Consolidated Reports of Condition and Income

DRAFT

Draft Instructions
for the Proposed New and Revised Call Report Items
for 2010

DRAFT
Draft Instructions
for the Proposed New and Revised Call Report Items
for 2010
Contents

Schedule RI – Income Statement
Memorandum items 14 through 14.c

2

Schedule RC-C, Part I – Loans and Leases
Items 9 through 9.b.(2)
Memorandum items 15 through 15.c.(2) *

3
6

Schedule RC-E – Deposit Liabilities
Memorandum items 1.c through 1.c.(2)
Memorandum items 2.c through 2.e

8
9

Schedule RC-L – Derivatives and Off-Balance Sheet Items
Item 1
Items 1.a.(1) and 1.a.(2) *
Items 1.b through 1.b.(2)
Items 1.e through 1.e.(3)

10
11
12
12

Schedule RC-M – Memoranda
Items 13 through 13.d

13

NOTE: Unless otherwise indicated, the proposed Call Report revisions listed above
would take effect as of March 31, 2010. In addition, the agencies have proposed to
change the reporting frequency for:
(1) Schedule RC-C, Part II – Loans to Small Businesses and Small Farms, and
(2) Schedule RC-O, Memorandum item 1.a.(2), “Number of deposit accounts (excluding
retirement accounts) of $250,000 or less,” and Memorandum item 1.c.(2), “Number of
retirement deposit accounts of $250,000 or less,”
from annually to quarterly effective March 31, 2010. The existing instructions for
Schedule RC-C, Part II, and these Schedule RC-O Memorandum items would not
otherwise be revised.

* Proposed Memorandum items 15 through 15.c.(2) on Schedule RC-C, Part I, and
items 1.a.(1) and 1.a.(2) on Schedule RC-L would be collected annually beginning
December 31, 2010.

1

DRAFT
Draft Instructions
for the Proposed New and Revised Call Report Items
for 2010

Schedule RI – Income Statement
Memoranda
Item No.
14

Caption and Instructions
Other-than-temporary impairment losses on held-to-maturity and available-for-sale
debt securities. When the fair value of an individual held-to-maturity or available-for-sale
debt security is less than its amortized cost basis, the security is impaired and the impairment
is either temporary or other-than-temporary. To determine whether the impairment is otherthan-temporary, a bank must apply the relevant guidance in FASB Accounting Standards
Codification Section 320-10-35, Investments – Debt and Equity Securities – Overall –
Subsequent Measurement. This guidance was formerly included in FASB Statement No.
115, Accounting for Certain Investments in Debt and Equity Securities; FASB Staff Position
(FSP) FAS 115-1 and FAS 124-1, The Meaning of Other-Than-Temporary Impairment and Its
Application to Certain Investments; FSP FAS 115-2 and FAS 124-2, Recognition and
Presentation of Other-Than-Temporary Impairments; Emerging Issues Task Force (EITF)
Issue No. 99-20, Recognition of Interest Income and Impairment on Purchased Beneficial
Interests and Beneficial Interests That Continue to Be Held by a Transferor in Securitized
Financial Assets; and FSP EITF 99-20-1, Amendments to the Impairment Guidance of EITF
Issue No. 99-20.
Report in the appropriate subitem the specified information on other-than-temporary
impairment losses on held-to-maturity and available-for-sale debt securities that have
occurred during the calendar year to date.

14.a

Total other-than-temporary impairment losses. When an other-than-temporary
impairment loss has occurred on an individual debt security, the total amount of the loss is
the entire difference between the amortized cost of the debt security and its fair value on the
measurement date of the other-than-temporary impairment. Report the total other-thantemporary impairment losses on held-to-maturity and available-for-sale debt securities
recognized in earnings and other comprehensive income during the calendar year to date.

14.b

Portion of losses recognized in other comprehensive income (before income taxes).
When an other-than-temporary impairment loss has occurred on an individual debt security, if
the bank does not intend to sell the security and it is not more likely than not that the bank will
be required to sell the security before recovery of its amortized cost basis less any currentperiod credit loss, the other-than-temporary impairment loss must be separated into (a) the
amount representing the credit loss, which must be recognized in earnings, and (b) the
amount related to all other factors, which must be recognized in other comprehensive
income. Report the portion of other-than-temporary impairment losses included in
Memorandum item 14.a above related to factors other than credit that has been recognized in
other comprehensive income (before income taxes) during the calendar year to date.
Exclude other-than-temporary impairment losses on debt securities that the bank intends to
sell and on debt securities that it is more likely than not that the bank will be required to sell
before recovery of its amortized cost basis less any current-period credit loss, the entire
amount of which must be recognized in earnings.

2

DRAFT
Schedule RI – Income Statement (cont.)
Memoranda
Item No.

Caption and Instructions

14.c

Net impairment losses recognized in earnings. Report Schedule RI, Memorandum
item 14.a, less Memorandum item 14.b, which represents the amount of other-thantemporary impairment losses on held-to-maturity and available-for-sale debt securities that
has been recognized in earnings during the calendar year to date. This amount is included in
the realized gains (losses) on held-to-maturity and available-for-sale securities reported in
Schedule RI, items 6.a and 6.b.

Schedule RC-C, Part I – Loans and Leases
Item No.
9

Caption and Instructions
Loans to nondepository financial institutions and other loans. Report loans to
nondepository financial institutions, loans for purchasing or carrying securities, and all other
loans that cannot properly be reported in one of the preceding items in this schedule. On the
FFIEC 041, all banks should report in the appropriate subitem of column B loans to
nondepository financial institutions (item 9.a) and other loans (item 9.b); banks with
$300 million or more in total assets should also report in the appropriate subitem of column A
loans for purchasing or carrying securities (item 9.b.(1)) and all other loans (item 9.b.(2)). On
the FFIEC 031, all banks should report the total amount of these loans for the fully
consolidated bank in column A, but with a breakdown between loans to nondepository
financial institutions (item 9.a), loans for purchasing or carrying securities (item 9.b.(1)), and
all other loans (item 9.b.(2)) for domestic offices in column B.
Loans to nondepository financial institutions include:
(1) Loans (other than those that meet the definition of a “loan 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 from such companies, which – unless
held for trading – are to be reported in Schedule RC-C, part I, item 1.)
(2) Loans to holding companies of other depository institutions.
(3) Loans to insurance companies.
(4) 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 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).
(5) Loans to federally-sponsored lending agencies (see the Glossary entry for
“federally-sponsored lending agency" for the definition of this term).
(6) Loans to investment banks.

3

DRAFT
Schedule RC-C, Part I – Loans and Leases (cont.)
Item No.

Caption and Instructions

9
(cont.)

(7) Loans and advances made to the bank's own trust department.
(8) 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.
(9) Loans to Small Business Investment Companies.
Other loans include (1) loans for purchasing or carrying securities and (2) all other loans, as
described below.
Loans for purchasing or carrying securities include:
(1) All loans to brokers and dealers in securities (other than those that meet the definition of
a “loan secured by real estate” and those to depository institutions).
(2) All loans, whether secured (other than those that meet the definition of a “loan secured by
real estate”) or unsecured, to any other borrower for the purpose of purchasing or
carrying securities, such as:
(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 and mutual funds, but excluding loans to Small
Business Investment Companies.
(e) Loans to "plan lenders" as defined in Section 221.4(a) of Federal Reserve
Regulation U.
(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 as described in
Section 221.3(q) of Federal Reserve Regulation U, unless the loan is excepted by
that section.
(g) Loans to Employee Stock Ownership Plans (ESOPs).
For purposes of the Report of Condition, the purpose of a loan collateralized by "stock" is
determined as follows:
(a) For loans that are collateralized in whole or in part by "margin stock," as defined by
Federal Reserve Regulation U, the purpose of the loan is determined by the latest
Statement of Purpose (Form FR U-1) on file.
(b) For loans that are collateralized by "stock" other than "margin stock," the bank may
determine the purpose of the loan according to the most current information available.

4

DRAFT
Schedule RC-C, Part I – Loans and Leases (cont.)
Item No.

Caption and Instructions

9
(cont.)

Exclude from loans for purchasing or carrying securities:
(1) Loans to banks in foreign countries that act as brokers and dealers in securities (report in
Schedule RC-C, part I, item 2).
(2) Loans to depository institutions for the purpose of purchasing or carrying securities
(report Schedule RC-C, part I, item 2).
(3) Transactions reportable in Schedule RC, item 3, "Federal funds sold and securities
purchased under agreements to resell."
(4) Loans that meet the definition of a “loan secured by real estate” (report in
Schedule RC-C, part I, item 1).
All other loans include all loans and discounts (other than loans for purchasing or
carrying securities) that cannot properly be reported in one of the preceding items in
Schedule RC-C, part I, such as:
(1) Unplanned overdrafts to deposit accounts (except overdrafts of depository institutions,
which are to be reported in Schedule RC-C, part I, item 2; overdrafts of foreign
governments and official institutions, which are to be reported in Schedule RC-C, part I,
item 7; and overdrafts of states and political subdivisions in the U.S., which are to be
reported in Schedule RC-C, part I, item 8).
(2) Loans (other than those that meet the definition of a “loan 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 (which are to
be reported in Schedule RC-C, part I, item 4).
(3) Loans to individuals for investment purposes (as distinct from commercial, industrial, or
professional purposes), other than those that meet the definition of a “loan secured by
real estate” or a “loan for purchasing or carrying securities.”
Exclude from all other loans 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 such planned overdrafts in other
items of Schedule RC-C, part I, as appropriate). For example, report advances to banks in
foreign countries in the form of "advance agreement" overdrafts as loans to depository
institutions in Schedule RC-C, part I, item 2, and overdrafts under consumer check-credit
plans as “Other revolving credit plans” to individuals in Schedule RC-C, part I, item 6.b.
Report both planned and unplanned overdrafts on "due to" deposit accounts of depository
institutions in Schedule RC-C, part I, item 2.

9.a

Loans to nondepository financial institutions. Report in column B all loans to
nondepository financial institutions (on the FFIEC 031, in domestic offices) as described
above.

5

DRAFT
Schedule RC-C, Part I – Loans and Leases (cont.)
Item No.

Caption and Instructions

NOTE: Item 9.b is not applicable to banks filing the FFIEC 031report forms.
9.b

Other loans. On the FFIEC 041, report in column B other loans as described above.

NOTE: Items 9.b.(1) and 9.b.(2) are not applicable to banks filing the FFIEC 041 report forms that have
less than $300 million in total assets.
9.b.(1)

Loans for purchasing or carrying securities. Report (on the FFIEC 041, in column A;
on the FFIEC 031, in column B) all loans for purchasing or carrying securities (on the
FFIEC 031, in domestic offices) as described above.

9.b.(2)

All other loans. Report (on the FFIEC 041, in column A; on the FFIEC 031, in column B) all
other loans (on the FFIEC 031, in domestic offices) as described above.

* * * * * * *
Memoranda
Item No.

Caption and Instructions

NOTE: Memorandum item 15 is to be completed for the December report only.
15

Reverse mortgages (in domestic offices). A reverse mortgage is an arrangement in which
a homeowner borrows against the equity in his or her home and receives cash either in a
lump sum or through periodic payments. However, unlike a traditional mortgage loan, no
payment is required until the borrower no longer uses the home as his or her principal
residence. Cash payments to the borrower after closing, if any, and accrued interest are
added to the principal balance. These loans may have caps on their maximum principal
balance or they may have clauses that permit the cap on the maximum principal balance to
be increased under certain circumstances. The reverse mortgage market currently consists
of two basic types of products: proprietary products designed and originated by financial
institutions and a federally-insured product known as a Home Equity Conversion Mortgage
(HECM).
Report in the appropriate subitem the specified information about the bank’s involvement with
reverse mortgages (in domestic offices).

15.a

Reverse mortgages outstanding that are held for investment. Report in the appropriate
subitem the amount of HECM and proprietary reverse mortgages held for investment that are
included in Schedule RC-C, part I, item 1.c, Loans “Secured by 1-4 family residential
properties.” A loan is held for investment if the bank has the intent and ability to hold the loan
for the foreseeable future or until maturity or payoff. Exclude reverse mortgages that are held
for sale.

15.a.(1)

Home Equity Conversion Mortgage (HECM) reverse mortgages. Report the amount of
HECM reverse mortgages held for investment that are included in Schedule RC-C, part I,
item 1.c, Loans “Secured by 1-4 family residential properties.”

15.a.(2)

Proprietary reverse mortgages. Report the amount of proprietary reverse mortgages held
for investment that are included in Schedule RC-C, part I, item 1.c, Loans “Secured by 1-4
family residential properties.”

6

DRAFT
Schedule RC-C, Part I – Loans and Leases (cont.)
Memoranda
Item No.
15.b

Caption and Instructions
Estimated number of reverse mortgage loan referrals to other lenders during the year
from whom compensation has been received for services performed in connection
with the origination of the reverse mortgages. A bank that does not underwrite and fund
reverse mortgages may refer customers to other lenders that underwrite and fund such
mortgages. Under the Real Estate Settlement Procedures Act and its implementing
regulations, a mortgage lender may pay fees or compensation to another party, such as a
bank that has referred a customer to the mortgage lender, only for services actually
performed by that party.
If the bank receives compensation from reverse mortgage lenders for services the bank has
performed in connection with the origination of reverse mortgages granted to customers that
the bank has referred to the reverse mortgage lenders, report in the appropriate subitem a
reasonable estimate of the number of HECM and proprietary reverse mortgages for which the
bank received such compensation during the year. Do not report the estimated amount of
referral fee income in these subitems.

15.b.(1)

Home Equity Conversion Mortgage (HECM) reverse mortgages. Report a reasonable
estimate of the number of HECM reverse mortgages for which the bank received
compensation for services performed during the year in connection with the origination of
HECM reverse mortgages granted to customers that the bank has referred to the reverse
mortgage lenders.

15.b.(2)

Proprietary reverse mortgages. Report a reasonable estimate of the number of proprietary
reverse mortgages for which the bank received compensation for services performed during
the year in connection with the origination of proprietary reverse mortgages granted to
customers that the bank has referred to the reverse mortgage lenders.

15.c

Principal amount of reverse mortgage originations that have been sold during the year.
Report in the appropriate subitem the principal amount of HECM and proprietary reverse
mortgages sold during the year that were originated by the bank. Report the principal
balance outstanding of the reverse mortgages as of their sale dates, which excludes any
unused commitments to the borrowers on the reverse mortgages sold.

15.c.(1)

Home Equity Conversion Mortgage (HECM) reverse mortgages. Report the principal
amount of HECM reverse mortgages sold during the year that were originated by the bank.

15.c.(2)

Proprietary reverse mortgages. Report the principal amount of proprietary reverse
mortgages sold during the year that were originated by the bank.

7

DRAFT
Schedule RC-E – Deposit Liabilities
Memoranda
Item No.
1.c

Caption and Instructions
Fully insured brokered deposits. Report in the appropriate subitem all fully insured
brokered deposits (as defined in the Glossary entry for "brokered deposits") included in
Schedule RC-E, Memorandum item 1.b above.
In some cases, brokered certificates of deposit are issued in $1,000 amounts under a master
certificate of deposit issued by a bank to a deposit broker in an amount that exceeds
$250,000. For these so-called “retail brokered deposits,” multiple purchases by individual
depositors from an individual bank normally do not exceed the applicable deposit insurance
limit (currently $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 issuing the deposits. If this information is not readily available to the
issuing bank, 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 RC-E,
Memorandum item 1.c.(1), below. 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 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 RC-E, Memorandum item 1.c.(1), below.
The dollar amounts used as the basis for reporting fully insured brokered deposits in
Memorandum items 1.c.(1) and 1.c.(2) reflect the deposit insurance limits in effect on the
report date. At present, these limits are $250,000 for “retirement deposit accounts” and
$250,000 for other deposit accounts, which takes into account the temporary increase in
deposit insurance for other deposit accounts that is in effect through December 31, 2013.

1.c.(1)

Brokered deposits of less than $100,000. Report in this item brokered deposits with
balances of less than $100,000. Also report in this item time deposits issued to deposit
brokers in the form of certificates of deposit of $100,000 or more that have been participated
out by the broker in shares with balances of less than $100,000.
For brokered deposits that represent retirement deposit accounts (as defined in
Schedule RC-O, Memorandum item 1) eligible for $250,000 in deposit insurance coverage,
report such brokered deposits in this item only if their balances are less than $100,000.

1.c.(2)

Brokered deposits of $100,000 through $250,000 and certain brokered retirement
deposit accounts. Report in this item those brokered deposits (including brokered
retirement deposit accounts) with balances of $100,000 through $250,000. Also report in this
item time deposits issued to deposit brokers in the form of certificates of deposit of more than
$250,000 that have been participated out by the broker in shares with balances of $100,000
through $250,000.

8

DRAFT
Schedule RC-E – Deposit Liabilities (cont.)
Memoranda
Item No.

Caption and Instructions

1.c.(2)
(cont.)

For brokered deposits that represent retirement deposit accounts (as defined in
Schedule RC-O, Memorandum item 1) eligible for $250,000 in deposit insurance coverage,
report such brokered deposits in this item only if their balances are $100,000 through
$250,000 or if they have been issued by the bank in denominations of more than $250,000
and have been participated out by the broker in shares of $100,000 through exactly
$250,000.

* * * * * * *
Memoranda
Item No.
2.c

Caption and Instructions
Total time deposits of $100,000 through $250,000. Report in this item all time deposits
included in Schedule RC-E, column C, above with balances of $100,000 through $250,000.
This item includes both time certificates of deposit and open-account time deposits with
balances of $100,000 through $250,000, regardless of negotiability or transferability.
Exclude from this item and from Schedule RC-E, Memorandum item 2.d, below:
•
•

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, and
all time deposits with balances of less than $100,000,

which should be reported in Schedule RC-E, Memorandum item 2.b, above.
NOTE: Banks should include as time deposits of $100,000 through $250,000 those time
deposits originally issued in denominations of less than $100,000 that, because of interest
paid or credited, or because of additional deposits, now have balances of $100,000 through
$250,000.
2.d

Total time deposits of more than $250,000. Report in this item all time deposits included in
Schedule RC-E, column C, above with balances of more than $250,000. This item includes
both time certificates of deposit and open-account time deposits with balances of more than
$250,000, regardless of negotiability or transferability.
NOTE: Banks should include as time deposits of more than $250,000 those time deposits
originally issued in denominations of $250,000 or less that, because of interest paid or
credited, or because of additional deposits, now have balances of more than $250,000.

2.e

Individual Retirement Accounts (IRAs) and Keogh Plan accounts included in
Memorandum items 2.c and 2.d above. Report in this item all IRA and Keogh Plan time
deposits of $100,000 or more included in Schedule RC-E, Memorandum items 2.c and 2.d,
above. These IRA and Keogh Plan time deposits will also have been included in
Schedule RC-E, Memorandum item 1.a., “Total Individual Retirement Accounts (IRAs) and
Keogh Plan accounts.”

9

DRAFT
Schedule RC-E – Deposit Liabilities (cont.)
Memoranda
Item No.

Caption and Instructions

2.e
(cont.)

IRAs include traditional IRAs, Roth IRAs, Simplified Employee Pension (SEP) IRAs, and
SIMPLE IRAs. Exclude deposits in "Section 457" deferred compensation plans and selfdirected defined contribution plans, which are primarily 401(k) plan accounts. Also exclude
deposits in Health Savings Accounts, Medical Savings Accounts, and Coverdell Education
Savings Accounts (formerly known as Education IRAs).

Schedule RC-L – Derivatives and Off-Balance Sheet Items
Item No.
1

Caption and Instructions
Unused commitments. Report in the appropriate subitem the unused portions of
commitments. Unused commitments are to be reported gross, i.e., include in the appropriate
subitem the unused amount of commitments acquired from and conveyed or participated to
others. However, exclude commitments conveyed or participated to others that the bank is
not legally obligated to fund even if the party to whom the commitment has been conveyed or
participated fails to perform in accordance with the terms of the commitment.
For purposes of this item, commitments include:
(1) Commitments to make or purchase extensions of credit in the form of loans or
participations in loans, lease financing receivables, or similar transactions.
(2) Commitments for which the bank has charged a commitment fee or other consideration.
(3) Commitments that are legally binding.
(4) Loan proceeds that the bank is obligated to advance, such as:
(a) Loan draws;
(b) Construction progress payments; and
(c) Seasonal or living advances to farmers under prearranged lines of credit.
(5) Rotating, revolving, and open-end credit arrangements, including, but not limited to, retail
credit card lines and home equity lines of credit.
(6) Commitments to issue a commitment at some point in the future, where the bank has
extended terms, the borrower has accepted the offered terms, and the extension and
acceptance of the terms are in writing or, if not in writing, are legally binding on the bank
and the borrower, even though the related loan agreement has not yet been signed.
(7) Overdraft protection on depositors’ accounts offered under a program where the bank
advises account holders of the available amount of overdraft protection, for example,
when accounts are opened or on depositors' account statements or ATM receipts.
(8) The bank’s own takedown in securities underwriting transactions.

10

DRAFT
Schedule RC-L – Derivatives and Off-Balance Sheet Items (cont.)
Item No.

Caption and Instructions

1
(cont.)

(9) Revolving underwriting facilities (RUFs), note issuance facilities (NIFs), and other similar
arrangements, which are facilities under which a borrower can issue on a revolving basis
short-term paper in its own name, but for which the underwriting banks 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.
Exclude forward contracts and other commitments that meet the definition of a derivative
and must be accounted for in accordance with FASB Accounting Standards Codification
Topic 815, Derivatives and Hedging (formerly referred to as FASB Statement No. 133), which
should be reported in Schedule RC-L, item 12. Include the amount (not the fair value) of the
unused portions of loan commitments that do not meet the definition of a derivative that the
bank has elected to report at fair value under a fair value option. Also include forward
contracts that do not meet the definition of a derivative.
The unused portions of commitments are to be reported in the appropriate subitem
regardless of whether they contain “material adverse change” clauses or other provisions 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’s proportional share of
the commitment.
For purposes of reporting the unused portions of revolving asset-based lending
commitments, the commitment is defined as the amount a bank 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 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 will not advance funds regardless of the
amount of collateral posted. This definition of “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.

* * * * * * *
Item No.

Caption and Instructions

NOTE: Items 1.a.(1) and (2) are to be completed for the December report only.
1.a.(1)

Unused commitments for Home Equity Conversion Mortgage (HECM) reverse
mortgages outstanding that are held for investment (in domestic offices). For those
HECM reverse mortgages outstanding (in domestic offices) that have been included in
Schedule RC-C, part I, Memorandum item 15.a.(1), that are structured in whole or in part
like home equity lines of credit, report the unused commitments to provide additional funds
after closing to borrowers under the terms of their reverse mortgage loan agreements.
The amount reported in this item should also be included in the amount reported in
Schedule RC-L, item 1.a, “Revolving, open-end lines secured by 1-4 family residential
properties, i.e., home equity lines,” above.

11

DRAFT
Schedule RC-L – Derivatives and Off-Balance Sheet Items (cont.)
Item No.

Caption and Instructions

1.a.(2)

Unused commitments for proprietary reverse mortgages outstanding that are held
for investment (in domestic offices). For those proprietary reverse mortgages outstanding
(in domestic offices) that have been included in Schedule RC-C, part I, Memorandum
item 15.a.(2), that are structured in whole or in part like home equity lines of credit, report the
unused commitments to provide additional funds after closing to borrowers under the terms of
their reverse mortgage loan agreements. The amount reported in this item should also be
included in the amount reported in Schedule RC-L, item 1.a, “Revolving, open-end lines
secured by 1-4 family residential properties, i.e., home equity lines,” above.

1.b

Credit card lines. Report the unused portions of all commitments to extend credit both to
individuals for household, family, and other personal expenditures and to other customers,
including commercial and industrial enterprises, through credit cards. Exclude home equity
lines accessible through credit cards. Banks 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.
Banks that have either $300 million or more in total assets or $300 million or more in credit
card lines (as reported in Schedule RC, item 12, and Schedule RC-L, item 1.b, respectively,
as of June 30 of the previous calendar year) should also report a breakdown of their credit
card lines between unused consumer credit card lines (item 1.b.(1)) and other unused credit
card lines (item 1.b.(2)). The sum of Schedule RC-L, items 1.b.(1) and 1.b.(2), must equal
Schedule RC-L, item 1.b.

1.b.(1)

Unused consumer credit card lines. Report the unused portions of all commitments to
extend credit to individuals for household, family, and other personal expenditures through
credit cards that are included in Schedule RC-L, item 1.b, above.

1.b.(2)

Other unused credit card lines. Report the unused portions of all commitments to extend
credit to customers through credit cards for purposes other than household, family, and other
personal expenditures that are included in Schedule RC-L, item 1.b., above. Include, for
example, unused credit card lines under "corporate" or "business" credit card programs under
which credit cards are issued to one or more of a company's employees for business-related
uses.

* * * * * * *
Item No.

Caption and Instructions

1.e

Other unused commitments. Report in the appropriate subitem the unused portion of all
commercial and industrial loan commitments, commitments for loans to financial institutions,
and all other commitments not reportable in Schedule RC-L, items 1.a through 1.d., 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 advises account holders of the available amount of protection.

1.e.(1)

Commercial and industrial loans. Report the unused portions of commitments to extend
credit for commercial and industrial purposes, i.e., commitments that, when funded, would be
reportable as commercial and industrial loans in Schedule RC-C, part I, item 4, “Commercial
and industrial loans." Exclude unused credit card lines to commercial and industrial
enterprises (report in Schedule RC-L, item 1.b, and, if applicable, item 1.b.(2), above).

12

DRAFT
Schedule RC-L – Derivatives and Off-Balance Sheet Items (cont.)
Item No.

Caption and Instructions

1.e.(2)

Loans to financial institutions. Report the unused portions of commitments to extend
credit to financial institutions, i.e., commitments that, when funded, would be reportable either
as loans to depository institutions in Schedule RC-C, part I, item 2, “Loans to depository
institutions and acceptances of other banks," or as loans to nondepository financial
institutions in Schedule RC-C, part I, item 9.a, “Loans to nondepository financial institutions.”

1.e.(3)

All other unused commitments. Report the unused portions of commitments not reportable
in Schedule RC-L, items 1.a through 1.e.(2), above.
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 RC-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 RC-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 Accounting Standards Codification Topic 815, Derivatives and
Hedging (formerly referred to as FASB Statement No. 133 ), which should be reported in
Schedule RC-L, item 12.

Schedule RC-M – Memoranda
Item No.
13

Caption and Instructions
Assets covered by loss-sharing agreements with the FDIC. Under a loss-sharing
agreement, the FDIC agrees to absorb a portion of the losses on a specified pool of a failed
insured depository institution’s assets in order to maximize asset recoveries and minimize the
FDIC’s losses. In general, the FDIC will reimburse 80 percent of losses incurred by an
acquiring institution on covered assets over a specified period of time up to a stated threshold
amount, with the acquirer absorbing 20 percent of the losses on these assets. Any losses
above the stated threshold amount will be reimbursed by the FDIC at 95 percent of the losses
recognized by the acquirer.
Report in the appropriate subitem the balance sheet carrying amount as of the report date of
all assets acquired from failed insured depository institutions or otherwise purchased from the
FDIC that are covered by loss-sharing agreements with the FDIC. These asset amounts
should also be included in the balance sheet category appropriate to the asset on
Schedule RC, Balance Sheet.
Do not report the “book value” of the covered assets on the failed institution’s books, which
may be the amount upon which payments from the FDIC to the reporting bank are to be
based in accordance with the loss-sharing agreement.

13.a

Loans and leases. Report the carrying amount of loans and leases held for sale (included in
Schedule RC, item 4.a) and the recorded investment in loans held for investment (included in
Schedule RC, item 4.b) acquired from failed insured depository institutions or otherwise
purchased from the FDIC that are covered by loss-sharing agreements with the FDIC.

13.b

Other real estate owned. Report the carrying amount of other real estate owned (included
in Schedule RC, item 7) acquired from failed insured depository institutions or otherwise
purchased from the FDIC that are covered by loss-sharing agreements with the FDIC.

13

DRAFT
Schedule RC-M – Memoranda (cont.)
Item No.

Caption and Instructions

13.c

Debt securities. Report the amortized cost of held-to-maturity debt securities (included in
Schedule RC, items 2.a) and the fair value of available-for-sale debt securities (included in
Schedule RC, item 2.b) acquired from failed insured depository institutions or otherwise
purchased from the FDIC and covered by loss-sharing agreements with the FDIC.

13.d

Other assets. Report the balance sheet carrying amount of all assets that cannot properly
be reported in Schedule RC-M, items 13.a through 13.c, and have been acquired from failed
insured depository institutions or otherwise purchased from the FDIC and are covered by
loss-sharing agreements with the FDIC.

14