The
deliverable products under commodity futures contracts
are specified amounts and grades of commodities such as
gold bullion. Equity futures contracts are derivatives that
have a portion of their return linked to the price of a
particular equity or to an index of equity prices, such as
the Standard and Poor’s 500.
Other forward contracts are traded over the counter and
their terms are not standardized. Such contracts can only
be terminated, other than by receipt of the underlying
asset, by agreement of both buyer and seller. A forward
rate agreement is a forward contract that specifies a
reference interest rate and an agreed on interest rate (one
to be paid and one to be received), an assumed principal
amount (the notional amount), and a specific maturity
and settlement date.
Swap contracts are forward-based contracts in which two
parties agree to swap streams of payments over a specified period. The payments are based on an agreed upon
notional principal amount. An interest rate swap generally involves no exchange of principal at inception or
maturity. Rather, the notional amount is used to calculate
the payment streams to be exchanged. However, foreign
exchange swaps often involve the exchange of principal.
Options contracts (standby contracts) are traded on
exchanges and over the counter. Option contracts grant
the right, but do not obligate, the purchaser (holder) to
buy (call) or sell (put) a specific or standard commodity,
FR Y-9C
Glossary March 2007

financial, or equity instrument at a specified price during
a specified period or at a specified date. A purchased
option is a contract in which the buyer has paid compensation (such as a fee or premium) to acquire the right to
sell or purchase an instrument at a stated price on a
specified future date. A written option obligates the
option seller to purchase or sell the instrument at the
option of the buyer of the contract. Option contracts may
relate to purchases or sales of securities, money market
instruments, futures contracts, other financial instruments, or commodities.
Interest rate caps are option contracts in which the cap
seller, in return for a premium, agrees to limit the cap
holder’s risk associated with an increase in interest rates.
If rates go above a specified interest-rate level (the strike
price or cap rate), the cap holder is entitled to receive
cash payments equal to the excess of the market rate over
the strike price multiplied by the notional principal
amount. For example, an issuer of floating-rate debt may
purchase a cap to protect against rising interest rates,
while retaining the ability to benefit from a decline in
rates.
Interest rate floors are option contracts in which the floor
seller, in return for a premium, agrees to limit the risk
associated with a decline in interest rates based on a
notional amount. If rates fall below an agreed rate, the
floor holder will receive cash payments from the floor
writer equal to the difference between the market rate and
an agreed rate, multiplied by the notional principal
amount.
Interest rate collars are option contracts that combine a
cap and a floor (one held and one written). Interest rate
collars enable a user with a floating rate contract to lock
into a predetermined interest-rate range often at a lower
cost than a cap or a floor.
Embedded Derivatives
Contracts that do not in their entirety meet the definition
of a derivative instrument, such as bonds, insurance
policies, and leases, may contain ‘‘embedded’’ derivative
instruments-implicit or explicit terms that affect some or
all of the cash flows or the value of other exchanges
required by the contract in a manner similar to a derivative instrument. The effect of embedding a derivative
instrument in another type of contract (‘‘the host contract’’) is that some or all of the cash flows or other
exchanges that otherwise would be required by the host
contract, whether unconditional or contingent upon the
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Glossary

occurrence of a specified event, will be modified based
on one or more of the underlyings. An embedded derivative instrument shall be separated from the host contract
and accounted for as a derivative instrument if and only if
all of the following conditions are met:
(1) The economic characteristics and risks of the embedded derivative instrument are not clearly and closely
related to the economic characteristics and risks of
the host contract,
(2) The contract (‘‘the hybrid instrument’’) that embodies the embedded derivative and the host contract is
not remeasured at fair value under otherwise applicable generally accepted accounting principles with
changes in fair value reported in earnings as they
occur, and
(3) A separate instrument with the same terms as the
embedded derivative instrument would be a considered a derivative.
An embedded derivative instrument in which the underlying is an interest rate or interest rate index that alters
net interest payments that otherwise would be paid or
received on an interest-bearing host contract is considered to be clearly and closely related to the host contract
unless either of the following conditions exist:
(1) The hybrid instrument can contractually be settled in
such a way that the investor (holder) would not
recover substantially all of its initial recorded investment, or
(2) The embedded derivative could at least double the
investor’s initial rate of return on the host contract
and could also result in a rate of return that is at least
twice what otherwise would be the market return for
a contract that has the same terms as the host contract
and that involves a debtor with a similar credit
quality.
Examples of hybrid instruments (not held for trading
purposes) with embedded derivatives for which separate
accounting would normally be required by Statement No.
133 because the embedded derivative is not considered
clearly and closely related to the economic characteristics
of the host contract include debt instruments (including
deposit liabilities) whose interest rate is indexed to
changes in an equity securities index (e.g., the Standard
& Poor’s 500), to changes in the price of a specific equity
security, or to changes in the price of gold, crude oil, or
GL-24

some other commodity. For purposes of these reports,
when an embedded derivative must be accounted for
separately from the host contract under Statement No.
133, the carrying value of the host contract and the fair
value of the embedded derivative may be combined and
presented together on the balance sheet in the asset or
liability category appropriate to the host contract.
Interest-only and principal-only strips are not subject to
the requirements of Statement No. 133 provided they
(1) initially resulted from seperating the rights to receive
contractual cash flows of a financial instrument that, in
and of itself, did not contain an embedded derivative that
otherwise would have been accounted for separately and
(2) do not incorporate any terms not present in that
original financial instrument. However, questions have
been raised about how this provision of FAS 133 should
be applied in light of other accounting guidance in FASB
Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. As a result, the FASB Board decided that, pending
the issuance of further guidance, institutions should
continue to account for interest-only and principal-only
strips and other beneficial interests in securitizations in
accordance with FAS 140. (For further information, see
Derivatives Implementation Group Issue No. D1, ‘‘Application of Statement 133 to Beneficial Interests in Securitized Financial Assets.’’)
Recognition of Derivatives and
Measurement of Derivatives and Hedged Items
A bank holding company should recognize all of its
derivative instruments on its balance sheet as either
assets or liabilities at fair value. As defined in FASB
Statement No. 133, fair value is the amount at which an
asset (liability) could be bought (incurred) or sold
(settled) in a current transaction between willing parties,
that is, other than in a forced or liquidation sale. Quoted
market prices in active markets are the best evidence of
fair value and should be used as the basis for the
measurement, if available. If a quoted market price is
available, the fair value is the product of the number of
trading units times that market price. If a quoted market
price is not available, the estimate of fair value should be
based on the best information available in the circumstances. The estimate of fair value should consider prices
for similar assets or similar liabilities and the results
of valuation techniques to the extent available in the
circumstances.
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Examples of valuation techniques include the present
value of expected future cash flows using discount rates
commensurate with the risks involved, option-pricing
models, matrix pricing, option-adjusted spread analysis,
and fundamental analysis. Valuation techniques for measuring assets and liabilities should be consistent with the
objective of measuring fair value. Those techniques
should incorporate assumptions that market participants
would use in their estimates of values, future revenues,
and future expenses, including assumptions about interest rates, default, prepayment, and volatility.
If expected future cash flows are used to estimate fair
value, those expected future cash flows should be the best
estimate based on reasonable and supportable projections. All available evidence should be considered in
developing estimates of expected future cash flows. The
weight given to the evidence should be commensurate
with the extent to which the evidence can be objectively
verified. If a range is estimated for either the amount or
the timing of possible cash flows, the likelihood of
possible outcomes should be considered in determining
the best estimate of future cash flows.
The accounting for changes in the fair value (that is,
gains and losses) of a derivative depends on whether it
has been designated and qualifies as part of a hedging
relationship and, if so, on the reason for holding it. Either
all or a proportion of a derivative may be designated as a
hedging instrument. The proportion must be expressed as
a percentage of the entire derivative. Gains and losses on
derivative instruments are accounted for as follows:
(1) No hedging designation—The gain or loss on a
derivative instrument not designated as a hedging
instrument, including all derivatives held for trading
purposes, is recognized currently in earnings.
(2) Fair value hedge—For a derivative designated as
hedging the exposure to changes in the fair value of a
recognized asset or liability or a firm commitment,
which is referred to as a fair value hedge, the gain or
loss on the derivative as well as the offsetting loss or
gain on the hedged item attributable to the risk being
hedged should be recognized currently.
(3) Cash flow hedge—For a derivative designated as
hedging the exposure to variable cash flows of an
existing recognized asset or liability or a forecasted
transaction, which is referred to as a cash flow hedge,
the effective portion of the gain or loss on the
FR Y-9C
Glossary March 2007

derivative should initially be reported outside of
earnings as a component of other comprehensive
income and subsequently reclassified into earnings in
the same period or periods during which the hedged
transaction affects earnings. The remaining gain or
loss on the derivative instrument, if any, (i.e., the
ineffective portion of the gain or loss and any component of the gain or loss excluded from the assessment of hedge effectiveness) should be recognized
currently in earnings.
(4) Foreign currency hedge—For a derivative designated as hedging the foreign currency exposure of a
net investment in a foreign operation, the gain or loss
is reported outside of earnings in other comprehensive income as part of the cumulative translation
adjustment. For a derivative designated as a hedge of
the foreign currency exposure of an unrecognized
firm commitment or an available-for-sale security,
the accounting for a fair value hedge should be
applied. Similarly, for a derivative designated as a
hedge of the foreign currency exposure of a foreigncurrency denominated forecasted transaction, the
accounting for a cash flow hedge should be applied.
To qualify for hedge accounting, the risk being hedged
must represent an exposure to an institution’s earnings.
In general, if the hedged item is a financial asset or
liability, the designated risk being hedged can be (1) all
risks, i.e., the risk of changes in the overall fair value of
the hedged item or the risk of overall changes in the
hedged cash flows; (2) the risk of changes in the fair
value or cash flows of the hedged item attributable to
changes in the benchmark interest rate;7 (3) the risk of
changes in the fair value or cash flows of the hedged
item attributable to changes in foreign exchange rates; or
(4) the risk of changes in the fair value or cash flows of
the hedged item attributable to changes in the obligor’s
creditworthiness. For held- to-maturity securities, only
credit risk, foreign exchange risk, or both may be hedged.
Designated hedging instruments and hedged items qualify
for fair value or cash flow hedge accounting if all of the

7. The benchmark interest rate is a widely recognized and quoted rate in
an active financial market that is broadly indicative of the overall level
of interest rates attributable to high-credit-quality obligors in that market. In theory, this should be a risk-free rate. In the U.S., interest rates
on U.S. Treasury securities and the LIBOR swap rate are considered
benchmark interest rates.

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Glossary

criteria specified in Statement No. 133 are met. These
criteria include:
(1) At inception of the hedge, there is formal documentation of the hedging relationship and the institution’s
risk management objective and strategy for undertaking the hedge, including identification of the hedging
instrument, the hedged item or transaction, the nature
of the risk being hedged, and how the hedging
instrument’s effectiveness will be assessed. There
must be a reasonable basis for how the institution
plans to assess the hedging instrument’s effectiveness.
(2) Both at inception of the hedge and on an ongoing
basis, the hedging relationship is expected to be
highly effective in achieving offsetting changes in
fair value or offsetting cash flows attributable to the
hedged risk during the period that the hedge is
designated or the term of the hedge. An assessment
of effectiveness is required whenever financial statements or earnings are reported, and at least every
three months. All assessments of effectiveness shall
be consistent with the risk management strategy
documented for that particular hedging relationship.
In a fair value hedge, an asset or a liability is eligible for
designation as a hedged item if the hedged item is
specifically identified as either all or a specific portion of
a recognized asset or liability or of an unrecognized firm
commitment, the hedged item is a single asset or liability
(or a specific portion thereof) or is a portfolio of similar
assets or a portfolio of similar liabilities (or a specificportion thereof), and certain other criteria specified in Statement No. 133 are met. If similar assets or similar
liabilities are aggregated and hedged as a portfolio, the
individual assets or individual liabilities must share the
risk exposure for which they are designated as being
hedged. The change in fair value attributable to the
hedged risk for each individual item in a hedged portfolio
must be expected to respond in a generally proportionate
manner to the overall change in fair value of the aggregate portfolio attributable to the hedged risk.
In a cash flow hedge, the individual cash flows related to
a recognized asset or liability and the cash flows related
to a forecasted transaction are both referred to as a
forecasted transaction. Thus, a forecasted transaction is
eligible for designation as a hedged transaction if the
forecasted transaction is specifically identified as a single
transaction or a group of individual transactions, the
occurrence of the forecasted transaction is probable, and
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certain other criteria specified in Statement No. 133 are
met. If the hedged transaction is a group of individual
transactions, those individual transactions must share the
same risk exposure for which they are designated as
being hedged.
An institution should discontinue prospectively its use of
fair value or cash flow hedge accounting for an existing
hedge if any of the qualifying criteria for hedge accounting is no longer met; the derivative expires or is sold,
terminated, or exercised; or the institution removes the
designation of the hedge. When this occurs for a cash
flow hedge, the net gain or loss on the derivative should
remain in ‘‘Accumulated other comprehensive income’’
and be reclassified into earnings in the periods during
which the hedged forecasted transaction affects earnings.
However, if it is probable that the forecasted transaction
will not occur by the end of the originally specified time
period (as documented at the inception of the hedging
relationship) or within an additional two-month period of
time thereafter (except as noted in Statement No. 133),
the derivative gain or loss reported in ‘‘Accumulated
other comprehensive income’’ should be reclassified into
earnings immediately.
For a fair value hedge, in general, if a periodic assessment of hedge effectiveness indicates noncompliance
with the highly effective criterion that must be met in
order to qualify for hedge accounting, an institution
should not recognize adjustment of the carrying amount
of the hedged item for the change in the item’s fair value
attributable to the hedged risk after the last date on
which compliance with the effectiveness criterion was
established.
With certain limited exceptions, a nonderivative instrument, such as a U.S. Treasury security, may not be
designated as a hedging instrument.
Reporting Derivative Contracts
When an institution enters into a derivative contract, it
should classify the derivative as either held for trading or
held for purposes other than trading (end-user derivatives) based on the reasons for entering into the contract.
All derivatives must be reported at fair value on the
balance sheet (Schedule HC).
Trading derivatives with positive fair values should be
reported as trading assets in Schedule HC, item 5.
Trading derivatives with negative fair values should be
reported as trading liabilities in Schedule HC, item 15.
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Changes in the fair value (that is, gains and losses) of
trading derivatives should be recognized currently in
earnings and included in Schedule HI, item 5(c), ‘‘Trading revenue.’’
Freestanding derivatives held for purposes other than
trading (and embedded derivatives that must be accounted
for separately under FASB Statement No. 133, which the
bank holding company has chosen to present separately
from the host contract on the balance sheet) that have
positive fair values should be included in Schedule HC-F,
item 6, ‘‘Other’’ assets. Freestanding derivatives held for
purposes other than trading (and embedded derivatives
that must be accounted for separately under FASB Statement No. 133, which the bank holding company has
chosen to present separately from the host contract on the
balance sheet) that have negative fair values should be
included in Schedule HC-G, item 4, ‘‘Other’’ liabilities.
Net gains (losses) on derivatives held for purposes other
than trading that are not designated as hedging instruments should be recognized currently in earnings and
reported consistently as either ‘‘Other noninterest income’’
or ‘‘Other noninterest expense’’ in Schedule HI, item 5(l)
or item 7(d), respectively.
Netting of derivative assets and liabilities is prohibited on
the balance sheet except as permitted under FASB Interpretation No. 39. See the Glossary entry for ‘‘offsetting.’’
Bank holding companies must report the notional amounts
of their derivative contracts (both freestanding derivatives and embedded derivatives that must be accounted
for separately from their host contract under FASB
Statement No. 133) by risk exposure in Schedule HC-L,
first by type of contract in Schedule HC-L, item 11, and
then by purpose of contract (i.e., trading, other than
trading) in Schedule HC-L, items 12 and 13. Bank
holding companies must report the gross fair values of
their derivatives, both positive and negative, by risk
exposure and purpose of contract in Schedule HC-L, item
14. However, these items exclude credit derivatives, the
notional amounts and gross fair values of which must be
reported in Schedule HC-L, item 7.
Discounts: See ‘‘Premiums and discounts.’’
Dividends: Cash dividends are payments of cash to
stockholders in proportion to the number of shares they
own. Cash dividends on preferred and common stock
are to be reported on the date they are declared by the
bank holding company’s board of directors (the declaration date) by debiting ‘‘retained earnings’’ and crediting
FR Y-9C
Glossary March 2007

‘‘dividends declared not yet payable,’’ which is to be
reported in other liabilities. Upon payment of the dividend, ‘‘dividends declared not yet payable’’ is debited for
the amount of the cash dividend with an offsetting credit,
normally in an equal amount, to ‘‘dividend checks outstanding’’ which is reportable in the ‘‘official checks’’
category of the consolidated bank holding company’s
deposit liabilities.
A liability for dividends payable may not be accrued in
advance of the formal declaration of a dividend by the
board of directors. However, the bank holding company
may segregate a portion of retained earnings in the form
of a capital reserve in anticipation of the declaration of a
dividend.
Stock dividends are distributions of additional shares to
stockholders in proportion to the number of shares they
own. Stock dividends are to be reported by transferring
an amount equal to the fair value of the additional shares
issued from retained earnings to a category of permanent
capitalization (common stock and surplus). However, the
amount of any mandatory and discretionary transfers
must be reduced by the amount of any mandatory and
discretionary transfers previously made (such as those
from retained earnings to surplus for increasing the bank
holding company’s legal lending limit) provided such
transfers have not already been used to record a stock
dividend. In any event, the amount transferred from
retained earnings may not be less than the par or stated
value of the additional shares being issued.
Property dividends, also known as dividends in kind, are
distributions to stockholders of assets other than cash.
The transfer of securities of other companies, real property, or any other asset owned by the reporting bank
holding company to a stockholder or related party is to be
recorded at the fair value of the asset on the declaration
date of the dividend. A gain or loss on the transferred
asset must be recognized in the same manner as if the
property had been disposed of in an outright sale at or
near the declaration date.
Domestic Office: For purposes of these reports, a domestic office of the reporting bank holding company is a
branch or consolidated subsidiary (other than an Edge or
Agreement subsidiary) located in the 50 states of the
United States or the District of Columbia or a branch on a
U.S. military facility wherever located. However, if the
reporting bank holding company is chartered and headquartered in Puerto Rico or a U.S. territory or possession,
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Glossary

a branch or consolidated subsidiary located in the 50
states of the United States, the District of Columbia,
Puerto Rico, or a U.S. territory or possession is a
domestic office. The domestic offices of the reporting
bank holding company exclude all International Banking
Facilities (IBFs); all offices of Edge and Agreement
subsidiaries, including their U.S. offices; and all branches
and other consolidated subsidiaries of the bank holding
company located in foreign countries.
Domicile: Domicile is used to determine the foreign
(non-U.S. addressee) or domestic (U.S. addressee) location of a customer of the reporting bank holding company
for the purposes of these reports. Domicile is determined
by the principal residence address of an individual or the
principal business address of a corporation, partnership,
or sole proprietorship. If other addresses are used for
correspondence or other purposes, only the principal
address, insofar as it is known to the reporting bank
holding company, should be used in determining whether
a customer should be regarded as a U.S. or non-U.S.
addressee.
For purposes of defining customers of the reporting bank
holding company, U.S. addressees include residents of
the 50 states of the United States, the District of Columbia, Puerto Rico, and U.S. territories and possessions.
The term U.S. addressee generally includes U.S.-based
subsidiaries of foreign banks and U.S. branches and
agencies of foreign banks. Non-U.S. addressees include
residents of any foreign country. The term non-U.S.
addressee generally includes foreign-based subsidiaries
of other U.S. banks and bank holding companies.
For customer identification purposes, the IBFs of other
U.S. depository institutions are U.S. addressees. (This is
in contrast to the treatment of the IBFs of a subsidiary
bank which are treated as foreign offices of the bank.)
Due Bills: A due bill is an obligation that results when a
bank holding company or its subsidiaries sell an asset
and receives payment, but does not deliver the security
or other asset. A due bill can also result from a promise
to deliver an asset in exchange for value received. In
both cases, the receipt of the payment creates an obligation regardless of whether the due bill is issued in written
form. Outstanding due bill obligations shall be reported
as borrowings in Schedule HC, item 16, ‘‘Other borrowed money,’’ by the issuing bank holding company.
Conversely, when the reporting bank holding company
or its consolidated subsidiaries are the holders of a due
GL-28

bill, the outstanding due bill obligation of the seller shall
be reported as a loan to that party.
Edge and Agreement Corporation: An Edge corporation is a federally-chartered corporation organized under
Section 25(a) of the Federal Reserve Act and subject
to Federal Reserve Regulation K. Edge corporations are
allowed to engage only in international banking or other
financial transactions related to international business.
An Agreement corporation is a state-chartered corporation that has agreed to operate as if it were organized
under Section 25 of the Federal Reserve Act and has
agreed to be subject to Federal Reserve Regulation K.
Agreement corporations are restricted, in general, to
international banking operations. Banks must apply to
the Federal Reserve for permission to acquire stock in an
Agreement corporation.
An Edge or Agreement subsidiary of the consolidated
bank holding company, i.e., the majority-owned Edge or
Agreement corporation of the consolidated bank holding
company, is treated for purposes of these reports as a
‘‘foreign’’ office of the reporting bank holding company.
Equity-Indexed Certificates of Deposit: Under FASB
Statement No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended, a certificate
of deposit that pays ‘‘interest’’ based on changes in an
equity securities index is a hybrid instrument with an
embedded derivative that must be accounted for separately from the host contract, i.e., the certificate of
deposit. For further information, see the Glossary entry
for ‘‘Derivative Contracts.’’ Examples of equity-indexed
certificates of deposit include the ‘‘Index Powered CD’’
and the ‘‘Dow Jones Industrials Indexed Certificate of
Deposit.’’
At the maturity date of a typical equity-indexed certificate of deposit, the holder of the certificate of deposit
receives the original amount invested in the deposit plus
some or all of the appreciation, if any, in an index of
stock prices over the term of the certificate of deposit.
Thus, the equity-indexed certificate of deposit contains
an embedded equity call option. To manage the market
risk of its equity-indexed certificates of deposit, an
institution that issues these deposits normally enters into
one or more separate freestanding equity derivative
contracts with an overall term that matches the term of
the certificates of deposit. At maturity, these separate
derivatives are expected to provide the institution with a
cash payment in an amount equal to the amount of
Glossary

FR Y-9C
March 2007

Glossary

appreciation, if any, in the same stock price index that is
embedded in the certificates of deposit, thereby providing
the institution with the funds to pay the “interest” on the
equity-indexed certificates of deposit. During the term of
the separate freestanding equity derivative contracts, the
institution will periodically make either fixed or variable
payments to the counterparty on these contracts.
When an institution issues an equity-indexed certificate
of deposit, it must account for the written equity call
option embedded in the deposit separately from the
certificate of deposit host contract. The fair value of this
embedded derivative on the date the certificate of deposit
is issued must be deducted from the amount the purchaser invested in the deposit, creating a discount on the
certificate of deposit that must be amortized to interest
expense over the term of the deposit using the effective
interest method. This interest expense should be reported
in the income statement in the appropriate subitem of
Schedule HI, item 2(a), ‘‘Interest on deposits.’’ The
equity call option must be ‘‘marked to market’’ at least
quarterly with any changes in the fair value of the option
recognized in earnings. On the balance sheet, the carrying value of the certificate of deposit host contract and
the fair value of the embedded equity derivative may be
combined and reported together as a deposit liability on
the balance sheet (Schedule HC) and in the deposit
schedule (Schedule HC-E). As for the separate freestanding derivative contracts the institution enters into to
manage its market risk, these derivatives must be carried
on the balance sheet as assets or liabilities at fair value
and “marked to market” at least quarterly with changes in
their fair value recognized in earnings. The fair value of
the freestanding derivatives should not be netted against
the fair value of the embedded equity derivatives for
balance sheet purposes because these two derivatives
have different counterparties. The periodic payments to
the counterparty on these freestanding derivatives must
be accrued with the expense reported in earnings along
with the change in the derivative’s fair value. In the
income statement (Schedule HI), the changes in the fair
value of the embedded and freestanding derivatives,
including the effect of the accruals for the payments to
the counterparty on the freestanding derivatives, should
be netted and reported consistently in either item 5(l),
‘‘Other noninterest income,’’ or item 7(d), ‘‘Other noninterest expense.’’
The notional amount of the embedded equity call option
must be reported in Schedule HC-L, item 11(d)(1),
FR Y-9C
Glossary March 2007

column C. The notional amount of the freestanding
equity derivative must be reported in the appropriate
subitem of Schedule HC-L, item 11, column C (e.g., item
11(e), column C, if it is an equity swap). The notional
amounts of both derivatives must also be included in
Schedule HC-L, item 13, column C. The fair values of
these two derivative contracts must be included in the
appropriate subitems of Schedule HC-L, item 14(b),
column C. The equity derivative embedded in the indexed
certificate of deposit is a written option, which is not
covered by the Federal Reserve’s risk-based capital
standards. However, the freestanding equity derivative is
covered by these standards.
An institution that purchases an equity-indexed certificate of deposit for investment purposes must account for
the embedded purchased equity call option separately
from the certificate of deposit host contract. The fair
value of this embedded derivative on the date of purchase
must be deducted from the purchase price of the certificate, creating a discount on the deposit that must be
accreted into income over the term of the deposit using
the effective interest method. This accretion should be
reported in the income statement in Schedule HI, item
1(c). The embedded equity derivative must be ‘‘marked
to market’’ at least quarterly with any changes in its fair
value recognized in earnings. These fair value changes
should be reported consistently in Schedule HI in either
item 5(l), ‘‘Other noninterest income,’’ or item 7(d),
‘‘Other noninterest expense.’’ The carrying value of the
certificate of deposit host contract and the fair value of
the embedded equity derivative may be combined and
reported together as interest-bearing balances due from
other depository institutions on the balance sheet in
Schedule HC, item 1(b). The notional amount of the
embedded derivative must be reported in Schedule HC-L,
item 11(d)(2), column C, and item 13, column C, and its
fair value (which will always be positive or zero, but not
negative) must be reported in Schedule HC-L, item
14(b)(1), column C. The embedded equity derivative in
the indexed certificate of deposit is a purchased option,
which is subject to the Federal Reserve’s risk-based
capital standards.
Equity Method of Accounting: The equity method of
accounting is used to account for investments in subsidiaries that have not been consolidated; associated companies; and corporate joint ventures, unincorporated joint
ventures, general partnerships, and limited partnerships
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Glossary

over which the bank holding company exercises significant influence (collectively referred to as ‘‘investees’’).
Under the equity method, the carrying value a bank
holding company’s investment in an investee is originally recorded at cost but is adjusted periodically to
record as income the bank holding company’s proportionate share of the investee’s earnings or losses and
decreased by the amount of cash dividends or similar
distributions received from the investee. For purposes of
the FR Y-9C report, the date through which the carrying
value of the bank holding company’s investment in an
investee has been adjusted should, to the extent practicable, match the report date of the FR Y-9C, but in no
case differ by more than 93 days from the report.
See also ‘‘subsidiaries.’’
Extinguisments of Liabilities: The accounting and
reporting standards for extinguishments of liabilities are
set forth in FASB Statement No. 140, Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. Under Statement No. 140, a
bank holding company should remove a previously recognized liability from its balance sheet if and only if the
liability has been extinguished. A liability has been
extinguished if either of the following conditions are met:
(1) The bank holding company pays the creditor and is
relieved of its obligation for the liability. Paying the
creditor includes delivering cash, other financial
assets, goods, or services or the bank holding company’s reacquiring its outstanding debt.
(2) The bank holding company is legally released from
being the primary obligor under the liability, either
judicially or by the creditor.
Except for those unusual and infrequent gains and losses
that qualify as extraordinary under the criteria in APB
Opinion No. 30, bank holding companies should aggregate their gains and losses from the extinguishment
ofliabilities (debt), including losses resulting from the
payment of prepayment penalties on borrowings such as
Federal Home Loan Bank advances, and consistently
report the net amount in item 7(d), ‘‘Other noninterest
expense,’’ of the income statement (Schedule HI). Only if
a bank holding company’s debt extinguishments normally result in net gains over time should the bank
holding company consistently report its net gains (losses)
in Schedule HI, item 5(l), ‘‘Other noninterest income.’’
GL-30

In addition, under FASB Emerging Issues Task Force
(EITF) Issue No. 96-19, Debtor’s Accounting for a
Modification or Exchange of Debt Instruments, the
accounting for the gain or loss on the modification or
exchange of debt depends on whether the original and the
new debt instruments are substantially different. If they
are substantially different, the transaction is treated as an
extinguishment of debt and the gain or loss on the
modification or exchange is reported immediately in
earnings as discussed in the preceding paragraph. If the
original and new debt instruments are not substantially
different, the gain or loss on the modification or replacement of the debt is deferred and recognized over time as
an adjustment to the interest expense on the new borrowing. EITF Issue No. 96-19 provides guidance on how to
determine whether the original and the new debt instruments are substantially different.
Extraordinary Items: Extraordinary items are material
events and transactions that are (1) unusual and (2) infrequent. Both of those conditions must exist in order for an
event or transaction to be reported as an extraordinary
item.
To be unusual, an event or transaction must be highly
abnormal or clearly unrelated to the ordinary and typical
activities of bank holding companies. An event or transaction which is beyond bank holding company’s management’s control is not automatically considered to be
unusual.
To be infrequent, an event or transaction should not
reasonably be expected to recur in the foreseeable future.
Although the past occurrence of an event or transaction
provides a basis for estimating the likelihood of its future
occurrence, the absence of a past occurrence does not
automatically imply that an event or transaction is
infrequent.
Only a limited number of events or transactions qualify
for treatment as extraordinary items. Among these are
losses which result directly from a major disaster such as
an earthquake (except in areas where earthquakes are
expected to recur in the foreseeable future), an expropriation, or a prohibition under a newly enacted law or
regulation.
For further information, see APB Opinion No. 30,
Reporting the Results of Operations.
Fails: When a bank holding company or its subsidiaries
have sold an asset and, on settlement date, do not deliver
Glossary

FR Y-9C
March 2007

Glossary

the security or other asset and do not receive payment, a
sales fail exists. When a bank holding company or its
subsidiaries have purchased a security or other asset and,
on settlement date, do not receive the asset and do not
pay for it, a purchase fail exists. Fails do not affect the
way securities are reported in the FR Y-9C. However, the
receivable from a Fail should be reported in other assets.
Likewise a payable from a Fail should be reported in
other liabilities.
Fair Value: The accounting standard for fair value
measurements that should be applied in accounting pronouncements that require or permit fair value measurements is FASB Statement No. 157, “Fair Value Measurements” (FAS 157). For further information, refer to
FASB Statement No. 157.
FAS 157 defines fair value and establishes a framework
for measuring fair value. The definition of fair value for
an asset or liability is the price that would be received to
sell the asset or paid to transfer the liability in an orderly
transaction between market participants (not a forced
liquidation or distressed sale) in the asset’s or liability’s
principal (or most advantageous) market at the measurement date. The transaction is assumed to occur based on
an exit price notion versus an entry price.
FAS 157 establishes a three level fair value hierarchy that
prioritizes inputs used to measure fair value. The highest
priority is given to Level 1 and the lowest priority to
Level 3.
Level 1 fair value measurement inputs are quoted prices
(unadjusted) in active markets for identical assets or
liabilities that a bank holding company has the ability to
access at the measurement date. An active market for the
asset or liability is a market in which transactions for the
asset or liability occur with sufficient frequency and
volume to provide pricing information on an ongoing
basis.
Level 2 fair value measurement inputs are inputs other
than quoted prices included within Level 1 that are
observable for the asset or liability, either directly or
indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for
substantially the full term of the asset or liability.
Depending on the specific factors related to an asset or a
liability, certain adjustments to Level 2 inputs may be
necessary to determine the fair value of the asset or
liability. If those adjustments are significant to the asset
or liability’s fair value in its entirety, the adjustments
FR Y-9C
Glossary March 2007

may render the fair value hierarchy classification to a
Level 3 fair value measurement rather than a Level 2 fair
value measurement.
Level 3 fair value measurement inputs are unobservable
inputs for the asset or liability. Although these inputs
may not be readily observable in the market, the fair
value measurement objective is, nonetheless, to obtain an
exit price for the asset or liability from the perspective of
a market participant. Therefore, Level 3 fair value measurement inputs should reflect the bank holding company’s own assumptions about the assumptions that a
market participant would use in pricing an asset or
liability and should be based on the best information
available in the circumstances.
FAS 157 is effective for financial statements issued for
fiscal years beginning after November 15, 2007, and
interim periods within those fiscal years. Earlier application is permitted, provided that the bank holding company has not yet issued financial statements for that fiscal
year, including financial statements or Consolidated
Financial Statements for Bank Holding Companies for an
interim period within that fiscal year. For purposes of
these reports, bank holding companies must adopt FAS
157 upon the statement’s effective date based on their
fiscal year, with earlier application permitted consistent
with the statement.
Federal Funds Transactions: For purposes of the FR Y9C, federal funds transactions involve the lending (federal funds sold) or borrowing (federal funds purchased)
in domestic offices of immediately available funds under
agreements or contracts that have an original maturity of
one business day or roll over under a continuing contract. However, funds lent or borrowed in the form of
securities resale or repurchase agreements, due bills,
borrowings from the Discount and Credit Department of
a Federal Reserve Bank, deposits with and advances
from a Federal Home Loan Bank, and overnight loans for
commercial and industrial purposes are excluded from
federal funds. Transactions that are to be reported as
federal funds transactions may be secured or unsecured
or may involve an agreement to resell loans or other
instruments that are not securities.
Immediately available funds are funds that the purchasing bank holding company can either use or dispose of on
the same business day that the transaction giving rise to
the receipt or disposal of the funds is executed.
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Glossary

The borrowing and lending of immediately available
funds have an original maturity of one business day if the
funds borrowed on one business day are to be repaid or
the transaction reversed on the next business day, that is,
if immediately available funds borrowed today are to be
repaid tomorrow (in tomorrow’s immediately available
funds). Such transactions include those made on a Friday
to mature or be reversed the following Monday and those
made on the last business day prior to a holiday (for
either or both of the parties to the transaction) to mature
or be reversed on the first business day following the
holiday.
A continuing contract is a contract or agreement that
remains in effect for more than one business day but has
no specified maturity and does not require advance notice
of either party to terminate. Such contracts may also be
known as rollovers or as open-ended agreements.
Federal funds may take the form of the following two
types of transactions in domestic offices provided that the
transactions meet the above criteria (i.e., immediately
available funds with an original maturity of one business
day or under a continuing contract):

Land Banks, the Federal National Mortgage Association,
and the Student Loan Marketing Association.
Fees, Loan: See ‘‘Loan fees.’’
Foreclosed Assets: The accounting and reporting standards for foreclosed assets are set forth in FASB Statement No, 15 Accounting by Debtors and Creditors for
Troubled Debt Restructurings, and FASB Statement
No. 144, Accounting for the Impairment or Disposal of
Long-Lived Assets. Subsequent to the issuance of FASB
Statement No. 144, AICPA Statement of Position (SOP)
No. 92-3, Accounting for Foreclosed Assets was rescinded. Certain provisions of SOP 92-3 are not present
in FASB Statement No. 144, but the application of these
provisions represents prevalent practice in the banking
industry and is consistent with safe and sound banking
practices. These provisions of SOP 92-3 have been
incorporated into this Glossary entry, which bank holding
companies must follow for purposes of preparing their
FR Y-9C reports.

Any borrowing or lending of immediately available
funds in domestic offices that has an original maturity of
more than one business day, other than security repurchase or resale agreements, is to be treated as a borrowing or as a loan, not as federal funds. Such transactions
are sometimes referred to as ‘‘term federal funds.’’

A bank holding company that receives from a borrower
in full satisfaction of a loan either a receivable from a
third party, an equity interest in the borrower, or another
type of asset (except a long-lived asset that will be sold)
shall account for the asset received at its fair value at the
time of the restructuring. When a bank holding company
receives a long-lived asset, such as real estate, from a
borrower in full satisfaction of a loan, the long-lived asset
is rebuttably presumed to be held for sale and the bank
holding company shall account for this asset at its fair
value less cost to sell. This fair value (less cost to sell)
becomes the ‘‘cost’’ of the foreclosed asset. The amount,
if any, by which the recorded amount of the loan exceeds
the fair value (less cost to sell) of the asset is a loss which
must be charged to the allowance for loan and lease
losses at the time of foreclosure or repossession. (The
recorded amount of the loan is the loan balance adjusted
for any unamortized premium or discount and unamortized loan fees or costs, less any amount previously
charged off, plus recorded accrued interest.)

Federally-Sponsored Lending Agency: A federallysponsored lending agency is an agency or corporation
that has been chartered, authorized, or organized as a
result of federal legislation for the purpose of providing
credit services to a designated sector of the economy.
These agencies include Banks for Cooperatives, Federal
Home Loan Banks, the Federal Home Loan Mortgage
Corporation, Federal Intermediate Credit Banks, Federal

If an asset is sold shortly after it is received in a
foreclosure or repossession, it would generally be appropriate to substitute the value received in the sale (net of
the cost to sell for long-lived assets that will be sold such
as real estate) for the fair value (less cost to sell for
long-lived assets that will be sold such as real estate) that
had been estimated at the time of foreclosure or repossession. Any adjustments should be made to the loss charged

(1) Unsecured loans (federal funds sold) or borrowings
(federal funds purchased). (In some market usage,
the term ‘‘fed funds’’ or ‘‘pure fed funds’’ is confined
to unsecured loans of immediately available balances.)
(2) Purchases (sales) of financial assets (other than securities) under agreements to resell (repurchase) that
have original maturities of one business day (or are
under continuing contracts) and are in immediately
available funds.

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FR Y-9C
March 2007

Glossary

against the allowance. In those cases where property is
received in full satisfaction of an asset other than a loan
(e.g., a debt security), the loss should be reported on the
income statement in a manner consistent with the balance
sheet classification of the asset satisfied.
An asset received in partial satisfaction of a loan should
be accounted for as described above and the recorded
amount of the loan should be reduced by the fair value
(less cost to sell) of the asset at the time of foreclosure.
For purposes of this report, foreclosed assets include
loans where the bank holding company, as creditor, has
received physical possession of a borrower’s assets,
regardless of whether formal foreclosure proceedings
take place. In such situations, the secured loan should be
recategorized on the balance sheet in the asset category
appropriate to the underlying collateral (e.g., as other real
estate owned for real estate collateral) and accounted for
as described above.
The amount of any senior debt (principal and accrued
interest) to which foreclosed real estate is subject at the
time of foreclosure must be reported as a liability in
Schedule HC, items 16, ‘‘Other borrowed money.’’
After foreclosure, each foreclosed real estate asset (including any real estate for which the bank holding company
receives physical possession, regardless of whether formal foreclosure proceedings take place) must be carried
at the lower of (1) the fair value of the asset minus the
estimated costs to sell the asset or (2) the cost of the asset
(as defined in the preceding paragraphs). This determination must be made on an asset-by-asset basis. If the fair
value of a foreclosed real estate asset minus the estimated
costs to sell the asset is less than the asset’s cost, the
deficiency must be recognized as a valuation allowance
against the asset which is created through a charge to
expense. The valuation allowance should thereafter be
increased or decreased (but not below zero) through
charges or credits to expense for changes in the asset’s
fair value or estimated selling costs.
If a foreclosed real estate asset is held for more than a
short period of time, any declines in value after foreclosure and any gain or loss from the sale or disposition of
the asset shall not be reported as a loan or lease loss or
recovery and shall not be debited or credited to the
allowance for loan and lease losses. Such additional
declines in value and the gain or loss from the sale or
disposition shall be reported net on the income statement
FR Y-9C
Glossary March 2007

(Schedule HI) as ‘‘other noninterest income’’ or ‘‘other
noninterest expense.’’
Dispositions of Foreclosed Real Estate—The primary
accounting guidarce for sales of foreclosed real estate is
FASB Statement No. 66, Accounting for Sales of Real
Estate. This standard, which applies to all transactions in
which the seller provides financing to the buyer of the
real estate, establishes the following methods to account
for dispositions of real estate. If a profit is involved in the
sale of real estate, each method sets forth the manner in
which the profit is to be recognized. Regardless of which
method is used, however, any losses on the disposition of
real estate should be recognized immediately.
Full Accrual Method—Under the full accrual method, the
disposition is recorded as a sale. Any profit resulting
from the sale is recognized in full and the asset resulting
from the seller’s financing of the transaction is reported
as a loan. This method may be used when the following
conditions have been met:
(1) A sale has been consummated;
(2) The buyer’s initial investment (down payment) and
continuing investment (periodic payments) are adequate to demonstrate a commitment to pay for the
property;
(3) The receivable is not subject to future subordination;
and
(4) The usual risks and rewards of ownership have been
transferred.
Guidelines for the minimum down payment that must be
made in order for a transaction to qualify for the full
accrual method are set forth in the Appendix A to FASB
Statement No. 66. These vary from five percent to
25 percent of the property’s sales value. These guideline
percentages vary by type of property and are primarily
based on the inherent risk assumed for the types and
characteristics of the property. To meet the continuing
investment criteria, the contractual loan payments must
be sufficient to repay the loans over the customary loan
term for the type of property involved. Such periods may
range up to 30 years for loans on single family residential
property.
Installment Method—Dispositions of foreclosed real
estate that do not qualify for the full accrual method may
qualify for the installment method. This method recognizes a sale and the corresponding loan. Any profits on
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Glossary

the sale are only recognized as the bank holding company
receives payments from the purchaser/borrower. Interest
income is recognized on an accrual basis, when appropriate.
The installment method is used when the buyer’s down
payment is not adequate to allow use of the full accrual
method but recovery of the cost of the property is
reasonably assured if the buyer defaults. Assurance of
recovery requires careful judgment on a case-by-case
basis. Factors which should be considered include: the
size of the down payment, loan-to-value ratios, projected
cash flows from the property, recourse provisions, and
guarantees.
Since default on the loan usually results in the seller’s
reacquisition of the real estate, reasonable assurance of
cost recovery may often be achieved with a relatively
small down payment. This is especially true in situations
involving loans with recourse to borrowers who have
verifiable net worth, liquid assets, and income levels.
Reasonable assurance of cost recovery may also be
achieved when the purchaser/borrower pledges additional collateral.
Cost Recovery Method—Dispositions of foreclosed real
estate that do not qualify for either the full accrual or
installment methods are sometimes accounted for using
the cost recovery method. This method recognizes a sale
and the corresponding loans but all income recognition is
deferred. Principal payments are applied as a reduction of
the loan balance and interest increases the unrecognized
gross profit. No profit or interest income is recognized
until either the aggregate payments by the borrower
exceed the recorded amount of the loan or a change to
another accounting method is appropriate (e.g., installment method). Consequently, the loan is maintained in
nonaccrual status while this method is being used.
Reduced-Profit Method—This method is used in certain
situations where the bank holding company receives an
adequate down payment, but the loan amortization schedule does not meet the requirements for use of the full
accrual method. The method recognizes a sale and the
corresponding loan. However, like the installment method,
any profit is apportioned over the life of the loan as
payments are received. The method of apportionment
differs from the installment method in that profit recogni
tion is based on the present value of the lowest level of
periodic payments required under the loan agreement.
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Since sales with adequate down payments are generally
not structured with inadequate loan amortization requirements, this method is seldom used in practice.
Deposit Method—The deposit method is used in situations where a sale of the foreclosed real estate has not
been consummated. It may also be used for dispositions
that could be accounted for under the cost recovery
method. Under this method a sale is not recorded and the
asset continues to be reported as foreclosed real estate.
Further, no profit or interest income is recognized. Payments received from the borrower are reported as a
liability until sufficient payments or other events have
occurred which allow the use of one of the other methods.
The preceding discussion represents a brief summary of
the methods included in FASB Statement No. 66 for
accounting for sales of real estate. Refer to FASB Statement No. 66 for a more complete description of the
accounting principles that apply to sales of real estate,
including the determination of the down payment
percentage.
Foreign Banks: See ‘‘Banks, U.S. and foreign.’’
Foreign Central Banks: The term ‘‘foreign central
banks’’ covers: central banks in foreign countries; departments of foreign central governments that have, as an
important part of their functions, activities similar to
those of a central bank; nationalized banks and banking
institutions owned by central governments that have, as
an important part of their functions, activities similar to
those of a central bank; and the Bank for International
Settlements (BIS).
Foreign Currency Transactions and Translation: Foreign currency transactions are transactions occurring in
the ordinary course of business (e.g., purchases, sales,
borrowings, lendings, forward exchange contracts)
denominated in currencies other than the office’s functional currency (as described below).
Foreign currency translation, on the other hand, is the
process of translating financial statements from the foreign office’s functional currency into the reporting currency. Such translation normally is performed only at
reporting dates.
A functional currency is the currency of the primary
economic environment in which an office operates. For
most consolidated bank holding companies, the functional currency will be the U.S. dollar. However, if a
consolidated bank holding company has foreign offices,
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Glossary

one or more foreign offices may have a functional
currency other than the U.S. dollar.
Accounting for foreign currency transactions—A change
in exchange rates between the functional currency and
the currency in which a transaction is denominated will
increase or decrease the amount of the functional currency expected to be received or paid. These increases or
decreases in the expected functional currency cash flow
are to be reported as foreign currency transaction gains
and losses and are to be included in the determination of
the income of the period in which the transaction takes
place, or if the transaction has not yet settled, the period
in which the rate change takes place.
Except for foreign currency derivatives and transactions
described in the following section, bank holding companies should consistently report net gains (losses) from
foreign currency transactions other than trading transactions in Schedule HI, item 5(l), ‘‘Other noninterest
income,’’ or item 7(d), ‘‘Other noninterest expense.’’ Net
gains (losses) from foreign currency trading transactions
should be reported in Schedule HI, item 5(c), ‘‘Trading
revenue.’’
Foreign currency transaction gains or losses to be
excluded from the determination of net income—Gains
and losses on the following foreign currency transactions
shall not be included in ‘‘Noninterest income’’ or ‘‘Noninterest expense,’’ but shall be reported in the same
manner as translation adjustments (as described below):
(1) Foreign currency transactions that are designated as,
and are effective as, economic hedges of a net
investment in a foreign office.
(2) Intercompany foreign currency transactions that are
of a long-term investment nature (i.e., settlement is
not planned or anticipated in the foreseeable future),
when the parties to the transaction are consolidated,
combined, or accounted for by the equity method in
the bank holding company’s FR Y-9C.
In addition, the entire change in the fair value of foreigncurrency-denominated available-for-sale debt securities
should not be included in ‘‘Realized gains (losses) on
available-for-sale debt securities’’ (Schedule HI, item
6(b)), but should be reported in Schedule HI-A, item 12,
‘‘Other comprehensive income.’’ These fair value changes
should be accumulated in the ‘‘Net unrealized holding
gains (losses) on available-for-sale securities’’ component of ‘‘Accumulated other comprehensive income’’ in
FR Y-9C
Glossary March 2007

Schedule HC, item 26(b). However, if a decline in fair
value of a foreign-currency-denominated available-forsale debt security is judged to be other than temporary,
the cost basis of the individual security shall be written
down to fair value as a new cost basis and the amount of
the write-down shall be included in earnings (Schedule
HI, item 6(b)).
See the Glossary entry for ‘‘derivative contracts’’ for
information on the accounting and reporting for foreign
currency derivatives.
Accounting for foreign currency translation (applicable
only to bank holding companies with foreign offices)—
The FR Y-9C must be reported in U.S. dollars. Balances
of foreign subsidiaries or branches of the reporting bank
holding company denominated in a functional currency
other than U.S. dollars shall be converted to U.S. dollar
equivalents and consolidated into the reporting bank
holding company’s FR Y-9C. The translation adjustments for each reporting period, determined utilizing the
current rate method, may be reported in ‘‘Other comprehensive income’’ in Schedule HI-A of the Report of
Income for Bank Holding Companies. Amounts accumulated in the ‘‘Accumulated other comprehensive income’’
component of equity capital in Schedule HC will not be
included in the bank holding company’s results of operations until such time as the foreign office is disposed of,
when they will be used as an element to determine the
gain or loss on disposition.
For further guidance, refer to FASB Statement No. 52,
‘‘Foreign Currency Translation.’’
Foreign Debt Exchange Transactions: Foreign debt
exchange transactions generally fall into three categories:
(1) loan swaps, (2) debt/equity swaps, and (3) debt-fordevelopment swaps. These transactions are to be reported
in the FR Y-9C in accordance with generally accepted
accounting principles as summarized below. The accounting pronouncements mentioned below should be consulted for more detailed reporting guidance in these
areas.
Generally accepted accounting principles require that
these transactions be reported at their fair value. There is
a significant amount of precedent in the accounting for
exchange transactions to consider both the fair value of
the consideration given up as well as the fair value of the
assets received in arriving at the most informed valuation, especially if the value of the consideration given up
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is not readily determinable or may not be a good indicator of the value received. It is the responsibility of
management to make the valuation considering all of the
circumstances. Such valuations are subject to examiner
review.
Among the factors to consider in determining fair values
for foreign debt exchange transactions are:
(1) Similar transactions for cash;
(2) Estimated cash flows from the debt or equity instruments or other assets received;
(3) Market values, if any, of similar instruments; and
(4) Currency restrictions, if any, affecting payments on
or sales of the debt or equity instruments, local
currency, or other assets received, including where
appropriate those affecting the repatriation of capital.
Losses arise from swap transactions when the fair value
determined for the transaction is less than the recorded
investment in the sovereign debt and other consideration
paid, if any. Such losses should generally be charged to
the allowance for loan and lease losses (or allocated
transfer risk reserve, if appropriate) and must include any
discounts from official exchange rates that are imposed
by sovereign obligors as transaction fees. All other fees
and transaction costs involved in such transactions must
be charged to expense as incurred.
Loss recoveries or even gains might be indicated in a
swap transaction as a result of the valuation process.
However, due to the subjective nature of the valuation
process, such loss recoveries or gains ordinarily should
not be recorded until the debt or equity instruments,
local currency, or other assets received in the exchange
transaction are realized in unrestricted cash or cash
equivalents.
Loan swaps—The reporting guidance for this type of
transaction is presented in the AICPA’s Notice to Practitioners, ‘‘Accounting for Foreign Loan Swaps,’’ issued on
May 27, 1985.
Foreign loan swaps, or debt/debt swaps, involve the
exchange of one foreign loan for another. This type of
transaction represents an exchange of monetary assets
that must be reported at current fair value. Normally,
when monetary assets are exchanged, with or without
additional cash payments, and the parties have no remaining obligations to each other, the earnings process is
complete.
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Debt/equity swaps—The reporting treatment for this type
of transaction is presented in the AICPA Practice Bulletin
No. 4, ‘‘Accounting for Foreign Debt/Equity Swaps.’’
A foreign debt/equity swap represents an exchange of
monetary for nonmonetary assets that must be measured
at fair value. This type of swap is typically accomplished
when holders of U.S. dollar-denominated sovereign debt
agree to convert that debt into approved local equity
investments. The holders are generally credited with
local currency at the official exchange rate. A discount
from the official exchange rate is often imposed as a
transaction fee. The local currency is generally not
available to the holders for any purposes other than
approved equity investments. Restrictions may be placed
on dividends on the equity investments and capital
usually cannot be repatriated for several years.
In arriving at the fair value of the transaction, both the
secondary market price of the debt given up and the fair
value of the equity investment or assets received should
be considered.
Debt-for-development swaps—In this type of exchange,
sovereign debt held by a bank holding company is
generally purchased by a nonprofit organization or contributed to the nonprofit the nonprofit organization. When
the sovereign debt is purchased by or donated to a
nonprofit organization, the organization may enter into
an agreement with the debtor country to cancel the debt
in return for the country’s commitment to provide local
currency or other assets for use in connection with
specific projects or programs in that country. Alternatively, a bank holding company may exchange the sovereign debt with the country and receive local currency. In
this alternative, the local currency will be donated or sold
to the nonprofit organization for use in connection with
specific projects or programs in that country.
These transactions, including amounts charged to expense
as donations, must be reported at their fair values in
accordance with generally accepted accounting principles applicable to foreign debt exchange transactions.
This includes appropriate consideration of the market
value of the instruments involved in the transaction and
the fair value of any assets received, taking into account
any restrictions that would limit the use of the assets. In
debt-for-development swaps where a bank holding company receives local currency in exchange for the sovereign loan it held and the local currency has no restrictions
on its use and is freely convertible, it is generally
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FR Y-9C
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Glossary

appropriate for fair value to be determined by valuing the
local currency received at its fair market exchange value.
Foreign Governments and Official Institutions: Foreign governments and official institutions are central,
state, provincial, and local governments in foreign countries and their ministries, departments, and agencies.
These include treasuries, ministries of finance, central
banks, development banks, exchange control offices,
stabilization funds, diplomatic establishments, fiscal
agents, and nationalized banks and other banking institutions that are owned by central governments and that
have as an important part of their function activities
similar to those of a treasury, central bank, exchange
control office, or stabilization fund. For purposes of these
reports, other government-owned enterprises are not
included.
Also included as foreign official institutions are international, regional, and treaty organizations, such as the
International Monetary Fund, the International Bank
for Reconstruction and Development (World Bank), the
Bank for International Settlements, the Inter-American
Development Bank, and the United Nations.
Foreign Office: For purposes of these reports, a foreign
office of the reporting bank holding company is a branch
or consolidated subsidiary located in a foreign country;
an Edge or Agreement subsidiary, including both its U.S.
and its foreign offices; or an IBF. In addition, if the
reporting bank holding company is chartered and headquartered in the 50 states of the United States and the
District of Columbia, a branch or consolidated subsidiary
located in Puerto Rico or a U.S. territory or possession is
a foreign office. Branches of bank subsidiaries on U.S.
military facilities wherever located are treated as domestic offices, not foreign offices.
Forward Contract: See ‘‘Futures, forward, and standby
contracts.’’
Functional Currency: See ‘‘Foreign currency trans
actions and translation.’’
Futures, Forward, and Standby Contracts: Futures
and forward contracts are commitments for delayed
delivery of financial instruments or commodities in which
the buyer agrees to purchase and the seller agrees to
make delivery, at a specified future date, of a specified
instrument at a specified price or yield.
Futures contracts are standardized and are traded on
organized exchanges. Exchanges in the U.S. are regisFR Y-9C
Glossary March 2007

tered with and regulated by the Commodity Futures
Trading Commission. Forward contracts are traded over
the counter and their terms are not standardized. Such
contracts can only be terminated, other than by receipt
of the underlying financial instrument or commodity, by
agreement of both buyer and seller. Standby contracts
and other option arrangements are optional forward
contracts. The buyer of such a contract has, for compensation (such as a fee or premium), acquired the right (or
option) to sell to, or purchase from, another party some
financial instrument or commodity at a stated price on a
specified future date. The seller of the contract has, for
such compensation, become obligated to purchase or sell
the financial instrument or commodity at the option of the
buyer of the contract. Such contracts may relate to
purchases or sales of securities, money market instruments, or futures contracts.
A standby contract or put option is an optional delivery
forward placement contract. It obligates the seller of the
contract to purchase some financial instrument at the
option of the buyer of the contract.
A call option is an optional forward purchase contract. It
obligates the seller of the contract to sell some financial
instrument at the option of the buyer of the contract.
FR Y-9C treatment of open contracts—Contracts are
outstanding (i.e., open) until they have been terminated
by acquisition or delivery of the underlying financial
instruments or, for futures contracts, by offset, or, for
standby contracts and other option arrangements, by
expiring unexercised. (‘‘Offset’’ is the purchase and sale
of an equal number of futures contracts on the same
underlying instrument for the same delivery month
executed through the same broker or dealer and executed
on the same exchange.)
The reporting of these contracts should follow the
accounting outlined in FAS 133 and disclosed in Schedule HC-L.
Goodwill: See ‘‘Purchase acquisition’’ in the entry for
‘‘business combinations.’’
Hypothecated Deposit: A hypothecated deposit is the
aggregation of periodic payments on an installment contract received by a reporting institution in a state in
which, under law, such payments are not immediately
used to reduce the unpaid balance of the installment note,
but are accumulated until the sum of the payments equals
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Glossary

the entire amount of principal and interest on the contract, at which time the loan is considered paid in full. For
purposes of these reports, hypothecated deposits are to be
netted against the related loans. Deposits which simply
serve as collateral for loans are not considered hypothecated deposits for purposes of these reports.
See also: ‘‘Deposits.’’
IBF: See ‘‘International Banking Facility (IBF).’’
Income Taxes: All bank holding companies, regardless
of size, are required to report income taxes (federal, state
and local, and foreign) on the FR Y-9C on an accrual
basis. Note that, in almost all cases, applicable income
taxes as reported in Schedule HI of the Report of Income
for Bank Holding Companies will differ from amounts
reported to taxing authorities. The applicable income tax
expense or benefit that is reflected in the Report of
Income for Bank Holding Companies should include
both taxes currently paid or payable (or receivable) and
deferred income taxes. The following discussion of
income taxes is based on FASB Statement No. 109,
Accounting for Income Taxes.
Applicable income taxes in the year-end Report of
Income for Bank Holding Companies shall be the sum of
the following:
(1) Taxes currently paid or payable (or receivable) for
the year determined from the bank holding company’s federal, state, and local income tax returns for
that year. Since the bank holding company’s tax
returns will not normally be prepared until after the
year-end FR Y-9C has been completed, the bank
holding company must estimate the amount of the
current Income tax liability (or receivable) that will
ultimately be reported on its tax returns. Estimation
of this liability (or receivable) may involve consultation with the holding company’s tax advisers, a
review of the previous year’s tax returns, the identification of significant expected differences between
items of income and expense reflected on the Report
of Income for Bank Holding Companies and on the
tax returns, and the identification of expected tax
credits.

(or receivable) are expected to increase or decrease in
the future as a result of ‘‘temporary differences’’ and
net operating loss or tax credit carryforwards that
exist at the reporting date.
The actual tax liability (or receivable) calculated on the
bank holding company’s tax returns may differ from the
estimate reported as currently payable or receivable on
the year-end Report of Income for Bank Holding Companies. An amendment to the bank holding company’s
year-end and subsequent FR Y-9Cs may be appropriate if
the difference is significant. Minor differences should be
handled as accrual adjustments to applicable income
taxes in Reports of Income for Bank Holding Companies
during the year the differences are detected. The reporting of applicable income taxes in the Report of Income
for Bank Holding Companies for report dates other than
year-end is discussed below under ‘‘interim period applicable income taxes.’’
Temporary differences result when events are recognized
in one period on the bank holding company’s books but
are recognized in another period on the bank holding
company’s tax return. These differences result in amounts
of income or expense being reported in the Report of
Income in one period but in another period in the tax
returns. There are two types of temporary differences.
Deductible temporary differences reduce taxable income
in future periods. Taxable temporary differences result in
additional taxable income in future periods.
For example, a bank holding company’s provision for
loan and lease losses is expensed for financial reporting
purposes in one period. However, for some bank holding
companies this amount may not be deducted for tax
purposes until the loans are actually charged off in a
subsequent period. This deductible temporary difference
‘‘originates’’ when the provision for loan and lease losses
is recorded in the financial statements and ‘‘turns around’’
or ‘‘reverses’’ when the loans are subsequently charged
off, creating tax deductions.

and

Other deductible temporary differences include writedowns of other real estate owned, the recognition of loan
origination fees and other postemployment benefits
expense.

(1) Deferred income tax expense or benefit measured as
the change in the net deferred tax assets or liabilities
for the period reported. Deferred tax liabilities and
assets represent the amount by which taxes payable

Depreciation can result in a taxable temporary difference
if a bank holding company uses the straight-line method
to determine the amount of depreciation expense to be
reported in the Report of Income for Bank Holding

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FR Y-9C
March 2007

Glossary

Companies but uses an accelerated method for tax purposes. In the early years, tax depreciation under the
accelerated method will typically be larger than book
depreciation under the straight-line method. During this
period, a taxable temporary difference originates. Tax
depreciation will be less than book depreciation in the
later years when the temporary difference reverses.
Therefore, in any given year, the depreciation reported in
the Report of Income for Bank Holding Companies will
differ from that reported in the bank holding company’s
tax returns. However, total depreciation taken over the
useful life of the asset will be the same under either
method. Other taxable temporary differences include the
undistributed earnings of unconsolidated subsidiaries and
associated companies and amounts funded to pension
plans which exceed the recorded expense.
Some events do not have tax consequences and therefore
do not give rise to temporary differences. Certain revenues are exempt from taxation and certain expenses are
not deductible. These events were previously known as
‘‘permanent differences.’’ Examples of such events (for
federal income tax purposes) are interest received on
certain obligations of states and political subdivisions in
the U.S., and premiums paid on officers’ life insurance
policies where the bank holding company is the beneficiary, and 85 percent of cash dividends received on the
corporate stock of domestic U.S. corporations.
Deferred tax assets shall be calculated as of the report
date by applying the ‘‘applicable tax rate’’ (defined
below) to the bank holding company’s total deductible
temporary differences and operating loss carryforwards.
A deferred tax asset shall also be recorded for the amount
of tax credit carryforwards available to the bank holding
company. Based on the estimated realizability of the
deferred tax asset, a valuation allowance should be
established to reduce the recorded deferred tax asset to
the amount that is considered ‘‘more likely than not’’
(i.e., greater than 50 percent chance) to be realized.
Deferred tax liabilities should be calculated by applying
the ‘‘applicable tax rate’’ to total taxable temporary
differences at the report date.
Operating loss carrybacks and carryforwards and tax
credit carryforwards—When a bank holding company’s
deductions exceed its income for federal income tax
purposes, it has sustained an operating loss. An operating
loss that occurs in a year following periods when the
bank holding company had taxable income may be
FR Y-9C
Glossary March 2007

carried back to recover income taxes previously paid.
The tax effects of any loss carrybacks that are realizable
through a refund of taxes previously paid is recognized in
the year the loss occurs. In this situation, the applicable
income taxes on the Report of Income for Bank Holding
Companies will reflect a credit rather than an expense.
Bank holding companies may carry back operating losses
for two years. (For tax years beginning before 1998, bank
holding companies could carry operating losses for three
years.)
Generally, an operating loss that occurs when loss carrybacks are not available (e.g., occurs in a year following
periods of losses) becomes an operating loss carryforward. Bank holding companies may carry operating
losses forward 20 years. (For tax years beginning before
1998, bank holding companies could carry operating
losses forward 15 years.)
Tax credit carryforwards are tax credits which cannot be
used for tax purposes in the current year, but which can
be carried forward to reduce taxes payable in a future
period.
Deferred tax assets are recognized for operating loss and
tax credit carryforwards just as they are for deductible
temporary differences. As a result, a bank holding company can recognize the benefit of a net operating loss for
tax purposes or a tax credit carryforward to the extent the
bank holding company determines that a valuation allowance is not considered necessary (i.e., if the realization of
the benefit is more likely than not).
Applicable tax rate—The income tax rate to be used in
determining deferred tax assets and liabilities is the rate
under current tax law that is expected to apply to taxable
income in the periods in which the deferred tax assets or
liabilities are expected to be realized or paid. If the bank
holding company’s income level is such that graduated
tax rates are a significant factor, then the bank holding
company shall use the average graduated tax rate applicable to the amount of estimated taxable income in
the period in which the deferred tax asset or liability
is expected to be realized or settled. When the tax
law changes, bank holding companies shall determine the
effect of the change, adjust the deferred tax asset or liability and include the effect of the change in Schedule HI,
item 9, ‘‘Applicable income taxes (foreign and domestic).’’
Valuation allowance—A valuation allowance must be
recorded, if needed, to reduce the amount of deferred tax
assets to an amount that is more likely than not to be
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Glossary

realized. Changes in the valuation allowance generally
shall be reported in Schedule HI, item 9, ‘‘Applicable
income taxes (foreign and domestic).’’ The following
discussion of the valuation allowance relates to the
allowance, if any, included in the amount of net deferred
tax assets or liabilities to be reported on the balance sheet
(Schedule HC) and in Schedule HC-F, item 2, and
Schedule HC-G, item 2.
Bank holding companies must consider all available
evidence, both positive and negative, in assessing the
need for a valuation allowance. The future realization of
deferred tax assets ultimately depends on the existence
of sufficient taxable income of the appropriate character
in either the carryback or carryforward period. Four
sources of taxable income may be available to realize the
deferred tax assets:
(1) Taxable income in carryback years (which can be
offset to recover taxes previously paid).
(2) Reversing taxable temporary differences.
(3) Future taxable income (exclusive of reversing temporary differences and carryforwards).
(4) Tax-planning strategies.
In general, positive evidence refers to the existence of
one or more of the four sources of taxable income. To the
extent evidence about one or more sources of income is
sufficient to support a conclusion that a valuation allowance is not necessary (i.e., the bank holding company can
conclude that the deferred tax asset is more likely than
not to be realized), other sources need not be considered.
However, if a valuation allowance is needed, each source
of income must be evaluated to determine the appropriate
amount of the allowance needed.
Evidence used in determining the valuation allowance
should be subject to objective verification. The weight
given to evidence when both positive and negative
evidence exist should be consistent with the extent to
which it can be verified. Sources (1) and (2) listed above
are more susceptible to objective verification and, therefore, may provide sufficient evidence regardless of future
events.
The consideration of future taxable income (exclusive of
reversing temporary differences and carryforwards) as
a source for the realization of deferred tax assets will
require subjective estimates and judgments about future
events which may be less objectively verifiable.
GL-40

Examples of negative evidence include:
• Cumulative losses in recent years.
• A history of operating loss or tax credit carryforwards
expiring unused.
• Losses expected in early future years by a presently
profitable bank holding company.
• Unsettled circumstances that, if unfavorably resolved,
would adversely affect future profit levels.
• A brief carryback or carryforward that would limit the
ability to realize the deferred tax asset.
Examples of positive evidence include:
• A strong earnings history exclusive of the loss that
created the future deductible amount (tax loss carryforward or deductible temporary difference) coupled
with evidence indicating that the loss is an aberration
rather than a continuing condition.
• Existing contracts that will generate significant income.
• An excess of appreciated asset value over the tax basis
of an entity’s net assets in an amount sufficient to
realize the deferred tax asset.
When realization of a bank holding company’s deferred
tax assets is dependent upon future taxable income, the
reliability of a bank holding company’s projections is
very important. The bank holding company’s record in
achieving projected results under an actual operating plan
will be a strong measure of this reliability. Other factors a
bank holding company should consider in evaluating
evidence about its future profitability include, but are not
limited to, current and expected economic conditions,
concentrations of credit risk within specific industries
and geographical areas, historical levels and trends in
past due and nonaccrual assets, historical levels and
trends in loan loss reserves, and the bank holding company’s interest rate sensitivity.
When strong negative evidence, such as the existence of
cumulative losses, exists, it is extremely difficult for a
bank holding company to determine that no valuation
allowance is needed. Positive evidence of significant
quality and quantity would be required to counteract such
negative evidence.
For purposes of determining the valuation allowance,
a tax-planning strategy is a prudent and feasible action
that would result in realization of deferred tax assets and
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FR Y-9C
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Glossary

that management ordinarily might not take, but would do
so to prevent an operating loss or tax credit carry forward
from expiring unused. For example, a bank holding
company could accelerate taxable income to utilize
carryforwards by selling or securitizing loan portfolios,
selling appreciated securities, or restructuring nonperforming assets. Actions that management would take in
the normal course of business are not considered taxplanning strategies.
Significant expenses to implement the tax-planning strategy and any significant losses that would result from
implementing the strategy shall be considered in determining any benefit to be realized from the tax-planning
strategy. Also, bank holding companies should consider
all possible consequences of any tax-planning strategies.
For example, loans pledged as collateral would not be
available for sale.
The determination of whether a valuation allowance is
needed for deferred tax assets should be made for total
deferred tax assets, not for deferred tax assets net of
deferred tax liabilities. In addition, the evaluation should
be made on a jurisdiction-by-jurisdiction basis. Separate
analyses should be performed for amounts related to each
taxing authority (e.g., federal, state, and local).

the year (excluding extraordinary items). This rate would
then be applied to the year-to-date pretax income to
determine year-to-date applicable income taxes at the
interim date.
Intraperiod allocation of income taxes—When the Report
of Income for Bank Holding Companies for a period
includes extraordinary items, the total amount of the
applicable income taxes for the year to date shall be
allocated in Schedule HI between item 9, ‘‘Applicable
income taxes (foreign and domestic),’’ and the applicable
income taxes netted in item 12, ‘‘Extraordinary items, net
of applicable taxes and minority interest.’’
The applicable income taxes on operating income (item 9)
shall be the amount that the total applicable income taxes
on pretax income, including both current and deferred
taxes (calculated as described above), would have been
for the period had ‘‘Extraordinary items’’ (item 12) been
zero.

Deferred tax assets (net of the valuation allowance) and
deferred tax liabilities related to a particular tax jurisdiction (e.g., federal, state, and local) may be offset against
each other for reporting purposes. A resulting debit
balance shall be included in ‘‘Other assets’’ and reported
in Schedule HC-F, item 2. A resulting credit balance shall
be included in ‘‘Other liabilities’’ and reported in Schedule HC-G, item 2. A bank holding company may report a
net deferred tax debit, or asset, for one tax jurisdiction
(e.g., federal taxes) and also report a net deferred tax
credit, or liability, for another tax jurisdiction (e.g., state
taxes).

Tax calculations by tax jurisdiction—Separate calculations of income taxes, both current and deferred amounts,
are required for each tax jurisdiction. However, if the tax
laws of the state and local jurisdictions do not significantly differ from federal income tax laws, then the
calculation of deferred income tax expense can be made
in the aggregate. The bank holding company would
calculate both current and deferred tax expense considering the combination of federal, state, and local income
tax rates. The rate used should consider whether amounts
paid in one jurisdiction are deductible in another jurisdiction. For example, since state and local taxes are deductible for federal purposes, the aggregate combined rate
would generally be (1) the federal tax rate plus (2) the
state and local tax rates minus (3) the federal tax effect of
the deductibility of the state and local taxes at the federal
tax rate.

Interim period applicable income taxes—When preparing its year-to-date Report of Income for Bank Holding
Companies as of the end of March, June, and September
(‘‘interim periods’’), the bank holding company should
determine its best estimate of its effective annual tax rate
for the full year, including both current and deferred
portions and including all tax jurisdictions (e.g., federal,
state and local). To arrive at its estimated effective annual
tax rate, a bank holding company should divide its
estimated total applicable income taxes (current and
deferred) for the year by its estimated pretax income for

Purchase business combinations—In purchase business
combinations (as described in the Glossary entry for
‘‘business combinations’’), bank holding companies shall
recognize as a temporary difference the difference between
the tax basis of acquired assets or liabilities and the
amount of the purchase price allocated to the acquired
assets and liabilities (with certain exceptions specified in
FASB Statement No. 109). As a result, the acquired asset
or liability shall be recorded gross and a deferred tax
asset or liability shall be recorded for any resulting
temporary difference.

FR Y-9C
Glossary March 2007

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Glossary

In a purchase business combination, a deferred tax asset
shall generally be recognized at the date of acquisition
for deductible temporary differences and net operating
loss and tax credit carryforwards of either company in the
transaction, net of an appropriate valuation allowance.
The determination of the valuation allowance should
consider any provisions in the tax law which may restrict
the use of an acquired company’s carryforwards.
Subsequent recognition (i.e., by elimination of the valuation allowance) of the benefit of deductible temporary
differences and net operating loss or tax credit carryforwards not recognized at the acquisition date will
depend on the source of the benefit. If the valuation
allowance relates to deductible temporary differences and
carryforwards of the acquiring company established
before the acquisition, then subsequent recognition is
reported as a reduction of income tax expense. If the
benefit is related to the acquired company’s deductible
temporary differences and carryforwards, then the benefit
is subsequently recognized by first reducing any goodwill
related to the acquisition, then by reducing all other
noncurrent intangible assets related to the acquisition,
and finally, by reducing income tax expense.
Alternative Minimum Tax—Any taxes a bank holding
company must pay in accordance with the alternative
minimum tax (AMT) shall be included in the bank
holding company’s current tax expense. Amounts of
AMT paid can be carried forward in certain instances to
reduce the bank holding company’s regular tax liability
in future years. The bank holding company may record a
deferred tax asset for the amount of the AMT credit
carryforward, which shall then be evaluated in the same
manner as other deferred tax assets to determine whether
a valuation allowance is needed.
Other tax effects—A bank holding company may have
transactions or items that are reportable in Schedule HI-A
of the Report of Income for Bank Holding Companies
such as ‘‘Restatements due to corrections of material
accounting errors and changes in accounting principles,’’
and foreign currency translation adjustments included in
‘‘Other comprehensive income.’’ These transactions or
other items will enter into the determination of taxable
income in some year (not necessarily the current year),
but are not included in the pretax income reflected in
Schedule HI of the Report of Income for Bank Holding
Companies. They shall be reported in Schedule HI-A net
of related income tax effects. These effects may increase
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or decrease the bank holding company’s total tax liability
calculated on its tax returns for the current year or may be
deferred to one or more future periods.
For further information, see FASB Statement No. 109,
Accounting for Income Taxes.
Insurance Commissions: Insurance commissions generally represent remuneration paid by insurance underwriters to insurance agents and brokers for the sale of
insurance products. Companies also earn fees for generating insurance sales leads pursued by third-party insurance agents and by providing other services related to
selling and servicing insurance contracts and maintaining
separate accounts.
Insurance Premiums: Insurance premiums are the consideration paid by policyholders to insurance underwriters in exchange for the provision of defined future
benefits or for the indemnification against specified
insured losses. For further information, see FASB Statement No. 60, Accounting and Reporting by Insurance
Enterprises, and FASB Statement No. 97, Accounting
and Reporting by Insurance Enterprises for Certain
Long-Duration Contracts and for Realized Gains and
Losses from the Sale of Investments.
Insurance Underwriting: Insurance underwriting is the
process whereby insurance companies assume risks (e.g.
that a death, sickness, casualty or other event) will occur,
for which premiums based upon underwriting standards
are charged.
Intangible Assets: See ‘‘Business combinations.’’
Interest-Bearing Account: See ‘‘Deposits.’’
Interest Capitalization: See ‘‘Capitalization of interest.’’
Internal-Use Computer Software: Guidance on the
accounting and reporting for the costs of internal-use
computer software is set forth in AICPA Statement of
Position 98-1, Accounting for the Costs of Computer
Software Developed or Obtained for Internal Use. A
summary of this accounting guidance follows. For further information, see AICPA Statement of Position 98-1.
Internal-use computer software is software that meets
both of the following characteristics: (1) The software
is acquired, internally developed, or modified solely to
meet the bank holding company’s internal needs; and (2)
During the software’s development or modification, no
substantive plan exists or is being developed to market
the software externally.
Glossary

FR Y-9C
March 2007

Glossary

Statement of Position 98-1 identifies three stages of
development for internal-use software: the preliminary
project stage, the application development stage, and the
post- implementation/operation stage. The processes that
occur during the preliminary project stage of software
development are the conceptual formulation of alternatives, the evaluation of the alternatives, the determination
of the existence of needed technology, and the final
selection of alternatives. The application development
stage involves the design of the chosen path (including
software configuration and software interfaces), coding,
installation of software to hardware, and testing (including the parallel processing phase). Generally, training and
application maintenance occur during the postimplementation/operation stage. Upgrades of and
enhancements to existing internal-use software, i.e.,
modification to software that result in additional functionality, also go through the three aforementioned stages of
development.
Computer software costs that are incurred in the preliminary project stage should be expensed as incurred.
Internal and external costs incurred to develop internaluse software during the application development stage
should be capitalized. Capitalization of these costs should
begin once (a) the preliminary project stage is completed
and (b) management, with the relevant authority, implicitly or explicitly authorizes and commits to funding a
computer software project and it is probable that the
project will be completed and the software will be used to
perform the function intended. Capitalization should
cease no later than when a computer software project is
substantially complete and ready for its intended use, i.e.,
after all substantial testing is completed. Capitalized
internal-use computer software costs generally should be
amortized on a straight-line basis over the estimated
useful life of the software.
Only the following application development stage costs
should be capitalized: (1) External direct costs of materials and services consumed in developing or obtaining
internal-use software; (2) Payroll and payroll-related
costs for employees who are directly associated with and
who devote time to the internal-use computer software
project (to the extent of the time spent directly on the
project); and (3) Interest costs incurred when developing
internal-use software.
Costs to develop or obtain software that allows for access
or conversion of old data by new systems also should be
FR Y-9C
Glossary March 2007

capitalized. Otherwise, data conversion costs should be
expensed as incurred. General and administrative costs
and overhead costs should not be capitalized as internaluse software costs. During the post-implementation/
operation stage, internal and external training costs and
maintenance costs should be expensed as incurred.
Impairment of capitalized internal-use computer software costs should be recognized and measured in accordance with FASB Statement No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets.
The costs of internally developed computer software to
be sold, leased, or otherwise marketed as a separate
product or process should be reported in accordance with
FASB Statement No. 86, Accounting for the Costs of
Computer Software to be Sold, Leased, or Otherwise
Marketed. If, after the development of internal-use software is completed, a bank holding company decides to
market the software, proceeds received from the license
of the software, net of direct incremental marketing costs,
should be applied against the carrying amount of the
software.
International Banking Facility (IBF): General
definition—An International Banking Facility (IBF) is a
set of asset and liability accounts, segregated on the
books and records of the establishing entity, which reflect
international transactions. An IBF is established in accordance with the terms of Federal Reserve Regulation D
and after appropriate notification to the Federal Reserve.
The establishing entity may be a U.S. depository institution, a U.S. office of an Edge or Agreement corporation,
or a U.S. branch or agency of a foreign bank pursuant
to Federal Reserve Regulation D. An IBF is permitted
to hold only certain assets and liabilities. In general,
IBF accounts are limited, as specified in the paragraphs
below, to non-U.S. residents of foreign countries, residents of Puerto Rico and U.S. territories and possessions,
other IBFs, and U.S. and non-U.S. offices of the establishing entity.
Permissible IBF assets include extensions of credit to the
following:
(1) non-U.S. residents (including foreign branches of
other U.S. banks);
(2) other IBFs; and
(3) U.S. and non-U.S. offices of the establishing entity.
Credit may be extended to non-U.S. nonbank residents
only if the funds are used in their operations outside the
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Glossary

United States. IBFs may extend credit in the form of a
loan, deposit, placement, advance, security, or other
similar asset.

resale agreements) in Schedule HC, item 4(b), and in the
appropriate items of Schedule HC-C; and securities
purchased under agreements to resell in Schedule HC,
item 3(b).

Permissible IBF liabilities include (as specified in Federal Reserve Regulation D) liabilities to non-U.S. nonbank residents only if such liabilities have a minimum
maturity or notice period of at least two business days.
IBF liabilities also may include overnight liabilities to:

For purposes of these reports, all liabilities of the IBFs of
the banking subsidiaries of the reporting bank holding
company to outside parties are classified under four
headings:

(1) non-U.S. offices of other depository institutions and
of Edge or Agreement corporations;

(1) Securities sold under agreements to repurchase,
which are to be reported in Schedule HC, item 14(b);

(2) non-U.S. offices of foreign banks;

(2) Borrowings of immediately available funds that have
an original maturity of one business day or roll over
under a continuing contract that are not securities
repurchase agreements, which are to be reported in
Schedule HC-M, item 14;

(3) Foreign governments and official institutions;
(4) other IBFs; and
(5) the establishing entity.
IBF liabilities may be issued in the form of deposits,
borrowings, placements, and other similar instruments.
However, IBFs are prohibited from issuing negotiable
certificates of deposit, bankers acceptances, or other
negotiable or bearer instruments.
Treatment of the IBFs of bank subsidiaries of the holding
company on the Consolidated Financial Statements for
Bank Holding Companies (FR Y-9C)—IBFs established
by a subsidiary of the holding company (e.g., by a bank
subsidiary or by its Edge or Agreement subsidiaries) are
to be consolidated in the FR Y-9C. In the consolidated
balance sheet (Schedule HC) and income statement
(Schedule HI), transactions between the IBFs of the bank
subsidiaries of the reporting holding company and
between these IBFs and other offices of the bank holding
company are to be eliminated. For purposes of these
reports, the IBFs of the holding companies’ banking
subsidiaries are to be treated as foreign offices where, in
the schedules, a distinction is made between foreign and
domestic offices of the reporting bank holding company.
Assets of the IBFs of the banking subsidiaries of the
reporting bank holding company should be reported in
the asset categories of the report by type of instrument
and customer, as appropriate. For example, IBFs are
to report their holdings of securities in Schedule HC,
item 2, and in the appropriate items of Schedule HC-B;
their holdings of loans that the IBF has the intent and
ability to hold for the foreseeable future or until maturity
or payoff (including loans of immediately available funds
that have an original maturity of one business day or roll
over under a continuing contract that are not securities
GL-44

(3) Accrued liabilities, which are to be reported in
Schedule HC, item 20; and
(4) All other liabilities, including deposits, placements,
and borrowings, which are to be treated as deposit
liabilities in foreign offices and reported in Schedule
HC, item 13(b).
Treatment of transactions with IBFs of other depository
institutions—Transactions between the offices of the
reporting bank holding company and IBFs outside the
scope of the FR Y-9C are to be reported as transactions
with depository institutions in the U.S., as appropriate.
(Note, however, that only foreign offices of the bank
holding company and IBFs of its banking subsidiaries are
permitted to have transactions with other IBFs.)
Investments in Common Stock of Unconsolidated
Subsidiaries: See the instruction to Schedule HC, item 8,
‘‘Investments in unconsolidated subsidiaries and associated companies.’’
Joint Venture: See ‘‘Subsidiaries.’’
Lease Accounting: A lease is an agreement that transfers
the right to use land, buildings, or equipment for a
specified period of time. This financing device is essentially an extension of credit evidenced by an obligation
between a lessee and a lessor.
Standards for lease accounting are set forth in FASB
Statement No. 13, Accounting for Leases, as amended
and interpreted.
Accounting with the bank holding company as lessee—
Any lease entered into by a lessee bank holding company
Glossary

FR Y-9C
March 2007

Glossary

or its consolidated subsidiaries that are on an accrual
basis of accounting shall be accounted for as a property
acquisition financed with a debt obligation. The property
shall be amortized according to the bank holding company’s normal depreciation policy (except, if appropriate,
the amortization period shall be the lease term) unless the
lease involves land only. The interest expense portion of
each lease payment shall be calculated to result in a
constant rate of interest on the balance of the debt
obligation. In the FR Y-9C, the property ‘‘asset’’ is to be
reported in Schedule HC, item 6, and the liability for
capitalized leases in Schedule HC, item 16, the interest
expense portion of the capital lease payments is to be
reported in Schedule HI, item 2(e), ‘‘Other interest
expense’’ and the amortization expense on the asset is to
be reported in Schedule HI, item 7(b), ‘‘Expenses of
premises and fixed assets, net of rental income.’’ If any
one of the following criteria is met, a lease must be
accounted for as a capital lease:
(1) ownership of the property is transferred to the lessee
at the end of the lease term, or
(2) the lease contains a bargain purchase option, or
(3) the lease term represents at least 75 percent of the
estimated economic life of the leased property, or
(4) the present value of the minimum lease payments at
the beginning of the lease term is 90 percent or more
of the fair value of the leased property to the lessor at
the inception of the lease less any related investment
tax credit retained by and expected to be realized by
the lessor.
If none of the above criteria is met, the lease should be
accounted for as an operating lease. Rental payments
should be charged to expense over the term of the
operating lease as they become payable.
NOTE: If a lease involves land only, the lease must be
capitalized if either of the first two criteria above is met.
Where a lease that involves land and building meets
either of these two criteria, the land and building must be
separately capitalized by the lessee. The accounting for a
lease involving land and building that meets neither of
the first two criteria should conform to the standards
prescribed by FASB Statement No. 13.
Accounting for sales with leasebacks—Sale–leaseback
transactions involve the sale of property by the owner
and a lease of the property back to the seller. If a bank
FR Y-9C
Glossary March 2007

holding company sells premises or fixed assets and leases
back the property, the lease shall be treated as a capital
lease if it meets any one of the four criteria above for
capitalization. Otherwise, the lease shall be accounted for
as an operating lease.
As a general rule, the bank holding company shall defer
any gain resulting from the sale. For capital leases, this
deferred gain is amortized in proportion to the depreciation taken on the leased asset. For operating leases, the
deferred gain is amortized in proportion to the rental
payments the bank holding company will make over
the lease term. The unamortized deferred gain is to be
reported in ‘‘Other liabilities.’’ (Exceptions to the general
rule on deferral which permit full or partial recognition of
a gain at the time of the sale may occur if the leaseback
covers less than substantially all of the property that was
sold or if the total gain exceeds the minimum lease
payments.)
If the fair value of the property at the time of the sale is
less than the book value of the property, the difference
between these two amounts shall be recognized as a loss
immediately. In this case, if the sales price is less than the
fair value of the property, the additional loss shall be
deferred since it is in substance a prepayment of rent.
Similarly, if the fair value of the property sold is greater
than its book value, any loss on the sale shall also be
deferred. Deferred losses shall be amortized in the same
manner as deferred gains as described above.
For further information, see FASB Statement No. 28,
Accounting for Sales with Leasebacks.
Accounting with bank holding company as lessor—
Unless a long-term creditor is also involved in the
transaction, a lease entered into by a lessor bank holding
company or its consolidated subsidiaries on an accrual
accounting basis that meets one of the four criteria above
for a capital lease plus two additional criteria (as defined
below) shall be treated as a direct financing lease. After
initial direct costs have been deducted, the unearned
income (minimum lease payments plus estimated residual
value less the cost of the leased property) shall be
amortized to income over the lease term in a manner
which produces a constant rate of return on the net
investment (minimum lease payments plus estimated
residual value less unearned income). Other methods of
income recognition may be used if the results are not
materially different.
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Glossary

The following two additional criteria must be met for a
lease to be classified as a direct financing lease:

(2) contain a specified expiration date or be for a definite
term;

(1) Collectability of the minimum lease payments is
reasonably predictable.

(3) be limited in amount;

(2) No important uncertainties surround the amount of
unreimbursable costs yet to be incurred by the lessor
under the lease.
When a lessor bank holding company or its consolidated
subsidiaries on an accrual basis of accounting enters into
a lease that has all the characteristics of a direct financing
lease but where a long-term creditor provides nonrecourse financing to the lessor, the transaction shall be
accounted for as a leveraged lease. The lessor’s net
investment in a leveraged lease shall be recorded in a
manner similar to that for a direct financing lease but net
of the principal and interest on the nonrecourse debt.
Based on a projected cash flow analysis for the lease
term, unearned and deferred income shall be amortized to
income at a constant rate only in those years of the lease
term in which the net investment is positive. In the years
in which the net investment is not positive, no income is
to be recognized on the leveraged lease.
If a lease is neither a direct financing lease nor a
leveraged lease, the lessor bank holding company or its
consolidated subsidiaries shall account for it as an operating lease. The leased property shall be reported as
‘‘Other assets’’ and depreciated in accordance with the
bank holding company’s normal policy. Rental payments
are generally credited to income over the term of an
operating lease as they become receivable.
Letter of Credit: A letter of credit is a document issued
by a bank holding company or its consolidated subsidiaries (generally a banking subsidiary) on behalf of its
customer (the account party) authorizing a third party
(the beneficiary), or in special cases the account party, to
draw drafts on the bank holding company or its consolidated subsidiary up to a stipulated amount and with
specified terms and conditions. The letter of credit is a
conditional commitment (except when prepaid by the
account party) on the part of the consolidated bank
holding company to provide payment on drafts drawn in
accordance with the terms of the document.
As a matter of sound practice, letters of credit should:
(1) be conspicuously labeled as a letter of credit;
GL-46

(4) call upon the issuing bank holding company or its
issuing consolidated subsidiaries to pay only upon
the presentation of a draft or other documents as
specified in the letter of credit and not require the
issuing bank holding company or consolidated subsidiaries to make determinations of fact or law at
issue between the account party and the beneficiary;
and
(5) be issued only subject to an agreement between the
account party and the issuing bank holding company
or its consolidated subsidiaries which establishes the
unqualified obligation of the account party to reimburse the issuing bank holding company or its consolidated subsidiaries for all payments made under
the letter of credit.
There are four basic types of letters of credit:
(1) commercial letters of credit,
(2) letters of credit sold for cash,
(3) travelers’ letters of credit, and
(4) standby letters of credit,
each of which is discussed separately below.
A commercial letter of credit is issued specifically to
facilitate trade or commerce. Under the terms of a
commercial letter of credit, as a general rule, drafts will
be drawn when the underlying transaction is consummated as intended.
A letter of credit sold for cash is a letter of credit for
which the bank holding company or a consolidated
subsidiary has received funds from the account party at
the time of issuance. This type of letter of credit is not to
be reported as an outstanding letter of credit but as a
demand deposit. These letters are considered to have
been sold for cash even though the consolidated bank
holding company may have advanced funds to the
account party for the purchase of such letters of credit on
a secured or unsecured basis.
A travelers’ letter of credit is issued to facilitate travel.
This letter of credit is addressed by the bank holding
company or its consolidated subsidiaries to its correspondents authorizing the correspondents to honor drafts
Glossary

FR Y-9C
March 2007

Glossary

drawn by the person named in the letter of credit in
accordance with specified terms. These letters are generally sold for cash.

(1) acceptances of banks that are not consolidated subsidiaries for the reporting bank holding company’s
FR Y-9C;

A standby letter of credit is a letter of credit or similar
arrangement that:

(2) acceptances executed by or for the account of a
subsidiary bank of the reporting bank holding
company and subsequently acquired by the consolidated holding company through purchase or
discount;

(1) represents an obligation on the part of the issuing
bank holding company or a consolidated subsidiary
to a designated third party (the beneficiary) contingent upon the failure of the issuing consolidated bank
holding company’s customer (the account party) to
perform under the terms of the underlying contract
with the beneficiary, or
(2) obligates the bank holding company or a consolidated subsidiary to guarantee or stand as surety for
the benefit of a third party to the extent permitted by
law or regulation.
The underlying contract may entail either financial or
nonfinancial undertakings of the account party with the
beneficiary. The underlying contract may involve such
things as the customer’s payment of commercial paper,
delivery of merchandise, completion of a construction
contract, release of maritime liens, or repayment of the
account party’s obligations to the beneficiary. Under the
terms of a standby letter, as a general rule, drafts will be
drawn only when the underlying event fails to occur as
intended.
Limited-Life Preferred Stock: See ‘‘Preferred stock.’’
Loan: For purposes of this report, a loan is generally an
extension of credit resulting from direct negotiations
between a lender and a borrower. The reporting bank
holding company or its consolidated subsidiaries may
originate a loan by directly negotiating with a borrower
or it may purchase a loan or a portion of a loan originated
by another lender that directly negotiated with a borrower. The reporting bank holding company or its subsidiaries may also sell a loan or a portion of a loan,
regardless of the method by which it acquired the loan.
Loans may take the form of promissory notes, acknowledgments of advance, due bills, invoices, overdrafts,
acceptances, and similar written or oral obligations.
Among the extensions of credit reportable as loans in
Schedule HC-C, which covers both loans held for sale
and loans that the reporting bank holding company has
the intent and ability to hold for the foreseeable future or
until maturity or payoff, are:
FR Y-9C
Glossary March 2007

(3) customers’ liability to a bank subsidiary of the
reporting bank holding company on drafts paid under
letters of credit for which the bank subsidiary of the
reporting bank holding company has not been
reimbursed;
(4) ‘‘advances’’ and commodity or bill-of-lading drafts
payable upon arrival of goods against which drawn,
for which a bank subsidiary of the reporting bank
holding company has given deposit credit to
customers;
(5) paper pledged by the bank holding company or by
its consolidated subsidiaries whether for collateral
to secure bills payable (e.g., margin collateral to
secure bills rediscounted) or for any other purpose;
(6) sales of ‘‘term federal funds’’ (i.e., sales of immediately available funds with a maturity of more than
one business day), other than those involving security resale agreements;
(7) factored accounts receivable;
(8) loans arising out of the purchase of assets (other than
securities) under resale agreements with a maturity of
more than one business day if the agreement requires
the bank holding company to resell the identical asset
purchased; or
(9) participations (acquired or held) in a single loan or
in a pool of loans or receivables (see discussion in the
Glossary entry for ‘‘Transfers of Financial Assets’’).
Loan acceptances and commercial paper, held in a trading account are to be reported in Schedule HC, item 5,
‘‘Trading assets.’’
See also ‘‘Loan secured by real estate,’’ ‘‘Overdraft,’’ and
‘‘Sale of assets.’’
Loan Fees: The accounting standards for nonrefundable
fees and cost associated with lending, committing to
lend, and purchasing a loan or group of loans are set forth
GL-47

Glossary

in FASB No. 91, Accounting for Nonrefundable Fees and
Costs Associated with Originating or Acquiring Loans
and Initial Direct Costs of Leases. The statement applies
to all types of loans as well as to debt securities (but not
to loans or securities carried at market value) and to all
types of lenders. It must be applied to all lending and
leasing transactions in fiscal years beginning after December 15, 1987 (that is, the first quarter of 1988 for
companies with calendar year-ends).
In summary, FASB No. 91 requires that loan fees be
deferred and recognized over the life of the loan as an
adjustment of the yield. Certain direct origination costs
must also be deferred and amortized over the life of the
loan as a reduction of the yield. Amortization of deferred
fees and costs is generally computed using the interest
method. FASB No. 91 applies to both a lender and a
purchaser, and should be applied to individual loan
contracts.
For a complete discussion of the required accounting for
loan fees, see FASB No. 91.
Loan Impairment: The accounting standard for impaired
loans is FASB Statement No. 114, Accounting by Creditors for Impairment of a Loan. For further information,
refer to FASB Statement No. 114.
Each institution is responsible for maintaining an allowance for loan and lease losses (allowance) adequate to
absorb estimated credit losses in its entire portfolio of
loans and leases held for investment, i.e., loans and leases
that the bank holding company has the intent and ability
to hold for the foreseeable future or until maturity of
payoff. FASB Statement No. 114 sets forth measurement
methods for estimating the portion of the overall allowance for loan and lease losses attributable to impaired
loans. An appropriate allowance must be maintained for
other loans in accordance with FASB Statement No. 5.
In general, certain loans are impaired under FASB Statement No. 114 when, based on current information and
events, it is likely that an institution will be unable to
collect all amounts due according to the contractual terms
of the loan agreement, (i.e., both principal and interest).
An institution should apply its normal loan review procedures when determining whether a loan covered by
FASB Statement No. 114 is impaired. When a loan is
deemed impaired under FASB Statement No. 114, an
institution may choose to measure impairment using
(1) the present value of expected future cash flows
discounted at the loan’s effective interest rate (i.e., the
GL-48

contractual interest rate adjusted for any net deferred loan
fees or costs, premium, or discount existing at the
origination or acquisition of the loan), (2) the loan’s
observable market price, or (3) the fair value of the
collateral, if the loan is collateral dependent. A loan is
collateral dependent if repayment of the loan is expected
to be provided solely by the underlying collateral and
there are no other available and reliable sources of
repayment. A creditor should consider estimated costs to
sell, on a discounted basis, in the measurement of
impairment if those costs are expected to reduce the cash
flows available to repay or otherwise satisfy the loan. If
the measure of an impaired loan is less than the recorded
investment in the loan, an impairment should be recognized by creating an allowance for estimated credit losses
for the impaired loan or by adjusting an existing allowance with a corresponding charge or credit to ‘‘Provision
for loan and lease losses.’’
An institution should not provide an additional allowance
for estimated credit losses on an impaired loan over and
above what is specified by FASB Statement No. 114
(FAS 114). The allowance established under FAS 114
should take into consideration all available information
existing as of the report date that indicates that a loan has
been impaired. All available information would include
existing environmental factors such as industry, geographical, economic, and political factors that affect
collectibility. FASB Statement No. 114 also addresses the
accounting by creditors for all loans that are restructured
in a troubled debt restructuring involving a modification
of terms, except loans that are measured at fair value or
the lower of cost or fair value. For guidance on troubled
debt restructurings, see the Glossary entry for ‘‘Troubled
debt restructurings.’’
As with all other loans, all impaired loans should be
reported as past due or nonaccrual loans in Schedule HC-N in accordance with the schedule’s instructions.
Since full collection of principal and interest is not
expected for impaired loans, income accrual should
normally be discontinued on such loans at the time that
they first become impaired. Any cash payments received
on impaired loans should be reported in accordance with
the criteria for the cash basis recognition of income in the
Glossary entry for ‘‘nonaccrual of interest.’’ For further
information, see that glossary entry.
Loans Secured By Real Estate: For purposes of these
reports, loans secured by real estate are loans predicated
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upon a security interest in real property. A loan predicated upon a security interest in real property is a loan
secured wholly or substantially by a lien on real property
for which the lien is central to the extension of the
credit—that is, the borrower would not have been
extended credit in the same amount or on terms as
favorable without the lien on real property. All loans
satisfying the criteria above are to be reported as loans
secured by real estate (Schedule HC-C, item 1), regardless of whether secured by first or junior liens, regardless
of the department or subsidiary within the bank or bank
holding company that made the loans, regardless of how
the loans are categorized in the bank holding company’s
records, and regardless of the purpose of the financing.
Only in transactions where a lien on real property has
been taken as collateral solely through an abundance of
caution and where the terms as a consequence have not
been made more favorable than they would have been in
the absence of the lien, would the loans not be considered
to be secured by real estate and not be classifiable as
loans secured by real estate in the FR Y-9C.

which no organized market exists should be valued on
the basis of a yield curve estimate. Quotations from
brokers or others making markets in securities that are
neither widely nor actively traded are acceptable if
prudently used. Unrated debt securities for which no
reliable market price data are available may be valued at
cost adjusted for amortization of premium or accretion of
discount unless credit problems of the obligor or upward
movements in the level of interest rates warrant a lower
estimate of current value. Securities that are not marketable such as, Federal Reserve stock or equity securities in
closely held businesses, should be valued at book or par
value, as appropriate.

Loss Contingencies: A loss contingency is an existing
condition, situation, or set of circumstances that involves
uncertainty as to possible loss that will be resolved when
one or more future events occur or fail to occur. An
estimated loss (or expense) from a loss contingency (for
example, pending or threatened litigation) must be accrued
by a charge to income if it is probable that an asset has
been impaired or a liability incurred as of the report date
and the amount of the loss can be reasonably estimated.

Nonaccrual Status: General rule—Bank holding companies on an accrual basis of reporting shall not accrue
interest or discount on (1) any asset which is maintained
on a cash basis because of deterioration in the financial
position of the borrower, (2) any asset for which payment
in full of interest or principal is not expected, or (3) any
asset upon which principal or interest has been in default
for a period of 90 days or more unless it is both well
secured and in the process of collection.

A contingency that might result in a gain, for example,
the filing of an insurance claim, shall not be recognized
as income prior to realization.

An asset is ‘‘well secured’’ if it is secured (1) by
collateral in the form of liens on or pledges of real or
personal property, including securities, that have a realizable value sufficient to discharge the debt (including
accrued interest) in full, or (2) by the guaranty of a
financially responsible party. An asset is ‘‘in the process
of collection’’ if collection of the asset is proceeding in
due course either (1) through legal action, including
judgment enforcement procedures, or, (2) in appropriate
circumstances, through collection efforts not involving
legal action which are reasonably expected to result in
repayment of the debt or in its restoration to a current
status in the near future.

For further information, see FASB Statement No. 5,
Accounting for Contingencies.
Mandatory Convertible Debt: See discussion of mandatory convertible securities in instructions for Schedule HC, item 19(a), ‘‘Subordinated notes and debentures.’’
Market (Fair) Value of Securities: The market value of
securities should be determined, to the extent possible, by
timely reference to the best available source of current
market quotations or other data on relative current values.
For example, securities traded on national, regional, or
foreign exchanges or in organized over-the-counter markets should be valued at the most recently available
quotation in the most active market. Rated securities for
FR Y-9C
Glossary March 2007

Mergers: See ‘‘Business combinations.’’
Money Market Deposit Account (MMDA): See
‘‘Deposits.’’
Mortgages, Residential, Participations in Pools of: See
‘‘Transfers of financial assets.’’
NOW Account: See ‘‘Deposits.’’

For purposes of applying the third test for the nonaccrual
of interest listed above, the date on which an asset
reaches nonaccrual status is determined by its contractual
terms. If the principal or interest on an asset becomes due
and unpaid for 90 days or more on a date that falls
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between report dates, the asset should be placed in
nonaccrual status as of the date it becomes 90 days past
due and it should remain in nonaccrual status until it
meets the criteria for restoration to accrual status described below.
Exceptions to the general rule—In the following situations, an asset need not be placed in nonaccrual status:
(1) The criteria for accrual of income under the interest
method specified in AICPA Statement of Position
03-38 are met for a purchased impaired loan or debt
security accounted for in accordance with that Statement of Position, regardless of whether the loan or
debt security had been maintained in nonaccrual
status by its seller. For further information, see the
Glossary entry for ‘‘purchased impaired loans and
debt securities.’’
(2) The criteria for amortization (i.e., accretion of discount) specified in AICPA Practice Bulletin No. 69
are met with respect to a loan or other debt instrument accounted for in accordance with that Practice
Bulletin that was acquired at a discount (because
there is uncertainty as to the amounts or timing of
future cash flows) from an unaffiliated third party
(such as another institution or the receiver of a failed
institution), including those that the seller had maintained in nonaccrual status.
(3) The asset upon which principal or interest is due and
unpaid for 90 days or more is a consumer loan (as
defined for Schedule HC-C, item 6, ‘‘Loans to individuals for household, family, and other personal
expenditures’’) or a loan secured by a 1-to-4 family
residential property (as defined for Schedule HC-C,
item 1(c), Loans ‘‘Secured by 1-4 family residential
properties’’). Nevertheless, such loans should be
subject to other alternative methods of evaluation to
assure that the bank holding company’s net income is
not materially overstated. However, to the extent that
the bank holding company has elected to carry such a
loan in nonaccrual status on its books, the loan must
be reported as nonaccrual in Schedule HC-N.
8. American Institute of Certified Public Accountants Statement of Position 03-3, ‘‘Accounting for Certain Loans or Debt Securities Acquired
in a Transfer,’’ December 12, 2003.
9. American Institute of Certified Public Accountants Practice Bulletin
No. 6, ‘‘Amortization of Discounts on Certain Acquired Loans,’’
August 1989.

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Treatment of previously accrued interest—The reversal
of previously accrued but uncollected interest applicable
to any asset placed in nonaccrual status and the treatment
of subsequent payments as either principal or interest
should be handled in accordance with generally accepted
accounting principles. Acceptable accounting treatment
includes a reversal of all previously accrued but uncollected interest applicable to assets placed in a nonaccrual
status against appropriate income and balance sheet
accounts.
For example, one acceptable method of accounting for
such uncollected interest on a loan placed in nonaccrual
status is (1) to reverse all of the unpaid interest by
crediting the ‘‘income earned, not collected on loans’’
account on the balance sheet, (2) to reverse the uncollected interest that has been accrued during the calendar
year-to-date by debiting the appropriate ‘‘interest and fee
income on loans’’ account on the income statement, and
(3) to reverse any uncollected interest that had been
accrued during previous calendar years by debiting the
‘‘allowance for loan and lease losses’’ account on the
balance sheet. The use of this method presumes that bank
holding company management’s additions to the allowance through charges to the ‘‘provision for loan and lease
losses’’ on the income statement have been based on an
evaluation of the collectability of the loan and lease
portfolios and the ‘‘income earned, not collected on
loans’’ account.
Treatment of cash payments and criteria for the cash
basis recognition of income—When doubt exists as to the
collectibility of the remaining recorded investment in an
asset in nonaccrual status, any payments received must
be applied to reduce the recorded investment in the asset
to the extent necessary to eliminate such doubt. Placing
an asset in nonaccrual status does not, in and of itself,
require a charge-off, in whole or in part, of the asset’s
recorded investment. However, any identified losses must
be charged off.
While an asset is in nonaccrual status, some or all of the
cash interest payments received may be treated as interest
income on a cash basis as long as the remaining recorded
investment in the asset (i.e., after charge-off of identified
losses, if any) is deemed to be fully collectible.10 (An
asset subject to the cost recovery method required by
10. An asset subject to the cost recovery method required by AICPA
Practice Bulletin No. 6 or Emerging Issues Task Force Issue No.
99-20, ‘‘Recognition of Interest Income and Impairment on Purchased

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AICPA Practice Bulletin No. 6 should follow that method
for reporting purposes.) A bank holding company’s
determination as to the ultimate collectibility of the
asset’s remaining recorded investment must be supported
by a current, well documented credit evaluation of the
borrower’s financial condition and prospects for repayment, including consideration of the borrower’s historical repayment performance and other relevant factors.
When recognition of interest income on a cash basis is
appropriate, it should be handled in accordance with
generally accepted accounting principles. One acceptable
practice involves allocating contractual interest payments
among interest income, reduction of the recorded investment in the asset, and recovery of prior charge-offs. If
this method is used, the amount of income that is
recognized would be equal to that which would have
been accrued on the asset’s remaining recorded investment at the contractual rate. A bank holding company
may also choose to account for the contractual interest in
its entirety either as income, reduction of the recorded
investment in the asset, or recovery of prior charge-offs,
depending on the condition of the loan, consistent with
its accounting policies for other financial reporting
purposes.
Restoration to accrual status—As a general rule, a
nonaccrual asset may be restored to accrual status when
(1) none of its principal and interest is due and unpaid,
and the bank holding company expects repayment of the
remaining contractual principal and interest, or (2) when
it otherwise becomes well secured and in the process of
collection. If any interest payments received while the
asset was in nonaccrual status were applied to reduce the
recorded investment in the asset, as discussed in the
preceding section of this entry, the application of these
payments to the asset’s recorded investment should not
be reversed (and interest income should not be credited)
when the asset is returned to accrual status.
For purposes of meeting the first test, the bank holding
company must have received repayment of the past due
principal and interest unless, as discussed below, (1) the
asset has been formally restructured and qualifies for
accrual status, (2) the asset is a purchased impaired loan
or debt security accounted for in accordance with AICPA
Statement of Position 03-3 and it meets the criteria for
accrual of income under the interest method specified in
and Retained Beneficial Interests in Securitized Financial Assets,’’
should follow that method for reporting purposes.
FR Y-9C
Glossary March 2007

that Statement of Position, (3) the asset has been acquired
at a discount (because there is uncertainty as to the
amounts or timing of future cash flows) from an unaffiliated third party, is accounted for in accordance with
AICPA Practice Bulletin No. 6, and meets the criteria for
amortization (i.e., accretion of discount) specified in that
Practice Bulletin, or (4) the borrower has resumed paying
the full amount of the scheduled contractual interest and
principal payments on a loan that is past due and in
nonaccrual status, even though the loan has not been
brought fully current, and the following two criteria are
met. These criteria are, first, that all principal and interest
amounts contractually due (including arrearages) are
reasonably assured of repayment within a reasonable
period and, second, that there is a sustained period of
repayment performance (generally a minimum of six
months) by the borrower in accordance with the contractual terms involving payments of cash or cash equivalents. A loan that meets these two criteria may be restored
to accrual status but must continue to be disclosed as past
due in Schedule HC-N until it has been brought fully
current or until it later must be placed in nonaccrual
status.
A loan or other debt instrument that has been formally
restructured as to be reasonably assured of repayment
and of performance according to its modified terms need
not be maintained in nonaccrual status, provided the
restructuring is supported by a current, well documented
credit evaluation of the borrower’s financial condition
and prospects for repayment under the revised terms.
Otherwise, the restructured asset must remain in nonaccrual status. The evaluation must include consideration
of the borrower’s sustained historical repayment performance for a reasonable period prior to the date on which
the loan or other debt instrument is returned to accrual
status. (In returning the asset to accrual status, sustained
historical payment performance for a reasonable time
prior to the restructuring may be taken into account.)
Such a restructuring must improve the collectibility of
the loan or other debt instrument in accordance with a
reasonable repayment schedule and does not relieve the
holding company from the responsibility to promptly
charge off all identified losses.
A formal restructuring may involve a multiple note
structure in which, for example, a troubled loan is
restructured into two notes. The first or ‘‘A’’ note represents the portion of the original loan principal amount
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that is expected to be fully collected along with contractual interest. The second or ‘‘B’’ note represents the
portion of the original loan that has been charged off and,
because it is not reflected as an asset and is unlikely to be
collected, could be viewed as a contingent receivable.
The ‘‘A’’ note may be returned to accrual status provided
the conditions in the preceding paragraph are met and:
(1) there is economic substance to the restructuring and it
qualifies as a troubled debt restructuring under generally
accepted accounting principles, (2) the portion of the
original loan represented by the ‘‘B’’ note has been
charged off before or at the time of the restructuring, and
(3) the ‘‘A’’ note is reasonably assured of repayment and
of performance in accordance with the modified terms.
Until the restructured asset is restored to accrual status, if
ever, cash payments received must be treated in accordance with the criteria stated above in the preceding
section of this entry. In addition, after a formal restructuring, if a restructured asset that has been returned to
accrual status later meets the criteria for placement in
nonaccrual status as a result of past due status based on
its modified terms or for other reasons, the asset must be
placed in nonaccrual status. For further information on
formally restructured assets, see the Glossary entry for
‘‘Troubled Debt Restructuring.’’
Treatment of multiple extensions of credit to one
borrower—As a general principle, nonaccrual status for
an asset should be determined based on an assessment of
the individual asset’s collectibility and payment ability
and performance. Thus, when one loan to a borrower is
placed in nonaccrual status, a bank holding company or
its subsidiaries do not automatically have to place all
other extensions of credit to that borrower in nonaccrual
status. When a depository institution has multiple loans
or other extensions of credit outstanding to a single
borrower, and one loan meets criteria for nonaccrual
status, the depository institution should evaluate its other
extensions of credit to that borrower to determine whether
one or more of these other assets should also be placed in
nonaccrual status.
Noninterest-Bearing Account: See ‘‘Deposits.’’
Nontransaction Account: See ‘‘Deposits.’’
Notes and Debentures Subordinated to Deposits: See
‘‘Subordinated notes and debentures.’’
Offsetting: Offsetting is the reporting of recognized
assets and liabilities on a net basis on the balance sheet
GL-52

where the ‘‘right of setoff’’ exists as discussed in APB
Opinion 10 and defined in FASB Technical Bulletin 88-2.
In addition, bank holding companies are permitted to
offset assets and liabilities recognized in the FR Y-9C for
forward, interest rate swap, currency swap, option, and
other conditional or exchange contracts executed with the
same counterparty when a ‘‘right of setoff’’ exists. Under
FASB Interpretation No. 39, Offsetting of Amounts
Related to Certain Contracts, a right of setoff exists
when all of the following conditions are met:
(1) Each party owes the other determinable amounts.
Thus, only bilateral netting is permitted.
(2) The reporting party has the right to set off the amount
owed with the amount owed by the other party.
(3) The reporting party intends to set off. This condition
does not have to be met for fair value amounts
recognized for conditional or exchange contracts that
have been executed with the same counterparty under
a master netting arrangement.
(4) The right of setoff is enforceable at law. Legal
constraints should be considered to determine whether
the right of setoff is enforceable. Accordingly, the
right of setoff should be upheld in bankruptcy (or
receivership). Offsetting is appropriate only if the
available evidence, both positive and negative,
indicates that there is reasonable assurance that the
right of setoff would be upheld in bankruptcy (or
receivership).
According to Interpretation No. 39, a master netting
arrangement exists if the reporting bank holding company has multiple contracts, whether for the same type of
conditional or exchange contract or for different types
of contracts, with a single counterparty that are subject to
a contractual agreement that provides for the net settlement of all contracts through a single payment in a single
currency in the event of default or termination of any one
contract.
Offsetting the assets and liabilities recognized for conditional or exchange contracts outstanding with a single
counterparty results in the net position between the two
counterparties being reported as an asset or a liability on
the balance sheet. The reporting entity’s choice to offset
or not to offset assets and liabilities recognized for conditional or exchange contracts must be applied
consistently.
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Offsetting of assets and liabilities is also permitted by
other pronouncements identified in Interpretation No. 39.
These pronouncements apply to such items as leverage
leases, pension plan and other postretirement benefit plan
assets and liabilities, and deferred tax assets and liabilities. In addition, FASB Interpretation No. 41, Offsetting
of Amounts Related to Certain Repurchase and Reverse
Repurchase Agreements, describes the circumstances in
which amounts recognized as payables under repurchase
agreements may be offset against amounts recognized
as receivables under reverse repurchase agreements and
reported as a net amount in the balance sheet. The
reporting entity’s choice to offset or not to offset payables
and receivables under Interpretation No. 41 must be
applied consistently.
According to the AICPA Audit and Accounting Guide for
Depository and Lending Institutions, FASB Interpretation No. 41 does not apply to securities borrowing or
lending transactions. Therefore, for purposes of filing
bank holding company reports, bank holding companies
should not offset securities borrowing and lending transactions in the balance sheet unless all the conditions set
forth in Interpretation No. 39 are met.
One-Day Transaction: See ‘‘Federal funds transactions.’’
Option: See ‘‘Futures, forward, and standby contracts.’’
Organization Costs: See ‘‘Start-up Activites.’’
Other Real Estate Owned: See ‘‘Foreclosed Assets’’
and the instructions to Schedule HC-M, item 13.
Overdraft: An overdraft can be either planned or
unplanned. An unplanned overdraft occurs when a
depository institution honors a check or draft drawn
against a deposit account when insufficient funds are on
deposit and there is no advance contractual agreement to
honor the check or draft. When a contractual agreement
has been made in advance to allow such credit extensions, overdrafts are referred to as planned or prearranged. Any overdraft, whether planned or unplanned,
is an extension of credit and is to be treated and reported
as a ‘‘loan’’ rather than being treated as a negative
deposit balance.
Planned overdrafts are to be classified in Schedule HC-C
by type of loan according to the nature of the overdrawn
depositor. For example, a planned overdraft by a commercial customer is to be classified as a ‘‘commercial and
industrial loan.’’
FR Y-9C
Glossary March 2007

Unplanned overdrafts in depositors’ accounts are to be
classified in Schedule HC-C, item 9, ‘‘All other loans,’’
unless the depositor is a depository institution or a
foreign government or official institution. Such unplanned
overdrafts would be reported in Schedule HC-C, item 2,
‘‘Loans to depository institutions and acceptances of
other banks’’ and item 7, ‘‘Loans to foreign governments
and official institutions.’’
For purposes of treatment of overdrafts, separate transaction accounts of a single depositor that are established
under a bona fide cash management arrangement are
regarded as a single account rather than multiple or
separate accounts. In such a situation, an overdraft in one
of the accounts of a single customer is netted against the
related transaction accounts of the customer and an
extension of credit is regarded as arising only if, and to
the extent, the combined accounts of the customer are
overdrawn.
The consolidated bank holding company’s overdrafts
on deposit accounts it holds with other depository institutions that are not consolidated on the reporting holding
company’s FR Y-9C (i.e., its ‘‘due from’’ accounts) are
to be reported as borrowings in Schedule HC, item 16,
except overdrafts arising in connection with checks or
drafts drawn by subsidiary depository institutions of the
reporting bank holding company and drawn on, or payable at or through, another depository institution either
on a zero-balance account or on an account that is not
routinely maintained with sufficient balances to cover
checks or drafts drawn in the normal course of business
during the period until the amount of the checks or drafts
is remitted to the other depository institution (in which
case, report the funds received or held in connection with
such checks or drafts as deposits in Schedule HC-E until
the funds are remitted).
Participations: See ‘‘Transfers of financial assets.’’
Participations
acceptances.’’

in

Acceptances:

See

‘‘Bankers’

Participations in Pools of Securities: See ‘‘Repurchase/
resale agreements.’’
Pass-through Reserve Balances: Under the Monetary
Control Act of 1980, and as reflected in Federal Reserve
Regulation D, depository institutions that are members of
the Federal Reserve System must maintain their required
reserves (in excess of vault cash) directly with a Federal
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Glossary

Reserve Bank. However, nonmember depository institutions may maintain their required reserves (in excess of
vault cash) in one of two ways: either (1) directly with a
Federal Reserve Bank or (2) indirectly in an account with
another institution (referred to here as a ‘‘correspondent’’), which, in turn, is required to pass the reserves
through to a Federal Reserve Bank. This second type of
account is called a ‘‘pass-through account,’’ and a depository institution passing its reserves to the Federal Reserve
through a correspondent is referred to as a ‘‘respondent.’’
This pass-through reserve relationship is legally and for
supervisory purposes considered to constitute an asset/
debt relationship between the respondent and the correspondent, and an asset/debt relationship between the
correspondent and the Federal Reserve. The required
reporting of the ‘‘pass-through reserve balances’’ reflects
this structure of asset/debt relationships.

Perpetual Preferred Stock: See ‘‘Preferred stock.’’

Perpetual Debt: Perpetual debt is an unsecured debt
instrument of the bank holding company or its subsidiaries that, if issued by a bank, must also be subordinated
to the claims of the depositors. The major characteristics
are described below:

Limited-life preferred stock is preferred stock that has a
stated maturity date or that can be redeemed at the option
of the holder. It excludes those issues of preferred stock
that automatically convert into perpetual preferred stock
or common stock at a stated date.

(1) The debt instrument cannot provide the note-holder
the right to demand repayment of principal except in
the event of bankruptcy, insolvency, or reorganization.

Perpetual preferred stock is preferred stock that does not
have a stated maturity date or that cannot be redeemed
at the option of the holder. It includes those issues of
preferred stock that automatically convert into common
stock at a stated date.

(2) The issuer can not voluntarily redeem the debt issue
without prior approval of the Federal Reserve, unless
the debt is converted to, exchanged for, or simultaneously replaced in like amount by an issue of
common or perpetual preferred stock of the issuer or
the issuer’s parent company.
(3) When issued by the bank holding company, a bank
subsidiary, or a subsidiary with substantial operations, the debt instrument must contain a provision
permitting interest payments to be deferred when
dividends on all outstanding common or preferred
stock of the issuer have been eliminated.
(4) When issued by a bank holding company or a subsidiary with substantial operations, the instrument must
convert automatically to common or perpetual preferred
stock of the issuer when the issuer’s retained earnings
and surplus accounts become negative.
For a complete discussion of the criteria for determining
the capital status of perpetual debt, see 12 CFR, Part 225,
Appendix B.
GL-54

Policyholder: A policyholder is the party that owns an
insurance policy.
Pooling of Interests: See ‘‘Business combinations.’’
Pools of Residential Mortgages, Participations in: See
‘‘Transfers of financial assets.’’
Pools of Securities, Participations in: See ‘‘Repurchase/
resale agreements.’’
Preauthorized Transfer Account: See ‘‘Deposits.’’
Preferred Stock: Preferred stock is a form of ownership
interest in a bank holding company or other company
which entitles its holders to some preference or priority
over the owners of common stock, usually with respect to
dividends or asset distributions in a liquidation.

Premiums and Discounts: A premium arises when a
bank holding company or its consolidated subsidiaries
purchase a security, loan, or other asset at a price in
excess of its par or face value, typically because the
current level of interest rates for such assets is less than
its contract or stated rate of interest. The difference
between the purchase price and par or face value represents the premium which all consolidated bank holding
companies are required to amortize.
A discount arises when a consolidated bank holding
company purchases a security, loan, or other asset at a
price below its par or face value, typically because the
current level of interest rates for such assets is greater
than its contract or stated rate of interest. A discount is
also present on instruments that do not have a stated rate
of interest such as U.S. Treasury bills and commercial
paper. The difference between par or face value and the
purchase price represents the discount which all bank
holding companies on the accrual basis of accounting are
required to accrete.
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Premiums and discounts are accounted for as adjustments
to the yield on an asset over the life of the asset. A
premium must be amortized and a discount must be
accreted from date of purchase or maturity, not to the call
or put date. The preferable method for amortizing premiums and accreting discounts involves the use of the
interest method for accruing income on the asset. The
objective of the interest method is to produce a constant
yield or rate of return on the carrying value of the asset
(par or face value plus unamortized premium or less
unaccreted discount) at the beginning of each amortization period over the asset’s remaining life. The difference
between the periodic interest income that is accrued on
the asset and interest at the stated rate is the periodic
amortization or accretion. However, a straight-line method
of amortization or accretion is acceptable if the results
are not materially different from the interest method.
Deferred income taxes applicable to timing differences
between the amounts of discount accreted for purposes of
these reports and for income tax purposes must
be recognized in each year-end reporting period and
included in item 9, ‘‘Applicable income taxes (foreign
and domestic),’’ in Schedule HI of the Consolidated
Income Statement.
A premium or discount may also arise when the reporting
bank holding company or its consolidated subsidiaries,
acting either as a lender or a borrower, are involved in an
exchange of a note for assets other than cash and the
interest rate is either below the market rate or not stated,
or the face amount of the note is materially different from
the fair value of the noncash assets exchanged. The
noncash assets and the related note shall be recorded at
either the fair value of the noncash assets or the market
value of the note, whichever is more clearly determinable. The market value of the note would be its present
value as determined by discounting all future payments
on the note using an appropriate interest rate, i.e., a rate
comparable to that on new loans of similar risk. The
difference between the face amount and the recorded
value of the note is a premium or discount. This discount
or premium shall be accounted for as an adjustment of
the interest income or expense over the life of the note
using the interest method described above.
For further information, see APB Opinion No. 21, Interest on Receivables and Payables.
Purchase Acquisition: See ‘‘Business combinations.’’
FR Y-9C
Glossary March 2007

Purchased Impaired Loans and Debt Securities: Purchased impaired loans and debt securities are loans and
debt securities that a bank holding company has purchased, including those acquired in a purchase business
combination, where there is evidence of deterioration of
credit quality since the origination of the loan or debt
security and it is probable, at the purchase date, that the
bank holding company will be unable to collect all
contractually required payments receivable. Such loans
and debt securities acquired in fiscal years beginning
after December 15, 2004, must be accounted for in
accordance with AICPA Statement of Position 03-3,
‘‘Accounting for Certain Loans or Debt Securities Acquired in a Transfer.’’ The Statement of Position does not
apply to loans that a bank has originated.
Under Statement of Position 03-3, a purchased impaired
loan or debt security is initially recorded at its purchase
price (in a purchase business combination, the present
value of amounts to be received). The Statement of
Position limits the yield that may be accreted on the loan
or debt security (the accretable yield) to the excess of the
bank holding company’s estimate of the undiscounted
principal, interest, and other cash flows expected at
acquisition to be collected on the asset over the bank
holding company’s initial investment in the asset. The
excess of contractually required cash flows over the cash
flows expected to be collected on the loan or debt
security, which is referred to as the nonaccretable difference, must not be recognized as an adjustment of yield,
loss accrual, or valuation allowance. Neither the accretable yield nor the nonaccretable difference may be shown
on the balance sheet (Schedule HC). After acquisition,
increases in the cash flows expected to be collected
generally should be recognized prospectively as an
adjustment of the asset’s yield over its remaining life.
Decreases in cash flows expected to be collected should
be recognized as an impairment.
Statement of Position 03-3 does not prohibit a bank
holding company from placing purchased impaired loans
and debt securities in nonaccrual status. Because a loan
or debt security accounted for in accordance with Statement of Position 03-3 has evidence of deterioration of
credit quality since origination, a purchasing bank holding company must determine upon acquisition whether it
is appropriate to recognize the accretable yield as income
over the life of the loan or debt security using the interest
method. In order to apply the interest method, the bank
holding company must have sufficient information to
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Glossary

reasonably estimate the amount and timing of the cash
flows expected to be collected on a purchased impaired
loan or debt security. When the amount and timing of the
cash flows cannot be reasonably estimated at acquisition,
the bank holding company should place the loan or debt
security in nonaccrual status and then apply the cost
recovery method or cash basis income recognition to the
asset. In addition, if a purchased impaired loan or debt
security is acquired primarily for the rewards of ownership of the underlying collateral, accrual of income is
inappropriate and the loan or debt security should be
placed in nonaccrual status. When accrual of income on a
purchased impaired loan or debt security is appropriate
(either at acquisition or at a later date when the amount
and timing of the cash flows can be reasonably estimated), the delinquency status of the asset should be
determined in accordance with its contractual repayment
terms for purposes of Schedule HC-N, Past Due and
Nonaccrual Loans, Leases, and Other Assets.

impaired loan should be reported as unearned income in
Schedule HC-C, item 11. In addition, bank holding
companies should report in Schedule HC-C, Memorandum items 5(a) and 5(b), the outstanding balance and
carrying amount (before any loan loss allowance), respectively, of all purchased impaired loans reported as held
for investment in Schedule HC-C.
For further information, refer to AICPA Statement of
Position 03-3.
Put Option: See ‘‘Futures, forward, and standby
contracts.’’
Real Estate, Loan Secured By: See ‘‘Loans secured by
real estate.’’
Reciprocal Balances: Reciprocal balances arise when
two depository institutions maintain deposit accounts
with each other, that is, when a subsidiary bank of the
consolidated bank holding company has both a due to
and a due from balance with another depository institution. For purposes of the FR Y-9C, reciprocal balances
between subsidiaries of the reporting bank holding
company and unrelated banks should be reported in
accordance with generally accepted accounting principles.

Statement of Position 03-3 prohibits a bank holding
company from ‘‘carrying over’’ or creating loan loss
allowances in the initial accounting for purchased impaired loans. This prohibition applies to the purchase of
an individual impaired loan, a pool or group of impaired
loans, and impaired loans acquired in a purchase business
combination. However, if, upon evaluation of a purchased impaired loan held for investment (and not
accounted for as a debt security) subsequent to acquisition, based on current information and events, it is
probable that a bank holding company is unable to collect
all cash flows expected at acquisition (plus additional
cash flows expected to be collected arising from changes
in estimate after acquisition) on the loan, the purchased
impaired loan should be considered impaired for purposes of establishing an allowance pursuant to FASB
Statement No. 5 or No. 114, as appropriate. Bank holding
companies should include such post-acquisition allowances in the bank holding company’s allowance for loan
and lease losses as reported in Schedule HC, item 4(c),
and Schedule HI-B, part II, item 7, and disclose the
amount of these allowances in Schedule HI-B, part II,
Memorandum item 4.

Reinsurance: Reinsurance is the transfer, with indemnification, of all or part of the underwriting risk from one
insurer to another for a portion of the premium or other
consideration. Reinsurance contacts may be on an excessof-loss or quota-share basis, the latter being when the
primary underwriter and the reinsurer proportionately
share all insured losses from the first dollar. Reinsurance
includes insurance coverage arranged by a bank holding
company affiliate such as a mortgage reinsurance company, underwritten by another underwriter and then
returned or ceded in part or whole back to the mortgage
reinsurance affiliate.

In Schedule HC-C, Loans and Leases, bank holding
companies should report the carrying amount (before any
loan loss allowance) of, i.e., the recorded investment in, a
purchased impaired loan in the appropriate loan category
(items 1 through 9). Neither the accretable yield nor the
nonaccretable difference associated with a purchased

Reinsurance Recoverables: Reinsurance recoverables
represent reimbursements expected by insurance underwriters, under reinsurance contracts governing underwriting coverage ceded to another insurer, for paid and
unpaid claims, claim settlement expenses and other policy benefits. Reinsurance recoverables do not include

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GAAP permits financial institutions to net reciprocal
balances where right of offset exists.
For a definition of ‘‘Commercial banks in the U.S.,’’ see
the Glossary entry for ‘‘Banks, U.S. and foreign.’’

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Glossary

insurance payments expected by the bank holding company as a result of policy claims filed by the company
with insurance underwriters.
Renegotiated ‘‘Troubled’’ Debt: See ‘‘Troubled debt
restructuring.’’
Reorganizations: See ‘‘Business combinations.’’
Repurchase Agreements to Maturity and Long-Term
Repurchase Agreements: See ‘‘Repurchase/resale
agreements.’’
Repurchase/Resale Agreements: A repurchase agreement is a transaction involving the ‘‘sale’’ of financial
assets by one party to another, subject to an agreement by
the ‘‘seller’’ to repurchase the assets at a specified date
or in specified circumstances. A resale agreement (also
known as a reverse repurchase agreement) is a transaction involving the ‘‘purchase’’ of financial assets by
one party from another, subject to an agreement by the
‘‘purchaser’’ to resell the assets at a specified date or in
specified circumstances.
As stated in the AICPA’s Audit and Accounting Guide for
Banks and Savings Institutions, dollar repurchase agreements (also called dollar rolls) are agreements to sell and
repurchase similar but not identical securities. The dollar
roll market consists primarily of agreements that involve
mortgage-backed securities (MBS). Dollar rolls differ
from regular repurchase agreements in that the securities
sold and repurchased, which are usually of the same
issuer, are represented by different certificates, are collateralized by different but similar mortgage pools (for
example, single-family residential mortgages) and generally have different principal amounts.
General rule—Consistent with FASB Statement No. 140,
Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities, repurchase and
resale agreements involving financial assets (e.g., securities and loans), including dollar repurchase agreements,
are either reported as (a) secured borrowings and loans or
(b) sales and forward repurchase commitments based on
whether the transferring (‘‘selling’’) institution maintains
control over the transferred assets. (See Glossary entry
for ‘‘transfers of financial assets’’ for further discussion
of control criteria).
If a repurchase agreement both entitles and obligates the
‘‘selling’’ institution to repurchase or redeem the transferred assets from the transferee (‘‘purchaser’’) the ‘‘selling’’ institution should report the transaction as a secured
FR Y-9C
Glossary March 2007

borrowing if and only if the following conditions have
been met:
(1) The assets to be repurchased or redeemed are the
same or ‘‘substantially the same’’ as those transferred, as defined by FASB Statement No. 140.
(2) The ‘‘selling’’ institution has the ability to repurchase
or redeem the transferred assets on substantially the
agreed terms, even in the event of default by the
transferee (‘‘purchaser’’). This ability is presumed to
exist if the ‘‘selling’’ institution has obtained cash or
other collateral sufficient to fund substantially all of
the cost of purchasing replacement assets from others.
(3) The agreement is to repurchase or redeem the transferred assets before maturity, at a fixed or determinable price.
(4) The agreement is entered into concurrently with the
transfer.
Participations in pools of securities are to be reported
in the same manner as security repurchase/resale
transactions.
Repurchase agreements reported as secured
borrowings.—If a repurchase agreement qualifies as a
secured borrowing, the ‘‘selling’’ institution should report
the transaction as indicated below based on whether the
agreement involves a security or some other financial
asset.
(1) Securities ‘‘sold’’ under agreements to repurchase are
reported in Schedule HC, item 14(b), ‘‘Securities
sold under agreements to repurchase.’’
(2) Financial assets (other than securities) ‘‘sold’’ under
agreements to repurchase are reported as follows:
(a) If the repurchase agreement has an original
maturity of one business day (or is under a
continuing contract) and is in immediately available funds, it should be reported in Schedule HC,
item 14(a), ‘‘Federal funds purchased (in domestic offices),’’ if it is a domestic office, and in
Schedule HC, item 16, ‘‘Other borrowed money,’’
if it is a foreign office.
(b) If the repurchase agreement has an original
maturity of more than one business day or is not
in immediately available funds, it should be
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reported in Schedule HC, item 16, ‘‘Other borrowed money.’’
In addition, the ‘‘selling’’ institution may need to record
further entries depending on the terms of the agreement.
If the ‘‘purchaser’’ has the right to sell or repledge
noncash assets, the ‘‘selling’’ institution should recategorize the transferred financial assets as ‘‘assets receivable’’
and report them in Schedule HC, item 11, ‘‘Other assets.’’
Otherwise, the financial assets should continue to be
reported in the same asset category as before the transfer
(e.g., securities should continue to be reported in Schedule HC, item 2, ‘‘Securities,’’ or item 5, ‘‘Trading
Assets,’’ as appropriate).
Resale agreements reported as secured borrowings.—
Similarly, if a resale agreement qualifies as a secured
borrowing, the ‘‘purchasing’’ institution should report the
transaction as indicated below based on whether the
agreement involves a security of some other financial
asset.
(1) Securities ‘‘purchased’’ under agreements to resell
reported in Schedule HC, item 3(b), ‘‘Securities
purchased under agreements to resell.’’
(2) Financial assets (other than securities) ‘‘purchased’’
under agreements to resell are reported as follows:
(a) If the resale agreement has an original maturity
of one business day (or is under a continuing
contract) and is in immediately available funds, it
should be reported in Schedule HC, item 3(a),
‘‘Federal funds sold (in domestic offices),’’ if it is
in a domestic office, and in Schedule HC, item
4(b), ‘‘Loans and leases, net of unearned income,’’
if it is a foreign office.
(b) If the resale agreement has an original maturity
of more than one business day or is not in
immediately available funds, it should be reported
in Schedule HC, item 4(b), ‘‘Loans and leases,
net of unearned income.’’
In addition, the ‘‘purchasing’’ institution may need to
record further entries depending on the terms of agreement. If the ‘‘purchasing’’ institution has the right to sell
the noncash assets it has ‘‘purchased’’ and sells these
assets, it should recognize the proceeds from the sale and
report its obligation to return the assets in Schedule HC,
item 20, ‘‘Other liabilities.’’ If the ‘‘selling’’ institution
defaults under the terms of the repurchase agreement and
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is no longer entitled to redeem the noncash assets, the
‘‘purchasing’’ institution should recognize these assets on
its own balance sheet (e.g., securities should be reported
in Schedule HC, item 2, ‘‘Securities,’’ or item 5, ‘‘Trading assets,’’ as appropriate) and initially measure them at
fair value. However, if the ‘‘purchasing’’ insitution has
already sold the assets it has ‘‘purchased,’’ it should
derecognize its obligation to return the assets. Otherwise,
the ‘‘purchasing’’ institution should not recognize the
transferred financial assets (i.e., the financial assets ‘‘purchased’’ under the resale agreement) on its balance sheet.
Repurchase/resale agreements reported as sales.—If a
repurchase agreement does not qualify as a secured
borrowing under FASB Statement No. 140, the selling
institution should account for the transaction as a sale of
financial assets and a forward repurchase commitment.
The selling institution should remove the transferred
assets from its balance sheet, record the proceeds from
the sale of transferred assets (including the forward
repurchase commitment) and record any gain or loss on
the transaction. Similarly, if a resale agreement does not
qualify as a borrowing under FASB Statement No. 140,
the purchasing institution should account for the transaction as a purchase of financial assets and a forward
resale commitment. The purchasing institution should
record the transferred assets on its balance sheet and
initially measure them at fair value, record the payment
for the purchased assets (including the forward resale
commitment).
Reserve Balances, Pass-through: See ‘‘Pass-through
reserve balances.’’
Sales of Assets for Risk-Based Capital Purposes: This
entry should be read in conjunction with the Federal
Reserve’s final rule revising the regulatory capital treatment of recourse arrangements and direct credit substitutes, including residual interests and credit-enhancing
interest-only strips, which was published on November 29, 2001. This entry provides guidance for determining whether sales of loans, securities, receivables, and
other assets are subject to the agencies’ risk-based capital
standards and are reportable in Schedule HC-R, Regulatory Capital, and Schedule HC-S, Servicing, Securitization and Asset Sale Activities. For information on the
reporting of transfers of financial assets for purposes of
the balance sheet, income statement, and related schedules, see the Glossary entry for ‘‘transfers of financial
assets.’’
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FR Y-9C
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Glossary

For purposes of reporting in Schedules HC-R and HC-S,
some transfers of assets that qualify as sales under
generally accepted accounting principles are subject to
the capital guidelines because they meet the following
definition of “recourse” that is set forth in those guidelines.
Definition of ‘‘recourse’’ for risk-based capital
purposes—As defined in capital guidelines, recourse
means an arrangement in which a bank holding company
retains, in form or in substance, any credit risk directly or
indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that
exceeds a pro rata share of the bank holding company’s
claim on the asset. If a bank holding company has no
claim on an asset it has sold, then the retention of any
credit risk is recourse.
A recourse obligation typically arises when an institution
transfers assets on a sale and retains an obligation to
repurchase the assets or absorb losses due to a default of
principal or interest or any other deficiency in the performance of the underlying obligor or some other party.
Recourse may also exist implicitly where a bank holding
company provides credit enhancement beyond any contractual obligation to support assets it has sold.
The following are examples of recourse arrangements:
(1) Credit-enhancing representations and warranties made
on the transferred assets, i.e., representations and
warranties that are made in connection with a transfer
of assets (including loan servicing assets) and that
obligate a bank holding company to protect investors
from losses arising from credit risk in the assets
transferred or the loans serviced. Credit-enhancing
representations and warranties include promises to
protect a party from losses resulting from the default
or nonperformance of another party or from an
insufficiency in the value of collateral. Creditenhancing representations and warranties do not
include:
(a) Early-default clauses and similar warranties that
permit the return of, or premium refund clauses
covering, qualifying 1–4 family residential first
mortgage loans, i.e., those that qualify for a
50 percent risk weight for risk-based capital
purposes, for a period of 120 days from the date
of transfer. These warranties may cover only
FR Y-9C
Glossary March 2007

those loans that were originated within 1 year of
the date of transfer.
(b) Premium refund clauses covering assets guaranteed, in whole or in part, by the U.S. Government, a U.S. Government agency, or a U.S.
Government-sponsored agency, provided the premium refund clauses are for a period not to
exceed 120 days from the date of transfer.
(c) Warranties that permit the return of assets in
instances of fraud, misrepresentation, or incomplete documentation.
(2) Loan servicing assets retained pursuant to an agreement under which the bank holding company does
one or more of the following:
(a) Is responsible for losses associated with the loans
serviced.
(b) Is responsible for making mortgage servicer cash
advances, i.e., funds that a residential mortgage
servicer advances to ensure an uninterrupted flow
of payments or the timely collection of residential mortgage loans, including disbursements
made to cover foreclosure costs or other expenses
arising from a mortgage loan to facilitate its
timely collection. A mortgage servicer cash
advance is not a recourse obligation if:
(i) the mortgage servicer is entitled to full reimbursement or, for any one residential mortgage loan, nonreimbursable advances are
limited to an insignificant amount of the
outstanding principal on that loan, and
(ii) the servicer’s entitlement to reimbursement
is not subordinated.
(c) Makes credit-enhancing representations and warranties on the serviced loans.
(3) Retained subordinated interests that absorb more
than their pro rata share of losses from the underlying
assets.
(4) Assets sold under an agreement to repurchase, if the
assets are not already included on the balance sheet.
(5) Loan strips sold without contractual recourse where
the maturity of the transferred portion of the loan is
shorter than the maturity of the commitment under
which the loan is drawn.
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Glossary

(6) Credit derivative contracts under which the bank
holding company retains more than its pro rata share
of credit risk on transferred assets.
(7) Clean-up calls, except that calls that are exercisable
at the option of the bank holding company (as
servicer or as an affiliate of the servicer) only when
the pool balance is 10 percent or less of the original
pool balance are not recourse.
In addition, all recourse arrangements in the form of
on-balance sheet assets are ‘‘residual interests.’’ The
capital guidelines define ‘‘residual interest’’ to mean
any on-balance sheet asset that represents an interest
(including a beneficial interest) created by a transfer that
qualifies as a sale (in accordance with generally accepted
accounting principles) of financial assets, whether through
a securitization or otherwise, and that exposes a bank
holding company to credit risk directly or indirectly
associated with the transferred asset that exceeds a pro
rata share of the bank holding company’s claim on the
asset, whether through subordination provisions or other
credit enhancement techniques. In general, residual interests include credit-enhancing interest-only strips, spread
accounts, cash collateral accounts, retained subordinated
interests, other forms of overcollateralization, accrued
but uncollected interest on transferred assets that (when
collected) will be available to serve in a credit-enhancing
capacity, and similar on-balance sheet assets that function as a credit enhancement.
If an asset transfer that qualifies for sale treatment under
generally accepted accounting principles meets the preceding definition of ‘‘recourse,’’ the transaction must
be treated as an ‘‘asset sale with recourse’’ for purposes
of reporting risk-based capital information in Schedule HC-R. The transaction must also be reported as an
asset sale with recourse in Schedule HC-S, item 1 or
item 11, as appropriate, depending on whether the asset
was securitized by the reporting institution.
Assets transferred in transactions that do not qualify as
sales under generally accepted accounting principles
should continue to be reported as assets on the balance
sheet and are subject to the capital guidelines.
Summary Description of the Risk-Based Capital Treatment of Recourse Arrangements—Under the capital
guidelines, in general, a bank holding company must
hold risk-based capital against the entire outstanding
amount of the assets sold with recourse. However,
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some of the exceptions to this general rule include the
following:
(1) Under the low-level exposure provisions of the capital guidelines, the risk-based capital requirement for
a recourse arrangement is limited to the maximum
contractual loss exposure when this amount is less
than the amount of risk-based capital that would be
required to be held against the entire outstanding
amount of the assets sold.
(2) For a residual interest or other recourse exposure in a
securitization (other than a credit-enhancing interestonly strip) that qualifies for the ratings-based
approach, the required amount of risk-based capital
is determined based on the relative risk of loss of the
residual interest or other recourse exposure.
(3) For a residual interest that does not qualify for the
ratings-based approach, including a credit-enhancing
interest-only strip that is not deducted from Tier 1
capital under the concentration limit, the residual
interest is subject to a dollar-for-dollar capital charge.
(4) Under Section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994,
risk-based capital must be held against the amount of
recourse retained on small business obligations transferred with recourse.
For further information on the reporting of recourse
arrangements for risk-based capital calculation purposes,
refer to the instructions for Schedule HC-R, Regulatory
Capital, including the sections of instructions on ‘‘RiskWeighted Assets’’ and ‘‘Balance Sheet Asset Categories’’ and the instructions for the following Schedule HC-R items:
• Item 49, ‘‘Retained recourse on small business obligations sold with recourse;’’
• Item 50, ‘‘Recourse and direct credit substitutes (other
than financial standby letters of credit) subject to the
low level exposure rule and residual interests subject to
a dollar-for-dollar capital requirement;’’ and
• Item 51, ‘‘All other financial assets sold with recourse.’’
Interpretations and illustrations of the definition of
‘‘recourse’’ for risk-based capital purposes:
(1) For any given asset transfer, the determination of
whether credit risk is retained by the transferring
institution in excess of a pro rata share of its claim on
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Glossary

the asset is to be based upon the substance of the
transfer agreement or other relevant documents or
informal commitments and understandings, or subsequent actions of the parties to the transactions, not
upon the form or particular terminology used. The
presence of a bona fide ‘‘sale with recourse’’ provision would establish the transaction as an asset sale
with recourse for purposes of risk-based capital and
Schedules HC-R and HC-S. However, the absence
of a recourse provision, the absence of the term
‘‘recourse,’’ even the presence of a statement to the
effect that there is no recourse or, in the case of a
participation, the use of the terms ‘‘pass-through’’ or
‘‘pure pass-through’’ will not by themselves establish
a transaction as a sale that is not subject to risk-based
capital. If other conditions and provisions of the
transfer are such as to leave the transferor with credit
risk as described in the definition of recourse, the
transfer is an asset sale with recourse for purposes of
risk-based capital and Schedules HC-R and HC-S.
(2) If assets are sold subject to specific contractual terms
that limit the seller’s recourse liability to a percentage of the amount of assets sold or to a specific
dollar amount and this percentage or amount exceeds
a pro rata share of the seller’s claim on the assets,
the transaction represents an asset sale with recourse
for risk-based capital purposes. For example, if assets
are sold subject to a ten percent recourse liability
provision (i.e., the seller’s credit risk is limited to ten
percent of the amount of assets sold) with no other
retention of credit risk by the seller, the total outstanding amount of the assets sold is subject to
risk-based capital, not just ten percent of the assets
sold, unless the low level exposure rule (discussed in
the instructions to Schedule HC-R, item 50) applies.
(3) Among the transfers where credit risk has been
retained by the seller and that should be considered
by the seller as asset sales with recourse for purposes
of risk-based capital and Schedules HC-R and HC-S
are arrangements such as the following (this list is
illustrative of the principles involved in the application of the definition of ‘‘recourse’’ and is not
all-inclusive)—
(a) the sale of an asset with a realistic bona fide put
option allowing the purchaser, at its option, to
return the asset to the seller;
(b) the sale of an asset guaranteed by a standby letter
of credit issued by the seller;
FR Y-9C
Glossary March 2007

(c) the sale of an asset guaranteed by a standby letter
of credit issued by any other party in which the
credit risk on the asset sold, either directly or
indirectly, rests with the seller;
(d) the sale of an asset guaranteed by an insurance
contract in which the seller, either directly or
indirectly, indemnifies or otherwise protects the
insurer in any manner against credit risk; and
(e) sales and securitizations of assets which use
contractual cash flows (e.g., interest-only strips
receivable and so-called ‘‘spread accounts’’),
retained subordinated interests, or retained securities (e.g., collateral invested amounts and cash
collateral accounts) as credit enhancements.
(4) The sale of a loan or other asset subject to an
agreement under which the seller will pass through to
the purchaser a rate of interest that differs from the
stated rate of interest on the transferred asset would
not, for this reason alone, require the transaction to
be treated as an asset sale with recourse for riskbased capital purposes provided (1) the seller’s obligation to pass interest through to the purchaser is
contingent upon the continued interest payment performance of the underlying obligor of the transferred
asset (i.e., the seller has no obligation to pass interest
through if the obligor defaults in whole or in part on
interest or principal) and (2) none of the other
characteristics of the sale or participation causes the
transaction to meet the definition of ‘‘recourse.’’
(5) The definition of ‘‘recourse’’ applies to all transfers
of assets, including sales of a single asset or of a pool
of assets and sales of participations in a single asset
or in a pool of assets (whether of similar or dissimilar
instruments). In participations that qualify for sale
treatment under generally accepted accounting principles and are not ‘‘syndications’’ (as described in the
Glossary item for that term), the seller of the participations should handle the transfer of shares to participants in accordance with the definition of ‘‘recourse,’’
even though the assets being participated were acquired or accumulated for the express purpose of
issuing participations and even though the participation was prearranged with the purchasers of the
participations. However, the definition of ‘‘recourse’’
does not apply to the initial operation and distribution of participations in the form of syndications,
since in a syndication there is no transfer of assets
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Glossary

involved of the type to which this definition is
addressed. Any subsequent transfers of shares, or
parts of shares, in a syndicated loan would be subject
to the ‘‘recourse’’ definition.
(6) The definition of ‘‘recourse’’ (and these interpretations and illustrations) is also applicable to asset
transfers that are made to special or limited purpose
entities that are not technically affiliated with the
seller. Regardless of the legal structure of the transaction, if credit risk is retained by the seller, either
contractually or otherwise, either directly or indirectly, the seller should treat the transaction as an
asset sale with recourse for purposes of risk-based
capital and Schedules HC-R and HC-S even if the
sale to the special purpose entity is stated as being
without recourse.
Savings Deposits: See ‘‘Deposits.’’
Securities Activities: Institutions should categorize
each security as trading, available-for-sale, or held-tomaturity consistent with FASB Statement No. 115,
“Accounting for Certain Investments in Debt and Equity
Securities,” as amended. Management should periodically reassess its security categorization decisions to
ensure that they remain appropriate.
Securities that are intended to be held principally for the
purpose of selling them in the near term should be
classified as trading assets. Trading activity includes
active and frequent buying and selling of securities for
the purpose of generating profits on short-term fluctuations in price. Securities held for trading purposes must
be reported at fair value, with unrealized gains and losses
recognized in current earnings and regulatory capital.
Held-to-maturity securities are debt securities that an
institution has the positive intent and ability to hold to
maturity. Held-to-maturity securities are generally reported at amortized cost. Securities not categorized as
trading or held-to-maturity must be reported as availablefor-sale. An institution must report its available-for-sale
securities at fair value on the balance sheet, but unrealized gains and losses are excluded from earnings and
reported in a separate component of equity capital.
Under Statement No. 115, institutions must determine
whether an impairment of an individual available-forsale or held-to-maturity security is other than temporary.
An impairment occurs whenever the fair value of a
security is less than its (amortized) cost basis. If an
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impairment is judged to be other than temporary, the cost
basis of the individual security shall be written down to
fair value as a new cost basis and the amount of the
write-down shall be included in earnings. For example, if
it is probable that an institution will be unable to collect
all amounts due according to the contractual terms of a
debt security not impaired at acquisition, an other-thantemporary impairment has occurred. In addition, under
FASB Staff Position Nos. FAS 115-1 and FAS 124-1,
institutions should apply existing other-than-temporary
impairment guidance to the determination of whether an
impairment is other than temporary. Such guidance
includes SEC Staff Accounting Bulletin No. 59, Other
Than Temporary Impairment of Certain Investments in
Debt and Equity Securities (Topic 5.M. in the Codification of Staff Accounting Bulletins) and EITF Issue No.
99-20, Recognition of Interest Income and Impairment on
Purchased and Retained Beneficial Interests in Securitized Financial Assets.
The proper categorization of securities is important to
ensure that trading gains and losses are promptly recognized in earnings and regulatory capital. This will not
occur when securities intended to be held for trading
purposes are categorized as held-to-maturity or availablefor-sale. The following practices are considered trading
activities:
(1) Gains Trading -- Gains trading is characterized by
the purchase of a security and the subsequent sale of
the same security at a profit after a short holding
period, while securities acquired for this purpose that
cannot be sold at a profit are typically retained in the
available-for-sale or held-to-maturity portfolio. Gains
trading may be intended to defer recognition of
losses, as unrealized losses on available-for-sale and
held-to-maturity debt securities do not directly affect
regulatory capital and generally are not reported in
income until the security is sold.
(2) When-Issued Securities Trading -- When-issued securities trading is the buying and selling of securities
in the period between the announcement of an offering and the issuance and payment date of the securities. A purchase of a ‘‘when-issued’’ security acquires the risks and rewards of owning a security and
may sell the when-issued security at a profit before
having to take delivery and pay for it. Because such
transactions are intended to generate profits from
short-term price movements, they should be categorized as trading.
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(3) Pair-offs -- Pair-offs are security purchase transactions that are closed-out or sold at, or prior to,
settlement date. In a pair-off, an institution commits
to purchase a security. Then, prior to the predetermined settlement date, the institution will pair-off the
purchase with a sale of the same security. Pair-offs
are settled net when one party to the transaction
remits the difference between the purchase and the
sale price to the counterparty. Pair-offs may also
involve the same sequence of events using swaps,
options on swaps, forward commitments, options on
forward commitments, or other off-balance sheet
derivative contracts.
(4) Extended Settlements -- In the U.S., regular-way
settlement for federal government and federal agency
securities (except mortgage-backed securities and
derivative contracts) is one business day after the
trade date. Regular-way settlement for corporate and
municipal securities is three business days after the
trade date. For mortgage-backed securities, it can be
up to 60 days or more after the trade date. The use of
extended settlements may be offered by securities
dealers in order to facilitate speculation on the part of
the purchaser, often in connection with pair-off transactions. Securities acquired through the use of a
settlement period in excess of the regular-way settlement periods in order to facilitate speculation should
be reported as trading assets.
(5) Repositioning Repurchase Agreements -- A repositioning repurchase agreement is a funding technique
offered by a dealer in an attempt to enable an
institution to avoid recognition of a loss. Specifically,
an institution that enters into a ‘‘when-issued’’ trade
or a ‘‘pair-off’’ (which may include an extended
settlement) that cannot be closed out at a profit on the
payment or settlement date will be provided dealer
financing in an effort to fund its speculative position
until the security can be sold at a gain. The institution
purchasing the security typically pays the dealer a
small margin that approximates the actual loss in the
security. The dealer then agrees to fund the purchase
of the security, typically buying it back from the
purchaser under a resale agreement. Any securities
acquired through a dealer financing technique such as
a repositioning repurchase agreement that is used to
fund the speculative purchase of securities should be
reported as trading assets.
FR Y-9C
Glossary March 2007

(6) Short Sales -- A short sale is the sale of a security that
is not owned. The purpose of a short sale generally is
to speculate on a fall in the price of the security. (For
further information, see the Glossary entry for ‘‘Short
position.’’)
One other practice, referred to as ‘‘adjusted trading,’’ is
not acceptable under any circumstances. Adjusted trading involves the sale of a security to a broker or dealer at
a price above the prevailing market value and the contemporaneous purchase and booking of a different security,
frequently a lower-rated or lower quality issue or one
with a longer maturity, at a price above its market value.
Thus, the dealer is reimbursed for losses on the purchase
from the institution and ensured a profit. Such transactions inappropriately defer the recognition of losses on
the security sold and establish an excessive cost basis for
the newly acquired security. Consequently, such transactions are prohibited and may be in violation of 18 U.S.C.
Sections 1001--False Statements or Entries and 1005-False Entries.
See also ‘‘Trading account’’
Securities Borrowing/Lending Transactions: Securities borrowing/lending transactions are typically initiated
by broker–dealers and other financial institutions that
need specific securities to cover a short sale or a customer’s failure to deliver securities sold. A transferee (‘‘borrower’’) of securities generally is required to provide
‘‘collateral’’ to the transferor (‘‘lender’’) of securities,
commonly cash but sometimes other securities or standby
letters of credit, with a value slightly higher than that of
the securities ‘‘borrowed.’’
Most securities borrowing/lending transactions do not
qualify as sales under FASB Statement No. 140 because
the agreement entitles and obligates the securities lender
to repurchase or redeem the transferred assets before
their maturity. (See the Glossary entry for ‘‘transfers of
financial assets’’ for further discussion of sale criteria.)
When such transactions do not qualify as sales, securities
lenders and borrowers should account for the transactions
as secured borrowings in which cash (or securities that
the holder is permitted by contract or custom to sell or
repledge) received as ‘‘collateral’’ by the securities lender
is considered the amount borrowed, and the securities
‘‘loaned’’ are considered pledged as collateral against the
amount borrowed. The ‘‘loaned securities’’ should continue to be reported on the securities lender’s balance
sheet as available-for-sale securities, held-to-maturity
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securities, or trading assets, as appropriate. ‘‘Loaned’’
securities that are reported as available-for-sale or heldto-maturity securities in Schedule HC-B, Securities,
should also be reported as ‘‘Pledged securities’’ in
Memorandum item 1 of that schedule.
If the securities borrowing/lending transaction meets the
criteria for a sale under FASB Statement No. 140, the
lender of the securities should remove the securities from
its balance sheet, record the proceeds from the sale of the
securities (including the forward repurchase commitment), and recognize any gain or loss on the transaction.
The borrower of the securities should record the securities on its balance sheet at fair value and record the
payment for the purchased assets (including the forward
resale commitment).
Securities, Participations in Pools of: See ‘‘Repurchase/
resale agreements.’’
Separate Accounts: Separate accounts are employed by
life insurers to segregate and account for assets and
related liabilities maintained to meet specific investment
objectives of contractholders. The accounts are often
maintained as separate accounting entities for pension
plans as well as fixed benefit, variable annuity and other
products on which the customer and not the insurer
retains all or most of the investment and/or interest rate
risk. Investment income and investment gains and losses
generally accrue directly to such contractholders and are
not accounted for on the general accounts of the insurer.
The carrying values of separate account assets and
liabilities usually approximate each other with little
associated capital reflected on the books of the insurer.
The assets of each account are legally segregated and are
not subject to claims that arise out of any other business
of the company.
Servicing Assets and Liabilities: The accounting and
reporting standards for servicing assets and liabilities are
set forth in FASB Statement No. 140, Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities and FASB Statement No. 65,
Accounting for Certain Mortgage Banking Activities as
amended by Statement No. 140. A summary of the
relevant sections of these accounting standard follows.
For further information, see FASB Statements No. 140
and No. 65 and the Glossary entry for ‘‘Transfers of
Financial Assets.’’
Servicing of mortgage loans, credit card receivables, or
other financial assets includes, but is not limited to,
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collecting principal, interest, and escrow payments from
borrowers; paying taxes and insurance from escrowed
funds; monitoring delinquencies; executing foreclosure if
necessary; temporarily investing funds pending distribution; remitting fees to guarantors, trustees, and others
providing services; and accounting for and remitting
principal and interest payments to the holders of beneficial interests in the financial assets. Servicers typically
receive certain benefits from the servicing contract and
incur the costs of servicing the assets.
Servicing is inherent in all financial assets; it becomes a
distinct asset or liability only when contractually separated from the underlying financial assets by sale or
securitization of the assets with servicing retained or by a
separate purchase or assumption of the servicing. When a
bank holding company undertakes an obligation to service financial assets, it must recognize a servicing asset
or liability for that servicing contract unless it securitizes
the assets, retains all of the resulting securities, and
classifies the securities as held-to-maturity debt securities. Servicing assets result from contracts to service
financial assets for which the benefits of servicing (revenues from contractually specified servicing fees, late
charges, and other ancillary sources) are expected to
more than adequately compensate the servicer for performing the servicing. Servicing liabilities result from
contracts to service financial assets for which the benefits
of servicing are not expected to adequately compensate
the servicer for performing the servicing. Contractually
specified servicing fees are all amounts that, per contract,
are due to the servicer in exchange for servicing the
financial asset and would no longer be received by a
servicer if the beneficial owners of the serviced assets or
their trustees or agents were to exercise their actual or
potential authority under the contract to shift the servicing to another servicer. Adequate compensation is the
amount of benefits of servicing that would fairly compensate a substitute servicer should one be required including the profit that would be demanded by a substitute
servicer in the marketplace.
When a bank holding company sells or securitizes financial assets and retains the servicing asset, the bank shall
allocate the cost of the financial assets to the servicing
assets and the financial assets (without the servicing)
based on their relative fair values. If it is not practicable
to estimate the fair values of the servicing assets and the
financial assets (without the servicing), the entire cost
shall be allocated to the financial assets (without the
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servicing) and no cost shall be allocated to the servicing
assets. If a bank holding company incurs a servicing
liability in a sale or securitization, the servicing liability
should initially be measured at fair value. If a bank
holding company securitizes assets, retains all of the
resulting securities, and classifies the securities as heldto-maturity debt securities, no separate servicing asset or
liability shall be recorded. If a bank purchases servicing
assets or assumes servicing liabilities in a transaction
other than a sale or securitization of the financial assets
being serviced, the asset or liability shall be recorded at
fair value. For purchased servicing assets, the fair value
is presumptively the price paid to acquire the servicing.
All servicing assets and liabilities carried on the books of
reporting bank holding companies shall be amortized
in proportion to, and over the period of, estimated net
servicing income (servicing revenue in excess of servicing costs) or net servicing loss (servicing costs in excess
of servicing revenue). The book value of servicing assets
and liabilities should be reviewed at least quarterly. If
the book value of a stratum of a servicing asset exceeds
its fair value, the servicing asset is considered to be
impaired and the book value shall be reduced to fair
value through a valuation allowance for that stratum. The
servicing assets shall be stratified into groups based on
one or more of the predominant risk characteristics of
the underlying financial assets for purposes of determining fair value. If the fair value of a servicing liability
increases above the book value, the increased obligation
shall be recognized as a loss in current earnings. The fair
value of servicing assets (liabilities) is the amount at
which the assets (liabilities) could be bought (incurred)
or sold (settled) in a bona fide transaction between
willing parties.
For purposes of the FR Y-9C, servicing assets resulting
from contracts to service loans secured by real estate (as
defined for Schedule HC-C, item 1, in the Glossary entry
for ‘‘Loans secured by real estate’’) should be reported
in Schedule HC-M, item 12(a), ‘‘Mortgage servicing
assets.’’ Servicing assets resulting from contracts to
service all other financial assets should be reported in
Schedule HC-M, item 12(b), ‘‘Purchased credit card
relationships and nonmortgage servicing assets.’’
Settlement Date Accounting: See ‘‘Trade date and
settlement date accounting.’’
Shell Branches: Shell branches are limited service
branches of banks that do not conduct transactions with
FR Y-9C
Glossary March 2007

residents, other than with other shell branches, in the
country in which they are located. Transactions at shell
branches are usually initiated and effected by their head
office or by other related branches outside the country in
which the shell branches are located, with records and
supporting documents maintained at the initiating offices.
Examples of such locations are the Bahamas and the
Cayman Islands.
Short Position: When a bank holding company or its
consolidated subsidiaries sell an asset that they do not
own, they have established a short position. If on the
report date a bank holding company or its subsidiaries are
in a short position, it shall report its liability to purchase
the asset in Schedule HC, item 15, ‘‘Trading liabilities.’’
In this situation, the right to receive pay ment shall be
reported in Schedule HC, item 11, ‘‘Other assets.’’ Short
positions shall be reported gross. Short trading positions
shall be revalued consistent with the method used by the
reporting bank holding company for the valuation of its
trading account assets.
Standby Contract: See ‘‘Futures, forward, and standby
contracts.’’
Standby Letter of Credit: See ‘‘Letter of credit.’’
Start-Up Activities: Guidance on the accounting and
reporting for the costs of start-up activities, including
organization costs, is set forth in AICPA Statement of
Position 98-5, Reporting on the Costs of Start-Up Activities. A summary of this accounting guidance follows. For
further information, see AICPA Statement of Position
98-5.
Start-up activities are defined broadly as those one-time
activities related to opening a new facility, introducing a
new product or service, conducting business in a new
territory, conducting business with a new class of customer, or commencing some new operation. Start-up
activities include activities related to organizing a new
entity, such as a new bank holding company, the costs of
which are commonly referred to as organization costs.
Organization costs for a bank holding company are the
direct costs incurred to incorporate the bank holding
company. Such costs include, but are not limited to,
professional (e.g., legal, accounting, and consulting) fees
and printing costs directly related to the incorporation
process, and the cost of economic impact studies. Costs
of start-up activities, including organization costs, should
be expensed as incurred. Costs of acquiring or constructing premises and fixed assets and getting them ready for
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their intended use are not start-up costs, but costs of using
such assets that are allocated to start-up activities (e.g.,
depreciation of computers) are considered start-up costs.
For a new bank holding company, pre-opening expenses
such as salaries and employee benefits, rent, depreciation, supplies, directors’ fees, training, travel, postage,
and telephone are considered start-up costs. Pre-opening
income earned and expenses incurred from the bank
holding company’s inception through the date the bank
holding company commences operations should be
reported in the income statement using one of the two
following methods, consistent with the manner in which
the reporting bank holding company reports pre-opening
income and expenses for other financial reporting purposes: (1) Pre-opening income and expenses for the
entire period from the bank holding company’s inception
through the date the bank holding company commences
operations should be reported in the appropriate items of
Schedule HI, Consolidated Report of Income, each quarter during the calendar year in which operations commence; or (2) The net amount of pre-opening income and
expenses for the period from the bank holding company’s
inception until the beginning of the calendar year in
which the bank holding company commences operations
should be included, along with the bank holding company’s opening (original) equity capital, in Schedule HI-A,
item 14, ‘‘Other adjustments to equity capital (not
included above).’’ The net amount of these pre-opening
income and expenses should be identified and described
in the ‘‘Notes to the Income Statement.’’ Pre-opening
income earned and expenses incurred during the calendar
year in which the bank holding company commences
operations should be reported in the appropriate items
of Schedule HI, Consolidated Report of Income, each
quarter during the calendar year in which operations
commence.
The organization costs of forming a holding company
and the costs of other holding company start-up activities
are sometimes paid by the bank that will be owned by the
holding company. These are the holding company’s
costs, whether or not the holding company formation is
successful, and they should be reported as expenses of
the bank holding company.
STRIPS: See ‘‘Coupon Stripping, Treasury Receipts,
and STRIPS.’’
Subordinated Notes and Debentures: A subordinated
note or debenture is a form of debt issued by a bank
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holding company or its subsidiaries. When issued by a
subsidiary bank, a subordinated note or debenture is not
insured by a federal agency, is subordinated to the claims
of depositors, has an original weighted average maturity
of five years or more. Such debt shall be issued by a bank
with the approval of, or under the rules and regulations
of, the appropriate federal bank supervisory agency (i.e.,
the Board of Governors of the Federal Reserve System,
the Office of the Comptroller of the Currency, or the
Federal Deposit Insurance Corporation).
When issued by a bank holding company or its consolidated nonbank subsidiaries, a subordinated note or
debenture is a form of unsecured long-term debt that is
subordinated to other debt of the consolidated bank
holding company.
Both notes and debentures subordinated to deposits and
other subordinated notes and debentures of the bank
holding company are to be reported in Schedule HC, item
19(a), ‘‘Subordinated notes and debentures.’’
Subsidiaries: The treatment of subsidiaries in the
FR Y-9C depends upon the degree of ownership held by
the reporting bank holding company.
The term ‘‘subsidiary’’ is defined under Section 225. 2 of
Federal Reserve Regulation Y, which generally includes
companies 25 percent or more owned or controlled by
another company. However, for purposes of the Consolidated Financial Statements for Bank Holding Companies, a subsidiary is a company in which the parent
bank holding company directly or indirectly owns more
than 50 percent of the outstanding voting stock.
An associated company is a corporation in which the
bank holding company, directly or indirectly, owns 20
to 50 percent of the outstanding voting stock and over
which the bank holding company exercises significant
influence. This 20 to 50 percent ownership is presumed to
carry ‘‘significant’’ influence unless the bank holding
company can demonstrate the contrary to the satisfaction
of the Federal Reserve.
A corporate joint venture is a corporation owned and
operated by a group of companies (‘‘joint venturers’’), no
one of which has a majority interest, as a separate and
specific business or project for the mutual benefit of the
joint venturers. Each joint venturer may participate,
directly or indirectly, in the management of the joint
venture. An entity that is a majority-owned subsidiary
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of one of the joint venturers is not a corporate joint
venture.
Certain subsidiaries (as specified in the General Instructions section of this book) must be consolidated on the
FR Y-9C. The equity ownership in subsidiaries that are
not consolidated on the FR Y-9C and in associated
companies is accounted for using the equity method of
accounting and is reported in Schedule HC, item 8,
‘‘Investments in unconsolidated subsidiaries and associated companies.’’
Ownership in a corporate joint venture is to be treated in
the same manner as an associated company (defined
above) only to the extent that the equity share represents
significant influence over management. Otherwise, equity
holdings in a joint venture are treated as holdings of
corporate stock and income is recognized only when
distributed in the form of dividends.
‘‘Super NOW’’ Account: See ‘‘Deposits.’’
Suspense Accounts: Suspense accounts are temporary
holding accounts in which items are carried until they can
be identified and their disposition to the proper account
can be made. The items included in these accounts should
be reviewed and should be reported in the appropriate
accounts of the FR Y-9C.
Syndications: A syndication is a participation, usually
involving shares in a single loan, in which several
participants agree to enter into an extension of credit
under a bona fide binding agreement that provides that,
regardless of any even each participant shall fund and be
at risk only up to a specified percentage of the total
extension of credit or up to a specified dollar amount. In a
syndication, the participants agree to the terms of the
participation prior to the execution of the final agreement
and the contract is executed by the obligor and by all the
participants, although there is usually a lead institution
organizing or managing the credit. Large commercial and
industrial loans, large loans to finance companies, and
large foreign loans may be handled through such syndicated participations.
Each participant in the syndicate, including the lead bank
of the bank holding company, records its own share of the
participated loan and the total amount of the loan is not
entered on the books of one bank to be shared through
transfers of loans. Thus, the initial operation and distribution of this type of participation does not require a
determination as to whether a transfer that should be
FR Y-9C
Glossary March 2007

accounted for as a sale has occurred. However, any
subsequent transfers of shares, or parts of shares, in the
syndicated loan would be subject to the provisions of
FASB Statement No. 140 governing whether these transfers should be accounted for as a sale or a secured
borrowing. (See the Glossary entry for ‘‘transfers of
financial assets.’’)
Telephone Transfer Account: See ‘‘Deposits.’’
Term Federal Funds: See ‘‘Federal funds transactions.’’
Time Deposits: See ‘‘Deposits.’’
Trade Date and Settlement Date Accounting: Transactions in securities and trading account assets (including
money market instruments) should be reported on the
basis of trade date accounting in accordance with generally accepted accounting principles. However, if the
reported amounts under settlement date accounting would
not be materially different from those under trade date
accounting, settlement date accounting is acceptable.
Whichever method a bank holding company elects should
be used consistently, unless the bank holding company
has elected settlement date accounting and subsequently
decides to change to the preferred trade date method.
Under trade date accounting, assets purchased shall be
recorded in the appropriate asset category on the trade
date and the bank holding company’s (or its consolidated
subsidiaries’) obligation to pay for those assets shall be
reported in ‘‘Other liabilities.’’ Conversely, when an asset
is sold, it shall be removed on the trade date from the
asset category in which it was recorded, and the proceeds
receivable resulting from the sale shall be reported in
‘‘Other assets.’’ Any gain or loss resulting from such
transaction shall also be recognized on the trade date. On
the settlement date, disbursement of the payment or
receipt of the proceeds will eliminate the respective
‘‘Other liability’’ or ‘‘Other asset’’ entry resulting from
the transaction.
Under settlement date accounting, assets purchased are
not recorded until settlement date. On the trade date, no
entries are made. Upon receipt of the assets on the
settlement date, the asset is reported in the proper asset
category and payment is disbursed. The selling bank
holding company (or its consolidated subsidiaries) on the
trade date, would make no entries. On settlement date,
the selling bank holding company would reduce the
appropriate asset category and reflect the receipt of the
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Glossary

payment. Any gain or loss resulting from such transaction would be recognized on the settlement date.

losses recognized in current income in a manner similar
to trading account assets.

Trading Account: Bank holding companies that (a) regularly underwrite or deal in securities, interest rate, foreign
exchange rate, commodity, equity, and credit derivative
contracts; other financial instruments; and other assets for
resale, (b) acquire or take positions in such items principally for the purpose of selling in the near term or
otherwise with the intent to resell in order to profit from
short-term price movements, or (c) acquire or take positions in such items as an accommodation to customers or
for other trading purposes shall report such assets or
positions as trading assets or liabilities.

Given the nature of the trading account, transfers into or
from the trading category should be rare. Transfers
between a trading account and any other account of the
bank holding company must be recorded at fair value at
the time of the transfer. For a security transferred from
the trading category, the unrealized holding gain or loss
at the date of the transfer will already have been recognized in earnings and should not be reversed. For a
security transferred into the trading category, the unrealized holding gain or loss at the date of the transfer should
be recognized in earnings.

All trading assets should be segregated from a bank
holding company’s other assets and reported in Schedule HC, item 5, ‘‘Trading assets.’’ In addition, for bank
holding companies with average trading assets of $2 million or more (from Schedule HC-K), the types of assets
and liabilities in the trading account should be detailed in
Schedule HC-D, ‘‘Trading Assets and Liabilities.’’ A
bank holding company’s failure to establish a separate
account for assets that are used for trading purposes does
not prevent such assets from being designated as trading
for purposes of this report. For further information, see
the FFIEC Supervisory Policy Statement on Securities
Activities and FASB Statement No. 115, Accounting for
Certain Investments in Debt and Equity Securities.
All trading account assets should be reported at their
fair value with unrealized gains and losses recognized
in current income. When a security or other asset is
acquired, a bank holding company should determine
whether it intends to hold the asset for trading or for
investment (e.g., for securities, available-for-sale or heldto-maturity). A bank holding company should not record
a newly acquired asset in a suspense account and later
determine whether it was acquired for trading or investment purposes. Regardless of how a bank holding company categorizes a newly acquired asset, management
should document its decision.
All trading liabilities should be segregated from other
transactions and reported in Schedule HC, item 15,
‘‘Trading liabilities.’’ The trading liability account
includes the fair value of derivative contracts held fortrading that are in loss positions and short sales of
securities and other assets. Trading account liabilities
should be reported at fair value with unrealized gains and
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For purposes of this report, short sales of securities or
other assets are treated as trading transactions because
such sales are entered into with the intent to profit from
short-term price movements. Nonetheless, the obligation
incurred in a short sale should not be netted against
trading assets, but should be recorded as a liability in
Schedule HC, item 15, ‘‘Trading liabilities,’’ and in
Schedule HC-D, item 13, ‘‘Liability for short positions.’’
(See the Glossary entry for ‘‘short position.’’)
Transaction Account: See ‘‘Deposits.’’
Transfers of Financial Assets: The accounting and
reporting standards for transfers of financial assets are set
forth in FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, which replaces FASB Statement No.
125 of the same name. These standards, which bank holding
companies must follow for purposes of these reports, are
based on consistent application of a financial components
approach that focuses on control. Under the financial components approach, after the reporting bank holding company
transfers financial assets, it recognizes the financial and
servicing assets it controls and the liabilities it has incurred,
removes financial assets from the balance sheet when
control has been surrendered, and removes liabilities from
the balance sheet when extinguished. A summary of those
accounting and reporting standards follows. For further
information, see FASB Statement No. 140, the FASB staff
implementation guide to statement No. 140, and the Glossary entries for ‘‘Extinguishments of Liabilities’’ and ‘‘Servicing Assets and Liabilities.’’
FASB Statement No. 140 is effective for transfers of
assets, including repurchase agreements, loan participations, dollar-rolls, securities lending, and similar transactions, occurring after March 31, 2001. However, the
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provisions of Statement No. 140 governing the accounting for collateral are effective for December 31, 2000,
year-end financial statements. Bank holding companies
should apply Statement No. 140 prospectively after its
effective dates, with earlier or retroactive application not
permitted, except for the provisions of this accounting
standard applicable to servicing contracts in existence
before January 1, 1997 (see the Glossary entry for
‘‘Servicing Assets and Liabilities’’), and financial assets
subject to prepayment held on or acquired after January 1, 1997 (discussed below in this Glossary entry).
Statement No. 125 generally applies to transfers of
financial assets occurring after December 31, 1996, but
before April 1, 2001.
A financial asset is cash, evidence of an ownership
interest in another entity, or a contract that conveys to
the bank holding company a contractual right either to
receive cash or another financial instrument from another
entity or to exchange other financial instruments on
potentially favorable terms with another entity. Most of
the assets on a bank holding company’s balance sheet are
financial assets, including balances due from depository
institutions, securities, federal funds sold, securities purchased under agreements to resell, loans and lease financing receivables, and interest-only strips receivable.11
However, servicing assets are not financial assets. Financial assets also include financial futures contracts, forward contracts, interest rate swaps, interest rate caps,
interest rate floors, and certain option contracts.
Determining Whether a Transfer Should be Accounted for
as a Sale or a Secured Borrowing: A bank holding
company should account for a transfer of its financial
assets (or a transfer of all or a portion of one of its financial
assets) in which it surrenders control over those financial
assets as a sale to the extent that it receives consideration
other than beneficial interests in the transferred assets in
exchange. According to Statement No. 140, a transferor
(i.e., the entity that transfers all or a portion of one or more
financial assets) has surrendered control over transferred
assets, and therefore has sold the assets, if and only if all
three of the following conditions are met:

11. Both Statement Nos. 125 and 140 define an interest-only strip receivable as the contractual right to receive some or all of the interest due
on a bond, mortgage loan, collateralized mortgage obligation, or other
interest-bearing financial asset.
FR Y-9C
Glossary March 2007

(1) The transferred assets have been isolated from the
transferor, i.e., put presumptively beyond the reach of
the transferor and its creditors, even in bankruptcy or
other receivership.
(2) Each transferee (i.e., the entity that recieves all or a
portion of one or more financial assets from the
transferor), or each holder of the beneficial interests
in a qualifying special purpose entity that is a transferee, has the right to pledge or exchange the assets it
received, and no condition both restrains the transferee from taking advantage of that right and provides more than a trivial benefit to the transferor.
(3) The transferor does not maintain effective control
over the transferred assets through (a) an agreement
that both entitles and obligates it to repurchase or
redeem the transferred assets before their maturity or
(b) the ability to unilaterally cause the holder to
return specific assets, other than through a clean-up
call option.
If a transfer of financial assets in exchange for cash or
other consideration (other than beneficial interests in the
transferred assets) does not satisfy the criteria for sale
treatment, the transfer should be accounted for as a
secured borrowing with pledge of collateral.
Accounting for a Transfer That Qualifies as a Sale: Upon
the completion of a transfer of financial assets that
satisfies all three of the conditions to be accounted for as
a sale, the purchaser(s) must recognize on the balance
sheet all assets obtained and any liabilities incurred and
initially measure them at fair value. The aggregate fair
value is presumed to be the price paid by the purchaser(s). As for the selling bank holding company, it must:
(1) Remove all assets sold from the balance sheet while
continuing to carry on its balance sheet any retained
interest in the transferred assets, including, if applicable, servicing assets, retained undivided interests,
and beneficial interests in assets transferred to a
qualifying special-purpose entity in a securitization.
The selling bank holding company must allocate the
amount at which the transferred assets were carried
on the balance sheet at the date of the transfer
between the assets sold and the retained interests, if
any, based on their relative fair values at that date.
(2) Recognize on the balance sheet all cash, derivative
financial instruments, and other assets obtained and
all servicing liabilities and other liabilities incurred in
GL-69

Glossary

consideration as proceeds of the sale. Derivatives
include put or call options held or written (e.g., guarantee or recourse obligations), forward commitments
(e.g., commitments to deliver additional receivables
in some securitizations), and swaps (e.g., provisions
that convert interest rates from fixed to variable).
(3) Initially measure the assets obtained and liabilities
incurred in a sale at fair value. However, if it is not
practicable to estimate the fair value of an asset
obtained, the selling bank holding company must
record the asset at zero. If it is not practicable to
estimate the fair value of a liability incurred, the
selling bank holding company must not recognize
any gain on the sale. The liability should be recorded
on the balance sheet at the greater of:
(a) The amount, if any, by which the fair values of
the assets obtained in the sale less the fair values
of the liabilities incurred in the sale exceeds the
sum of the carrying values of the assets transferred, or
(b) The amount of loss that is probable of occurring
in accordance with FASB Statement No. 5,
Accounting for Contingencies, as interpreted by
FASB Interpretation No. 14, Reasonable Estimation of the Amount of a Loss. Under that interpretation, when the reasonable estimate of the loss is
a range and some amount within the range
appears at the time to be a better estimate than
any other amount within the range, that amount
should be considered probable. When no amount
within the range is a better estimate than any
other amount, the minimum amount in the range
should be considered probable.
(4) Recognize in income any gain or loss on the sale.
If, as a result of a change in circumstances, a bank
holding company transferor regains control of a financial
asset previously accounted for appropriately as having
been sold because one or more of the conditions for sale
accounting in FASB Statement No. 140 are no longer
met, such a change should be accounted for in the same
manner as a purchase of the financial asset from the
former transferee (purchaser) in exchange for a liability
assumed. The transferor should recognize (rebook) the
financial asset on its balance sheet together with a
liability to the former transferee, measuring the asset and
liability at fair value on the date of the change in
GL-70

circumstances. If the rebooked financial asset is a loan, it
must be reported as a loan asset in Schedule HC-C, either
as a loan held for sale or a loan held for investment, based
on facts and circumstances, in accordance with generally
accepted accounting principles. The liability to the former
transferee should be reported as a secured borrowing in
Schedule HC, item 16, ‘‘Other borrowed money.’’ This
accounting and reporting treatment applies, for example,
to U.S. Government-guaranteed or -insured residential
mortgage loans backing Government National Mortgage
Association (GNMA) mortgage-backed securities that a
bank holding company services after it has securitized
the loans in a transfer accounted for as a sale. If and when
individual loans later meet delinquency criteria specified
by GNMA, they are eligible for repurchase (buy-back)
and the bank holding company is deemed to have
regained effective control over these loans. The delinquent loans must be brought back onto the bank holding
company’s books as loan assets, regardless of whether
the bank holding company intends to exercise the buyback option.
Bank holding companies should refer to FASB Statement
No. 140 for implementation guidance for accounting for
transfers of partial interests, transfers of certain lease receivables, securities lending transactions, repurchase agreements including ‘‘dollar rolls,’’ ‘‘wash sales,’’ loan syndications, loan participations (discussed below), risk
participations in bankers acceptances, factoring arrangements, and transfers of receivables with recourse. However,
this accounting standard does not provide guidance on the
accounting for most assets and liabilities recorded on the
balance sheet following a transfer accounted for as a sale.
As a result, after their initial measurement or carrying
amount allocation, these assets and liabilities should be
accounted for in accordance with the existing generally
accepted accounting principles applicable to them.
Loan Participations: If a loan participation agreement
gives a participating institution the right to pledge or
exchange the participation, the isolation test has been
met, and the originating lender does not maintain effective control over the participation, then the three conditions for the surrender of control set forth in FASB
Statement No. 140 have been met and the originating
lender should account for transfers to the participating
institution as sales of financial assets.
An originating lender’s right of first refusal on a bona
fide offer to the participating institution from a third
Glossary

FR Y-9C
March 2007

Glossary

party, a requirement for a participating institution to
obtain the originating lender’s permission that shall not
be unreasonably withheld, or a prohibition on the participating institution’s sale of the participation to the
originating lender’s competitor is a limitation on the
participating institutions rights, but is presumed not to
constrain a participant from exercising its right to pledge
or exchange the participation. However, if the participation agreement constrains the participating institution
from pledging or exchanging its participation, the originating lender has not relinquished control over the
loan and should account for the transfer as a secured
borrowing.
A loan participation agreement may give the originating
lender the contractual right to repurchase a loan participation at any time. In this situation, the right to repurchase is effectively a call option on a specific loan participation, i.e., a participation that is not readily obtainable
in the marketplace. Regardless of whether this option is
freestanding or attached, it either constrains the participating institution from pledging or exchanging its participation or results in the originating lender maintaining
effective control over the participation. As a consequence, the contractual right to repurchase precludes sale
accounting and the transfer should be accounted for as
a secured borrowing.
In addition, under a loan participation agreement, the
originating lender may give the participating institution
the right to resell the participation, but reserves the right
to call the loan participation at any time from whomever
holds it and can enforce that right by discontinuing the
flow of interest to the holder of the participation at the
call date. In this situation, the originating lender has
maintained effective control over the particiaption and
the transfer should be accounted for as a secured borrowing, not as a sale.

subject to the banking agencies’ risk-based capital requirements as discussed in the Glossary entry for ‘‘sales of
assets for risk-based capital purposes’’ and in the instructions for Schedule HC-R, Regulatory Capital.
If an originating consolidated FDIC-insured lender
transfers a loan participation with recourse after December 31, 2001, the participation generally will not be
considered isolated from the transferor, i.e., the originating lender, in the event of an FDIC receivership. Section 360.6 of the FDIC’s regulations limits the FDIC’s
ability to reclaim loan participations transferred ‘‘without
recourse,’’ as defined in the regulations, but does not limit
the FDIC’s ability to reclaim loan participations transferred with recourse. Under Section 360.6, a participation
that is subject to an agreement that requires the originating lender to repurchase the participation or to otherwise
compensate the participating institution due to a default
on the underlying loan is considered a participation
‘‘with recourse.’’ As a result, a loan participation transferred ‘‘with recourse’’ after December 31, 2001, generally should be accounted for as a secured borrowing and
not as a sale for financial reporting purposes. This means
that the originating lender should not remove the participation from its loan assets on the balance sheet, but
should report the secured borrowing in Schedule HC,
item 16, ‘‘Other borrowed money.’’
Financial Assets Subject to Prepayment: Financial assets
such as interest-only strips receivable and certain loans,
debt securities, other receivables, and retained interests in
securitizations can be contractually prepaid or otherwise
settled in such a way that the holder of the financial asset
would not recover substantially all of its recorded investment. After their initial recording on the balance sheet,
financial assets of this type must be subsequently measured at fair value like available-for-sale securities
or trading securities.
Traveler’s Letter of Credit: See ‘‘Letter of credit.’’

If an originating consolidated FDIC-insured lender has
transferred a loan participation to a participating institution with recourse prior to January 1, 2002, the existence
of the recourse obligation in and of itself does not
preclude sale accounting for the transfer under Statement No. 140. If a loan participation with recourse prior
to January 1, 2002, meets the three conditions identified
above in order for the transferor to have surrendered
control over the transferred assets, the transfer should be
accounted for as a sale for financial reporting purposes.
However, a loan participation sold with recourse is
FR Y-9C
Glossary March 2007

Treasury Stock: Treasury stock is stock that the bank
holding company has issued and subsequently acquired,
but that has not been retired or resold. As a general rule,
treasury stock is to be carried at cost and is a deduction
from a bank holding company’s total equity capital.
‘‘Gains’’ and ‘‘losses’’ on the sale, retirement, or other
disposal of treasury stock are not to be reported in
Schedule HI, Income Statement, but should be reflected
in Schedule HI-A, items 7 and 8, ‘‘Sale of treasury
stock,’’ and ‘‘Purchase of treasury stock.’’ Such gains and
GL-71

Glossary

losses, as well as the excess of the cost over the par value
of treasury stock carried at par, are generally to be treated
as adjustments to Schedule HC, item 25, ‘‘Surplus.’’
For further information, see Accounting Research Bulletin No. 43, as amended by APB Opinion No. 6.
Troubled Debt Restructuring: The accounting standards for troubled debt restructurings are set forth in
FASB Statement No. 15, Accounting by Debtors and
Creditors for Troubled Debt Restructurings, as amended
by FASB Statement No. 114, Accounting by Creditors
for Impairment of a Loan. A summary of this amended
accounting standard follows. For further information, see
FASB Statements No. 15 and No. 114.
A troubled debt restructuring is a restructuring in which a
bank holding company, for economic or legal reasons
related to a borrower’s financial difficulties, grants a
concession to the borrower that it would not otherwise
consider. The restructuring may include (1) the transfer
from the borrower to the bank holding company of real
estate, receivables from third parties, other assets, or an
equity interest in the borrower in full or partial satisfaction of the loan or other debt instrument (hereafter
referred to collectively as a ‘‘loan’’), (2) a modification of
the loan terms, or (3) a combination of the above. A loan
extended or renewed at a stated interest rate equal to the
current interest rate for new debt with similar risk is not
to be reported as a restructured loan.
The recorded amount of a loan is the loan balance
adjusted for any unamortized premium or discount and
unamortized loan fees or costs, less any amount previously charged off, plus recorded accrued interest.
In cases where the new terms of the restructured troubled
debt provide for a reduction of either interest or principal
(referred to as a modification of terms), the institution
should measure any loss on the restructuring in accordance with the guidance concerning impaired loans
set forth in the Glossary entry for ‘‘loan impairment,’’
except that a troubled debt restructuring involving a
modification of terms before the effective date of FASB
Statement No. 114 may continue to be accounted for and
disclosed in accordance with FASB Statement No. 15 as
long as the restructured loan is not impaired based on the
terms of the restructuring agreement. See the Glossary
entry for ‘‘nonaccrual of interest’’ for a discussion of the
conditions under which a nonaccrual asset which has
undergone a troubled debt restructuring (including those
GL-72

that involve a multiple note structure) may be returned to
accrual status.
A troubled debt restructuring in which a bank holding
company receives physical possession of the borrower’s
assets, regardless of whether foreclosure or repossession
proceedings take place, should be accounted for in
accordance with paragraph 34 of FASB Statement No. 15,
as amended. Thus, in such situations, the loan should be
treated as if assets have been received in satisfaction of
the loan and reported as described in the Glossary entry
for ‘‘foreclosed assets.’’
Despite the granting of some type of concession by the
bank holding company to a borrower, a troubled debt
restructuring may still result in the recorded amount of
the loan bearing a market yield, i.e., an effective interest
rate that at the time of the restructuring is greater than or
equal to the rate that the bank holding company is willing
to accept for an extension of credit with comparable risk.
This may arise as a result of reductions in the recorded
amount of the loan prior to the restructuring (e.g., by
charge-offs). All loans that have undergone troubled debt
restructurings and that are in compliance with their
modified terms must be reported as restructured assets in
Schedule HC-C, Memorandum item 1. However, a
restructured asset that is in compliance with its modified
terms and yields a market rate need not continue to be
reported as a troubled debt restructuring in the memorandum item in this schedule in calendar years after the year
in which the restructuring took place.
A restructuring may include both a modification of terms
and the acceptance of property in partial satisfaction of
the loan. The accounting for such a restructuring is a two
step process. First, the recorded amount of the loan is
reduced by the fair value less cost to sell of the property
received. Second, the institution should measure any
impairment on the remaining recorded balance of the
restructured loan in accordance with the guidance concerning impaired loans set forth in FASB Statement
No. 114.
A restructuring may involve the substitution or addition
of a new debtor for the original borrower. The treatment
of these situations depends upon their substance.
Restructurings in which the substitute or additional
debtor controls, is controlled by, or is under common
control with the original borrower, or performs the
custodial function of collecting certain of the original
Glossary

FR Y-9C
March 2007

Glossary

borrower’s funds, should be accounted for as modifications of terms. Restructurings in which the substitute or
additional debtor does not have a control or custodial
relationship with the original borrower should be accounted for as a receipt of a ‘‘new’’ loan in full or partial
satisfaction of the original borrower’s loan. The ‘‘new’’
loan should be recorded at its fair value.
A credit analysis should be performed for a restructured
loan in conjunction with its restructuring to determine its
collectibility and estimated credit loss. When available
information confirms that a specific restructured loan,
or a portion thereof, is uncollectible, the uncollectible
amount should be charged off against to the allowance
for loan and lease losses at the time of the restructuring.
As is the case for all loans, the credit quality of restructured loans should be regularly reviewed. The bank
holding company should periodically evaluate the collectibility of the restructured loan so as to determine
whether any additional amounts should be charged to the
allowance for loan and lease losses or, if the restructuring
involved an asset other than a loan, to another appropriate
account.
Trust Preferred Securities as Investments: As bank
holding company investments, trust preferred securities
are hybrid instruments possessing characteristics typically associated with debt obligations. Although each
issue of these securities may involve minor differences in
terms, under the basic structure of trust preferred securities a corporate issuer, such as a bank holding company,
first organizes a business trust or other special purpose
entity. This trust issues two classes of securities: common
securities, all of which are purchased and held by the
corporate issuer, and trust preferred securities, which are
sold to investors. The business trust’s only assets are
deeply subordinated debentures of the corporate issuer,
which the trust purchases with the proceeds from the sale
of its common and preferred securities. The corporate
issuer makes periodic interest payments on the subordinated debentures to the business trust, which uses these
payments to pay periodic dividends on the trust preferred
securities to the investors. The subordinated debentures
have a stated maturity and may also be redeemed under
other circumstances. Most trust preferred securities are
subject to mandatory redemption upon the repayment of
the debentures.
Trust preferred securities meet the definition of a security
in FASB Statement No. 115, ‘‘Accounting for Certain
FR Y-9C
Glossary March 2007

Investments in Debt and Equity Securities.’’ Because of
the mandatory redemption provision in the typical trust
preferred security, investments in trust preferred securities would normally be considered debt securities for
financial accounting purposes. Accordingly, regardless of
the authority under which a bank holding company is
permitted to invest in trust preferred securities, bank
holding companies should report these investments as
debt securities for purposes of these reports. If not held
for trading purposes, trust preferred securities issued by
U.S. business trusts should be reported in Schedule HC-B,
item 6(a), ‘‘Other domestic debt securities.’’
Trust Preferred Securities Issued: Trust preferred securities are marketed under a variety of names including
MIPS (‘‘Monthly Income Preferred Securities’’), QUIPS
(‘‘Quarterly Income Preferred Securities’’) and TOPrS
(‘‘Trust Originated Preferred Securities’’). These securities are generally issued out of special purpose entities
whose voting common stock is wholly owned by the
parent bank holding company. The proceeds from the
issuance of these securities are lent to the bank holding
company in the form of a very long term, deeply
subordinated note. Under GAAP, the special purpose
entity may either be a consolidated subsidiary of the bank
holding company or a deconsolidated entity that qualifies
as an unconsolidated subsidiary of the bank holding
company for regulatory reporting and other regulatory
purposes.
Bank holding companies seeking to issue such securities
should consult with their Federal Reserve Bank. These
transactions will normally be accorded Tier 1 capital
status. Trust preferred securities issued by special purpose entities generally qualify as Tier 1 capital under the
Federal Reserve’s capital adequacy guidelines for bank
holding companies. To be eligible as Tier 1 capital, such
instruments must provide for a minimum five-year consecutive deferral period on distributions to preferred
shareholders. In addition, the intercompany loan must be
subordinated to all subordinated debt and have the longest feasible maturity. The amount of these instruments,
together with other cumulative preferred stock a bank
holding company may include in Tier 1 capital, may
constitute up to 25 percent of the sum of all core capital
elements, including cumulative perpetual preferred stock
and trust preferred stock. For purposes of determining
this limitation, core capital elements include (1) common
stockholders’ equity, (2) qualifying noncumulative perpetual preferred stock, (3) qualifying cumulative perpetual preferred stock and (4) minority interest. See the
GL-73

Glossary

end of the instructions to Schedule HC-R for examples of
determining the limit of trust preferred securities and
other cumulative preferred stock that can be included in
Tier 1 capital. Like other preferred stock includable in
capital, these instruments require Federal Reserve
approval before they may be redeemed.
For purposes of reporting on the FR Y-9C, trust preferred
securities issued by a consolidated subsidiary should be
reported in Schedule HC, item 19(b). In addition, amounts
of trust preferred securities issued by a consolidated
subsidiary that qualify and are included in Tier 1 capital
(are within the limits for cumulative preferred stock as
described in the risk-based capital guidelines) should be
reported separately in Schedule HC-R, item 6(b), ‘‘Qualifying trust preferred securities.’’
For special purpose entities that issue trust preferred
securities and the entity is not consolidated, report the
amount of subordinated notes payable by the bank holding company to the unconsolidated special purpose entity
in Schedule HC, item 19(b). The amount of such notes,
net of the bank holding company’s investment in the
special purpose entity, that qualify and are included in
Tier 1 capital (are within the limits for cumulative
preferred stock as described in the risk-based capital
guidelines) should be reported separately in Schedule
HC-R, item 6(b).
Report the amounts of trust preferred securities issued by
consolidated special purpose entities (or notes payable to
unconsolidated special purpose entities that issue trust
preferred securities, net of the bank holding company’s
investment in the entity) that are in excess of the limits
for cumulative preferred stock eligible for inclusion in
Tier 1 capital, in Schedule HC-R, item 16, ‘‘Other Tier 2
capital components,’’ subject to the overall limits of Tier
2 capital.
U.S. Banks: See ‘‘Banks, U.S. and foreign.’’
U.S. Territories and Possessions: United States territories and possessions include American Samoa, Guam,
the Northern Mariana Islands, the U.S. Virgin Islands,
and U.S. trust territories.
Valuation Allowance: A valuation allowance is an
account established against a specific asset category, or to
recognize a specific liability, with the intent of absorbing
some element of estimated loss. Such allowances are
created by charges to expense in the Report of Income for
Bank Holding Companies and are netted from the asset
GL-74

accounts to which they relate for presentation in the
Consolidated Balance Sheet in the FR Y-9C. Provisions
establishing or augmenting such allowances are to be
reported as ‘‘Other noninterest expense’’ except for the
provision for loan and lease losses and the provision for
allocated transfer risk for which separate, specifically
designated income statement items have been established
on Schedule HI.
When-Issued Securities Transactions: Transactions
involving securities described as ‘‘when-issued’’ or
‘‘when-as-and-if-issued’’ are, by their nature, conditional, i.e., their completion is contingent upon the
issuance of the securities. The accounting for contracts
for the purchase or sale of when-issued securities or other
securities that do not yet exist is addressed in FASB
Statement No. 133, ‘‘Accounting for Derivative Instruments and Hedging Activities,’’ as amended by FASB
Statement No. 149. Such contracts are excluded from the
requirements of Statement No. 133, as amended, as a
regular-way security trade only if:
(1) There is no other way to purchase or sell that
security;
(2) Delivery of that security and settlement will occur
within the shortest period possible for that type of
security; and
(3) It is probable at inception and throughout the term of
the individual contract that the contract will not settle
net and will result in physical delivery of a security
when it is issued.
A contract for the purchase or sale of when-issued
securities may qualify for the regular-way security trade
exclusion even though the contract permits net settlement
or a market mechanism to facilitate net settlement of the
contract exists (as described in Statement No. 133). A
bank holding company should document the basis for
concluding that it is probable that the contract will not
settle net and will result in physical delivery.
If a when-issued securities contract does not meet the
three criteria above, it should be accounted for as a
derivative at fair value on the balance sheet (Schedule
HC) and reported as a forward contract in Schedule
HC-L, item 11(b). Such contracts should be reported on a
gross basis on the balance sheet unless the criteria for
netting in FASB Interpretation No. 39 are met. (See the
Glossary entry for ‘‘offsetting’’ for further information.)
Glossary

FR Y-9C
March 2007

Glossary

If a when-issued securities contract qualifies for the
regular-way security trade exclusion, it is not accounted
for as a derivative. If the bank holding company accounts
for these contracts on a trade-date basis, it should recognize the acquisition or disposition of the when-issued
securities on its balance sheet (Schedule HC) at the
inception of the contract. If the bank holding company
accounts for these contracts on a settlement-date basis,
contracts for the purchase and sale of when-issued securities should be reported as ‘‘Other off-balance sheet
items’’ in Schedule HC-L, item 9, subject to the existing
reporting thresholds for this item.
Trading in when-issued securities normally begins when
the U.S. Treasury or some other issuer of securities
announces a forthcoming issue. (In some cases, trading
may begin in anticipation of such an announcement and

FR Y-9C
Glossary March 2007

should also be reported as described herein.) Since the
exact price and terms of the security are unknown before
the auction date, trading prior to that date is on a ‘‘yield’’
basis. On the auction date the exact terms and price of the
security become known and when-issued trading continues until settlement date, when the securities are delivered and the issuer is paid. If physical delivery is taken on
settlement date and settlement date accounting is used,
the securities purchased by the bank holding company
shall be reported on the balance sheet as held-to-maturity
securities in Schedule HC, item 2(a), available-for-sale
securities in Schedule HC, item 2(b), or trading assets in
Schedule HC, item 5, as appropriate.
Yield Maintenance Dollar Repurchase Agreement:
See ‘‘Repurchase/resale agreements.’’

GL-75

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
1050
Validity
HI-1h

Sub
Series
BHCK
4107

HI

Sum of HI-1a1 through HI-1g must equal HI-1h.

1070

Validity

HI-2f

BHCK

4073

HI

Sum of HI-2a1a through HI-2e must equal HI-2f.

1090
1110

Validity
Validity

HI-3
HI-5m

BHCK
BHCK

4074
4079

HI
HI

HI-1h minus HI-2f must equal HI-3.
Sum of HI-5a through HI-5l must equal HI-5m.

1130

Validity

HI-7e

BHCK

4093

HI

1150

Validity

HI-8

BHCK

4301

HI

1170
1190
1240
1250
1274

Validity
Validity
Validity
Validity
Validity

HI-11
HI-13
HI-Mem3
HI-Mem4
HI-Mem9e

BHCK
BHCK
BHCK
BHCK
BHCK

4300
4340
4313
4507
F186

HI
HI
HI
HI
HI

1276

Validity

HI-Mem9e

BHCK

F186

HI

1277

Validity

HI-Mem9e

BHCK

F186

HI

MARCH 2007

Alg Edit Test
(bhck4010 + bhck4059 + bhck4065 + bhck4115 + bhckb488
+ bhckb489 + bhck4060 + bhck4069 + bhck4020 +
bhck4518) eq bhck4107
(bhcka517 + bhcka518 + bhck6761 + bhck4172 + bhck4180
+ bhck4185 + bhck4397 + bhck4398) eq bhck4073

(bhck4107 - bhck4073) eq bhck4074
(bhck4070 + bhck4483 + bhcka220 + bhckc886 + bhckc888
+ bhckc887 + bhckc386 + bhckc387 + bhckb491 + bhckb492
+ bhckb493 + bhck8560 + bhck8561 + bhckb496 +
bhckb497) eq bhck4079
Sum of HI-7a through HI-7d must equal HI-7e.
(bhck4135 + bhck4217 + bhckc216 + bhckc232 + bhck4092)
eq bhck4093
Sum of HI-3, HI-5m through HI-6b minus the sum of HI-4 and (bhck4074 + bhck4079 + bhck3521 + bhck3196) - (bhck4230
HI-7e must equal HI-8.
+ bhck4093) eq bhck4301
HI-8 minus the sum of HI-9 and HI-10 must equal HI-11.
bhck4301 - (bhck4302 + bhck4484) eq bhck4300
Sum of HI-11 and HI-12 must equal HI-13.
(bhck4300 + bhck4320) eq bhck4340
bhck4313 le (bhck4010 + bhck4065)
HI-Mem4 must be less than or equal to HI-1d3.
bhck4507 le bhck4060
For March, if HC-K4a is greater than or equal to $2 million for if (mm-q1 eq 03) and (bhck3401-q2 ge 2000 or bhck3401-q3
any quarter of the preceding calendar year, then sum of HI- ge 2000 or bhck3401-q4 ge 2000 or bhck3401-q5 ge 2000)
Mem9a through HI-Mem9e must equal HI-5c.
and ((bhck8757 + bhck8758 + bhck8759 + bhck8760) ne 0)
then ((bhck8757 + bhck8758 + bhck8759 + bhck8760 +
bhckf186) eq bhcka220
For June, if HC-K4a is greater than or equal to $2 million for if (mm-q1 eq 06) and (bhck3401-q3 ge 2000 or bhck3401-q4
any quarter of the preceding calendar year, then sum of HI- ge 2000 or bhck3401-q5 ge 2000 or bhck3401-q6 ge 2000)
Mem9a through HI-Mem9e must equal HI-5c.
and ((bhck8757 + bhck8758 + bhck8759 + bhck8760) ne 0)
then ((bhck8757 + bhck8758 + bhck8759 + bhck8760 +
bhckf186) eq bhcka220
For September, if HC-K4a is greater than or equal to $2
if (mm-q1 eq 09) and (bhck3401-q4 ge 2000 or bhck3401-q5
million for any quarter of the preceding calendar year, then ge 2000 or bhck3401-q6 ge 2000 or bhck3401-q7 ge 2000)
sum of HI-Mem9a through HI-Mem9e must equal HI-5c.
and ((bhck8757 + bhck8758 + bhck8759 + bhck8760) ne 0)
then ((bhck8757 + bhck8758 + bhck8759 + bhck8760 +
bhckf186) eq bhcka220
FR Y-9C: CHK-1 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
1278
Validity
HI-Mem9e

Sub
Series
BHCK
F186

HI

1295
1300
1400
1430
1500

Validity
Validity
Validity
Validity
Validity

HI-Mem13
HI-Mem16
HI-A3
HI-13
HI-A14

BHCK
BHCK
BHCK
BHCK
BHCK

A530
F228
B508
4340
3581

HI
HI
HI-A
HI-A
HI-A

1550

Validity

HI-B(I)1aA

BHCK

3582

HI-B

1555

Validity

HI-B(I)1aB

BHCK

3583

HI-B

1560

Validity

HI-B(I)1eA

BHCK

3590

HI-B

1565

Validity

HI-B(I)1eB

BHCK

3591

HI-B

1600

Validity

HI-B(I)9A

BHCK

4635

HI-B

1620

Validity

HI-B(I)9B

BHCK

4605

HI-B

1640

Validity

HI-B(I)Mem1A

BHCK

5409

HI-B

MARCH 2007

Alg Edit Test

For December, if HC-K4a is greater than or equal to $2
million for any quarter of the preceding calendar year, then
sum of HI-Mem9a through HI-Mem9e must equal HI-5c.

if (mm-q1 eq 12) and (bhck3401-q5 ge 2000 or bhck3401-q6
ge 2000 or bhck3401-q7 ge 2000 or bhck3401-q8 ge 2000)
and ((bhck8757 + bhck8758 + bhck8759 + bhck8760) ne 0)
then ((bhck8757 + bhck8758 + bhck8759 + bhck8760 +
bhckf186) eq bhcka220
HI-Mem13 must equal 1 (yes) or 0 (no).
bhcka530 eq 1 or bhcka530 eq 0
HI-Mem16 must be less than or equal to HI-1a1.
bhckf228 le bhck4010
Sum of HI-A1 and HI-A2 must equal HI-A3.
(bhck3217 + bhckb507) eq bhckb508
HI-A4 must equal HI-13.
bhct4340 eq bhck4340
Sum of HI-A3 through HI-A7, HI-A9, and HI-A12 through HI- (bhckb508 + bhct4340 + bhck3577 + bhck3578 + bhck3579
A14 minus the sum of HI-A8, HI-A10, and HI-A11 must equal + bhck3580 + bhck4782 + bhck4356 + bhckb511 + bhck4591
HI-A15.
+ bhck3581) - (bhck4783 + bhck4598 + bhck4460) eq
bhct3210
Sum of HI-B(I)Mem4aA and HI-B(I)Mem4bA must equal HI- (bhckc891 + bhckc893) eq bhck3582
B(I)1aA.
Sum of HI-B(I)Mem4aB and HI-B(I)Mem4bB must equal HI- (bhckc892 + bhckc894) eq bhck3583
B(I)1aB.
Sum of HI-B(I)Mem5aA and HI-B(I)Mem5bA must equal HI- (bhckc895 + bhckc897) eq bhck3590
B(I)1eA.
Sum of HI-B(I)Mem5aB and HI-B(I)Mem5bB must equal HI- (bhckc896 + bhckc898) eq bhck3591
B(I)1eB.
Sum of HI-B(I)1aA through HI-B(I)8bA must equal HI-B(I)9A. (bhck3582 + bhck3584 + bhck5411 + bhckc234 + bhckc235
+ bhck3588 + bhck3590 + bhckb512 + bhck4653 + bhck4654
+ bhck4655 + bhck4645 + bhck4646 + bhckb514 + bhckb516
+ bhck4643 + bhck4644 + bhckf185 + bhckc880) eq
bhck4635
Sum of HI-B(I)1aB through HI-B(I)8bB must equal HI-B(I)9B. (bhck3583 + bhck3585 + bhck5412 + bhckc217 + bhckc218
+ bhck3589 + bhck3591 + bhckb513 + bhck4663 + bhck4664
+ bhck4665 + bhck4617 + bhck4618 + bhckb515 + bhckb517
+ bhck4627 + bhck4628 + bhckf187 + bhckf188) eq
bhck4605
HI-B(I)Mem1A must be less than or equal to the sum of HI- bhck5409 le (bhck4645 + bhck4646 + bhck4644)
B(I)4aA, HI-B(I)4bA, and HI-B(I)7A.

FR Y-9C: CHK-2 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
1660
Validity
HI-B(I)Mem1B

Sub
Series
BHCK
5410

HI-B

1680

Validity

HI-B(I)Mem2A

BHCK

4652

HI-B

1700

Validity

HI-B(I)Mem2B

BHCK

4662

1730
1750
1770
1790

Validity
Validity
Validity
Validity

HI-B(I)9B
HI-B(II)4
HI-4
HI-B(II)6

BHCK
BHCK
BHCK
BHCK

2025
2050
2070

Validity
Validity
Validity

HC-4c
HC-4d
HC-12

2080
2110

Validity
Validity

2125
2127
2135
2145
2150

Alg Edit Test

HI-B(I)Mem1B must be less than or equal to the sum of HIB(I)4aB, HI-B(I)4bB, and HI-B(I)7B.
HI-B(I)Mem2A must be less than or equal to the sum of HIB(I)1aA through HI-B(I)1fA.

bhck4652 le (bhck3582 + bhck3584 + bhck5411 + bhckc234
+ bhckc235 + bhck3588 + bhck3590 + bhckb512)

HI-B

HI-B(I)Mem2B must be less than or equal to the sum of HIB(I)1aB through HI-B(I)1fB.

bhck4662 le (bhck3583 + bhck3585 + bhck5412 + bhckc217
+ bhckc218 + bhck3589 + bhck3591 + bhckb513)

4605
5523
4230
C233

HI-B
HI-B
HI-B
HI-B

HI-B(II)2 must equal HI-B(I)9B.
HI-B(II)3 must equal HI-B(I)9A minus HI-B(II)4.
HI-B(II)5 must equal HI-4.
The sum of HI-B(II)1, HI-B(II)2, HI-B(II)5, and HI-B(II)6 minus
the sum of HI-B(II)3 and HI-B(II)4 must equal HI-B(II)7.

bhct4605 eq bhck4605
bhckc079 eq (bhck4635 - bhck5523)
bhct4230 eq bhck4230
(bhckb522 + bhct4605 + bhct4230 + bhckc233) - (bhckc079
+ bhck5523) eq bhct3123

BHCK
BHCK
BHCK

3123
B529
2170

HC
HC
HC

HI-B(II)7 must equal HC-4c.
HC-4b minus HC-4c must equal HC-4d.
Sum of HC-1a through HC-4a and HC-4d through HC-11
must equal HC-12.

bhct3123 eq bhck3123
(bhckb528 - bhck3123) eq bhckb529
(bhck0081 + bhck0395 + bhck0397 + bhck1754 + bhck1773
+ bhdmb987 + bhckb989 + bhck5369 + bhckb529 +
bhck3545 + bhck2145 + bhck2150 + bhck2130 + bhck3163 +
bhck0426 + bhck2160) eq bhck2170

HC-12
HC-21

BHCK
BHCK

2170
2948

HC
HC

HC-12 must be greater than zero.
Sum of HC-13a1 through HC-20 must equal HC-21.

Validity

HC-28

BHCK

3210

HC

Sum of HC-23 through HC-27 must equal HC-28.

Validity
Validity
Validity
Validity

HC-28
HC-29
HC-29
HC-Mem1

BHCK
BHCK
BHCK
BHCK

3210
3300
3300
C884

HC
HC
HC
HC

HI-A15 must equal HC-28.
Sum of HC-21, HC-22, and HC-28 must equal HC-29.
HC-29 must equal HC-12.
For December, HC-Mem1 must equal "1" (yes) or "0" (no).

bhck2170 gt 0
(bhdm6631 + bhdm6636 + bhfn6631 + bhfn6636 +
bhdmb993 + bhckb995 + bhck3548 + bhck3190 + bhck4062
+ bhckc699 + bhck2750) eq bhck2948
(bhck3283 + bhck3230 + bhck3240 + bhck3247 + bhckb530
+ bhcka130) eq bhck3210
bhct3210 eq bhck3210
(bhck2948 + bhck3000 + bhck3210) eq bhck3300
bhck3300 eq bhck2170
if (mm-q1 eq 12) then (bhckc884 eq 1 or bhckc884 eq 0)

MARCH 2007

bhck5410 le (bhck4617 + bhck4618 + bhck4628)

FR Y-9C: CHK-3 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
2155
Validity
HC-Mem1

Sub
Series
BHCK
C884

HC

If HC-Mem1 is equal "1" (yes), then HC-Mem2a(1) through
HC-Mem2b(2) must not equal null.

2175

Validity

HC-B6bA

BHCK

1742

HC-B

Sum of HC-B1A through HC-B6bA must equal HC-B8A.

2185

Validity

HC-B7D

BHCK

A511

HC-B

Sum of HC-B1D through HC-B7D must equal HC-B8D.

2200
2215

Validity
Validity

HC-2a
HC-B8B

BHCK
BHCK

1754
1771

HC-B
HC-B

HC-B8A must equal HC-2a.
Sum of HC-B1B through HC-B6bB must equal HC-B8B.

2225

Validity

HC-B8C

BHCK

1772

HC-B

Sum of HC-B1C through HC-B7C must equal HC-B8C.

2235
2240

Validity
Validity

HC-2b
HC-BM1

BHCK
BHCK

1773
0416

HC-B
HC-B

2250

Validity

HC-BM2c

BHCK

0387

HC-B

MARCH 2007

Alg Edit Test
if (bhckc884 eq 1) then (textc703 ne null and textc708 ne null
and textc714 ne null and textc715 ne null and textc704 ne
null and textc705 ne null)
(bhck0211 + bhck1289 + bhck1294 + bhck8496 + bhck1698
+ bhck1703 + bhck1709 + bhck1714 + bhck1718 + bhck1733
+ bhckc026 + bhck1737 + bhck1742) eq bhct1754
(bhck1287 + bhck1293 + bhck1298 + bhck8499 + bhck1702
+ bhck1707 + bhck1713 + bhck1717 + bhck1732 + bhck1736
+ bhckc027 + bhck1741 + bhck1746 + bhcka511) eq
bhct1773
bhct1754 eq bhck1754
(bhck0213 + bhck1290 + bhck1295 + bhck8497 + bhck1699
+ bhck1705 + bhck1710 + bhck1715 + bhck1719 + bhck1734
+ bhckc988 + bhck1738 + bhck1743) eq bhck1771

(bhck1286 + bhck1291 + bhck1297 + bhck8498 + bhck1701
+ bhck1706 + bhck1711 + bhck1716 + bhck1731 + bhck1735
+ bhckc989 + bhck1739 + bhck1744 + bhcka510) eq
bhck1772
HC-B8D must equal HC-2b.
bhct1773 eq bhck1773
HC-BM1 must be less than or equal to the sum of HC-2a and bhck0416 le (bhck1754 + bhck1773)
HC-2b.
Sum of HC-BM2a through HC-BM2c must be equal to the
(bhck0383 + bhck0384 + bhck0387) eq ((bhck0211 +
sum of HC-B1A through HC-B6bA and HC-B1D through HC- bhck1289 + bhck1294 + bhck8496 + bhck1698 + bhck1703 +
B6bD.
bhck1709 + bhck1714 + bhck1718 + bhck1733 + bhckc026 +
bhck1737 + bhck1742) + (bhck1287 + bhck1293 + bhck1298
+ bhck8499 + bhck1702 + bhck1707 + bhck1713 + bhck1717
+ bhck1732 + bhck1736 + bhckc027 + bhck1741 +
bhck1746)

FR Y-9C: CHK-4 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
2260
Validity
HC-BM4a

Sub
Series
BHCK
8782

HC-B

HC-BM4a must be less than or equal to the sum of HC-B2aA bhck8782 le (bhck1289 + bhck1294 + bhck8496 + bhckc026
through HC-B3A, HC-B5A through HC-B6bA, HC-B2aC
+ bhck1737 + bhck1742 + bhck1291 + bhck1297 + bhck8498
through HC-B3C, and HC-B5C through HC-B6bC.
+ bhckc989 + bhck1739 + bhck1744)

2270

Validity

HC-BM4b

BHCK

8783

HC-B

HC-BM4b must be less than or equal to the sum of HC-B2aB bhck8783 le (bhck1290 + bhck1295 + bhck8497 + bhckc988
through HC-B3B, HC-B5B through HC-B6bB, HC-B2aD
+ bhck1738 + bhck1743 + bhck1293 + bhck1298 + bhck8499
through HC-B3D, and HC-B5D through HC-B6bD.
+ bhckc027 + bhck1741 + bhck1746)

2275

Validity

HC-C1eB

BHDM

1480

HC-C

2285

Validity

HC-C2bA

BHCK

1296

HC-C

2300
2315

Validity
Validity

HC-C3B
HC-C4bA

BHDM
BHCK

1590
1764

HC-C
HC-C

2325

Validity

HC-C6cA

BHCK

2011

HC-C

2333
2337
2340
2360

Validity
Validity
Validity
Validity

HC-C7B
HC-C9aB
HC-C9bB
HC-C10bA

BHDM
BHDM
BHDM
BHCK

2081
1545
1564
F163

HC-C
HC-C
HC-C
HC-C

2370

Validity

HC-C11A

BHCK

2123

HC-C

Sum of HC-C1aB through HC-C1eB must be less than or
equal to HC-C1A.
HC-C2B must be less than or equal to the sum of HC-C2aA
and HC-C2bA.
HC-C3B must be less than or equal to HC-C3A.
HC-C4B must be less than or equal to the sum of HC-C4aA
and HC-C4bA.
HC-C6B must be less than or equal to the sum of HC-C6aA,
HC-C6bA, and HC-C6cA.
HC-C7B must be less than or equal to HC-C7A.
HC-C9aB must be less than or equal to HC-C9aA.
HC-C9bB must be less than or equal to HC-C9bA.
HC-C10B must be less than or equal to the sum of HCC10aA and HC-C10bA.
Sum of HC-C1A through HC-C10bA minus HC-C11A must
equal HC-C12A.

2380
2395
2410

Validity
Validity
Validity

HC-C11B
HC-C12A
HC-C12B

BHDM
BHCK
BHDM

2123
2122
2122

HC-C
HC-C
HC-C

MARCH 2007

HC-C11B must be less than or equal to HC-C11A.
HC-C12A must equal the sum of HC-4a and HC-4b.
Sum of HC-C1aB through HC-C10B minus HC-C11B must
equal HC-C12B.

Alg Edit Test

(bhdm1415 + bhdm1420 + bhdm1797 + bhdm5367 +
bhdm5368 + bhdm1460 + bhdm1480) le bhck1410
bhdm1288 le (bhck1292 + bhck1296)
bhdm1590 le bhck1590
bhdm1766 le (bhck1763 + bhck1764)
bhdm1975 le (bhckb538 + bhckb539 + bhck2011)
bhdm2081 le bhck2081
bhdm1545 le bhck1545
bhdm1564 le bhck1564
bhdm2165 le (bhckf162 + bhckf163)
(bhck1410 + bhck1292 + bhck1296 + bhck1590 + bhck1763
+ bhck1764 + bhckb538 + bhckb539 + bhck2011 + bhck2081
+ bhck1545 + bhck1564 + bhckf162 + bhckf163) - bhck2123
eq bhck2122
bhdm2123 le bhck2123
bhck2122 eq (bhck5369 + bhckb528)
(bhdm1415 + bhdm1420 + bhdm1797 + bhdm5367 +
bhdm5368 + bhdm1460 + bhdm1480 + bhdm1288 +
bhdm1590 + bhdm1766 + bhdm1975 + bhdm2081 +
bhdm1545 + bhdm1564 + bhdm2165) - bhdm2123 eq
bhdm2122

FR Y-9C: CHK-5 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
2420
Validity
HC-C12B
2430
Validity
HC-CM1

Sub
Series
BHDM
2122
BHCK
1616

HC-C
HC-C

2440

Validity

HC-CM2

BHCK

2746

HC-C

2455
2460
2465

Validity
Validity
Validity

HC-CM3
HC-CM4
HC-CM6a

BHCK
BHCK
BHCK

B837
C391
F230

HC-C
HC-C
HC-C

2470
2472
2479

Validity
Validity
Validity

HC-CM7b
HC-CM8b
HC-D11b

BHCK
BHCK
BHFN

F159
F161
3543

HC-C
HC-C
HC-D

2481

Validity

HC-D11b

BHFN

3543

HC-D

For June, if HC-K4a is greater than or equal to $2 million for if (mm-q1 eq 06) and (bhck3401-q3 ge 2000 or bhck3401-q4
any quarter of the preceding calendar year, then sum of HC- ge 2000 or bhck3401-q5 ge 2000 or bhck3401-q6 ge 2000)
D1 through HC-D11b must equal HC-D12.
then (bhck3531 + bhck3532 + bhck3533 + bhck3534 +
bhck3535 + bhck3536 + bhck3537 + bhck3541 + bhck3542 +
bhck3543 + bhfn3543) eq bhct3545

2482

Validity

HC-D11b

BHFN

3543

HC-D

For September, if HC-K4a is greater than or equal to $2
million for any quarter of the preceding calendar year, then
sum of HC-D1 through HC-D11b must equal HC-D12.

MARCH 2007

HC-C12B must be less than or equal to HC-C12A.
HC-CM1 must be less than or equal to the sum of HC-C11A
and HC-C12A minus the sum of HC-C1c1B through HCC1c2bB, and HC-C6aA through HC-C6cA.
HC-CM2 must be less than or equal to the sum of HC-C4aA,
HC-C4bA, HC-C9aA, and HC-C9bA.
HC-CM3 must be less than or equal to HC-C1A.
HC-CM4 must be less than or equal to HC-C6aA.
HC-CM6a must be less than or equal to the sum of HCC1c2aB and HC-C1c2bB.
Sum of HC-CM7a and HC-CM7b must equal HC-C1aB.
Sum of HC-CM8a and HC-CM8b must equal HC-C1eB.
For March, if HC-K4a is greater than or equal to $2 million for
any quarter of the preceding calendar year, then sum of HCD1 through HC-D11b must equal HC-D12.

Alg Edit Test
bhdm2122 le bhck2122
bhck1616 le (bhck2123 + bhck2122) - (bhdm1797 +
bhdm5367 + bhdm5368 + bhckb538 + bhckb539 +
bhck2011)
bhck2746 le (bhck1763 + bhck1764 + bhck1545 + bhck1564)
bhckb837 le bhck1410
bhckc391 le bhckb538
bhckf230 le (bhdm5367 + bhdm5368)
(bhckf158 + bhckf159) eq bhdm1415
(bhckf160 + bhckf161) eq bhdm1480
if (mm-q1 eq 03) and (bhck3401-q2 ge 2000 or bhck3401-q3
ge 2000 or bhck3401-q4 ge 2000 or bhck3401-q5 ge 2000)
then (bhck3531 + bhck3532 + bhck3533 + bhck3534 +
bhck3535 + bhck3536 + bhck3537 + bhck3541 + bhck3542 +
bhck3543 + bhfn3543) eq bhct3545

if (mm-q1 eq 09) and (bhck3401-q4 ge 2000 or bhck3401-q5
ge 2000 or bhck3401-q6 ge 2000 or bhck3401-q7 ge 2000)
then (bhck3531 + bhck3532 + bhck3533 + bhck3534 +
bhck3535 + bhck3536 + bhck3537 + bhck3541 + bhck3542 +
bhck3543 + bhfn3543) eq bhct3545

FR Y-9C: CHK-6 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
2483
Validity
HC-D11b

Sub
Series
BHFN
3543

HC-D

For December, if HC-K4a is greater than or equal to $2
million for any quarter of the preceding calendar year, then
sum of HC-D1 through HC-D11b must equal HC-D12.

if (mm-q1 eq 12) and (bhck3401-q5 ge 2000 or bhck3401-q6
ge 2000 or bhck3401-q7 ge 2000 or bhck3401-q8 ge 2000)
then (bhck3531 + bhck3532 + bhck3533 + bhck3534 +
bhck3535 + bhck3536 + bhck3537 + bhck3541 + bhck3542 +
bhck3543 + bhfn3543) eq bhct3545

2489

Validity

HC-5

BHCK

3545

HC-D

2491

Validity

HC-5

BHCK

3545

HC-D

2492

Validity

HC-5

BHCK

3545

HC-D

2493

Validity

HC-5

BHCK

3545

HC-D

2509

Validity

HC-D14

BHCK

3547

HC-D

2511

Validity

HC-D14

BHCK

3547

HC-D

2512

Validity

HC-D14

BHCK

3547

HC-D

2513

Validity

HC-D14

BHCK

3547

HC-D

2524

Validity

HC-15

BHCK

3548

HC-D

For March, if HC-K4a is greater than or equal to $2 million for
any quarter of the preceding calendar year, then HC-D12
must equal HC-5.
For June, if HC-K4a is greater than or equal to $2 million for
any quarter of the preceding calendar year, then HC-D12
must equal HC-5.
For September, if HC-K4a is greater than or equal to $2
million for any quarter of the preceding calendar year, then
HC-D12 must equal HC-5.
For December, if HC-K4a is greater than or equal to $2
million for any quarter of the preceding calendar year, then
HC-D12 must equal HC-5.
For March, if HC-K4a is greater than or equal to $2 million for
any quarter of the preceding calendar year, then sum of HCD13 and HC-D14 must equal HC-D15.
For June, if HC-K4a is greater than or equal to $2 million for
any quarter of the preceding calendar year, then sum of HCD13 and HC-D14 must equal HC-D15.
For September, if HC-K4a is greater than or equal to $2
million for any quarter of the preceding calendar year, then
sum of HC-D13 and HC-D14 must equal HC-D15.
For December, if HC-K4a is greater than or equal to $2
million for any quarter of the preceding calendar year, then
sum of HC-D13 and HC-D14 must equal HC-D15.
For March, if HC-K4a is greater than or equal to $2 million for
any quarter of the preceding calendar year, then HC-D15
must equal HC-15.

if (mm-q1 eq 03) and (bhck3401-q2 ge 2000 or bhck3401-q3
ge 2000 or bhck3401-q4 ge 2000 or bhck3401-q5 ge 2000)
then bhct3545 eq bhck3545
if (mm-q1 eq 06) and (bhck3401-q3 ge 2000 or bhck3401-q4
ge 2000 or bhck3401-q5 ge 2000 or bhck3401-q6 ge 2000)
then bhct3545 eq bhck3545
if (mm-q1 eq 09) and (bhck3401-q4 ge 2000 or bhck3401-q5
ge 2000 or bhck3401-q6 ge 2000 or bhck3401-q7 ge 2000)
then bhct3545 eq bhck3545
if (mm-q1 eq 12) and (bhck3401-q5 ge 2000 or bhck3401-q6
ge 2000 or bhck3401-q7 ge 2000 or bhck3401-q8 ge 2000)
then bhct3545 eq bhck3545
if (mm-q1 eq 03) and (bhck3401-q2 ge 2000 or bhck3401-q3
ge 2000 or bhck3401-q4 ge 2000 or bhck3401-q5 ge 2000)
then (bhck3546 + bhck3547) eq bhct3548
if (mm-q1 eq 06) and (bhck3401-q3 ge 2000 or bhck3401-q4
ge 2000 or bhck3401-q5 ge 2000 or bhck3401-q6 ge 2000)
then (bhck3546 + bhck3547) eq bhct3548
if (mm-q1 eq 09) and (bhck3401-q4 ge 2000 or bhck3401-q5
ge 2000 or bhck3401-q6 ge 2000 or bhck3401-q7 ge 2000)
then (bhck3546 + bhck3547) eq bhct3548
if (mm-q1 eq 12) and (bhck3401-q5 ge 2000 or bhck3401-q6
ge 2000 or bhck3401-q7 ge 2000 or bhck3401-q8 ge 2000)
then (bhck3546 + bhck3547) eq bhct3548
if (mm-q1 eq 03) and (bhck3401-q2 ge 2000 or bhck3401-q3
ge 2000 or bhck3401-q4 ge 2000 or bhck3401-q5 ge 2000)
then bhct3548 eq bhck3548

MARCH 2007

Alg Edit Test

FR Y-9C: CHK-7 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
2526
Validity
HC-15

Sub
Series
BHCK
3548

HC-D

2527

Validity

HC-15

BHCK

3548

HC-D

2528

Validity

HC-15

BHCK

3548

HC-D

2550

Validity

HC-E1e

BHCB

2604

HC-E

2580

Validity

HC-E2e

BHOD

2604

HC-E

2595

Validity

HC-E2e

BHOD

2604

HC-E

2615

Validity

HC-EM3

BHDM

A242

HC-E

2625

Validity

HC-EM4

BHFN

A245

HC-E

2640

Validity

HC-F6

BHCK

2168

HC-F

2655
2680
2695
2710

Validity
Validity
Validity
Validity

HC-11
HC-G4
HC-20
HC-H1

BHCK
BHCK
BHCK
BHCK

2160
B984
2750
3197

HC-F
HC-G
HC-G
HC-H

2725

Validity

HC-H3

BHCK

3298

HC-H

2740
2770

Validity
Validity

HC-H5
HC-K5

BHCK
BHCK

3409
3368

HC-H
HC-K

MARCH 2007

Alg Edit Test

For June, if HC-K4a is greater than or equal to $2 million for
any quarter of the preceding calendar year, then HC-D15
must equal HC-15.
For Septmeber, if HC-K4a is greater than or equal to $2
million for any quarter of the preceding calendar year, then
HC-D15 must equal HC-15.
For December, if HC-K4a is greater than or equal to $2
million for any quarter of the preceding calendar year, then
HC-D15 must equal HC-15.
If HC-E1e is greater than zero, then HC-E1e must be greater
than or equal to $100k.
Sum of HC-E1a through HC-E2e must equal the sum of HC13a1 and HC-13a2.

if (mm-q1 eq 06) and (bhck3401-q3 ge 2000 or bhck3401-q4
ge 2000 or bhck3401-q5 ge 2000 or bhck3401-q6 ge 2000)
then bhct3548 eq bhck3548
if (mm-q1 eq 09) and (bhck3401-q4 ge 2000 or bhck3401-q5
ge 2000 or bhck3401-q6 ge 2000 or bhck3401-q7 ge 2000)
then bhct3548 eq bhck3548
if (mm-q1 eq 12) and (bhck3401-q5 ge 2000 or bhck3401-q6
ge 2000 or bhck3401-q7 ge 2000 or bhck3401-q8 ge 2000)
then bhct3548 eq bhck3548
if bhcb2604 gt 0 then bhcb2604 ge 100

HC-H3 must be less than or equal to the sum of HC-16 and
HC-19a.
HC-H5 must be less than or equal to HC-19a.
HC-K5 must be greater than zero.

bhck3298 le (bhck3190 + bhck4062)

(bhcb2210 + bhcb3187 + bhcb2389 + bhcb6648 + bhcb2604
+ bhod3189 + bhod3187 + bhod2389 + bhod6648 +
bhod2604) eq (bhdm6631 + bhdm6636)
If HC-E2e is greater than zero, then HC-E2e must be greater if bhod2604 gt 0 then bhod2604 ge 100
than or equal to $100k.
HC-EM3 must be less than or equal to the sum of HC-E1e bhdma242 le (bhcb2604 + bhod2604)
and HC-E2e.
HC-EM4 must be less than or equal to the sum of HC-13b1 bhfna245 le (bhfn6631 + bhfn6636)
and HC-13b2.
Sum of HC-F1 through HC-F6 must equal HC-F7.
(bhckb556 + bhck2148 + bhcka519 + bhcka520 + bhck1752
+ bhckc009 + bhck2168) eq bhct2160
HC-F7 must equal HC-11.
bhct2160 eq bhck2160
Sum of HC-G2 through HC-G4 must equal HC-G5.
(bhck3049 + bhckb557 + bhckb984) eq bhct2750
HC-G5 must equal HC-20.
bhct2750 eq bhck2750
HC-H1 must be less than or equal to the sum of HC-1b1
bhck3197 le ((bhck0395 + bhck0397 + bhck1754 + bhck1773
through HC-4b, HC-7, HC-8, and HC-11 minus HC-N10C.
+ bhdmb987 + bhckb989 + bhck5369 + bhckb528 +
bhck2150 + bhck2130 + bhck2160) - bhck5526)

bhck3409 le bhck4062
bhck3368 gt 0

FR Y-9C: CHK-8 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
2775
2800
2805
2815

Edit Type
Validity
Validity
Validity
Validity

2830

Target Item

Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

HC-L1c1
HC-L2a
HC-L3a
HC-L9g

Sub
Series
BHCK
BHCK
BHCK
BHCK

3816
3820
3822
6586

HC-L
HC-L
HC-L
HC-L

Validity

HC-L13A

BHCK

8725

HC-L

2855

Validity

HC-L13B

BHCK

8726

HC-L

Sum of HC-L11aB through HC-L11eB must equal the sum of (bhck8694 + bhck8698 + bhck8702 + bhck8706 + bhck8710
HC-L12B and HC-L13B.
+ bhck8714 + bhck3826) eq (bhcka127 + bhck8726)

2880

Validity

HC-L13C

BHCK

8727

HC-L

Sum of HC-L11aC through HC-L11eC must equal the sum of (bhck8695 + bhck8699 + bhck8703 + bhck8707 + bhck8711
HC-L12C and HC-L13C.
+ bhck8715 + bhck8719) eq (bhck8723 + bhck8727)

2895

Validity

HC-L13D

BHCK

8728

HC-L

Sum of HC-L11aD through HC-L11eD must equal the sum of (bhck8696 + bhck8700 + bhck8704 + bhck8708 + bhck8712
HC-L12D and HC-L13D.
+ bhck8716 + bhck8720) eq (bhck8724 + bhck8728)

2920

Validity

HC-M2

BHCK

6555

HC-M

2925

Validity

HC-M3

BHCK

6556

HC-M

2955
2970
3010

Validity
Validity
Validity

HC-M8
HC-M9
HC-M12c

BHCK
BHCK
BHCK

C251
6689
5507

HC-M
HC-M
HC-M

3020
3025
3030
3040
3050

Validity
Validity
Validity
Validity
Validity

HC-10b
HC-M11
HC-M13b
HC-7
HC-M14c

BHCK
BHCK
BHCK
BHCK
BHCK

0426
6416
2745
2150
2333

HC-M
HC-M
HC-M
HC-M
HC-M

HC-M2 must be less than or equal to the sum of HC-16 and
HC-19a.
HC-M3 must be less than or equal to the sum of HC-16 and
HC-19a.
HC-M8 must equal 1 (yes) or 0 (no).
HC-M9 must equal 1 (yes) or 0 (no).
Sum of HC-M12a, HC-M12b and HC-M12c must equal HCM12d.
HC-M12d must equal HC-10b.
HC-M11 must equal 1 (yes) or 0 (no).
Sum of HC-M13a and HC-M13b must equal HC-M13c.
HC-M13c must equal HC-7.
Sum of HC-M14a through HC-M14c must equal HC-M14d.

bhct0426 eq bhck0426
bhck6416 eq 1 or bhck6416 eq 0
(bhck2744 + bhck2745) eq bhct2150
bhct2150 eq bhck2150
(bhck2309 + bhck2332 + bhck2333) eq bhct3190

3060
3070

Validity
Validity

HC-16
HC-M15

BHCK
BHCK

3190
B569

HC-M
HC-M

HC-M14d must equal HC-16.
HC-M15 must equal 1 (yes) or 0 (no).

bhct3190 eq bhck3190
bhckb569 eq 1 or bhckb569 eq 0

MARCH 2007

Sum of HC-L1c1a and HC-L1c1b must equal HC-L1c1.
HC-L2a must be less than or equal to HC-L2.
HC-L3a must be less than or equal to HC-L3.
Sum of HC-L9a through HC-L9g must be less than or equal
to HC-L9.
Sum of HC-L11aA through HC-L11eA must equal the sum of
HC-L12A and HC-L13A.

Alg Edit Test
(bhckf164 + bhckf165) eq bhck3816
bhck3820 le bhck6566
bhck3822 le bhck6570
(bhck3432 + bhck3434 + bhck3435 + bhck6561 + bhck6562
+ bhck6568 + bhck6586) le bhck3430
(bhck8693 + bhck8697 + bhck8701 + bhck8705 + bhck8709
+ bhck8713 + bhck3450) eq (bhcka126 + bhck8725)

bhck6555 le (bhck3190 + bhck4062)
bhck6556 le (bhck3190 + bhck4062)
bhckc251 eq 1 or bhckc251 eq 0
bhck6689 eq 1 or bhck6689 eq 0
(bhck3164 + bhckb026 + bhck5507) eq bhct0426

FR Y-9C: CHK-9 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
3071
Validity
HC-M17
3072
Validity
HC-M18

Sub
Series
BHCK
C161
BHCK
C159

HC-M
HC-M

3073

Validity

HC-M18

BHCK

C159

HC-M

3074

Validity

HC-M19a

BHCK

C700

HC-M

3076

Validity

HC-M19a

BHCK

C700

HC-M

3077

Validity

HC-M19b

BHCK

C701

HC-M

3078

Validity

HC-M19b

BHCK

C701

HC-M

3079

Validity

HC-M20d

BHCK

5047

HC-M

3080

Validity

HC-N1aC

BHCK

3492

HC-N

3085

Validity

HC-N1bC

BHCK

3495

HC-N

3095

Validity

HC-N1c1C

BHCK

5400

HC-N

3100

Validity

HC-N1c2aC

BHCK

C229

HC-N

3105

Validity

HC-N1c2bC

BHCK

C230

HC-N

3115

Validity

HC-N1dC

BHCK

3501

HC-N

3120

Validity

HC-N1eC

BHCK

3504

HC-N

3125

Validity

HC-N1f

BHCK

B574

HC-N

MARCH 2007

HC-M17 must equal 1 (yes) or 0 (no).
If HC-M17 is equal to 1 (yes), then HC-M18 must equal 1
(yes) or 0 (no).
If HC-M17 is equal to 0 (no), then HC-M18 must equal null.
If HC-M17 and HC-M18 are equal to 1 (yes), then HC-M19a
must equal null.
If HC-M17 or HC-M18 is equal to 0 (no), then HC-M19a must
not be equal to null and must equal 1 (yes) or 0 (no).
If HC-M17 and HC-M18 are equal to 1 (yes), then HC-M19b
must equal null.
If HC-M17 or HC-M18 is equal to 0 (no), then HC-M19b must
not be equal to null and must equal 1 (yes) or 0 (no).
HC-M20d must be less than or equal to the sum of HCM20c1, HC-M20c2, and HC-M20c3.
Sum of HC-N1aA through HC-N1aC must be less than or
equal to HC-C1aB.
Sum of HC-N1bA through HC-N1bC must be less than or
equal to HC-C1bB.
Sum of HC-N1c1A through HC-N1c1C must be less than or
equal to HC-C1c1B.
Sum of HC-N1c2aA through HC-N1c2aC must be less than
or equal to HC-C1c2aB.
Sum of HC-N1c2bA through HC-N1c2bC must be less than
or equal to HC-C1c2bB.
Sum of HC-N1dA through HC-N1dC must be less than or
equal to HC-C1dB.
Sum of HC-N1eA through HC-N1eC must be less than or
equal to HC-C1eB.
Sum of HC-N1fA through HC-N1fC must be less than or
equal to HC-C1A minus the sum of HC-C1aB through HCC1eB.

Alg Edit Test
bhckc161 eq 1 or bhckc161 eq 0
if bhckc161 eq 1 then bhckc159 eq 1 or bhckc159 eq 0
if bhckc161 eq 0 then bhckc159 eq null
if (bhckc161 eq 1 and bhckc159 eq 1) then bhckc700 eq null
if (bhckc161 eq 0 or bhckc159 eq 0) then ((bhckc700 ne null)
and (bhckc700 eq 1 or bhckc700 eq 0))
if (bhckc161 eq 1 and bhckc159 eq 1) then bhckc701 eq null
if (bhckc161 eq 0 or bhckc159 eq 0) then ((bhckc701 ne null)
and (bhckc701 eq 1 or bhckc701 eq 0))
bhck5047 le (bhck5041 + bhck5043 + bhck5045)
(bhck2759 + bhck2769 + bhck3492) le bhdm1415
(bhck3493 + bhck3494 + bhck3495) le bhdm1420
(bhck5398 + bhck5399 + bhck5400) le bhdm1797
(bhckc236 + bhckc237 + bhckc229) le bhdm5367
(bhckc238 + bhckc239 + bhckc230) le bhdm5368
(bhck3499 + bhck3500 + bhck3501) le bhdm1460
(bhck3502 + bhck3503 + bhck3504) le bhdm1480
(bhckb572 + bhckb573 + bhckb574) le (bhck1410 (bhdm1415 + bhdm1420 + bhdm1797 + bhdm5367 +
bhdm5368 + bhdm1460 + bhdm1480))

FR Y-9C: CHK-10 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
3135
Validity
HC-N2bC

Sub
Series
BHCK
5382

HC-N

3145

Validity

HC-N3C

BHCK

1583

HC-N

3155

Validity

HC-N4C

BHCK

1608

HC-N

3165

Validity

HC-N5aC

BHCK

B577

HC-N

3175

Validity

HC-N5bC

BHCK

B580

HC-N

3185

Validity

HC-N6C

BHCK

5391

HC-N

3195

Validity

HC-N7C

BHCK

5461

HC-N

3205

Validity

HC-N8aC

BHCK

F168

HC-N

3206

Validity

HC-N8bC

BHCK

F171

HC-N

3215

Validity

HC-N9C

BHCK

3507

HC-N

3230

Validity

HC-N10A

BHCK

5524

HC-N

Sum of HC-N1aA through HC-N9A must equal HC-N10A.

3240

Validity

HC-N10B

BHCK

5525

HC-N

Sum of HC-N1aB through HC-N9B must equal HC-N10B.

MARCH 2007

Sum of HC-N2aA through HC-N2bC must be less than or
equal to the sum of HC-C2aA and HC-C2bA.
Sum of HC-N3A through HC-N3C must be less than or equal
to HC-C3A.
Sum of HC-N4A through HC-N4C must be less than or equal
to the sum of HC-C4aA and HC-C4bA.
Sum of HC-N5aA through HC-N5aC must be less than or
equal to HC-C6aA.
Sum of HC-N5bA through HC-N5bC must be less than or
equal to the sum of HC-C6bA and HC-C6cA.
Sum of HC-N6A through HC-N6C must be less than or equal
to HC-C7A.
Sum of HC-N7A through HC-N7C must be less than or equal
to the sum of HC-C9aA and HC-C9bA.
Sum of HC-N8aA through HC-N8aC must be less than or
equal to HC-C10aA.
Sum of HC-N8bA through HC-N8bC must be less than or
equal to HC-C10bA.
Sum of HC-N9A through HC-N9C must be less than or equal
to the sum of HC-1a through HC-3b, HC-5, and HC-10a
through HC-11.

Alg Edit Test
(bhck5377 + bhck5378 + bhck5379 + bhck5380 + bhck5381
+ bhck5382) le (bhck1292 + bhck1296)
(bhck1594 + bhck1597 + bhck1583) le bhck1590
(bhck1606 + bhck1607 + bhck1608) le (bhck1763 +
bhck1764)
(bhckb575 + bhckb576 + bhckb577) le bhckb538
(bhckb578 + bhckb579 + bhckb580) le (bhckb539 +
bhck2011)
(bhck5389 + bhck5390 + bhck5391) le bhck2081
(bhck5459 + bhck5460 + bhck5461) le (bhck1545 +
bhck1564)
(bhckf166 + bhckf167 + bhckf168) le bhckf162
(bhckf169 + bhckf170 + bhckf171) le bhckf163
(bhck3505 + bhck3506 + bhck3507) le (bhck0081 +
bhck0395 + bhck0397 + bhck1754 + bhck1773 + bhdmb987
+ bhckb989 + bhck3545 + bhck3163 + bhck0426 +
bhck2160)
(bhck2759 + bhck3493 + bhck5398 + bhckc236 + bhckc238
+ bhck3499 + bhck3502 + bhckb572 + bhck5377 + bhck5380
+ bhck1594 + bhck1606 + bhckb575 + bhckb578 + bhck5389
+ bhck5459 + bhckf166 + bhckf169 + bhck3505) eq
bhck5524
(bhck2769 + bhck3494 + bhck5399 + bhckc237 + bhckc239
+ bhck3500 + bhck3503 + bhckb573 + bhck5378 + bhck5381
+ bhck1597 + bhck1607 + bhckb576 + bhckb579 + bhck5390
+ bhck5460 + bhckf167 + bhckf170 + bhck3506) eq
bhck5525

FR Y-9C: CHK-11 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
3255
Validity
HC-N10C

Sub
Series
BHCK
5526

HC-N

3270

Validity

HC-N11A

BHCK

5612

HC-N

3280

Validity

HC-N11B

BHCK

5613

HC-N

HC-N11B must be less than or equal to the sum of HC-N1aB bhck5613 le (bhck2769 + bhck3494 + bhck5399 + bhckc237
through HC-N8bB.
+ bhckc239 + bhck3500 + bhck3503 + bhckb573 + bhck5378
+ bhck5381 + bhck1597 + bhck1607 + bhckb576 + bhckb579
+ bhck5390 + bhck5460 + bhckf167 + bhckf170)

3290

Validity

HC-N11C

BHCK

5614

HC-N

HC-N11C must be less than or equal to the sum of HC-N1aC bhck5614 le (bhck3492 + bhck3495 + bhck5400 + bhckc229
through HC-N8bC.
+ bhckc230 + bhck3501 + bhck3504 + bhckb574 + bhck5379
+ bhck5382 + bhck1583 + bhck1608 + bhckb577 + bhckb580
+ bhck5391 + bhck5461 + bhckf168 + bhckf171)

3310

Validity

HC-N11aA

BHCK

5615

HC-N

3320

Validity

HC-N11aB

BHCK

5616

HC-N

3330

Validity

HC-N11aC

BHCK

5617

HC-N

3360

Validity

HC-NM1A

BHCK

1658

HC-N

Sum of HC-N11aA and HC-N11bA must be less than or
equal to HC-N11A.
Sum of HC-N11aB and HC-N11bB must be less than or
equal to HC-N11B.
Sum of HC-N11aC and HC-N11bC must be less than or
equal to HC-N11C.
HC-NM1A must be less than or equal to the sum of HCN1aA through HC-N8bA.

MARCH 2007

Alg Edit Test

Sum of HC-N1aC through HC-N9C must equal HC-N10C.

(bhck3492 + bhck3495 + bhck5400 + bhckc229 + bhckc230
+ bhck3501 + bhck3504 + bhckb574 + bhck5379 + bhck5382
+ bhck1583 + bhck1608 + bhckb577 + bhckb580 + bhck5391
+ bhck5461 + bhckf168 + bhckf171 + bhck3507) eq
bhck5526
HC-N11A must be less than or equal to the sum of HC-N1aA bhck5612 le (bhck2759 + bhck3493 + bhck5398 + bhckc236
through HC-N8bA.
+ bhckc238 + bhck3499 + bhck3502 + bhckb572 + bhck5377
+ bhck5380 + bhck1594 + bhck1606 + bhckb575 + bhckb578
+ bhck5389 + bhck5459 + bhckf166 + bhckf169)

(bhck5615 + bhckc866) le bhck5612
(bhck5616 + bhckc867) le bhck5613
(bhck5617 + bhckc868) le bhck5614
bhck1658 le (bhck2759 + bhck3493 + bhck5398 + bhckc236
+ bhckc238 + bhck3499 + bhck3502 + bhckb572 + bhck5377
+ bhck5380 + bhck1594 + bhck1606 + bhckb575 + bhckb578
+ bhck5389 + bhck5459 + bhckf166 + bhckf169)

FR Y-9C: CHK-12 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
3370
Validity
HC-NM1B

Sub
Series
BHCK
1659

HC-N

HC-NM1B must be less than or equal to the sum of HCN1aB through HC-N8bB.

bhck1659 le (bhck2769 + bhck3494 + bhck5399 + bhckc237
+ bhckc239 + bhck3500 + bhck3503 + bhckb573 + bhck5378
+ bhck5381 + bhck1597 + bhck1607 + bhckb576 + bhckb579
+ bhck5390 + bhck5460 + bhckf167 + bhckf170)

3380

Validity

HC-NM1C

BHCK

1661

HC-N

HC-NM1C must be less than or equal to the sum of HCN1aC through HC-N8bC.

bhck1661 le (bhck3492 + bhck3495 + bhck5400 + bhckc229
+ bhckc230 + bhck3501 + bhck3504 + bhckb574 + bhck5379
+ bhck5382 + bhck1583 + bhck1608 + bhckb577 + bhckb580
+ bhck5391 + bhck5461 + bhckf168 + bhckf171)

3400

Validity

HC-NM2A

BHCK

6558

HC-N

3410

Validity

HC-NM2B

BHCK

6559

HC-N

3420

Validity

HC-NM2C

BHCK

6560

HC-N

3430

Validity

HC-NM2C

BHCK

6560

HC-N

3445

Validity

HC-NM3A

BHCK

3508

HC-N

HC-NM2A must be less than or equal to the sum of HC-N4A bhck6558 le (bhck1606 + bhck5459)
and HC-N7A.
HC-NM2B must be less than or equal to the sum of HC-N4B bhck6559 le (bhck1607 + bhck5460)
and HC-N7B.
HC-NM2C must be less than or equal to the sum of HC-N4C bhck6560 le (bhck1608 + bhck5461)
and HC-N7C.
Sum of HC-NM2A through HC-NM2C must be less than or (bhck6558 + bhck6559 + bhck6560) le bhck2746
equal to HC-CM2.
HC-NM3A must be less than or equal to the sum of HCbhck3508 le (bhck2759 + bhck3493 + bhck5398 + bhckc236
N1aA through HC-N1fA, HC-N2bA, and HC-N4A through HC- + bhckc238 + bhck3499 + bhck3502 + bhckb572 + bhck5380
N8bA.
+ bhck1606 + bhckb575 + bhckb578 + bhck5389 + bhck5459
+ bhckf166 + bhckf169)

3455

Validity

HC-NM3B

BHCK

1912

HC-N

HC-NM3B must be less than or equal to the sum of HCbhck1912 le (bhck2769 + bhck3494 + bhck5399 + bhckc237
N1aB through HC-N1fB, HC-N2bB, and HC-N4B through HC- + bhckc239 + bhck3500 + bhck3503 + bhckb573 + bhck5381
N8bB.
+ bhck1607 + bhckb576 + bhckb579 + bhck5390 + bhck5460
+ bhckf167 + bhckf170)

3460

Validity

HC-NM3C

BHCK

1913

HC-N

bhck1913 le (bhck3492 + bhck3495 + bhck5400 + bhckc229
HC-NM3C must be less than or equal to the sum of HCN1aC through HC-N1fC, HC-N2bC, and HC-N4C through HC- + bhckc230 + bhck3501 + bhck3504 + bhckb574 + bhck5382
N8bC.
+ bhck1608 + bhckb577 + bhckb580 + bhck5391 + bhck5461
+ bhckf168 + bhckf171)

MARCH 2007

Alg Edit Test

FR Y-9C: CHK-13 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
3465
Validity
HC-NM5A

Sub
Series
BHCK
C240

HC-N

HC-NM5A must be less than or equal to the sum of HCN1aA through HC-N8bA.

bhckc240 le (bhck2759 + bhck3493 + bhck5398 + bhckc236
+ bhckc238 + bhck3499 + bhck3502 + bhckb572 + bhck5377
+ bhck5380 + bhck1594 + bhck1606 + bhckb575 + bhckb578
+ bhck5389 + bhck5459 + bhckf166 + bhckf169)

3470

Validity

HC-NM5B

BHCK

C241

HC-N

HC-NM5B must be less than or equal to the sum of HCN1aB through HC-N8bB.

bhckc241 le (bhck2769 + bhck3494 + bhck5399 + bhckc237
+ bhckc239 + bhck3500 + bhck3503 + bhckb573 + bhck5378
+ bhck5381 + bhck1597 + bhck1607 + bhckb576 + bhckb579
+ bhck5390 + bhck5460 + bhckf167 + bhckf170)

3475

Validity

HC-NM5C

BHCK

C226

HC-N

HC-NM5C must be less than or equal to the sum of HCN1aC through HC-N8bC.

bhckc226 le (bhck3492 + bhck3495 + bhck5400 + bhckc229
+ bhckc230 + bhck3501 + bhck3504 + bhckb574 + bhck5379
+ bhck5382 + bhck1583 + bhck1608 + bhckb577 + bhckb580
+ bhck5391 + bhck5461 + bhckf168 + bhckf171)

3478

Validity

HC-NM9bA

BHCK

F173

HC-N

Sum of HC-NM9aA and HC-NM9bA must equal HC-N1aA.

(bhckf172 + bhckf173) eq bhck2759

3479

Validity

HC-NM9bB

BHCK

F175

HC-N

Sum of HC-NM9aB and HC-NM9bB must equal HC-N1aB.

(bhckf174 + bhckf175) eq bhck2769

3480

Validity

HC-NM9bC

BHCK

F177

HC-N

Sum of HC-NM9aC and HC-NM9bC must equal HC-N1aC.

(bhckf176 + bhckf177) eq bhck3492

3481

Validity

HC-NM10bA

BHCK

F179

HC-N

Sum of HC-NM10aA and HC-NM10bA must equal HC-N1eA. (bhckf178 + bhckf179) eq bhck3502

3482

Validity

HC-NM10bB

BHCK

F181

HC-N

Sum of HC-NM10aB and HC-NM10bB must equal HC-N1eB. (bhckf180 + bhckf181) eq bhck3503

3483

Validity

HC-NM10bC

BHCK

F183

HC-N

3490
3495

Validity
Validity

HC-28
HC-R3

BHCK
BHCK

3210
A221

HC-R
HC-R

3500

Validity

HC-R3

BHCK

A221

HC-R

Sum of HC-NM10aC and HC-NM10bC must equal HC(bhckf182 + bhckf183) eq bhck3504
N1eC.
HC-R1 must equal HC-28.
bhcx3210 eq bhck3210
If HC-B7C minus HC-B7D is greater than $10 thousand, then if (bhcka510 - bhcka511) gt 10 then bhcka221 gt 0
HC-R3 must be greater than zero.
If HC-B7C minus HC-B7D is greater than or equal to zero,
if (bhcka510 - bhcka511) ge 0 then bhcka221 le (bhcka510 then HC-R3 must be less than or equal to HC-B7C minus HC- bhcka511)
B7D.

MARCH 2007

Alg Edit Test

FR Y-9C: CHK-14 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
3510
Validity
HC-R8

Sub
Series
BHCK
C227

HC-R

3525

Validity

HC-R11

BHCK

8274

HC-R

3550

Validity

HC-R17

BHCK

5311

HC-R

3565

Validity

HC-R18

BHCK

8275

HC-R

3580

Validity

HC-R18

BHCK

8275

HC-R

3590

Validity

HC-R18

BHCK

8275

HC-R

3625

Validity

HC-R21

BHCK

3792

HC-R

3635
3650
3665
3675
3690

Validity
Validity
Validity
Validity
Validity

HC-K5
HC-R7a
HC-R9a
HC-R9b
HC-R27

BHCK
BHCK
BHCK
BHCK
BHCK

3368
B590
B591
5610
A224

HC-R
HC-R
HC-R
HC-R
HC-R

3710
3715

Validity
Validity

HC-R34A
HC-R34F

BHCK
BHC9

0010
0010

HC-R
HC-R

3730
3740

Validity
Validity

HC-2a
HC-R35F

BHCK
BHC9

1754
1754

HC-R
HC-R

3755
3765

Validity
Validity

HC-2b
HC-R36F

BHCK
BHC9

1773
1773

HC-R
HC-R

3780
3795

Validity
Validity

HC-R37A
HC-R37F

BHCK
BHC9

C225
C225

HC-R
HC-R

MARCH 2007

Sum of HC-R1, HC-R6a, and HC-R6b minus the sum of HCR2 through HC-R5, HC-R7a, and HC-R7b must equal HCR8.
Sum of HC-R8 and HC-R10 minus the sum of HC-R9a and
HC-R9b must equal HC-R11.
Sum of HC-R12 through HC-R16 must equal HC-R17.
If HC-R17 is less than or equal to HC-R11, then HC-R18
must equal HC-R17.
If HC-R11 is greater than zero and HC-R17 is greater than
HC-R11, then HC-R18 must equal HC-R11.
If HC-R11 is less than or equal to zero, then HC-R18 must
equal zero.
Sum of HC-R11, HC-R18, and HC-R19 minus HC-R20 must
equal HC-R21.
HC-R22 must equal HC-K5.
HC-R23 must equal HC-R7a.
HC-R24 must equal HC-R9a.
HC-R25 must equal HC-R9b.
HC-R22 minus the sum of HC-R23 through HC-R26 must
equal HC-R27.
Sum of HC-1a through HC-1b2 must equal HC-R34A.
Sum of HC-R34B through HC-R34F must equal HC-R34A.

Alg Edit Test
((bhcx3210 + bhckb589 + bhckc502) - (bhck8434 +
bhcka221 + bhck4336 + bhckb588 + bhckb590 + bhckf264))
eq bhckc227
(bhckc227 + bhckb592) - (bhckb591 + bhck5610) eq
bhck8274
(bhck5306 + bhckb593 + bhck5310 + bhck2221 + bhckb594)
eq bhck5311
if (bhck5311 le bhck8274) then (bhck8275 eq bhck5311)
if (bhck8274 gt 0 and bhck5311 gt bhck8274) then
(bhck8275 eq bhck8274)
if bhck8274 le 0 then bhck8275 eq 0

((bhck8274 + bhck8275 + bhck1395) - bhckb595) eq
bhck3792
bhct3368 eq bhck3368
bhctb590 eq bhckb590
bhctb591 eq bhckb591
bhct5610 eq bhck5610
bhct3368 - (bhctb590 + bhctb591 + bhct5610 + bhckb596)
eq bhcka224
(bhck0081 + bhck0395 + bhck0397) eq bhck0010
(bhce0010 + bhc00010 + bhc20010 + bhc90010) eq
bhck0010
HC-R35A must equal HC-2a.
bhcx1754 eq bhck1754
Sum of HC-R35B through HC-R35F must equal HC-R35A. (bhce1754 + bhc01754 + bhc21754 + bhc51754 +
bhc91754) eq bhcx1754
HC-R36A must equal HC-2b.
bhcx1773 eq bhck1773
Sum of HC-R36B through HC-R36F must equal HC-R36A. (bhce1773 + bhc01773 + bhc21773 + bhc51773 +
bhc91773) eq bhcx1773
HC-R37A must equal the sum of HC-3a and HC-3b.
bhckc225 eq (bhdmb987 + bhckb989)
Sum of HC-R37C, HC-R37D, and HC-R37F must equal HC- (bhc0c225 + bhc2c225 + bhc9c225) eq bhckc225
R37A.

FR Y-9C: CHK-15 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
3810
Validity
HC-4a
3820
Validity
HC-R38F

Sub
Series
BHCK
5369
BHC9
5369

HC-R
HC-R

3835
3845

Validity
Validity

HC-4b
HC-R39F

BHCK
BHC9

B528
B528

HC-R
HC-R

3860
3870
3885
3895

Validity
Validity
Validity
Validity

HC-4c
HC-R40B
HC-5
HC-R41F

BHCK
BHCE
BHCK
BHC9

3123
3123
3545
3545

HC-R
HC-R
HC-R
HC-R

3910

Validity

HC-R42A

BHCK

B639

HC-R

3920

Validity

HC-R42A

BHCK

B639

HC-R

3930

Validity

HC-R42F

BHC9

B639

HC-R

3945
3955

Validity
Validity

HC-12
HC-R43B

BHCK
BHCE

2170
2170

HC-R
HC-R

3965

Validity

HC-R43C

BHC0

2170

HC-R

3975

Validity

HC-R43D

BHC2

2170

HC-R

Sum of HC-R34D through HC-R39D, HC-R41D, and HCR42D must equal HC-R43D.

(bhc20010 + bhc21754 + bhc21773 + bhc2c225 + bhc25369
+ bhc2b528 + bhc23545 + bhc2b639) eq bhc22170

3985

Validity

HC-R43E

BHC5

2170

HC-R

3995

Validity

HC-R43F

BHC9

2170

HC-R

Sum of HC-R35E, HC-R36E, HC-R38E, HC-R39E, HCR41E, and HC-R42E must equal HC-R43E.
Sum of HC-R34F through HC-R39F, HC-R41F, and HCR42F must equal HC-R43F.

(bhc51754 + bhc51773+ bhc55369 + bhc5b528 + bhc53545
+ bhc5b639) eq bhc52170
(bhc90010 + bhc91754 + bhc91773 + bhc9c225 + bhc95369
+ bhc9b528 + bhc93545 + bhc9b639) eq bhc92170

MARCH 2007

Alg Edit Test

HC-R38A must equal HC-4a.
Sum of HC-R38B through HC-R38F must equal HC-R38A.

bhct5369 eq bhck5369
(bhce5369 + bhc05369 + bhc25369 + bhc55369 +
bhc95369) eq bhct5369
HC-R39A must equal HC-4b.
bhctb528 eq bhckb528
Sum of HC-R39B through HC-R39F must equal HC-R39A. (bhceb528 + bhc0b528 + bhc2b528 + bhc5b528 +
bhc9b528) eq bhctb528
HC-R40A must equal HC-4c.
bhcx3123 eq bhck3123
HC-R40B must equal HC-R40A.
bhce3123 eq bhcx3123
HC-R41A must equal HC-5.
bhcx3545 eq bhck3545
HC-R41A must equal the sum of HC-R41B through HCbhcx3545 eq (bhce3545 + bhc03545 + bhc23545 +
R41F.
bhc53545 + bhc93545)
HC-R42A must equal the sum of HC-6 through HC-11.
bhckb639 eq (bhck2145 + bhck2150 + bhck2130 + bhck3163
+ bhck0426 + bhck2160)
Sum of HC-R34A through HC-R39A, HC-R41A, and HC((bhck0010 + bhcx1754 + bhcx1773 + bhckc225 + bhct5369
R42A minus HC-R40A must equal HC-R43A.
+ bhctb528 + bhcx3545 + bhckb639) - bhcx3123) eq
bhct2170
Sum of HC-R42B through HC-R42F must equal HC-R42A. (bhceb639 + bhc0b639 + bhc2b639 + bhc5b639 +
bhc9b639) eq bhckb639
HC-R43A must equal HC-12.
bhct2170 eq bhck2170
Sum of HC-R34B, HC-R35B, HC-R36B, HC-R38B, HC((bhce0010 + bhce1754 + bhce1773 + bhce5369 +
R39B, HC-R41B, and HC-R42B minus HC-R40B must equal bhceb528 + bhce3545 + bhceb639) - bhce3123) eq
HC-R43B.
bhce2170
Sum of HC-R34C through HC-R39C, HC-R41C, and HC(bhc00010 + bhc01754 + bhc01773 + bhc0c225 + bhc05369
R42C must equal HC-R43C.
+ bhc0b528 + bhc03545 + bhc0b639) eq bhc02170

FR Y-9C: CHK-16 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
4005
Validity
HC-R43F

Sub
Series
BHC9
2170

HC-R

4035

Validity

HC-R44F

BHC9

B546

HC-R

4045
4055

Validity
Validity

HC-L3
HC-R45B

BHCK
BHCE

6570
6570

HC-R
HC-R

4065

Validity

HC-R45F

BHC9

6570

HC-R

4075
4085

Validity
Validity

HC-L4
HC-R46B

BHCK
BHCE

3411
3411

HC-R
HC-R

4095

Validity

HC-R46F

BHC9

3411

HC-R

4105
4115

Validity
Validity

HC-R47B
HC-R47F

BHCE
BHC9

3429
3429

HC-R
HC-R

4125
4135
4145

Validity
Validity
Validity

HC-L6
HC-R48B
HC-R48F

BHCK
BHCE
BHC9

3433
3433
3433

HC-R
HC-R
HC-R

4150
4155
4165

Validity
Validity
Validity

HC-SM1b
HC-R49B
HC-R49F

BHCK
BHCE
BHC9

A250
A250
A250

HC-R
HC-R
HC-R

4170
4175
4185

Validity
Validity
Validity

HC-R50F
HC-R51B
HC-R51F

BHC9
BHCE
BHC9

B541
B675
B675

HC-R
HC-R
HC-R

4195
4210

Validity
Validity

HC-R52B
HC-R52F

BHCE
BHC9

B681
B681

HC-R
HC-R

MARCH 2007

Alg Edit Test

Sum of HC-R43B through HC-R43F must equal HC-R43A.

(bhce2170 + bhc02170 + bhc22170 + bhc52170 +
bhc92170) eq bhct2170
Sum of HC-R44C through HC-R44F must equal HC-R44B. (bhc0b546 + bhc2b546 + bhc5b546 + bhc9b546) eq
bhceb546
HC-R45A must equal HC-L3.
bhct6570 eq bhck6570
HC-R45B must equal HC-R45A multiplied by 50%. (+/-2)
(bhce6570 le ((bhct6570 * .5) + 2)) and (bhce6570 ge
((bhct6570 * .5) - 2))
Sum of HC-R45C through HC-R45F must equal HC-R45B. (bhc06570 + bhc26570 + bhc56570 + bhc96570) eq
bhce6570
HC-R46A must equal HC-L4.
bhct3411 eq bhck3411
HC-R46B must equal HC-R46A multiplied by 20%. (+/-2)
(bhce3411 le ((bhct3411 * .2) + 2)) and (bhce3411 ge
((bhct3411 * .2) - 2))
Sum of HC-R46C through HC-R46F must equal HC-R46B. (bhc03411 + bhc23411 + bhc53411 + bhc93411) eq
bhce3411
HC-R47B must equal HC-R47A.
bhce3429 eq bhck3429
Sum of HC-R47C, HC-R47D, and HC-R47F must equal HC- (bhc03429 + bhc23429 + bhc93429) eq bhce3429
R47B.
HC-R48A must equal HC-L6.
bhct3433 eq bhck3433
HC-R48B must equal HC-R48A.
bhce3433 eq bhct3433
Sum of HC-R48C through HC-R48F must equal HC-R48B. (bhc03433 + bhc23433 + bhc53433 + bhc93433) eq
bhce3433
HC-SM1b must equal HC-R49A.
bhcka250 eq bhcta250
HC-R49B must equal HC-R49A.
bhcea250 eq bhcta250
Sum of HC-R49C through HC-R49F must equal HC-R49B. (bhc0a250 + bhc2a250 + bhc5a250 + bhc9a250) eq
bhcea250
HC-R50F must equal HC-R50B.
bhc9b541 eq bhceb541
HC-R51B must equal HC-R51A.
bhceb675 eq bhckb675
Sum of HC-R51C through HC-R51F must equal HC-R51B. (bhc0b675 + bhc2b675 + bhc5b675 + bhc9b675) eq
bhceb675
HC-R52B must equal HC-R52A.
bhceb681 eq bhckb681
Sum of HC-R52C through HC-R52F must equal HC-R52B. (bhc0b681 + bhc2b681 + bhc5b681 + bhc9b681) eq
bhceb681

FR Y-9C: CHK-17 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
4220
Validity
HC-R53B

Sub
Series
BHCE
6572

HC-R

HC-R53B must equal HC-R53A multiplied by 50%. (+/-2k)

4230

Validity

HC-R53F

BHC9

6572

HC-R

Sum of HC-R53C through HC-R53F must equal HC-R53B.

4240

Validity

HC-R54E

BHC5

A167

HC-R

Sum of HC-R54C through HC-R54E must equal HC-R54B.

4250

Validity

HC-R55C

BHCK

B696

HC-R

Sum of HC-R43C through HC-R49C and HC-R51C through
HC-R54C must equal HC-R55C.

4260

Validity

HC-R55D

BHCK

B697

HC-R

4270

Validity

HC-R55E

BHCK

B698

HC-R

4280

Validity

HC-R55F

BHCK

B699

HC-R

4290
4300

Validity
Validity

HC-R57C
HC-R57D

BHCK
BHCK

B700
B701

HC-R
HC-R

4310

Validity

HC-R57E

BHCK

B702

HC-R

4320
4335

Validity
Validity

HC-R57F
HC-R59

BHCK
BHCK

B703
B704

HC-R
HC-R

4345

Validity

HC-R62

BHCK

A223

HC-R

4355
4590

Validity
Validity

HC-RM6
HC-S4bA

BHCK
BHCK

F031
B740

HC-R
HC-S

4595

Validity

HC-S4bB

BHCK

B741

HC-S

MARCH 2007

Alg Edit Test
bhce6572 le ((bhck6572 * .5) + 2) and bhce6572 ge
((bhck6572 * .5) - 2)
(bhc06572 + bhc26572 + bhc56572 + bhc96572) eq
bhce6572
(bhc0a167 + bhc2a167 + bhc5a167) eq bhcea167

(bhc02170 + bhc0b546 + bhc06570 + bhc03411 + bhc03429
+ bhc03433 + bhc0a250 + bhc0b675 + bhc0b681 +
bhc06572 + bhc0a167) eq bhckb696
Sum of HC-R43D through HC-R49D and HC-R51D through (bhc22170 + bhc2b546 + bhc26570 + bhc23411 + bhc23429
HC-R54D must equal HC-R55D.
+ bhc23433 + bhc2a250 + bhc2b675 + bhc2b681 +
bhc26572 + bhc2a167) eq bhckb697
Sum of HC-R43E through HC-R46E, HC-R48E, HC-R49E
(bhc52170 + bhc5b546 + bhc56570 + bhc53411 + bhc53433
and HC-R51E through HC-R54E must equal HC-R55E.
+ bhc5a250 + bhc5b675 + bhc5b681 + bhc56572 +
bhc5a167) eq bhckb698
Sum of HC-R43F through HC-R53F must equal HC-R55F. (bhc92170 + bhc9b546 + bhc96570 + bhc93411 + bhc93429
+ bhc93433 + bhc9a250 + bhc9b541 + bhc9b675 +
bhc9b681 + bhc96572) eq bhckb699
HC-R57C must equal zero.
bhckb700 eq 0
HC-R57D must equal HC-R55D multiplied by 20%. (+/-2)
bhckb701 le (bhckb697 * .2) + 2) and bhckb701 ge
(bhckb697 * .2) - 2)
HC-R57E must equal HC-R55E multiplied by 50%. (+/-2)
bhckb702 le (bhckb698 * .5) + 2) and bhckb702 ge
(bhckb698 * .5) - 2)
HC-R57F must equal HC-R55F.
bhckb703 eq bhckb699
Sum of HC-R57C through HC-R57F and HC-R58 must equal (bhckb700 + bhckb701 + bhckb702 + bhckb703 + bhck1651)
HC-R59.
eq bhckb704
HC-R62 must equal HC-R59 minus the sum of HC-R60 and bhcka223 eq (bhckb704 - (bhcka222 + bhck3218))
HC-R61.
HC-RM6 should be less than or equal to HC-R58.
bhckf031 le bhck1651
Sum of HC-S4aA and HC-S4bA must be less than or equal (bhckb733 + bhckb740) le bhckb705
to HC-S1A.
Sum of HC-S4aB and HC-S4bB must be less than or equal (bhckb734 + bhckb741) le bhckb706
to HC-S1B.

FR Y-9C: CHK-18 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Check
4600
Validity
HC-S4bC

Sub
Series
BHCK
B742

HC-S

4605

Validity

HC-S4bD

BHCK

B743

HC-S

4610

Validity

HC-S4bE

BHCK

B744

HC-S

4615

Validity

HC-S4bF

BHCK

B745

HC-S

4620

Validity

HC-S4bG

BHCK

B746

HC-S

4640

Validity

HC-S7bB

BHCK

B767

HC-S

4645

Validity

HC-S7bC

BHCK

B768

HC-S

4650

Validity

HC-S7bF

BHCK

B769

HC-S

4697
4710

Validity
Validity

HC-SM1a
HC-SM4

BHCK
BHCK

A249
C407

HC-S
HC-S

MARCH 2007

Sum of HC-S4aC and HC-S4bC must be less than or equal
to HC-S1C.
Sum of HC-S4aD and HC-S4bD must be less than or equal
to HC-S1D.
Sum of HC-S4aE and HC-S4bE must be less than or equal
to HC-S1E.
Sum of HC-S4aF and HC-S4bF must be less than or equal to
HC-S1F.
Sum of HC-S4aG and HC-S4bG must be less than or equal
to HC-S1G.
Sum of HC-S7aB and HC-S7bB must be less than or equal
to HC-S6aB.
Sum of HC-S7aC and HC-S7bC must be less than or equal
to HC-S6aC.
Sum of HC-S7aF and HC-S7bF must be less than or equal to
HC-S6aF.
HC-SM1b must be less than or equal to HC-SM1a.
HC-SM4 must be less than or equal to HC-S1C.

Alg Edit Test
(bhckb735 + bhckb742) le bhckb707
(bhckb736 + bhckb743) le bhckb708
(bhckb737 + bhckb744) le bhckb709
(bhckb738 + bhckb745) le bhckb710
(bhckb739 + bhckb746) le bhckb711
(bhckb764 + bhckb767) le bhckb761
(bhckb765 + bhckb768) le bhckb762
(bhckb766 + bhckb769) le bhckb763
bhcka250 le bhcka249
bhckc407 le bhckb707

FR Y-9C: CHK-19 of 20

Validity (V) Edits for the FR Y-9C
(Effective as of March 31, 2007)
Each edit in the checklist must balance, rounding errors are not allowed.
NOTE section follows edits.
MDRM
Schedule
Edit Test

Edit
Edit Type Target Item
Sub
Alg Edit Test
Check
Series
NOTE:
Schedule HC-R (3490 through 4355): This schedule is to be submitted on a consolidated basis. Data for Schedule HC-R must be submitted and will be reviewed for accuracy and quality for all top-tier
BHCs or lower-tier BHCs functioning as the consolidated top-tier BHC. Any data for Schedule R submitted by a lower-tier BHC will be reviewed for accuracy and quality as well (i.e. HC-R11 is not null).

MARCH 2007

FR Y-9C: CHK-20 of 20

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5120
Quality
HI-2d

Sub
MDRM
Schedule
Series
BHCK
4397
HI

5130

Intraseries HI-2d

BHCK

4397

HI

5131

Quality

HI-5d4

BHCK

C386

HI

5132

Quality

HI-5d4

BHCK

C386

HI

5133

Quality

HI-5d4

BHCK

C386

HI

5134

Quality

HI-5d4

BHCK

C386

HI

5135

Quality

HI-5d5

BHCK

C387

HI

5137

Intraseries HI-5d5

BHCK

C387

HI

5138
5139

Quality
HI-7a
Intraseries HI-1a1

BHCK
BHCK

4135
4010

HI
HI

5141

Intraseries HI-1a2

BHCK

4059

HI

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

For March, if HC-19a is greater than $2 million, then HI-2d
should be greater than zero.
For June, September, and December, if HC-19a (current) is
greater than $2 million, then HI-2d (current minus previous)
should be greater than zero.
If the sum of HI-Mem12b1 and HI-Mem12b2 is greater than
zero and does not equal HI-5d5, then HI-5d4 should be
greater than zero.
If HI-5d4 is greater than zero, then HI-5d4 should be greater
than or equal to the sum of HI-Mem12b1 and HI-Mem12b2.

if (mm-q1 eq 03) and (bhck4062 gt 2000) then bhck4397 gt 0

If HI-Mem12c is greater than zero, then HI-5d4 should be
greater than zero.
If the sum of HC-I(I)2, HC-I(I)5, HC-I(I)6, HC-I(II)3, HC-I(II)6,
HC-I(II)7, and HC-M21 is greater than zero, then HI-5d4
should be greater than zero.
For March, If the absolute value of HI-5d4 is greater than
$5k, then HI-5d5 should not equal zero.
For June, September, and December, If the absolute value
of HI-5d4 (current minus previous) is greater than $5k, then
HI-5d5 (current minus previous) should not equal zero.

if bhckb983 gt 0 then bhckc386 gt 0

if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4062-q1 gt 2000) then (bhck4397-q1 - bhck4397-q2) gt
0
if ((bhckc242 + bhckc243 gt 0) and (bhckc242 + bhckc243 ne
bhckc387)) then bhckc386 gt 0
if bhckc386 gt 0 then bhckc386 ge (bhckc242 + bhckc243)

if (bhckc244 + bhckc245 + bhckc246 + bhckc248 + bhckc249
+ bhckc250 + bhckc253) gt 0 then bhckc386 gt 0

if (mm-q1 eq 03) and (bhckc386 gt 5 or (bhckc386 * -1) gt 5)
then bhckc387 ne 0
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
((bhckc386-q1 - bhckc386-q2) gt 5 or ((bhckc386-q1 bhckc386-q2) * -1) gt 5) then (bhckc387-q1 - bhckc387-q2)
ne 0
HI-7a should be greater than zero.
bhck4135 gt 0
For June, September, and December, if HI-A9 (current) is
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
equal to HI-A9 (previous), then the current period should be (bhck4356-q1 eq bhck4356-q2)) then (bhck4010-q1 ge
greater than or equal to the previous period (minus $2k) for bhck4010-q2 - 2)
HI-1a1.
For June, September, and December, if HI-A9 (current) is
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
equal to HI-A9 (previous), then the current period should be (bhck4356-q1 eq bhck4356-q2)) then (bhck4059-q1 ge
greater than or equal to the previous period (minus $2k) for bhck4059-q2 - 2)
HI-1a2.

FR Y-9C: EDIT-1 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5142
Intraseries HI-1b

Sub
MDRM
Schedule
Series
BHCK
4065
HI

5143

Intraseries HI-1c

BHCK

4115

HI

5144

Intraseries HI-1d1

BHCK

B488

HI

5145

Intraseries HI-1d2

BHCK

B489

HI

5146

Intraseries HI-1d3

BHCK

4060

HI

5147

Intraseries HI-1e

BHCK

4069

HI

5148

Intraseries HI-1f

BHCK

4020

HI

5149

Intraseries HI-1g

BHCK

4518

HI

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-1b.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-1c.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-1d1.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-1d2.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-1d3.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-1e.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-1f.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-1g.

Alg Edit Test
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4065-q1 ge
bhck4065-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4115-q1 ge
bhck4115-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhckb488-q1 ge
bhckb488-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhckb489-q1 ge
bhckb489-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4060-q1 ge
bhck4060-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4069-q1 ge
bhck4069-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4020-q1 ge
bhck4020-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4518-q1 ge
bhck4518-q2 - 2)

FR Y-9C: EDIT-2 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5150
Intraseries HI-2a1a

Sub
MDRM
Schedule
Series
BHCK
A517
HI

5151

Intraseries HI-2a1b

BHCK

A518

HI

5152

Intraseries HI-2a1c

BHCK

6761

HI

5153

Intraseries HI-2a2

BHCK

4172

HI

5154

Intraseries HI-2b

BHCK

4180

HI

5155

Intraseries HI-2c

BHCK

4185

HI

5156

Intraseries HI-2d

BHCK

4397

HI

5157

Intraseries HI-2e

BHCK

4398

HI

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-2a1a.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-2a1b.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-2a1c.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-2a2.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-2b.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-2c.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-2d.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-2e.

Alg Edit Test
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhcka517-q1 ge
bhcka517-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhcka518-q1 ge
bhcka518-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck6761-q1 ge
bhck6761-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4172-q1 ge
bhck4172-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4180-q1 ge
bhck4180-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4185-q1 ge
bhck4185-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4397-q1 ge
bhck4397-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4398-q1 ge
bhck4398-q2 - 2)

FR Y-9C: EDIT-3 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5158
Intraseries HI-5a

Sub
MDRM
Schedule
Series
BHCK
4070
HI

5159

Intraseries HI-5b

BHCK

4483

HI

5160

Intraseries HI-5d1

BHCK

C886

HI

5161

Intraseries HI-5d2

BHCK

C888

HI

5162

Intraseries HI-5d3

BHCK

C887

HI

5163

Intraseries HI-5d4

BHCK

C386

HI

5164

Intraseries HI-5d5

BHCK

C387

HI

5166

Intraseries HI-7a

BHCK

4135

HI

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-5a.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-5b.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-5d1.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-5d2.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-5d3.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-5d4.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-5d5.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-7a.

Alg Edit Test
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4070-q1 ge
bhck4070-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4483-q1 ge
bhck4483-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhckc886-q1 ge
bhckc886-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhckc888-q1 ge
bhckc888-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhckc887-q1 ge
bhckc887-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhckc386-q1 ge
bhckc386-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhckc387-q1 ge
bhckc387-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4135-q1 ge
bhck4135-q2 - 2)

FR Y-9C: EDIT-4 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
5167
Intraseries HI-7b

Sub
MDRM
Schedule
Series
BHCK
4217
HI

5168

Intraseries HI-7c1

BHCK

C216

HI

5169

Intraseries HI-7c2

BHCK

C232

HI

5212
5214

Quality
Quality

HI-Mem1
HI-Mem1

BHCK
BHCK

4519
4519

HI
HI

5216
5218

Quality
Quality

HI-Mem2
HI-Mem2

BHCK
BHCK

4592
4592

HI
HI

5220

Intraseries HI-Mem3

BHCK

4313

HI

5235

Intraseries HI-Mem4

BHCK

4507

HI

For June, September, and December, HI-Mem4 (current)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
should be greater than or equal to HI-Mem4 (previous - $2k). (bhck4507-q1 ge bhck4507-q2 - 2)

5240

Quality

HI-Mem5

BHCK

4150

HI

5245

Quality

HI-Mem5

BHCK

4150

HI

For March, if HI-Mem5 is greater than zero, then HI-7a
divided by HI-Mem5 should be in the range of $4 - $40
thousand.
HI-Mem5 should be greater than zero.

MARCH 2007

For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-7b.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-7c1.
For June, September, and December, if HI-A9 (current) is
equal to HI-A9 (previous), then the current period should be
greater than or equal to the previous period (minus $2k) for
HI-7c2.
HI-Mem1 should be greater than or equal to HI-3.
The absolute value of HI-Mem1 should be less than or equal
to 150% of the absolute value of HI-3.

Alg Edit Test
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhck4217-q1 ge
bhck4217-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhckc216-q1 ge
bhckc216-q2 - 2)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q1 eq bhck4356-q2)) then (bhckc232-q1 ge
bhckc232-q2 - 2)

bhck4519 ge bhck4074
((if bhck4519 lt 0 and bhck4519 ne null then bhck4519 * -1
else bhck4519) le ((if bhck4074 lt 0 and bhck4074 ne null
then bhck4074 * -1 else bhck4074) * 1.5))
HI-Mem2 should be greater than or equal to HI-8.
bhck4592 ge bhck4301
The absolute value of HI-Mem2 should be less than or equal ((if bhck4592 lt 0 and bhck4592 ne null then bhck4592 * -1
to 150% of the absolute value of HI-8.
else bhck4592) le ((if bhck4301 lt 0 and bhck4301 ne null
then bhck4301 * -1 else bhck4301) * 1.5))
For June, September, and December, HI-Mem3 (current)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
should be greater than or equal to HI-Mem3 (previous - $2k). (bhck4313-q1 ge bhck4313-q2 - 2)

if (mm-q1 eq 03) and (bhck4150 gt 0) then ((bhck4135 /
bhck4150) ge 4 and (bhck4135 / bhck4150) le 40)
bhck4150 gt 0

FR Y-9C: EDIT-5 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5250
Intraseries HI-Mem5

Sub
MDRM
Schedule
Series
BHCK
4150
HI

5260

Quality

HI-Mem6f

BHCK

8562

HI

5261

Quality

HI-Mem6f

TEXT

8562

HI

5262

Quality

HI-Mem6g

BHCK

8563

HI

5263

Quality

HI-Mem6g

TEXT

8563

HI

5264

Quality

HI-Mem6h

BHCK

8564

HI

5265

Quality

HI-Mem6h

TEXT

8564

HI

5273

Quality

HI-Mem6i

BHCK

F229

HI

5275

Quality

HI-Mem6i

BHCK

8564

HI

5276

Intraseries HI-Mem6i

BHCK

F229

HI

5280

Quality

BHCK

8565

HI

HI-Mem7h

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

For June, September, and December, if HI-Mem5 (current) is
greater than zero, and HI-7a (previous) is greater than zero,
then HI-7a (current - previous) divided by HI-Mem5 (current)
should be in the range of $4 - $40 thousand.

if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4150-q1 gt 0 and bhck4135-q2 gt 0) then ((bhck4135q1 - bhck4135-q2)/bhck4150-q1) ge 4 and ((bhck4135-q1 bhck4135-q2)/bhck4150-q1) le 40

If financial data is not equal to null or zero, then text data
should not be null.
If text data is not equal to null, then financial data should not
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.
If text data is not equal to null, then financial data should not
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.
If text data is not equal to null, then financial data should not
equal null or zero.
If HI-5l minus 5% of the sum of HI-1h and HI-5m is greater
than $500k, then the sum of HI-Mem6a through HI-Mem6i
should be greater than zero.

if bhck8562 ne null and bhck8562 ne 0 then text8562 ne null
if text8562 ne null then bhck8562 ne null and bhck8562 ne 0
if bhck8563 ne null and bhck8563 ne 0 then text8563 ne null
if text8563 ne null then bhck8563 ne null and bhck8563 ne 0
if bhck8564 ne null and bhck8564 ne 0 then text8564 ne null
if text8564 ne null then bhck8564 ne null and bhck8564 ne 0
if (bhckb497 - ((0.05)*(bhck4107 + bhck4079)) gt 500) then
(bhckc013 + bhckc014 + bhckc016 + bhck4042 + bhckc015
+ bhck8562 + bhck8563 + bhck8564 + bhckf229) gt 0

Sum of HI-Mem6a through HI-Mem6i should be less than or (bhckc013 + bhckc014 + bhckc016 + bhck4042 + bhckc015
equal to HI-5l.
+ bhck8562 + bhck8563 + bhck8564 + bhckf229) le
bhckb497
If the sum of HI-Mem6a through HI-Mem6i (previous) is not if (bhckc013-q2 + bhckc014-q2 + bhckc016-q2 + bhck4042null, then the sum of HI-Mem6a through HI-Mem6i (current) q2 + bhckc015-q2 + bhck8562-q2 + bhck8563-q2 +
should not be null.
bhck8564-q2 + bhckf229-q2) ne null then (bhckc013-q1 +
bhckc014-q1 + bhckc016-q1 + bhck4042-q1 + bhckc015-q1
+ bhck8562-q1 + bhck8563-q1 + bhck8564-q1 + bhckf229q1) ne null
If financial data is not equal to null or zero, then text data
if bhck8565 ne null and bhck8565 ne 0 then text8565 ne null
should not be null.

FR Y-9C: EDIT-6 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
5281
Quality
HI-Mem7h

Sub
MDRM
Schedule
Series
TEXT
8565
HI

5282

Quality

HI-Mem7i

BHCK

8566

HI

5283

Quality

HI-Mem7i

TEXT

8566

HI

5284

Quality

HI-Mem7j

BHCK

8567

HI

5285

Quality

HI-Mem7j

TEXT

8567

HI

5293

Quality

HI-Mem7j

BHCK

8567

HI

5295

Quality

HI-Mem7j

BHCK

8567

HI

The sum of HI-Mem7a through HI-Mem7j should be less
than or equal to HI-7d.

5297

Intraseries HI-Mem7j

BHCK

8567

HI

If the sum of HI-Mem7a through HI-Mem7j (previous) is not
null, then the sum of HI-Mem7a through HI-Mem7j (current)
should not be null.

5300

Quality

HI-Mem8a1

BHCK

3571

HI

5301

Quality

HI-Mem8a1

TEXT

3571

HI

5302

Quality

HI-Mem8b1

BHCK

3573

HI

5303

Quality

HI-Mem8b1

TEXT

3573

HI

If financial data is not equal to null or zero, then text data
should not be null.
If text data is not equal to null, then financial data should not
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.
If text data is not equal to null, then financial data should not
equal null or zero.

MARCH 2007

If text data is not equal to null, then financial data should not
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.
If text data is not equal to null, then financial data should not
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.
If text data is not equal to null, then financial data should not
equal null or zero.
If HI-7d minus 5% of the sum of HI-1h and HI-5m is greater
than $500k, then the sum of HI-Mem7a through HI-Mem7j
should be greater than zero.

Alg Edit Test
if text8565 ne null then bhck8565 ne null and bhck8565 ne 0
if bhck8566 ne null and bhck8566 ne 0 then text8566 ne null
if text8566 ne null then bhck8566 ne null and bhck8566 ne 0
if bhck8567 ne null and bhck8567 ne 0 then text8567 ne null
if text8567 ne null then bhck8567 ne null and bhck8567 ne 0
If (bhck4092 - ((0.05)*(bhck4107 + bhck4079)) gt 500) then
(bhckc017 + bhck0497 + bhck4136 + bhckc018 + bhck8403
+ bhck4141 + bhck4146 + bhck8565 + bhck8566 +
bhck8567) gt 0
(bhckc017 + bhck0497 + bhck4136 + bhckc018 + bhck8403
+ bhck4141 + bhck4146 + bhck8565 + bhck8566 +
bhck8567) le bhck4092
if (bhckc017-q2 + bhck0497-q2 + bhck4136-q2 + bhckc018q2 + bhck8403-q2 + bhck4141-q2 + bhck4146-q2 +
bhck8565-q2 + bhck8566-q2 + bhck8567-q2) ne null then
(bhckc017-q1 + bhck0497-q1 + bhck4136-q1 + bhckc018-q1
+ bhck8403-q1 + bhck4141-q1 + bhck4146-q1 + bhck8565q1 + bhck8566-q1 + bhck8567-q1) ne null
if bhck3571 ne null and bhck3571 ne 0 then text3571 ne null
if text3571 ne null then bhck3571 ne null and bhck3571 ne 0
if bhck3573 ne null and bhck3573 ne 0 then text3573 ne null
if text3573 ne null then bhck3573 ne null and bhck3573 ne 0

FR Y-9C: EDIT-7 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5304
Quality
HI-Mem8c1

Sub
MDRM
Schedule
Series
BHCK
3575
HI

5305

Quality

HI-Mem8c1

TEXT

3575

HI

5350

Quality

HI-Mem8c2

BHCK

3576

HI

5371

Intraseries HI-Mem9e

BHCK

F186

HI

5372

Intraseries HI-Mem9a

BHCK

8757

HI

5373

Intraseries HI-Mem9b

BHCK

8758

HI

5375

Intraseries HI-Mem9c

BHCK

8759

HI

5378

Intraseries HI-Mem9d

BHCK

8760

HI

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If financial data is not equal to null or zero, then text data
should not be null.
If text data is not equal to null, then financial data should not
equal null or zero.
Sum of HI-Mem8a1, HI-Mem8b1, and HI-Mem8c1 minus the
sum of HI-Mem8a2, HI-Mem8b2, and HI-Mem8c2 should be
equal to HI-12.
If HC-K4a (for any quarter of the preceding calendar year) is
greater than or equal to $2 million, and HI-5c(current) is not
equal to zero, then the sum of HI-Mem9a through HI-Mem9e
should not equal zero.

if bhck3575 ne null and bhck3575 ne 0 then text3575 ne null

For June, September, and December, if HI-Mem9a
(previous) is not equal to zero, then HI-Mem9a (current)
should not equal zero.
For June, September, and December, if HI-Mem9b
(previous) is not equal to zero, then HI-Mem9b (current)
should not equal zero.
For June, September, and December, if HI-Mem9c
(previous) is not equal to zero, then HI-Mem9c (current)
should not equal zero.
For June, September, and December, if HI-Mem9d
(previous) is not equal to zero, then HI-Mem9d (current)
should not equal zero.

if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck8757-q2 ne 0)) then (bhck8757-q1 ne 0)

if text3575 ne null then bhck3575 ne null and bhck3575 ne 0
((bhck3571 + bhck3573 + bhck3575) - (bhck3572 +
bhck3574 + bhck3576)) eq bhck4320
if (((mm-q1 eq 03) and (bhck3401-q2 ge 2000 or bhck3401q3 ge 2000 or bhck3401-q4 ge 2000 or bhck3401-q5 ge
2000)) or ((mm-q1 eq 06) and (bhck3401-q3 ge 2000 or
bhck3401-q4 ge 2000 or bhck3401-q5 ge 2000 or bhck3401q6 ge 2000)) or ((mm-q1 eq 09) and (bhck3401-q4 ge 2000
or bhck3401-q5 ge 2000 or bhck3401-q6 ge 2000 or
bhck3401-q7 ge 2000)) or ((mm-q1 eq 12) and (bhck3401-q5
ge 2000 or bhck3401-q6 ge 2000 or bhck3401-q7 ge 2000 or
bhck3401-q8 ge 2000))) and (bhcka220-q1 ne 0) then
(bhck8757-q1 + bhck8758-q1 + bhck8759-q1 + bhck8760-q1
+ bhckf186-q1) ne 0

if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck8758-q2 ne 0)) then (bhck8758-q1 ne 0)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck8759-q2 ne 0)) then (bhck8759-q1 ne 0)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck8760-q2 ne 0)) then (bhck8760-q1 ne 0)

FR Y-9C: EDIT-8 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5379
Intraseries HI-Mem9e

Sub
MDRM
Schedule
Series
BHCK
F186
HI

5381

Intraseries HI-Mem11

BHCK

A251

HI

5385

Intraseries HI-Mem12a

BHCK

8431

HI

5387

Quality

HI-Mem12a

BHCK

8431

HI

5390

Quality

HI-Mem12a

BHCK

8431

HI

5395

Intraseries HI-Mem12b2

BHCK

C243

HI

5399

Quality

BHCK

C243

HI

5400
5403

Intraseries HI-Mem13
Quality
HI-Mem13

BHCK
BHCK

A530
A530

HI
HI

5420

Quality

HI-Mem15

BHCK

C409

HI

5421

Intraseries HI-Mem15

BHCK

C409

HI

5425

Quality

HI-Mem16

BHCK

F228

HI

9000
9010
9020
9030
9030

Quality
Quality
Quality
Quality
Quality

HI-1a1
HI-1a2
HI-1b
HI-1c
HI-1d1

BHCK
BHCK
BHCK
BHCK
BHCK

4010
4059
4065
4115
B488

HI
HI
HI
HI
HI

HI-Mem12b2

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, if HI-Mem9e
(previous) is not equal to zero, then HI-Mem9e (current)
should not equal zero.
For June, September, and December, if HI-Mem11
(previous) is greater than zero, then HI-Mem11 (current)
should be greater than zero.
For June, September, and December, HI-Mem12a (current)
should be greater than or equal to HI-Mem12a (previous 2k).
If HC-M16 is greater than $100 thousand, then HI-Mem12a
should be greater than zero.
HI-Mem12a should be less than or equal to the sum of HI5d1, HI-5d2, HI-5d3, and HI-5d5 (+$10k).
For June, September, and December, the sum of HIMem12b1 and HI-Mem12b2 (current) should be greater than
or equal to the sum of HI-Mem12b1 and HI-Mem12b2
(previous).
If HI-Mem12c is greater than zero, then the sum of HIMem12b1and HI-Mem12b2 should be greater than zero.
HI-Mem13 (current) should equal HI-Mem13 (previous).
If HC-F2 is greater than $500k, then HI-Mem13 should equal
"0" (no).
HI-Mem15 should be less than or equal to the sum of HC-24
and HC-25.
If HI-Mem15 (previous) is greater than zero, the HI-Mem15
(current) should be greater than zero.
If the sum of HC-CM6b and HC-CM6c is greater than zero,
then HI-Mem16 should not be null.
HI-1a1 should not be null and should not be negative.
HI-1a2 should not be negative.
HI-1b should not be null.
HI-1c should not be null and should not be negative.
HI-1d1 should not be null and should not be negative.

Alg Edit Test
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckf186-q2 ne 0)) then (bhckf186-q1 ne 0)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhcka251-q2 gt 0)) then (bhcka251-q1 gt 0)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck8431-q1 ge bhck8431-q2 - 2)
if (bhckb570 gt 100) then (bhck8431 gt 0)
bhck8431 le ((bhckc886 + bhckc888 + bhckc887 +
bhckc387) + 10))
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckc242-q1 + bhckc243-q1) ge (bhckc242-q2 + bhckc243q2)
if bhckb983 gt 0 then (bhckc242 + bhckc243) gt 0
(bhcka530-q1) eq (bhcka530-q2)
if bhck2148 gt 500 then bhcka530 eq 0
bhckc409 le (bhck3230 + bhck3240)
if bhckc409-q2 gt 0 then bhckc409-q1 gt 0
if (bhckf231 + bhckf232 gt 0) then bhckf228 ne null
bhck4010 ne null and bhck4010 ge 0
bhck4059 ge 0 or bhck4059 eq null
bhck4065 ne null
bhck4115 ne null and bhck4115 ge 0
bhckb488 ne null and bhckb488 ge 0

FR Y-9C: EDIT-9 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9030
9030
9030
9030
9030
9030
9030
9030
9030
9040
9050
9050
9050
9050
9050
9060
9060
9070
9080
9090
9090
9090
9090
9090
9090
9090
9100
9100
9110
9110
9110
9110
9110

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HI-1d2
HI-1d3
HI-1e
HI-1f
HI-1g
HI-1h
HI-2a1a
HI-2a1b
HI-2a1c
HI-2a2
HI-2b
HI-2c
HI-2d
HI-2e
HI-2f
HI-3
HI-4
HI-5a
HI-5b
HI-5c
HI-5d1
HI-5d2
HI-5d3
HI-5e
HI-5f
HI-5g
HI-5d4
HI-5d5
HI-5i
HI-5j
HI-5k
HI-5l
HI-5m

MARCH 2007

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

MDRM
B489
4060
4069
4020
4518
4107
A517
A518
6761
4172
4180
4185
4397
4398
4073
4074
4230
4070
4483
A220
C886
C888
C887
B491
B492
B493
C386
C387
8560
8561
B496
B497
4079

Schedule
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI

NOTE section follows edits.
Edit Test
HI-1d2 should not be null and should not be negative.
HI-1d3 should not be null and should not be negative.
HI-1e should not be null and should not be negative.
HI-1f should not be null and should not be negative.
HI-1g should not be null and should not be negative.
HI-1h should not be null and should not be negative.
HI-2a1a should not be null and should not be negative.
HI-2a1b should not be null and should not be negative.
HI-2a1c should not be null and should not be negative.
HI-2a2 should not be negative.
HI-2b should not be null and should not be negative.
HI-2c should not be null and should not be negative.
HI-2d should not be null and should not be negative.
HI-2e should not be null and should not be negative.
HI-2f should not be null and should not be negative.
HI-3 should not be null.
HI-4 should not be null.
HI-5a should not be negative.
HI-5b should not be null and should not be negative.
HI-5c should not be null.
HI-5d1 should not be null.
HI-5d2 should not be null.
HI-5d3 should not be null.
HI-5e should not be null.
HI-5f should not be null.
HI-5g should not be null.
HI-5d4 should not be null and should not be negative.
HI-5d5 should not be null and should not be negative.
HI-5i should not be null.
HI-5j should not be null.
HI-5k should not be null.
HI-5l should not be null.
HI-5m should not be null.

Alg Edit Test
bhckb489 ne null and bhckb489 ge 0
bhck4060 ne null and bhck4060 ge 0
bhck4069 ne null and bhck4069 ge 0
bhck4020 ne null and bhck4020 ge 0
bhck4518 ne null and bhck4518 ge 0
bhck4107 ne null and bhck4107 ge 0
bhcka517 ne null and bhcka517 ge 0
bhcka518 ne null and bhcka518 ge 0
bhck6761 ne null and bhck6761 ge 0
bhck4172 ge 0 or bhck4172 eq null
bhck4180 ne null and bhck4180 ge 0
bhck4185 ne null and bhck4185 ge 0
bhck4397 ne null and bhck4397 ge 0
bhck4398 ne null and bhck4398 ge 0
bhck4073 ne null and bhck4073 ge 0
bhck4074 ne null
bhck4230 ne null
bhck4070 ge 0 or bhck4070 eq null
bhck4483 ne null and bhck4483 ge 0
bhcka220 ne null
bhckc886 ne null
bhckc888 ne null
bhckc887 ne null
bhckb491 ne null
bhckb492 ne null
bhckb493 ne null
bhckc386 ne null and bhckc386 ge 0
bhckc387 ne null and bhckc387 ge 0
bhck8560 ne null
bhck8561 ne null
bhckb496 ne null
bhckb497 ne null
bhck4079 ne null

FR Y-9C: EDIT-10 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9110
9110
9120
9130
9140
9140
9150
9160
9170
9170
9170
9170
9170
9170
9180
9180
9190
9190
9190
9200
9200
9200
9200
9200
9200
9200
9200
9200
9200
9200
9200
9200
9200

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HI-6a
HI-6b
HI-7a
HI-7b
HI-7c1
HI-7c2
HI-7d
HI-7e
HI-10
HI-11
HI-12
HI-13
HI-8
HI-9
HI-Mem1
HI-Mem2
HI-Mem3
HI-Mem4
HI-Mem5
HI-Mem6a
HI-Mem6b
HI-Mem6c
HI-Mem6d
HI-Mem6e
HI-Mem6i
HI-Mem7a
HI-Mem7b
HI-Mem7c
HI-Mem7d
HI-Mem7e
HI-Mem7f
HI-Mem7g
HI-Mem10a

MARCH 2007

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

MDRM
3521
3196
4135
4217
C216
C232
4092
4093
4484
4300
4320
4340
4301
4302
4519
4592
4313
4507
4150
C013
C014
C016
4042
C015
F229
C017
0497
4136
C018
8403
4141
4146
C889

Schedule
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI
HI

NOTE section follows edits.
Edit Test
HI-6a should not be null.
HI-6b should not be null.
HI-7a should not be null and should not be negative.
HI-7b should not be null.
HI-7c1 should not be null and should not be negative.
HI-7c2 should not be null and should not be negative.
HI-7d should not be null.
HI-7e should not be null and should not be negative.
HI-10 should not be null.
HI-11 should not be null.
HI-12 should not be null.
HI-13 should not be null.
HI-8 should not be null.
HI-9 should not be null.
HI-Mem1 should not be null.
HI-Mem2 should not be null.
HI-Mem3 should not be null and should not be negative.
HI-Mem4 should not be null and should not be negative.
HI-Mem5 should not be null and should not be negative.
HI-Mem6a should not be null.
HI-Mem6b should not be null.
HI-Mem6c should not be null.
HI-Mem6d should not be null.
HI-Mem6e should not be null.
HI-Mem6i should not be null.
HI-Mem7a should not be null.
HI-Mem7b should not be null.
HI-Mem7c should not be null.
HI-Mem7d should not be null.
HI-Mem7e should not be null.
HI-Mem7f should not be null.
HI-Mem7g should not be null.
HI-Mem10a should not be null.

Alg Edit Test
bhck3521 ne null
bhck3196 ne null
bhck4135 ne null and bhck4135 ge 0
bhck4217 ne null
bhckc216 ne null and bhckc216 ge 0
bhckc232 ne null and bhckc232 ge 0
bhck4092 ne null
bhck4093 ne null and bhck4093 ge 0
bhck4484 ne null
bhck4300 ne null
bhck4320 ne null
bhck4340 ne null
bhck4301 ne null
bhck4302 ne null
bhck4519 ne null
bhck4592 ne null
bhck4313 ne null and bhck4313 ge 0
bhck4507 ne null and bhck4507 ge 0
bhck4150 ne null and bhck4150 ge 0
bhckc013 ne null
bhckc014 ne null
bhckc016 ne null
bhck4042 ne null
bhckc015 ne null
bhckf229 ne null
bhckc017 ne null
bhck0497 ne null
bhck4136 ne null
bhckc018 ne null
bhck8403 ne null
bhck4141 ne null
bhck4146 ne null
bhckc889 ne null

FR Y-9C: EDIT-11 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
9200
Quality
HI-Mem10b
9205
Quality
HI-Mem11
9205
Quality
HI-Mem12a

Sub
MDRM
Schedule
Series
BHCK
C890
HI
BHCK
A251
HI
BHCK
8431
HI

HI-Mem10b should not be null.
HI-Mem11 should not be null and should not be negative.
HI-Mem12a should not be null and should not be negative.

9205

Quality

HI-Mem12b1

BHCK

C242

HI

HI-Mem12b1 should not be null and should not be negative. bhckc242 ne null and bhckc242 ge 0

9205

Quality

HI-Mem12b2

BHCK

C243

HI

HI-Mem12b2 should not be null and should not be negative. bhckc243 ne null and bhckc243 ge 0

9205

Quality

HI-Mem12c

BHCK

B983

HI

HI-Mem12c should not be null and should not be negative.

bhckb983 ne null and bhckb983 ge 0

9205
9205
9206
5450

Quality
Quality
Quality
Intraseries

HI-Mem13
HI-Mem15
HI-Mem16
HI-A3

BHCK
BHCK
BHCK
BHCK

A530
C409
F228
B508

HI
HI
HI
HI-A

HI-Mem13 should not be null and should not be negative.
HI-Mem15 should not be null and should not be negative.
HI-Mem16 should not be negative.
If HI-A15 (previous December) is greater than zero, and HIA9 (current) equals zero, then HI-A1 (current) or HIA3(current) should equal HI-A15(previous December).

bhcka530 ne null and bhcka530 ge 0
bhckc409 ne null and bhckc409 ge 0
bhckf228 ge 0 or bhckf228 eq null
if (mm-q1 eq 03 and bhct3210-q2 gt 0 and bhck4356-q1 eq
0) then (bhck3217-q1 or bhckb508-q1) eq bhct3210-q2 or if
(mm-q1 eq 06 and bhct3210-q3 gt 0 and bhck4356-q1 eq 0)
then (bhck3217-q1 or bhckb508-q1) eq bhct3210-q3 or if
(mm-q1 eq 09 and bhct3210-q4 gt 0 and bhck4356-q1 eq 0)
then (bhck3217-q1 or bhckb508-q1) eq bhct3210-q4 or if
(mm-q1 eq 12 and bhct3210-q5 gt 0 and bhck4356-q1 eq 0)
then (bhck3217-q1 or bhckb508-q1) eq bhct3210-q5

5455

Intraseries HI-A2

BHCK

B507

HI-A

For June, September, and December, if HI-A2 (previous) is if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
not equal to zero, then HI-A2 (current) should not equal zero. (bhckb507-q2 ne 0) then (bhckb507-q1 ne 0)

5465

Quality

HI-A5b

BHCK

3578

HI-A

5470

Intraseries HI-A5a

BHCK

3577

HI-A

Sum of HI-A5a and HI-A5b should be less than or equal to
HC-23.
For June, September, and December, if HI-A5a, HI-A5b, HIA6a, or HI-A6b (previous) is not equal to zero, then HI-A5a,
HI-A5b, HI-A6a, or HI-A6b (current) should not equal zero.

MARCH 2007

Alg Edit Test
bhckc890 ne null
bhcka251 ne null and bhcka251 ge 0
bhck8431 ne null and bhck8431 ge 0

(bhck3577 + bhck3578) le bhck3283
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck3577-q2 ne 0 or bhck3578-q2 ne 0 or bhck3579-q2 ne
0 or bhck3580-q2 ne 0) then (bhck3577-q1 ne 0 or bhck3578q1 ne 0 or bhck3579-q1 ne 0 or bhck3580-q1 ne 0)

FR Y-9C: EDIT-12 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
5470
Intraseries HI-A5b

Sub
MDRM
Schedule
Series
BHCK
3578
HI-A

5470

Intraseries HI-A6a

BHCK

3579

HI-A

For June, September, and December, if HI-A5a, HI-A5b, HI- if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
A6a, or HI-A6b (previous) is not equal to zero, then HI-A5a, (bhck3577-q2 ne 0 or bhck3578-q2 ne 0 or bhck3579-q2 ne
HI-A5b, HI-A6a, or HI-A6b (current) should not equal zero. 0 or bhck3580-q2 ne 0) then (bhck3577-q1 ne 0 or bhck3578q1 ne 0 or bhck3579-q1 ne 0 or bhck3580-q1 ne 0)

5470

Intraseries HI-A6b

BHCK

3580

HI-A

For June, September, and December, if HI-A5a, HI-A5b, HI- if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
A6a, or HI-A6b (previous) is not equal to zero, then HI-A5a, (bhck3577-q2 ne 0 or bhck3578-q2 ne 0 or bhck3579-q2 ne
HI-A5b, HI-A6a, or HI-A6b (current) should not equal zero. 0 or bhck3580-q2 ne 0) then (bhck3577-q1 ne 0 or bhck3578q1 ne 0 or bhck3579-q1 ne 0 or bhck3580-q1 ne 0)

5475

Quality

BHCK

3580

HI-A

5480

Intraseries HI-A8

BHCK

4783

HI-A

5485

Intraseries HI-A9

BHCK

4356

HI-A

5510

Intraseries HI-A10

BHCK

4598

HI-A

Sum of HI-A6a and HI-A6b should be less than or equal to
the sum of HC-24 and HC-25.
For June, September, and December, if the sum of HI-A7
and HI-A8 (previous) is not equal to zero, then the sum of HIA7 and HI-A8 (current) should not be equal to zero.
For June, September, and December, if HI-A9 (previous) is
not equal to zero, then HI-A9 (current) should not be equal to
zero.
For June, September, and December, if HI-A9 (previous) is
equal to HI-A9 (current), then the current period should be
greater than or equal to the previous period (-2k) for HI-A5a,
HI-A6a, HI-A7, HI-A8, HI-A10, and HI-A11.

HI-A6b

MARCH 2007

Alg Edit Test

For June, September, and December, if HI-A5a, HI-A5b, HI- if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
A6a, or HI-A6b (previous) is not equal to zero, then HI-A5a, (bhck3577-q2 ne 0 or bhck3578-q2 ne 0 or bhck3579-q2 ne
HI-A5b, HI-A6a, or HI-A6b (current) should not equal zero. 0 or bhck3580-q2 ne 0) then (bhck3577-q1 ne 0 or bhck3578q1 ne 0 or bhck3579-q1 ne 0 or bhck3580-q1 ne 0)

(bhck3579 + bhck3580) le (bhck3230 + bhck3240)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
((bhck4782-q2 + bhck4783-q2) ne 0) then ((bhck4782-q1 +
bhck4783-q1) ne 0)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q2 ne 0) then (bhck4356-q1 ne 0)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q2 eq bhck4356-q1)) then (bhck3577-q1 ge
bhck3577-q2 - 2) and (bhck3579-q1 ge bhck3579-q2 - 2) and
(bhck4782-q1 ge bhck4782-q2 - 2) and (bhck4783-q1 ge
bhck4783-q2 - 2) and (bhck4598-q1 ge bhck4598-q2 - 2) and
(bhck4460-q1 ge bhck4460-q2 - 2)

FR Y-9C: EDIT-13 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5510
Intraseries HI-A11

Sub
MDRM
Schedule
Series
BHCK
4460
HI-A

5510

Intraseries HI-A5a

BHCK

3577

5510

Intraseries HI-A6a

BHCK

5510

Intraseries HI-A7

BHCK

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

For June, September, and December, if HI-A9 (previous) is
equal to HI-A9 (current), then the current period should be
greater than or equal to the previous period (-2k) for HI-A5a,
HI-A6a, HI-A7, HI-A8, HI-A10, and HI-A11.

if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q2 eq bhck4356-q1)) then (bhck3577-q1 ge
bhck3577-q2 - 2) and (bhck3579-q1 ge bhck3579-q2 - 2) and
(bhck4782-q1 ge bhck4782-q2 - 2) and (bhck4783-q1 ge
bhck4783-q2 - 2) and (bhck4598-q1 ge bhck4598-q2 - 2) and
(bhck4460-q1 ge bhck4460-q2 - 2)

HI-A

For June, September, and December, if HI-A9 (previous) is
equal to HI-A9 (current), then the current period should be
greater than or equal to the previous period (-2k) for HI-A5a,
HI-A6a, HI-A7, HI-A8, HI-A10, and HI-A11.

if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q2 eq bhck4356-q1)) then (bhck3577-q1 ge
bhck3577-q2 - 2) and (bhck3579-q1 ge bhck3579-q2 - 2) and
(bhck4782-q1 ge bhck4782-q2 - 2) and (bhck4783-q1 ge
bhck4783-q2 - 2) and (bhck4598-q1 ge bhck4598-q2 - 2) and
(bhck4460-q1 ge bhck4460-q2 - 2)

3579

HI-A

For June, September, and December, if HI-A9 (previous) is
equal to HI-A9 (current), then the current period should be
greater than or equal to the previous period (-2k) for HI-A5a,
HI-A6a, HI-A7, HI-A8, HI-A10, and HI-A11.

if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q2 eq bhck4356-q1)) then (bhck3577-q1 ge
bhck3577-q2 - 2) and (bhck3579-q1 ge bhck3579-q2 - 2) and
(bhck4782-q1 ge bhck4782-q2 - 2) and (bhck4783-q1 ge
bhck4783-q2 - 2) and (bhck4598-q1 ge bhck4598-q2 - 2) and
(bhck4460-q1 ge bhck4460-q2 - 2)

4782

HI-A

For June, September, and December, if HI-A9 (previous) is
equal to HI-A9 (current), then the current period should be
greater than or equal to the previous period (-2k) for HI-A5a,
HI-A6a, HI-A7, HI-A8, HI-A10, and HI-A11.

if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q2 eq bhck4356-q1)) then (bhck3577-q1 ge
bhck3577-q2 - 2) and (bhck3579-q1 ge bhck3579-q2 - 2) and
(bhck4782-q1 ge bhck4782-q2 - 2) and (bhck4783-q1 ge
bhck4783-q2 - 2) and (bhck4598-q1 ge bhck4598-q2 - 2) and
(bhck4460-q1 ge bhck4460-q2 - 2)

FR Y-9C: EDIT-14 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5510
Intraseries HI-A8

Sub
MDRM
Schedule
Series
BHCK
4783
HI-A

5530

Intraseries HI-A12

BHCK

B511

HI-A

9210
9210
9210
9210
9210
9210
9210
9210
9220
9220
9230
9240
9240
9250
9250
9250
9250
0001

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Intraseries

HI-A1
HI-A2
HI-A3
HI-A4
HI-A5a
HI-A5b
HI-A6a
HI-A6b
HI-A7
HI-A8
HI-A9
HI-A10
HI-A11
HI-A12
HI-A13
HI-A14
HI-A15
HI-B(I)1aA

BHCK
BHCK
BHCK
BHCT
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCT
BHCK

3217
B507
B508
4340
3577
3578
3579
3580
4782
4783
4356
4598
4460
B511
4591
3581
3210
3582

HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-A
HI-B

0002

Intraseries HI-B(I)1aB

BHCK

3583

HI-B

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

For June, September, and December, if HI-A9 (previous) is
equal to HI-A9 (current), then the current period should be
greater than or equal to the previous period (-2k) for HI-A5a,
HI-A6a, HI-A7, HI-A8, HI-A10, and HI-A11.

if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4356-q2 eq bhck4356-q1)) then (bhck3577-q1 ge
bhck3577-q2 - 2) and (bhck3579-q1 ge bhck3579-q2 - 2) and
(bhck4782-q1 ge bhck4782-q2 - 2) and (bhck4783-q1 ge
bhck4783-q2 - 2) and (bhck4598-q1 ge bhck4598-q2 - 2) and
(bhck4460-q1 ge bhck4460-q2 - 2)

For June, September, and December, if HI-A12 (previous) is
not equal to zero, then HI-A12 (current) should not be equal
to zero.
HI-A1 should not be null.
HI-A2 should not be null.
HI-A3 should not be null.
HI-A4 should not be null.
HI-A5a should not be null.
HI-A5b should not be null.
HI-A6a should not be null.
HI-A6b should not be null.
HI-A7 should not be null and should not be negative.
HI-A8 should not be null and should not be negative.
HI-A9 should not be null.
HI-A10 should not be null and should not be negative.
HI-A11 should not be null and should not be negative.
HI-A12 should not be null.
HI-A13 should not be null.
HI-A14 should not be null.
HI-A15 should not be null.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1aA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1aB.

if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb511-q2 ne 0) then (bhckb511-q1 ne 0)
bhck3217 ne null
bhckb507 ne null
bhckb508 ne null
bhct4340 ne null
bhck3577 ne null
bhck3578 ne null
bhck3579 ne null
bhck3580 ne null
bhck4782 ne null and bhck4782 ge 0
bhck4783 ne null and bhck4783 ge 0
bhck4356 ne null
bhck4598 ne null and bhck4598 ge 0
bhck4460 ne null and bhck4460 ge 0
bhckb511 ne null
bhck4591 ne null
bhck3581 ne null
bhct3210 ne null
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck3582-q1 ge bhck3582-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck3583-q1 ge bhck3583-q2 - 2)

FR Y-9C: EDIT-15 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
0003
Intraseries HI-B(I)1bA

Sub
MDRM
Schedule
Series
BHCK
3584
HI-B

0004

Intraseries HI-B(I)1bB

BHCK

3585

HI-B

0005

Intraseries HI-B(I)1c1A

BHCK

5411

HI-B

0006

Intraseries HI-B(I)1c1B

BHCK

5412

HI-B

0007

Intraseries HI-B(I)1c2aA

BHCK

C234

HI-B

0008

Intraseries HI-B(I)1c2aB

BHCK

C217

HI-B

0009

Intraseries HI-B(I)1c2bA

BHCK

C235

HI-B

0010

Intraseries HI-B(I)1c2bB

BHCK

C218

HI-B

0011

Intraseries HI-B(I)1dA

BHCK

3588

HI-B

0012

Intraseries HI-B(I)1dB

BHCK

3589

HI-B

0013

Intraseries HI-B(I)1eA

BHCK

3590

HI-B

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1bA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1bB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1c1A.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1c1B.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1c2aA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1c2aB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1c2bA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1c2bB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1dA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1dB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1eA.

Alg Edit Test
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck3584-q1 ge bhck3584-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck3585-q1 ge bhck3585-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck5411-q1 ge bhck5411-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck5412-q1 ge bhck5412-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckc234-q1 ge bhckc234-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckc217-q1 ge bhckc217-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckc235-q1 ge bhckc235-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckc218-q1 ge bhckc218-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck3588-q1 ge bhck3588-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck3589-q1 ge bhck3589-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck3590-q1 ge bhck3590-q2 - 2)

FR Y-9C: EDIT-16 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
0014
Intraseries HI-B(I)1eB

Sub
MDRM
Schedule
Series
BHCK
3591
HI-B

0015

Intraseries HI-B(I)1fA

BHCK

B512

HI-B

0016

Intraseries HI-B(I)1fB

BHCK

B513

HI-B

0017

Intraseries HI-B(I)2aA

BHCK

4653

HI-B

0018

Intraseries HI-B(I)2aB

BHCK

4663

HI-B

0019

Intraseries HI-B(I)2bA

BHCK

4654

HI-B

0020

Intraseries HI-B(I)2bB

BHCK

4664

HI-B

0021

Intraseries HI-B(I)3A

BHCK

4655

HI-B

0022

Intraseries HI-B(I)3B

BHCK

4665

HI-B

0023

Intraseries HI-B(I)4aA

BHCK

4645

HI-B

0024

Intraseries HI-B(I)4aB

BHCK

4617

HI-B

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1eB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1fA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)1fB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)2aA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)2aB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)2bA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)2bB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)3A.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)3B.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)4aA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)4aB.

Alg Edit Test
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck3591-q1 ge bhck3591-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb512-q1 ge bhckb512-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb513-q1 ge bhckb513-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4653-q1 ge bhck4653-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4663-q1 ge bhck4663-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4654-q1 ge bhck4654-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4664-q1 ge bhck4664-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4655-q1 ge bhck4655-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4665-q1 ge bhck4665-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4645-q1 ge bhck4645-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4617-q1 ge bhck4617-q2 - 2)

FR Y-9C: EDIT-17 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
0025
Intraseries HI-B(I)4bA

Sub
MDRM
Schedule
Series
BHCK
4646
HI-B

0026

Intraseries HI-B(I)4bB

BHCK

4618

HI-B

0027

Intraseries HI-B(I)5aA

BHCK

B514

HI-B

0028

Intraseries HI-B(I)5aB

BHCK

B515

HI-B

0029

Intraseries HI-B(I)5bA

BHCK

B516

HI-B

0030

Intraseries HI-B(I)5bB

BHCK

B517

HI-B

0031

Intraseries HI-B(I)6A

BHCK

4643

HI-B

0032

Intraseries HI-B(I)6B

BHCK

4627

HI-B

0033

Intraseries HI-B(I)7A

BHCK

4644

HI-B

0034

Intraseries HI-B(I)7B

BHCK

4628

HI-B

0035

Intraseries HI-B(I)8aA

BHCK

F185

HI-B

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)4bA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)4bB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)5aA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)5aB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)5bA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)5bB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)6A.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)6B.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)7A.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)7B.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)8aA.

Alg Edit Test
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4646-q1 ge bhck4646-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4618-q1 ge bhck4618-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb514-q1 ge bhckb514-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb515-q1 ge bhckb515-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb516-q1 ge bhckb516-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb517-q1 ge bhckb517-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4643-q1 ge bhck4643-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4627-q1 ge bhck4627-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4644-q1 ge bhck4644-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4628-q1 ge bhck4628-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckf185-q1 ge bhckf185-q2 - 2)

FR Y-9C: EDIT-18 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
0036
Intraseries HI-B(I)8aB

Sub
MDRM
Schedule
Series
BHCK
F187
HI-B

0037

Intraseries HI-B(I)8bA

BHCK

C880

HI-B

0038

Intraseries HI-B(I)8bB

BHCK

F188

HI-B

0039

Intraseries HI-B(I)Mem1A

BHCK

5409

HI-B

0040

Intraseries HI-B(I)Mem1B

BHCK

5410

HI-B

0041

Intraseries HI-B(I)Mem2A

BHCK

4652

HI-B

0042

Intraseries HI-B(I)Mem2B

BHCK

4662

HI-B

0043

Intraseries HI-B(I)Mem3

BHCK

C388

HI-B

0044

Intraseries HI-B(I)Mem4aA BHCK

C891

HI-B

0045

Intraseries HI-B(I)Mem4aB BHCK

C892

HI-B

0046

Intraseries HI-B(I)Mem4bA BHCK

C893

HI-B

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)8aB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)8bA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)8bB.
For June, September and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)Mem1A.
For June, September and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)Mem1B.
For June, September and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)Mem2A.
For June, September and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)Mem2B.
For June, September and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)Mem1A.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)Mem4aA.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)Mem4aB.
For June, September, and December, the current period
should be greater than or equal to the previous period (minus
$2k) for HI-B(I)Mem4bA.

Alg Edit Test
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckf187-q1 ge bhckf187-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckc880-q1 ge bhckc880-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckf188-q1 ge bhckf188-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck5409-q1 ge bhck5409-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck5410-q1 ge bhck5410-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4652-q1 ge bhck4652-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhck4662-q1 ge bhck4662-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckc388-q1 ge bhckc388-q2 -2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckc891-q1 ge bhckc891-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckc892-q1 ge bhckc892-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckc893-q1 ge bhckc893-q2 - 2)

FR Y-9C: EDIT-19 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Sub
MDRM
Schedule
Check
Series
0047
Intraseries HI-B(I)Mem4bB BHCK
C894
HI-B

0048

Intraseries HI-B(I)Mem5aA BHCK

C895

HI-B

0049

Intraseries HI-B(I)Mem5aB BHCK

C896

HI-B

0050

Intraseries HI-B(I)Mem5bA BHCK

C897

HI-B

0051

Intraseries HI-B(I)Mem5bB BHCK

C898

HI-B

5550

Intraseries HI-B(II)1

BHCK

B522

HI-B

5560

Intraseries HI-B(II)Mem1

BHCK

C435

HI-B

5565

Quality

HI-B(II)Mem3

BHCK

C390

HI-B

5569

Quality

HI-B(II)Mem3

BHCK

C390

HI-B

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

For June, September, and December, the current period
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
should be greater than or equal to the previous period (minus (bhckc894-q1 ge bhckc894-q2 - 2)
$2k) for HI-B(I)Mem4bB.
For June, September, and December, the current period
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
should be greater than or equal to the previous period (minus (bhckc895-q1 ge bhckc895-q2 - 2)
$2k) for HI-B(I)Mem5aA.
For June, September, and December, the current period
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
should be greater than or equal to the previous period (minus (bhckc896-q1 ge bhckc896-q2 - 2)
$2k) for HI-B(I)Mem5aB.
For June, September, and December, the current period
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
should be greater than or equal to the previous period (minus (bhckc897-q1 ge bhckc897-q2 - 2)
$2k) for HI-B(I)Mem5bA.
For June, September, and December, the current period
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
should be greater than or equal to the previous period (minus (bhckc898-q1 ge bhckc898-q2 - 2)
$2k) for HI-B(I)Mem5bB.
If HI-B(II)7 (previous December) is greater than zero, then HI- if (mm-q1 eq 03 and bhct3123-q2 gt 0) then (bhckb522-q1 eq
B(II)1 (current) should equal HI-B(II)7 (previous December). bhct3123-q2) or if (mm-q1 eq 06 and bhct3123-q3 gt 0) then
(bhckb522-q1 eq bhct3123-q3) or if (mm-q1 eq 09 and
bhct3123-q4 gt 0) then (bhckb522-q1 eq bhct3123-q4) or if
(mm-q1 eq 12 and bhct3123-q5 gt 0) then (bhckb522-q1 eq
bhct3123-q5)
If HI-B(II)Mem1 (previous) is greater than zero, then HIif bhckc435-q2 gt 0 then bhckc435-q1 gt 0
B(II)Mem1 (current) should be greater than zero.
Sum of HI-B(II)Mem1 and HI-B(II)Mem3 should be less than (bhckc435 + bhckc390) le bhct3123
or equal to HI-B(II)7.
If the sum of (HC-C6aA, HC-S1C, and HC-S6aC) is greater if (((bhckb538 + bhckb707+bhckb762) gt 500000) or
than $500 million or [the sum of (HC-C6aA and HC-S1C)
((((bhckb538 + bhckb707) / (bhck2122 + bhckb707)) * 100 gt
divided by the sum of (HC-C12A and HC-S1C) is greater
50) and (((bhck2122 + bhckb707) / (bhck2170 + bhckb707))
than 50% and the sum of (HC-C12A and HC-S1C) divided by * 100 gt 50)) then (bhckc388 + bhckc389 + bhckc390) gt 0
the sum of (HC-12 and HC-S1C) is greater than 50%], then
the sum of HI-B(I)Mem3, HI-B(II)Mem2 and HI-B(II)Mem3
should be greater than zero.

FR Y-9C: EDIT-20 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5570
Quality
HI-B(II)Mem4

Sub
MDRM
Schedule
Series
BHCK
C781
HI-B

5571
9260
9260
9260
9260
9260

Quality
Quality
Quality
Quality
Quality
Quality

HI-B(II)Mem4
HI-B(I)1aA
HI-B(I)1aB
HI-B(I)1bA
HI-B(I)1bB
HI-B(I)1c1A

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

C781
3582
3583
3584
3585
5411

9260

Quality

HI-B(I)1c1B

BHCK

9260

Quality

HI-B(I)1c2aA

9260

Quality

9260

NOTE section follows edits.
Edit Test

Alg Edit Test

HI-B
HI-B
HI-B
HI-B
HI-B
HI-B

If HI-B(II)Mem4 is not equal to zero, then the sum of HCCM5a and HC-CM5b should not equal zero.
HI-B(II)Mem4 should be less than or equal to HI-B(II)7.
HI-B(I)1aA should not be null and should not be negative.
HI-B(I)1aB should not be null and should not be negative.
HI-B(I)1bA should not be null and should not be negative.
HI-B(I)1bB should not be null and should not be negative.
HI-B(I)1c1A should not be null and should not be negative.

bhckc781 le bhct3123
bhck3582 ne null and bhck3582 ge 0
bhck3583 ne null and bhck3583 ge 0
bhck3584 ne null and bhck3584 ge 0
bhck3585 ne null and bhck3585 ge 0
bhck5411 ne null and bhck5411 ge 0

5412

HI-B

HI-B(I)1c1B should not be null and should not be negative.

bhck5412 ne null and bhck5412 ge 0

BHCK

C234

HI-B

HI-B(I)1c2aA should not be null and should not be negative. bhckc234 ne null and bhckc234 ge 0

HI-B(I)1c2aB

BHCK

C217

HI-B

HI-B(I)1c2aB should not be null and should not be negative. bhckc217 ne null and bhckc217 ge 0

Quality

HI-B(I)1c2bA

BHCK

C235

HI-B

HI-B(I)1c2bA should not be null and should not be negative. bhckc235 ne null and bhckc235 ge 0

9260

Quality

HI-B(I)1c2bB

BHCK

C218

HI-B

HI-B(I)1c2bB should not be null and should not be negative. bhckc218 ne null and bhckc218 ge 0

9260
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HI-B(I)1dA
HI-B(I)1dB
HI-B(I)1eA
HI-B(I)1eB
HI-B(I)1fA
HI-B(I)1fB
HI-B(I)2aA
HI-B(I)2aB
HI-B(I)2bA
HI-B(I)2bB
HI-B(I)3A
HI-B(I)3B
HI-B(I)4aA
HI-B(I)4aB

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

3588
3589
3590
3591
B512
B513
4653
4663
4654
4664
4655
4665
4645
4617

HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B

HI-B(I)1dA should not be null and should not be negative.
HI-B(I)1dB should not be null and should not be negative.
HI-B(I)1eA should not be null and should not be negative.
HI-B(I)1eA should not be null and should not be negative.
HI-B(I)1fA should not be null and should not be negative.
HI-B(I)1fB should not be null and should not be negative.
HI-B(I)2aA should not be null and should not be negative.
HI-B(I)2aB should not be null and should not be negative.
HI-B(I)2bA should not be null and should not be negative.
HI-B(I)2bB should not be null and should not be negative.
HI-B(I)3A should not be null and should not be negative.
HI-B(I)3B should not be null and should not be negative.
HI-B(I)4aA should not be null and should not be negative.
HI-B(I)4aB should not be null and should not be negative.

MARCH 2007

if bhckc781 ne 0 then (bhckc779 + bhckc780) ne 0

bhck3588 ne null and bhck3588 ge 0
bhck3589 ne null and bhck3589 ge 0
bhck3590 ne null and bhck3590 ge 0
bhck3591 ne null and bhck3591 ge 0
bhckb512 ne null and bhckb512 ge 0
bhckb513 ne null and bhckb513 ge 0
bhck4653 ne null and bhck4653 ge 0
bhck4663 ne null and bhck4663 ge 0
bhck4654 ne null and bhck4654 ge 0
bhck4664 ne null and bhck4664 ge 0
bhck4655 ne null and bhck4655 ge 0
bhck4665 ne null and bhck4665 ge 0
bhck4645 ne null and bhck4645 ge 0
bhck4617 ne null and bhck4617 ge 0

FR Y-9C: EDIT-21 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260
9260

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

9260

Target Item
HI-B(I)4bA
HI-B(I)4bB
HI-B(I)5aA
HI-B(I)5aB
HI-B(I)5bA
HI-B(I)5bB
HI-B(I)6A
HI-B(I)6B
HI-B(I)7A
HI-B(I)7B
HI-B(I)8aA
HI-B(I)8aB
HI-B(I)8bA
HI-B(I)8bB
HI-B(I)9A
HI-B(I)9B
HI-B(I)Mem1A

4646
4618
B514
B515
B516
B517
4643
4627
4644
4628
F185
F187
C880
F188
4635
4605
5409

HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B

HI-B(I)4bA should not be null and should not be negative.
HI-B(I)4bB should not be null and should not be negative.
HI-B(I)5aA should not be null and should not be negative.
HI-B(I)5aB should not be null and should not be negative.
HI-B(I)5bA should not be null and should not be negative.
HI-B(I)5bB should not be null and should not be negative.
HI-B(I)6A should not be null and should not be negative.
HI-B(I)6B should not be null and should not be negative.
HI-B(I)7A should not be null and should not be negative.
HI-B(I)7B should not be null and should not be negative.
HI-B(I)8aA should not be null and should not be negative.
HI-B(I)8aB should not be null and should not be negative.
HI-B(I)8bA should not be null and should not be negative.
HI-B(I)8bB should not be null and should not be negative.
HI-B(I)9A should not be null and should not be negative.
HI-B(I)9B should not be null and should not be negative.
HI-B(I)Mem1A should not be null and should not be negative.

Quality

HI-B(I)Mem1B

BHCK

5410

HI-B

HI-B(I)Mem1B should not be null and should not be negative. bhck5410 ne null and bhck5410 ge 0

9260

Quality

HI-B(I)Mem2A

BHCK

4652

HI-B

HI-B(I)Mem2A should not be null and should not be negative. bhck4652 ne null and bhck4652 ge 0

9260

Quality

HI-B(I)Mem2B

BHCK

4662

HI-B

HI-B(I)Mem2B should not be null and should not be negative. bhck4662 ne null and bhck4662 ge 0

9270
9280

Quality
Quality

HI-B(I)Mem3
BHCK
HI-B(I)Mem4aA BHCK

C388
C891

HI-B
HI-B

9280

Quality

HI-B(I)Mem4aB BHCK

C892

HI-B

9280

Quality

HI-B(I)Mem4bA BHCK

C893

HI-B

9280

Quality

HI-B(I)Mem4bB BHCK

C894

HI-B

HI-B(I)Mem3 should not be negative.
HI-B(I)Mem4aA should not be null and should not be
negative.
HI-B(I)Mem4aB should not be null and should not be
negative.
HI-B(I)Mem4bA should not be null and should not be
negative.
HI-B(I)Mem4bB should not be null and should not be
negative.

MARCH 2007

MDRM

Schedule

NOTE section follows edits.
Edit Test

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

Alg Edit Test
bhck4646 ne null and bhck4646 ge 0
bhck4618 ne null and bhck4618 ge 0
bhckb514 ne null and bhckb514 ge 0
bhckb515 ne null and bhckb515 ge 0
bhckb516 ne null and bhckb516 ge 0
bhckb517 ne null and bhckb517 ge 0
bhck4643 ne null and bhck4643 ge 0
bhck4627 ne null and bhck4627 ge 0
bhck4644 ne null and bhck4644 ge 0
bhck4628 ne null and bhck4628 ge 0
bhckf185 ne null and bhckf185 ge 0
bhckf187 ne null and bhckf187 ge 0
bhckc880 ne null and bhckc880 ge 0
bhckf188 ne null and bhckf188 ge 0
bhck4635 ne null and bhck4635 ge 0
bhck4605 ne null and bhck4605 ge 0
bhck5409 ne null and bhck5409 ge 0

bhckc388 ge 0 or bhckc388 eq null
bhckc891 ne null and bhckc891 ge 0
bhckc892 ne null and bhckc892 ge 0
bhckc893 ne null and bhckc893 ge 0
bhckc894 ne null and bhckc894 ge 0

FR Y-9C: EDIT-22 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Sub
MDRM
Schedule
Check
Series
9280
Quality
HI-B(I)Mem5aA BHCK
C895
HI-B

NOTE section follows edits.
Edit Test

Alg Edit Test

9280

Quality

HI-B(I)Mem5aB BHCK

C896

HI-B

9280

Quality

HI-B(I)Mem5bA BHCK

C897

HI-B

9280

Quality

HI-B(I)Mem5bB BHCK

C898

HI-B

9280
9280
9280
9280
9290
9290
9300
9300

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HI-B(II)1
HI-B(II)2
HI-B(II)3
HI-B(II)4
HI-B(II)5
HI-B(II)6
HI-B(II)7
HI-B(II)Mem1

BHCK
BHCT
BHCK
BHCK
BHCT
BHCK
BHCT
BHCK

B522
4605
C079
5523
4230
C233
3123
C435

HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B
HI-B

HI-B(I)Mem5aA should not be null and should not be
negative.
HI-B(I)Mem5aB should not be null and should not be
negative.
HI-B(I)Mem5bA should not be null and should not be
negative.
HI-B(I)Mem5bB should not be null and should not be
negative.
HI-B(II)1 should not be null and should not be negative.
HI-B(II)2 should not be null and should not be negative.
HI-B(II)3 should not be null and should not be negative.
HI-B(II)4 should not be null and should not be negative.
HI-B(II)5 should not be null.
HI-B(II)6 should not be null.
HI-B(II)7 should not be null and should not be negative.
HI-B(II)Mem1 should not be null and should not be negative.

9310
9310
9320

Quality
Quality
Quality

HI-B(II)Mem2
HI-B(II)Mem3
HI-B(II)Mem4

BHCK
BHCK
BHCK

C389
C390
C781

HI-B
HI-B
HI-B

HI-B(II)Mem2 should not be negative.
bhckc389 ge 0 or bhckc389 eq null
HI-B(II)Mem3 should not be negative.
bhckc390 ge 0 or bhckc390 eq null
HI-B(II)Mem4 should not be null and should not be negative. bhckc781 ne null and bhckc781 ge 0

5574

Quality

NIS-P1b

BHBC

4218

NIS-P

5579
5584
5589

Quality
Quality
Quality

NIS-P2a
NIS-P3
NIS-P5f

BHBC
BHBC
BHBC

4421
4074
B494

NIS-P
NIS-P
NIS-P

5594

Quality

NIS-P7b

BHBC

C216

NIS-P

5599

Quality

NIS-P8

BHBC

4301

NIS-P

5604

Quality

NIS-P12

BHBC

4340

NIS-P

Sum of NIS-P1a and NIS-P1b should be less than or equal to
NIS-P1.
NIS-P2a should be less than or equal to NIS-P2.
NIS-P1 minus NIS-P2 should equal NIS-P3.
Sum of NIS-P5a through NIS-P5f should be less than or
equal to NIS-P5.
Sum of NIS-P7a and NIS-P7b should be less than or equal to
NIS-P7.
Sum of NIS-P3, NIS-P5 and NIS-P6 minus the sum of NISP4 and NIS-P7 should equal NIS-P8.
NIS-P8 minus the sum of NIS-P9 through NIS-P11 should
equal NIS-P12.

MARCH 2007

bhckc895 ne null and bhckc895 ge 0
bhckc896 ne null and bhckc896 ge 0
bhckc897 ne null and bhckc897 ge 0
bhckc898 ne null and bhckc898 ge 0
bhckb522 ne null and bhckb522 ge 0
bhct4605 ne null and bhct4605 ge 0
bhckc079 ne null and bhckc079 ge 0
bhck5523 ne null and bhck5523 ge 0
bhct4230 ne null
bhckc233 ne null
bhct3123 ne null and bhct3123 ge 0
bhckc435 ne null and bhckc435 ge 0

(bhbc4094 + bhbc4218) le bhbc4107
bhbc4421 le bhbc4073
(bhbc4107 - bhbc4073) eq bhbc4074
(bhbc4070 + bhbca220 + bhbcb490 + bhbcb491 + bhbcb493
+ bhbcb494) le bhbc4079
(bhbc4135 + bhbcc216) le bhbc4093
((bhbc4074 + bhbc4079 + bhbc4091) - (bhbc4230 +
bhbc4093)) eq bhbc4301
bhbc4301 - (bhbc4302 + bhbc4484 + bhbc4320) eq
bhbc4340

FR Y-9C: EDIT-23 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9330
9330
9330
9330
9330
9330
9330
9330
9330
9330
9330
9330
5620

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

5621

Target Item
NIS-P1
NIS-P13
NIS-P1a
NIS-P1b
NIS-P2
NIS-P2a
NIS-P5
NIS-P5a
NIS-P5b
NIS-P7
NIS-P7a
NIS-P7b
IN1

Sub
Series
BHBC
BHBC
BHBC
BHBC
BHBC
BHBC
BHBC
BHBC
BHBC
BHBC
BHBC
BHBC
BHCK

4107
4475
4094
4218
4073
4421
4079
4070
A220
4093
4135
C216
5351

Quality

IN1

TEXT

5351

5622

Quality

IN2

BHCK

5352

5623

Quality

IN2

TEXT

5352

5624

Quality

IN3

BHCK

5353

MARCH 2007

MDRM

Schedule
NIS-P
NIS-P
NIS-P
NIS-P
NIS-P
NIS-P
NIS-P
NIS-P
NIS-P
NIS-P
NIS-P
NIS-P
Notes to the
Income
Statement Other
Notes to the
Income
Statement Other
Notes to the
Income
Statement Other
Notes to the
Income
Statement Other
Notes to the
Income
Statement Other

NOTE section follows edits.
Edit Test
NIS-P1 should not be negative.
NIS-P13 should not be negative.
NIS-P1a should not be negative.
NIS-P1b should not be negative.
NIS-P2 should not be negative.
NIS-P2a should not be negative.
NIS-P5 should not be negative.
NIS-P5a should not be negative.
NIS-P5b should not be negative.
NIS-P7 should not be negative.
NIS-P7a should not be negative.
NIS-P7b should not be negative.
If financial data is not equal to null or zero, then text data
should not be null.

Alg Edit Test
bhbc4107 ge 0 or bhbc4107 eq null
bhbc4475 ge 0 or bhbc4475 eq null
bhbc4094 ge 0 or bhbc4094 eq null
bhbc4218 ge 0 or bhbc4218 eq null
bhbc4073 ge 0 or bhbc4073 eq null
bhbc4421 ge 0 or bhbc4421 eq null
bhbc4079 ge 0 or bhbc4079 eq null
bhbc4070 ge 0 or bhbc4070 eq null
bhbca220 ge 0 or bhbca220 eq null
bhbc4093 ge 0 or bhbc4093 eq null
bhbc4135 ge 0 or bhbc4135 eq null
bhbcc216 ge 0 or bhbcc216 eq null
if bhck5351 ne null and bhck5351 ne 0 then text5351 ne null

If text data is not equal to null, then financial data should not if text5351 ne null then bhck5351 ne null and bhck5351 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhck5352 ne null and bhck5352 ne 0 then text5352 ne null

If text data is not equal to null, then financial data should not if text5352 ne null then bhck5352 ne null and bhck5352 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhck5353 ne null and bhck5353 ne 0 then text5353 ne null

FR Y-9C: EDIT-24 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5625
Quality
IN3

5626

Quality

IN4

5627

Quality

IN4

5628

Quality

IN5

5629

Quality

IN5

5630

Quality

IN6

5631

Quality

IN6

5632

Quality

IN7

MARCH 2007

Sub
MDRM
Schedule
Series
TEXT
5353
Notes to the
Income
Statement Other
BHCK
5354
Notes to the
Income
Statement Other
TEXT
5354
Notes to the
Income
Statement Other
BHCK
5355
Notes to the
Income
Statement Other
TEXT
5355
Notes to the
Income
Statement Other
BHCK
B042
Notes to the
Income
Statement Other
TEXT
B042
Notes to the
Income
Statement Other
BHCK
B043
Notes to the
Income
Statement Other

NOTE section follows edits.
Edit Test

Alg Edit Test

If text data is not equal to null, then financial data should not if text5353 ne null then bhck5353 ne null and bhck5353 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhck5354 ne null and bhck5354 ne 0 then text5354 ne null

If text data is not equal to null, then financial data should not if text5354 ne null then bhck5354 ne null and bhck5354 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhck5355 ne null and bhck5355 ne 0 then text5355 ne null

If text data is not equal to null, then financial data should not if text5355 ne null then bhck5355 ne null and bhck5355 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb042 ne null and bhckb042 ne 0 then textb042 ne null

If text data is not equal to null, then financial data should not if textb042 ne null then bhckb042 ne null and bhckb042 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb043 ne null and bhckb043 ne 0 then textb043 ne null

FR Y-9C: EDIT-25 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5633
Quality
IN7

5634

Quality

IN8

5635

Quality

IN8

5636

Quality

IN9

5637

Quality

IN9

5638

Quality

IN10

5639

Quality

IN10

5640

Quality

IN11

MARCH 2007

Sub
MDRM
Schedule
Series
TEXT
B043
Notes to the
Income
Statement Other
BHCK
B044
Notes to the
Income
Statement Other
TEXT
B044
Notes to the
Income
Statement Other
BHCK
B045
Notes to the
Income
Statement Other
TEXT
B045
Notes to the
Income
Statement Other
BHCK
B046
Notes to the
Income
Statement Other
TEXT
B046
Notes to the
Income
Statement Other
BHCK
B047
Notes to the
Income
Statement Other

NOTE section follows edits.
Edit Test

Alg Edit Test

If text data is not equal to null, then financial data should not if textb043 ne null then bhckb043 ne null and bhckb043 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb044 ne null and bhckb044 ne 0 then textb044 ne null

If text data is not equal to null, then financial data should not if textb044 ne null then bhckb044 ne null and bhckb044 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb045 ne null and bhckb045 ne 0 then textb045 ne null

If text data is not equal to null, then financial data should not if textb045 ne null then bhckb045 ne null and bhckb045 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb046 ne null and bhckb046 ne 0 then textb046 ne null

If text data is not equal to null, then financial data should not if textb046 ne null then bhckb046 ne null and bhckb046 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb047 ne null and bhckb047 ne 0 then textb047 ne null

FR Y-9C: EDIT-26 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5641
Quality
IN11

5642

Quality

IN12

5643

Quality

IN12

5644

Quality

IN13

5645

Quality

IN13

5646

Quality

IN14

5647

Quality

IN14

5648

Quality

IN15

MARCH 2007

Sub
MDRM
Schedule
Series
TEXT
B047
Notes to the
Income
Statement Other
BHCK
B048
Notes to the
Income
Statement Other
TEXT
B048
Notes to the
Income
Statement Other
BHCK
B049
Notes to the
Income
Statement Other
TEXT
B049
Notes to the
Income
Statement Other
BHCK
B050
Notes to the
Income
Statement Other
TEXT
B050
Notes to the
Income
Statement Other
BHCK
B051
Notes to the
Income
Statement Other

NOTE section follows edits.
Edit Test

Alg Edit Test

If text data is not equal to null, then financial data should not if textb047 ne null then bhckb047 ne null and bhckb047 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb048 ne null and bhckb048 ne 0 then textb048 ne null

If text data is not equal to null, then financial data should not if textb048 ne null then bhckb048 ne null and bhckb048 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb049 ne null and bhckb049 ne 0 then textb049 ne null

If text data is not equal to null, then financial data should not if textb049 ne null then bhckb049 ne null and bhckb049 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb050 ne null and bhckb050 ne 0 then textb050 ne null

If text data is not equal to null, then financial data should not if textb050 ne null then bhckb050 ne null and bhckb050 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb051 ne null and bhckb051 ne 0 then textb051 ne null

FR Y-9C: EDIT-27 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5649
Quality
IN15

5650

Quality

IN16

5651

Quality

IN16

5652

Quality

IN17

5653

Quality

IN17

5654

Quality

IN18

5655

Quality

IN18

5656

Quality

IN19

MARCH 2007

Sub
MDRM
Schedule
Series
TEXT
B051
Notes to the
Income
Statement Other
BHCK
B052
Notes to the
Income
Statement Other
TEXT
B052
Notes to the
Income
Statement Other
BHCK
B053
Notes to the
Income
Statement Other
TEXT
B053
Notes to the
Income
Statement Other
BHCK
B054
Notes to the
Income
Statement Other
TEXT
B054
Notes to the
Income
Statement Other
BHCK
B055
Notes to the
Income
Statement Other

NOTE section follows edits.
Edit Test

Alg Edit Test

If text data is not equal to null, then financial data should not if textb051 ne null then bhckb051 ne null and bhckb051 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb052 ne null and bhckb052 ne 0 then textb052 ne null

If text data is not equal to null, then financial data should not if textb052 ne null then bhckb052 ne null and bhckb052 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb053 ne null and bhckb053 ne 0 then textb053 ne null

If text data is not equal to null, then financial data should not if textb053 ne null then bhckb053 ne null and bhckb053 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb054 ne null and bhckb054 ne 0 then textb054 ne null

If text data is not equal to null, then financial data should not if textb054 ne null then bhckb054 ne null and bhckb054 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb055 ne null and bhckb055 ne 0 then textb055 ne null

FR Y-9C: EDIT-28 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5657
Quality
IN19

Sub
MDRM
Schedule
Series
TEXT
B055
Notes to the
Income
Statement Other
BHCK
B056
Notes to the
Income
Statement Other
TEXT
B056
Notes to the
Income
Statement Other
BHCK
5369
HC

5658

Quality

IN20

5659

Quality

IN20

5705

Quality

HC-4a

5710

Intraseries HC-4a

BHCK

5369

HC

5715
5720

Quality
HC-6
Intraseries HC-8

BHCK
BHCK

2145
2130

HC
HC

5725

Intraseries HC-10a

BHCK

3163

HC

5727

Intraseries HC-10a

BHCK

3163

HC

5728

Intraseries HC-10a

BHCK

3163

HC

5735

Intraseries HC-10b

BHCK

0426

HC

5745
5750

Intraseries HC-12
Quality
HC-13b2

BHCK
BHFN

2170
6636

HC
HC

5765

Quality

BHCK

4062

HC

HC-19a

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If text data is not equal to null, then financial data should not if textb055 ne null then bhckb055 ne null and bhckb055 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
should not be null.

if bhckb056 ne null and bhckb056 ne 0 then textb056 ne null

If text data is not equal to null, then financial data should not if textb056 ne null then bhckb056 ne null and bhckb056 ne 0
equal null or zero.
Sum of HC-P4a and HC-P4b should be less than or equal to
HC-4a.
If HC-4a (previous) is greater than $5 million, then HC4a(current) should be greater than zero.
HC-6 should be greater than zero.
If HC-8 (previous) is not equal to zero, then HC-8 (current)
should not equal zero.
If HC-10a (previous) is greater than zero, then HC-10a
(current) should be greater than zero.
For March, HI-7c1 should be less than or equal to HC-10a
(previous). (+$10k)
For June, September, and December, HI-7c1 (current minus
previous) should be less than or equal to HC-10a (previous).
(+$10k)
If HC-10b (previous) is greater than zero, then HC-10b
(current) should be greater than zero.
HC-12 (current) should not equal HC-12 (previous).
If HI-2a2 is greater than $10k, then HC-13b2 should be
greater than zero.
For March, if HI-2d is greater than $10k, then HC-19a should
be greater than zero.

(bhckf072 + bhckf073) le bhck5369
if bhck5369-q2 gt 5000, then bhck5369-q1 gt 0
bhck2145 gt 0
if bhck2130-q2 ne 0 then bhck2130-q1 ne 0
if bhck3163-q2 gt 0 then bhck3163-q1 gt 0
if (mm-q1 eq 03) then (bhckc216-q1 le bhck3163-q2 + 10)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
((bhckc216-q1 - bhckc216-q2) le bhck3163-q2 + 10)
if bhck0426-q2 gt 0 then bhck0426-q1 gt 0
bhck2170-q1 ne bhck2170-q2
if bhck4172 gt 10 then bhfn6636 gt 0
if (mm-q1 eq 03) and (bhck4397 gt 10) then bhck4062 gt 0

FR Y-9C: EDIT-29 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5775
Intraseries HC-19a

Sub
MDRM
Schedule
Series
BHCK
4062
HC

5778

Quality

BHCK

C699

HC

5780

Intraseries HC-22

BHCK

3000

HC

5781
5782

Quality
HC-23
Intraseries HC-23

BHCK
BHCK

3283
3283

HC
HC

5783

Intraseries HC-24

BHCK

3230

HC

5784

Quality

BHCK

3240

HC

5786

Intraseries HC-26b

BHCK

B530

HC

5787

Intraseries HC-26b

BHCK

B530

HC

5792
5797

Quality
HC-27
Intraseries HC-27

BHCK
BHCK

A130
A130

HC
HC

5798

Intraseries HC-Mem1

BHCK

C884

HC

5799

Quality

TEXT

C703

HC

HC-19b

HC-25

HC-Mem2a(1)

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

For June, September and December, If HI-2d (current minus if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
previous) is greater than $10k, then HC-19a (current) should (bhck4397-q1 - bhck4397-q2) gt 10 then bhck4062-q1 gt 0
be greater than zero.
If HC-R6b is greater than zero, then HC-19b should be
if bhckc502 gt 0 then bhckc699 gt 0
greater than zero.
If HC-22 (previous) is greater than zero, then HC-22 (current) if bhck3000-q2 gt 0 then bhck3000-q1 gt 0
should be greater than zero.
IF HC-23 equals zero, then HI-A10 should equal zero.
if bhck3283 eq 0 then bhck4598 eq 0
If HC-23 (previous) is greater than zero, then HC-23 (current) if bhck3283-q2 gt 0 then bhck3283-q1 gt 0
should be greater than zero.
If HC-24(previous) is greater than zero, then HC-24(current) if bhck3230-q2 gt 0 then bhck3230-q1 gt 0
should be greater than zero.
If HI-A11 is greater than zero, then the sum of HC-24 and HC- if bhck4460 gt 0 then (bhck3230 + bhck3240) gt 0
25 should be greater than zero.
For March, if HI-A9 (current) is equal to zero, then HC-26b if (mm-q1 eq 03 and bhck4356 eq 0) then ((bhckb530-q1(current minus previous) should equal HI-A12(current) (+/- bhckb530-q2) ge bhckb511-q1-10) and ((bhckb530-q110k).
bhckb530-q2) le bhckb511-q1+10))
For June, September, and December, if HI-A9 (current) is
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
equal to HI-A9 (previous), then HC-26b (current minus
(bhck4356-q1 eq bhck4356-q2) then (bhckb530-q1 previous) should equal HI-A12 (current minus previous) +/- bhckb530-q2) ge (bhckb511-q1 - bhckb511-q2 -10) and
10k.
(bhckb530-q1 - bhckb530-q2) le (bhckb511-q1 - bhckb511q2 +10)
HC-27 should be less than or equal to zero.
bhcka130 le 0
If HC-27 (previous) does not equal zero, then HC-27
if bhcka130-q2 ne 0 then bhcka130-q1 ne 0
(current) should not equal zero.
For December, if HC-Mem1 (previous December) is equal to if (mm-q1 eq 12 and (bhckc884-q5 eq 1)) then (bhckc884-q1
"1" (yes), then HC-Mem1 (current) should be equal "1" (yes). eq 1)
If HC-Mem2a(1) is not null then HC-Mem2a(2), HCMem2a(3), HC-Mem2a(4), HC-Mem2b(1), and HCMem2b(2) should not be null.

if (textc703 ne null) then (textc708 ne null and textc714 ne
null and textc715 ne null and textc704 ne null and textc705
ne null)

FR Y-9C: EDIT-30 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5801
Quality
HC-Mem2a(2)

Sub
MDRM
Schedule
Series
TEXT
C708
HC

5802

Quality

HC-Mem2a(3)

TEXT

C714

HC

5803

Quality

HC-Mem2a(4)

TEXT

C715

HC

5804

Quality

HC-Mem2b(1)

TEXT

C704

HC

5806

Quality

HC-Mem2b(2)

TEXT

C705

HC

9340
9340
9340
9340
9340
9340
9340
9340
9340
9340
9340
9340
9340
9340
9350
9360
9360
9360

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-1a
HC-1b1
HC-1b2
HC-2a
HC-2b
HC-3a
HC-3b
HC-4a
HC-4b
HC-4c
HC-4d
HC-5
HC-6
HC-7
HC-8
HC-10a
HC-10b
HC-11

BHCK
BHCK
BHCK
BHCK
BHCK
BHDM
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

0081
0395
0397
1754
1773
B987
B989
5369
B528
3123
B529
3545
2145
2150
2130
3163
0426
2160

HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC

MARCH 2007

NOTE section follows edits.
Edit Test
If HC-Mem2a(2) is not null then HC-Mem2a(1), HCMem2a(3), HC-Mem2a(4), HC-Mem2b(1), and HCMem2b(2) should not be null.
If HC-Mem2a(3) is not null then HC-Mem2a(1), HCMem2a(2), HC-Mem2a(4), HC-Mem2b(1), and HCMem2b(2) should not be null.
If HC-Mem2a(4) is not null then HC-Mem2a(1), HCMem2a(2), HC-Mem2a(3), HC-Mem2b(1), and HCMem2b(2) should not be null.
If HC-Mem2b(1) is not null then HC-Mem2a(1), HCMem2a(2), HC-Mem2a(3), HC-Mem2a(4), and HCMem2b(2) should not be null.
If HC-Mem2b(2) is not null then HC-Mem2a(1), HCMem2a(2), HC-Mem2a(3), HC-Mem2a(4), and HCMem2b(1) should not be null.
HC-1a should not be null and should not be negative.
HC-1b1 should not be null and should not be negative.
HC-1b2 should not be null and should not be negative.
HC-2a should not be null and should not be negative.
HC-2b should not be null and should not be negative.
HC-3a should not be null and should not be negative.
HC-3b should not be null and should not be negative.
HC-4a should not be null and should not be negative.
HC-4b should not be null and should not be negative.
HC-4c should not be null and should not be negative.
HC-4d should not be null and should not be negative.
HC-5 should not be null and should not be negative.
HC-6 should not be null and should not be negative.
HC-7 should not be null and should not be negative.
HC-8 should not be null.
HC-10a should not be null and should not be negative.
HC-10b should not be null and should not be negative.
HC-11 should not be null and should not be negative.

Alg Edit Test
if (textc708 ne null) then (textc703 ne null and textc714 ne
null and textc715 ne null and textc704 ne null and textc705
ne null)
if (textc714 ne null) then (textc703 ne null and textc708 ne
null and textc715 ne null and textc704 ne null and textc705
ne null)
if (textc715 ne null) then (textc703 ne null and textc708 ne
null and textc714 ne null and textc704 ne null and textc705
ne null)
if (textc704 ne null) then (textc703 ne null and textc708 ne
null and textc714 ne null and textc715 ne null and textc705
ne null)
if (textc705 ne null) then (textc703 ne null and textc708 ne
null and textc714 ne null and textc715 ne null and textc704
ne null)
bhck0081 ne null and bhck0081 ge 0
bhck0395 ne null and bhck0395 ge 0
bhck0397 ne null and bhck0397 ge 0
bhck1754 ne null and bhck1754 ge 0
bhck1773 ne null and bhck1773 ge 0
bhdmb987 ne null and bhdmb987 ge 0
bhckb989 ne null and bhckb989 ge 0
bhck5369 ne null and bhck5369 ge 0
bhckb528 ne null and bhckb528 ge 0
bhck3123 ne null and bhck3123 ge 0
bhckb529 ne null and bhckb529 ge 0
bhck3545 ne null and bhck3545 ge 0
bhck2145 ne null and bhck2145 ge 0
bhck2150 ne null and bhck2150 ge 0
bhck2130 ne null
bhck3163 ne null and bhck3163 ge 0
bhck0426 ne null and bhck0426 ge 0
bhck2160 ne null and bhck2160 ge 0

FR Y-9C: EDIT-31 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9360
9360
9360
9370
9370
9380
9380
9380
9380
9380
9380
9380
9380
9380
9380
9380
9380
9390
9390
9390
9390
9400
5807

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

5808

Target Item
HC-12
HC-13a1
HC-13a2
HC-13b1
HC-13b2
HC-14a
HC-14b
HC-15
HC-16
HC-19a
HC-19b
HC-20
HC-21
HC-22
HC-23
HC-24
HC-25
HC-26a
HC-26b
HC-27
HC-28
HC-29
HC-B1B

Sub
Series
BHCK
BHDM
BHDM
BHFN
BHFN
BHDM
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

2170
6631
6636
6631
6636
B993
B995
3548
3190
4062
C699
2750
2948
3000
3283
3230
3240
3247
B530
A130
3210
3300
0213

HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC
HC-B

Quality

HC-B1D

BHCK

1287

HC-B

5810

Quality

HC-B2aB

BHCK

1290

HC-B

5813

Quality

HC-B2aD

BHCK

1293

HC-B

MARCH 2007

MDRM

Schedule

NOTE section follows edits.
Edit Test

Alg Edit Test

HC-12 should not be null and should not be negative.
HC-13a1 should not be null and should not be negative.
HC-13a2 should not be null and should not be negative.
HC-13b1 should not be negative.
HC-13b2 should not be negative.
HC-14a should not be null and should not be negative.
HC-14b should not be null and should not be negative.
HC-15 should not be null and should not be egative.
HC-16 should not be null and should not be negative.
HC-19a should not be null and should not be negative.
HC-19b should not be null and should not be negative.
HC-20 should not be null and should not be negative.
HC-21 should not be null and should not be negative.
HC-22 should not be null and should not be negative.
HC-23 should not be null and should not be negative.
HC-24 should not be null and should not be negative.
HC-25 should not be null and should not be negative.
HC-26a should not be null.
HC-26b should not be null.
HC-27 should not be null.
HC-28 should not be null.
HC-29 should not be null and should not be negative.
If HC-B1A is greater than zero, then HC-B1B divided by HCB1A should not exceed tolerance of 75% - 150%.
If HC-B1C is greater than zero, then HC-B1D divided by HCB1C should not exceed tolerance of 75% - 150%.
If HC-B2aA is greater than zero, then HC-B2aB divided by
HC-B2aA should not exceed tolerance of 75% - 150%.

bhck2170 ne null and bhck2170 ge 0
bhdm6631 ne null and bhdm6631 ge 0
bhdm6636 ne null and bhdm6636 ge 0
bhfn6631 ge 0 or bhfn6631 eq null
bhfn6636 ge 0 or bhfn6636 eq null
bhdmb993 ne null and bhdmb993 ge 0
bhckb995 ne null and bhckb995 ge 0
bhck3548 ne null and bhck3548 ge 0
bhck3190 ne null and bhck3190 ge 0
bhck4062 ne null and bhck4062 ge 0
bhckc699 ne null and bhckc699 ge 0
bhck2750 ne null and bhck2750 ge 0
bhck2948 ne null and bhck2948 ge 0
bhck3000 ne null and bhck3000 ge 0
bhck3283 ne null and bhck3283 ge 0
bhck3230 ne null and bhck3230 ge 0
bhck3240 ne null and bhck3240 ge 0
bhck3247 ne null
bhckb530 ne null
bhcka130 ne null
bhck3210 ne null
bhck3300 ne null and bhck3300 ge 0
if bhck0211 gt 0 then ((bhck0213/bhck0211)*100) ge 75 and
((bhck0213/bhck0211)*100) le 150
if bhck1286 gt 0 then ((bhck1287/bhck1286)*100) ge 75 and
((bhck1287/bhck1286)*100) le 150
if bhck1289 gt 0 then ((bhck1290/bhck1289)*100) ge 75 and
((bhck1290/bhck1289)*100) le 150

If HC-B2aC is greater than zero, then HC-B2aD divided by
HC-B2aC should not exceed tolerance of 75% - 150%.

if bhck1291 gt 0 then ((bhck1293/bhck1291)*100) ge 75 and
((bhck1293/bhck1291)*100) le 150

FR Y-9C: EDIT-32 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5815
Quality
HC-B2bB

Sub
MDRM
Schedule
Series
BHCK
1295
HC-B

5817

Quality

HC-B2bD

BHCK

1298

5820

Quality

HC-B3B

BHCK

5823

Quality

HC-B3D

5825

Quality

5827

NOTE section follows edits.
Edit Test

Alg Edit Test

If HC-B2bA is greater than zero, then HC-B2bB divided by
HC-B2bA should not exceed tolerance of 75% - 150%.

if bhck1294 gt 0 then ((bhck1295/bhck1294)*100) ge 75 and
((bhck1295/bhck1294)*100) le 150

HC-B

If HC-B2bC is greater than zero, then HC-B2bD divided by
HC-B2bC should not exceed tolerance of 75% - 150%.

if bhck1297 gt 0 then ((bhck1298/bhck1297)*100) ge 75 and
((bhck1298/bhck1297)*100) le 150

8497

HC-B

BHCK

8499

HC-B

HC-B4a1B

BHCK

1699

HC-B

If HC-B3A is greater than zero, then HC-B3B divided by HCB3A should not exceed tolerance of 75% - 150%.
If HC-B3C is greater than zero, then HC-B3D divided by HCB3C should not exceed tolerance of 75% - 150%.
If HC-B4a1A is greater than zero, then HC-B4a1B divided by
HC-B4a1A should not exceed tolerance of 75% - 150%.

if bhck8496 gt 0 then ((bhck8497/bhck8496)*100) ge 75 and
((bhck8497/bhck8496)*100) le 150
if bhck8498 gt 0 then ((bhck8499/bhck8498)*100) ge 75 and
((bhck8499/bhck8498)*100) le 150
if bhck1698 gt 0 then ((bhck1699/bhck1698)*100) ge 75 and
((bhck1699/bhck1698)*100) le 150

Quality

HC-B4a1D

BHCK

1702

HC-B

If HC-B4a1C is greater than zero, then HC-B4a1D divided by if bhck1701 gt 0 then ((bhck1702/bhck1701)*100) ge 75 and
HC-B4a1C should not exceed tolerance of 75% - 150%.
((bhck1702/bhck1701)*100) le 150

5830

Quality

HC-B4a2B

BHCK

1705

HC-B

If HC-B4a2A is greater than zero, then HC-B4a2B divided by if bhck1703 gt 0 then ((bhck1705/bhck1703)*100) ge 75 and
HC-B4a2A should not exceed tolerance of 75% - 150%.
((bhck1705/bhck1703)*100) le 150

5833

Quality

HC-B4a2D

BHCK

1707

HC-B

If HC-B4a2C is greater than zero, then HC-B4a2D divided by if bhck1706 gt 0 then ((bhck1707/bhck1706)*100) ge 75 and
HC-B4a2C should not exceed tolerance of 75% - 150%.
((bhck1707/bhck1706)*100) le 150

5835

Quality

HC-B4a3B

BHCK

1710

HC-B

If HC-B4a3A is greater than zero, then HC-B4a3B divided by if bhck1709 gt 0 then ((bhck1710/bhck1709)*100) ge 75 and
HC-B4a3A should not exceed tolerance of 75% - 150%.
((bhck1710/bhck1709)*100) le 150

5837

Quality

HC-B4a3D

BHCK

1713

HC-B

If HC-B4a3C is greater than zero, then HC-B4a3D divided by if bhck1711 gt 0 then ((bhck1713/bhck1711)*100) ge 75 and
HC-4a3C should not exceed tolerance of 75% - 150%.
((bhck1713/bhck1711)*100) le 150

5840

Quality

HC-B4b1B

BHCK

1715

HC-B

If HC-B4b1A is greater than zero, then HC-B4b1B divided by if bhck1714 gt 0 then ((bhck1715/bhck1714)*100) ge 75 and
HC-B4b1A should not exceed tolerance of 75% - 150%.
((bhck1715/bhck1714)*100) le 150

MARCH 2007

FR Y-9C: EDIT-33 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
5843
Quality
HC-B4b1D

Sub
MDRM
Schedule
Series
BHCK
1717
HC-B

5845

Quality

HC-B4b2B

BHCK

1719

HC-B

If HC-B4b2A is greater than zero, then HC-B4b2B divided by if bhck1718 gt 0 then ((bhck1719/bhck1718)*100) ge 75 and
HC-B4b2A should not exceed tolerance of 75% - 150%.
((bhck1719/bhck1718)*100) le 150

5847

Quality

HC-B4b2D

BHCK

1732

HC-B

If HC-B4b2C is greater than zero, then HC-B4b2D divided by if bhck1731 gt 0 then ((bhck1732/bhck1731)*100) ge 75 and
HC-B4b2C should not exceed tolerance of 75% - 150%.
((bhck1732/bhck1731)*100) le 150

5850

Quality

HC-B4b3B

BHCK

1734

HC-B

If HC-B4b3A is greater than zero, then HC-B4b3B divided by if bhck1733 gt 0 then ((bhck1734/bhck1733)*100) ge 75 and
HC-B4b3A should not exceed tolerance of 75% - 150%.
((bhck1734/bhck1733)*100) le 150

5853

Quality

HC-B4b3D

BHCK

1736

HC-B

If HC-B4b3C is greater than zero, then HC-B4b3D divided by if bhck1735 gt 0 then ((bhck1736/bhck1735)*100) ge 75 and
HC-B4b3C should not exceed tolerance of 75% - 150%.
((bhck1736/bhck1735)*100) le 150

5857

Intraseries HC-B5A

BHCK

C026

HC-B

If HC-12 (previous June) is greater than $1 billion, then HC- 1. if (mm-q1 eq 03) and (bhck2170-q4 gt 1000000) then
B5A should equal sum of HC-BM5aA through HC-BM5fA.
bhckc026 eq (bhckb838 + bhckb842 + bhckb846 + bhckb850
+ bhckb854 + bhckb858); 2. if (mm-q1 eq 06) and (bhck2170q5 gt 1000000) then bhckc026 eq (bhckb838 + bhckb842 +
bhckb846 + bhckb850 + bhckb854 + bhckb858); 3. if (mm-q1
eq 09) and (bhck2170-q6 gt 1000000) then bhckc026 eq
(bhckb838 + bhckb842 + bhckb846 + bhckb850 + bhckb854
+ bhckb858); 4. if (mm-q1 eq 12) and (bhck2170-q7 gt
1000000) then bhckc026 eq (bhckb838 + bhckb842 +
bhckb846 + bhckb850 + bhckb854 + bhckb858)

MARCH 2007

Alg Edit Test

If HC-B4b1C is greater than zero, then HC-B4b1D divided by if bhck1716 gt 0 then ((bhck1717/bhck1716)*100) ge 75 and
HC-B4b1C should not exceed tolerance of 75% - 150%.
((bhck1717/bhck1716)*100) le 150

FR Y-9C: EDIT-34 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5859
Intraseries HC-B5B

Sub
MDRM
Schedule
Series
BHCK
C988
HC-B

5861

Quality

HC-B5B

BHCK

C988

HC-B

5866

Quality

HC-B5D

BHCK

C027

HC-B

5868

Intraseries HC-B5C

BHCK

C989

HC-B

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If HC-12 (previous June) is greater than $1 billion, then HC- 1. if (mm-q1 eq 03) and (bhck2170-q4 gt 1000000) then
B5B should equal sum of HC-BM5aB through HC-BM5fB.
bhckc988 eq (bhckb839 + bhckb843 + bhckb847 + bhckb851
+ bhckb855 + bhckb859); 2. if (mm-q1 eq 06) and (bhck2170q5 gt 1000000) then bhckc988 eq (bhckb839 + bhckb843 +
bhckb847 + bhckb851 + bhckb855 + bhckb859); 3. if (mm-q1
eq 09) and (bhck2170-q6 gt 1000000) then bhckc988 eq
(bhckb839 + bhckb843 + bhckb847 + bhckb851 + bhckb855
+ bhckb859); 4. if (mm-q1 eq 12) and (bhck2170-q7 gt
1000000) then bhckc988 eq (bhckb839 + bhckb843 +
bhckb847 + bhckb851 + bhckb855 + bhckb859)
If HC-B5A is greater than zero, then HC-B5B divided by HCB5A should not exceed tolerance of 75% - 150%.
If HC-B5C is greater than zero, then HC-B5D divided by HCB5C should not exceed tolerance of 75% - 150%.
If HC-12 (previous June) is greater than $1 billion, then HCB5C should equal sum of HC-BM5aC through HC-BM5fC.

if (bhckc026 gt 0) then ((bhckc988/bhckc026)*100) ge 75
and ((bhckc988/bhckc026)*100) le 150
if (bhckc989 gt 0) then ((bhckc027/bhckc989)*100) ge 75
and ((bhckc027/bhckc989)*100) le 150
1. if (mm-q1 eq 03) and (bhck2170-q4 gt 1000000) then
bhckc989 eq (bhckb840 + bhckb844 + bhckb848 + bhckb852
+ bhckb856 + bhckb860); 2. if (mm-q1 eq 06) and (bhck2170q5 gt 1000000) then bhckc989 eq (bhckb840 + bhckb844 +
bhckb848 + bhckb852 + bhckb856 + bhckb860); 3. if (mm-q1
eq 09) and (bhck2170-q6 gt 1000000) then bhckc989 eq
(bhckb840 + bhckb844 + bhckb848 + bhckb852 + bhckb856
+ bhckb860); 4. if (mm-q1 eq 12) and (bhck2170-q7 gt
1000000) then bhckc989 eq (bhckb840 + bhckb844 +
bhckb848 + bhckb852 + bhckb856 + bhckb860);

FR Y-9C: EDIT-35 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
5870
Intraseries HC-B5D

Sub
MDRM
Schedule
Series
BHCK
C027
HC-B

5885

Quality

HC-B6aB

BHCK

1738

HC-B

If HC-B6aA is greater than zero, then HC-B6aB divided by
HC-B6aA should not exceed tolerance of 75% - 150%.

if bhck1737 gt 0 then ((bhck1738/bhck1737)*100) ge 75 and
((bhck1738/bhck1737)*100) le 150

5887

Quality

HC-B6aD

BHCK

1741

HC-B

If HC-B6aC is greater than zero, then HC-B6aD divided by
HC-B6aC should not exceed tolerance of 75% - 150%.

if bhck1739 gt 0 then ((bhck1741/bhck1739)*100) ge 75 and
((bhck1741/bhck1739)*100) le 150

5890

Quality

HC-B6bB

BHCK

1743

HC-B

If HC-B6bA is greater than zero, then HC-B6bB divided by
HC-B6bA should not exceed tolerance of 75% - 150%.

if bhck1742 gt 0 then ((bhck1743/bhck1742)*100) ge 75 and
((bhck1743/bhck1742)*100) le 150

5892

Quality

HC-B6bD

BHCK

1746

HC-B

If HC-B6bC is greater than zero, then HC-B6bD divided by
HC-B6bC should not exceed tolerance of 75% - 150%.

if bhck1744 gt 0 then ((bhck1746/bhck1744)*100) ge 75 and
((bhck1746/bhck1744)*100) le 150

5893

Quality

HC-B7D

BHCK

A511

HC-B

if bhcka510 gt 0 then bhcka511 gt 0

5894

Intraseries HC-BM1

BHCK

0416

HC-B

If HC-B7C is greater than zero, then HC-B7D should be
greater than zero.
If HC-BM1 (previous) is greater than $1 million, then HCBM1 (current) should be greater than zero.

MARCH 2007

Alg Edit Test

If HC-12 (previous June) is greater than $1 billion, then HC- 1. if (mm-q1 eq 03) and (bhck2170-q4 gt 1000000) then
B5D should equal sum of HC-BM5aD through HC-BM5fD.
bhckc027 eq (bhckb841 + bhckb845 + bhckb849 + bhckb853
+ bhckb857 + bhckb861); 2. if (mm-q1 eq 06) and (bhck2170q5 gt 1000000) then bhckc027 eq (bhckb841 + bhckb845 +
bhckb849 + bhckb853 + bhckb857 + bhckb861); 3. if (mm-q1
eq 09) and (bhck2170-q6 gt 1000000) then bhckc027 eq
(bhckb841 + bhckb845 + bhckb849 + bhckb853 + bhckb857
+ bhckb861); 4. if (mm-q1 eq 12) and (bhck2170-q7 gt
1000000) then bhckc027 eq (bhckb841 + bhckb845 +
bhckb849 + bhckb853 + bhckb857 + bhckb861)

if (bhck0416-q2 gt 1000) then (bhck0416-q1 gt 0)

FR Y-9C: EDIT-36 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5895
Intraseries HC-BM2a

Sub
MDRM
Schedule
Series
BHCK
0383
HC-B

5900

Intraseries HC-BM3

BHCK

1778

HC-B

5940

Intraseries HC-BM4a

BHCK

8782

HC-B

5945

Quality

HC-BM4b

BHCK

8783

HC-B

5950

Quality

HC-BM5aB

BHCK

B839

HC-B

5952

Quality

HC-BM5aD

BHCK

B841

HC-B

5954

Quality

HC-BM5bB

BHCK

B843

HC-B

5956

Quality

HC-BM5bD

BHCK

B845

HC-B

5958

Quality

HC-BM5cB

BHCK

B847

HC-B

MARCH 2007

NOTE section follows edits.
Edit Test
If the sum of HC-2a (previous) and HC-2b (previous) minus
HC-B7D (previous) is greater than zero and the sum of HC2a (current) and HC-2b (current) minus HC-B7D (current) is
greater than or equal to $1 million, then the difference
between the ratios for HC-BM2a divided by (HC-2a and HC2b minus HC-B7D) between previous and current should not
exceed +/- 30 %.

Alg Edit Test
if ((bhck1754-q2+bhck1773-q2) - bhcka511-q2) gt 0 and
(bhck1754-q1+ bhck1773-q1 - bhcka511-q1) ge 1000) then
(bhck0383-q2 / (bhck1754-q2 + bhck1773-q2 - bhcka511q2)) - (bhck0383-q1 / (bhck1754-q1 + bhck1773-q1 bhcka511-q1)) * 100 le 30 and (bhck0383-q2 / (bhck1754-q2
+ bhck1773-q2 - bhcka511-q2)) - (bhck0383-q1 / (bhck1754q1 + bhck1773-q1 - bhcka511-q1)) * 100 ge -30

For June, September, December, HC-BM3 (current) should if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
be greater than or equal to HC-BM3 (previous).
bhck1778-q1 ge bhck1778-q2
If HC-BM4a (previous) is greater than or equal to $1 million, if (bhck8782-q2 ge 1000) then bhck8782-q1 gt 0
then HC-BM4a (current) should be greater than zero.
If HC-BM4a is greater than zero and HC-BM4b is greater
than zero, then HC-BM4b divided by HC-BM4a should not
exceed tolerance of 75% - 150%.
If HC-12 is greater $1 billion and HC-BM5aA is greater than
zero, then HC-BM5aB divided by HC-BM5aA should not
exceed tolerance of 75% - 150%.
If HC-12 is greater $1 billion and HC-BM5aC is greater than
zero, then HC-BM5aD divided by HC-BM5aC should not
exceed tolerance of 75% - 150%.
If HC-12 is greater $1 billion and HC-BM5bA is greater than
zero, then HC-BM5bB divided by HC-BM5bA should not
exceed tolerance of 75% - 150%.
If HC-12 is greater $1 billion and HC-BM5bC is greater than
zero, then HC-BM5bD divided by HC-BM5bC should not
exceed tolerance of 75% - 150%.
If HC-12 is greater $1 billion and HC-BM5cA is greater than
zero, then HC-BM5cB divided by HC-BM5cA should not
exceed tolerance of 75% - 150%.

if (bhck8782 gt 0 and bhck8783 gt 0) then
((bhck8783/bhck8782)*100) ge 75 and
((bhck8783/bhck8782)*100) le 150
if (bhck2170 gt 1000000 and bhckb838 gt 0) then
((bhckb839/bhckb838)*100) ge 75 and
((bhckb839/bhckb838)*100) le 150
if (bhck2170 gt 1000000 and bhckb840 gt 0) then
((bhckb841/bhckb840)*100) ge 75 and
((bhckb841/bhckb840)*100) le 150
if (bhck2170 gt 1000000 and bhckb842 gt 0) then
((bhckb843/bhckb842)*100) ge 75 and
((bhckb843/bhckb842)*100) le 150
if (bhck2170 gt 1000000 and bhckb844 gt 0) then
((bhckb845/bhckb844)*100) ge 75 and
((bhckb845/bhckb844)*100) le 150
if (bhck2170 gt 1000000 and bhckb846 gt 0) then
((bhckb847/bhckb846)*100) ge 75 and
((bhckb847/bhckb846)*100) le 150

FR Y-9C: EDIT-37 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
5960
Quality
HC-BM5cD

Sub
MDRM
Schedule
Series
BHCK
B849
HC-B

5962

Quality

HC-BM5dB

BHCK

B851

HC-B

5964

Quality

HC-BM5dD

BHCK

B853

HC-B

5966

Quality

HC-BM5eB

BHCK

B855

HC-B

5968

Quality

HC-BM5eD

BHCK

B857

HC-B

5970

Quality

HC-BM5fB

BHCK

B859

HC-B

5972

Quality

HC-BM5fD

BHCK

B861

HC-B

9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-B1A
HC-B1B
HC-B1C
HC-B1D
HC-B2aA
HC-B2aB
HC-B2aC
HC-B2aD
HC-B2bA
HC-B2bB
HC-B2bC
HC-B2bD

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

0211
0213
1286
1287
1289
1290
1291
1293
1294
1295
1297
1298

HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B

MARCH 2007

NOTE section follows edits.
Edit Test
If HC-12 is greater $1 billion and HC-BM5cC is greater than
zero, then HC-BM5cD divided by HC-BM5cC should not
exceed tolerance of 75% - 150%.
If HC-12 is greater $1 billion and HC-BM5dA is greater than
zero, then HC-BM5dB divided by HC-BM5dA should not
exceed tolerance of 75% - 150%.
If HC-12 is greater $1 billion and HC-BM5dC is greater than
zero, then HC-BM5dD divided by HC-BM5dC should not
exceed tolerance of 75% - 150%.
If HC-12 is greater $1 billion and HC-BM5eA is greater than
zero, then HC-BM5eB divided by HC-BM5eA should not
exceed tolerance of 75% - 150%.
If HC-12 is greater $1 billion and HC-BM5eC is greater than
zero, then HC-BM5eD divided by HC-BM5eC should not
exceed tolerance of 75% - 150%.
If HC-12 is greater $1 billion and HC-BM5fA is greater than
zero, then HC-BM5fB divided by HC-BM5fA should not
exceed tolerance of 75% - 150%.
If HC-12 is greater $1 billion and HC-BM5fC is greater than
zero, then HC-BM5fD divided by HC-BM5fC should not
exceed tolerance of 75% - 150%.
HC-B1A should not be null and should not be negative.
HC-B1B should not be null and should not be negative.
HC-B1C should not be null and should not be negative.
HC-B1D should not be null and should not be negative.
HC-B2aA should not be null and should not be negative.
HC-B2aB should not be null and should not be negative.
HC-B2aC should not be null and should not be negative.
HC-B2aD should not be null and should not be negative.
HC-B2bA should not be null and should not be negative.
HC-B2bB should not be null and should not be negative.
HC-B2bC should not be null and should not be negative.
HC-B2bD should not be null and should not be negative.

Alg Edit Test
if (bhck2170 gt 1000000 and bhckb848 gt 0) then
((bhckb849/bhckb848)*100) ge 75 and
((bhckb849/bhckb848)*100) le 150
if (bhck2170 gt 1000000 and bhckb850 gt 0) then
((bhckb851/bhckb850)*100) ge 75 and
((bhckb851/bhckb850)*100) le 150
if (bhck2170 gt 1000000 and bhckb852 gt 0) then
((bhckb853/bhckb852)*100) ge 75 and
((bhckb853/bhckb852)*100) le 150
if (bhck2170 gt 1000000 and bhckb854 gt 0) then
((bhckb855/bhckb854)*100) ge 75 and
((bhckb855/bhckb854)*100) le 150
if (bhck2170 gt 1000000 and bhckb856 gt 0) then
((bhckb857/bhckb856)*100) ge 75 and
((bhckb857/bhckb856)*100) le 150
if (bhck2170 gt 1000000 and bhckb858 gt 0) then
((bhckb859/bhckb858)*100) ge 75 and
((bhckb859/bhckb858)*100) le 150
if (bhck2170 gt 1000000 and bhckb860 gt 0) then
((bhckb861/bhckb860)*100) ge 75 and
((bhckb861/bhckb860)*100) le 150
bhck0211 ne null and bhck0211 ge 0
bhck0213 ne null and bhck0213 ge 0
bhck1286 ne null and bhck1286 ge 0
bhck1287 ne null and bhck1287 ge 0
bhck1289 ne null and bhck1289 ge 0
bhck1290 ne null and bhck1290 ge 0
bhck1291 ne null and bhck1291 ge 0
bhck1293 ne null and bhck1293 ge 0
bhck1294 ne null and bhck1294 ge 0
bhck1295 ne null and bhck1295 ge 0
bhck1297 ne null and bhck1297 ge 0
bhck1298 ne null and bhck1298 ge 0

FR Y-9C: EDIT-38 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-B3A
HC-B3B
HC-B3C
HC-B3D
HC-B4a1A
HC-B4a1B
HC-B4a1C
HC-B4a1D
HC-B4a2A
HC-B4a2B
HC-B4a2C
HC-B4a2D
HC-B4a3A
HC-B4a3B
HC-B4a3C
HC-B4a3D
HC-B4b1A
HC-B4b1B
HC-B4b1C
HC-B4b1D
HC-B4b2A
HC-B4b2B
HC-B4b2C
HC-B4b2D
HC-B4b3A
HC-B4b3B
HC-B4b3C
HC-B4b3D
HC-B5A
HC-B5B
HC-B5C
HC-B5D
HC-B6aA

MARCH 2007

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

MDRM
8496
8497
8498
8499
1698
1699
1701
1702
1703
1705
1706
1707
1709
1710
1711
1713
1714
1715
1716
1717
1718
1719
1731
1732
1733
1734
1735
1736
C026
C988
C989
C027
1737

Schedule
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B

NOTE section follows edits.
Edit Test
HC-B3A should not be null and should not be negative.
HC-B3B should not be null and should not be negative.
HC-B3C should not be null and should not be negative.
HC-B3D should not be null and should not be negative.
HC-B4a1A should not be null and should not be negative.
HC-B4a1B should not be null and should not be negative.
HC-B4a1C should not be null and should not be negative.
HC-B4a1D should not be null and should not be negative.
HC-B4a2A should not be null and should not be negative.
HC-B4a2B should not be null and should not be negative.
HC-B4a2C should not be null and should not be negative.
HC-B4a2D should not be null and should not be negative.
HC-B4a3A should not be null and should not be negative.
HC-B4a3B should not be null and should not be negative.
HC-B4a3C should not be null and should not be negative.
HC-B4a3D should not be null and should not be negative.
HC-B4b1A should not be null and should not be negative.
HC-B4b1B should not be null and should not be negative.
HC-B4b1C should not be null and should not be negative.
HC-B4b1D should not be null and should not be negative.
HC-B4b2A should not be null and should not be negative.
HC-B4b2B should not be null and should not be negative.
HC-B4b2C should not be null and should not be negative.
HC-B4b2D should not be null and should not be negative.
HC-B4b3A should not be null and should not be negative.
HC-B4b3B should not be null and should not be negative.
HC-B4b3C should not be null and should not be negative.
HC-B4b3D should not be null and should not be negative.
HC-B5A should not be null and should not be negative.
HC-B5B should not be null and should not be negative.
HC-B5C should not be null and should not be negative.
HC-B5D should not be null and should not be negative.
HC-B6aA should not be null and should not be negative.

Alg Edit Test
bhck8496 ne null and bhck8496 ge 0
bhck8497 ne null and bhck8497 ge 0
bhck8498 ne null and bhck8498 ge 0
bhck8499 ne null and bhck8499 ge 0
bhck1698 ne null and bhck1698 ge 0
bhck1699 ne null and bhck1699 ge 0
bhck1701 ne null and bhck1701 ge 0
bhck1702 ne null and bhck1702 ge 0
bhck1703 ne null and bhck1703 ge 0
bhck1705 ne null and bhck1705 ge 0
bhck1706 ne null and bhck1706 ge 0
bhck1707 ne null and bhck1707 ge 0
bhck1709 ne null and bhck1709 ge 0
bhck1710 ne null and bhck1710 ge 0
bhck1711 ne null and bhck1711 ge 0
bhck1713 ne null and bhck1713 ge 0
bhck1714 ne null and bhck1714 ge 0
bhck1715 ne null and bhck1715 ge 0
bhck1716 ne null and bhck1716 ge 0
bhck1717 ne null and bhck1717 ge 0
bhck1718 ne null and bhck1718 ge 0
bhck1719 ne null and bhck1719 ge 0
bhck1731 ne null and bhck1731 ge 0
bhck1732 ne null and bhck1732 ge 0
bhck1733 ne null and bhck1733 ge 0
bhck1734 ne null and bhck1734 ge 0
bhck1735 ne null and bhck1735 ge 0
bhck1736 ne null and bhck1736 ge 0
bhckc026 ne null and bhckc026 ge 0
bhckc988 ne null and bhckc988 ge 0
bhckc989 ne null and bhckc989 ge 0
bhckc027 ne null and bhckc027 ge 0
bhck1737 ne null and bhck1737 ge 0

FR Y-9C: EDIT-39 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9400
9404
9404
9404
9404
9404
9404
9404
9404
9404
9404
9404
9404
9404

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-B6aB
HC-B6aC
HC-B6aD
HC-B6bA
HC-B6bB
HC-B6bC
HC-B6bD
HC-B7C
HC-B7D
HC-B8A
HC-B8B
HC-B8C
HC-B8D
HC-BM1
HC-BM2a
HC-BM2b
HC-BM2c
HC-BM3
HC-BM4a
HC-BM4b
HC-BM5aA
HC-BM5aB
HC-BM5aC
HC-BM5aD
HC-BM5bA
HC-BM5bB
HC-BM5bC
HC-BM5bD
HC-BM5cA
HC-BM5cB
HC-BM5cC
HC-BM5cD
HC-BM5dA

MARCH 2007

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCT
BHCK
BHCK
BHCT
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

MDRM
1738
1739
1741
1742
1743
1744
1746
A510
A511
1754
1771
1772
1773
0416
0383
0384
0387
1778
8782
8783
B838
B839
B840
B841
B842
B843
B844
B845
B846
B847
B848
B849
B850

Schedule
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B

NOTE section follows edits.
Edit Test
HC-B6aB should not be null and should not be negative.
HC-B6aC should not be null and should not be negative.
HC-B6aD should not be null and should not be negative.
HC-B6bA should not be null and should not be negative.
HC-B6bB should not be null and should not be negative.
HC-B6bC should not be null and should not be negative.
HC-B6bD should not be null and should not be negative.
HC-B7C should not be null and should not be negative.
HC-B7D should not be null and should not be negative.
HC-B8A should not be null and should not be negative.
HC-B8B should not be null and should not be negative.
HC-B8C should not be null and should not be negative.
HC-B8D should not be null and should not be negative.
HC-BM1 should not be null and should not be negative.
HC-BM2a should not be null and should not be negative.
HC-BM2b should not be null and should not be negative.
HC-BM2c should not be null and should not be negative.
HC-BM3 should not be null and should not be negative.
HC-BM4a should not be null and should not be negative.
HC-BM4b should not be null and should not be negative.
HC-BM5aA should not be negative.
HC-BM5aB should not be negative.
HC-BM5aC should not be negative.
HC-BM5aD should not be negative.
HC-BM5bA should not be negative.
HC-BM5bB should not be negative.
HC-BM5bC should not be negative.
HC-BM5bD should not be negative.
HC-BM5cA should not be negative.
HC-BM5cB should not be negative.
HC-BM5cC should not be negative.
HC-BM5cD should not be negative.
HC-BM5dA should not be negative.

Alg Edit Test
bhck1738 ne null and bhck1738 ge 0
bhck1739 ne null and bhck1739 ge 0
bhck1741 ne null and bhck1741 ge 0
bhck1742 ne null and bhck1742 ge 0
bhck1743 ne null and bhck1743 ge 0
bhck1744 ne null and bhck1744 ge 0
bhck1746 ne null and bhck1746 ge 0
bhcka510 ne null and bhcka510 ge 0
bhcka511 ne null and bhcka511 ge 0
bhct1754 ne null and bhct1754 ge 0
bhck1771 ne null and bhck1771 ge 0
bhck1772 ne null and bhck1772 ge 0
bhct1773 ne null and bhct1773 ge 0
bhck0416 ne null and bhck0416 ge 0
bhck0383 ne null and bhck0383 ge 0
bhck0384 ne null and bhck0384 ge 0
bhck0387 ne null and bhck0387 ge 0
bhck1778 ne null and bhck1778 ge 0
bhck8782 ne null and bhck8782 ge 0
bhck8783 ne null and bhck8783 ge 0
bhckb838 ge 0 or bhckb838 eq null
bhckb839 ge 0 or bhckb839 eq null
bhckb840 ge 0 or bhckb840 eq null
bhckb841 ge 0 or bhckb841 eq null
bhckb842 ge 0 or bhckb842 eq null
bhckb843 ge 0 or bhckb843 eq null
bhckb844 ge 0 or bhckb844 eq null
bhckb845 ge 0 or bhckb845 eq null
bhckb846 ge 0 or bhckb846 eq null
bhckb847 ge 0 or bhckb847 eq null
bhckb848 ge 0 or bhckb848 eq null
bhckb849 ge 0 or bhckb849 eq null
bhckb850 ge 0 or bhckb850 eq null

FR Y-9C: EDIT-40 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9404
9404
9404
9404
9404
9404
9404
9404
9404
9404
9404
5973

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

5974

Quality

Target Item
HC-BM5dB
HC-BM5dC
HC-BM5dD
HC-BM5eA
HC-BM5eB
HC-BM5eC
HC-BM5eD
HC-BM5fA
HC-BM5fB
HC-BM5fC
HC-BM5fD
HC-C1c2aB

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHDM

B851
B852
B853
B854
B855
B856
B857
B858
B859
B860
B861
5367

HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-B
HC-C

HC-C1c2bB

BHDM

5368

HC-C

5975

Intraseries HC-C1c2bB

BHDM

5368

HC-C

5980

Intraseries HC-C1c2bB

BHDM

5368

HC-C

5985

Quality

HC-C6aA

BHCK

B538

HC-C

5987

Intraseries HC-C6aA

BHCK

B538

HC-C

6000

Quality

BHCK

2011

HC-C

HC-C6cA

MARCH 2007

MDRM

Schedule

NOTE section follows edits.
Edit Test
HC-BM5dB should not be negative.
HC-BM5dC should not be negative.
HC-BM5dD should not be negative.
HC-BM5eA should not be negative.
HC-BM5eB should not be negative.
HC-BM5eC should not be negative.
HC-BM5eD should not be negative.
HC-BM5fA should not be negative.
HC-BM5fB should not be negative.
HC-BM5fC should not be negative.
HC-BM5fD should not be negative.
If the sum of HC-P1a, HC-P2a, and HC-P4a is greater than
zero, then HC-C1c2aB should be greater than zero.
If the sum of HC-P1b, HC-P2b, and HC-P4b is greater than
zero, then HC-C1c2bB should be greater than zero.
If HC-C1c2aB (previous) minus HC-C1c2bB (previous) is
greater than $1 million and HC-C1c2bB (current) is greater
than zero, then HC-C1c2aB (current) divided by HC-C1c2bB
(current) should be greater than 80 %.
If HC-C1c2bB (previous) minus HC-C1c2aB (previous) is
greater than $1 million and HC-C1c2aB (current) is greater
than zero, then HC-C1c2bB (current) divided by HC-C1c2aB
(current) should be greater than 80 %.
For March, if the sum of HI-B(I)5aA and HI-B(I)5aB is greater
than $25 thousand, then HC-C6aA should be greater than
zero.
For June, September, and December, if the sum of HIB(I)5aA and HI-B(I)5aB (current minus previous) is greater
than $25 thousand, then HC-C6aA (current) should be
greater than zero.
For March, if the sum of HI-B(I)5bA and HI-B(I)5bB is greater
than $25 thousand, then the sum of HC-C6bA and HC-C6cA
should be greater than zero.

Alg Edit Test
bhckb851 ge 0 or bhckb851 eq null
bhckb852 ge 0 or bhckb852 eq null
bhckb853 ge 0 or bhckb853 eq null
bhckb854 ge 0 or bhckb854 eq null
bhckb855 ge 0 or bhckb855 eq null
bhckb856 ge 0 or bhckb856 eq null
bhckb857 ge 0 or bhckb857 eq null
bhckb858 ge 0 or bhckb858 eq null
bhckb859 ge 0 or bhckb859 eq null
bhckb860 ge 0 or bhckb860 eq null
bhckb861 ge 0 or bhckb861 eq null
if (bhckf066 + bhckf068 + bhckf072) gt 0 then bhdm5367 gt 0
if (bhckf067 + bhckf069 + bhckf073) gt 0 then bhdm5368 gt 0
if ((bhdm5367-q2 - bhdm5368-q2) gt 1000 and (bhdm5368q1 gt 0)) then ((bhdm5367-q1 / bhdm5368-q1) * 100 gt 80)
if ((bhdm5368-q2 - bhdm5367-q2) gt 1000 and (bhdm5367q1 gt 0)) then ((bhdm5368-q1 / bhdm5367-q1) * 100 gt 80)
if (mm-q1 eq 03) and ((bhckb514 + bhckb515) gt 25) then
bhckb538 gt 0
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
((bhckb514-q1 + bhckb515-q1) - (bhckb514-q2 + bhckb515q2) gt 25) then bhckb538-q1 gt 0
if (mm-q1 eq 03) and ((bhckb516 + bhckb517) gt 25) then
(bhckb539 + bhck2011) gt 0

FR Y-9C: EDIT-41 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6003
Intraseries HC-C6cA

Sub
MDRM
Schedule
Series
BHCK
2011
HC-C

6010

Intraseries HC-CM1

BHCK

1616

HC-C

6012

Intraseries HC-CM2

BHCK

2746

HC-C

6017

Quality

HC-CM2

BHCK

2746

HC-C

6018

Intraseries HC-CM2

BHCK

2746

HC-C

6019

Intraseries HC-CM3

BHCK

B837

HC-C

6020

Quality

HC-CM4

BHCK

C391

HC-C

6022

Quality

HC-CM5a

BHCK

C779

HC-C

6023
6024

Quality
Quality

HC-CM5a
HC-CM5b

BHCK
BHCK

C779
C780

HC-C
HC-C

6025

Quality

HC-CM5b

BHCK

C780

HC-C

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

For June, September, and December, if the sum of HIB(I)5bA and HI-B(I)5bB (current minus previous) is greater
than $25 thousand, then the sum of HC-C6bA (current) and
HC-C6cA (current) should be greater than zero.

if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
((bhckb516-q1 + bhckb517-q1) - (bhckb516-q2 + bhckb517q2) gt 25) then (bhckb539-q1 + bhck2011-q1) gt 0

For June, September, and December, if HC-CM1 (previous)
is greater than zero, then HC-CM1 (current) should be
greater than zero.
If HC-CM2 (previous) minus $500k is greater than zero, then
HC-CM2 (current) should be greater than zero.
For March, if the sum of HI-B(I)M1A and HI-B(I)M1B is
greater than $25 thousand, then HC-CM2 should be greater
than zero.
For June, September, and December, if the sum of HIB(I)M1A and HI-B(I)M1B (current minus previous) is greater
than $25 thousand, then HC-CM2 (current) should be greater
than zero.
If HC-CM3 (previous) is greater than zero, then HC-CM3
(current) should be greater than zero.
If the sum of (HC-C6aA, HC-S1C, and HC-S6aC) is greater
than $500 million or [the sum of (HC-C6aA and HC-S1C)
divided by the sum of (HC-C12A and HC-S1C) is greater
than 50% and the sum of (HC-C12A and HC-S1C) divided by
the sum of (HC-12 and HC-S1C) is greater than 50%], then
HC-CM4 should be greater than zero.

if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and if
bhck1616-q2 gt 0 then bhck1616-q1 gt 0

If HC-CM5b is greater than zero, then HC-CM5a should be
greater than zero.
HC-CM5a should be greater than or equal to HC-CM5b.
If HC-CM5a is greater than zero, then HC-CM5b should be
greater than zero.
HC-CM5a should not equal HC-CM5b.

if (bhck2746-q2 - 500) gt 0 then (bhck2746-q1 gt 0)
if (mm-q1 eq 03) and ((bhck5409 + bhck5410) gt 25) then
bhck2746 gt 0
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
((bhck5409-q1 + bhck5410-q1) - (bhck5409-q2 + bhck5410q2) gt 25) then bhck2746-q1 gt 0
if (bhckb837-q2 gt 0) then (bhckb837-q1 gt 0)
if (((bhckb538 + bhckb707+ bhckb762) gt 500000) or
(((bhckb538 + bhckb707) / (bhck2122 + bhckb707)) * 100 gt
50) and (((bhck2122 + bhckb707) / (bhck2170 + bhckb707))
* 100 gt 50))) then bhckc391 gt 0

if bhckc779 gt 0 then bhckc780 gt 0
bhckc779 ge bhckc780
if bhckc780 gt 0 then bhckc779 gt 0
bhckc779 ne bhckc780

FR Y-9C: EDIT-42 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6027
Quality
HC-CM5b

Sub
MDRM
Schedule
Series
BHCK
C780
HC-C

6028

Quality

HC-CM6c

BHCK

F232

HC-C

6029

Quality

HC-CM6c

BHCK

F232

9406
9406
9406
9406
9406

Quality
Quality
Quality
Quality
Quality

HC-C1A
HC-C1aB
HC-C1bB
HC-C1c1B
HC-C1c2aB

BHCK
BHDM
BHDM
BHDM
BHDM

9406

Quality

HC-C1c2bB

9406
9406
9406
9406
9406
9406
9406
9406
9406
9406
9406
9406
9406
9406
9406

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-C1dB
HC-C1eB
HC-C2aA
HC-C2bA
HC-C2B
HC-C3A
HC-C3B
HC-C4aA
HC-C4bA
HC-C4B
HC-C6aA
HC-C6bA
HC-C6cA
HC-C6B
HC-C7A

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

HC-CM5b should be less than or equal to the sum of HCC1A though HC-C9bA.

bhckc780 le (bhck1410 + bhck1292 + bhck1296 + bhck1590
+ bhck1763 + bhck1764 + bhckb538 + bhckb539 + bhck2011
+ bhck2081 + bhck1545 + bhck1564)
if ((bhckf230 gt 100000) or (bhckf230 gt (0.05 * bhck2122)))
then (bhckf231 ne null and bhckf232 ne null and (bhckf231 +
bhckf232 gt 0))

HC-C

If HC-CM6a is greater than $100 million or greater than 5%
of HC-C12B, then HC-CM6b and HC-CM6c should not be
null and the sum of HC-CM6b and HC-CM6c should be
greater than zero.
HC-CM6c should be less than or equal 50% of HC-CM6a.

bhckf232 le (0.50 * bhckf230)

1410
1415
1420
1797
5367

HC-C
HC-C
HC-C
HC-C
HC-C

HC-C1A should not be null and should not be negative.
HC-C1aB should not be null and should not be negative.
HC-C1bB should not be null and should not be negative.
HC-C1c1B should not be null and should not be negative.
HC-C1c2aB should not be null and should not be negative.

bhck1410 ne null and bhck1410 ge 0
bhdm1415 ne null and bhdm1415 ge 0
bhdm1420 ne null and bhdm1420 ge 0
bhdm1797 ne null and bhdm1797 ge 0
bhdm5367 ne null and bhdm5367 ge 0

BHDM

5368

HC-C

HC-C1c2bB should not be null and should not be negative.

bhdm5368 ne null and bhdm5368 ge 0

BHDM
BHDM
BHCK
BHCK
BHDM
BHCK
BHDM
BHCK
BHCK
BHDM
BHCK
BHCK
BHCK
BHDM
BHCK

1460
1480
1292
1296
1288
1590
1590
1763
1764
1766
B538
B539
2011
1975
2081

HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C

HC-C1dB should not be null and should not be negative.
HC-C1eB should not be null and should not be negative.
HC-C2aA should not be null and should not be negative.
HC-C2bA should not be null and should not be negative.
HC-C2B should not be null and should not be negative.
HC-C3A should not be null and should not be negative.
HC-C3B should not be null and should not be negative.
HC-C4aA should not be null and should not be negative.
HC-C4bA should not be null and should not be negative.
HC-C4B should not be null and should not be negative.
HC-C6aA should not be null and should not be negative.
HC-C6bA should not be null and should not be negative.
HC-C6cA should not be null and should not be negative.
HC-C6B should not be null and should not be negative.
HC-C7A should not be null and should not be negative.

bhdm1460 ne null and bhdm1460 ge 0
bhdm1480 ne null and bhdm1480 ge 0
bhck1292 ne null and bhck1292 ge 0
bhck1296 ne null and bhck1296 ge 0
bhdm1288 ne null and bhdm1288 ge 0
bhck1590 ne null and bhck1590 ge 0
bhdm1590 ne null and bhdm1590 ge 0
bhck1763 ne null and bhck1763 ge 0
bhck1764 ne null and bhck1764 ge 0
bhdm1766 ne null and bhdm1766 ge 0
bhckb538 ne null and bhckb538 ge 0
bhckb539 ne null and bhckb539 ge 0
bhck2011 ne null and bhck2011 ge 0
bhdm1975 ne null and bhdm1975 ge 0
bhck2081 ne null and bhck2081 ge 0

FR Y-9C: EDIT-43 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9406
9406
9406
9406
9406
9406
9406
9406
9406
9406
9406
9406
9406
9406
9406
9410
9420
9420
9420
9421
9421
9422
9422
9422
9422

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-C7B
HC-C9aA
HC-C9bA
HC-C9aB
HC-C9bB
HC-C10aA
HC-C10bA
HC-C10B
HC-C11A
HC-C11B
HC-C12A
HC-C12B
HC-CM1
HC-CM2
HC-CM3
HC-CM4
HC-CM5a
HC-CM5b
HC-CM6a
HC-CM6b
HC-CM6c
HC-CM7a
HC-CM7b
HC-CM8a
HC-CM8b

MARCH 2007

Sub
Series
BHDM
BHCK
BHCK
BHDM
BHDM
BHCK
BHCK
BHDM
BHCK
BHDM
BHCK
BHDM
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

MDRM
2081
1545
1564
1545
1564
F162
F163
2165
2123
2123
2122
2122
1616
2746
B837
C391
C779
C780
F230
F231
F232
F158
F159
F160
F161

Schedule
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C
HC-C

NOTE section follows edits.
Edit Test
HC-C7B should not be null and should not be negative.
HC-C9aA should not be null and should not be negative.
HC-C9bA should not be null and should not be negative.
HC-C9aB should not be null and should not be negative.
HC-C9bB should not be null and should not be negative.
HC-C10aA should not be null and should not be negative.
HC-C10bA should not be null and should not be negative.
HC-C10B should not be null and should not be negative.
HC-C11A should not be null and should not be negative.
HC-C11B should not be null and should not be negative.
HC-C12A should not be null and should not be negative.
HC-C12B should not be null and should not be negative.
HC-CM1 should not be null and should not be negative.
HC-CM2 should not be null and should not be negative.
HC-CM3 should not be null and should not be negative.
HC-CM4 should not be negative.
HC-CM5a should not be null and should not be negative.
HC-CM5b should not be null and should not be negative.
HC-CM6a should not be null and should not be negative.
HC-CM6b should not be negative.
HC-CM6c should not be negative.
HC-CM7a should not be null and should not be negative.
HC-CM7b should not be null and should not be negative.
HC-CM8a should not be null and should not be negative.
HC-CM8b should not be null and should not be negative.

Alg Edit Test
bhdm2081 ne null and bhdm2081 ge 0
bhck1545 ne null and bhck1545 ge 0
bhck1564 ne null and bhck1564 ge 0
bhdm1545 ne null and bhdm1545 ge 0
bhdm1564 ne null and bhdm1564 ge 0
bhckf162 ne null and bhckf162 ge 0
bhckf163 ne null and bhckf163 ge 0
bhdm2165 ne null and bhdm2165 ge 0
bhck2123 ne null and bhck2123 ge 0
bhdm2123 ne null and bhdm2123 ge 0
bhck2122 ne null and bhck2122 ge 0
bhdm2122 ne null and bhdm2122 ge 0
bhck1616 ne null and bhck1616 ge 0
bhck2746 ne null and bhck2746 ge 0
bhckb837 ne null and bhckb837 ge 0
bhckc391 ge 0 or bhckc391 eq null
bhckc779 ne null and bhckc779 ge 0
bhckc780 ne null and bhckc780 ge 0
bhckf230 ne null and bhckf230 ge 0
bhckf231 ge 0 or bhckf231 eq null
bhckf232 ge 0 or bhckf232 eq null
bhckf158 ne null and bhckf158 ge 0
bhckf159 ne null and bhckf159 ge 0
bhckf160 ne null and bhckf160 ge 0
bhckf161 ne null and bhckf161 ge 0

FR Y-9C: EDIT-44 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6030
Intraseries HC-D11b

Sub
MDRM
Schedule
Series
BHFN
3543
HC-D

6035

Intraseries HC-D11b

BHFN

3543

6040

Intraseries HC-D14

BHCK

3547

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If HC-K4a is greater than or equal to $2 million for any
quarter of the previous year, and HC-5 (current) is greater
than zero, the the sum of HC-D1(current) through HC-D11b
(current) should be greater than zero.

if (((mm-q1 eq 03) and (bhck3401-q2 ge 2000 or bhck3401q3 ge 2000 or bhck3401-q4 ge 2000 or bhck3401-q5 ge
2000)) or ((mm-q1 eq 06) and (bhck3401-q3 ge 2000 or
bhck3401-q4 ge 2000 or bhck3401-q5 ge 2000 or bhck3401q6 ge 2000)) or ((mm-q1 eq 09) and (bhck3401-q4 ge 2000
or bhck3401-q5 ge 2000 or bhck3401-q6 ge 2000 or
bhck3401-q7 ge 2000)) or ((mm-q1 eq 12) and (bhck3401-q5
ge 2000 or bhck3401-q6 ge 2000 or bhck3401-q7 ge 2000 or
bhck3401-q8 ge 2000))) and (bhck3545-q1 gt 0) then
(bhck3531-q1 + bhck3532-q1 + bhck3533-q1 + bhck3534-q1
+ bhck3535-q1 + bhck3536-q1 + bhck3537-q1 + bhck3541q1 + bhck3542-q1 + bhck3543-q1 + bhfn3543-q1) gt 0

HC-D

For June, September, and December, if the sum of HC-D1
(previous) through HC-D11b (previous) is greater than zero,
and HC-5 (current) is greater than zero, then the sum of HCD1 (current) through HC-D11b (current) should be greater
than zero.

HC-D

If HC-K4a is greater than or equal to $2 million for any
quarter of the previous year, and HC-15 (current) is greater
than zero, the the sum of HC-D13 (current) and HC-D14
(current) should be greater than zero.

if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck3531-q2 + bhck3532-q2 + bhck3533-q2 + bhck3534-q2
+ bhck3535-q2 + bhck3536-q2 + bhck3537-q2 + bhck3541q2 + bhck3542-q2 + bhck3543-q2 + bhfn3543-q2) gt 0 and
bhck3545-q1 gt 0) then (bhck3531-q1 + bhck3532-q1 +
bhck3533-q1 + bhck3534-q1 + bhck3535-q1 + bhck3536-q1
+ bhck3537-q1 + bhck3541-q1 + bhck3542-q1 + bhck3543q1 + bhfn3543-q1) gt 0
if (((mm-q1 eq 03) and (bhck3401-q2 ge 2000 or bhck3401q3 ge 2000 orbhck3401-q4 ge 2000 or bhck3401-q5 ge
2000)) or if ((mm-q1 eq 06) and (bhck3401-q3 ge 2000 or
bhck3401-q4 ge 2000 or bhck3401-q5 ge 2000 or bhck3401q6 ge 2000)) or if ((mm-q1 eq 09) and (bhck3401-q4 ge 2000
or bhck3401-q5 ge 2000 or bhck3401-q6 ge 2000 or
bhck3401-q7 ge 2000)) or if ((mm-q1 eq 12) and (bhck3401q5 ge 2000 or bhck3401-q6 ge 2000 or bhck3401-q7 ge
2000 or bhck3401-q8 ge 2000))) and bhck3548-q1 gt 0 then
(bhck3546-q1 + bhck3547-q1) gt 0

FR Y-9C: EDIT-45 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6045
Intraseries HC-D14

Sub
MDRM
Schedule
Series
BHCK
3547
HC-D

9430
9430
9430
9430
9430
9430
9430
9430
9430
9430
9430
9430
9430
9430
9430
6047

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-D1
HC-D10
HC-D11a
HC-D11b
HC-D12
HC-D13
HC-D14
HC-D15
HC-D2
HC-D3
HC-D4a
HC-D4b
HC-D4c
HC-D5
HC-D9
HC-E1e

BHCK
BHCK
BHCK
BHFN
BHCT
BHCK
BHCK
BHCT
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCB

3531
3542
3543
3543
3545
3546
3547
3548
3532
3533
3534
3535
3536
3537
3541
2604

HC-D
HC-D
HC-D
HC-D
HC-D
HC-D
HC-D
HC-D
HC-D
HC-D
HC-D
HC-D
HC-D
HC-D
HC-D
HC-E

6048

Quality

HC-E2a

BHOD

3189

HC-E

6050

Quality

HC-E2e

BHOD

2604

HC-E

6075

Quality

HC-EM2

BHDM

A164

HC-E

6080

Quality

HC-EM3

BHDM

A242

HC-E

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, if the sum of HC-D13
(previous) and HC-D14 (previous) is greater than zero, and
HC-15 (current) is greater than zero, then the sum of HCD13 (current) and HC-D14 (current) should be greater than
zero.
HC-D1 should not be negative.
HC-D10 should not be negative.
HC-D11a should not be negative.
HC-D11b should not be negative.
HC-D12 should not be negative.
HC-D13 should not be negative.
HC-D14 should not be negative.
HC-D15 should not be negative.
HC-D2 should not be negative.
HC-D3 should not be negative.
HC-D4a should not be negative.
HC-D4b should not be negative.
HC-D4c should not be negative.
HC-D5 should not be negative.
HC-D9 should not be negative.
If the sum of HC-E1a through HC-E2e is not equal to zero,
then the sum of HC-E1a through HC-E1e should not equal
zero.

Alg Edit Test
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck3546-q2 + bhck3547-q2) gt 0 and (bhck3548-q1 gt 0))
then (bhck3546-q1 + bhck3547-q1) gt 0
bhck3531 ge 0 or bhck3531 eq null
bhck3542 ge 0 or bhck3542 eq null
bhck3543 ge 0 or bhck3543 eq null
bhfn3543 ge 0 or bhfn3543 eq null
bhct3545 ge 0 or bhct3545 eq null
bhck3546 ge 0 or bhck3546 eq null
bhck3547 ge 0 or bhck3547 eq null
bhct3548 ge 0 or bhct3548 eq null
bhck3532 ge 0 or bhck3532 eq null
bhck3533 ge 0 or bhck3533 eq null
bhck3534 ge 0 or bhck3534 eq null
bhck3535 ge 0 or bhck3535 eq null
bhck3536 ge 0 or bhck3536 eq null
bhck3537 ge 0 or bhck3537 eq null
bhck3541 ge 0 or bhck3541 eq null
if ((bhcb2210 + bhcb3187 + bhcb2389 + bhcb6648 +
bhcb2604 + bhod3189 + bhod3187 + bhod2389 + bhod6648
+ bhod2604) ne 0) then ((bhcb2210 + bhcb3187 + bhcb2389
+ bhcb6648 + bhcb2604) ne 0)
(bhcb2210 + bhod3189) le bhdm6631

Sum of HC-E1a and HC-E2a must be less than or equal to
HC-13a1.
Sum of HC-E1b through HC-E1e plus the sum of HC-E2b
(bhcb3187 + bhcb2389 + bhcb6648 + bhcb2604) +
through HC-E2e should be greater than or equal to HC-13a2. (bhod3187 + bhod2389 + bhod6648 + bhod2604) ge
bhdm6636
Sum of HC-EM1 and HC-EM2 should be less than or equal (bhdma243+bhdma164) le (bhcb6648 + bhod6648)
to the sum of HC-E1d and HC-E2d.
If HC-EM3 is greater than zero, then HC-EM3 should be
if bhdma242 gt 0 then bhdma242 ge 100
greater than or equal to $100k.

FR Y-9C: EDIT-46 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6090
Quality
HC-EM4

Sub
MDRM
Schedule
Series
BHFN
A245
HC-E

9440
9440
9440
9440
9440
9450
9450
9450
9450
9450
9460
9460
9460
9460
6100

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Intraseries

HC-E1a
HC-E1b
HC-E1c
HC-E1d
HC-E1e
HC-E2a
HC-E2b
HC-E2c
HC-E2d
HC-E2e
HC-EM1
HC-EM2
HC-EM3
HC-EM4
HC-F1

BHCB
BHCB
BHCB
BHCB
BHCB
BHOD
BHOD
BHOD
BHOD
BHOD
BHDM
BHDM
BHDM
BHFN
BHCK

2210
3187
2389
6648
2604
3189
3187
2389
6648
2604
A243
A164
A242
A245
B556

HC-E
HC-E
HC-E
HC-E
HC-E
HC-E
HC-E
HC-E
HC-E
HC-E
HC-E
HC-E
HC-E
HC-E
HC-F

6120

Intraseries HC-F3b

BHCK

A520

HC-F

6125

Intraseries HC-F3b

BHCK

A520

HC-F

6130

Intraseries HC-F4

BHCK

1752

HC-F

6135

Quality

HC-F4

BHCK

1752

HC-F

6140

Intraseries HC-F4

BHCK

1752

HC-F

9460
9460

Quality
Quality

BHCK
BHCK

B556
2148

HC-F
HC-F

HC-F1
HC-F2

MARCH 2007

NOTE section follows edits.
Edit Test
If the sum of HC-13b1 and HC-13b2 is greater than zero,
then HC-EM4 should be greater than zero.
HC-E1a should not be null and should not be negative.
HC-E1b should not be null and should not be negative.
HC-E1c should not be null and should not be negative.
HC-E1d should not be null and should not be negative.
HC-E1e should not be null and should not be negative.
HC-E2a should not be negative.
HC-E2b should not be negative.
HC-E2c should not be negative.
HC-E2d should not be negative.
HC-E2e should not be negative.
HC-EM1 should not be null and should not be negative.
HC-EM2 should not be null and should not be negative.
HC-EM3 should not be null and should not be negative.
HC-EM4 should not be null and should not be negative.
If HC-F1 (previous) is greater than zero, then HC-F1
(current) should be greater than zero.
If HC-F3a (previous) is greater than HC-F3b (previous) then
HC-F3a (current) should be greater HC-F3b (current).

Alg Edit Test
if (bhfn6631 + bhfn6636) gt 0 then bhfna245 gt 0
bhcb2210 ne null and bhcb2210 ge 0
bhcb3187 ne null and bhcb3187 ge 0
bhcb2389 ne null and bhcb2389 ge 0
bhcb6648 ne null and bhcb6648 ge 0
bhcb2604 ne null and bhcb2604 ge 0
bhod3189 ge 0 or bhod3189 eq null
bhod3187 ge 0 or bhod3187 eq null
bhod2389 ge 0 or bhod2389 eq null
bhod6648 ge 0 or bhod6648 eq null
bhod2604 ge 0 or bhod2604 eq null
bhdma243 ne null and bhdma243 ge 0
bhdma164 ne null and bhdma164 ge 0
bhdma242 ne null and bhdma242 ge 0
bhfna245 ne null and bhfna245 ge 0
if bhckb556-q2 gt 0 then bhckb556-q1 gt 0
if bhcka519-q2 gt bhcka520-q2 then bhcka519-q1 gt
bhcka520-q1

If HC-F3a (previous) is less than HC-F3b (previous) then HCF3a (current) should be less HC-F3b (current).
If HC-F4 (previous) is greater than or equal to $100K, then
HC-F4 (current) should be greater than zero.
For March, if HI-1g is greater than $100K, then the sum of
HC-F3a, HC-F3b and HC-F4 should be greater than zero.

if bhcka519-q2 lt bhcka520-q2 then bhcka519-q1 lt bhcka520q1
if bhck1752-q2 ge 100 then bhck1752-q1 gt 0

For June, September, and December, if HI-1g (currentprevious) is greater than $100K, then the sum of HC-F3a,
HC-F3b, and HC-F4 should be greater than zero.
HC-F1 should not be null and should not be negative.
HC-F2 should not be null and should not be negative.

if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4518-q1 - bhck4518-q2) gt 100) then (bhcka519 +
bhcka520 + bhck1752) gt 0
bhckb556 ne null and bhckb556 ge 0
bhck2148 ne null and bhck2148 ge 0

if ((mm-q1 eq 03) and (bhck4518 gt 100)) then (bhcka519 +
bhcka520 + bhck1752) gt 0

FR Y-9C: EDIT-47 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9460
9460
9460
9460
9460
9460
6145

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Intraseries

6150

Target Item

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
bhct
BHCK

A519
A520
1752
C009
2168
2160
3049

HC-F
HC-F
HC-F
HC-F
HC-F
HC-F
HC-G

Intraseries HC-G3

BHCK

B557

HC-G

9460
9460
9460
9460
6160
6165

Quality
Quality
Quality
Quality
Quality
Quality

HC-G2
HC-G3
HC-G4
HC-G5
HC-H1
HC-H2

BHCK
BHCK
BHCK
BHCT
BHCK
BHCK

3049
B557
B984
2750
3197
3296

HC-G
HC-G
HC-G
HC-G
HC-H
HC-H

9460
9460
9460
9460
9460
6170

Quality
Quality
Quality
Quality
Quality
Quality

HC-H1
HC-H2
HC-H3
HC-H4
HC-H5
HI-Mem12b2

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

3197
3296
3298
3408
3409
C243

HC-H
HC-H
HC-H
HC-H
HC-H
HC-I

6172

Quality

HI-Mem12b2

BHCK

C243

HC-I

6175

Quality

HI-Mem12b2

BHCK

C243

HC-I

HC-F3a
HC-F3b
HC-F4
HC-F5
HC-F6
HC-F7
HC-G2

MARCH 2007

MDRM

Schedule

NOTE section follows edits.
Edit Test
HC-F3a should not be null and should not be negative.
HC-F3b should not be null and should not be negative.
HC-F4 should not be null and should not be negative.
HC-F5 should not be null and should not be negative.
HC-F6 should not be null and should not be negative.
HC-F7 should not be null and should not be negative.
If HC-F2 (previous) is equal to zero or HC-G2 (previous) is
equal to zero, then HC-F2 (current) should equal zero or HCG2 (current) should equal zero.
If HC-G3 (previous) is greater than zero, then HC-G3
(current) should be greater than zero.
HC-G2 should not be null and should not be negative.
HC-G3 should not be null and should not be negative.
HC-G4 should not be null and should not be negative.
HC-G5 should not be null and should not be negative.
HC-H1 should be greater than zero.
HC-H2 should be less than or equal to the sum of HC-13a2
and HC-13b2.
HC-H1 should not be null and should not be negative.
HC-H2 should not be null and should not be negative.
HC-H3 should not be null and should not be negative.
HC-H4 should not be null and should not be negative.
HC-H5 should not be null and should not be negative.
If HC-I(II)2 is greater than zero, then HI-Mem12b2 should be
greater than zero.
If HC-I(II)5 is greater than zero, then HI-Mem12b2 should be
greater than zero.
If the sum of HC-I(I)2, HC-I(I)5, HC-I(I)6, HC-I(II)3, HC-I(II)6,
HC-I(II)7, and HC-M21 is greater than zero, then the sum of
HI-Mem12b1 and HI-Mem12b2 should be greater than zero.

Alg Edit Test
bhcka519 ne null and bhcka519 ge 0
bhcka520 ne null and bhcka520 ge 0
bhck1752 ne null and bhck1752 ge 0
bhckc009 ne null and bhckc009 ge 0
bhck2168 ne null and bhck2168 ge 0
bhct2160 ne null and bhct2160 ge 0
(if bhck2148-q2 eq 0 or bhck3049-q2 eq 0) then (bhck2148q1 eq 0 or bhck3049-q1 eq 0)
if bhckb557-q2 gt 0 then bhckb557-q1 gt 0
bhck3049 ne null and bhck3049 ge 0
bhckb557 ne null and bhckb557 ge 0
bhckb984 ne null and bhckb984 ge 0
bhct2750 ne null and bhct2750 ge 0
bhck3197 gt 0
bhck3296 le (bhdm6636 + bhfn6636)
bhck3197 ne null and bhck3197 ge 0
bhck3296 ne null and bhck3296 ge 0
bhck3298 ne null and bhck3298 ge 0
bhck3408 ne null and bhck3408 ge 0
bhck3409 ne null and bhck3409 ge 0
if (bhckb992 gt 0) then bhckc243 gt 0
if (bhckb996 gt 0) then bhckc243 gt 0
if (bhckc244 + bhckc245 + bhckc246 + bhckc248 + bhckc249
+ bhckc250 + bhckc253) gt 0 then (bhckc242 + bhckc243) gt
0

FR Y-9C: EDIT-48 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6176
Quality
HI-Mem12c

Sub
MDRM
Schedule
Series
BHCK
B983
HC-I

6178
6179

Quality
Quality

HC-I(I)5
HC-I(II)3

BHCK
BHCK

C245
C248

HC-I
HC-I

6180

Quality

HC-I(II)3

BHCK

C248

HC-I

6181

Quality

HC-I(II)3

BHCK

C248

HC-I

6182

Quality

HC-I(II)3

BHCK

C248

HC-I

6183

Quality

HC-I(II)5

BHCK

B996

HC-I

6185

Quality

HC-I(II)6

BHCK

C249

HC-I

6187

Quality

HC-I(II)6

BHCK

C249

HC-I

6188

Quality

HC-I(II)6

BHCK

C249

HC-I

6189
6190

Quality
Quality

HC-I(II)6
HC-I(II)6

BHCK
BHCK

C249
C249

HC-I
HC-I

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If the sum of HI-5d4, HI-Mem12b1, HI-Mem12b2, HC-I(I)2, if (bhckc386 + bhckc242 + bhckc243 + bhckc244 + bhckc245
HC-I(I)5, HC-I(I)6, HC-I(II)3, HC-I(II)6 and HC-I(II)7 is greater + bhckc246 + bhckc248 + bhckc249 + bhckc250) gt 1000
than $1M, then HI-Mem12c should be greater than zero.
then bhckb983 gt 0
HC-I(I)5 should be less than or equal to HC-I(I)2.
If the sum of HC-I(I)6 and HC-I(II)7 is greater than zero, then
the sum of HC-I(I)2 and HC-I(II)3 should be greater than
zero.
If the sum of HI-5d4, HI-Mem12b1, and HI-Mem12b2 is
greater than zero, then the sum of HC-I(I)2 and HC-I(II)3
should be greater than zero.
If the sum of HI-Mem12b1 and HI-Mem12b2 is greater than
zero and equal to HI-5d5 (+/- 5%), then the sum of HC-I(I)2
and HC-I(II)3 should be greater than zero.
If HI-Mem12c is greater than zero, then the sum of HC-I(I)2
and HC-I(II)3 should be greater than zero.
If HC-I(II)2 is greater than zero, then HC-I(II)2 should equal
HC-I(II)5. (- 5%)
If the sum of HI-5d4, HI-Mem12b1, and HI-Mem12b2, HCI(I)2, HC-I(I)6, HC-I(II)3, and HC-I(II)7 is greater than zero,
then the sum of HC-I(I)5 and HC-I(II)6 should be greater than
zero.
If the sum of HC-I(I)6 and HC-I(II)7 is greater than zero, then
the sum of HC-I(I)5 and HC-I(II)6 should be greater than
zero.
If the sum of HI-5d4, HI-Mem12b1 and HI-Mem12b2 is
greater than zero, then the sum of HC-I(I)5 and HC-I(II)6
should be greater than zero.
HC-I(II)6 should be less than or equal to HC-I(II)3.
If HI-Mem12c is greater than zero, then the sum of HC-I(I)5
and HC-I(II)6 should be greater than zero.

bhckc245 le bhckc244
if (bhckc246 + bhckc250) gt 0 then (bhckc244 + bhckc248) gt
0
if (bhckc386 + bhckc242 + bhckc243) gt 0 then (bhckc244 +
bhckc248) gt 0
if ((bhckc242 + bhckc243) gt 0 and (bhckc242 + bhckc243) le
((bhckc387 * 1.05) and ge (bhckc387 *.95))) then (bhckc244
+ bhckc248) gt 0
if bhckb983 gt 0 then (bhckc244 + bhckc248) gt 0
if (bhckb992 gt 0) then bhckb992 ge (bhckb996 *.95) and
bhckb992 le bhckb996
if (bhckc386 + bhckc242 + bhckc243 + bhckc244 + bhckc246
+ bhckc248 + bhckc250) gt 0 then (bhckc245 + bhckc249) gt
0
if (bhckc246 + bhckc250) gt 0 then (bhckc245 + bhckc249) gt
0
if (bhckc386 + bhckc242 + bhckc243) gt 0 then (bhckc245 +
bhckc249) gt 0
bhckc249 le bhckc248
if bhckb983 gt 0 then (bhckc245 + bhckc249) gt 0

FR Y-9C: EDIT-49 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6191
Quality
HC-I(II)7

Sub
MDRM
Schedule
Series
BHCK
C250
HC-I

6193

Quality

HC-I(II)7

BHCK

C250

HC-I

6195

Quality

HC-I(II)7

BHCK

C250

HC-I

6197

Quality

HC-I(II)7

BHCK

C250

HC-I

6199

Quality

HC-I(II)7

BHCK

C250

HC-I

6202

Quality

HC-I(I)1

bhck

b988

HC-I

6202

Quality

HC-I(I)2

bhck

c244

HC-I

MARCH 2007

NOTE section follows edits.
Edit Test
If the sum of HI-5d4, HI-Mem12b1, and HI-Mem12b2 is
greater than zero, then the sum of HC-I(I)6 and HC-I(II)7
should not equal zero or null.
If HI-Mem12c is greater than zero, then the sum HC-I(I)6 and
HC-I(II)7 should not equal zero or null.
If HC-M21 is greater than zero, then the sum of HI-5d4, HIMem12b2, HC-I(I)2, HC-I(I)5, HC-I(I)6, HC-I(II)3, HC-I(II)6,
and HC-I(II)7 should be greater than zero.
If the sum of HC-I(I)2, HC-I(I)5, HC-I(II)3, and HC-I(II)6 is
greater than $100k, then the sum of HC-I(I)6 and HC-I(II)7
should not equal zero or null.
If HC-I(I)6 and HC-I(II)7 are not equal to zero, then the sum
of HC-I(I)6 and HC-I(II)7 should be less than HI-13.
Data for Schedule I must be submitted by all top-tier BHCs or
lower-tier BHCs functioning as the consolidated top-tier BHC.

Alg Edit Test
if (bhckc386 + bhckc242 + bhckc243) gt 0 then (bhckc246 +
bhckc250) ne 0 or null
if (bhckb983 gt 0) then (bhckc246 + bhckc250) ne 0 or null
if (bhckc253 gt 0) then (bhckc386 + bhckc243 + bhckc244 +
bhckc245 + bhckc246 + bhckc248 + bhckc249 + bhckc250)
gt 0
if (bhckc244 + bhckc245 + bhckc248 + bhckc249) gt 100
then (bhckc246 + bhckc250) ne 0 or null
if ((bhckc246 + bhckc250) ne 0) then (bhckc246 + bhckc250)
lt bhck4340
if the respondent is a top-tier BHC or lower-tier BHC
functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

FR Y-9C: EDIT-50 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
6202
Quality
HC-I(I)3

Sub
MDRM
Schedule
Series
bhck
b990
HC-I

6202

Quality

HC-I(I)4

bhck

b991

HC-I

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

6202

Quality

HC-I(I)5

bhck

c245

HC-I

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

6202

Quality

HC-I(I)6

bhck

c246

HC-I

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

MARCH 2007

Alg Edit Test

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

FR Y-9C: EDIT-51 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
6202
Quality
HC-I(II)1

Sub
MDRM
Schedule
Series
bhck
c247
HC-I

6202

Quality

HC-I(II)2

bhck

b992

HC-I

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

6202

Quality

HC-I(II)3

bhck

c248

HC-I

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

6202

Quality

HC-I(II)4

bhck

b994

HC-I

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

MARCH 2007

Alg Edit Test

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

FR Y-9C: EDIT-52 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
6202
Quality
HC-I(II)5

Sub
MDRM
Schedule
Series
bhck
b996
HC-I

6202

Quality

HC-I(II)6

bhck

c249

HC-I

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

6202

Quality

HC-I(II)7

bhck

c250

HC-I

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

9470
9470
9470
9470
9470
9470
9470
9470
9470

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-I(I)1
HC-I(I)2
HC-I(I)3
HC-I(I)4
HC-I(I)5
HC-I(II)1
HC-I(II)2
HC-I(II)3
HC-I(II)4

bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck

b988
c244
b990
b991
c245
c247
b992
c248
b994

HC-I
HC-I
HC-I
HC-I
HC-I
HC-I
HC-I
HC-I
HC-I

HC-I(I)1 should not be negative.
HC-I(I)2 should not be negative.
HC-I(I)3 should not be negative.
HC-I(I)4 should not be negative.
HC-I(I)5 should not be negative.
HC-I(II)1 should not be negative.
HC-I(II)2 should not be negative.
HC-I(II)3 should not be negative.
HC-I(II)4 should not be negative.

MARCH 2007

Alg Edit Test

Data for Schedule I must be submitted by all top-tier BHCs or if the respondent is a top-tier BHC or lower-tier BHC
lower-tier BHCs functioning as the consolidated top-tier BHC. functioning as the consolidated top-tier BHC then bhckb988
ne null and bhckc244 ne null and bhckb990 ne null and
bhckb991 ne null and bhckc245 ne null and bhckc246 ne null
and bhckc247 ne null and bhckb992 ne null and bhckc248 ne
null and bhckb994 ne null and bhckb996 ne null and
bhckc249 ne null and bhckc250 ne null

bhckb988 ge 0 or bhckb988 eq null
bhckc244 ge 0 or bhckc244 eq null
bhckb990 ge 0 or bhckb990 eq null
bhckb991 ge 0 or bhckb991 eq null
bhckc245 ge 0 or bhckc245 eq null
bhckc247 ge 0 or bhckc247 eq null
bhckb992 ge 0 or bhckb992 eq null
bhckc248 ge 0 or bhckc248 eq null
bhckb994 ge 0 or bhckb994 eq null

FR Y-9C: EDIT-53 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
9470
Quality
HC-I(II)5
9470
Quality
HC-I(II)6
6206
Intraseries HC-K1

Sub
MDRM
Schedule
Series
bhck
b996
HC-I
bhck
c249
HC-I
bhck
3515
HC-K

6206

Quality

bhck

3515

HC-K

6208

Intraseries HC-K1

BHCK

3515

HC-K

6208

Quality

BHCK

3515

HC-K

6210

Intraseries HC-K2

bhck

3365

HC-K

6210

Quality

bhck

3365

HC-K

6212

Intraseries HC-K2

BHCK

3365

HC-K

6212

Quality

BHCK

3365

HC-K

HC-K1

HC-K1

HC-K2

HC-K2

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

HC-I(II)5 should not be negative.
HC-I(II)6 should not be negative.
For June, September, and December, if the sum of HI-1d1,
HI-1d2 and HI-1d3 (current minus previous) is greater than
$30K, then the sum of HI-1d1, HI-1d2 and HI-1d3 (current
minus previous) divided by HC-K1 (current) should be less
than 9%.

bhckb996 ge 0 or bhckb996 eq null
bhckc249 ge 0 or bhckc249 eq null
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
((bhckb488-q1 + bhckb489-q1 + bhck4060-q1) - (bhckb488q2 + bhckb489-q2 + bhck4060-q2)) gt 30 and bhck3515-q1
ne 0 then (((bhckb488-q1 + bhckb489-q1 + bhck4060-q1) - (
bhckb488-q2 + bhckb489-q2 + bhck4060-q2) / bhck3515-q1)
* 100 * 4 lt 9
For March, if the sum of HI-1d1, HI-1d2 and HI-1d3 is greater if (mm-q1 eq 03) and (bhckb488 + bhckb489 + bhck4060) gt
than $30K, then the sum of HI-1d1, HI-1d2 and HI-1d3
30 and bhck3515 ne 0 then ((bhckb488 + bhckb489 +
divided by HC-K1 should be less than 9%.
bhck4060) / bhck3515) * 100 * 4 lt 9
For June, September, and December, if HC-K1 (current) is if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
greater than $4M, then the sum of HI-1d1, HI-1d2 and HIbhck3515-q1 gt 4000 then (((bhckb488-q1 + bhckb489-q1 +
1d3 (current minus previous) Divided by HC-K1 (current)
bhck4060-q1) - (bhckb488-q2 + bhckb489-q2 + bhck4060should be greater than 2%.
q2)) / bhck3515-q1) * 100 * 4 gt 2
For March, if HC-K1 is greater than $4M, then the sum of HI- if (mm-q1 eq 03) and bhck3515 gt 4000 then ((bhckb488 +
1d1, HI-1d2 and HI-1d3 divided by HC-K1 should be greater bhckb489 + bhck4060) / bhck3515) * 100 * 4 gt 2)
than 2%.
For June, September, and December, if HI-1f (current minus if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
previous) is greater than $50K, then HI-1f (current minus
(bhck4020-q1 - bhck4020-q2) gt 50 and bhck3365-q1 ne 0
previous) divided by HC-K2 (current) should be less than
then ((bhck4020-q1 - bhck4020-q2) / bhck3365-q1) *100 * 4
6.00%.
lt 6
For March, if HI-1f is greater than $50K, then HI-1f divided by if (mm-q1 eq 03) and bhck4020 gt 50 and bhck3365 ne 0
HC-K2 should be less than 6.00%.
then (bhck4020 / bhck3365) *100 * 4 lt 6
For June, September, and December, if HC-K2 (current) is if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
greater than $4M, then HI-1f (current minus previous) divided bhck3365-q1 gt 4000 then ((bhck4020-q1 - bhck4020-q2) /
by HC-K2 (current) should be greater than 1.00%.
bhck3365-q1) *100 * 4 gt 1
For March, if HC-K2 is greater than $4M, then HI-1f divided
by HC-K2 should be greater than 1.00%.

if (mm-q1 eq 03) and bhck3365 gt 4000 then (bhck4020 /
bhck3365) * 100 * 4 gt 1

FR Y-9C: EDIT-54 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6216
Intraseries HC-K3

Sub
MDRM
Schedule
Series
bhck
3516
HC-K

6216

Quality

bhck

3516

HC-K

6218

Intraseries HC-K3

BHCK

3516

HC-K

6218

Quality

HC-K3

BHCK

3516

HC-K

6220

Quality

HC-K3

BHCK

3516

HC-K

6222

Quality

HC-K4a

BHCK

3401

HC-K

6224

Intraseries HC-K4a

bhck

3401

HC-K

6224

Quality

bhck

3401

HC-K

6227

Intraseries HC-K4a

BHCK

3401

HC-K

6227

Quality

BHCK

3401

HC-K

HC-K3

HC-K4a

HC-K4a

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

For June, September, and December, if the sum of HI-1a1,
HI-1a2 and HI-1b (current minus previous) is greater than
$100K then the sum of HI-1a1, HI-1a2 and HI-1b (current
minus previous) divided by HC-K3 (current) should be less
than 14%.

if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
((bhck4010-q1 + bhck4059-q1 + bhck4065-q1) - (bhck4010q2 + bhck4059-q2 + bhck4065-q2)) gt 100 and bhck3516-q1
ne 0 then (((bhck4010-q1 + bhck4059-q1 + bhck4065-q1) (bhck4010-q2 + bhck4059-q2 + bhck4065-q2)) / bhck3516q1) *100 * 4 lt 14
For March, if the sum of HI-1a1, HI-1a2 and HI-1b is greater if (mm-q1 eq 03) and (bhck4010 + bhck4059 + bhck4065) gt
than $100K then the sum of HI-1a1, HI-1a2 and HI-1b
100 and bhck3516 ne 0 then ((bhck4010 + bhck4059 +
divided by HC-K3 should be less than 14%.
bhck4065) / bhck3516) * 100 *4 lt 14
For June, September, and December, if HC-K3 (current) is if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
greater than $4M, then the sum of HI-1a1, HI-1a2 and HI-1b bhck3516-q1 gt 4000 then (((bhck4010-q1 + bhck4059-q1 +
(current minus previous) divided by HC-K3 (current) should bhck4065-q1) - (bhck4010-q2 + bhck4059-q2 + bhck4065be greater than 5%.
q2)) / bhck3516-q1) * 100 * 4 gt 5
For March, if HC-K3 is greater than $4M, then the sum of HI- if (mm-q1 eq 03) and bhck3516 gt 4000 then ((bhck4010 +
1a1, HI-1a2 and HI-1b divided by HC-K3 should be greater bhck4059 + bhck4065) / bhck3516) * 100 * 4 gt 5
than 5%.
If HC-C12A is greater than zero, then HC-K3 should be
if bhck2122 gt 0 then bhck3516 gt 0
greater than zero.
If HC-5 is greater than zero, then HC-K4a should be greater if bhck3545 gt 0 then bhck3401 gt 0
than zero.
For June, September, and December, if HI-1e (current minus if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
previous) is greater than $30K, then HI-1e (current minus
(bhck4069-q1 - bhck4069-q2) gt 30 and bhck3401-q1 ne 0
previous) divided by HC-K4a (current) should be less than
then ((bhck4069-q1 - bhck4069-q2) / bhck3401-q1) * 100 * 4
7%.
lt 7
For March, if HI-1e is greater than $30K, then HI-1e divided if (mm-q1 eq 03) and bhck4069 gt 30 and bhck3401 ne 0
by HC-K4a should be less than 7%.
then (bhck4069 / bhck3401) * 100 * 4 lt 7
For June, September, and December, if HC-K4a (current) is if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
greater than $4M, then HI-1e (current minus previous)
bhck3401-q1 gt 4000 then ((bhck4069-q1 - bhck4069-q2) /
divided by HC-K4a (current) should be greater than 1 %.
bhck3401-q1) * 100 * 4 gt 1
For March, if HC-K4a is greater than $4M, then HI-1e divided if (mm-q1 eq 03) and bhck3401 gt 4000 then (bhck4069 /
by HC-K4a should be greater than 1 %.
bhck3401) * 100 * 4 gt 1

FR Y-9C: EDIT-55 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6229
Quality
HC-K4a

Sub
MDRM
Schedule
Series
BHCK
3401
HC-K

6230

Quality

BHCK

B985

HC-K

6240
6245

Quality
HC-K5
Intraseries HC-K5

BHCK
BHCK

3368
3368

HC-K
HC-K

6250

Quality

BHCK

3368

HC-K

6251

Intraseries HC-K6

bhck

3517

HC-K

6251

Quality

bhck

3517

HC-K

6253

Intraseries HC-K6

BHCK

3517

HC-K

6253

Quality

HC-K6

BHCK

3517

HC-K

6256

Quality

HC-K6

BHCK

3517

HC-K

HC-K4b

HC-K5

HC-K6

MARCH 2007

NOTE section follows edits.
Edit Test
If HC-K4a is greater than $1M, then HC-K4a should not
equal HC-5.
If the sum of HC-1b1, HC-1b2, and HC-8 is greater than
zero, then HC-K4b should be greater than zero.
HC-K5 should not equal HC-12.
If HI-A9 (current) equals zero, then HC-K5 (current) divided
by HC-12 (current plus previous divided by 2) should be in
the range of 75-125%.

Alg Edit Test
if bhck3401 gt 1000 then bhck3401 ne bhck3545

if (bhck0395 + bhck0397 + bhck2130) gt 0 then bhckb985 gt
0
bhck3368 ne bhck2170
1. if bhck4356-q1 eq 0 and bhck3368-q1 gt 0 then (bhck2170q1 + bhck2170-q2) / 2 ne 0; 2. if bhck4356-q1 eq 0 and
(bhck2170-q1 + bhck2170-q2) / 2 gt 0 then bhck3368-q1 ne
0; 3. if bhck4356-q1 eq 0 and bhck3368-q1 gt 0 and
(bhck2170-q1 + bhck2170-q2) / 2) gt 0 then ((bhck3368-q1 /
((bhck2170-q1 + bhck2170-q2) / 2)) * 100) ge 75 and
((bhck3368-q1 / ((bhck2170-q1 + bhck2170-q2) / 2)) * 100) le
125
The sum of HC-K1 through HC-K4b should be less than or (bhck3515 + bhck3365 + bhck3516 + bhck3401 + bhckb985)
equal to HC-K5.
le bhck3368
For June, September, and December, if the sum of HI-2a1a, if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
HI-2a1b, and HI-2a1c (current minus previous) is greater
((bhcka517-q1 + bhcka518-q1 + bhck6761-q1) - (bhcka517than $50K then the sum of HI-2a1a, HI-2a1b, and HI-2a1c
q2 + bhcka518-q2 + bhck6761-q2)) gt 50 and bhck3517-q1
(current minus previous) divided by HC-K6 (current) should ne 0 then (((bhcka517-q1 + bhcka518-q1 + bhck6761-q1) be less than 6%.
(bhcka517-q2 + bhcka518-q2 + bhck6761-q2)) / bhck3517q1) * 100 * 4 lt 6
For March, if the sum of HI-2a1a, HI-2a1b, and HI-2a1c is
if (mm-q1 eq 03) and (bhcka517 + bhcka518 + bhck6761) gt
greater than $50K then the sum of HI-2a1a, HI-2a1b, and HI- 50 and bhck3517 ne 0 then ((bhcka517 + bhcka518 +
2a1c divided by HC-K6 should be less than 6%.
bhck6761) / bhck3517) * 100 * 4 lt 6
For June, September, and December, if HC-K6 (current) is if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
greater than $3M then the sum of HI-2a1a, HI-2a1b and HI- bhck3517-q1 gt 3000 then (((bhcka517-q1 + bhcka518-q1 +
2a1c (current minus previous) divided by HC-K6 (current)
bhck6761-q1) - (bhcka517-q2 + bhcka518-q2 + bhck6761should be greater than 1%.
q2)) / bhck3517-q1) * 100 * 4 gt 1
For March, if HC-K6 is greater than $3M then the sum of HI- if (mm-q1 eq 03) and bhck3517 gt 3000 then ((bhcka517 +
2a1a, HI-2a1b and HI-2a1c divided by HC-K6 should be
bhcka518 + bhck6761) / bhck3517) * 100 * 4 gt 1
greater than 1%.
If HC-K6 is greater than $1M, then HC-K6 should not equal if bhck3517 gt 1000 then bhck3517 ne bhdm6636
HC-13a2.

FR Y-9C: EDIT-56 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6271
Intraseries HC-K7

Sub
MDRM
Schedule
Series
bhck
3404
HC-K

6271

Quality

bhck

3404

HC-K

6273

Intraseries HC-K7

BHCK

3404

HC-K

6273

Quality

HC-K7

BHCK

3404

HC-K

6275

Quality

HC-K7

BHCK

3404

HC-K

6281

Intraseries HC-K8

bhck

3353

HC-K

6281

Quality

bhck

3353

HC-K

6283

Intraseries HC-K8

BHCK

3353

HC-K

6283

Quality

BHCK

3353

HC-K

6288

Intraseries HC-K9

bhck

2635

HC-K

6288

Quality

bhck

2635

HC-K

HC-K7

HC-K8

HC-K8

HC-K9

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, if HI-2a2 (current
minus previous) is greater than $20K, then HI-2a2 (current
minus previous) divided by HC-K7 (current) should be less
than 6%.
For March, if HI-2a2 is greater than $20K, then HI-2a2
divided by HC-K7 should be less than 6%.
For June, September, and December, if HC-K7 (current) is
greater than $2M, then HI-2a2 (current minus previous)
divided by HC-K7 (current) should be greater than 1 %.
For March, if HC-K7 is greater than $2M, then HI-2a2 divided
by HC-K7 should be greater than 1 %.
If HC-K7 is greater than $1M, then HC-K7 should not equal
HC-13b2.
For June, September, and December, if HI-2b (current minus
previous) is greater than $50K, then HI-2b (current minus
previous) divided by HC-K8 (current) should be less than
6.00%.
For March, if HI-2b is greater than $50K, then HI-2b divided
by HC-K8 should be less than 6.00%.
For June, September, and December, if HC-K8 (current) is
greater than $4M, then HI-2b (current minus previous)
divided by HC-K8 (current) should be greater than 1.00%.
For March, if HC-K8 is greater than $4M, then HI-2b divided
by HC-K8 should be greater than 1.00%.
For June, September, and December, if HC-15 (current)
equals zero and HI-2c (current minus previous) is greater
than $100K, then HI-2c (current minus previous) divided by
HC-K9 (current) should be less than 9 %.
For March, if HC-15 equals zero and HI-2c is greater than
$100K, then HI-2c divided by HC-K9 should be less than 9
%.

Alg Edit Test
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4172-q1 - bhck4172-q2) gt 20 and bhck3404-q1 ne 0
then ((bhck4172-q1 - bhck4172-q2) / bhck3404-q1) * 100 * 4
lt 6
if (mm-q1 eq 03) and bhck4172 gt 20 and bhck3404 ne 0
then (bhck4172 / bhck3404) * 100 * 4 lt 6
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
bhck3404-q1 gt 2000 then ((bhck4172-q1 - bhck4172-q2) /
bhck3404-q1) * 100 * 4 gt 1
if (mm-q1 eq 03) and bhck3404 gt 2000 then (bhck4172 /
bhck3404) * 100 * 4 gt 1
if bhck3404 gt 1000 then bhck3404 ne bhfn6636
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck4180-q1 - bhck4180-q2) gt 50 and bhck3353-q1 ne 0
then ((bhck4180-q1 - bhck4180-q2) / bhck3353-q1) * 100 * 4
lt 6
if (mm-q1 eq 03) and bhck4180 gt 50 and bhck3353 ne 0
then (bhck4180 / bhck3353) * 100 * 4 lt 6
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck3353-q1 gt 4000) then ((bhck4180-q1 - bhck4180-q2) /
bhck3353-q1) * 100 * 4 gt 1
if (mm-q1 eq 03) and (bhck3353 gt 4000) then (bhck4180 /
bhck3353) * 100 * 4 gt 1
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
bhck3548-q1 eq 0 and (bhck4185-q1 - bhck4185-q2) gt 100
and bhck2635-q1 ne 0 then ((bhck4185-q1 - bhck4185-q2) /
bhck2635-q1) * 100 * 4 lt 9
if (mm-q1 eq 03) and bhck3548 eq 0 and bhck4185 gt 100
and bhck2635 ne 0 then (bhck4185 / bhck2635) * 100 * 4 lt 9

FR Y-9C: EDIT-57 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6290
Intraseries HC-K9

Sub
MDRM
Schedule
Series
BHCK
2635
HC-K

6290

Quality

HC-K9

BHCK

2635

HC-K

6293

Quality

HC-K11

BHCK

3519

HC-K

6295

Intraseries HC-K11

BHCK

3519

HC-K

9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
6297

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-K1
HC-K11
HC-K2
HC-K3
HC-K4a
HC-K4b
HC-K5
HC-K6
HC-K7
HC-K8
HC-K9
HC-L1a

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

3515
3519
3365
3516
3401
B985
3368
3517
3404
3353
2635
3814

HC-K
HC-K
HC-K
HC-K
HC-K
HC-K
HC-K
HC-K
HC-K
HC-K
HC-K
HC-L

6299

Quality

HC-L1c2

BHCK

6550

HC-L

6300

Intraseries HC-L1d

BHCK

3817

HC-L

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

For June, September, and December, if HC-15 (current)
equals zero and HC-K9 (current) is greater than $4M, then
HI-2c (current minus previous) divided by HC-K9 (current)
should be greater than 1.5 %.
For March, if HC-15 equals zero and HC-K9 is greater than
$4M, then HI-2c divided by HC-K9 should be greater than
1.5%.
Sum of HC-K6 through HC-K11 should be less than or equal
to HC-K5.
HC-K11 (current) divided by HC-28 (current plus previous
divided by 2) should be in the range of 75 - 125%.

if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
bhck3548-q1 eq 0 and bhck2635-q1 gt 4000 then
((bhck4185-q1 - bhck4185-q2) / bhck2635-q1) * 100 * 4 gt
1.5
if (mm-q1 eq 03) and bhck3548 eq 0 and bhck2635 gt 4000
then (bhck4185 / bhck2635) * 100 * 4 gt 1.5

HC-K1 should not be null and should not be negative.
HC-K11 should not be null and should not be negative.
HC-K2 should not be null and should not be negative.
HC-K3 should not be null and should not be negative.
HC-K4a should not be null and should not be negative.
HC-K4b should not be null and should not be negative.
HC-K5 should not be null and should not be negative.
HC-K6 should not be null and should not be negative.
HC-K7 should not be null and should not be negative.
HC-K8 should not be null and should not be negative.
HC-K9 should not be null and should not be negative.
If HC-C1c1B equals zero, then HC-L1a should be less than
$500K.
If HC-L1c2 is greater than $1M, then HC-CM2 should be
greater than zero.
If HC-L1d (previous) equals zero, then HC-L1d (current)
should equal zero.

bhck3515 ne null and bhck3515 ge 0
bhck3519 ne null and bhck3519 ge 0
bhck3365 ne null and bhck3365 ge 0
bhck3516 ne null and bhck3516 ge 0
bhck3401 ne null and bhck3401 ge 0
bhckb985 ne null and bhckb985 ge 0
bhck3368 ne null and bhck3368 ge 0
bhck3517 ne null and bhck3517 ge 0
bhck3404 ne null and bhck3404 ge 0
bhck3353 ne null and bhck3353 ge 0
bhck2635 ne null and bhck2635 ge 0
if bhdm1797 eq 0 then bhck3814 lt 500

(bhck3517 + bhck3404 + bhck3353 + bhck2635 + bhck3519)
le bhck3368
1. if bhck3519-q1 gt 0 then (bhck3210-q1+bhck3210-q2) / 2)
ne 0; 2. if (bhck3210-q1+bhck3210-q2) / 2) gt 0 then
bhck3519-q1 ne 0; 3. if bhck3519-q1 gt 0 and (bhck3210q1+bhck3210-q2) / 2) gt 0 then ((bhck3519-q1/((bhck3210q1+bhck3210-q2) / 2))*100) ge 75 and ((bhck3519-q1/
((bhck3210-q1+bhck3210-q2)/2))*100) le 125

if bhck6550 gt 1000 then bhck2746 gt 0
if bhck3817-q2 eq 0 then bhck3817-q1 eq 0

FR Y-9C: EDIT-58 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6302
Intraseries HC-L1e

Sub
MDRM
Schedule
Series
BHCK
3818
HC-L

6303

Intraseries HC-L1e

BHCK

3818

HC-L

6305

Quality

HC-L2

BHCK

6566

HC-L

6306

Quality

HC-L2

BHCK

6566

HC-L

6308

Quality

HC-L3

BHCK

6570

HC-L

6309

Quality

HC-L3

BHCK

6570

HC-L

6311

Quality

HC-L4

BHCK

3411

HC-L

6313

Intraseries HC-L6

BHCK

3433

HC-L

6315

Quality

BHCK

C220

HC-L

HC-L7b2A

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If the sum of HC-L1a (previous) through HC-L1e (previous)
divided by HC-12 (previous) is less than 50 percent, then the
sum of HC-L1a (current) through HC-L1e (current) divided by
HC-12 (current) should be less than 50 percent.

if bhck2170-q2 ne 0 and ((bhck3814-q2 + bhck3815-q2 +
bhck3816-q2 + bhck6550-q2 + bhck3817-q2 + bhck3818q2)/bhck2170-q2)*100 lt 50 then ((bhck3814-q1 + bhck3815q1 + bhck3816-q1 + bhck6550-q1 + bhck3817-q1 +
bhck3818-q1)/bhck2170-q1)*100 lt 50
If the sum of HC-L1a (previous) through HC-L1e (previous) if bhck2170-q2 ne 0 and ((bhck3814-q2 + bhck3815-q2 +
divided by HC-12 (previous) is greater than or equal to 50
bhck3816-q2 + bhck6550-q2 + bhck3817-q2 + bhck3818percent, then the sum of HC-L1a (current) through HC-L1e q2)/bhck2170-q2)*100 ge 50 then ((bhck3814-q1 + bhck3815(current) divided by HC-12 (current) should be greater than q1 + bhck3816-q1 + bhck6550-q1 + bhck3817-q1 +
or equal to 50 percent.
bhck3818-q1)/bhck2170-q1)*100 ge 50
HC-L2 divided by HC-12 should not exceed tolerance of 25% (bhck6566 / bhck2170) *100 le 25
If HC-L2 is greater than zero, then HC-L2a should not equal if bhck6566 gt 0 then bhck3820 ne bhck6566
HC-L2.
HC-L3 divided by HC-12 should not exceed tolerance of 25% (bhck6570 / bhck2170) *100 le 25
If HC-L3 is greater than zero, then HC-L3a should not equal if bhck6570 gt 0 then bhck3822 ne bhck6570
HC-L3.
HC-L4 divided by HC-12 should not exceed tolerance of 25% (bhck3411/bhck2170) *100 le 25
If the sum of HC-BM1 (previous) and HC-L6 (previous) is
less than or equal to the sum of HC-2a (previous) and HC-2b
(previous), then the sum of HC-BM1 (current) and HC-L6
(current) should be less than or equal to the sum of HC-2a
(current) and HC-2b (current).
If the sum of HC-L7a1A through HC-L7a4A is greater than
zero, then the sum of HC-L7b1A and HC-L7b2A divided by
the sum of HC-L7a1A through HC-L7a4A should be greater
than zero and less than 10%.

if (bhck0416-q2 + bhck3433-q2) le (bhck1754-q2 + bhck1773q2) then (bhck0416-q1 + bhck3433-q1) le (bhck1754-q1 +
bhck1773-q1)
if ((bhckc968 + bhckc970 + bhckc972 + bhckc974) gt 0) then
((bhckc219 + bhckc220) / (bhckc968 + bhckc970 + bhckc972
+ bhckc974)) gt 0 and ((bhckc219 + bhckc220) / (bhckc968 +
bhckc970 + bhckc972 + bhckc974) * 100) lt 10)

FR Y-9C: EDIT-59 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6316
Intraseries HC-L7a4A

Sub
MDRM
Schedule
Series
BHCK
C974
HC-L

6317

Intraseries HC-L7a4B

BHCK

C975

6318

Quality

BHCK

6319

Intraseries HC-L8

6320

Quality

6326

NOTE section follows edits.
Edit Test

Alg Edit Test

If the sum of HC-L7a1A through HC-L7a4A (previous) is
greater than the sum of HC-L7a1B through HC-L7a4B
(previous), then the sum of HC-L7a1A through HC-L7a4A
(current) should be greater than the sum of HC-L7a1B
through HC-L7a4B (current).

if ((bhckc968-q2 + bhckc970-q2 + bhckc972-q2 + bhckc974q2) gt (bhckc969-q2 + bhckc971-q2 + bhckc973-q2 +
bhckc975-q2)) then ((bhckc968-q1 + bhckc970-q1 +
bhckc972-q1 + bhckc974-q1) gt (bhckc969-q1 + bhckc971q1 + bhckc973-q1 + bhckc975-q1))

HC-L

If the sum of HC-L7a1B through HC-L7a4B (previous) is
greater than the sum of HC-L7a1A through HC-L7a4A
(previous), then the sum of HC-L7a1B through HC-L7a4B
(current) should be greater than the sum of HC-L7a1A
through HC-L7a4A (current).

if ((bhckc969-q2 + bhckc971-q2 + bhckc973-q2 + bhckc975q2) gt (bhckc968-q2 + bhckc970-q2 + bhckc972-q2 +
bhckc974-q2)) then ((bhckc969-q1 + bhckc971-q1 +
bhckc973-q1 + bhckc975-q1) gt (bhckc968-q1 + bhckc970q1 + bhckc972-q1 + bhckc974-q1))

C222

HC-L

If the sum of HC-L7a1B through HC-L7a4B is greater than
zero, then the sum of HC-L7b1B and HC-L7b2B divided by
the sum of HC-L7a1B through HC-L7a4B should be greater
than zero and less than 10%.

if ((bhckc969 + bhckc971 + bhckc973 + bhckc975) gt 0) then
((bhckc221 + bhckc222) / (bhckc969 + bhckc971 + bhckc973
+ bhckc975)) gt 0 and ((bhckc221 + bhckc222) / (bhckc969 +
bhckc971 + bhckc973 + bhckc975) * 100) lt 10)

BHCK

8765

HC-L

BHCK

3430

HC-L

If HC-L8 (previous) is greater than zero, then HC-L8 (current) if bhck8765-q2 gt 0 then bhck8765-q1 gt 0
should be greater than zero.
HC-L9 divided by HC-12 should not exceed tolerance of 10% (bhck3430/bhck2170) *100 le 10

Intraseries HC-L9a

BHCK

3432

HC-L

If the sum of HC-L9a (previous) through HC-L9g (previous) is
greater than zero, and 25 percent of HC-28 (current)
exceeds $5M, then the sum of HC-L9a (current) through HCL9g (current) should be greater than zero.

6330

Quality

HC-L9d

BHCK

6561

HC-L

6331

Quality

HC-L9d

TEXT

6561

HC-L

6332

Quality

HC-L9e

BHCK

6562

HC-L

If financial data is not equal to null or zero, then text data
should not be null.
If text data is not equal to null, then financial data should not if text6561 ne null then bhck6561 ne null and bhck6561 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
if bhck6562 ne null and bhck6562 ne 0 then text6562 ne null
should not be null.

HC-L7b2B

HC-L9

MARCH 2007

if (bhck3432-q2 + bhck3434-q2 + bhck3435-q2 + bhck6561q2 + bhck6562-q2 + bhck6568-q2 + bhck6586-q2) gt 0 and
(bhck3210-q1 * .25) gt 5000 then (bhck3432-q1 + bhck3434q1 + bhck3435-q1 + bhck6561-q1 + bhck6562-q1 +
bhck6568-q1 + bhck6586-q1) gt 0
if bhck6561 ne null and bhck6561 ne 0 then text6561 ne null

FR Y-9C: EDIT-60 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6333
Quality
HC-L9e

Sub
MDRM
Schedule
Series
TEXT
6562
HC-L

6334

Quality

HC-L9f

BHCK

6568

HC-L

6335

Quality

HC-L9f

TEXT

6568

HC-L

6336

Quality

HC-L9g

BHCK

6586

HC-L

6337

Quality

HC-L9g

TEXT

6586

HC-L

6360

Quality

HC-L12D

BHCK

8724

HC-L

6380

Quality

HC-L14a2A

BHCK

8737

HC-L

6383

Quality

HC-L14a2A

BHCK

8737

HC-L

6385

Quality

HC-L14b2A

BHCK

8745

HC-L

6390

Quality

HC-L14b2A

BHCK

8745

HC-L

6395

Quality

HC-L14a2B

BHCK

8738

HC-L

6400

Quality

HC-L14a2B

BHCK

8738

HC-L

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If text data is not equal to null, then financial data should not if text6562 ne null then bhck6562 ne null and bhck6562 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
if bhck6568 ne null and bhck6568 ne 0 then text6568 ne null
should not be null.
If text data is not equal to null, then financial data should not if text6568 ne null then bhck6568 ne null and bhck6568 ne 0
equal null or zero.
If financial data is not equal to null or zero, then text data
if bhck6586 ne null and bhck6586 ne 0 then text6586 ne null
should not be null.
If text data is not equal to null, then financial data should not if text6586 ne null then bhck6586 ne null and bhck6586 ne 0
equal null or zero.
If the sum of HC-D11a, HC-D11b and HC-D14 is greater
if ((bhck3543 + bhfn3543 + bhck3547) gt 0) then ((bhcka126
than zero, then the sum of HC-L12 (Columns A through D) + bhcka127 + bhck8723 + bhck8724) gt 0)
should be greater than zero.
If HC-L12A is greater than 500K, then the sum of HCif bhcka126 gt 500 then (bhck8733 + bhck8737) gt 0 and
L14a1A and HC-L14a2A should be greater than zero and
(bhck8733 + bhck8737) le (bhcka126 * .1)
less than or equal to 10 percent of HC-L12A.
If HC-L12A is less than or equal to 500K, then the sum of HC- if bhcka126 le 500 then (bhck8733 + bhck8737) le (bhcka126
L14a1A and HC-L14a2A should be less than or equal to 10 * .1)
percent of HC-L12A.
If HC-L13A is greater than 15M, then the sum of HC-L14b1A if bhck8725 gt 15000 then (bhck8741 + bhck8745) gt 0 and
and HC-L14b2A should be greater than zero and less than or (bhck8741 + bhck8745) le (bhck8725 * .1)
equal to 10 percent of HC-L13A.
If HC-L13A is less than or equal to 15M, then the sum of HC- if bhck8725 le 15000 then (bhck8741 + bhck8745) le
L14b1A and HC-L14b2A should be less than or equal to 10 (bhck8725 * .1)
percent of HC-L13A.
If HC-L12B is greater than 500K, then the sum of HCif bhcka127 gt 500 then (bhck8734 + bhck8738) gt 0 and
L14a1B and HC-L14a2B should be greater than zero and
(bhck8734 + bhck8738) le (bhcka127 * .1)
less than or equal to 10 percent of HC-L12B.
If HC-L12B is less than or equal to 500K, then the sum of HC- if bhcka127 le 500 then (bhck8734 + bhck8738) le (bhcka127
L14a1B and HC-L14a2B should be less than or equal to 10 * .1)
percent of HC-L12B.

FR Y-9C: EDIT-61 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6405
Quality
HC-L14b2B

Sub
MDRM
Schedule
Series
BHCK
8746
HC-L

6408

Quality

HC-L14b2B

BHCK

8746

HC-L

6410

Quality

HC-L14a2C

BHCK

8739

HC-L

6415

Quality

HC-L14a2C

BHCK

8739

HC-L

6420

Quality

HC-L14b2C

BHCK

8747

HC-L

6423

Quality

HC-L14b2C

BHCK

8747

HC-L

6425

Quality

HC-L14a2D

BHCK

8740

HC-L

6428

Quality

HC-L14a2D

BHCK

8740

HC-L

6430

Quality

HC-L14b2D

BHCK

8748

HC-L

6435

Quality

HC-L14b2D

BHCK

8748

HC-L

9480
9480
9480

Quality
Quality
Quality

HC-L11aA
HC-L11aB
HC-L11aC

BHCK
BHCK
BHCK

8693
8694
8695

HC-L
HC-L
HC-L

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If HC-L13B is greater than 500K, then the sum of HCif bhck8726 gt 500 then (bhck8742 + bhck8746) gt 0 and
L14b1B and HC-L14b2B should be greater than zero and
(bhck8742 + bhck8746) le (bhck8726 * .1)
less than or equal to 10 percent of HC-L13B.
If HC-L13B is less than or equal to 500K, then the sum of HC- if bhck8726 le 500 then (bhck8742 + bhck8746) le (bhck8726
L14b1B and HC-L14b2B should be less than or equal to 10 * .1)
percent of HC-L13B.
If HC-L12C is greater than 500K, then the sum of HCif bhck8723 gt 500 then (bhck8735 + bhck8739) gt 0 and
L14a1C and HC-L14a2C should be greater than zero and
(bhck8735 + bhck8739) le (bhck8723 * .15)
less than or equal to 15 percent of HC-L12C.
If HC-L12C is less than or equal to 500K, then the sum of HC- if bhck8723 le 500 then (bhck8735 + bhck8739) le (bhck8723
L14a1C and HC-L14a2C should be less than or equal to 15 * .15)
percent of HC-L12C.
If HC-L13C is greater than 500K, then the sum of HCif bhck8727 gt 500 then (bhck8743 + bhck8747) gt 0 and
L14b1C and HC-L14b2C should be greater than zero and
(bhck8743 + bhck8747) le (bhck8727 * .15)
less than or equal to 15 percent of HC-L13C.
If HC-L13C is less than or equal to 500K, then the sum of HC- if bhck8727 le 500 then (bhck8743 + bhck8747) le (bhck8727
L14b1C and HC-L14b2C should be less than or equal to 15 * .15)
percent of HC-L13C.
If HC-L12D is greater than 500K, then the sum of HCif bhck8724 gt 500 then (bhck8736 + bhck8740) gt 0 and
L14a1D and HC-L14a2D should be greater than zero and
(bhck8736 + bhck8740) le (bhck8724 * .2)
less than or equal to 20 percent of HC-L12D.
If HC-L12D is less than or equal to 500K, then the sum of HC- if bhck8724 le 500 then (bhck8736 + bhck8740) le (bhck8724
L14a1D and HC-L14a2D should be less than or equal to 20 * .2)
percent of HC-L12D.
If HC-L13D is greater than 500K, then the sum of HCif bhck8728 gt 500 then (bhck8744 + bhck8748) gt 0 and
L14b1D and HC-L14b2D should be greater than zero and
(bhck8744 + bhck8748) le (bhck8728 * .2)
less than or equal to 20 percent of HC-L13D.
If HC-L13D is less than or equal to 500K, then the sum of HC- if bhck8728 le 500 then (bhck8744 + bhck8748) le (bhck8728
L14b1D and HC-L14b2D should be less than or equal to 20 * .2)
percent of HC-L13D.
HC-L11aA should not be null and should not be negative.
bhck8693 ne null and bhck8693 ge 0
HC-L11aB should not be null and should not be negative.
bhck8694 ne null and bhck8694 ge 0
HC-L11aC should not be null and should not be negative.
bhck8695 ne null and bhck8695 ge 0

FR Y-9C: EDIT-62 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9480
9480
9480
9480
9480
9480

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality

9480

Target Item
HC-L11aD
HC-L11bA
HC-L11bB
HC-L11bC
HC-L11bD
HC-L11c1A

8696
8697
8698
8699
8700
8701

HC-L
HC-L
HC-L
HC-L
HC-L
HC-L

HC-L11aD should not be null and should not be negative.
HC-L11bA should not be null and should not be negative.
HC-L11bB should not be null and should not be negative.
HC-L11bC should not be null and should not be negative.
HC-L11bD should not be null and should not be negative.
HC-L11c1A should not be null and should not be negative.

bhck8696 ne null and bhck8696 ge 0
bhck8697 ne null and bhck8697 ge 0
bhck8698 ne null and bhck8698 ge 0
bhck8699 ne null and bhck8699 ge 0
bhck8700 ne null and bhck8700 ge 0
bhck8701 ne null and bhck8701 ge 0

Quality

HC-L11c1B

BHCK

8702

HC-L

HC-L11c1B should not be null and should not be negative.

bhck8702 ne null and bhck8702 ge 0

9480

Quality

HC-L11c1C

BHCK

8703

HC-L

HC-L11c1C should not be null and should not be negative.

bhck8703 ne null and bhck8703 ge 0

9480

Quality

HC-L11c1D

BHCK

8704

HC-L

HC-L11c1D should not be null and should not be negative.

bhck8704 ne null and bhck8704 ge 0

9480

Quality

HC-L11c2A

BHCK

8705

HC-L

HC-L11c2A should not be null and should not be negative.

bhck8705 ne null and bhck8705 ge 0

9480

Quality

HC-L11c2B

BHCK

8706

HC-L

HC-L11c2B should not be null and should not be negative.

bhck8706 ne null and bhck8706 ge 0

9480

Quality

HC-L11c2C

BHCK

8707

HC-L

HC-L11c2C should not be null and should not be negative.

bhck8707 ne null and bhck8707 ge 0

9480

Quality

HC-L11c2D

BHCK

8708

HC-L

HC-L11c2D should not be null and should not be negative.

bhck8708 ne null and bhck8708 ge 0

9480

Quality

HC-L11d1A

BHCK

8709

HC-L

HC-L11d1A should not be null and should not be negative.

bhck8709 ne null and bhck8709 ge 0

9480

Quality

HC-L11d1B

BHCK

8710

HC-L

HC-L11d1B should not be null and should not be negative.

bhck8710 ne null and bhck8710 ge 0

9480

Quality

HC-L11d1C

BHCK

8711

HC-L

HC-L11d1C should not be null and should not be negative.

bhck8711 ne null and bhck8711 ge 0

9480

Quality

HC-L11d1D

BHCK

8712

HC-L

HC-L11d1D should not be null and should not be negative.

bhck8712 ne null and bhck8712 ge 0

9480

Quality

HC-L11d2A

BHCK

8713

HC-L

HC-L11d2A should not be null and should not be negative.

bhck8713 ne null and bhck8713 ge 0

9480

Quality

HC-L11d2B

BHCK

8714

HC-L

HC-L11d2B should not be null and should not be negative.

bhck8714 ne null and bhck8714 ge 0

MARCH 2007

MDRM

Schedule

NOTE section follows edits.
Edit Test

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

Alg Edit Test

FR Y-9C: EDIT-63 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
9480
Quality
HC-L11d2C

Sub
MDRM
Schedule
Series
BHCK
8715
HC-L

HC-L11d2C should not be null and should not be negative.

bhck8715 ne null and bhck8715 ge 0

9480

Quality

HC-L11d2D

BHCK

8716

HC-L

HC-L11d2D should not be null and should not be negative.

bhck8716 ne null and bhck8716 ge 0

9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-L11eA
HC-L11eB
HC-L11eC
HC-L11eD
HC-L12A
HC-L12B
HC-L12C
HC-L12D
HC-L13A
HC-L13B
HC-L13C
HC-L13D
HC-L14a1A

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

3450
3826
8719
8720
A126
A127
8723
8724
8725
8726
8727
8728
8733

HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L

HC-L11eA should not be null and should not be negative.
HC-L11eB should not be null and should not be negative.
HC-L11eC should not be null and should not be negative.
HC-L11eD should not be null and should not be negative.
HC-L12A should not be null and should not be negative.
HC-L12B should not be null and should not be negative.
HC-L12C should not be null and should not be negative.
HC-L12D should not be null and should not be negative.
HC-L13A should not be null and should not be negative.
HC-L13B should not be null and should not be negative.
HC-L13C should not be null and should not be negative.
HC-L13D should not be null and should not be negative.
HC-L14a1A should not be null and should not be negative.

bhck3450 ne null and bhck3450 ge 0
bhck3826 ne null and bhck3826 ge 0
bhck8719 ne null and bhck8719 ge 0
bhck8720 ne null and bhck8720 ge 0
bhcka126 ne null and bhcka126 ge 0
bhcka127 ne null and bhcka127 ge 0
bhck8723 ne null and bhck8723 ge 0
bhck8724 ne null and bhck8724 ge 0
bhck8725 ne null and bhck8725 ge 0
bhck8726 ne null and bhck8726 ge 0
bhck8727 ne null and bhck8727 ge 0
bhck8728 ne null and bhck8728 ge 0
bhck8733 ne null and bhck8733 ge 0

9480

Quality

HC-L14a1B

BHCK

8734

HC-L

HC-L14a1B should not be null and should not be negative.

bhck8734 ne null and bhck8734 ge 0

9480

Quality

HC-L14a1C

BHCK

8735

HC-L

HC-L14a1C should not be null and should not be negative.

bhck8735 ne null and bhck8735 ge 0

9480

Quality

HC-L14a1D

BHCK

8736

HC-L

HC-L14a1D should not be null and should not be negative.

bhck8736 ne null and bhck8736 ge 0

9480

Quality

HC-L14a2A

BHCK

8737

HC-L

HC-L14a2A should not be null and should not be negative.

bhck8737 ne null and bhck8737 ge 0

9480

Quality

HC-L14a2B

BHCK

8738

HC-L

HC-L14a2B should not be null and should not be negative.

bhck8738 ne null and bhck8738 ge 0

9480

Quality

HC-L14a2C

BHCK

8739

HC-L

HC-L14a2C should not be null and should not be negative.

bhck8739 ne null and bhck8739 ge 0

9480

Quality

HC-L14a2D

BHCK

8740

HC-L

HC-L14a2D should not be null and should not be negative.

bhck8740 ne null and bhck8740 ge 0

MARCH 2007

Alg Edit Test

FR Y-9C: EDIT-64 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
9480
Quality
HC-L14b1A

Sub
MDRM
Schedule
Series
BHCK
8741
HC-L

HC-L14b1A should not be null and should not be negative.

bhck8741 ne null and bhck8741 ge 0

9480

Quality

HC-L14b1B

BHCK

8742

HC-L

HC-L14b1B should not be null and should not be negative.

bhck8742 ne null and bhck8742 ge 0

9480

Quality

HC-L14b1C

BHCK

8743

HC-L

HC-L14b1C should not be null and should not be negative.

bhck8743 ne null and bhck8743 ge 0

9480

Quality

HC-L14b1D

BHCK

8744

HC-L

HC-L14b1D should not be null and should not be negative.

bhck8744 ne null and bhck8744 ge 0

9480

Quality

HC-L14b2A

BHCK

8745

HC-L

HC-L14b2A should not be null and should not be negative.

bhck8745 ne null and bhck8745 ge 0

9480

Quality

HC-L14b2B

BHCK

8746

HC-L

HC-L14b2B should not be null and should not be negative.

bhck8746 ne null and bhck8746 ge 0

9480

Quality

HC-L14b2C

BHCK

8747

HC-L

HC-L14b2C should not be null and should not be negative.

bhck8747 ne null and bhck8747 ge 0

9480

Quality

HC-L14b2D

BHCK

8748

HC-L

HC-L14b2D should not be null and should not be negative.

bhck8748 ne null and bhck8748 ge 0

9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-L1a
HC-L1b
HC-L1c1
HC-L1c1a
HC-L1c1b
HC-L1c2
HC-L1d
HC-L1e
HC-L2
HC-L2a
HC-L3
HC-L3a
HC-L4
HC-L6
HC-L7a1A
HC-L7a1B
HC-L7a2A

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

3814
3815
3816
F164
F165
6550
3817
3818
6566
3820
6570
3822
3411
3433
C968
C969
C970

HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L

HC-L1a should not be null and should not be negative.
HC-L1b should not be null and should not be negative.
HC-L1c1 should not be null and should not be negative.
HC-L1c1a should not be null and should not be negative.
HC-L1c1b should not be null and should not be negative.
HC-L1c2 should not be null and should not be negative.
HC-L1d should not be null and should not be negative.
HC-L1e should not be null and should not be negative.
HC-L2 should not be null and should not be negative.
HC-L2a should not be null and should not be negative.
HC-L3 should not be null and should not be negative.
HC-L3a should not be null and should not be negative.
HC-L4 should not be null and should not be negative.
HC-L6 should not be null and should not be negative.
HC-L7a1A should not be null and should not be negative.
HC-L7a1B should not be null and should not be negative.
HC-L7a2A should not be null and should not be negative.

bhck3814 ne null and bhck3814 ge 0
bhck3815 ne null and bhck3815 ge 0
bhck3816 ne null and bhck3816 ge 0
bhckf164 ne null and bhckf164 ge 0
bhckf165 ne null and bhckf165 ge 0
bhck6550 ne null and bhck6550 ge 0
bhck3817 ne null and bhck3817 ge 0
bhck3818 ne null and bhck3818 ge 0
bhck6566 ne null and bhck6566 ge 0
bhck3820 ne null and bhck3820 ge 0
bhck6570 ne null and bhck6570 ge 0
bhck3822 ne null and bhck3822 ge 0
bhck3411 ne null and bhck3411 ge 0
bhck3433 ne null and bhck3433 ge 0
bhckc968 ne null and bhckc968 ge 0
bhckc969 ne null and bhckc969 ge 0
bhckc970 ne null and bhckc970 ge 0

MARCH 2007

Alg Edit Test

FR Y-9C: EDIT-65 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
9480
6450

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Intraseries

6455

Target Item
HC-L7a2B
HC-L7a3A
HC-L7a3B
HC-L7a4A
HC-L7a4B
HC-L7b1A
HC-L7b1B
HC-L7b2A
HC-L7b2B
HC-L8
HC-L9
HC-L9a
HC-L9b
HC-L9c
HC-L9d
HC-L9e
HC-L9f
HC-L9g
HC-M1

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

C971
C972
C973
C974
C975
C219
C221
C220
C222
8765
3430
3432
3434
3435
6561
6562
6568
6586
3459

HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-L
HC-M

Quality

HC-M1

BHCK

3459

HC-M

6465

Quality

HC-M1

BHCK

3459

HC-M

6480

Quality

HC-M5

BHCK

A288

HC-M

6490

Quality

HC-M6

BHCK

3656

HC-M

6501

Intraseries HC-M8

BHCK

C251

HC-M

MARCH 2007

MDRM

Schedule

NOTE section follows edits.
Edit Test
HC-L7a2B should not be null and should not be negative.
HC-L7a3A should not be null and should not be negative.
HC-L7a3B should not be null and should not be negative.
HC-L7a4A should not be null and should not be negative.
HC-L7a4B should not be null and should not be negative.
HC-L7b1A should not be null and should not be negative.
HC-L7b1B should not be null and should not be negative.
HC-L7b2A should not be null and should not be negative.
HC-L7b2B should not be null and should not be negative.
HC-L8 should not be null and should not be negative.
HC-L9 should not be null and should not be negative.
HC-L9a should not be null and should not be negative.
HC-L9b should not be null and should not be negative.
HC-L9c should not be null and should not be negative.
HC-L9d should not be null and should not be negative.
HC-L9e should not be null and should not be negative.
HC-L9f should not be null and should not be negative.
HC-L9g should not be null and should not be negative.
If (HC-M1 (current and previous) does not equal zero) then
HC-M1 (current minus previous) divided by HC-M1
(previous) should be in the range of greater than -20% and
less than 56%.
(HC-24 multiplied by 1000) divided by HC-M1 should be less
than or equal to 100.
If HC-24 does not equal zero or null, then HC-M1 should be
greater than zero.
If HC-M5 is greater than zero, then HC-M5 should not equal
HC-3b or HC-14b.
If HC-8 is greater than zero, then HC-M6 should be less than
or equal to the sum of HC-M13b and HC-8.
For June, September, and December, if HC-M8 (previous) is
equal to 1 (yes), then HC-M8 (current) should equal 1 (yes).

Alg Edit Test
bhckc971 ne null and bhckc971 ge 0
bhckc972 ne null and bhckc972 ge 0
bhckc973 ne null and bhckc973 ge 0
bhckc974 ne null and bhckc974 ge 0
bhckc975 ne null and bhckc975 ge 0
bhckc219 ne null and bhckc219 ge 0
bhckc221 ne null and bhckc221 ge 0
bhckc220 ne null and bhckc220 ge 0
bhckc222 ne null and bhckc222 ge 0
bhck8765 ne null and bhck8765 ge 0
bhck3430 ne null and bhck3430 ge 0
bhck3432 ne null and bhck3432 ge 0
bhck3434 ne null and bhck3434 ge 0
bhck3435 ne null and bhck3435 ge 0
bhck6561 ne null and bhck6561 ge 0
bhck6562 ne null and bhck6562 ge 0
bhck6568 ne null and bhck6568 ge 0
bhck6586 ne null and bhck6586 ge 0
if (bhck3459-q1 ne 0 and bhck3459-q2 ne 0) then
(((bhck3459-q1 - bhck3459-q2) / bhck3459-q2) * 100) gt -20
and (((bhck3459-q1 - bhck3459-q2) / bhck3459-q2) * 100) lt
56
if bhck3459 ne 0 then (bhck3230 * 1000) / bhck3459 le 100
if (bhck3230 ne 0 or bhck3230 ne null) then bhck3459 gt 0
if bhcka288 gt 0 then ((bhcka288 ne bhckb989) and
(bhcka288 ne bhckb995))
if bhck2130 gt 0 then bhck3656 le (bhck2745 + bhck2130)
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckc251-q2 eq 1)) then bhckc251-q1 eq 1

FR Y-9C: EDIT-66 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6520
Quality
HC-M12a

Sub
MDRM
Schedule
Series
BHCK
3164
HC-M

6530

Quality

HC-M12a1

BHCK

6438

HC-M

6533

Quality

HC-M12a1

BHCK

6438

HC-M

6540

Intraseries HC-M14c

BHCK

2333

HC-M

6545

Quality

HC-M15

BHCK

B569

HC-M

6547

Quality

HC-M15

BHCK

B569

HC-M

6549

Intraseries HC-M15

BHCK

B569

HC-M

6550

Intraseries HC-M15

BHCK

B569

HC-M

6555

Intraseries HC-M16

BHCK

B570

HC-M

6560

Quality

HC-12

BHCK

2170

HC-M

6562
6564
9480
9480
9480
9480
9480
9480
9480
9480
9480

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-M23a
HC-M23b
HC-M1
HC-M12a
HC-M12a1
HC-M12b
HC-M2
HC-M3
HC-M4
HC-M5
HC-M6

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

F064
F065
3459
3164
6438
B026
6555
6556
6557
A288
3656

HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

HC-M12a should be less than or equal to HC-M12a1. (+25K) bhck3164 le (bhck6438 + 25)
If HC-M12a is greater than zero, then HC-M12a1 should be
greater than zero.
If HC-M12a1 is greater than zero, then HC-M12a should be
greater than zero.
If HC-M14c (previous) is greater than zero then HC-16
(current) should be greater than zero.
If HC-M15 equals 1 (yes) and HI-5d1 through HI-5d3 is
greater than $100K, then HI-Mem12a should be greater than
zero.
For March, if HI-Mem12a is greater than $10 thousand, then
HC-M15 should equal 1 (yes).
For June, September and December, if HI-Mem12a (current previous) is greater than $10 thousand, then HC-M15 should
equal 1 (yes).
If HC-M15 (previous) equals 1 (yes) then HC-M15 (current)
should equal 1 (yes).
If HC-M16 (previous) is greater than zero, then HC-M16
(current) should be greater than zero.
if HC-12 is greater than or equal to $30 billion, then HC-M22
should not be null.
HC-M23a should be less than or equal to HC-14a.
HC-M23b should be less than or equal to HC-M14d.
HC-M1 should not be null and should not be negative.
HC-M12a should not be null and should not be negative.
HC-M12a1 should not be null and should not be negative.
HC-M12b should not be null and should not be negative.
HC-M2 should not be null and should not be negative.
HC-M3 should not be null and should not be negative.
HC-M4 should not be null and should not be negative.
HC-M5 should not be null and should not be negative.
HC-M6 should not be null and should not be negative.

if bhck3164 gt 0 then bhck6438 gt 0
if bhck6438 gt 0 then bhck3164 gt 0
if bhck2333-q2 gt 0 then bhck3190-q1 gt 0
if (bhckb569 eq 1 and (bhckc886 + bhckc888 + bhckc887) gt
100) then bhck8431 gt 0
if (mm-q1 eq 03 and bhck8431 gt 10) then bhckb569 eq 1
if ((mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhck8431-q1 - bhck8431-q2) gt 10) then bhckb569 eq 1
if (bhckb569-q2 eq 1) then( bhckb569-q1 eq 1)
if (bhckb570-q2 gt 0) then (bhckb570-q1 gt 0)
if bhck2170 ge 30000000 then textc497 ne null
bhckf064 le bhdmb993
bhckf065 le bhct3190
bhck3459 ne null and bhck3459 ge 0
bhck3164 ne null and bhck3164 ge 0
bhck6438 ne null and bhck6438 ge 0
bhckb026 ne null and bhckb026 ge 0
bhck6555 ne null and bhck6555 ge 0
bhck6556 ne null and bhck6556 ge 0
bhck6557 ne null and bhck6557 ge 0
bhcka288 ne null and bhcka288 ge 0
bhck3656 ne null and bhck3656 ge 0

FR Y-9C: EDIT-67 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9480
9480
9490
9500
9500
9500
9500
9500
9500
9500
9500
9500
9500
9510
9510
9510
9510
9510
9510
9510
9510
9510
9510
9510
9510
9510
9520
9520

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-M8
HC-M9
HC-M12c
HC-M12d
HC-M13a
HC-M13b
HC-M13c
HC-M14a
HC-M14b
HC-M14c
HC-M14d
HC-M15
HC-M16
HC-M17
HC-M18
HC-M19a
HC-M19b
HC-M20a
HC-M20b1
HC-M20b2
HC-M20b3
HC-M20c1
HC-M20c1
HC-M20c3
HC-M20d
HC-M21
HC-M23a
HC-M23b

MARCH 2007

Sub
Series
BHCK
BHCK
BHCK
BHCT
BHCK
BHCK
BHCT
BHCK
BHCK
BHCK
BHCT
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

MDRM
C251
6689
5507
0426
2744
2745
2150
2309
2332
2333
3190
B569
B570
C161
C159
C700
C701
C252
4832
4833
4834
5043
5041
5045
5047
C253
F064
F065

Schedule
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M
HC-M

NOTE section follows edits.
Edit Test
HC-M8 should not be null and should not be negative.
HC-M9 should not be null and should not be negative.
HC-M12c should not be null.
HC-M12d should not be null and should not be negative.
HC-M13a should not be null and should not be negative.
HC-M13b should not be null and should not be negative.
HC-M13c should not be null and should not be negative.
HC-M14a should not be null and should not be negative.
HC-M14b should not be null and should not be negative.
HC-M14c should not be null and should not be negative.
HC-M14d should not be null and should not be negative.
HC-M15 should not be null and should not be negative.
HC-M16 should not be null and should not be negative.
HC-M17 should not be negative.
HC-M18 should not be negative.
HC-M19a should not be negative.
HC-M19b should not be negative.
HC-M20a should not be negative.
HC-M20b1 should not be negative.
HC-M20b2 should not be negative.
HC-M20b3 should not be negative.
HC-M20c2 should not be negative.
HC-M20c1 should not be negative.
HC-M20c3 should not be negative.
HC-M20d should not be negative.
HC-M21 should not be negative.
HC-M23a should not be null and should not be negative.
HC-M23b should not be null and should not be negative.

Alg Edit Test
bhckc251 ne null and bhckc251 ge 0
bhck6689 ne null and bhck6689 ge 0
bhck5507 ne null
bhct0426 ne null and bhct0426 ge 0
bhck2744 ne null and bhck2744 ge 0
bhck2745 ne null and bhck2745 ge 0
bhct2150 ne null and bhct2150 ge 0
bhck2309 ne null and bhck2309 ge 0
bhck2332 ne null and bhck2332 ge 0
bhck2333 ne null and bhck2333 ge 0
bhct3190 ne null and bhct3190 ge 0
bhckb569 ne null and bhckb569 ge 0
bhckb570 ne null and bhckb570 ge 0
bhckc161 ge 0 or bhckc161 eq null
bhckc159 ge 0 or bhckc159 eq null
bhckc700 ge 0 or bhckc700 eq null
bhckc701 ge 0 or bhckc701 eq null
bhckc252 ge 0 or bhckc252 eq null
bhck4832 ge 0 or bhck4832 eq null
bhck4833 ge 0 or bhck4833 eq null
bhck4834 ge 0 or bhck4834 eq null
bhck5043 ge 0 or bhck5043 eq null
bhck5041 ge 0 or bhck5041 eq null
bhck5045 ge 0 or bhck5045 eq null
bhck5047 ge 0 or bhck5047 eq null
bhckc253 ge 0 or bhckc253 eq null
bhckf064 ne null and bhckf064 ge 0
bhckf065 ne null and bhckf065 ge 0

FR Y-9C: EDIT-68 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6570
Intraseries HC-N1aB

Sub
MDRM
Schedule
Series
BHCK
2769
HC-N

6575

Intraseries HC-N1bB

BHCK

3494

HC-N

6580

Intraseries HC-N1c1B

BHCK

5399

HC-N

6585

Intraseries HC-N1c2aB

BHCK

C237

HC-N

6590

Intraseries HC-N1c2bB

BHCK

C239

HC-N

MARCH 2007

NOTE section follows edits.
Edit Test
If HC-N1aA (previous) is greater than zero and HC-N1aB
(previous) is greater than zero and the sum of HC-N1aA
(previous) and HC-N1aB (previous) is greater than $1 million
and HC-C1aB (current) is greater than zero, then the sum of
HC-N1aA (current) and HC-N1aB (current) should be greater
than zero.
If HC-N1bA (previous) is greater than zero and HC-N1bB
(previous) is greater than zero and the sum of HC-N1bA
(previous) and HC-N1bB (previous) is greater than $1 million
and HC-C1bB (current) is greater than zero, then the sum of
HC-N1bA (current) and HC-N1bB (current) should be greater
than zero.
If HC-N1c1A (previous) is greater than zero and HC-N1c1B
(previous) is greater than zero and the sum of HC-N1c1A
(previous) and HC-N1c1B (previous) is greater than $1
million and HC-C1c1B (current) is greater than zero, then the
sum of HC-N1c1A (current) and HC-N1c1B (current) should
be greater than zero.
If HC-N1c2aA (previous) is greater than zero and HCN1c2aB (previous) is greater than zero and the sum of HCN1c2aA (previous) and HC-N1c2aB (previous) is greater
than $1 million and HC-C1c2aB (current) is greater than
zero, then the sum of HC-N1c2aA (current) and HC-N1c2aB
(current) should be greater than zero.
If HC-N1c2bA (previous) is greater than zero and HCN1c2bB (previous) is greater than zero and the sum of HCN1c2bA (previous) and HC-N1c2bB (previous) is greater
than $1 million and HC-C1c2bB (current) is greater than
zero, then the sum of HC-N1c2bA (current) and HC-N1c2bB
(current) should be greater than zero.

Alg Edit Test
if (bhck2759-q2 gt 0) and (bhck2769-q2 gt 0) and ((bhck2759q2 + bhck2769-q2) gt 1000) and (bhdm1415-q1 gt 0) then
((bhck2759-q1 + bhck2769-q1) gt 0)

if (bhck3493-q2 gt 0) and (bhck3494-q2 gt 0) and ((bhck3493q2 + bhck3494-q2) gt 1000) and (bhdm1420-q1 gt 0) then
((bhck3493-q1 + bhck3494-q1) gt 0)

if (bhck5398-q2 gt 0) and (bhck5399-q2 gt 0) and ((bhck5398q2 + bhck5399-q2) gt 1000) and (bhdm1797-q1 gt 0) then
((bhck5398-q1 + bhck5399-q1) gt 0)

if (bhckc236-q2 gt 0) and (bhckc237-q2 gt 0) and ((bhckc236q2 + bhckc237-q2) gt 1000) and (bhdm5367-q1 gt 0) then
((bhckc236-q1 + bhckc237-q1) gt 0)

if (bhckc238-q2 gt 0) and (bhckc239-q2 gt 0) and ((bhckc238q2 + bhckc239-q2) gt 1000) and (bhdm5368-q1 gt 0) then
((bhckc238-q1 + bhckc239-q1) gt 0)

FR Y-9C: EDIT-69 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
6595
Intraseries HC-N1dB

Sub
MDRM
Schedule
Series
BHCK
3500
HC-N

6600

Intraseries HC-N1eB

BHCK

3503

HC-N

6605

Intraseries HC-N1fB

BHCK

B573

HC-N

6610

Intraseries HC-N2aB

BHCK

5378

HC-N

If HC-N2aA (previous) is greater than zero and HC-N2aB
if (bhck5377-q2 gt 0) and (bhck5378-q2 gt 0) and ((bhck5377(previous) is greater than zero and the sum of HC-N2aA
q2 + bhck5378-q2) gt 1000) and (bhck1292-q1 + bhck1296(previous) and HC-N2aB (previous) is greater than $1 million q1) gt 0) then ((bhck5377-q1 + bhck5378-q1) gt 0)
and the sum of (HC-C2aA and HC-C2bA) (current) is greater
than zero, then the sum of HC-N2aA (current) and HC-N2aB
(current) should be greater than zero.

6615

Intraseries HC-N2bB

BHCK

5381

HC-N

If HC-N2bA (previous) is greater than zero and HC-N2bB
if (bhck5380-q2 gt 0) and (bhck5381-q2 gt 0) and ((bhck5380(previous) is greater than zero and the sum of HC-N2bA
q2 + bhck5381-q2) gt 1000) and (bhck1292-q1 + bhck1296(previous) and HC-N2bB (previous) is greater than $1 million q1 gt 0) then ((bhck5380-q1 + bhck5381-q1) gt 0)
and the sum of (HC-C2aA and HC-C2bA) (current) is greater
than zero, then the sum of HC-N2bA (current) and HC-N2bB
(current) should be greater than zero.

MARCH 2007

If HC-N1dA (previous) is greater than zero and HC-N1dB
(previous) is greater than zero and the sum of HC-N1dA
(previous) and HC-N1dB (previous) is greater than $1 million
and HC-C1dB (current) is greater than zero, then the sum of
HC-N1dA (current) and HC-N1dB (current) should be greater
than zero.
If HC-N1eA (previous) is greater than zero and HC-N1eB
(previous) is greater than zero and the sum of HC-N1eA
(previous) and HC-N1eB (previous) is greater than $1 million
and HC-C1eB (current) is greater than zero, then the sum of
HC-N1eA (current) and HC-N1eB (current) should be greater
than zero.
If HC-N1fA (previous) is greater than zero and HC-N1fB
(previous) is greater than zero and the sum of HC-N1fA
(previous) and HC-N1fB (previous) is greater than $1 million
and (HC-C1A minus the sum of HC-C1aB through HC-C1eB)
(current) is greater than zero, then the sum of HC-N1fA
(current) and HC-N1fB (current) should be greater than zero.

Alg Edit Test
if (bhck3499-q2 gt 0) and (bhck3500-q2 gt 0) and ((bhck3499q2 + bhck3500-q2) gt 1000) and (bhdm1460-q1 gt 0) then
((bhck3499-q1 + bhck3500-q1) gt 0)

if (bhck3502-q2 gt 0) and (bhck3503-q2 gt 0) and ((bhck3502q2 + bhck3503-q2) gt 1000) and (bhdm1480-q1 gt 0) then
((bhck3502-q1 + bhck3503-q1) gt 0)

if (bhckb572-q2 gt 0) and (bhckb573-q2 gt 0) and ((bhckb572q2 + bhckb573-q2) gt 1000) and (bhck1410-q1 - (bhdm1415q1 + bhdm1420-q1 + bhdm1797-q1 + bhdm5367-q1 +
bhdm5368-q1 + bhdm1460-q1 + bhdm1480-q1)) gt 0) then
((bhckb572-q1 + bhckb573-q1) gt 0)

FR Y-9C: EDIT-70 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6620
Intraseries HC-N3B

Sub
MDRM
Schedule
Series
BHCK
1597
HC-N

6625

Intraseries HC-N4B

BHCK

1607

HC-N

6635

Intraseries HC-N5aB

BHCK

B576

HC-N

6640

Intraseries HC-N5bB

BHCK

B579

HC-N

6645

Intraseries HC-N6B

BHCK

5390

HC-N

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If HC-N3A (previous) is greater than zero and HC-N3B
(previous) is greater than zero and the sum of HC-N3A
(previous) and HC-N3B (previous) is greater than $1 million
and HC-C3A (current) is greater than zero, then the sum of
HC-N3A (current) and HC-N3B (current) should be greater
than zero.
If HC-N4A (previous) is greater than zero and HC-N4B
(previous) is greater than zero and the sum of HC-N4A
(previous) and HC-N4B (previous) is greater than $1 million
and HC-C4B (current) is greater than zero, then the sum of
HC-N4A (current) and HC-N4B (current) should be greater
than zero.
If HC-N5aA (previous) is greater than zero and HC-N5aB
(previous) is greater than zero and the sum of HC-N5aA
(previous) and HC-N5aB (previous) is greater than $1 million
and HC-C6aA (current) is greater than zero, then the sum of
HC-N5aA (current) and HC-N5aB (current) should be greater
than zero.
If HC-N5bA (previous) is greater than zero and HC-N5bB
(previous) is greater than zero and the sum of HC-N5bA
(previous) and HC-N5bB (previous) is greater than $1 million
and the sum of HC-C6bA (current) and HC-C6cA (current) is
greater than zero, then the sum of HC-N5bA (current) and
HC-N5bB (current) should be greater than zero.

if (bhck1594-q2 gt 0) and (bhck1597-q2 gt 0) and ((bhck1594q2 + bhck1597-q2) gt 1000) and (bhck1590-q1 gt 0) then
((bhck1594-q1 + bhck1597-q1) gt 0)

If HC-N6A (previous) is greater than zero and HC-N6B
(previous) is greater than zero and the sum of HC-N6A
(previous) and HC-N6B (previous) is greater than $1 million
and HC-C7A (current) is greater than zero, then the sum of
HC-N6A (current) and HC-N6B (current) should be greater
than zero.

if (bhck5389-q2 gt 0) and (bhck5390-q2 gt 0) and ((bhck5389q2 + bhck5390-q2) gt 1000) and ((bhck2081-q1 gt 0) then
((bhck5389-q1 + bhck5390-q1) gt 0)

if (bhck1606-q2 gt 0) and (bhck1607-q2 gt 0) and ((bhck1606q2 + bhck1607-q2) gt 1000) and (bhdm1766-q1 gt 0) then
((bhck1606-q1 + bhck1607-q1) gt 0)

if (bhckb575-q2 gt 0) and (bhckb576-q2 gt 0) and ((bhckb575q2 + bhckb576-q2) gt 1000) and (bhckb538-q1 gt 0) then
((bhckb575-q1 + bhckb576-q1) gt 0)

if (bhckb578-q2 gt 0) and (bhckb579-q2 gt 0) and ((bhckb578q2 + bhckb579-q2) gt 1000) and ((bhckb539-q1 + bhck2011q1 gt 0) then ((bhckb578-q1 + bhckb579-q1) gt 0)

FR Y-9C: EDIT-71 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6650
Intraseries HC-N7B

Sub
MDRM
Schedule
Series
BHCK
5460
HC-N

6652

Intraseries HC-N8aB

BHCK

F167

HC-N

6655

Intraseries HC-N8bB

BHCK

F170

HC-N

6660

Quality

BHCK

F171

HC-N

HC-N8bC

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If HC-N7A (previous) is greater than zero and HC-N7B
if (bhck5459-q2 gt 0) and (bhck5460-q2 gt 0) and ((bhck5459(previous) is greater than zero and the sum of HC-N7A
q2 + bhck5460-q2) gt 1000) and ((bhck1545-q1 + bhck1564(previous) and HC-N7B (previous) is greater than $1 million q1 gt 0) then ((bhck5459-q1 + bhck5460-q1) gt 0)
and the sum of HC-C9aA (current) and HC-C9bA (current) is
greater than zero, then the sum of HC-N7A (current) and HCN7B (current) should be greater than zero.
If HC-N8aA (previous) is greater than zero and HC-N8aB
(previous) is greater than zero and the sum of HC-N8aA
(previous) and HC-N8aB (previous) is greater than $1 million
and HC-C10aA (current) is greater than zero, then the sum
of HC-N8aA (current) and HC-N8aB (current) should be
greater than zero.
If HC-N8bA (previous) is greater than zero and HC-N8bB
(previous) is greater than zero and the sum of HC-N8bA
(previous) and HC-N8bB (previous) is greater than $1 million
and HC-C10bA (current) is greater than zero, then the sum
of HC-N8bA (current) and HC-N8bB (current) should be
greater than zero.
If HC-C12B is greater than zero, then the sum of (HC-N1a
through HC-N8b) (columns A, B, and C) divided by HC-C12B
should not exceed tolerance of 15%.

if (bhckf166-q2 gt 0) and (bhckf167-q2 gt 0) and ((bhckf166q2 + bhckf167-q2) gt 1000) and ((bhckf162-q1 gt 0) then
((bhckf166-q1 + bhckf167-q1) gt 0)

if (bhckf169-q2 gt 0) and (bhckf170-q2 gt 0) and ((bhckf169q2 + bhckf170-q2) gt 1000) and ((bhckf163-q1 gt 0) then
((bhckf169-q1 + bhckf170-q1) gt 0)

if (bhdm2122 gt 0) then ((bhck2759 + bhck3493 + bhck5398
+ bhckc236 + bhckc238 + bhck3499 + bhck3502 + bhckb572
+ bhck5377 + bhck5380 + bhck1594 + bhck1606 + bhckb575
+ bhckb578 + bhck5389 + bhck5459 + bhckf166 + bhckf169
+ bhck2769 + bhck3494 + bhck5399 + bhckc237 + bhckc239
+ bhck3500 + bhck3503 + bhckb573 + bhck5378 + bhck5381
+ bhck1597 + bhck1607 + bhckb576 + bhckb579 + bhck5390
+ bhck5460 + bhckf167 + bhckf170 + bhck3492 + bhck3495
+ bhck5400 + bhckc229 + bhckc230 +bhck3501 + bhck3504
+ bhckb574 + bhck5379 + bhck5382 + bhck1583 + bhck1608
+ bhckb577 + bhckb580 + bhck5391 + bhck5461 + bhckf168
+ bhckf171) / bhdm2122) * 100 le 15

FR Y-9C: EDIT-72 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
6663
Quality
HC-N9A

Sub
MDRM
Schedule
Series
BHCK
3505
HC-N

6664

Quality

HC-N9B

BHCK

3506

HC-N

If HC-N9B is greater than zero, then the sum of HC-N1aB
through HC-N8bB should not equal HC-N9B.

6665

Quality

HC-N9B

BHCK

3506

HC-N

6666

Quality

HC-N9C

BHCK

3507

HC-N

Sum of HC-N9A and HC-N9B, divided by the sum of HCBM2a through HC-BM2c should not exceed tolerance of
10%.
If HC-N9C is greater than zero, then the sum of HC-N1aC
through HC-N8bC should not equal HC-N9C.

6667

Intraseries HC-N9C

BHCK

3507

HC-N

If HC-N9C (previous) is greater than or equal to $500
thousand, then HC-N9C (current) should be greater than 0.

6670

Quality

HC-N11aA

BHCK

5615

HC-N

6675

Quality

HC-N11aB

BHCK

5616

HC-N

6680

Quality

HC-N11aC

BHCK

5617

HC-N

6690

Quality

HC-NM1C

BHCK

1661

HC-N

If HC-N11A is greater than zero, then the sum of HC-N11aA
and HC-N11bA should be greater than zero.
If HC-N11B is greater than zero, then the sum of HC-N11aB
and HC-N11bB should be greater than zero.
If HC-N11C is greater than zero, then the sum of HC-N11aC
and HC-N11bC should be greater than zero.
Sum of HC-NM1A, HC-NM1B, and HC-NM1C divided by the
sum of HC-C11A and HC-C12A minus the sum of HCC1c1B, HC-C1c2aB, HC-C1c2bB, HC-C6aA, HC-C6bA, and
HC-C6cA should not exceed tolerance of 15%.

MARCH 2007

If HC-N9A is greater than zero, then the sum of HC-N1aA
through HC-N8bA should not equal HC-N9A.

Alg Edit Test
if bhck3505 gt 0 then ((bhck2759 + bhck3493 + bhck5398 +
bhckc236 + bhckc238 + bhck3499 + bhck3502 + bhckb572 +
bhck5377 + bhck5380 + bhck1594 + bhck1606 + bhckb575 +
bhckb578 + bhck5389 + bhck5459 + bhckf166 + bhckf169)
ne bhck3505)
if bhck3506 gt 0 then ((bhck2769 + bhck3494 + bhck5399 +
bhckc237 + bhckc239 + bhck3500 + bhck3503 + bhckb573 +
bhck5378 + bhck5381 + bhck1597 + bhck1607 + bhckb576 +
bhckb579 + bhck5390 + bhck5460 + bhckf167 + bhckf170)
ne bhck3506
if (bhck0383 + bhck0384 + bhck0387) ne 0 then (bhck3505 +
bhck3506) / (bhck0383 + bhck0384 + bhck0387) * 100 le 10
if bhck3507 gt 0 then ((bhck3492 + bhck3495 + bhck5400 +
bhckc229 + bhckc230 + bhck3501 + bhck3504 + bhckb574 +
bhck5379 + bhck5382 + bhck1583 + bhck1608 + bhckb577 +
bhckb580 + bhck5391 + bhck5461 + bhckf168 + bhckf171)
ne bhck3507
if (bhck3507-q2 ge 500) then (bhck3507-q1 gt 0)

if bhck5612 gt 0 then (bhck5615 + bhckc866) gt 0
if bhck5613 gt 0 then (bhck5616 + bhckc867) gt 0
if bhck5614 gt 0 then (bhck5617 + bhckc868) gt 0
if ((bhck2123 + bhck2122) - (bhdm1797 + bhdm5367 +
bhdm5368 + bhckb538 + bhckb539 + bhck2011))) ne 0 then
((bhck1658 + bhck1659 + bhck1661) / ((bhck2123 +
bhck2122) - (bhdm1797 + bhdm5367 + bhdm5368 +
bhckb538 + bhckb539 + bhck2011))) * 100 le 15

FR Y-9C: EDIT-73 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6695
Intraseries HC-NM1B

Sub
MDRM
Schedule
Series
BHCK
1659
HC-N

6700

Quality

HC-NM1C

BHCK

1661

HC-N

6702

Intraseries HC-NM2B

BHCK

6559

HC-N

6705

Quality

HC-NM2C

BHCK

6560

HC-N

6720

Quality

HC-NM5C

BHCK

C226

HC-N

6725

Intraseries HC-NM5B

BHCK

C241

HC-N

6730

Intraseries HC-NM6B

BHCK

3530

HC-N

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If HC-NM1A (previous) is greater than zero and HC-NM1B if (bhck1658-q2 gt 0 and bhck1659-q2 gt 0) and (bhck1658(previous) is greater than zero and the sum of HC-NM1A
q2 + bhck1659-q2) gt 1000 then (bhck1658-q1 + bhck1659(previous) and HC-NM1B (previous) is greater than $1
q1) gt 0
million, then the sum of HC-NM1A (current) and HC-NM1B
(current) should be greater than zero.
If the sum of HC-NM1A, HC-NM1B, and HC-NM1C is greater if (bhck1658 + bhck1659 + bhck1661) gt 0 then (bhck1616
ne (bhck1658 + bhck1659 + bhck1661))
than zero, then HC-CM1 should not equal the sum of HCNM1A, HC-NM1B and HC-NM1C.
If HC-NM2A (previous) is greater than zero and HC-NM2B if (bhck6558-q2 gt 0 and bhck6559-q2 gt 0) and (bhck6558(previous) is greater than zero and the sum of HC-NM2A
q2 + bhck6559-q2) gt 1000 and bhck2746-q1 gt 0 then
(previous) and HC-NM2B (previous) is greater than $1 million (bhck6558-q1 + bhck6559-q1) gt 0
and HC-CM2 (current) is greater than zero, then the sum of
HC-NM2A (current) and HC-NM2B (current) should be
greater than zero.
If the sum of HC-NM2A, HC-NM2B, and HC-NM2C is greater if bhck2746 ne 0 and (bhck6558 + bhck6559 + bhck6560) gt
than $1 million, then the sum of HC-NM2A, HC-NM2B, and 1000 then ((bhck6558 + bhck6559 + bhck6560) / bhck2746)
HC-NM2C divided by HC-CM2 should not exceed tolerance * 100 le 50
of 50%.
If the sum of HC-NM5A, HC-NM5B, and HC-NM5C is greater if bhck5369 ne 0 and (bhckc240 + bhckc241 + bhckc226) gt
than $1 million, then the sum of HC-NM5A, HC-NM5B, and 1000 then ((bhckc240 + bhckc241 + bhckc226) / bhck5369) *
HC-NM5C divided by HC-4a should not exceed tolerance of 100 le 50
50%.
If HC-NM5A (previous) is greater than zero and HC-NM5B if (bhckc240-q2 gt 0 and bhckc241-q2 gt 0) and (bhckc240(previous) is greater than zero and the sum of HC-NM5A
q2 + bhckc241-q2) gt 1000 and (bhck5369-q1 gt 0) then
(previous) and HC-NM5B (previous) is greater than $1 million (bhckc240-q1 + bhckc241-q1) gt 0
and HC-4a (current) is greater than zero, then the sum of HCNM5A (current) and HC-NM5B (current) should be greater
than zero.
If HC-NM6A (previous) is greater than zero and HC-NM6B if (bhck3529-q2 gt 0 and bhck3530-q2 gt 0) and (bhck3529q2 + bhck3530-q2) gt 1000 then (bhck3529-q1 + bhck3530(previous) is greater than zero and the sum of HC-NM6A
q1) gt 0
(previous) and HC-NM6B (previous) is greater than $1
million, then the sum of HC-NM6A (current) and HC-NM6B
(current) should be greater than zero.

FR Y-9C: EDIT-74 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
6733
Quality
HC-NM6B

Sub
MDRM
Schedule
Series
BHCK
3530
HC-N

6736

Intraseries HC-N1aC

BHCK

3492

HC-N

6737

Intraseries HC-N1bC

BHCK

3495

HC-N

6738

Intraseries HC-N1c1C

BHCK

5400

HC-N

6739

Intraseries HC-N1c2aC

BHCK

C229

HC-N

If HC-N1c2aC (current minus previous) is greater than zero, if (bhckc229-q1 - bhckc229-q2) gt 0 then bhckc410-q1
then HC-NM7 (current) should be greater than zero.

6741

Intraseries HC-N1c2bC

BHCK

C230

HC-N

If HC-N1c2bC (current minus previous) is greater than zero, if (bhckc230-q1 - bhckc230-q2) gt 0 then bhckc410-q1
then HC-NM7 (current) should be greater than zero.

6742

Intraseries HC-N1dC

BHCK

3501

HC-N

6743

Intraseries HC-N1eC

BHCK

3504

HC-N

6744

Intraseries HC-N1fC

BHCK

B574

HC-N

6745

Intraseries HC-N2aC

BHCK

5379

HC-N

6746

Intraseries HC-N2bC

BHCK

5382

HC-N

6747

Intraseries HC-N3C

BHCK

1583

HC-N

6748

Intraseries HC-N4C

BHCK

1608

HC-N

6749

Intraseries HC-N5aC

BHCK

B577

HC-N

If HC-N1dC (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.
If HC-N1eC (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.
If HC-N1fC (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.
If HC-N2aC (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.
If HC-N2bC (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.
If HC-N3C (current minus previous) is greater than zero, then
HC-NM7 (current) should be greater than zero.
If HC-N4C (current minus previous) is greater than zero, then
HC-NM7 (current) should be greater than zero.
If HC-N5aC (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.

MARCH 2007

Sum of HC-NM6A and HC-NM6B should be less than or
equal to 15% of the sum of HC-L14a1 and HC-L14b1
(columns A through D).
If HC-N1aC (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.
If HC-N1bC (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.
If HC-N1c1C (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.

Alg Edit Test
(bhck3529 + bhck3530) le ((bhck8733 + bhck8734 +
bhck8735 + bhck8736 + bhck8741 + bhck8742 + bhck8743 +
bhck8744) * 0.15))
if (bhck3492-q1 - bhck3492-q2) gt 0 then bhckc410-q1
if (bhck3495-q1 - bhck3495-q2) gt 0 then bhckc410-q1
if (bhck5400-q1 - bhck5400-q2) gt 0 then bhckc410-q1

if (bhck3501-q1 - bhck3501-q2) gt 0 then bhckc410-q1
if (bhck3504-q1 - bhck3504-q2) gt 0 then bhckc410-q1
if (bhckb574-q1 - bhckb574-q2) gt 0 then bhckc410-q1
if (bhck5379-q1 - bhck5379-q2) gt 0 then bhckc410-q1
if (bhck5382-q1 - bhck5382-q2) gt 0 then bhckc410-q1
if (bhck1583-q1 - bhck1583-q2) gt 0 then bhckc410-q1
if (bhck1608-q1 - bhck1608-q2) gt 0 then bhckc410-q1
if (bhckb577-q1 - bhckb577-q2) gt 0 then bhckc410-q1

FR Y-9C: EDIT-75 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6751
Intraseries HC-N5bC

Sub
MDRM
Schedule
Series
BHCK
B580
HC-N

6752

Intraseries HC-N6C

BHCK

5391

HC-N

6753

Intraseries HC-N7C

BHCK

5461

HC-N

6754

Intraseries HC-N8aC

BHCK

F168

HC-N

6755

Intraseries HC-N8bC

BHCK

F171

HC-N

6756

Intraseries HC-N9C

BHCK

3507

HC-N

6757

Intraseries HC-NM7

BHCK

C410

HC-N

9520
9520
9520
9520
9520
9520
9520

Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-N10A
HC-N10B
HC-N10C
HC-N11A
HC-N11aA
HC-N11aB
HC-N11aC

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

5524
5525
5526
5612
5615
5616
5617

9520
9520
9520
9520

Quality
Quality
Quality
Quality

HC-N11B
HC-N11bA
HC-N11bB
HC-N11bC

BHCK
BHCK
BHCK
BHCK

9520
9520
9520
9520
9520

Quality
Quality
Quality
Quality
Quality

HC-N11C
HC-N1aA
HC-N1aB
HC-N1aC
HC-N1bA

BHCK
BHCK
BHCK
BHCK
BHCK

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N

If HC-N5bC (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.
If HC-N6C (current minus previous) is greater than zero, then
HC-NM7 (current) should be greater than zero.
If HC-N7C (current minus previous) is greater than zero, then
HC-NM7 (current) should be greater than zero.
If HC-N8aC (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.
If HC-N8bC (current minus previous) is greater than zero,
then HC-NM7 (current) should be greater than zero.
If HC-N9C (current minus previous) is greater than zero, then
HC-NM7 (current) should be greater than zero.
If HC-N10c (current minus previous) is greater than zero,
then HC-NM7 should be greater than or equal to HC-N10c
(current minus previous).
HC-N10A should not be null and should not be negative.
HC-N10B should not be null and should not be negative.
HC-N10C should not be null and should not be negative.
HC-N11A should not be null and should not be negative.
HC-N11aA should not be null and should not be negative.
HC-N11aB should not be null and should not be negative.
HC-N11aC should not be null and should not be negative.

bhck5524 ne null and bhck5524 ge 0
bhck5525 ne null and bhck5525 ge 0
bhck5526 ne null and bhck5526 ge 0
bhck5612 ne null and bhck5612 ge 0
bhck5615 ne null and bhck5615 ge 0
bhck5616 ne null and bhck5616 ge 0
bhck5617 ne null and bhck5617 ge 0

5613
C866
C867
C868

HC-N
HC-N
HC-N
HC-N

HC-N11B should not be null and should not be negative.
HC-N11bA should not be null and should not be negative.
HC-N11bB should not be null and should not be negative.
HC-N11bC should not be null and should not be negative.

bhck5613 ne null and bhck5613 ge 0
bhckc866 ne null and bhckc866 ge 0
bhckc867 ne null and bhckc867 ge 0
bhckc868 ne null and bhckc868 ge 0

5614
2759
2769
3492
3493

HC-N
HC-N
HC-N
HC-N
HC-N

HC-N11C should not be null and should not be negative.
HC-N1aA should not be null and should not be negative.
HC-N1aB should not be null and should not be negative.
HC-N1aC should not be null and should not be negative.
HC-N1aC should not be null and should not be negative.

bhck5614 ne null and bhck5614 ge 0
bhck2759 ne null and bhck2759 ge 0
bhck2769 ne null and bhck2769 ge 0
bhck3492 ne null and bhck3492 ge 0
bhck3493 ne null and bhck3493 ge 0

if (bhckb580-q1 - bhckb580-q2) gt 0 then bhckc410-q1
if (bhck5391-q1 - bhck5391-q2) gt 0 then bhckc410-q1
if (bhck5461-q1 - bhck5461-q2) gt 0 then bhckc410-q1
if (bhckf168-q1 - bhckf168-q2) gt 0 then bhckc410-q1 gt 0
if (bhckf171-q1 - bhckf171-q2) gt 0 then bhckc410-q1 gt 0
if (bhck3507-q1 - bhck3507-q2) gt 0 then bhckc410-q1
if (bhck5526-q1 - bhck5526-q2) gt 0 then bhckc410 ge
(bhck5526-q1 - bhck5526-q2)

FR Y-9C: EDIT-76 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9520
9520
9520
9520
9520
9520

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality

9520

Target Item
HC-N1bB
HC-N1bC
HC-N1c1A
HC-N1c1B
HC-N1c1C
HC-N1c2aA

3494
3495
5398
5399
5400
C236

HC-N
HC-N
HC-N
HC-N
HC-N
HC-N

HC-N1bB should not be null and should not be negative.
HC-N1bB should not be null and should not be negative.
HC-N1c1A should not be null and should not be negative.
HC-N1c1B should not be null and should not be negative.
HC-N1c1C should not be null and should not be negative.
HC-N1c2aA should not be null and should not be negative.

bhck3494 ne null and bhck3494 ge 0
bhck3495 ne null and bhck3495 ge 0
bhck5398 ne null and bhck5398 ge 0
bhck5399 ne null and bhck5399 ge 0
bhck5400 ne null and bhck5400 ge 0
bhckc236 ne null and bhckc236 ge 0

Quality

HC-N1c2aB

BHCK

C237

HC-N

HC-N1c2aB should not be null and should not be negative.

bhckc237 ne null and bhckc237 ge 0

9520

Quality

HC-N1c2aC

BHCK

C229

HC-N

HC-N1c2aC should not be null and should not be negative.

bhckc229 ne null and bhckc229 ge 0

9520

Quality

HC-N1c2bA

BHCK

C238

HC-N

HC-N1c2bA should not be null and should not be negative.

bhckc238 ne null and bhckc238 ge 0

9520

Quality

HC-N1c2bB

BHCK

C239

HC-N

HC-N1c2bB should not be null and should not be negative.

bhckc239 ne null and bhckc239 ge 0

9520

Quality

HC-N1c2bC

BHCK

C230

HC-N

HC-N1c2bC should not be null and should not be negative.

bhckc230 ne null and bhckc230 ge 0

9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-N1dA
HC-N1dB
HC-N1dC
HC-N1eA
HC-N1eB
HC-N1eC
HC-N1fA
HC-N1fB
HC-N1fC
HC-N2aA
HC-N2aB
HC-N2aC
HC-N2bA
HC-N2bB
HC-N2bC
HC-N3A

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

3499
3500
3501
3502
3503
3504
B572
B573
B574
5377
5378
5379
5380
5381
5382
1594

HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N

HC-N1dA should not be null and should not be negative.
HC-N1dB should not be null and should not be negative.
HC-N1dC should not be null and should not be negative.
HC-N1eA should not be null and should not be negative.
HC-N1eB should not be null and should not be negative.
HC-N1eC should not be null and should not be negative.
HC-N1fA should not be null and should not be negative.
HC-N1fB should not be null and should not be negative.
HC-N1fC should not be null and should not be negative.
HC-N2aA should not be null and should not be negative.
HC-N2aB should not be null and should not be negative.
HC-N2aC should not be null and should not be negative.
HC-N2bA should not be null and should not be negative.
HC-N2bB should not be null and should not be negative.
HC-N2bC should not be null and should not be negative.
HC-N3A should not be null and should not be negative.

bhck3499 ne null and bhck3499 ge 0
bhck3500 ne null and bhck3500 ge 0
bhck3501 ne null and bhck3501 ge 0
bhck3502 ne null and bhck3502 ge 0
bhck3503 ne null and bhck3503 ge 0
bhck3504 ne null and bhck3504 ge 0
bhckb572 ne null and bhckb572 ge 0
bhckb573 ne null and bhckb573 ge 0
bhckb574 ne null and bhckb574 ge 0
bhck5377 ne null and bhck5377 ge 0
bhck5378 ne null and bhck5378 ge 0
bhck5379 ne null and bhck5379 ge 0
bhck5380 ne null and bhck5380 ge 0
bhck5381 ne null and bhck5381 ge 0
bhck5382 ne null and bhck5382 ge 0
bhck1594 ne null and bhck1594 ge 0

MARCH 2007

MDRM

Schedule

NOTE section follows edits.
Edit Test

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

Alg Edit Test

FR Y-9C: EDIT-77 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520
9520

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-N3B
HC-N3C
HC-N4A
HC-N4B
HC-N4C
HC-N5aA
HC-N5aB
HC-N5aC
HC-N5bA
HC-N5bB
HC-N5bC
HC-N6A
HC-N6B
HC-N6C
HC-N7A
HC-N7B
HC-N7C
HC-N8aA
HC-N8aB
HC-N8aC
HC-N8bA
HC-N8bB
HC-N8bC
HC-N9A
HC-N9B
HC-N9C
HC-NM1A
HC-NM1B
HC-NM1C
HC-NM2A
HC-NM2B
HC-NM2C
HC-NM3A

MARCH 2007

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

MDRM
1597
1583
1606
1607
1608
B575
B576
B577
B578
B579
B580
5389
5390
5391
5459
5460
5461
F166
F167
F168
F169
F170
F171
3505
3506
3507
1658
1659
1661
6558
6559
6560
3508

Schedule
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N

NOTE section follows edits.
Edit Test
HC-N3B should not be null and should not be negative.
HC-N3C should not be null and should not be negative.
HC-N4A should not be null and should not be negative.
HC-N4B should not be null and should not be negative.
HC-N4C should not be null and should not be negative.
HC-N5aA should not be null and should not be negative.
HC-N5aB should not be null and should not be negative.
HC-N5aC should not be null and should not be negative.
HC-N5bA should not be null and should not be negative.
HC-N5bB should not be null and should not be negative.
HC-N5bC should not be null and should not be negative.
HC-N6A should not be null and should not be negative.
HC-N6B should not be null and should not be negative.
HC-N6C should not be null and should not be negative.
HC-N7A should not be null and should not be negative.
HC-N7B should not be null and should not be negative.
HC-N7C should not be null and should not be negative.
HC-N8aA should not be null and should not be negative.
HC-N8aB should not be null and should not be negative.
HC-N8aC should not be null and should not be negative.
HC-N8bA should not be null and should not be negative.
HC-N8bB should not be null and should not be negative.
HC-N8bC should not be null and should not be negative.
HC-N9A should not be null and should not be negative.
HC-N9B should not be null and should not be negative.
HC-N9C should not be null and should not be negative.
HC-NM1A should not be null and should not be negative.
HC-NM1B should not be null and should not be negative.
HC-NM1C should not be null and should not be negative.
HC-NM2A should not be null and should not be negative.
HC-NM2B should not be null and should not be negative.
HC-NM2C should not be null and should not be negative.
HC-NM3A should not be null and should not be negative.

Alg Edit Test
bhck1597 ne null and bhck1597 ge 0
bhck1583 ne null and bhck1583 ge 0
bhck1606 ne null and bhck1606 ge 0
bhck1607 ne null and bhck1607 ge 0
bhck1608 ne null and bhck1608 ge 0
bhckb575 ne null and bhckb575 ge 0
bhckb576 ne null and bhckb576 ge 0
bhckb577 ne null and bhckb577 ge 0
bhckb578 ne null and bhckb578 ge 0
bhckb579 ne null and bhckb579 ge 0
bhckb580 ne null and bhckb580 ge 0
bhck5389 ne null and bhck5389 ge 0
bhck5390 ne null and bhck5390 ge 0
bhck5391 ne null and bhck5391 ge 0
bhck5459 ne null and bhck5459 ge 0
bhck5460 ne null and bhck5460 ge 0
bhck5461 ne null and bhck5461 ge 0
bhckf166 ne null and bhckf166 ge 0
bhckf167 ne null and bhckf167 ge 0
bhckf168 ne null and bhckf168 ge 0
bhckf169 ne null and bhckf169 ge 0
bhckf170 ne null and bhckf170 ge 0
bhckf171 ne null and bhckf171 ge 0
bhck3505 ne null and bhck3505 ge 0
bhck3506 ne null and bhck3506 ge 0
bhck3507 ne null and bhck3507 ge 0
bhck1658 ne null and bhck1658 ge 0
bhck1659 ne null and bhck1659 ge 0
bhck1661 ne null and bhck1661 ge 0
bhck6558 ne null and bhck6558 ge 0
bhck6559 ne null and bhck6559 ge 0
bhck6560 ne null and bhck6560 ge 0
bhck3508 ne null and bhck3508 ge 0

FR Y-9C: EDIT-78 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9520
9520
9520
9520
9520
9530
9530
9540
9540
9540

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

9540

Target Item
HC-NM3B
HC-NM3C
HC-NM5A
HC-NM5B
HC-NM5C
HC-NM6A
HC-NM6B
HC-NM7
HC-NM8
HC-NM9aA

1912
1913
C240
C241
C226
3529
3530
C410
C411
F172

HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N
HC-N

HC-NM3B should not be null and should not be negative.
HC-NM3C should not be null and should not be negative.
HC-NM5A should not be null and should not be negative.
HC-NM5B should not be null and should not be negative.
HC-NM5C should not be null and should not be negative.
HC-NM6A should not be negative.
HC-NM6B should not be negative.
HC-NM7 should not be null and should not be negative.
HC-NM8 should not be null and should not be negative.
HC-NM9aA should not be null and should not be negative.

bhck1912 ne null and bhck1912 ge 0
bhck1913 ne null and bhck1913 ge 0
bhckc240 ne null and bhckc240 ge 0
bhckc241 ne null and bhckc241 ge 0
bhckc226 ne null and bhckc226 ge 0
bhck3529 ge 0 or bhck3529 eq null
bhck3530 ge 0 or bhck3530 eq null
bhckc410 ne null and bhckc410 ge 0
bhckc411 ne null and bhckc411 ge 0
bhckf172 ne null and bhckf172 ge 0

Quality

HC-NM9aB

BHCK

F174

HC-N

HC-NM9aB should not be null and should not be negative.

bhckf174 ne null and bhckf174 ge 0

9540

Quality

HC-NM9aC

BHCK

F176

HC-N

HC-NM9aC should not be null and should not be negative.

bhckf176 ne null and bhckf176 ge 0

9540

Quality

HC-NM9bA

BHCK

F173

HC-N

HC-NM9bA should not be null and should not be negative.

bhckf173 ne null and bhckf173 ge 0

9540

Quality

HC-NM9bB

BHCK

F175

HC-N

HC-NM9bB should not be null and should not be negative.

bhckf175 ne null and bhckf175 ge 0

9540

Quality

HC-NM9bC

BHCK

F177

HC-N

HC-NM9bC should not be null and should not be negative.

bhckf177 ne null and bhckf177 ge 0

9540

Quality

HC-NM10aA

BHCK

F178

HC-N

HC-NM10aA should not be null and should not be negative. bhckf178 ne null and bhckf178 ge 0

9540

Quality

HC-NM10aB

BHCK

F180

HC-N

HC-NM10aB should not be null and should not be negative. bhckf180 ne null and bhckf180 ge 0

9540

Quality

HC-NM10aC

BHCK

F182

HC-N

HC-NM10aC should not be null and should not be negative. bhckf182 ne null and bhckf182 ge 0

9540

Quality

HC-NM10bA

BHCK

F179

HC-N

HC-NM10bA should not be null and should not be negative. bhckf179 ne null and bhckf179 ge 0

9540

Quality

HC-NM10bB

BHCK

F181

HC-N

HC-NM10bB should not be null and should not be negative. bhckf181 ne null and bhckf181 ge 0

9540

Quality

HC-NM10bC

BHCK

F183

HC-N

HC-NM10bC should not be null and should not be negative. bhckf183 ne null and bhckf183 ge 0

MARCH 2007

MDRM

Schedule

NOTE section follows edits.
Edit Test

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

Alg Edit Test

FR Y-9C: EDIT-79 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
0052
Quality
HC-P5

Sub
MDRM
Schedule
Series
BHCK
F184
HC-P

0053

Intraseries HC-P5

BHCK

F184

HC-P

0061

Intraseries HC-P4a

BHCK

F072

0062

Intraseries HC-P4b

BHCK

6759

Intraseries HC-P4b

6760

Intraseries HC-P1a

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

For March, HC-P5 should be less than or equal to the sum of
HI-5f, HI-5g, and HI-5i.
For June, September and December, HC-P5 should be less
than or equal to the sum of HI-5f, HI-5g, and HI-5i (current
minus previous).

if (mm-q1 eq 03) then (bhckf184 le (bhckb492 + bhckb493 +
bhck8560))
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckf184-q1 le (bhckb492-q1 + bhckb493-q1 + bhck8560q1) - (bhckb492-q2 + bhckb493-q2 + bhck8560-q2))

HC-P

HC-P4a (current) should be within 95% and 100% of (HCP4a (previous) + (HC-P1a + HC-P2a - HC-P3a)).

F073

HC-P

HC-P4b (current) should be within 95% and 100% of (HCP4b (previous) + (HC-P1b + HC-P2b - HC-P3b)).

(bhckf072-q1 le (bhckf072-q2 + (bhckf066-q1 + bhckf068-q1 bhckf070-q1)) and (bhckf072-q1 ge (0.95 * (bhckf066-q1 +
bhckf068-q1 - bhckf070-q1)))
(bhckf073-q1 le (bhckf073-q2 + (bhckf067-q1 + bhckf069-q1 bhckf071-q1)) and (bhckf073-q1 ge (0.95 * (bhckf073-q2 +
(bhckf067-q1 + bhckf069-q1 - bhckf071-q1)))

BHCK

F073

HC-P

If the absolute value of HC-4a (current minus previous) is
greater than $10M and the sum of the absolute value of
current HC-C1c2aB and HC-C1c2bB minus the sum of the
absolute value of previous HC-C1c2aB and HC-C1c2bB is
greater than $10M and the absolute value of HC-4a
(previous minus prior quarter) is greater than $10M and the
sum of the absolute value of previous HC-C1c2aB and HCC1c2bB minus the sum of the absolute value of prior HCC1c2aB and HC-C1c2bB is greater than $10M then the sum
of HC-P1a through HC-P2b, HC-P4a, and HC-P4b should be
greater than 0.

if (((bhck5369-q1 - bhck5369-q2) gt 10000 or ((bhck5369-q1 bhck5369-q2) * -1) gt 10000) and ((bhdm5367-q1 +
bhdm5368-q1) - (bhdm5367-q2 + bhdm5368-q2) gt 10000 or
(((bhdm5367-q1 + bhdm5368-q1) - (bhdm5367-q2 +
bhdm5368-q2)) * -1) gt 10000) and ((bhck5369-q2 bhck5369-q3) gt 10000 or ((bhck5369-q2 - bhck5369-q3) * 1) gt 10000) and ((bhdm5367-q2 + bhdm5368-q2) (bhdm5367-q3 + bhdm5368-q3) gt 10000 or (((bhdm5367-q2
+ bhdm5368-q2) - (bhdm5367-q3 + bhdm5368-q3)) * -1) gt
10000)) then (bhckf066-q1 + bhckf067-q1 + bhckf068-q1 +
bhckf069-q1 + bhckf072-q1 + bhckf073-q1) gt 0

BHCK

F066

HC-P

If HC-12 (previous calendar year June) is greater than or
equal to $1 billion, then HC-P1a should be greater than or
equal to zero.

if (mm-q1 eq 03 and bhck2170-q4 ge 1000000) then
bhckf066-q1 ge 0 or if (mm-q1 eq 06 and bhck2170-q5 ge
1000000) then bhckf066-q1 ge 0 or if (mm-q1 eq 09 and
bhck2170-q6 ge 1000000) then bhckf066-q1 ge 0 or if (mmq1 eq 12 and bhck2170-q7 ge 1000000) then bhckf066-q1
ge 0)

FR Y-9C: EDIT-80 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
6762
Intraseries HC-P1b

Sub
MDRM
Schedule
Series
BHCK
F067
HC-P

6763

Intraseries HC-P2a

BHCK

F068

HC-P

If HC-12 (previous calendar year June) is greater than or
equal to $1 billion, then HC-P2a should be greater than or
equal to zero.

6764

Intraseries HC-P2b

BHCK

F069

HC-P

If HC-12 (previous calendar year June) is greater than or
equal to $1 billion, then HC-P2b should be greater than or
equal to zero.

6766

Intraseries HC-P3a

BHCK

F070

HC-P

If HC-12 (previous calendar year June) is greater than or
equal to $1 billion, then HC-P3a should be greater than or
equal to zero.

6767

Intraseries HC-P3b

BHCK

F071

HC-P

If HC-12 (previous calendar year June) is greater than or
equal to $1 billion, then HC-P3b should be greater than or
equal to zero.

MARCH 2007

If HC-12 (previous calendar year June) is greater than or
equal to $1 billion, then HC-P1b should be greater than or
equal to zero.

Alg Edit Test
if (mm-q1 eq 03 and bhck2170-q4 ge 1000000) then
bhckf067-q1 ge 0 or if (mm-q1 eq 06 and bhck2170-q5 ge
1000000) then bhckf067-q1 ge 0 or if (mm-q1 eq 09 and
bhck2170-q6 ge 1000000) then bhckf067-q1 ge 0 or if (mmq1 eq 12 and bhck2170-q7 ge 1000000) then bhckf067-q1
ge 0)
if (mm-q1 eq 03 and bhck2170-q4 ge 1000000) then
bhckf068-q1 ge 0 or if (mm-q1 eq 06 and bhck2170-q5 ge
1000000) then bhckf068-q1 ge 0 or if (mm-q1 eq 09 and
bhck2170-q6 ge 1000000) then bhckf068-q1 ge 0 or if (mmq1 eq 12 and bhck2170-q7 ge 1000000) then bhckf068-q1
ge 0)
if (mm-q1 eq 03 and bhck2170-q4 ge 1000000) then
bhckf069-q1 ge 0 or if (mm-q1 eq 06 and bhck2170-q5 ge
1000000) then bhckf069-q1 ge 0 or if (mm-q1 eq 09 and
bhck2170-q6 ge 1000000) then bhckf069-q1 ge 0 or if (mmq1 eq 12 and bhck2170-q7 ge 1000000) then bhckf069-q1
ge 0)
if (mm-q1 eq 03 and bhck2170-q4 ge 1000000) then
bhckf070-q1 ge 0 or if (mm-q1 eq 06 and bhck2170-q5 ge
1000000) then bhckf070-q1 ge 0 or if (mm-q1 eq 09 and
bhck2170-q6 ge 1000000) then bhckf070-q1 ge 0 or if (mmq1 eq 12 and bhck2170-q7 ge 1000000) then bhckf070-q1
ge 0)
if (mm-q1 eq 03 and bhck2170-q4 ge 1000000) then
bhckf071-q1 ge 0 or if (mm-q1 eq 06 and bhck2170-q5 ge
1000000) then bhckf071-q1 ge 0 or if (mm-q1 eq 09 and
bhck2170-q6 ge 1000000) then bhckf071-q1 ge 0 or if (mmq1 eq 12 and bhck2170-q7 ge 1000000) then bhckf071-q1
ge 0)

FR Y-9C: EDIT-81 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
6768
Intraseries HC-P4a

Sub
MDRM
Schedule
Series
BHCK
F072
HC-P

6769

Intraseries HC-P4b

BHCK

F073

HC-P

If HC-12 (previous calendar year June) is greater than or
equal to $1 billion, then HC-P4b should be greater than or
equal to zero.

9550
9550
9550
9550
9550
9550
9550
9550
9550
0054

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-P1a
HC-P1b
HC-P2a
HC-P2b
HC-P3a
HC-P3b
HC-P4a
HC-P4b
HC-P5
HC-Q1A

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

F066
F067
F068
F069
F070
F071
F072
F073
F184
F243

HC-P
HC-P
HC-P
HC-P
HC-P
HC-P
HC-P
HC-P
HC-P
HC-Q

0055

Quality

HC-Q2A

BHCK

F246

HC-Q

0056

Quality

HC-Q2aA

BHCK

F240

HC-Q

0057

Quality

HC-Q3A

BHCK

F249

HC-Q

0058

Quality

HC-Q4A

BHCK

F252

HC-Q

0059

Quality

HC-Q5A

BHCK

F255

HC-Q

HC-P1a should not be negative.
HC-P1b should not be negative.
HC-P2a should not be negative.
HC-P2b should not be negative.
HC-P3a should not be negative.
HC-P3b should not be negative.
HC-P4a should not be negative.
HC-P4b should not be negative.
HC-P5 should not be negative.
Sum of HC-Q1B and HC-Q1C should be less than or equal
to HC-Q1A.
Sum of HC-Q2B and HC-Q2C should be less than or equal
to HC-Q2A.
Sum of HC-Q2aB and HC-Q2aC should be less than or
equal to HC-Q2aA.
Sum of HC-Q3B and HC-Q3C should be less than or equal
to HC-Q3A.
Sum of HC-Q4B and HC-Q4C should be less than or equal
to HC-Q4A.
Sum of HC-Q5B and HC-Q5C should be less than or equal
to HC-Q5A.

MARCH 2007

If HC-12 (previous calendar year June) is greater than or
equal to $1 billion, then HC-P4a should be greater than or
equal to zero.

Alg Edit Test
if (mm-q1 eq 03 and bhck2170-q4 ge 1000000) then
bhckf072-q1 ge 0 or if (mm-q1 eq 06 and bhck2170-q5 ge
1000000) then bhckf072-q1 ge 0 or if (mm-q1 eq 09 and
bhck2170-q6 ge 1000000) then bhckf072-q1 ge 0 or if (mmq1 eq 12 and bhck2170-q7 ge 1000000) then bhckf072-q1
ge 0)
if (mm-q1 eq 03 and bhck2170-q4 ge 1000000) then
bhckf073-q1 ge 0 or if (mm-q1 eq 06 and bhck2170-q5 ge
1000000) then bhckf073-q1 ge 0 or if (mm-q1 eq 09 and
bhck2170-q6 ge 1000000) then bhckf073-q1 ge 0 or if (mmq1 eq 12 and bhck2170-q7 ge 1000000) then bhckf073-q1
ge 0)
bhckf066 ge 0 or bhckf066 eq null
bhckf067 ge 0 or bhckf067 eq null
bhckf068 ge 0 or bhckf068 eq null
bhckf069 ge 0 or bhckf069 eq null
bhckf070 ge 0 or bhckf070 eq null
bhckf071 ge 0 or bhckf071 eq null
bhckf072 ge 0 or bhckf072 eq null
bhckf073 ge 0 or bhckf073 eq null
bhckf184 ge 0 or bhckf184 eq null
(bhckf244 + bhckf245) le bhckf243
(bhckf247 + bhckf248) le bhckf246
(bhckf241 + bhckf242) le bhckf240
(bhckf250 + bhckf251) le bhckf249
(bhckf253 + bhckf254) le bhckf252
(bhckf256 + bhckf257) le bhckf255

FR Y-9C: EDIT-82 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
0060
Quality
HC-Q6A

Sub
MDRM
Schedule
Series
BHCK
F258
HC-Q

0063

Quality

HC-Q2A

BHCK

F246

HC-Q

0064

Quality

HC-Q5A

BHCK

F255

HC-Q

6770

Quality

HC-R2

BHCK

8434

HC-R

6772

Quality

HC-R2

BHCK

8434

HC-R

6774

Quality

HC-R2

BHCK

8434

HC-R

6776

Quality

HC-R3

BHCK

A221

HC-R

6778

Quality

HC-R4

BHCK

4336

HC-R

6780

Quality

HC-R7a

BHCK

B590

HC-R

6782

Quality

HC-R6b

BHCK

C502

HC-R

6785
6790
6800

Quality
Quality
Quality

HC-R9b
HC-R11
HC-R12

BHCK
BHCK
BHCK

5610
8274
5306

HC-R
HC-R
HC-R

6815

Intraseries HC-R12

BHCK

5306

HC-R

MARCH 2007

NOTE section follows edits.
Edit Test
Sum of HC-Q6B and HC-Q6C should be less than or equal
to HC-Q6A.
If HC-Q2A is greater than zero, then HC-Q2A should equal
HC-5.
If HC-Q5A is greater than zero, then HC-Q5A should equal
HC-15.
If the absolute value of HC-B8D minus HC-B8C is greater
than $50K, then HC-R2 should not equal zero.
If HI-Mem13 equals 0 (no) and the absolute value of HC-B8D
minus HC-B8C is greater than $250K, then HC-B8D minus
HC-B8C should not equal HC-R2.
If the absolute value of [HC-R2 plus (HC-B8C minus HCB8D)] is greater than $100k then the sum of HC-F2 and HCG2 should be greater than zero.
If HC-B7C minus HC-B7D is greater than $100K, then HCR3 divided by the sum of HC-B7C minus HC-B7D should be
greater than or equal to 55%.
Sum of HC-R2 and HC-R4 should be less than or equal to
HC-26b. (+10K)
If HC-R7a minus the sum of HC-10a and HC-M12c is less
than -$100k or greater than $100k, then HC-R7a divided by
the sum of HC-10a and HC-M12c should be in the range of
85-105%.
If HC-19b is greater than zero, then HC-R6b should be
greater than zero.
HC-R9b should be less than or equal to HC-F2 (+200k).
HC-R11 should be greater than zero.
If HC-19a is greater than zero, then HC-R12 should be
greater than zero and less than or equal to HC-19a.
If HC-R12 (current minus previous) is greater than $10k then
HC-R12 (current minus previous) should be less than or
equal to HC-19a (current minus previous).

Alg Edit Test
(bhckf259 + bhckf260) le bhckf258
if bhckf246 gt 0 then bhckf246 eq bhck3545
if bhckf255 gt 0 then bhckf255 eq bhck3548
if (bhct1773 - bhck1772) gt 50 or (bhct1773 - bhck1772) * -1
gt 50 then bhck8434 ne 0
if bhcka530 eq 0 and (((bhct1773 - bhck1772) gt 250) or
((bhck1772 - bhct1773) gt 250)) then (bhct1773 - bhck1772)
ne bhck8434
if (((bhck8434 + bhck1772 - bhct1773) gt 100) or ((bhck8434
+ bhck1772 - bhct1773) lt -100)) then ((bhck2148 +
bhck3049) gt 0)
if (bhcka510 - bhcka511 gt 100) then (bhcka221/(bhcka510 bhcka511))*100 ge 55
(bhck8434 + bhck4336) le (bhckb530 + 10)
if (bhckb590 - (bhck3163 + bhck5507) lt -100) or (bhckb590 (bhck3163 + bhck5507) gt 100) then (bhck3163 + bhck5507)
ne 0 and (bhckb590 / (bhck3163 + bhck5507) * 100 ge 85
and (bhckb590 / (bhck3163 + bhck5507) * 100 le 105
if bhckc699 gt 0 then bhckc502 gt 0
bhck5610 le (bhck2148 + 200)
bhck8274 gt 0
if bhck4062 gt 0 then bhck5306 gt 0 and bhck5306 le
bhck4062
if (bhck5306-q1 - bhck5306-q2 gt 10) then (bhck5306-q1 bhck5306-q2) le (bhck4062-q1 - bhck4062-q2)

FR Y-9C: EDIT-83 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6816
Quality
HC-R13
6817
Quality
HC-R14

Sub
MDRM
Schedule
Series
BHCK
B593
HC-R
BHCK
5310
HC-R

6821

Quality

HC-R14

BHCK

5310

HC-R

6824

Quality

HC-R15

BHCK

2221

HC-R

6826

Quality

HC-R15

BHCK

2221

HC-R

6828
6830
6845

Quality
HC-R6b
Quality
HC-R19
Intraseries HC-R19

BHCK
BHCK
BHCK

C502
1395
1395

HC-R
HC-R
HC-R

6850

Intraseries HC-R20

BHCK

B595

HC-R

6880

Quality

HC-R31

BHCK

7204

6885

Quality

HC-R32

BHCK

6890

Quality

HC-R33

6893

Quality

6894
6896
6898

NOTE section follows edits.
Edit Test

Alg Edit Test

HC-R13 should be less than or equal to HC-23.
HC-R14 should be less than or equal to 1.25% of HC-R59
(+10k).
HC-R14 should be less than or equal to the sum of HC-4c
minus HI-B(II)Mem1 plus HC-G3.
If HC-B7D is greater than HC-B7C, then HC-R15 should be
less than or equal to 45% (HC-B7D minus HC-B7C) (+10k).

bhckb593 le bhck3283
bhck5310 le ((bhckb704 * .0125) + 10)

if bhcka510 gt bhcka511 then bhck2221 eq 0

HC-R

If HC-B7C is greater than HC-B7D, then HC-R15 should be
equal to zero.
HC-19b should be greater than or equal to HC-R6b.
HC-R19 should be less than or equal to HC-19a.
If HC-R19 (previous) is equal to zero, then HC-R19 (current)
should equal zero.
HC-R20 (previous minus current) should be less than or
equal to $100k.
HC-R31 should equal HC-R11 divided by HC-R27 (+/-.1%).

7206

HC-R

HC-R32 should equal HC-R11 divided by HC-R62 (+/-.1%).

BHCK

7205

HC-R

HC-R33 should equal HC-R21 divided by HC-R62 (+/-.1%).

HC-R34B

BHCE

0010

HC-R

Quality

HC-R34B

BHCE

0010

HC-R

Quality
Quality

HC-R34C
HC-R35C

BHC0
BHC0

0010
1754

HC-R
HC-R

HC-R34B should be greater than or equal to zero and less
than or equal to HC-L14b1C.
If the sum of HC-1b1 and HC-1b2 is equal to zero, then HCR34B should equal zero.
HC-R34C should not exceed 98 percent of HC-R34A.
HC-R35C should be less than or equal to the sum of HCB1A, HC-B2aA, HC-B4a1A, and HC-B4b1A.

MARCH 2007

bhck5310 le (bhck3123 - bhckc435 + bhckb557)
if bhcka511 gt bhcka510 then bhck2221 le (.45 * (bhcka511 bhcka510)) + 10)

bhckc699 ge bhckc502
bhck1395 le bhck4062
if bhck1395-q2 eq 0 then bhck1395-q1 eq 0
(bhckb595-q2 - bhckb595-q1) le 100
if bhcka224 ne 0 then (bhck7204 le ((bhck8274 / bhcka224) *
100) + .1) and (bhck7204 ge ((bhck8274 / bhcka224) * 100) .1)
if bhcka223 ne 0 then (bhck7206 le ((bhck8274 / bhcka223) *
100) + .1) and (bhck7206 ge ((bhck8274 / bhcka223) * 100) .1)
if bhcka223 ne 0 then (bhck7205 le ((bhck3792 / bhcka223) *
100) + .1) and (bhck7205 ge ((bhck3792 / bhcka223) * 100) .1)
bhce0010 ge 0 and bhce0010 le bhck8743
if (bhck0395 + bhck0397) eq 0 then bhce0010 eq 0
bhc00010 le (bhck0010 * 0.98)
bhc01754 le (bhck0211 + bhck1289 + bhck1698 +
bhck1714)

FR Y-9C: EDIT-84 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6900
Quality
HC-R36B

Sub
MDRM
Schedule
Series
BHCE
1773
HC-R

6910

Quality

HC-R39B

BHCE

B528

HC-R

6915

Quality

HC-R39C

BHC0

B528

HC-R

6916

Quality

HC-R39E

BHC5

B528

HC-R

6919

Quality

HC-R42B

BHCE

B639

HC-R

6920

Quality

HC-R42B

BHCE

B639

HC-R

6921

Quality

HC-R42F

BHC9

B639

HC-R

6925

Quality

HC-R44A

BHCK

B546

HC-R

6930
6940

Quality
HC-R44B
Intraseries HC-R45E

BHCE
BHC5

B546
6570

HC-R
HC-R

6943

Quality

HC-R50A

BHCK

B541

HC-R

6945

Quality

HC-R50B

BHCE

B541

HC-R

MARCH 2007

NOTE section follows edits.
Edit Test
If HC-B7D is greater than HC-B7C, then the sum of HC-R15
plus HC-R36B should equal HC-B8D minus HC-B8C (+/100k).
Sum of HC-R35B, HC-R38B and HC-R39B should be less
than or equal to $100k.
If the sum of HC-C3A, HC-C4aA and HC-C4bA does not
equal zero, then HC-R39C divided by the sum of HC-C3A,
HC-C4aA and HC-C4bA should not exceed the tolerance of
60%.
Sum of HC-R38E and HC-R39E should be less than or equal
to the sum of HC-C1c2aB and 50% of (HC-C1aB, HCC1c1B, and HC-C1dB).
If HC-8 is greater than zero and HC-19b is greater than zero,
then HC-R42B should not equal zero.
If the sum of HC-R7a, HC-R9a, and HC-R9b does not equal
zero, then HC-R42B should not equal zero.
If HC-F5 is greater than zero, then HC-R42F should be
greater than zero.
HC-R44A should be greater than or equal to HC-L2 (minus
$10k) and less than or equal to (HC-L2 times 2 plus $10k).
HC-R44B should be greater than or equal to HC-R44A.
If HC-R45B (previous) minus HC-R45E (previous) is greater
than $1 thousand and HC-R45E (current) is greater than $25
thousand, then HC-R45E (current) should not equal HCR45B (current).
If HC-R50B is greater than zero, then HC-R50A should be
greater than zero.
If HC-R50A is greater than zero, then HC-R50B should be
greater than two times HC-R50A.

Alg Edit Test
if (bhcka511 gt bhcka510) then (((bhck2221 + bhce1773) le
((bhct1773 - bhck1772) + 100)) and ((bhck2221 + bhce1773)
ge ((bhct1773 - bhck1772) - 100)))
(bhce1754 + bhce5369 + bhceb528) le 100
if (bhck1590 + bhck1763 + bhck1764) ne 0 then ((bhc0b528 /
(bhck1590 + bhck1763 + bhck1764)) * 100) le 60
(bhc55369 + bhc5b528) le (bhdm5367 + (0.50 * (bhdm1415
+ bhdm1797 + bhdm1460)))
if (bhck2130 gt 0 and bhckc699 gt 0) then bhceb639 ne 0
if (bhckb590 + bhckb591 + bhck5610) ne 0 then bhceb639
ne 0
if bhckc009 gt 0 then bhc9b639 gt 0
bhckb546 ge (bhck6566 - 10) and bhckb546 le
((bhck6566*2) + 10)
bhceb546 ge bhckb546
if (bhce6570-q2 - bhc56570-q2) gt 1 and bhc56570-q1 gt 25
then bhc56570-q1 ne bhce6570-q1
if bhceb541 gt 0 then bhckb541 gt 0
if bhckb541 gt 0 then (bhceb541 / bhckb541) gt 2

FR Y-9C: EDIT-85 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
6950
Quality
HC-R51A

Sub
MDRM
Schedule
Series
BHCK
B675
HC-R

6955

Quality

HC-R51A

BHCK

B675

HC-R

If the sum of HC-S1A through HC-S1G plus HC-S11A
through HC-S11G equals zero, then the sum of HC-R50A
and HC-R51A should equal zero.

if (bhckb705 + bhckb706 + bhckb707 + bhckb708 +
bhckb709 + bhckb710 + bhckb711 + bhckb790 + bhckb791 +
bhckb792 + bhckb793 + bhckb794 + bhckb795 + bhckb796)
eq 0 then (bhckb541 + bhckb675) eq 0

6958

Quality

HC-R51A

BHCK

B675

HC-R

If the sum of HC-S12 (columns A through G) is greater than
$30 thousand, then the sum of (HC-R49A, HC-R50A, and
HC-R51A) should be greater than or equal to the sum of HCS12 (columns A through G).

if (bhckb797 + bhckb798 + bhckb799 + bhckb800 +
bhckb801 +bhckb802 + bhckb803) gt 30 then (bhcta250 +
bhckb541 + bhckb675) ge (bhckb797 + bhckb798 +
bhckb799 + bhckb800 + bhckb801 +bhckb802 +bhckb803)

6960

Intraseries HC-R53A

BHCK

6572

HC-R

6963

Intraseries HC-R53A

BHCK

6572

HC-R

6965

Intraseries HC-R53A

BHCK

6572

HC-R

6970

Quality

HC-R53A

BHCK

6572

HC-R

6976

Intraseries HC-R53E

BHC5

6572

HC-R

If HC-R53A (previous) is greater than 500K, then HC-R53A if bhck6572-q2 gt 500 then ((bhck6572-q1 / bhck6572-q2) ge
(current) should be within 50 percent and 200 percent of HC- 0.50 and (bhck6572-q1 / bhck6572-q2) le 2)
R53A (previous).
If HC-12(current) is greater than $1billion and HCif bhck6572-q2 ne 0 and bhck2170-q1 gt 1000000 and
R53A(previous) is greater than $1million and the sum of HC- bhck6572-q2 gt 1000 and (bhck3814-q1 + bhck3815-q1 +
L1a through HC-L1e(current) is greater than $500K, then HC- bhck3816-q1 + bhck6550-q1 + bhck3817-q1 + bhck3818-q1)
R53A(current) divided by HC-R53A(previous) should be
gt 500 then (bhck6572-q1 / bhck6572-q2) * 100 ge 50
greater than or equal to 50%.
If HC-R53A (previous) is greater than zero, and sum of HC- if bhck6572-q2 gt 0 and (bhck3814-q1 + bhck3815-q1 +
L1a through HC-L1e (current) is greater than zero, then HC- bhck3816-q1 + bhck6550-q1 + bhck3817-q1 + bhck3818-q1)
gt 0 then bhck6572-q1 gt 0
R53A (current) should be greater than zero.
HC-R53A should be less than or equal to the sum of HC-L1a bhck6572 le (bhck3814 + bhck3815 + bhck3816 + bhck6550
through HC-L1e (+ $10K).
+ bhck3817 + bhck3818) + 10
If HC-R53B (previous) minus HC-R53E (previous) is greater if (bhce6572-q2 - bhc56572-q2) gt 1 and bhc56572-q1 gt 25,
than $1 thousand and HC-R53E (current) is greater than $25 then bhc56572-q1 ne bhce6572-q1
thousand, then HC-R53E (current) should not equal HCR53B (current).

MARCH 2007

Alg Edit Test

If the sum HC-S1A through HC-S1G plus HC-S11A through if (bhckb705 + bhckb706 + bhckb707 + bhckb708 +
HC-S11G is greater than zero, then the sum of HC-R50A
bhckb709 + bhckb710 + bhckb711 + bhckb790 + bhckb791 +
and HC-R51A should be greater than or equal to zero.
bhckb792 + bhckb793 + bhckb794 + bhckb795 + bhckb796)
gt 0 then (bhckb541 + bhckb675) ge 0

FR Y-9C: EDIT-86 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
6977
Quality
HC-R54B

Sub
MDRM
Schedule
Series
BHCE
A167
HC-R

6978

Quality

HC-R54B

BHCE

A167

HC-R

6980

Intraseries HC-R58F

BHCK

1651

HC-R

6990

Intraseries HC-R58F

BHCK

1651

HC-R

7000

Quality

HC-R58F

BHCK

1651

HC-R

7030

Quality

HC-R60F

BHCK

A222

HC-R

7040
7060

Quality
Quality

HC-R61F
HC-RM1

BHCK
BHCK

3128
8764

HC-R
HC-R

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

If HC-RM1 is greater than zero, the HC-R54B should be
if bhck8764 gt 0 then bhcea167 gt 0
greater than zero.
HC-R54B should be between 40% and 100% of the sum of bhcea167 ge .40 *(( bhck8764 + ((bhck8766 *.005) +
(bhck8767 * .015) + (bhck3812 * .01) + (bhck8769 * .05) +
[HC-RM1 and (HC-RM2aB multiplied by .005) and (HC(bhck8770 * .075) + (bhck8771 * .01) + (bhck8772 * .05) +
RM2aC multiplied by .015) and (HC-RM2bA multiplied by
(bhck8773 * .075) + (bhck8774 * .07) + (bhck8775 * .07) +
.01) and (HC-RM2bB multiplied by .05) and (HC-RM2bC
(bhck8776 * .08) + (bhck8777 * .1) + (bhck8778 * .12) +
multiplied by .075) and (HC-RM2cA multiplied by .01) and
(HC-RM2cB multiplied by .05) and (HC-RM2cC multiplied by (bhck8779 * .15) + (bhcka000 * .06) + (bhcka001 * .08) +
(bhcka002 * .1)) - 10) and bhcea167 le ((bhck8764 +
.075) and (HC-RM2dA multiplied by .07) and (HC-RM2dB
multiplied by .07) and (HC-RM2dC multiplied by .08) and (HC- ((bhck8766 *.005) + (bhck8767 * .015) + (bhck3812 * .01) +
RM2eA multiplied by .1) and (HC-RM2eB multiplied by .12) (bhck8769 * .05) + (bhck8770 * .075) + (bhck8771 * .01) +
(bhck8772 * .05) + (bhck8773 * .075) + (bhck8774 * .07) +
and (HC-RM2eC multiplied by .15) and (HC-RM2fA
multiplied by .06) and (HC-RM2fB multiplied by .08) and (HC- (bhck8775 * .07) + (bhck8776 * .08) + (bhck8777 * .1) +
(bhck8778 * .12) + (bhck8779 * .15) + (bhcka000 * .06) +
RM2fC multiplied by .1)]. (+/-10K)
(bhcka001 * .08) + (bhcka002 * .1)) + 10)
If the sum of HC-5 (previous) and HC-15 (previous) is
greater than or equal to 10% of HC-12 (previous), or if the
sum is greater than or equal to $1 billion, then HC-R58F
(currrent) should be greater than zero.
If the sum of HC-5 (previous) and HC-15 (previous) is less
than $1 billion and less than 10% of HC-12 (previous), then
HC-R58F (current) should equal zero.
If HC-R19 is greater than zero, then HC-R58F should be
greater than zero.
Sum of HC-4c and HC-G3 minus HI-B(II)Mem1 should equal
the sum of HC-R14 and HC-R60F
HI-B(II)M1 should be less than or equal to HC-R61F.
HC-RM1 should be less than or equal to the sum of HCL14a1 and HC-L14b1 (Columns A through D).

1. if bhck2170-q2 ne null and (bhck3545-q2 + bhck3548-q2)
ge (bhck2170-q2 * .1) then bhck1651-q1 gt 0; 2. if bhck2170q2 ne null and (bhck3545-q2 + bhck3548-q2) ge 1000000
then bhck1651-q1 gt 0
if bhck2170-q2 ne null and ((bhck3545-q2 + bhck3548-q2) lt
1000000 and (bhck3545-q2 + bhck3548-q2) lt (bhck2170-q2
* .1)) then bhck1651-q1 eq 0
if bhck1395 gt 0 then bhck1651 gt 0
(bhck3123 + bhckb557 - bhckc435) eq (bhck5310 +
bhcka222)
bhckc435 le bhck3128
bhck8764 le (bhck8733 + bhck8734 + bhck8735 + bhck8736
+ bhck8741 + bhck8742 + bhck8743 + bhck8744)

FR Y-9C: EDIT-87 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
7065
Quality
HC-RM2aC

Sub
MDRM
Schedule
Series
BHCK
8767
HC-R

7067

Quality

HC-RM2aC

BHCK

8767

HC-R

7070

Quality

HC-RM2bC

BHCK

8770

HC-R

7073

Quality

HC-RM2bC

BHCK

8770

HC-R

7075

Quality

HC-RM2eC

BHCK

8779

HC-R

Sum of HC-RM2cA, HC-RM2cB, HC-RM2cC, HC-RM2dA, (bhck8771 + bhck8772 + bhck8773 + bhck8774 + bhck8775
HC- RM2dB, HC-RM2dC, HC-RM2eA, HC-RM2eB and HC- + bhck8776 + bhck8777 + bhck8778 + bhck8779) le
RM2eC should be less than or equal to the sum of HC(bhck8700 + bhck8708 + bhck8716 + bhck8720)
L11bD, HC-L11c2D, HC-L11d2D and HC-L11eD.

7077

Quality

HC-RM2eC

BHCK

8779

HC-R

7091

Quality

HC-RM2fC

BHCK

A002

HC-R

7095

Quality

HC-RM2fC

BHCK

A002

HC-R

If the sum of HC-L11bD, HC-L11c2D, HC-L11d2D and HCL11eD is greater than zero, then the sum of HC-RM2cA, HCRM2cB, HC-RM2cC, HC-RM2dA, HC RM2dB, HC-RM2dC,
HC-RM2eA, HC-RM2eB and HC-RM2eC should be greater
than zero.
If the sum of HC-L11bC, HC-L11c2C, HC-L11d2C and HCL11eC is greater than zero, then sum of HC-RM2fA, HCRM2fB and HC-RM2fC should be greater than zero.
Sum of HC-RM2fA, HC-RM2fB and HC-RM2fC should be
less than or equal to the sum of HC-L11bC, HC-L11c2C, HCL11d2C and HC-L11eC.

MARCH 2007

Alg Edit Test

The sum of HC-RM2aA, HC-RM2aB and HC-RM2aC should
be less than or equal to the sum of HC-L11bA, HC-L11c2A,
HC-L11d2A and HC-L11eA.
If the sum of HC-L11bA, HC-L11c2A, HC-L11d2A and HCL11eA is greater than zero then the sum of HC-RM2aA, HCRM2aB and HC-RM2aC should be greater than zero.

(bhck3809 + bhck8766 + bhck8767) le (bhck8697 +
bhck8705 + bhck8713 + bhck3450)

Sum of HC-RM2bA, HC-RM2bB and HC-RM2bC should be
less than or equal to the sum of HC-L11bB, HC-L11c2B, HCL11d2B and HC-L11eB.
If the sum of HC-L11bB, HC-L11c2B, HC-L11d2B and HCL11eB is greater than zero, then the sum of HC-RM2bA, HCRM2bB and HC-RM2bC should be greater than zero.

(bhck3812 + bhck8769 + bhck8770) le (bhck8698 +
bhck8706 + bhck8714 + bhck3826)

if (bhck8697 + bhck8705 + bhck8713 + bhck3450) gt 0 then
(bhck3809 + bhck8766 + bhck8767) gt 0

if (bhck8698 + bhck8706 + bhck8714 + bhck3826) gt 0 then
(bhck3812 + bhck8769 + bhck8770) gt 0

if (bhck8700 + bhck8708 + bhck8716 + bhck8720) gt 0 then
(bhck8771 + bhck8772 + bhck8773 + bhck8774 + bhck8775
+ bhck8776 + bhck8777 + bhck8778 + bhck8779) gt 0
if (bhck8699 + bhck8707 + bhck8715 + bhck8719) gt 0 then
(bhcka000 + bhcka001 + bhcka002) gt 0
(bhcka000 + bhcka001 + bhcka002) le (bhck8699 +
bhck8707 + bhck8715 + bhck8719)

FR Y-9C: EDIT-88 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7097
Quality
HC-RM2g2C

Sub
MDRM
Schedule
Series
BHCK
C985
HC-R

7100
7110

Quality
Quality

HC-RM3c
HC-RM3d

BHCK
BHCK

C498
A507

HC-R
HC-R

7120

Quality

HC-RM4

BHCK

2771

HC-R

7134

Quality

HC-RM5a

BHCK

5483

HC-R

7135

Quality

HC-RM5a

BHCK

5483

HC-R

7145

Quality

HC-RM5b

BHCK

5484

HC-R

7147

Quality

HC-RM5b

BHCK

5484

HC-R

7150

Quality

HC-RM5b

BHCK

5484

HC-R

9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-R11
HC-R12
HC-R13
HC-R14
HC-R15
HC-R17
HC-R18
HC-R19
HC-R20
HC-R21
HC-R22

bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhct

8274
5306
b593
5310
2221
5311
8275
1395
b595
3792
3368

HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

Sum of HC-RM2g1A through HC-RM2g2C should be
between 75% and 100% of the sum of HC-L7a1A through
HC-L7a4B.

((bhckc980 + bhckc981 + bhckc982 + bhckc983 + bhckc984
+ bhckc985) ge (bhckc968 + bhckc969 + bhckc970 +
bhckc971 + bhckc972 + bhckc973 + bhckc974 + bhckc975) *
.75) and ((bhckc980 + bhckc981 + bhckc982 + bhckc983 +
bhckc984 + bhckc985) le (bhckc968 + bhckc969 + bhckc970
+ bhckc971 + bhckc972 + bhckc973 + bhckc974 +
bhckc975))
HC-RM3c should be less than or equal to HC-22.
bhckc498 le bhck3000
HC-RM3d should be less than or equal to the sum of HC-20 bhcka507 le (bhck2750 + bhck3000)
and HC-22.
HC-RM4 should be less than or equal to the absolute value bhck2771 le bhcka130 or bhck2771 le (bhcka130) * -1
of HC-27.
If HC-23 is greater than zero, the sum of HC-RM3a, HCif bhck3283 gt 0 then (bhck5479 + bhck5990 + bhck5483) gt
RM3b, and HC-RM5a should be greater than zero.
0
Sum of HC-RM3a, HC-RM3b, and HC-RM5a should be less (bhck5479 + bhck5990 + bhck5483) le bhck3283
than or equal to HC-23.
If the sum of HC-RM5a and HC-RM5b does not equal zero, if (bhck5483 + bhck5484) ne 0 then bhcka130 ne 0
then HC-27 should not equal zero.
If HC-27 does not equal zero, then the sum of HC-RM5a and if (bhcka130 ne 0) then (bhck5483 + bhck5484) ne 0
HC-RM5b should not equal zero.
Sum of HC-RM5a and HC-RM5b should be less than or
(bhck5483 + bhck5484) le bhcka130 or (bhck5483 +
equal to the absolute value of HC-27.
bhck5484) le (bhcka130) * -1
HC-R11 should not be negative.
bhck8274 ge 0 or bhck8274 eq null
HC-R12 should not be negative.
bhck5306 ge 0 or bhck5306 eq null
HC-R13 should not be negative.
bhckb593 ge 0 or bhckb593 eq null
HC-R14 should not be negative.
bhck5310 ge 0 or bhck5310 eq null
HC-R15 should not be negative.
bhck2221 ge 0 or bhck2221 eq null
HC-R17 should not be negative.
bhck5311 ge 0 or bhck5311 eq null
HC-R18 should not be negative.
bhck8275 ge 0 or bhck8275 eq null
HC-R19 should not be negative.
bhck1395 ge 0 or bhck1395 eq null
HC-R20 should not be negative.
bhckb595 ge 0 or bhckb595 eq null
HC-R21 should not be negative.
bhck3792 ge 0 or bhck3792 eq null
HC-R22 should not be negative.
bhct3368 ge 0 or bhct3368 eq null

FR Y-9C: EDIT-89 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-R23
HC-R24
HC-R25
HC-R26
HC-R27
HC-R3
HC-R31
HC-R32
HC-R33
HC-R34A
HC-R34C
HC-R34D
HC-R34F
HC-R35A
HC-R35C
HC-R35D
HC-R35E
HC-R35F
HC-R36A
HC-R36C
HC-R36D
HC-R36E
HC-R36F
HC-R37A
HC-R37C
HC-R37D
HC-R37F
HC-R38A
HC-R38C
HC-R38D
HC-R38E
HC-R38F
HC-R39A

MARCH 2007

Sub
Series
bhct
bhct
bhct
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhc0
bhc2
bhc9
bhcx
bhc0
bhc2
bhc5
bhc9
bhcx
bhc0
bhc2
bhc5
bhc9
bhck
bhc0
bhc2
bhc9
bhct
bhc0
bhc2
bhc5
bhc9
bhct

MDRM
b590
b591
5610
b596
a224
a221
7204
7206
7205
0010
0010
0010
0010
1754
1754
1754
1754
1754
1773
1773
1773
1773
1773
c225
c225
c225
c225
5369
5369
5369
5369
5369
b528

Schedule
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R

NOTE section follows edits.
Edit Test
HC-R23 should not be negative.
HC-R24 should not be negative.
HC-R25 should not be negative.
HC-R26 should not be negative.
HC-R27 should not be negative.
HC-R3 should not be negative.
HC-R31 should not be negative.
HC-R32 should not be negative.
HC-R33 should not be negative.
HC-R34A should not be negative.
HC-R34C should not be negative.
HC-R34D should not be negative.
HC-R34F should not be negative.
HC-R35A should not be negative.
HC-R35C should not be negative.
HC-R35D should not be negative.
HC-R35E should not be negative.
HC-R35F should not be negative.
HC-R36A should not be negative.
HC-R36C should not be negative.
HC-R36D should not be negative.
HC-R36E should not be negative.
HC-R36F should not be negative.
HC-R37A should not be negative.
HC-R37C should not be negative.
HC-R37D should not be negative.
HC-R37F should not be negative.
HC-R38A should not be negative.
HC-R38C should not be negative.
HC-R38D should not be negative.
HC-R38E should not be negative.
HC-R38F should not be negative.
HC-R39A should not be negative.

Alg Edit Test
bhctb590 ge 0 or bhctb590 eq null
bhctb591 ge 0 or bhctb591 eq null
bhct5610 ge 0 or bhct5610 eq null
bhckb596 ge 0 or bhckb596 eq null
bhcka224 ge 0 or bhcka224 eq null
bhcka221 ge 0 or bhcka221 eq null
bhck7204 ge 0 or bhck7204 eq null
bhck7206 ge 0 or bhck7206 eq null
bhck7205 ge 0 or bhck7205 eq null
bhck0010 ge 0 or bhck0010 eq null
bhc00010 ge 0 or bhc00010 eq null
bhc20010 ge 0 or bhc20010 eq null
bhc90010 ge 0 or bhc90010 eq null
bhcx1754 ge 0 or bhcx1754 eq null
bhc01754 ge 0 or bhc01754 eq null
bhc21754 ge 0 or bhc21754 eq null
bhc51754 ge 0 or bhc51754 eq null
bhc91754 ge 0 or bhc91754 eq null
bhcx1773 ge 0 or bhcx1773 eq null
bhc01773 ge 0 or bhc01773 eq null
bhc21773 ge 0 or bhc21773 eq null
bhc51773 ge 0 or bhc51773 eq null
bhc91773 ge 0 or bhc91773 eq null
bhckc225 ge 0 or bhckc225 eq null
bhc0c225 ge 0 or bhc0c255 eq null
bhc2c255 ge 0 or bhc2c255 eq null
bhc9c255 ge 0 or bhc9c255 eq null
bhct5369 ge 0 or bhct5369 eq null
bhc05369 ge 0 or bhc05369 eq null
bhc25369 ge 0 or bhc25369 eq null
bhc55369 ge 0 or bhc55369 eq null
bhc95369 ge 0 or bhc95369 eq null
bhctb528 ge 0 or bhctb528 eq null

FR Y-9C: EDIT-90 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-R39C
HC-R39D
HC-R39E
HC-R39F
HC-R40A
HC-R41A
HC-R41C
HC-R41D
HC-R41E
HC-R41F
HC-R42A
HC-R42C
HC-R42D
HC-R42E
HC-R42F
HC-R43A
HC-R43C
HC-R43D
HC-R43E
HC-R43F
HC-R44A
HC-R44B
HC-R44C
HC-R44D
HC-R44E
HC-R44F
HC-R45A
HC-R45B
HC-R45C
HC-R45D
HC-R45E
HC-R45F
HC-R46A

MARCH 2007

Sub
Series
bhc0
bhc2
bhc5
bhc9
bhcx
bhcx
bhc0
bhc2
bhc5
bhc9
bhck
bhc0
bhc2
bhc5
bhc9
bhct
bhc0
bhc2
bhc5
bhc9
bhck
bhce
bhc0
bhc2
bhc5
bhc9
bhct
bhce
bhc0
bhc2
bhc5
bhc9
bhct

MDRM
b528
b528
b528
b528
3123
3545
3545
3545
3545
3545
b639
b639
b639
b639
b639
2170
2170
2170
2170
2170
b546
b546
b546
b546
b546
b546
6570
6570
6570
6570
6570
6570
3411

Schedule
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R

NOTE section follows edits.
Edit Test
HC-R39C should not be negative.
HC-R39D should not be negative.
HC-R39E should not be negative.
HC-R39F should not be negative.
HC-R40A should not be negative.
HC-R41A should not be negative.
HC-R41C should not be negative.
HC-R41C should not be negative.
HC-R41E should not be negative.
HC-R41F should not be negative.
HC-R42A should not be negative.
HC-R42C should not be negative.
HC-R42D should not be negative.
HC-R42E should not be negative.
HC-R42F should not be negative.
HC-R43A should not be negative.
HC-R43C should not be negative.
HC-R43D should not be negative.
HC-R43E should not be negative.
HC-R43F should not be negative.
HC-R44A should not be negative.
HC-R44B should not be negative.
HC-R44C should not be negative.
HC-R44D should not be negative.
HC-R44E should not be negative.
HC-R44F should not be negative.
HC-R45A should not be negative.
HC-R45B should not be negative.
HC-R45C should not be negative.
HC-R45D should not be negative.
HC-R45E should not be negative.
HC-R45F should not be negative.
HC-R46A should not be negative.

Alg Edit Test
bhc0b528 ge 0 or bhc0b528 eq null
bhc2b528 ge 0 or bhc2b528 eq null
bhc5b528 ge 0 or bhc5b528 eq null
bhc9b528 ge 0 or bhc9b528 eq null
bhcx3123 ge 0 or bhcx3123 eq null
bhcx3545 ge 0 or bhcx3545 eq null
bhc03545 ge 0 or bhc03545 eq null
bhc23545 ge 0 or bhc23545 eq null
bhc53545 ge 0 or bhc53545 eq null
bhc93545 ge 0 or bhc93545 eq null
bhckb639 ge 0 or bhckb639 eq null
bhc0b639 ge 0 or bhc0b639 eq null
bhc2b639 ge 0 or bhc2b639 eq null
bhc5b639 ge 0 or bhc5b639 eq null
bhc9b639 ge 0 or bhc9b639 eq null
bhct2170 ge 0 or bhct2170 eq null
bhc02170 ge 0 or bhc02170 eq null
bhc22170 ge 0 or bhc22170 eq null
bhc52170 ge 0 or bhc52170 eq null
bhc92170 ge 0 or bhc92170 eq null
bhckb546 ge 0 or bhckb546 eq null
bhceb546 ge 0 or bhceb546 eq null
bhc0b546 ge 0 or bhc0b546 eq null
bhc2b546 ge 0 or bhc2b546 eq null
bhc5b546 ge 0 or bhc5b546 eq null
bhc9b546 ge 0 or bhc9b546 eq null
bhct6570 ge 0 or bhct6570 eq null
bhce6570 ge 0 or bhce6570 eq null
bhc06570 ge 0 or bhc06570 eq null
bhc26570 ge 0 or bhc26570 eq null
bhc56570 ge 0 or bhc56570 eq null
bhc96570 ge 0 or bhc96570 eq null
bhct3411 ge 0 or bhct3411 eq null

FR Y-9C: EDIT-91 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-R46B
HC-R46C
HC-R46D
HC-R46E
HC-R46F
HC-R47A
HC-R47B
HC-R47C
HC-R47D
HC-R47F
HC-R48A
HC-R48B
HC-R48C
HC-R48D
HC-R48E
HC-R48F
HC-R49A
HC-R49B
HC-R49C
HC-R49D
HC-R49E
HC-R49F
HC-R5
HC-R50A
HC-R50B
HC-R50F
HC-R51A
HC-R51B
HC-R51C
HC-R51D
HC-R51E
HC-R51F
HC-R52A

MARCH 2007

Sub
Series
bhce
bhc0
bhc2
bhc5
bhc9
bhck
bhce
bhc0
bhc2
bhc9
bhct
bhce
bhc0
bhc2
bhc5
bhc9
bhct
bhce
bhc0
bhc2
bhc5
bhc9
bhck
bhck
bhce
bhc9
bhck
bhce
bhc0
bhc2
bhc5
bhc9
bhck

MDRM
3411
3411
3411
3411
3411
3429
3429
3429
3429
3429
3433
3433
3433
3433
3433
3433
a250
a250
a250
a250
a250
a250
b588
b541
b541
b541
b675
b675
b675
b675
b675
b675
b681

Schedule
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R

NOTE section follows edits.
Edit Test
HC-R46B should not be negative.
HC-R46C should not be negative.
HC-R46D should not be negative.
HC-R46E should not be negative.
HC-R46F should not be negative.
HC-R47A should not be negative.
HC-R47B should not be negative.
HC-R47C should not be negative.
HC-R47D should not be negative.
HC-R47F should not be negative.
HC-R48A should not be negative.
HC-R48B should not be negative.
HC-R48C should not be negative.
HC-R48D should not be negative.
HC-R48E should not be negative.
HC-R48F should not be negative.
HC-R49A should not be negative.
HC-R49B should not be negative.
HC-R49C should not be negative.
HC-R49D should not be negative.
HC-R49E should not be negative.
HC-R49F should not be negative.
HC-R5 should not be negative.
HC-R50A should not be negative.
HC-R50B should not be negative.
HC-R50F should not be negative.
HC-R51A should not be negative.
HC-R51B should not be negative.
HC-R51C should not be negative.
HC-R51D should not be negative.
HC-R51E should not be negative.
HC-R51F should not be negative.
HC-R52A should not be negative.

Alg Edit Test
bhce3411 ge 0 or bhce3411 eq null
bhc03411 ge 0 or bhc03411 eq null
bhc23411 ge 0 or bhc23411 eq null
bhc53411 ge 0 or bhc53411 eq null
bhc93411 ge 0 or bhc93411 eq null
bhck3429 ge 0 or bhck3429 eq null
bhce3429 ge 0 or bhce3429 eq null
bhc03429 ge 0 or bhc03429 eq null
bhc23429 ge 0 or bhc23429 eq null
bhc93429 ge 0 or bhc93429 eq null
bhct3433 ge 0 or bhct3433 eq null
bhce3433 ge 0 or bhce3433 eq null
bhc03433 ge 0 or bhc03433 eq null
bhc23433 ge 0 or bhc23433 eq null
bhc53433 ge 0 or bhc53433 eq null
bhc93433 ge 0 or bhc93433 eq null
bhcta250 ge 0 or bhcta250 eq null
bhcea250 ge 0 or bhcea250 eq null
bhc0a250 ge 0 or bhc0a250 eq null
bhc2a250 ge 0 or bhc2a250 eq null
bhc5a250 ge 0 or bhc5a250 eq null
bhc9a250 ge 0 or bhc9a250 eq null
bhckb588 ge 0 or bhckb588 eq null
bhckb541 ge 0 or bhckb541 eq null
bhceb541 ge 0 or bhceb541 eq null
bhc9b541 ge 0 or bhc9b541 eq null
bhckb675 ge 0 or bhckb675 eq null
bhceb675 ge 0 or bhceb675 eq null
bhc0b675 ge 0 or bhc0b675 eq null
bhc2b675 ge 0 or bhc2b675 eq null
bhc5b675 ge 0 or bhc5b675 eq null
bhc9b675 ge 0 or bhc9b675 eq null
bhckb681 ge 0 or bhckb681 eq null

FR Y-9C: EDIT-92 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-R52B
HC-R52C
HC-R52D
HC-R52E
HC-R52F
HC-R53A
HC-R53B
HC-R53C
HC-R53D
HC-R53E
HC-R53F
HC-R54B
HC-R54C
HC-R54D
HC-R54E
HC-R55C
HC-R55D
HC-R55E
HC-R55F
HC-R57C
HC-R57D
HC-R57E
HC-R57F
HC-R58F
HC-R59F
HC-R60F
HC-R61F
HC-R62F
HC-R6a
HC-R6b
HC-R7a
HC-R8
HC-R9a

MARCH 2007

Sub
Series
bhce
bhc0
bhc2
bhc5
bhc9
bhck
bhce
bhc0
bhc2
bhc5
bhc9
bhce
bhc0
bhc2
bhc5
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck

MDRM
b681
b681
b681
b681
b681
6572
6572
6572
6572
6572
6572
a167
a167
a167
a167
b696
b697
b698
b699
b700
b701
b702
b703
1651
b704
a222
3128
a223
b589
c502
b590
c227
b591

Schedule
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R

NOTE section follows edits.
Edit Test
HC-R52B should not be negative.
HC-R52C should not be negative.
HC-R52D should not be negative.
HC-R52E should not be negative.
HC-R52F should not be negative.
HC-R53A should not be negative.
HC-R53B should not be negative.
HC-R53C should not be negative.
HC-R53D should not be negative.
HC-R53E should not be negative.
HC-R53F should not be negative.
HC-R54B should not be negative.
HC-R54C should not be negative.
HC-R54D should not be negative.
HC-R54E should not be negative.
HC-R55C should not be negative.
HC-R55D should not be negative.
HC-R55E should not be negative.
HC-R55F should not be negative.
HC-R57C should not be negative.
HC-R57D should not be negative.
HC-R57E should not be negative.
HC-R57F should not be negative.
HC-R58F should not be negative.
HC-R59F should not be negative.
HC-R60F should not be negative.
HC-R61F should not be negative.
HC-R62F should not be negative.
HC-R6a should not be negative.
HC-R6b should not be negative.
HC-R7a should not be negative.
HC-R8 should not be negative.
HC-R9a should not be negative.

Alg Edit Test
bhceb681 ge 0 or bhceb681 eq null
bhc0b681 ge 0 or bhc0b681 eq null
bhc2b681 ge 0 or bhc2b681 eq null
bhc5b681 ge 0 or bhc5b681 eq null
bhc9b681 ge 0 or bhc9b681 eq null
bhck6572 ge 0 or bhck6572 eq null
bhce6572 ge 0 or bhce6572 eq null
bhc06572 ge 0 or bhc06572 eq null
bhc26572 ge 0 or bhc26572 eq null
bhc56572 ge 0 or bhc56572 eq null
bhc96572 ge 0 or bhc96572 eq null
bhcea167 ge 0 or bhcea167 eq null
bhc0a167 ge 0 or bhc0a167 eq null
bhc2a167 ge 0 or bhc2a167 eq null
bhc5a167 ge 0 or bhc5a167 eq null
bhckb696 ge 0 or bhckb696 eq null
bhckb697 ge 0 or bhckb697 eq null
bhckb698 ge 0 or bhckb698 eq null
bhckb699 ge 0 or bhckb699 eq null
bhckb700 ge 0 or bhckb700 eq null
bhckb701 ge 0 or bhckb701 eq null
bhckb702 ge 0 or bhckb702 eq null
bhckb703 ge 0 or bhckb703 eq null
bhck1651 ge 0 or bhck1651 eq null
bhckb704 ge 0 or bhckb704 eq null
bhcka222 ge 0 or bhcka222 eq null
bhck3128 ge 0 or bhck3128 eq null
bhcka223 ge 0 or bhcka223 eq null
bhckb589 ge 0 or bhckb589 eq null
bhckc502 ge 0 or bhckc502 eq null
bhckb590 ge 0 or bhckb590 eq null
bhckc227 ge 0 or bhckc227 eq null
bhckb591 ge 0 or bhckb591 eq null

FR Y-9C: EDIT-93 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550
9550

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-R9b
HC-RM1
HC-RM2aA
HC-RM2aB
HC-RM2aC
HC-RM2bA
HC-RM2bB
HC-RM2bC
HC-RM2cA
HC-RM2cB
HC-RM2cC
HC-RM2dA
HC-RM2dB
HC-RM2dC
HC-RM2eA
HC-RM2eB
HC-RM2eC
HC-RM2fA
HC-RM2fB
HC-RM2fC
HC-RM2g1A
HC-RM2g1B
HC-RM2g1C
HC-RM2g2A
HC-RM2g2B
HC-RM2g2C
HC-RM3a
HC-RM3b
HC-RM3c
HC-RM3d
HC-RM4
HC-RM5a
HC-RM5b

MARCH 2007

Sub
Series
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck
bhck

MDRM
5610
8764
3809
8766
8767
3812
8769
8770
8771
8772
8773
8774
8775
8776
8777
8778
8779
a000
a001
a002
c980
c981
c982
c983
c984
c985
5479
5990
c498
a507
2771
5483
5484

Schedule
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R
HC-R

NOTE section follows edits.
Edit Test
HC-R9b should not be negative.
HC-RM1 should not be negative.
HC-RM2aA should not be negative.
HC-RM2aB should not be negative.
HC-RM2aC should not be negative.
HC-RM2bA should not be negative.
HC-RM2bB should not be negative.
HC-RM2bC should not be negative.
HC-RM2cA should not be negative.
HC-RM2cB should not be negative.
HC-RM2cC should not be negative.
HC-RM2dA should not be negative.
HC-RM2dB should not be negative.
HC-RM2dC should not be negative.
HC-RM2eA should not be negative.
HC-RM2eB should not be negative.
HC-RM2eC should not be negative.
HC-RM2fA should not be negative.
HC-RM2fB should not be negative.
HC-RM2fC should not be negative.
HC-RM2g1A should not be negative.
HC-RM2g1B should not be negative.
HC-RM2g1C should not be negative.
HC-RM2g2A should not be negative.
HC-RM2g2B should not be negative.
HC-RM2g2C should not be negative.
HC-RM3a should not be negative.
HC-RM3b should not be negative.
HC-RM3c should not be negative.
HC-RM3d should not be negative.
HC-RM4 should not be negative.
HC-RM5a should not be negative.
HC-RM5b should not be negative.

Alg Edit Test
bhck5610 ge 0 or bhck5610 eq null
bhck8764 ge 0 or bhck8764 eq null
bhck3809 ge 0 or bhck3809 eq null
bhck8766 ge 0 or bhck8766 eq null
bhck8767 ge 0 or bhck8767 eq null
bhck3812 ge 0 or bhck3812 eq null
bhck8769 ge 0 or bhck8769 eq null
bhck8770 ge 0 or bhck8770 eq null
bhck8771 ge 0 or bhck8771 eq null
bhck8772 ge 0 or bhck8772 eq null
bhck8773 ge 0 or bhck8773 eq null
bhck8774 ge 0 or bhck8774 eq null
bhck8775 ge 0 or bhck8775 eq null
bhck8776 ge 0 or bhck8776 eq null
bhck8777 ge 0 or bhck8777 eq null
bhck8778 ge 0 or bhck8778 eq null
bhck8779 ge 0 or bhck8779 eq null
bhcka000 ge 0 or bhcka000 eq null
bhcka001 ge 0 or bhcka001 eq null
bhcka002 ge 0 or bhcka002 eq null
bhckc980 ge 0 or bhckc980 eq null
bhckc981 ge 0 or bhckc981 eq null
bhckc982 ge 0 or bhckc982 eq null
bhckc983 ge 0 or bhckc983 eq null
bhckc984 ge 0 or bhckc984 eq null
bhckc985 ge 0 or bhckc985 eq null
bhck5479 ge 0 or bhck5479 eq null
bhck5990 ge 0 or bhck5990 eq null
bhckc498 ge 0 or bhckc498 eq null
bhcka507 ge 0 or bhcka507 eq null
bhck2771 ge 0 or bhck2771 eq null
bhck5483 ge 0 or bhck5483 eq null
bhck5484 ge 0 or bhck5484 eq null

FR Y-9C: EDIT-94 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
9550
Quality
HC-RM6
7190
Intraseries HC-S1A

Sub
MDRM
Schedule
Series
bhck
f031
HC-R
BHCK
B705
HC-S

7190

Intraseries HC-S1B

BHCK

B706

HC-S

7190

Intraseries HC-S1C

BHCK

B707

HC-S

7190

Intraseries HC-S1D

BHCK

B708

HC-S

7190

Intraseries HC-S1E

BHCK

B709

HC-S

7190

Intraseries HC-S1F

BHCK

B710

HC-S

7190

Intraseries HC-S1G

BHCK

B711

HC-S

7194

Quality

HC-S2cA

BHCK

C400

HC-S

7198

Quality

HC-S2cB

BHCK

C401

HC-S

7202

Quality

HC-S2cC

BHCK

C402

HC-S

7206

Quality

HC-S2cD

BHCK

C403

HC-S

7210

Quality

HC-S2cE

BHCK

C404

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test
HC-RM6 should not be negative.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
Sum of HC-S2aA, HC-S2bA and HC-S2cA should be less
than or equal to HC-S1A.
Sum of HC-S2aB, HC-S2bB and HC-S2cB should be less
than or equal to HC-S1B.
Sum of HC-S2aC, HC-S2bC and HC-S2cC should be less
than or equal to HC-S1C.
Sum of HC-S2aD, HC-S2bD and HC-S2cD should be less
than or equal to HC-S1D.
Sum of HC-S2aE, HC-S2bE and HC-S2cE should be less
than or equal to HC-S1E.

Alg Edit Test
bhckf031 ge 0 or bhckf031 eq null
if bhckb705-q2 gt 0 then bhckb705-q1 gt 0

if bhckb706-q2 gt 0 then bhckb706-q1 gt 0

if bhckb707-q2 gt 0 then bhckb707-q1 gt 0

if bhckb708-q2 gt 0 then bhckb708-q1 gt 0

if bhckb709-q2 gt 0 then bhckb709-q1 gt 0

if bhckb710-q2 gt 0 then bhckb710-q1 gt 0

if bhckb711-q2 gt 0 then bhckb711-q1 gt 0

(bhckb712 + bhckc393 + bhckc400) le bhckb705
(bhckb713 + bhckc394 + bhckc401) le bhckb706
(bhckb714 + bhckc395 + bhckc402) le bhckb707
(bhckb715 + bhckc396 + bhckc403) le bhckb708
(bhckb716 + bhckc397 + bhckc404) le bhckb709

FR Y-9C: EDIT-95 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7214
Quality
HC-S2cF

Sub
MDRM
Schedule
Series
BHCK
C405
HC-S

7218

Quality

HC-S2cG

BHCK

C406

HC-S

7222

Intraseries HC-S2aA

BHCK

B712

HC-S

7222

Intraseries HC-S2aB

BHCK

B713

HC-S

7222

Intraseries HC-S2aC

BHCK

B714

HC-S

7222

Intraseries HC-S2aD

BHCK

B715

HC-S

7222

Intraseries HC-S2aE

BHCK

B716

HC-S

7222

Intraseries HC-S2aF

BHCK

B717

HC-S

7222

Intraseries HC-S2aG

BHCK

B718

HC-S

7226

Intraseries HC-S2bA

BHCK

C393

HC-S

7226

Intraseries HC-S2bB

BHCK

C394

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test
Sum of HC-S2aF, HC-S2bF and HC-S2cF should be less
than or equal to HC-S1F.
Sum of HC-S2aG, HC-S2bG and HC-S2cG should be less
than or equal to HC-S1G.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S1 (columns A through G) (previous) is greater than
zero, then HC-S1 (columns A through G) (current) should be
greater than zero.
If HC-S2b (columns A through G) (previous) is greater than
zero, then HC-S2b (columns A through G) (current) should
be greater than zero.
If HC-S2b (columns A through G) (previous) is greater than
zero, then HC-S2b (columns A through G) (current) should
be greater than zero.

Alg Edit Test
(bhckb717 + bhckc398 + bhckc405) le bhckb710
(bhckb718 + bhckc399 + bhckc406) le bhckb711
if bhckb712-q2 gt 0 then bhckb712-q1 gt 0

if bhckb713-q2 gt 0 then bhckb713-q1 gt 0

if bhckb714-q2 gt 0 then bhckb714-q1 gt 0

if bhckb715-q2 gt 0 then bhckb715-q1 gt 0

if bhckb716-q2 gt 0 then bhckb716-q1 gt 0

if bhckb717-q2 gt 0 then bhckb717-q1 gt 0

if bhckb718-q2 gt 0 then bhckb718-q1 gt 0

if bhckc393-q2 gt 0 then bhckc393-q1 gt 0

if bhckc394-q2 gt 0 then bhckc394-q1 gt 0

FR Y-9C: EDIT-96 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7226
Intraseries HC-S2bC

Sub
MDRM
Schedule
Series
BHCK
C395
HC-S

7226

Intraseries HC-S2bD

BHCK

C396

HC-S

7226

Intraseries HC-S2bE

BHCK

C397

HC-S

7226

Intraseries HC-S2bF

BHCK

C398

HC-S

7226

Intraseries HC-S2bG

BHCK

C399

HC-S

7230

Intraseries HC-S2cA

BHCK

C400

HC-S

7230

Intraseries HC-S2cB

BHCK

C401

HC-S

7230

Intraseries HC-S2cC

BHCK

C402

HC-S

7230

Intraseries HC-S2cD

BHCK

C403

HC-S

7230

Intraseries HC-S2cE

BHCK

C404

HC-S

7230

Intraseries HC-S2cF

BHCK

C405

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test
If HC-S2b (columns A through G) (previous) is greater than
zero, then HC-S2b (columns A through G) (current) should
be greater than zero.
If HC-S2b (columns A through G) (previous) is greater than
zero, then HC-S2b (columns A through G) (current) should
be greater than zero.
If HC-S2b (columns A through G) (previous) is greater than
zero, then HC-S2b (columns A through G) (current) should
be greater than zero.
If HC-S2b (columns A through G) (previous) is greater than
zero, then HC-S2b (columns A through G) (current) should
be greater than zero.
If HC-S2b (columns A through G) (previous) is greater than
zero, then HC-S2b (columns A through G) (current) should
be greater than zero.
If HC-S2c (columns A through G) (previous) is greater than
zero, then HC-S2c (columns A through G) (current) should
be greater than zero.
If HC-S2c (columns A through G) (previous) is greater than
zero, then HC-S2c (columns A through G) (current) should
be greater than zero.
If HC-S2c (columns A through G) (previous) is greater than
zero, then HC-S2c (columns A through G) (current) should
be greater than zero.
If HC-S2c (columns A through G) (previous) is greater than
zero, then HC-S2c (columns A through G) (current) should
be greater than zero.
If HC-S2c (columns A through G) (previous) is greater than
zero, then HC-S2c (columns A through G) (current) should
be greater than zero.
If HC-S2c (columns A through G) (previous) is greater than
zero, then HC-S2c (columns A through G) (current) should
be greater than zero.

Alg Edit Test
if bhckc395-q2 gt 0 then bhckc395-q1 gt 0

if bhckc396-q2 gt 0 then bhckc396-q1 gt 0

if bhckc397-q2 gt 0 then bhckc397-q1 gt 0

if bhckc398-q2 gt 0 then bhckc398-q1 gt 0

if bhckc399-q2 gt 0 then bhckc399-q1 gt 0

if bhckc400-q2 gt 0 then bhckc400-q1 gt 0

if bhckc401-q2 gt 0 then bhckc401-q1 gt 0

if bhckc402-q2 gt 0 then bhckc402-q1 gt 0

if bhckc403-q2 gt 0 then bhckc403-q1 gt 0

if bhckc404-q2 gt 0 then bhckc404-q1 gt 0

if bhckc405-q2 gt 0 then bhckc405-q1 gt 0

FR Y-9C: EDIT-97 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7230
Intraseries HC-S2cG

Sub
MDRM
Schedule
Series
BHCK
C406
HC-S

7234

Intraseries HC-S3A

BHCK

B726

HC-S

7234

Intraseries HC-S3B

BHCK

B727

HC-S

7234

Intraseries HC-S3C

BHCK

B728

HC-S

7234

Intraseries HC-S3D

BHCK

B729

HC-S

7234

Intraseries HC-S3E

BHCK

B730

HC-S

7234

Intraseries HC-S3F

BHCK

B731

HC-S

7234

Intraseries HC-S3G

BHCK

B732

HC-S

7238
7240
7242
7244
7246
7248
7252

Quality
Quality
Quality
Quality
Quality
Quality
Quality

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

B726
B727
B728
B729
B730
B731
B732

HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S

HC-S3A
HC-S3B
HC-S3C
HC-S3D
HC-S3E
HC-S3F
HC-S3G

MARCH 2007

NOTE section follows edits.
Edit Test
If HC-S2c (columns A through G) (previous) is greater than
zero, then HC-S2c (columns A through G) (current) should
be greater than zero.
If HC-S3 (columns A through G) (previous) is greater than
zero, then HC-S3 (columns A through G) (current) should be
greater than zero.
If HC-S3 (columns A through G) (previous) is greater than
zero, then HC-S3 (columns A through G) (current) should be
greater than zero.
If HC-S3 (columns A through G) (previous) is greater than
zero, then HC-S3 (columns A through G) (current) should be
greater than zero.
If HC-S3 (columns A through G) (previous) is greater than
zero, then HC-S3 (columns A through G) (current) should be
greater than zero.
If HC-S3 (columns A through G) (previous) is greater than
zero, then HC-S3 (columns A through G) (current) should be
greater than zero.
If HC-S3 (columns A through G) (previous) is greater than
zero, then HC-S3 (columns A through G) (current) should be
greater than zero.
If HC-S3 (columns A through G) (previous) is greater than
zero, then HC-S3 (columns A through G) (current) should be
greater than zero.
HC-S3A should be less than or equal to HC-S1A.
HC-S3B should be less than or equal to HC-S1B.
HC-S3C should be less than or equal to HC-S1C.
HC-S3D should be less than or equal to HC-S1D.
HC-S3E should be less than or equal to HC-S1E.
HC-S3F should be less than or equal to HC-S1F.
HC-S3G should be less than or equal to HC-S1G.

Alg Edit Test
if bhckc406-q2 gt 0 then bhckc406-q1 gt 0

if bhckb726-q2 gt 0 then bhckb726-q1 gt 0

if bhckb727-q2 gt 0 then bhckb727-q1 gt 0

if bhckb728-q2 gt 0 then bhckb728-q1 gt 0

if bhckb729-q2 gt 0 then bhckb729-q1 gt 0

if bhckb730-q2 gt 0 then bhckb730-q1 gt 0

if bhckb731-q2 gt 0 then bhckb731-q1 gt 0

if bhckb732-q2 gt 0 then bhckb732-q1 gt 0

bhckb726 le bhckb705
bhckb727 le bhckb706
bhckb728 le bhckb707
bhckb729 le bhckb708
bhckb730 le bhckb709
bhckb731 le bhckb710
bhckb732 le bhckb711

FR Y-9C: EDIT-98 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7270
Intraseries HC-S5aA

Sub
MDRM
Schedule
Series
BHCK
B747
HC-S

7270

Intraseries HC-S5aB

BHCK

B748

HC-S

7270

Intraseries HC-S5aC

BHCK

B749

HC-S

7270

Intraseries HC-S5aD

BHCK

B750

HC-S

7270

Intraseries HC-S5aE

BHCK

B751

HC-S

7270

Intraseries HC-S5aF

BHCK

B752

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5a (columns A
through G) (current) should be greater than or equal to HCS5a (columns A through G) (previous -2).
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5a (columns A
through G) (current) should be greater than or equal to HCS5a (columns A through G) (previous -2).
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5a (columns A
through G) (current) should be greater than or equal to HCS5a (columns A through G) (previous -2).
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5a (columns A
through G) (current) should be greater than or equal to HCS5a (columns A through G) (previous -2).
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5a (columns A
through G) (current) should be greater than or equal to HCS5a (columns A through G) (previous -2).
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5a (columns A
through G) (current) should be greater than or equal to HCS5a (columns A through G) (previous -2).

Alg Edit Test
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb705-q1 ge bhckb705-q2) then (bhckb747-q1 ge
bhckb747-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb706-q1 ge bhckb706-q2) then (bhckb748-q1 ge
bhckb748-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb707-q1 ge bhckb707-q2) then (bhckb749-q1 ge
bhckb749-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb708-q1 ge bhckb708-q2) then (bhckb750-q1 ge
bhckb750-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb709-q1 ge bhckb709-q2) then (bhckb751-q1 ge
bhckb751-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb710-q1 ge bhckb710-q2) then (bhckb752-q1 ge
bhckb752-q2 - 2)

FR Y-9C: EDIT-99 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7270
Intraseries HC-S5aG

Sub
MDRM
Schedule
Series
BHCK
B753
HC-S

7272

Quality

HC-S5bA

BHCK

B754

HC-S

7272

Quality

HC-S5bB

BHCK

B755

HC-S

7272

Quality

HC-S5bC

BHCK

B756

HC-S

7272

Quality

HC-S5bD

BHCK

B757

HC-S

7272

Quality

HC-S5bE

BHCK

B758

HC-S

7272

Quality

HC-S5bF

BHCK

B759

HC-S

7272

Quality

HC-S5bG

BHCK

B760

HC-S

7273

Intraseries HC-S5bA

BHCK

B754

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5a (columns A
through G) (current) should be greater than or equal to HCS5a (columns A through G) (previous -2).
For March, sum of HC-S5a and HC-S5b (columns A through
G) should be less than or equal to 25% of HC-S1 (columns A
through G). +$10k
For March, sum of HC-S5a and HC-S5b (columns A through
G) should be less than or equal to 25% of HC-S1 (columns A
through G). +$10k
For March, sum of HC-S5a and HC-S5b (columns A through
G) should be less than or equal to 25% of HC-S1 (columns A
through G). +$10k
For March, sum of HC-S5a and HC-S5b (columns A through
G) should be less than or equal to 25% of HC-S1 (columns A
through G). +$10k
For March, sum of HC-S5a and HC-S5b (columns A through
G) should be less than or equal to 25% of HC-S1 (columns A
through G). +$10k
For March, sum of HC-S5a and HC-S5b (columns A through
G) should be less than or equal to 25% of HC-S1 (columns A
through G). +$10k
For March, sum of HC-S5a and HC-S5b (columns A through
G) should be less than or equal to 25% of HC-S1 (columns A
through G). +$10k
For June, September, and December, sum of HC-S5a and
HC-S5b (columns A through G) (current minus previous)
should be less than or equal to 25% of HC-S1 (columns A
through G) (current). +$10k

Alg Edit Test
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb711-q1 ge bhckb711-q2) then (bhckb753-q1 ge
bhckb753-q2 - 2)
if (mm-q1 eq 03) then (bhckb747 + bhckb754) le (.25 *
bhckb705) + 10
if (mm-q1 eq 03) then (bhckb748 + bhckb755) le (.25 *
bhckb706) + 10
if (mm-q1 eq 03) then (bhckb749 + bhckb756) le (.25 *
bhckb707) + 10
if (mm-q1 eq 03) then (bhckb750 + bhckb757) le (.25 *
bhckb708) + 10
if (mm-q1 eq 03) then (bhckb751 + bhckb758) le (.25 *
bhckb709) + 10
if (mm-q1 eq 03) then (bhckb752 + bhckb759) le (.25 *
bhckb710) + 10
if (mm-q1 eq 03) then (bhckb753 + bhckb760) le (.25 *
bhckb711) + 10
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb747-q1 + bhckb754-q1) - (bhckb747-q2 + bhckb754q2) le (.25 * bhckb705) + 10

FR Y-9C: EDIT-100 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7273
Intraseries HC-S5bB

Sub
MDRM
Schedule
Series
BHCK
B755
HC-S

7273

Intraseries HC-S5bC

BHCK

B756

HC-S

7273

Intraseries HC-S5bD

BHCK

B757

HC-S

7273

Intraseries HC-S5bE

BHCK

B758

HC-S

7273

Intraseries HC-S5bF

BHCK

B759

HC-S

7273

Intraseries HC-S5bG

BHCK

B760

HC-S

7275

Intraseries HC-S5bA

BHCK

B754

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, sum of HC-S5a and
HC-S5b (columns A through G) (current minus previous)
should be less than or equal to 25% of HC-S1 (columns A
through G) (current). +$10k
For June, September, and December, sum of HC-S5a and
HC-S5b (columns A through G) (current minus previous)
should be less than or equal to 25% of HC-S1 (columns A
through G) (current). +$10k
For June, September, and December, sum of HC-S5a and
HC-S5b (columns A through G) (current minus previous)
should be less than or equal to 25% of HC-S1 (columns A
through G) (current). +$10k
For June, September, and December, sum of HC-S5a and
HC-S5b (columns A through G) (current minus previous)
should be less than or equal to 25% of HC-S1 (columns A
through G) (current). +$10k
For June, September, and December, sum of HC-S5a and
HC-S5b (columns A through G) (current minus previous)
should be less than or equal to 25% of HC-S1 (columns A
through G) (current). +$10k
For June, September, and December, sum of HC-S5a and
HC-S5b (columns A through G) (current minus previous)
should be less than or equal to 25% of HC-S1 (columns A
through G) (current). +$10k
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5b (columns A
through G) (current) should be greater than or equal to HCS5b (columns A through G) (previous -2).

Alg Edit Test
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb748-q1 + bhckb755-q1) - (bhckb748-q2 + bhckb755q2) le (.25 * bhckb706) + 10
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb749-q1 + bhckb756-q1) - (bhckb749-q2 + bhckb756q2) le (.25 * bhckb707) + 10
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb750-q1 + bhckb757-q1) - (bhckb750-q2 + bhckb757q2) le (.25 * bhckb708) + 10
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb751-q1 + bhckb758-q1) - (bhckb751-q2 + bhckb758q2) le (.25 * bhckb709) + 10
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb752-q1 + bhckb759-q1) - (bhckb752-q2 + bhckb759q2) le (.25 * bhckb710) + 10
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) then
(bhckb753-q1 + bhckb760-q1) - (bhckb753-q2 + bhckb760q2) le (.25 * bhckb711) + 10
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb705-q1 ge bhckb705-q2) then (bhckb754-q1 ge
bhckb754-q2 - 2)

FR Y-9C: EDIT-101 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7275
Intraseries HC-S5bB

Sub
MDRM
Schedule
Series
BHCK
B755
HC-S

7275

Intraseries HC-S5bC

BHCK

B756

HC-S

7275

Intraseries HC-S5bD

BHCK

B757

HC-S

7275

Intraseries HC-S5bE

BHCK

B758

HC-S

7275

Intraseries HC-S5bF

BHCK

B759

HC-S

7275

Intraseries HC-S5bG

BHCK

B760

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5b (columns A
through G) (current) should be greater than or equal to HCS5b (columns A through G) (previous -2).
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5b (columns A
through G) (current) should be greater than or equal to HCS5b (columns A through G) (previous -2).
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5b (columns A
through G) (current) should be greater than or equal to HCS5b (columns A through G) (previous -2).
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5b (columns A
through G) (current) should be greater than or equal to HCS5b (columns A through G) (previous -2).
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5b (columns A
through G) (current) should be greater than or equal to HCS5b (columns A through G) (previous -2).
For June, September, and December, if HC-S1 (columns A
through G) (current) is greater than or equal to HC-S1
(columns A through G) (previous), then HC-S5b (columns A
through G) (current) should be greater than or equal to HCS5b (columns A through G) (previous -2).

Alg Edit Test
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb706-q1 ge bhckb706-q2) then (bhckb755-q1 ge
bhckb755-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb707-q1 ge bhckb707-q2) then (bhckb756-q1 ge
bhckb756-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb708-q1 ge bhckb708-q2) then (bhckb757-q1 ge
bhckb757-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb709-q1 ge bhckb709-q2) then (bhckb758-q1 ge
bhckb758-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb710-q1 ge bhckb710-q2) then (bhckb759-q1 ge
bhckb759-q2 - 2)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb711-q1 ge bhckb711-q2) then (bhckb760-q1 ge
bhckb760-q2 - 2)

FR Y-9C: EDIT-102 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7292
Intraseries HC-S6aF

Sub
MDRM
Schedule
Series
BHCK
B763
HC-S

7295

Quality

HC-S6bB

BHCK

B500

HC-S

7301

Quality

HC-S6bC

BHCK

B501

HC-S

7305

Quality

HC-S6bF

BHCK

B502

HC-S

7311
7315
7320

Quality
Quality
Quality

HC-S6bB
HC-S6bC
HC-S6bF

BHCK
BHCK
BHCK

B500
B501
B502

HC-S
HC-S
HC-S

7325

Intraseries HC-S6bF

BHCK

B502

HC-S

7340

Intraseries HC-S8aB

BHCK

B770

HC-S

7340

Intraseries HC-S8aC

BHCK

B771

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test
If the sum of HC-S6aB, HC-S6aC, and HC-S6aF (previous)
is greater than $100 thousand, then the sum of HC-S6aB,
HC-S6aC, and HC-S6aF (current) should be greater than
zero.
Sum of HC-S6aB and HC-S6bB should be less than or equal
to HC-S1B.
Sum of HC-S6aC and HC-S6bC should be less than or equal
to HC-S1C.
Sum of HC-S6aF and HC-S6bF should be less than or equal
to HC-S1F.
HC-S6bB should be less than or equal to HC-C1c1B.
HC-S6bC should be less than or equal to HC-C6aA.
HC-S6bF should be less than or equal to the sum of HCC4aA and HC-C4bA.
If the sum of HC-S6bB, HC-S6bC, and HC-S6bF (previous)
is greater than $100 thousand, then the sum of HC-S6bB,
HC-S6bC, and HC-S6bF (current) should be greater than
zero.
For June, September, December, if HC-S6a (columns B, C
and F) (current) is greater than or equal to HC-S6a (columns
B, C and F) (previous), then HC-S8a and HC-S8b (columns
B, C, and F) (current) should be greater than or equal to HCS8a and HC-S8b (columns B, C and F) (previous).

Alg Edit Test
if (bhckb761-q2 + bhckb762-q2 + bhckb763-q2) gt 100, then
(bhckb761-q1 + bhckb762-q1 + bhckb763-q1) gt 0
(bhckb761 + bhckb500) le bhckb706
(bhckb762 + bhckb501) le bhckb707
(bhckb763 + bhckb502) le bhckb710
bhckb500 le bhdm1797
bhckb501 le bhckb538
bhckb502 le (bhck1763 + bhck1764)
if (bhckb500-q2 + bhckb501-q2 + bhckb502-q2) gt 100 then
(bhckb500-q1 + bhckb501-q1 + bhckb502-q1) gt 0
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
(bhckb761-q1 ge bhckb761-q2) then (bhckb770-q1 +
bhckb773-q1) ge (bhckb770-q2 + bhckb773-q2)

For June, September, December, if HC-S6a (columns B, C if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
and F) (current) is greater than or equal to HC-S6a (columns (bhckb762-q1 ge bhckb762-q2) then (bhckb771-q1 +
B, C and F) (previous), then HC-S8a and HC-S8b (columns bhckb774-q1) ge (bhckb771-q2 + bhckb774-q2)
B, C, and F) (current) should be greater than or equal to HCS8a and HC-S8b (columns B, C and F) (previous).

FR Y-9C: EDIT-103 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7340
Intraseries HC-S8aF

Sub
MDRM
Schedule
Series
BHCK
B772
HC-S

7342

Quality

HC-S8bB

BHCK

B773

HC-S

7343

Intraseries HC-S8bB

BHCK

B773

HC-S

7345

Quality

HC-S8bC

BHCK

B774

HC-S

7346

Intraseries HC-S8bC

BHCK

B774

HC-S

7348

Quality

HC-S8bF

BHCK

B775

HC-S

7349

Intraseries HC-S8bF

BHCK

B775

HC-S

7351

Intraseries HC-S9A

BHCK

B776

HC-S

7351

Intraseries HC-S9B

BHCK

B777

HC-S

7351

Intraseries HC-S9C

BHCK

B778

HC-S

7351

Intraseries HC-S9D

BHCK

B779

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test

Alg Edit Test

For June, September, December, if HC-S6a (columns B, C if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
and F) (current) is greater than or equal to HC-S6a (columns (bhckb763-q1 ge bhckb763-q2) then (bhckb772-q1 +
B, C and F) (previous), then HC-S8a and HC-S8b (columns bhckb775-q1) ge (bhckb772-q2 + bhckb775-q2)
B, C, and F) (current) should be greater than or equal to HCS8a and HC-S8b (columns B, C and F) (previous).
For March, sum of HC-S8aB and HC-S8bB should be less
than or equal to 25% of HC-S6aB. +$10k
For June, September, and December, sum of HC-S8aB and
HC-S8bB (current minus previous) should be less than or
equal to 25% of HC-S6aB (current). +$10k
For March, sum of HC-S8aC and HC-S8bC should be less
than or equal to 25% of HC-S6aC. +$10k
For June, September, and December, sum of HC-S8aC and
HC-S8bC (current minus previous) should be less than or
equal to 25% of HC-S6aC (current). +$10k
For March, sum of HC-S8aF and HC-S8bF should be less
than or equal to 25% of HC-S6aF. +$10k.
For June, September, and December, sum of HC-S8aF and
HC-S8bF (current minus previous) should be less than or
equal to 25% of HC-S6aF (current). +$10k.
If HC-S9 (columns A through G) (previous) is greater than
zero, then HC-S9 (columns A through G) (current) should be
greater than zero.
If HC-S9 (columns A through G) (previous) is greater than
zero, then HC-S9 (columns A through G) (current) should be
greater than zero.
If HC-S9 (columns A through G) (previous) is greater than
zero, then HC-S9 (columns A through G) (current) should be
greater than zero.
If HC-S9 (columns A through G) (previous) is greater than
zero, then HC-S9 (columns A through G) (current) should be
greater than zero.

if (mm-q1 eq 03) and ((bhckb770 + bhckb773) le (.25 *
bhckb761) +10
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
((bhckb770-q1 + bhckb773-q1) - (bhckb770-q2 - bhckb773q2) le (.25 * bhckb761-q1) + 10)
if (mm-q1 eq 03) and ((bhckb771 + bhckb774) le (.25 *
bhckb762) + 10)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
((bhckb771-q1 + bhckb774-q1) - (bhckb771-q2 - bhckb774q2) le (.25 * bhckb762-q1) + 10)
if (mm-q1 eq 03) and ((bhckb772 + bhckb775) le (.25 *
bhckb763) + 10)
if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
((bhckb772-q1 + bhckb775-q1) - (bhckb772-q2 - bhckb775q2) le (.25 * bhckb763-q1) + 10)
if bhckb776-q2 gt 0 then bhckb776-q1 gt 0

if bhckb777-q2 gt 0 then bhckb777-q1 gt 0

if bhckb778-q2 gt 0 then bhckb778-q1 gt 0

if bhckb779-q2 gt 0 then bhckb779-q1 gt 0

FR Y-9C: EDIT-104 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7351
Intraseries HC-S9E

Sub
MDRM
Schedule
Series
BHCK
B780
HC-S

7351

Intraseries HC-S9F

BHCK

B781

HC-S

7351

Intraseries HC-S9G

BHCK

B782

HC-S

7355

Intraseries HC-S10A

BHCK

B783

HC-S

7355

Intraseries HC-S10B

BHCK

B784

HC-S

7355

Intraseries HC-S10C

BHCK

B785

HC-S

7355

Intraseries HC-S10D

BHCK

B786

HC-S

7355

Intraseries HC-S10E

BHCK

B787

HC-S

7355

Intraseries HC-S10F

BHCK

B788

HC-S

7355

Intraseries HC-S10G

BHCK

B789

HC-S

7361

Intraseries HC-S11A

BHCK

B790

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test
If HC-S9 (columns A through G) (previous) is greater than
zero, then HC-S9 (columns A through G) (current) should be
greater than zero.
If HC-S9 (columns A through G) (previous) is greater than
zero, then HC-S9 (columns A through G) (current) should be
greater than zero.
If HC-S9 (columns A through G) (previous) is greater than
zero, then HC-S9 (columns A through G) (current) should be
greater than zero.
If HC-S10 (columns A through G) (previous) is greater than
zero, then HC-S10 (columns A through G) (current) should
be greater than zero.
If HC-S10 (columns A through G) (previous) is greater than
zero, then HC-S10 (columns A through G) (current) should
be greater than zero.
If HC-S10 (columns A through G) (previous) is greater than
zero, then HC-S10 (columns A through G) (current) should
be greater than zero.
If HC-S10 (columns A through G) (previous) is greater than
zero, then HC-S10 (columns A through G) (current) should
be greater than zero.
If HC-S10 (columns A through G) (previous) is greater than
zero, then HC-S10 (columns A through G) (current) should
be greater than zero.
If HC-S10 (columns A through G) (previous) is greater than
zero, then HC-S10 (columns A through G) (current) should
be greater than zero.
If HC-S10 (columns A through G) (previous) is greater than
zero, then HC-S10 (columns A through G) (current) should
be greater than zero.
If HC-S11 (columns A through G) (previous) is greater than
zero, then HC-S11 (columns A through G) (current) should
be greater than zero.

Alg Edit Test
if bhckb780-q2 gt 0 then bhckb780-q1 gt 0

if bhckb781-q2 gt 0 then bhckb781-q1 gt 0

if bhckb782-q2 gt 0 then bhckb782-q1 gt 0

if bhckb783-q2 gt 0 then bhckb783-q1 gt 0

if bhckb784-q2 gt 0 then bhckb784-q1 gt 0

if bhckb785-q2 gt 0 then bhckb785-q1 gt 0

if bhckb786-q2 gt 0 then bhckb786-q1 gt 0

if bhckb787-q2 gt 0 then bhckb787-q1 gt 0

if bhckb788-q2 gt 0 then bhckb788-q1 gt 0

if bhckb789-q2 gt 0 then bhckb789-q1 gt 0

if bhckb790-q2 gt 0 then bhckb790-q1 gt 0

FR Y-9C: EDIT-105 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7361
Intraseries HC-S11B

Sub
MDRM
Schedule
Series
BHCK
B791
HC-S

7361

Intraseries HC-S11C

BHCK

B792

HC-S

7361

Intraseries HC-S11D

BHCK

B793

HC-S

7361

Intraseries HC-S11E

BHCK

B794

HC-S

7361

Intraseries HC-S11F

BHCK

B795

HC-S

7361

Intraseries HC-S11G

BHCK

B796

HC-S

7362
7364
7366
7368
7369
7371
7372
7373

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-S12A
HC-S12B
HC-S12C
HC-S12D
HC-S12E
HC-S12F
HC-S12G
HC-S12A

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

B797
B798
B799
B800
B801
B802
B803
B797

HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S

7373

Quality

HC-S12B

BHCK

B798

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test
If HC-S11 (columns A through G) (previous) is greater than
zero, then HC-S11 (columns A through G) (current) should
be greater than zero.
If HC-S11 (columns A through G) (previous) is greater than
zero, then HC-S11 (columns A through G) (current) should
be greater than zero.
If HC-S11 (columns A through G) (previous) is greater than
zero, then HC-S11 (columns A through G) (current) should
be greater than zero.
If HC-S11 (columns A through G) (previous) is greater than
zero, then HC-S11 (columns A through G) (current) should
be greater than zero.
If HC-S11 (columns A through G) (previous) is greater than
zero, then HC-S11 (columns A through G) (current) should
be greater than zero.
If HC-S11 (columns A through G) (previous) is greater than
zero, then HC-S11 (columns A through G) (current) should
be greater than zero.
HC-S12A should be less than or equal to HC-S11A.
HC-S12B should be less than or equal to HC-S11B.
HC-S12C should be less than or equal to HC-S11C.
HC-S12D should be less than or equal to HC-S11D.
HC-S12E should be less than or equal to HC-S11E.
HC-S12F should be less than or equal to HC-S11F.
HC-S12G should be less than or equal to HC-S11G.
If HC-S11 (columns A through G) is greater than $100
thousand, HC-S12 (columns A through G) should be greater
than zero.
If HC-S11 (columns A through G) is greater than $100
thousand, HC-S12 (columns A through G) should be greater
than zero.

Alg Edit Test
if bhckb791-q2 gt 0 then bhckb791-q1 gt 0

if bhckb792-q2 gt 0 then bhckb792-q1 gt 0

if bhckb793-q2 gt 0 then bhckb793-q1 gt 0

if bhckb794-q2 gt 0 then bhckb794-q1 gt 0

if bhckb795-q2 gt 0 then bhckb795-q1 gt 0

if bhckb796-q2 gt 0 then bhckb796-q1 gt 0

bhckb797 le bhckb790
bhckb798 le bhckb791
bhckb799 le bhckb792
bhckb800 le bhckb793
bhckb801 le bhckb794
bhckb802 le bhckb795
bhckb803 le bhckb796
if bhckb790 gt 100 then bhckb797 gt 0

if bhckb791 gt 100 then bhckb798 gt 0

FR Y-9C: EDIT-106 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7373
Quality
HC-S12C

Sub
MDRM
Schedule
Series
BHCK
B799
HC-S

7373

Quality

HC-S12D

BHCK

B800

HC-S

7373

Quality

HC-S12E

BHCK

B801

HC-S

7373

Quality

HC-S12F

BHCK

B802

HC-S

7373

Quality

HC-S12G

BHCK

B803

HC-S

7374

Intraseries HC-S12G

BHCK

B803

HC-S

7375

Intraseries HC-SM1a

BHCK

A249

HC-S

7381

Quality

HC-SM1a

BHCK

A249

HC-S

7382

Quality

HC-SM1a

BHCK

A249

HC-S

7385

Quality

HC-SM2a

BHCK

B804

HC-S

7400

Intraseries HC-SM2c

BHCK

A591

HC-S

MARCH 2007

NOTE section follows edits.
Edit Test
If HC-S11 (columns A through G) is greater than $100
thousand, HC-S12 (columns A through G) should be greater
than zero.
If HC-S11 (columns A through G) is greater than $100
thousand, HC-S12 (columns A through G) should be greater
than zero.
If HC-S11 (columns A through G) is greater than $100
thousand, HC-S12 (columns A through G) should be greater
than zero.
If HC-S11 (columns A through G) is greater than $100
thousand, HC-S12 (columns A through G) should be greater
than zero.
If HC-S11 (columns A through G) is greater than $100
thousand, HC-S12 (columns A through G) should be greater
than zero.
If the sum of HC-S12 (columns A through G) (previous) is
greater than $500 thousand, then the sum of HC-S12
(columns A through G) (current) should be greater than zero
If HC-SM1a (previous) is greater than zero, then HC-SM1a
(current) should be greater than zero.
If HC-SM1a is greater than zero, then HC-SM1b should be
greater than zero.
If HC-SM1b is greater than zero, then HC-SM1a should be
greater than zero.
If HC-S11A is less than HC-SM2a and HC-S11A is not equal
to HC-S12A, then the sum of HC-S2aA, HC-S2bA, HC-S2cA
and HC-S9A should be greater than zero.
If the sum of (HC-SM2a through HC-SM2c) (previous) is
greater than $10 million, then the sum of (HC-SM2a through
HC-SM2c) (current) should be greater than zero.

Alg Edit Test
if bhckb792 gt 100 then bhckb799 gt 0

if bhckb793 gt 100 then bhckb800 gt 0

if bhckb794 gt 100 then bhckb801 gt 0

if bhckb795 gt 100 then bhckb802 gt 0

if bhckb796 gt 100 then bhckb803 gt 0

if (bhckb797-q2 + bhckb798-q2 + bhckb799-q2 + bhckb800q2 + bhckb801-q2 + bhckb802-q2 + bhckb803-q2) gt 500
then (bhckb797-q1 + bhckb798-q1 + bhckb799-q1 +
bhckb800-q1 + bhckb801-q1 + bhckb802-q1 + bhckb803-q1)
gt 0
if bhcka249-q2 gt 0 then bhcka249-q1 gt 0
if bhcka249 gt 0 then bhcka250 gt 0
if bhcka250 gt 0 then bhcka249 gt 0
if (bhckb790 lt bhckb804) and (bhckb790 ne bhckb797) then
(bhckb712 + bhckc393 + bhckc400 + bhckb776) gt 0
if (bhckb804-q2 + bhckb805-q2 + bhcka591-q2) gt 10000
then (bhckb804-q1 + bhckb805-q1 + bhcka591-q1) gt 0

FR Y-9C: EDIT-107 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit Test

Edit
Edit Type Target Item
Check
7405
Quality
HC-SM2c

Sub
MDRM
Schedule
Series
BHCK
A591
HC-S

7407

Intraseries HC-SM2c

BHCK

A591

HC-S

7410

Intraseries HC-SM3a2

BHCK

B807

HC-S

7420

Intraseries HC-SM3b2

BHCK

B809

HC-S

7430

Quality

HC-SM4

BHCK

C407

HC-S

7440

Quality

HC-SM4

BHCK

C407

HC-S

For March, if HI-5f is greater than $250 thousand, then the if (mm-q1 eq 03) and bhckb492 gt 250 then (bhckb804 +
sum of HC-SM2a through HC-SM2c should be greater than bhckb805 + bhcka591) gt 0
zero.
For June, September, and December, if HI-5f (current minus if (mm-q1 eq 06 or mm-q1 eq 09 or mm-q1 eq 12) and
previous) is greater than $250 thousand, then the sum of HC- (bhckb492-q1 - bhckb492-q2) gt 250 then (bhckb804-q1 +
SM2a through HC-SM2c (current) should be greater than
bhckb805-q1 + bhcka591-q1) gt 0
zero
If the sum of HC-SM3a1 (previous) and HC-SM3a2
if (bhckb806-q2 + bhckb807-q2 ) gt 0 then (bhckb806-q1 +
(previous) is greater than zero, then the sum of HC-SM3a1 bhckb807-q1 ) gt 0
(current) and HC-SM3a2 (current) should be greater than
zero.
If the sum of HC-SM3b1 (previous) and HC-SM3b2
if (bhckb808-q2 + bhckb809-q2 ) gt 0 then (bhckb808-q1 +
(previous) is greater than zero, then the sum of HC-SM3b1 bhckb809-q1 ) gt 0
(current) and HC-SM3b2 (current) should be greater than
zero.
If the sum of HC-C6aA, HC-S1C, and HC-S6aC is greater
if (((bhckb538 + bhckb707 + bhckb762) gt 500000) or
than $500 million or [the sum of HC-C6aA and HC-S1C
((((bhckb538 + bhckb707)/(bhck2122 + bhckb707))*100 gt
divided by the sum of HC-C12A and HC-S1C is greater than 50) and (((bhck2122 + bhckb707)/(bhck2170 +
50% and the sum of HC-C12A and HC-S1C divided by the bhckb707))*100 gt 50))) and bhckb707 gt 100 then bhckc407
sum of HC-12 and HC-S1C is greater than 50%] and HCgt 0
S1C is greater than $100 thousand, then HC-SM4 should be
greater than zero
HC-SM4 should be less than or equal to 10% of HC-S1C.
bhckc407 le (bhckb707 * .10)

9560
9560
9560
9560
9560
9560
9560
9560
9560

Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

HC-S10A
HC-S10B
HC-S10C
HC-S10D
HC-S10E
HC-S10F
HC-S10G
HC-S11A
HC-S11B

BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

B783
B784
B785
B786
B787
B788
B789
B790
B791

HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S

HC-S10A should not be null and should not be negative.
HC-S10B should not be null and should not be negative.
HC-S10C should not be null and should not be negative.
HC-S10D should not be null and should not be negative.
HC-S10E should not be null and should not be negative.
HC-S10F should not be null and should not be negative.
HC-S10G should not be null and should not be negative.
HC-S11A should not be null and should not be negative.
HC-S11B should not be null and should not be negative.

MARCH 2007

Alg Edit Test

bhckb783 ne null and bhckb783 ge 0
bhckb784 ne null and bhckb784 ge 0
bhckb785 ne null and bhckb785 ge 0
bhckb786 ne null and bhckb786 ge 0
bhckb787 ne null and bhckb787 ge 0
bhckb788 ne null and bhckb788 ge 0
bhckb789 ne null and bhckb789 ge 0
bhckb790 ne null and bhckb790 ge 0
bhckb791 ne null and bhckb791 ge 0

FR Y-9C: EDIT-108 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-S11C
HC-S11D
HC-S11E
HC-S11F
HC-S11G
HC-S12A
HC-S12B
HC-S12C
HC-S12D
HC-S12E
HC-S12F
HC-S12G
HC-S1A
HC-S1B
HC-S1C
HC-S1D
HC-S1E
HC-S1F
HC-S1G
HC-S2aA
HC-S2aB
HC-S2aC
HC-S2aD
HC-S2aE
HC-S2aF
HC-S2aG
HC-S2bA
HC-S2bB
HC-S2bC
HC-S2bD
HC-S2bE
HC-S2bF
HC-S2bG

MARCH 2007

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

MDRM
B792
B793
B794
B795
B796
B797
B798
B799
B800
B801
B802
B803
B705
B706
B707
B708
B709
B710
B711
B712
B713
B714
B715
B716
B717
B718
C393
C394
C395
C396
C397
C398
C399

Schedule
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S

NOTE section follows edits.
Edit Test
HC-S11C should not be null and should not be negative.
HC-S11D should not be null and should not be negative.
HC-S11E should not be null and should not be negative.
HC-S11F should not be null and should not be negative.
HC-S11G should not be null and should not be negative.
HC-S12A should not be null and should not be negative.
HC-S12B should not be null and should not be negative.
HC-S12C should not be null and should not be negative.
HC-S12D should not be null and should not be negative.
HC-S12E should not be null and should not be negative.
HC-S12F should not be null and should not be negative.
HC-S12G should not be null and should not be negative.
HC-S1A should not be null and should not be negative.
HC-S1B should not be null and should not be negative.
HC-S1C should not be null and should not be negative.
HC-S1D should not be null and should not be negative.
HC-S1E should not be null and should not be negative.
HC-S1F should not be null and should not be negative.
HC-S1G should not be null and should not be negative.
HC-S2aA should not be null and should not be negative.
HC-S2aB should not be null and should not be negative.
HC-S2aC should not be null and should not be negative.
HC-S2aD should not be null and should not be negative.
HC-S2aE should not be null and should not be negative.
HC-S2aF should not be null and should not be negative.
HC-S2aG should not be null and should not be negative.
HC-S2bA should not be null and should not be negative.
HC-S2bB should not be null and should not be negative.
HC-S2bC should not be null and should not be negative.
HC-S2bD should not be null and should not be negative.
HC-S2bE should not be null and should not be negative.
HC-S2bF should not be null and should not be negative.
HC-S2bG should not be null and should not be negative.

Alg Edit Test
bhckb792 ne null and bhckb792 ge 0
bhckb793 ne null and bhckb793 ge 0
bhckb794 ne null and bhckb794 ge 0
bhckb795 ne null and bhckb795 ge 0
bhckb796 ne null and bhckb796 ge 0
bhckb797 ne null and bhckb797 ge 0
bhckb798 ne null and bhckb798 ge 0
bhckb799 ne null and bhckb799 ge 0
bhckb800 ne null and bhckb800 ge 0
bhckb801 ne null and bhckb801 ge 0
bhckb802 ne null and bhckb802 ge 0
bhckb803 ne null and bhckb803 ge 0
bhckb705 ne null and bhckb705 ge 0
bhckb706 ne null and bhckb706 ge 0
bhckb707 ne null and bhckb707 ge 0
bhckb708 ne null and bhckb708 ge 0
bhckb709 ne null and bhckb709 ge 0
bhckb710 ne null and bhckb710 ge 0
bhckb711 ne null and bhckb711 ge 0
bhckb712 ne null and bhckb712 ge 0
bhckb713 ne null and bhckb713 ge 0
bhckb714 ne null and bhckb714 ge 0
bhckb715 ne null and bhckb715 ge 0
bhckb716 ne null and bhckb716 ge 0
bhckb717 ne null and bhckb717 ge 0
bhckb718 ne null and bhckb718 ge 0
bhckc393 ne null and bhckc393 ge 0
bhckc394 ne null and bhckc394 ge 0
bhckc395 ne null and bhckc395 ge 0
bhckc396 ne null and bhckc396 ge 0
bhckc397 ne null and bhckc397 ge 0
bhckc398 ne null and bhckc398 ge 0
bhckc399 ne null and bhckc399 ge 0

FR Y-9C: EDIT-109 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-S2cA
HC-S2cB
HC-S2cC
HC-S2cD
HC-S2cE
HC-S2cF
HC-S2cG
HC-S3A
HC-S3B
HC-S3C
HC-S3D
HC-S3E
HC-S3F
HC-S3G
HC-S4aA
HC-S4aB
HC-S4aC
HC-S4aD
HC-S4aE
HC-S4aF
HC-S4aG
HC-S4bA
HC-S4bB
HC-S4bC
HC-S4bD
HC-S4bE
HC-S4bF
HC-S4bG
HC-S5aA
HC-S5aB
HC-S5aC
HC-S5aD
HC-S5aE

MARCH 2007

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

MDRM
C400
C401
C402
C403
C404
C405
C406
B726
B727
B728
B729
B730
B731
B732
B733
B734
B735
B736
B737
B738
B739
B740
B741
B742
B743
B744
B745
B746
B747
B748
B749
B750
B751

Schedule
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S

NOTE section follows edits.
Edit Test
HC-S2cA should not be null and should not be negative.
HC-S2cB should not be null and should not be negative.
HC-S2cC should not be null and should not be negative.
HC-S2cD should not be null and should not be negative.
HC-S2cE should not be null and should not be negative.
HC-S2cF should not be null and should not be negative.
HC-S2cG should not be null and should not be negative.
HC-S3A should not be null and should not be negative.
HC-S3B should not be null and should not be negative.
HC-S3C should not be null and should not be negative.
HC-S3D should not be null and should not be negative.
HC-S3E should not be null and should not be negative.
HC-S3F should not be null and should not be negative.
HC-S3G should not be null and should not be negative.
HC-S4aA should not be null and should not be negative.
HC-S4aB should not be null and should not be negative.
HC-S4aC should not be null and should not be negative.
HC-S4aD should not be null and should not be negative.
HC-S4aE should not be null and should not be negative.
HC-S4aF should not be null and should not be negative.
HC-S4aG should not be null and should not be negative.
HC-S4bA should not be null and should not be negative.
HC-S4bB should not be null and should not be negative.
HC-S4bC should not be null and should not be negative.
HC-S4bD should not be null and should not be negative.
HC-S4bE should not be null and should not be negative.
HC-S4bF should not be null and should not be negative.
HC-S4bG should not be null and should not be negative.
HC-S5aA should not be null and should not be negative.
HC-S5aB should not be null and should not be negative.
HC-S5aC should not be null and should not be negative.
HC-S5aD should not be null and should not be negative.
HC-S5aE should not be null and should not be negative.

Alg Edit Test
bhckc400 ne null and bhckc400 ge 0
bhckc401 ne null and bhckc401 ge 0
bhckc402 ne null and bhckc402 ge 0
bhckc403 ne null and bhckc403 ge 0
bhckc404 ne null and bhckc404 ge 0
bhckc405 ne null and bhckc405 ge 0
bhckc406 ne null and bhckc406 ge 0
bhckb726 ne null and bhckb726 ge 0
bhckb727 ne null and bhckb727 ge 0
bhckb728 ne null and bhckb728 ge 0
bhckb729 ne null and bhckb729 ge 0
bhckb730 ne null and bhckb730 ge 0
bhckb731 ne null and bhckb731 ge 0
bhckb732 ne null and bhckb732 ge 0
bhckb733 ne null and bhckb733 ge 0
bhckb734 ne null and bhckb734 ge 0
bhckb735 ne null and bhckb735 ge 0
bhckb736 ne null and bhckb736 ge 0
bhckb737 ne null and bhckb737 ge 0
bhckb738 ne null and bhckb738 ge 0
bhckb739 ne null and bhckb739 ge 0
bhckb740 ne null and bhckb740 ge 0
bhckb741 ne null and bhckb741 ge 0
bhckb742 ne null and bhckb742 ge 0
bhckb743 ne null and bhckb743 ge 0
bhckb744 ne null and bhckb744 ge 0
bhckb745 ne null and bhckb745 ge 0
bhckb746 ne null and bhckb746 ge 0
bhckb747 ne null and bhckb747 ge 0
bhckb748 ne null and bhckb748 ge 0
bhckb749 ne null and bhckb749 ge 0
bhckb750 ne null and bhckb750 ge 0
bhckb751 ne null and bhckb751 ge 0

FR Y-9C: EDIT-110 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560
9560

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality
Quality

Target Item
HC-S5aF
HC-S5aG
HC-S5bA
HC-S5bB
HC-S5bC
HC-S5bD
HC-S5bE
HC-S5bF
HC-S5bG
HC-S6aB
HC-S6aC
HC-S6aF
HC-S6bB
HC-S6bC
HC-S6bF
HC-S7aB
HC-S7aC
HC-S7aF
HC-S7bB
HC-S7bC
HC-S7bF
HC-S8aB
HC-S8aC
HC-S8aF
HC-S8bB
HC-S8bC
HC-S8bF
HC-S9A
HC-S9B
HC-S9C
HC-S9D
HC-S9E
HC-S9F

MARCH 2007

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

MDRM
B752
B753
B754
B755
B756
B757
B758
B759
B760
B761
B762
B763
B500
B501
B502
B764
B765
B766
B767
B768
B769
B770
B771
B772
B773
B774
B775
B776
B777
B778
B779
B780
B781

Schedule
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S

NOTE section follows edits.
Edit Test
HC-S5aF should not be null and should not be negative.
HC-S5aG should not be null and should not be negative.
HC-S5bA should not be null and should not be negative.
HC-S5bB should not be null and should not be negative.
HC-S5bC should not be null and should not be negative.
HC-S5bD should not be null and should not be negative.
HC-S5bE should not be null and should not be negative.
HC-S5bF should not be null and should not be negative.
HC-S5bG should not be null and should not be negative.
HC-S6aB should not be null and should not be negative.
HC-S6aC should not be null and should not be negative.
HC-S6aF should not be null and should not be negative.
HC-S6bB should not be null and should not be negative.
HC-S6bC should not be null and should not be negative.
HC-S6bF should not be null and should not be negative.
HC-S7aB should not be null and should not be negative.
HC-S7aC should not be null and should not be negative.
HC-S7aF should not be null and should not be negative.
HC-S7bB should not be null and should not be negative.
HC-S7bC should not be null and should not be negative.
HC-S7bF should not be null and should not be negative.
HC-S8aB should not be null and should not be negative.
HC-S8aC should not be null and should not be negative.
HC-S8aF should not be null and should not be negative.
HC-S8bB should not be null and should not be negative.
HC-S8bC should not be null and should not be negative.
HC-S8bF should not be null and should not be negative.
HC-S9A should not be null and should not be negative.
HC-S9B should not be null and should not be negative.
HC-S9C should not be null and should not be negative.
HC-S9D should not be null and should not be negative.
HC-S9E should not be null and should not be negative.
HC-S9F should not be null and should not be negative.

Alg Edit Test
bhckb752 ne null and bhckb752 ge 0
bhckb753 ne null and bhckb753 ge 0
bhckb754 ne null and bhckb754 ge 0
bhckb755 ne null and bhckb755 ge 0
bhckb756 ne null and bhckb756 ge 0
bhckb757 ne null and bhckb757 ge 0
bhckb758 ne null and bhckb758 ge 0
bhckb759 ne null and bhckb759 ge 0
bhckb760 ne null and bhckb760 ge 0
bhckb761 ne null and bhckb761 ge 0
bhckb762 ne null and bhckb762 ge 0
bhckb763 ne null and bhckb763 ge 0
bhckb500 ne null and bhckb500 ge 0
bhckb501 ne null and bhckb501 ge 0
bhckb502 ne null and bhckb502 ge 0
bhckb764 ne null and bhckb764 ge 0
bhckb765 ne null and bhckb765 ge 0
bhckb766 ne null and bhckb766 ge 0
bhckb767 ne null and bhckb767 ge 0
bhckb768 ne null and bhckb768 ge 0
bhckb769 ne null and bhckb769 ge 0
bhckb770 ne null and bhckb770 ge 0
bhckb771 ne null and bhckb771 ge 0
bhckb772 ne null and bhckb772 ge 0
bhckb773 ne null and bhckb773 ge 0
bhckb774 ne null and bhckb774 ge 0
bhckb775 ne null and bhckb775 ge 0
bhckb776 ne null and bhckb776 ge 0
bhckb777 ne null and bhckb777 ge 0
bhckb778 ne null and bhckb778 ge 0
bhckb779 ne null and bhckb779 ge 0
bhckb780 ne null and bhckb780 ge 0
bhckb781 ne null and bhckb781 ge 0

FR Y-9C: EDIT-111 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Check
9560
9560
9560
9560
9560
9560
9560

Edit Type
Quality
Quality
Quality
Quality
Quality
Quality
Quality

9560

Target Item
HC-S9G
HC-SM1a
HC-SM1b
HC-SM2a
HC-SM2b
HC-SM2c
HC-SM3a1

B782
A249
A250
B804
B805
A591
B806

HC-S
HC-S
HC-S
HC-S
HC-S
HC-S
HC-S

HC-S9G should not be null and should not be negative.
HC-SM1a should not be null and should not be negative.
HC-SM1b should not be null and should not be negative.
HC-SM2a should not be null and should not be negative.
HC-SM2b should not be null and should not be negative.
HC-SM2c should not be null and should not be negative.
HC-SM3a1 should not be null and should not be negative.

bhckb782 ne null and bhckb782 ge 0
bhcka249 ne null and bhcka249 ge 0
bhcka250 ne null and bhcka250 ge 0
bhckb804 ne null and bhckb804 ge 0
bhckb805 ne null and bhckb805 ge 0
bhcka591 ne null and bhcka591 ge 0
bhckb806 ne null and bhckb806 ge 0

Quality

HC-SM3a2

BHCK

B807

HC-S

HC-SM3a2 should not be null and should not be negative.

bhckb807 ne null and bhckb807 ge 0

9560

Quality

HC-SM3b1

BHCK

B808

HC-S

HC-SM3b1 should not be null and should not be negative.

bhckb808 ne null and bhckb808 ge 0

9560

Quality

HC-SM3b2

BHCK

B809

HC-S

HC-SM3b2 should not be null and should not be negative.

bhckb809 ne null and bhckb809 ge 0

9560
9570
9570
9570
9570
7600

Quality
Quality
Quality
Quality
Quality
Quality

HC-SM4
NBS-P1
NBS-P2
NBS-P3
NBS-P4
NBS1

BHCK
BHBC
BHBC
BHBC
BHBC
BHCK

C407
3516
3402
3368
3519
5356

7601

Quality

NBS1

TEXT

5356

7602

Quality

NBS2

BHCK

5357

7603

Quality

NBS2

TEXT

5357

HC-S
HC-SM4 should not be null and should not be negative.
NBS-P
NBS-P1 should not be negative.
NBS-P
NBS-P2 should not be negative.
NBS-P
NBS-P3 should not be negative.
NBS-P
NBS-P4 should not be negative.
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other

MARCH 2007

MDRM

Schedule

NOTE section follows edits.
Edit Test

Sub
Series
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK
BHCK

Alg Edit Test

bhckc407 ne null and bhckc407 ge 0
bhbc3516 ge 0 or bhbc3516 eq null
bhbc3402 ge 0 or bhbc3402 eq null
bhbc3368 ge 0 or bhbc3368 eq null
bhbc3519 ge 0 or bhbc3519 eq null
if bhck5356 ne null and bhck5356 ne 0 then text5356 ne null

if text5356 ne null then bhck5356 ne null and bhck5356 ne 0

if bhck5357 ne null and bhck5357 ne 0 then text5357 ne null

if text5357 ne null then bhck5357 ne null and bhck5357 ne 0

FR Y-9C: EDIT-112 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7604
Quality
NBS3

7605

Quality

NBS3

7606

Quality

NBS4

7607

Quality

NBS4

7608

Quality

NBS5

7609

Quality

NBS5

7610

Quality

NBS6

7611

Quality

NBS6

7612

Quality

NBS7

7613

Quality

NBS7

7614

Quality

NBS8

MARCH 2007

NOTE section follows edits.
Sub
MDRM
Schedule
Edit Test
Series
BHCK
5358
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
5358
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
5359
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
5359
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
5360
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
5360
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B027
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B027
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B028
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B028
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B029
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other

Alg Edit Test
if bhck5358 ne null and bhck5358 ne 0 then text5358 ne null

if text5358 ne null then bhck5358 ne null and bhck5358 ne 0

if bhck5359 ne null and bhck5359 ne 0 then text5359 ne null

if text5359 ne null then bhck5359 ne null and bhck5359 ne 0

if bhck5360 ne null and bhck5360 ne 0 then text5360 ne null

if text5360 ne null then bhck5360 ne null and bhck5360 ne 0

if bhckb027 ne null and bhckb027 ne 0 then textb027 ne null

if textb027 ne null then bhckb027 ne null and bhckb027 ne 0

if bhckb028 ne null and bhckb028 ne 0 then textb028 ne null

if textb028 ne null then bhckb028 ne null and bhckb028 ne 0

if bhckb029 ne null and bhckb029 ne 0 then textb029 ne null

FR Y-9C: EDIT-113 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7615
Quality
NBS8

7616

Quality

NBS9

7617

Quality

NBS9

7618

Quality

NBS10

7619

Quality

NBS10

7620

Quality

NBS11

7621

Quality

NBS11

7622

Quality

NBS12

7623

Quality

NBS12

7624

Quality

NBS13

7625

Quality

NBS13

MARCH 2007

NOTE section follows edits.
Sub
MDRM
Schedule
Edit Test
Series
TEXT
B029
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B030
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B030
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B031
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B031
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B032
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B032
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B033
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B033
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B034
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B034
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other

Alg Edit Test
if textb029 ne null then bhckb029 ne null and bhckb029 ne 0

if bhckb030 ne null and bhckb030 ne 0 then textb030 ne null

if textb030 ne null then bhckb030 ne null and bhckb030 ne 0

if bhckb031 ne null and bhckb031 ne 0 then textb031 ne null

if textb031 ne null then bhckb031 ne null and bhckb031 ne 0

if bhckb032 ne null and bhckb032 ne 0 then textb032 ne null

if textb032 ne null then bhckb032 ne null and bhckb032 ne 0

if bhckb033 ne null and bhckb033 ne 0 then textb033 ne null

if textb033 ne null then bhckb033 ne null and bhckb033 ne 0

if bhckb034 ne null and bhckb034 ne 0 then textb034 ne null

if textb034 ne null then bhckb034 ne null and bhckb034 ne 0

FR Y-9C: EDIT-114 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7626
Quality
NBS14

7627

Quality

NBS14

7628

Quality

NBS15

7629

Quality

NBS15

7630

Quality

NBS16

7631

Quality

NBS16

7632

Quality

NBS17

7633

Quality

NBS17

7634

Quality

NBS18

7635

Quality

NBS18

7636

Quality

NBS19

MARCH 2007

NOTE section follows edits.
Sub
MDRM
Schedule
Edit Test
Series
BHCK
B035
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B035
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B036
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B036
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B037
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B037
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B038
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B038
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B039
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other
TEXT
B039
Notes to the If text data is not equal to null, then financial data should not
Balance Sheet -equal null or zero.
Other
BHCK
B040
Notes to the If financial data is not equal to null or zero, then text data
Balance Sheet -should not be null.
Other

Alg Edit Test
if bhckb035 ne null and bhckb035 ne 0 then textb035 ne null

if textb035 ne null then bhckb035 ne null and bhckb035 ne 0

if bhckb036 ne null and bhckb036 ne 0 then textb036 ne null

if textb036 ne null then bhckb036 ne null and bhckb036 ne 0

if bhckb037 ne null and bhckb037 ne 0 then textb037 ne null

if textb037 ne null then bhckb037 ne null and bhckb037 ne 0

if bhckb038 ne null and bhckb038 ne 0 then textb038 ne null

if textb038 ne null then bhckb038 ne null and bhckb038 ne 0

if bhckb039 ne null and bhckb039 ne 0 then textb039 ne null

if textb039 ne null then bhckb039 ne null and bhckb039 ne 0

if bhckb040 ne null and bhckb040 ne 0 then textb040 ne null

FR Y-9C: EDIT-115 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)

Edit
Edit Type Target Item
Check
7637
Quality
NBS19

7638

Quality

NBS20

7639

Quality

NBS20

MARCH 2007

NOTE section follows edits.
Sub
MDRM
Schedule
Edit Test
Alg Edit Test
Series
TEXT
B040
Notes to the If text data is not equal to null, then financial data should not if textb040 ne null then bhckb040 ne null and bhckb040 ne 0
Balance Sheet -equal null or zero.
Other
BHCK
B041
Notes to the If financial data is not equal to null or zero, then text data
if bhckb041 ne null and bhckb041 ne 0 then textb041 ne null
Balance Sheet -should not be null.
Other
TEXT
B041
Notes to the If text data is not equal to null, then financial data should not if textb041 ne null then bhckb041 ne null and bhckb041 ne 0
Balance Sheet -equal null or zero.
Other

FR Y-9C: EDIT-116 of 117

Quality (Q) and Intraseries (I) Edits for the FR Y-9C
(Effective as of March 31, 2007)
NOTE section follows edits.
Edit
Edit Type Target Item
Sub
MDRM
Schedule
Edit Test
Alg Edit Test
Check
Series
NOTES:
Schedule HC-I (6170 through 6202) : Data for Schedule HC-I must be submitted and will be reviewed for accuracy and quality for all top-tier BHCs or lower-tier BHCs functioning as the consolidated
Schedule HC-K (6206, 6208, 6210, 6212, 6216, 6218, 6224, 6227, 6251, 6253, 6271, 6273, 6281, 6283, 6288, and 6290): This edit uses the Balance Sheet and Income data for comparison. The
For March report (Q edits) - (HI-current/HC-current) X 100 X 4.
For June, September, and December (I edits), if prior period data do not exist, bypass the edit; otherwise, (HI-current minus previous/HC-current) X 100 X 4.
Schedule HC-K (6206, 6210, 6212, 6216, 6224, 6251, 6271, 6281, and 6288): If the denominator is zero, fail the edit.
Schedule HC-K (6245 and 6295): This is a size error edit. Three tests are performed for the edit:
(a) if both the numerator and the denominator are zero, skip the edit;
(b) if either the numerator or the denominator is zero and the other is greater than zero, fail the edit; and
(c) if both the numerator and the denominator are greater than zero, perform the edit.
Schedule HC-R (6750 through 7150): This schedule is to be submitted on a consolidated basis. Data for Schedule HC-R must be submitted and will be reviewed for accuracy and quality for all top-tier

MARCH 2007

FR Y-9C: EDIT-117 of 117