Report of Transaction Accounts, Other Deposits, and Vault Cash (quarterly)

Board of Governors of the Federal Reserve System

Instructions for Preparation of

Report of Transaction Accounts, Other Deposits,
and Vault Cash
Reporting Form FR 2900
For use by U.S. branches and agencies of foreign (non-U.S.) banks. There are separate instructions for credit unions,
commercial banks, Edge Act and agreement corporations, industrual banks, building or savings and loan associations,
mutual savings banks, cooperative banks, homestead associations, and savings banks.

FR 2900 Branches and Agencies

September 2015

Table of Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Section 1 – General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
A. Who Must Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
B. Reporting Frequency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
C. Where to Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
D. How to Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
D.1. Treatment of International Banking Facility (IBF) Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
D.2. Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
D.3. Basis of Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
D.4. Denomination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
D.5. Foreign (Non-U.S.) Currency-Denominated Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
D.6. Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
D.7. Weekend and Holiday Posting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
D.8. Pre-Posting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
D.9. Overdrafts or Negative Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
D.10. Unposted Debits and Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
D.11. Rejected Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
D.12. Filing of Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
E. Requests for Revised Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
F. Liabilities That Are Reservable under Regulation D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
G. Deposits as Defined under Regulation D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
G.1. Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
G.2. Primary Obligations (A,C,D, and F) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
G.3. Primary Obligation (AA.1, BB.2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
H. Treatment of Pass-Through Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
I. Treatment of Trust Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
J. Treatment of Escrow Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
K. Treatment of Payment Errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
K.1. Duplicate Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
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K.2. Misdirected Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
K.3. Failed Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
K.4. Improper Third-Party Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
L. Treatment of Sweep Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
L.1. Retail Sweeps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
L.2. Offshore Investment Sweeps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
L.3. Domestic Investment Sweeps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
M. Mergers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
N. Treatment of Suspense Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
O. Netting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Section 2 – Item-By-Item Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Transaction Accounts (Items A.1 through A.3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
General Description of Transaction Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Summary of Transaction Account Classifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Demand Deposits (Items A.1.a through A.1.c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Demand Deposits Due to Depository Institutions (Item A.1.a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
U.S. Government Demand Deposits (Item A.1.b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Other Demand Deposits (Item A.1.c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
ATS accounts, NOW Accounts/Share Drafts, and Telephone and
Preauthorized Transfers (Item A.2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Total Transaction Accounts (Item A.3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Demand Deposits (Items A.1.a through A.1.c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Deductions from Transaction Accounts (Items B.1 and B.2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Demand Balances Due from Depository Institutions in the U.S. (Item B.1) . . . . . . . . . . . . . . . . . . . . . . 23
Cash Items in Process of Collection (Item B.2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Total Savings Deposits (Item C.1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Procedures for Ensuring That the Permissible Number of Transfers from
Savings Deposits Is Not Exceeded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Total Time Deposits (Item D.1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Reporting of Deposits on a Discount Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Vault Cash (Item E.1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Memorandum Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
All Time Deposits with Balances of $100,00 or More (Included in Item D.1)(Item F.1) . . . . . . . . . 32
Schedule AA and Schedule BB - Other Reserve Obligations by Remaining Maturity . . . . . . . . . . . . . . . 32
Ineligible Acceptances and Obligations Issued by Affiliates (Items AA.1 and BB.2) . . . . . . . . . . . . . 33
Determining Maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Classifying an Affiliate’s Obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
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Schedule AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Ineligible Acceptances and Obligations Issued by Affiliates Maturing in
Less Than Seven Days (Item AA.1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Schedule BB - Nonpersonal Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Total Nonpersonal Savings and Time Deposits (Item BB.1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Ineligible Acceptances and Obligations Issued by Affiliates Maturing in
Seven Days or More (Nonpersonal Only)(Item BB.2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Schedule CC - Net Eurocurrency Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Net Eurocurrency Liabilities (Item CC.1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Who Must Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Worksheet for Preparation of Item CC.1, Net Eurocurrency Liabilities for U.S.
Branches and Agencies of Foreign (Non-U.S.) Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Step-by-Step Instructions for Calculating Item CC.1, Net Eurocurrency Liabilities . . . . . . . . . . . . . . 38
Gross Borrowings from Non-U.S. Offices of Other Depository Institutions and from
Certain Designated Non-U.S. Entities (Worksheet Item 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Gross Liabilities to Non-U.S. Parent Bank and Its Non-U.S. Offices plus
Net Liabilities to Own IBF (Worksheet Item 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Gross Claims on Non-U.S. Parent Bank and Its Non-U.S. Offices plus
Net Claims on Own IBF (Worksheet Item 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Total Assets Minus Certain Assets and Positive Net Balances Due from Own IBF and
the Parent Bank’s U.S. and Non-U.S. Offices (Worksheet Item 4) . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Assets Held by Own IBF and Certain Related Non-U.S. Institutions Acquired from
U.S. Offices (Worksheet Item 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Acknowledgement of advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
ATS (Automatic transfer service) account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Bankers’ acceptance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Bankers’ bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Banking business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Bank note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Bona fide cash management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Branches and agencies of foreign (non-U.S.) banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Brokered deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Brokers security draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Cash collateral account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Certificate of indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Club accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
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Commodity or bill of lading draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Credit balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Custodial inventory program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Dealer reserve or dealer differential account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Demand deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Deposit notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Depository institution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Due Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Edge Act and agreement corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Excess balance account (EBA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Exempt entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Exemption amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Federal public funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Federal Reserve draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Finance bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Foreign (non-U.S.) bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Foreign (non-U.S.) governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Foreign (non-U.S.) national government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Foreign (non-U.S.) official banking institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Hypothecated deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Immediately available funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
International institution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Letter of credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Loan-to-lender program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Majority-own subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
MMDA (Money market deposit account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Natural person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Net transaction accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
NINOW (Non-interest-bearing negotiable order of withdrawal) account . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Noncash item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Nonconsolidated affiliate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Non-exempt deposit cutoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Non-exempt entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Nonpersonal savings deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Nonpersonal time deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Contents-4

FR 2900 Branches and Agencies
Contents September 2015

Contents

Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Non-U.S. bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
NOW account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Original maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Payable-through drafts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Personal savings deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Personal time deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Preauthorized transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Reduced reporting limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Remote service unit (RSU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Repurchase agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Returned item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Savings deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Share draft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Small time deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Suspense accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Telephone and preauthorized transfer accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Teller’s check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Time certificate of deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Time deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Time deposit open account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Transferable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Unposted credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Unposted debits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
U.S. (United States) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
U.S. brances and agencies of foreign (non-U.S.) banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
U.S. Treasury general account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

FR 2900 Branches and Agencies
Contents September 2015

Contents-5

INSTRUCTIONS FOR PREPARATION OF

Report of Transaction Accounts, Other
Deposits, and Vault Cash
Branches and Agencies

Introduction
The Report of Transaction Accounts, Other Deposits, and
Vault Cash (FR 2900) is required from all banking Edge
Act and agreement corporations and U.S. branches and
agencies of foreign (non-U.S.) banks, regardless of the
level of their deposits, and from all other depository
institutions in the United States with net transaction
accounts greater than the exemption amount or total
transaction accounts, savings deposits, and small time
deposits greater than or equal to the reduced reporting
limit as of the periods specified by the Federal Reserve
Board.1 The FR 2900 report is used by the Federal
Reserve for the calculation of required reserves, for the
construction of the monetary aggregates, and to meet the
requirement that the exemption amount be indexed annually as specified by the Federal Reserve Act. Rules
governing reserve requirements are contained in Federal
Reserve Regulation D - Reserve Requirements of Depository Institutions of the Board of Governors of the Federal
Reserve System (12 CFR § 204) (Regulation D).
The FR 2900 instructions present detailed instructions for
the preparation of the FR 2900 reports by U.S. branches
and agencies of foreign (non-U.S.) banks. Separate
instructions are provided for credit unions, commercial
and industrial banks, banking Edge Act and agreement
1. Section 411 of the Garn St Germain Depository Institutions Act of
1982 subjects the first $2.0 million of a reporting institution’s reservable
liabilities to a reserve requirement of 0 percent. The amount of reservable
liabilities subject to the 0 percent reserve requirement (the ‘‘exemption
amount’’) is adjusted each year for the next succeeding calendar year by 80
percent of the percentage increase in total reservable liabilities of all
reporting institutions, measured on an annual basis as of June 30. No
corresponding adjustment is made in the event of a decrease in total
reservable liabilities of all reporting institutions.
The criteria used to determine the exemption amount are described in the
chapter titled ‘‘Reporting Requirements’’ of the Reserve Maintenance
Manual. Also contained in this chapter are detailed descriptions of the
various deposit reporting categories and information on the annual review
and determination of reporting frequencies for all depository institutions.
FR 2900
Branches and Agencies

September 2015

corporations, building or savings and loan associations,
mutual savings banks, cooperative banks, homestead
associations, and savings banks.
The FR 2900 instructions may be obtained upon request
from the appropriate Federal Reserve Bank and are
available on the Federal Reserve Board’s website at
www.federalreserve.gov/apps/reportforms/default.aspx.
Subsequent sections of these instructions are organized
as follows. Section 1 provides general instructions for
preparation of the FR 2900. Section 2 provides item-byitem instructions for all items on the FR 2900 report. The
glossary defines (in alphabetical order) important terms
and phrases that appear underlined throughout the instructions.
Accurate preparation of the FR 2900 report is an important first step in the reserve maintenance cycle. Based on
the deposit levels that the reporting institution reports
each reporting period, the Federal Reserve calculates the
level of required reserve balances that must be maintained at, or passed through to, a Federal Reserve Bank
under the reserve maintenance schedule stipulated by
Regulation D. Efficient reserve management begins with
accurate and timely deposit reporting. Errors in reporting
may result in higher reserve requirements, which could
reduce the reporting institution’s potential earnings, or in
insufficient reserves, which may subject the reporting
institution to the assessment of penalties.
In addition to their use in the calculation of required
reserves, data from the FR 2900 report are used to
construct the monetary aggregates. Inaccurate reporting
may result in deterioration in the quality of the monetary
aggregates estimates.
The following instructions are based on Regulation D
and in no way alter or modify the requirements of
Regulation D. Although every effort has been made to
BA-1

Branches and Agencies

incorporate all existing regulatory provisions, applicable
regulations, interpretations, and legal opinions governing
deposits subject to reserve requirements, the FR 2900
instructions should not be considered the final authority
on the deposit status of all instruments, obligations, or
transactions. Final authority rests with the Board of
Governors of the Federal Reserve System. Inquiries
concerning specific instruments, obligations, or transactions may be directed to the Federal Reserve Bank in the
appropriate District. Terms and phrases appearing with
an underline are defined and described in the glossary of
this document.

C. Where to Report
A reporting institution must file the FR 2900 with
the Federal Reserve Bank in the Federal Reserve
District in which the branch or agency is licensed.
D. How to Report
The FR 2900 shall reflect amounts outstanding as of
the ‘‘close of business’’ each day during the reporting period. The report should be prepared in accordance with the procedures described below.
D.1.

Treatment of International Banking Facility (IBF) Accounts. An IBF may be established in the United States by a U.S. depository institution, a U.S. branch or agency of a
foreign (non-U.S.) bank, or a banking Edge
Act and agreement corporation. An IBF is a
set of asset and liability accounts segregated
on the books and records of the establishing
entity. Permissible IBF assets and liabilities
are defined in Regulation D [12 CFR §
204.8(a)(2) and (3)]. IBF liabilities are exempt
from reserve requirements and thus should be
excluded from the FR 2900 report. However,
certain transactions of the establishing entity
with its own IBF may be eurocurrency liabilities of the establishing entity and, if so,
should be included in the calculation of item
CC.1, Net Eurocurrency Liabilities.

D.2.

Consolidation. Branches and agencies
located in the same state and within the same
Federal Reserve District shall submit an
aggregated report of deposits to the Federal
Reserve Bank in whose District they operate.
However, branches and agencies located in
the same state but in different Federal Reserve
Districts shall report deposits separately to
their respective Reserve Banks.

Section 1 - General Instructions
A. Who Must Report
The FR 2900 report is required from any U.S.
branch or agency of a foreign (non-U.S.) bank that
(1) has total worldwide consolidated bank assets in
excess of $1 billion, or (2) is controlled by a
non-U.S. company or by a group of non-U.S. companies that own or control non-U.S. banks that in the
aggregate have total worldwide consolidated bank
assets in excess of $1 billion.
B. Reporting Frequency
B.1.

B.2.

BA-2

All U.S. branches and agencies of foreign
(non-U.S.) banks listed above, regardless of
size, must submit the FR 2900 weekly. The
reporting week is the seven day period that
begins on Tuesday and ends on the following
Monday. A newly licensed U.S. branch or
agency of a non-U.S. bank should commence
reporting as of the date the initial accounting
entry is made to its books, but not before a
permanent charter or license is issued.
The FR 2900 report contains 12 daily items
that should be reported for each day of the
report week. In addition, three single-day
items should be reported only one day each
year, in June. For weekly FR 2900 reporters,
that single day is June 30. The three singleday items are as follows: item BB.1, Total
Nonpersonal Savings and Time Deposits;
item BB.2, Ineligible Acceptances and Obligations Issued by Affiliates Maturing in Seven
Days or More (Nonpersonal Only); and item
CC.1, Net Eurocurrency Liabilities.

In reporting deposits, U.S. branches and agencies should exclude transactions with other
U.S. branches and agencies of the same nonU.S. bank. For example, balances due to U.S.
branches and agencies, wherever located, of
the same non-U.S. bank shall not be treated
as deposits due to banks, and balances due
from U.S. branches and agencies, wherever
located, of the same non-U.S. bank shall not
Branches and Agencies

FR 2900
September 2015

Branches and Agencies

be deductible from gross transaction accounts
as balances due from other banks.

D.3.

Basis of Accounting. Liabilities that are
reported on the FR 2900 must be based on the
reporting institution’s contractual liability to
its counterparty, which includes accrued interest. Liabilities must be reported based on the
reporting institution’s contractual liability
regardless of whether it has elected to report
the fair value of its liabilities on financial
statements.

D.4.

Denomination. Amounts should be rounded
and reported to the nearest thousand U.S.
dollars.

D.5.

Foreign
(Non-U.S.)
CurrencyDenominated Transactions. Transactions
denominated in foreign (non-U.S.) currency
must be valued in U.S. dollars each reporting
week either by using the exchange rate prevailing on the Tuesday that begins the seven
day reporting week or by using the exchange
rate prevailing on each corresponding day of
the reporting week.

Deposits due to or due from non-U.S. branches
and agencies of the same foreign (non-U.S.)
parent bank should be excluded from all
items on the FR 2900 report except for item
CC.1, Net Eurocurrency Liabilities. Report
on the FR 2900 any deposit received from a
non-U.S. office of an affiliate.
Deposits of the reporting institution’s IBF
should be excluded from the FR 2900 report.
Net balances due to or due from the reporting
institution’s own IBF should be excluded on
the FR 2900 report except for item CC.1, Net
Eurocurrency Liabilities.
The deposits of offices of a banking Edge Act
and agreement corporation that is a subsidiary of a non-U.S. bank should not be aggregated with those of the U.S. branches and
agencies of that non-U.S. bank for purposes
of reporting deposits and calculating required
reserves. This treatment parallels the treatment of Edge Act and agreement corporations controlled by U.S. banks, since deposit
liabilities of Edge Act and agreement corporations owned by U.S. banks are not to be
aggregated with the deposit liabilities of their
parent bank.
The consolidation basis to be used in preparing the FR 2900 report may differ from that
called for on the quarterly report of condition2 and certain other reports.
Preparing a Consolidated FR 2900 Report
(excluding schedule CC)
Step 1: Combine comparable accounts of the
reporting institution’s individual entities on
an account-by-account basis.
Step 2: Eliminate all interoffice transactions
that reflect the existence of debtor-creditor
relationships among the entities to be consolidated.

2. In this document, the term ‘‘report of condition’’ refers to the Report
of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks
(FFIEC 002).
FR 2900
Branches and Agencies

September 2015

Regardless of which of the above two options
is elected, the exchange rates to be used for
this conversion are a consistent series of
exchange rate quotations. These procedures
will apply to all foreign (non-U.S.) currencydenominated deposits that are outstanding
during any one day of the reporting week,
including those that are received by the
reporting institution after the start of the
reporting week (Tuesday) or paid out before
the close of the reporting week (the following
Monday).
Once a reporting institution chooses to value
foreign (non-U.S.) currency transactions by
using either the weekly (Tuesday) method or
the daily (corresponding day) method, it must
use that method consistently over time for all
Federal Reserve reports. If at some future
time the reporting institution wishes to change
its valuation procedure from one of these two
methods to the other, the change must be
applied to all Federal Reserve reports and
then used consistently thereafter. Please notify
the appropriate Federal Reserve Bank of any
such change.
BA-3

Branches and Agencies

not occur on the reporting date should not be
reported on the FR 2900.

Foreign (non-U.S.) currency-denominated
deposits held at U.S. offices of a reporting
institution must be converted to U.S. dollars
under the procedures stipulated above and
included as appropriate in section A, B, C, or
D (and F where applicable) or in schedules
AA, BB, or CC of the FR 2900. In addition,
all FR 2900 reporting institutions that offer
foreign (non-U.S.) currency-denominated
deposits at their U.S. offices must file the
Report of Foreign (Non-U.S.) Currency
Deposits (FR 2915), which breaks out the
amounts of such deposits, converted to U.S.
dollars that are included in selected FR 2900
line items. For information on the FR 2915,
please contact the appropriate Federal Reserve
Bank.
D.6.

1. When deposits of a customer under a
sweep program were not transferred between
transaction and nontransaction accounts on
the general ledger for any reason, the reporting institution should not make back-valued
or post-closing adjustments to the FR 2900 to
reflect the sweep activity that did not actually
occur.
2. When deposits of a customer were not
transferred to another depository institution
because of operational problems, the FR 2900
should not include any back-valued adjustments to reflect the activity that did not occur.

Recordkeeping. The amount reported for
each day should reflect the amount outstanding at the ‘‘close of business’’ for that day.
The term ‘‘close of business’’ refers to the
time established by the reporting institution
as the cutoff time for posting transactions to
its general ledger accounts for that day. The
time designated as close of business should
be reasonable and applied consistently.

D.7.

Weekend and Holiday Posting. Institutions
that post to their general ledger on Saturdays,
Sundays, and/or holidays may report these
balances on the FR 2900 for these days. Both
debit and credit entries for each transaction
must be recorded on the official books and
recorded on the same day in order to be
reported on the FR 2900; otherwise, the
preceding day’s balances are reported.

For purposes of the FR 2900 report, the
reporting institution is open when entries are
made to the general ledger accounts of the
reporting institution for that day. The posting
of a transaction to the general ledger
account means that both debit and credit
entries must be recorded as of the same date.
For any day on which the reporting institution was closed — that is, no entries were
made to the general ledger — report the
closing balance as of the preceding day.

D.8.

Pre-Posting. Transactions that result from
prior commitments should be reported on the
date that the transaction is executed, not on
the commitment date. However, where payment information (such as that contained on
magnetic tape, paper listings, and similar
items involving automated arrangements) is
sent to the reporting institution prior to the
effective payment date, the institution may
credit its depositors’ accounts one day prior
to the effective payment date to ensure that
the deposit will be available to the depositor
at the opening of business on the payment
date. When such prior credit to deposit
accounts is given in connection with automated arrangements, the credits should be
offset by appropriate debit entries to item
B.2, Cash Items in Process of Collection.

Adjustments made to the general ledger after
the close of business to accurately reflect
transactions executed as of the close of business on the report date should be reported on
the FR 2900. For example, if the general
ledger is updated to correct a clerical error or
a misposting, it is appropriate to revise the
FR 2900. However, post-closing adjustments
to the accounting records of the reporting
institution that reflect transactions that did
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Examples:

Reservable obligations for which settlement
is in clearinghouse or uncollected funds
should be reported as of the date that the
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transaction is executed and not as of the
settlement date or date that collected funds
are to be received.
D.9.

Overdrafts or Negative Balances. Unless
covered by a bona fide cash management
arrangement,3 all deposit accounts with a
negative balance as of the close of business
each day (whether resulting from prearranged
or unplanned overdrafts or from operating or
other factors) are to be regarded as having a
zero balance for purposes of computing
deposit totals. Moreover, any overdrawn
deposit account by a customer should be
regarded as a loan made by the reporting
institution to that customer, and the amount
of the overdraft should be regarded as zero
and not be reported as a negative deposit.
(See subsection I, Treatment of Trust Funds.)
Demand deposit accounts that the reporting
institution maintains at another depository
institution and that have negative balances
should be regarded as having zero balances
when computing totals for item B.1, Demand
Balances Due from Depository Institutions in
the U.S. Specifically, when an account that
the reporting institution routinely maintains
with sufficient balances to cover checks or
drafts issued in the normal course of business
becomes overdrawn at another depository
institution, negative balances that result from
such occasional overdrafts are regarded as a
borrowing and therefore should not be
included in the FR 2900 report. However,
checks or drafts drawn against an account
that is not routinely maintained with sufficient balances, or that are drawn against a
‘‘zero balance account’’ (for example, an
account wherein funds are remitted by the
reporting institution only when it has been
advised that the checks or drafts have been
presented for payment), are considered
demand deposits and are reported in item
A.1.c, Other Demand Deposits.

3. Overdrawn accounts of a depositor who maintains more than one
transaction account with the reporting institution may be netted against
positive balances in the other transaction accounts pursuant to a bona fide
cash management arrangement.
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D.10.

Unposted Debits and Credits. Unposted
debits consist of cash items drawn on the
reporting institution that have been ‘‘paid’’
or credited by the reporting institution and
are chargeable, but that have not been
charged against deposits as of the close of
business. These items should be reported in
item B.2, Cash Items in Process of Collection, until they have been charged to either
individual or general ledger deposit accounts.
Unposted credits consist of items that have
been received for deposit and that are in
process of collection but have not been
posted to individual or general ledger deposit
accounts. These credits should be reported
as deposits. (See subsection N, Treatment of
Suspense Accounts.)

D.11.

Rejected Items. Rejected items (resulting
from mutilated documents, incorrect account
numbers, or other factors) that would otherwise have resulted in credit to deposit
accounts should be included in deposit totals
for the day on which corresponding debits
have been posted. Rejected items that represent withdrawals from deposit accounts and
for which corresponding credits have already
been recorded should be deducted from
deposits as of the close of business for that
day.

D.12.

Filing of Data. FR 2900 data may be filed
with the appropriate Federal Reserve Bank
either electronically or in hard-copy form.
Please
visit
www.frbservices.org/
centralbank/index.html or contact the appropriate Federal Reserve Bank for information
on electronic submission of the reporting
institution’s data.
Please note that if a reporting institution has
its data prepared or transmitted by a private
vendor, the reporting institution is responsible for the timeliness and accuracy of data
to the same extent as if it had prepared and
transmitted the data itself. The reporting
institution may be contacted directly by, and
be responsible for responding to, the Federal Reserve regarding questions on its FR
2900 data.
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E. Requests for Revised Data
Federal Reserve System staff review data submitted
on the FR 2900 report very carefully to ensure that
the data are accurate. As a result of that review,
Federal Reserve Bank staff may ask reporting institutions to explain movements in the data, and, if
reported data are incorrect, staff will ask the institution to submit revisions. Since these data are
extremely time sensitive, reporting institutions
should respond as quickly as possible to these
requests.
F.

Liabilities That Are Reservable under
Regulation D
Under the Monetary Control Act of 1980, transaction accounts, nonpersonal time deposits (which
also include nonpersonal savings deposits), and
eurocurrency liabilities are subject to reserve requirements.4 Rules governing reserve requirements are
contained in Regulation D. Detailed instructions
defining these reservable liabilities can be found in
the appropriate item-by-item instructions.
Deposits, as defined by Regulation D, are described
in subsection G immediately below. Please note,
however, that in addition to reservable liabilities,
certain nonreservable liabilities are also reported on
the FR 2900.

G. Deposits as Defined under Regulation D
Regulation D, section 204.2(a)(1), defines ‘‘deposits,’’ which, for the purposes of the FR 2900 report,
are divided into two broad categories of liabilities:
deposits and primary obligations that are undertaken
by the reporting institution as a means of obtaining
funds.
G.1. Deposits reported in sections A, C, D, and F
of the FR 2900 consist of
a. funds (including brokered deposits)
received or held by the reporting institution for which credit has been given or is
obligated to be given to a transaction
account (demand deposit, telephone or
preauthorized transfer, NOW account, or
4. Nonpersonal time deposits and eurocurrency liabilities are reservable
liabilities even though they currently are subject to a 0 percent reserve
requirement.

BA-6

ATS account), a savings deposit account,
or a time deposit account. Also, include
interest credited to such accounts;
b. funds received or held by departments
other than the trust department of the
reporting institution for a special or specific purpose, such as escrow funds, funds
held as security for securities lent by the
reporting institution, funds deposited as
advance payments on subscriptions to U.S.
government securities, and funds held to
meet the reporting institution’s acceptances. Refer to subsection I, Treatment of
Trust Funds, for clarification on trust
reporting;
c. cashier’s checks, certified checks, teller’s
checks, and other officer’s checks issued
for any purpose, including those issued in
payment for services, or purchases that are
drawn on the reporting institution by any
of its duly authorized officers and that are
outstanding on the report date. These
checks include
(1) those drawn by the reporting institution on itself and not payable at or
through another depository institution;
(2) those drawn by the reporting institution and drawn on, or payable at or
through, another depository institution
on a zero balance account or 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 the reporting institution only when it has been advised that
the checks or drafts have been presented).
Those checks drawn by the reporting
institution on a deposit account at
another depository institution that the
reporting institution routinely maintains with sufficient balances to cover
checks or drafts drawn in the normal
course of business should be excluded
from items A.1.a through A.1.c,
Demand Deposits, and recorded
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directly as a reduction in item B.1,
Demand Balances Due from Depository Institutions in the U.S.; and
(3) those drawn by the reporting institution on, or payable at or through, a
Federal Reserve Bank or a Federal
Home Loan Bank;
d. funds received or held in connection with
traveler’s checks and teller’s checks sold
(but not drawn) by the reporting institution, until the proceeds of the sale are
remitted to another party. Also include
other funds received or held in connection
with any other checks used (but not drawn)
by the reporting institution, until the
amount of the checks is remitted to another
party;
e. money orders issued for any purpose
(including those issued in payment for
services or purchases) that are drawn on
the reporting institution and are outstanding on the report date. Also include funds
received or held for money orders sold,
but not drawn, by the reporting institution
until the proceeds of the sale are remitted
to another party;
f. funds received or held in connection with
letters of credit issued to customers, including funds credited to cash collateral
accounts and similar accounts;
g. checks or drafts drawn by, or on behalf of,
a non-U.S. office of the reporting institution on an account maintained at any U.S.
office of the reporting institution;
h. deposits at non-U.S. offices of the reporting institution that are payable at a U.S.
office or for which the depositor is guaranteed payment at a U.S. office. A deposit of
a U.S. resident in a denomination of less
than $100,000 is a deposit, regardless of
where it is payable;
i. any obligation to pay a check or draft
drawn on the reporting institution that has
been presented for collection by a third
party when the depositor’s account at the
reporting institution has already been
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charged and settlement of the check has
not been made;
j. credit balances; and
k. any funds received by the reporting institution’s affiliate and later channeled to the
reporting institution by the affiliate in the
form of a transaction account, savings
deposit, or time deposit.
G.2. Certain primary obligations are reported in
sections A, C, D, and F of the FR 2900.
Primary obligations reported in these sections
consist of
a. any obligation that can be sold or transferred to another party without the knowledge of the reporting institution, regardless of the party to whom the obligation
was initially issued;
b. purchases of ‘‘federal funds,’’ either overnight or for a specified term, from nonexempt entities;
c. repurchase agreements entered into with
non-exempt entities on any asset other
than (1) an obligation of, or an obligation
fully guaranteed as to principal and interest by, the U.S. government or a federal
agency or (2) the shares of a money
market mutual fund whose portfolio consists wholly of obligations of, or obligations fully guaranteed as to principal and
interest by, the U.S. government or a federal agency;
d. funds raised through the issuance and sale
of mortgage securities (backed by a pool
of conventional, non-federally insured
mortgages) to non-exempt entities if the
originating reporting institution is obligated to incur more than the first 10
percent of any loss associated with that
pool of mortgages.
This treatment, however, does not apply to
normal mortgage loan participation transactions in which the buyer and seller of a
participation in a mortgage loan or pool of
mortgages share all risk of loss on a pro
rata basis. In such instances, any funds
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raised through the sale of such participations are not subject to reserve requirements;
e. liabilities of the reporting institution in the
form of mortgage-backed bonds that are
issued and sold by the reporting institution
to non-exempt entities;
f. proceeds from outstanding sales to nonexempt entities of short-term loans made
under long-term lending commitments;
g. liabilities for outstanding bank notes or
other debt instruments other than those
that are subordinated to the claims of
depositors, are not insured by a federal
agency, and have weighted-average
maturities of five years or more, and are
issued by a depository institution with the
approval or under the rules and regulations of its primary federal supervisor;
h. the borrowing of cash equivalents that
qualify as deposits for Regulation D purposes (for example, precious metals); and
i. liabilities arising from the issuance of due
bills or similar instruments that are issued
by the reporting institution to any customer (including another depository institution), regardless of the use of the proceeds, or a debit to an account of the
customer before the securities are delivered, unless collateralized within three
business days from the date of issuance by
a security similar to the security purchased
by the reporting institution’s customer. A
security is similar if it is of the same type
and if it is of comparable maturity to that
purchased by the customer. In the absence
of such collateral, due bills become reservable deposits beginning on the fourth business day after the date of issuance, without
regard to the purpose of the due bill or the
party to whom it was issued.
G.3. Primary obligations to be reported in items
AA.1 and BB.2 of the FR 2900 consist of any
liability of the reporting institution’s nonconsolidated affiliate on any promissory note
(including commercial paper), acknowledgBA-8

ment of advance, due bill, or similar obligation (written or oral), regardless of maturity,
to the extent that the proceeds are used to
supply or maintain the availability of funds
(other than capital) to the reporting institution
(1) if the affiliate’s liability would have been
regarded as reservable if issued by the reporting institution and (2) if the proceeds from
the affiliate’s liability are channeled to the
reporting institution in the form of a nonreservable transaction (for example, a sale of
the reporting institution’s assets to its affiliate).
The proceeds from the affiliate’s liability
(whether regarded as reservable or nonreservable if issued by the reporting institution)
when channeled to the reporting institution in
the form of a transaction account, savings
deposit, or time deposit should be reported by
the reporting institution as a transaction
account, savings deposit, or time deposit
respectively (see subsection G.1.a). If the
affiliate’s liability would have been regarded
as nonreservable if issued by the reporting
institution, and if the proceeds from the affiliate’s liability are channeled to the reporting
institution in the form of a nonreservable
transaction, such funds are excluded from the
FR 2900 report.
Regulations may require certain obligations
that are not classified as deposits on other
reports to be treated as deposits on the FR
2900 report. For example, certain debt obligations issued to non-exempt entities are
defined as deposits for purposes of Regulation D and the FR 2900 report but are
reported as borrowings on the quarterly report
of condition. Consequently, the deposit balances on the FR 2900 report may differ from
amounts reported in corresponding lines
reported on the reporting institution’s report
of condition and on other reports submitted
to the reporting institution’s regulator.
In general, funds received by a reporting
institution that are immediately applied to
reduce or extinguish a customer’s indebtedness to that institution do not constitute
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deposits because no liability is incurred.
However, where a reporting institution
receives funds representing loan repayments
in the course of servicing loans for others,
such funds represent deposits. Certain dealer
reserve or dealer differential accounts, such
as those that arise when financing a merchant’s installment accounts receivable and
which provide that the dealer may not have
access to the funds in the account until the
installment loans are repaid, are exempt from
reserve requirements until the reporting institution becomes obligated to the merchant for
the full amount or any portion of the funds.
Similarly, funds that have been irrevocably
assigned to the reporting institution and cannot be reached by its customer or by the
customer’s creditors are not subject to reserve
requirements. Finally, certain other liabilities
that do not result in a receipt of funds, such as
accounts payable, are not regarded as reservable liabilities.
H. Treatment of Pass-Through Balances
A reporting institution may satisfy its reserve requirements by holding vault cash, by holding a reserve
balance with its Federal Reserve Bank, or by electing to be a respondent and passing its required
reserve balance through a correspondent institution.
Correspondent institutions should exclude from the
FR 2900 report all balances received from respondent institutions that have been passed through to
the Federal Reserve Bank to satisfy reserve requirements. The correspondent institution should include
on the FR 2900 report all balances received from
respondent institutions in excess of those held to
satisfy reserve requirements, regardless of whether
such balances have been passed through to a Federal
Reserve Bank.
Respondent institutions should exclude from the FR
2900 report all balances that the correspondent
institution passes through to the Federal Reserve
Bank on behalf of the respondent to satisfy reserve
requirements. The respondent institution should
include on the FR 2900 report all balances held by a
correspondent institution in excess of the respondent
institution’s reserve requirements, regardless of
whether the correspondent institution passes these
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excess balances through to the Federal Reserve
Bank.
To the extent that balances received by a correspondent institution from a respondent institution are
held pursuant to a general pass-through agreement,
the correspondent institution should report balances
received from its respondent institutions in excess of
those held to satisfy reserve requirements in item
A.1.a, Demand deposits due to depository institutions. Accordingly, respondent institutions should
report such balances in item B.1, Demand deposits
due from depository institutions in the U.S.
I. Treatment of Trust Funds
Trust funds should be reported as deposits of the
reporting institution and should be classified as
transaction accounts, savings deposits, or time deposits, depending on the terms of the underlying agreement when
I.1. deposited by the trust department of the reporting institution in the commercial or other
department of the reporting institution;
I.2. deposited by the trust department of another
reporting institution in the commercial or other
department of the reporting institution; or
I.3. mingled with the general assets of the reporting
institution, regardless of where held.
Commingled balances of individual trusts held in a
single transaction account may not be netted. A
negative balance in an individual trust account must
be reflected as a zero balance and should not be
netted against positive balances in other trusts in
computing the amount in the commingled transaction account each day. The prohibition does not
apply, however, if (1) the applicable trust law specifically permits the netting, or if a written trust
agreement, valid under applicable trust law, permits
a trust to lend money to another trust account; or (2)
the amount that caused the overdraft is still available
in a settlement, suspense, or other trust account
within the trust department and may be used to
offset the overdraft.
Exclude from the FR 2900 report trust funds that a
reporting institution receives or holds but keeps
segregated from its general assets and that are not
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available for general investment or lending purposes. Items such as bonds, stocks, jewelry, coin
collections, and so on, that are left with the reporting
institution for safekeeping, sometimes referred to as
‘‘special deposits,’’ should not be included as deposits on the FR 2900 report.
J. Treatment of Escrow Funds
Escrow funds consist of funds deposited with a
reporting institution under an agreement that requires
the reporting institution to pay all or some portion of
the funds to a third party at a certain time or upon
fulfillment of certain conditions.
Escrow funds should be classified as transaction
accounts, savings deposits, or time deposits based
on the contractual maturity date or disbursement
schedule in the escrow agreement. When the escrow
agreement has no specific maturity date or disbursement schedule, these funds may be classified by
when the funds have been disbursed in practice.
Escrow funds will be regarded as personal savings
deposits or personal time deposits if the depositor is
a natural person and the other conditions of a
savings deposit or time deposit are met, notwithstanding that the funds are held by the reporting
institution as an escrow agent. The classification of
escrow funds as time deposits or savings deposits
does not depend on whether or not interest is paid on
the funds. Escrow agreements entered into by the
reporting institution in states where the payment of
interest on such accounts is required by law must
comply with the notice or maturity provisions applicable to time deposits or savings deposits.
K. Treatment of Payment Errors
Demand deposits that are incurred because of payment errors must be reported in the appropriate
category on the FR 2900. The holder of the funds
must report them on the FR 2900, even if the
depository institution that has the funds did not
intend to receive these funds or intended to send
these funds but could or did not. Payment errors
typically arise from the following transactions:
K.1. Duplicate Payment. A duplicate payment
occurs when the sending institution transfers
funds more than once. Part of this payment
will eventually be returned. However, the
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funds represent a demand deposit for the
receiving institution, and the amount must be
reported as a demand deposit until the funds
are disbursed. The sending institution does not
have either a due from depository institution
deduction or a cash item in the process of
collection.
K.2. Misdirected Payment. A misdirected payment occurs when the sending institution transfers funds to the wrong depository institution.
The funds will eventually be returned to the
sending institution or disbursed to the correct
institution. However, the institution that
received the funds in error must report these
funds as a demand deposit until the funds are
disbursed.
The sending institution does not have either a
due from depository institution deduction or a
cash item in the process of collection. The
institution that did not receive the expected
funds, regardless of whether or not the institution credited the customer’s account in anticipation of receiving payment, does not have
either a due from depository institution deduction or a cash item in the process of collection.
K.3. Failed Payment. A failed payment occurs
when an institution fails to make a payment
requested by a customer because of payment
system failures (for example, computer problems) or a clerical error. The funds retained
because the transfer was not executed must be
reported as a demand deposit until the funds
are disbursed.
The institution that did not receive the expected
funds, regardless of whether or not the institution credited the customer’s account in anticipation of receiving payment, does not have
either a due from depository institution deduction or a cash item in the process of collection.
K.4. Improper Third-Party Transfers. An
improper third-party transfer occurs when a
third-party transfer is sent over Fedwire during
the settlement period (for example, after 6:00
p.m. EST). If the transfer is not reversed by the
close of Fedwire, the receiving depository
institution must report these funds as a demand
deposit. The sending depository institution
does not report these funds as either a due
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from depository institution or a cash item in
the process of collection.

deposits and not transaction accounts, and
vice versa. Transfers from nontransaction
accounts to transaction accounts associated
with sweep arrangements are considered
third party transfers and must comply with
the rules specified in Regulation D section
204.2(d)(2). (See item C.1, Total Savings
Deposits.)
c. The maximum number of preauthorized or
automatic funds transfers (‘‘sweeps’’) from
a savings deposit account into a transaction
account in a retail sweep program is limited
to not more than six (6) per month.
L.2. Offshore Investment Sweeps. When a depository institution intends to establish an offshore
sweep program, the deposit contractual agreement between the reporting institution and its
customer must be executed pursuant to which
the deposit is payable as a matter of right only
at an office located outside the United States of
the reporting institution. However, if a deposit
of a U.S. resident under an offshore sweep
program is less than $100,000, it must be
reported on the reporting institution’s FR 2900
as a deposit, regardless of any provisions in the
applicable deposit agreement as to payability
only outside the United States.
L.3. Domestic Investment Sweeps. When a depository institution intends to establish an investment sweep program with its customer, a contractual agreement between the reporting
institution and the customer must be executed
that clearly states that, for the period during
which the funds are swept, the liability for the
funds is no longer a deposit liability of the
reporting institution but rather the liability of
the issuer of the alternate investment.

L. Treatment of Sweep Arrangements
Sweep arrangements allow funds to be automatically transferred between different types of deposit
accounts or between deposit accounts and other
interest-bearing instruments. The FR 2900 should
reflect amounts outstanding as of the close of business each day as reflected on the reporting institution’s general ledger for each item. Therefore, any
swept amounts should be reported based on the
account in which they reside at the close of each
day, not where the deposits originated. When deposits of a customer under a sweep program were not
transferred between transaction and nontransaction
accounts on the general ledger for any reason, the
reporting institution should not make back-valued or
post-closing adjustments to the FR 2900 to reflect
the sweep activity that did not actually occur.
L.1. Retail Sweeps. When a depository institution
establishes a retail sweep program with respect
to transaction account customers, the depository institution must ensure that its customer
account agreements provide for the existence
of two distinct accounts (a transaction account
and a savings deposit account) rather than a
single (transaction) account and that funds are
actually transferred between these two accounts
as described in the customer contract.
There are three key criteria for valid retail
sweep programs:
a. A depository institution must establish by
agreement with its transaction account customer two legally separate accounts: a transaction account (a NOW or demand deposit
account) and a nontransaction account (usually a savings deposit account, also sometimes called a ‘‘money market deposit
account’’ or ‘‘MMDA’’).
b. The swept funds must actually be moved
from the customer’s transaction account to
the customer’s savings deposit account on
the depository institution’s general ledger as
of the close of business on the day(s) on
which the depository institution intends to
report the funds in question as savings
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M.

Mergers
The surviving entity of a merger should report
consolidated FR 2900 balances as of the first calendar day that the nonsurvivor no longer exists. This
day should be based on the legal date of the merger
regardless of whether it occurs on a weekday,
weekend, or holiday.

N. Treatment of Suspense Accounts
Funds in suspense accounts are transaction accounts
and must be reported in item A.1.c, Other Demand
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Deposits. When the disposition of funds in suspense
has been determined, the funds should be reported
in the appropriate line item. However, what was
previously reported cannot be revised.
O. Netting
Netting liabilities against assets is generally not
permitted on the FR 2900. Netting is permitted only
when explicitly outlined in these instructions (for
example, reciprocal balances, bona fide cash management agreements) even if generally accepted
accounting standards permit additional netting practices (for example, FIN 39-1).

Section 2 - Item-By-Item Instructions
Transaction Accounts (Items A.1 through A.3)
Items A.1 through A.3 of the report collect data on
transaction accounts by component. Below is a general
description of transaction accounts, followed by a summary of transaction account classifications. These descriptions are followed by detailed instructions for each item
to be reported under transaction accounts.
General Description of Transaction Accounts
With exceptions noted below, report in items A.1 through
A.3, as appropriate, deposits or accounts from which the
depositor or account holder 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 third-party payments at an automated teller machine (ATM), a remote service unit
(RSU), or other electronic device, including by debit
card.
Transaction accounts include
1. demand deposits;
2. deposits or accounts on which the 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,
whether or not this right is exercised, and that are
subject to more than six checks, drafts, negotiable orders of withdrawal, or other similar
instrument per payment cycle, including the
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accounts authorized by 12 U.S.C. § 1832(a)
(NOW accounts);
3. deposits or accounts, such as accounts authorized
by 12 U.S.C. § 371a (automatic transfer service
accounts, or ATS accounts), on which the 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,
whether or not this right is exercised. Withdrawals from these accounts may be made automatically through payment to the reporting institution
itself or through transfer of credit to a demand
deposit or other account to cover checks or drafts
drawn upon the reporting institution or to maintain a specified balance in, or to make periodic
transfers to, such other accounts provided that
the account consists of funds in which the entire
beneficial interest is held by one or more individuals as prescribed by 12 U.S.C. § 371a;
4. deposits or accounts (a) in which the entire
beneficial interest is held by a party eligible to
hold a NOW account; and (b) on which the
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,
whether or not this right is exercised; and (c)
under the terms of which, or by practice of the
reporting institution, the depositor is permitted or
authorized to make more than six preauthorized,
automatic, or telephonic withdrawals or transfers
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 reporting institution
(including a transaction account); or
• making payment to a third party by means of
preauthorized transfer; or
• making payment to a third party by means of
telephonic (including data transmission) agreement, order, or instruction.
An account that permits or authorizes more
than six such withdrawals in a calendar month,
or statement cycle (or similar period) of at least
four weeks, is a transaction account whether or
not more than six such withdrawals actually are
made during such period.
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A preauthorized transfer includes any arrangement by the reporting institution to pay a third
party from the account of a depositor
• upon written or oral instruction (including an
order received through an automated clearing
house, or ACH); or
• at a predetermined time or on a fixed schedule.
The following transactions do not constitute preauthorized, automatic, or telephonic transfers or
withdrawals:
• transfers for the purpose of repaying loans and
associated expenses at the same reporting institution (as originator or servicer); or
• transfers of funds from this account to another
account of the same depositor at the same
institution or withdrawals (payments directly
to the depositor) from the account when such
transfers or withdrawals are made by mail,
messenger, ATM, or in person or when such
withdrawals are made by telephone (via check
mailed to the depositor), regardless of the
number of such transfers or withdrawals;
5. 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 reporting institution
that can be used for the purpose of making
payments or transfers to third parties or others or
to a deposit account of the depositor;
6. all deposits other than time deposit and savings
deposit accounts, including those accounts that
are time and savings deposits in form but that the
Federal Reserve Board has determined, by rule
or order, to be transaction accounts; and
7. interest paid by crediting transaction accounts.
Transaction accounts do not include
1. savings deposits (including accounts commonly
known as money market deposit accounts
(MMDAs)). Please note, however, that an account
that otherwise meets the definition of a savings
deposit but that authorizes or permits the depositor to exceed the withdrawal or transfer limitaFR 2900
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tions specified for that account is a transaction
account (see item C.1, Total Savings Deposits);
2. time deposit accounts; and
3. primary obligations maturing in less than seven
days if they take the form of ineligible acceptances or of obligations issued by the reporting
institution’s affiliates described in section 1, subsection G.3. These primary obligations should be
reported in item AA.1.
Summary of Transaction Account Classifications
A. Always regarded as transaction accounts:
1. demand deposits;
2. NOW accounts;
3. accounts (other than savings deposits) from which
payments may be made to third parties by means of
an ATM, an RSU, or other electronic device,
including by debit card;
4. accounts (other than savings deposits) that permit
third-party payments through use of checks, drafts,
negotiable instruments, or other similar instruments;
5. accounts that are time or savings deposits in form
but that the Federal Reserve Board has determined,
by rule or order, to be transaction accounts; and
6. ATS accounts.
B. Deposits or accounts that are regarded as transaction
accounts if the following specified conditions exist:
1. accounts that otherwise meet the definition of
savings deposits but that authorize or permit the
depositor to exceed the transfer and withdrawal
rules for a savings deposit;
2. any deposit or account that otherwise meets the
definition of a time deposit but that allows withdrawals within the first six days after the date of
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, unless the deposit or account meets the
definition of a savings deposit. Any such deposit or
account that meets the definition of a savings
deposit shall be reported as a savings deposit.
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Otherwise, the deposit or account shall be reported
as a demand deposit in item A.1.a or item A.1.c;
and
3. the remaining balance of a time deposit from
which a partial early withdrawal has been made,
unless the remaining balance either (a) is subject to
additional early withdrawal penalties of at least
seven days’ simple interest on amounts withdrawn
within six days after each partial withdrawal (in
which case the deposit or account continues to be
reported as a time deposit) or (b) is placed in an
account that meets the definition of a savings
deposit (in which case the deposit or account shall
be reported as a savings deposit). Otherwise, the
deposit or account shall be reported as a demand
deposit in item A.1.a or item A.1.c.
C. Not regarded as transaction accounts (unless specified
above):
1. savings deposits (including MMDAs);
2. accounts that permit telephone or preauthorized
transfers or transfers by ATMs or RSUs to repay
loans made or serviced by the reporting institution;
3. accounts that permit telephone or preauthorized
withdrawals where the proceeds are to be mailed to
or picked up by the depositor;
4. accounts that permit transfers to other accounts of
the depositor at the same reporting institution
through ATMs or RSUs; and
5. time deposits.
Demand Deposits (Items A.1.a through A.1.c)
For items A.1.a through A.1.c of the FR 2900 report,
demand deposits include deposits described in section 1,
subsection G.1, and primary obligations described in
section 1, subsection G.2, that are payable immediately
on demand, or that are issued with an original maturity or
required notice period of less than seven days, or that
represent funds for which the reporting institution does
not reserve the right to require at least seven days’
written notice of an intended withdrawal.
Include in items A.1.a through A.1.c
1. all checking accounts, including those pledged as
collateral for loans or maintained as compensating
balances. However, do not include NOW accounts,
which are reported in item A.2;
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2. cashier’s checks, certified checks, teller’s checks,
and other officer’s checks issued for any purpose,
including those issued in payment for services, or
purchases that are drawn on by any of the reporting
institution’s duly authorized officers and that are
outstanding on the report date. These checks
include
A. those drawn by the reporting institution on itself
and not payable at or through another depository institution;
B. those drawn by the reporting institution and
drawn on, or payable at or through, another
depository institution on a zero balance account
or 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 the reporting institution only when it has been advised
that the checks or drafts have been presented).
Those checks drawn by the reporting institution
on a deposit account at another depository institution that the reporting institution routinely
maintains with sufficient balances to cover checks
or drafts drawn in the normal course of business
should be excluded from items A.1.a through
A.1.c, Demand Deposits, and recorded directly
as a reduction in item B.1, Demand Balances
Due from Depository Institutions in the U.S.;
C. those checks drawn by the reporting institution
on, or payable at or through, a Federal Reserve
Bank or a Federal Home Loan Bank;
3. funds received or held in connection with traveler’s checks and teller’s checks sold (but not drawn)
by the reporting institution, until the proceeds of
the sale are remitted to another party. Also includes
other funds received or held in connection with any
other checks used (but not drawn) by the reporting
institution, until the amount of the checks is remitted to another party;
4. money orders issued for any purpose (including
those issued in payment for services, or purchases)
that are drawn on the reporting institution and are
outstanding on the report date should be reported
as deposits. In addition, funds received or held for
money orders sold, but not drawn on the reporting
institution, should be included as deposits until the
proceeds of the sale are remitted to another party;
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5. funds received or held in connection with letters of
credit sold to customers, including funds credited
to cash collateral accounts and similar accounts;
6. unposted credits and suspense accounts;

or account that meets the definition of a savings
deposit shall be reported as a savings deposit.
Otherwise, the deposit or account shall be reported
as a demand deposit in item A.1.a or item A.1.c;

8. funds received or held in escrow accounts that may
be withdrawn on demand or within six days from
the date of deposit, except escrow funds that meet
the definition of savings deposits or time deposits
(see section 1, subsection J, Treatment of Escrow
Funds);

14. the remaining balance of a time deposit from
which a partial early withdrawal has been made,
unless the remaining balance either (a) is subject
to additional early withdrawal penalties of at least
seven days’ simple interest on amounts withdrawn
within six days after each partial withdrawal (in
which case the deposit or account continues to be
reported as a time deposit) or (b) is placed in an
account that meets the definition of a savings
deposit (in which case the deposit or account shall
be reported as a savings deposit). Otherwise, the
deposit or account shall be reported as a demand
deposit in item A.1.a or item A.1.c;

9. an obligation to pay on demand or within six days
a check (or other instrument, device, or arrangement for the transfer of funds) drawn on the
reporting institution, when the depositor’s account
already has been debited;

15. all matured time certificates of deposit, even if
interest is paid after maturity, except matured time
certificates of deposit during the grace period after
maturity, if such a grace period exists. (See 12
CFR § 329.104.)

10. checks or drafts drawn by, or on behalf of, a
non-U.S. office of the reporting institution on an
account maintained at any of the reporting institution’s U.S. offices;

Excludes matured time certificates of deposits and
proceeds from time deposits or time deposit open
accounts, wherein the deposit agreement specifically provides for the funds to be transferred to an
account type other than a demand deposit in item
A.1.a or item A.1.c;

7. withheld taxes, withheld insurance premiums, and
other funds are withheld from salaries of the
reporting institution’s employees. Also include
taxes withheld from distributions or payments from
pensions, annuities, and other deferred income,
including individual retirement accounts (IRAs);

11. demand deposit accounts at non-U.S. offices of the
reporting institution that are guaranteed payable in
the United States or when the depositor is guaranteed payment at a U.S. office;
12. for any depositor that is not eligible to hold a
NOW account, accounts that otherwise meet the
definition of savings deposits but under the terms
of which, or by practice of the reporting institution, the depositor is authorized or permitted to
exceed the withdrawal or transfer limitations
specified for savings deposits (see item C.1, Total
Savings Deposits);
13. any deposit or account that otherwise meets the
definition of a time deposit but that allows withdrawals within the first six days after the date of
deposit and that does not require an early withdrawal penalty of at least seven days’ simple
interest on amounts withdrawn within the first six
days, unless the deposit or account meets the
definition of a savings deposit. Any such deposit
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16. the institution’s liability on primary obligations
described in section 1, subsections G.2.a, c, d, e,
and f, that are issued by the reporting institution to
non-exempt entities in original maturities of less
than seven days;
17. due bills described in section 1, subsection G.2.i,
that are issued by the reporting institution in
original maturities of less than seven days and that
are not collateralized within three business days
by similar securities;
18. credit balances;
19. any funds received by the reporting institution’s
affiliate and later channeled to the reporting institution by the affiliate in the form of a demand
deposit in item A.1.a or item A.1.c; and
20. funds received as a result of payment errors. (See
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Branches and Agencies

section 1, subsection K, Treatment of Payment
Errors.)

branches and agencies of foreign (non-U.S.)
official banking institutions);

Exclude from demand deposits in either item A.1.a or
item A.1.c the following categories of liabilities even if
they have an original maturity of less than seven days:

C. banking Edge Act and agreement corporations;

1. savings deposits (including MMDAs);
2. hypothecated deposits. Please note that for purposes of the FR 2900 report, hypothecated deposits
do not include deposits simply serving as collateral
for loans;
3. funds received and credited to dealer reserve or
dealer differential accounts that the reporting institution is not obligated to make available to either
the dealer or the dealer’s creditors;

D. mutual and stock savings banks;
E. building or savings and loan associations, and
homestead associations;
F. cooperative banks;
G. industrial banks;
H. credit unions (including corporate central credit
unions);

4. checks or drafts drawn by the reporting institution
on a deposit account at another depository institution that the reporting institution routinely maintains with sufficient balances to cover checks or
drafts drawn in the normal course of business (see
item B.1, Demand Balances Due from Depository
Institutions in the U.S.);

I. the U.S. government and its agencies and instrumentalities, such as the Federal Home Loan
Banks, Federal Intermediate Credit Banks, Federal Land Banks, Banks for Cooperatives, the
Federal Home Loan Mortgage Corporation,
Federal Deposit Insurance Corporation, Federal
National Mortgage Association, Federal Financing Bank, National Credit Union Share Insurance Fund, and National Credit Union Administration (NCUA) Central Liquidity Facility;

5. repurchase agreements involving

J. Export-Import Bank of the United States;

A. obligations of, or obligations fully guaranteed
as to principal and interest by, the U.S. government or a federal agency; or
B. the shares of a money market mutual fund
whose portfolio consists wholly of obligations
of, or obligations fully guaranteed as to principal and interest by, the U.S. government or a
federal agency;
6. due bills, issued to any entity, that are collateralized within three business days by securities similar to the securities purchased (see section 1,
subsection G.2.i, Primary Obligations);
7. any primary obligation issued or undertaken as a
means of obtaining funds (except for due bills that
are not collateralized within three business days by
a similar security), regardless of the use of the
proceeds, when transacted with the U.S. office of
the following exempt entities:
A. U.S. commercial banks and trust companies
and their majority-owned subsidiaries;
B. U.S. branches or agencies of a bank organized
under foreign (non-U.S.) law (including U.S.
BA-16

K. Government Development Bank of Puerto Rico;
L. Minbanc Capital Corporation;
M. securities dealers, but only when the borrowing (1) has a maturity of one day, (2) is in
immediately available funds, and (3) is in
connection with the clearance of securities;
N. the U.S. Treasury;
O. New York State investment companies (chartered under Article XII of the New York State
Banking Code) that perform a banking business and that are majority owned by one or
more non-U.S. banks; and
P. an investment company or trust whose entire
beneficial interest is held exclusively by one or
more depository institutions;
8. funds obtained from state and municipal housing
authorities under loan-to-lender programs involving the issuance of tax-exempt bonds and the
subsequent lending of the proceeds to the reporting
institution for housing finance purposes;
9. borrowings from a Federal Reserve Bank;
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10. amounts of outstanding bankers’ acceptances that
are created by the reporting institution and that are
of the type that are ineligible for discount at
Federal Reserve Banks (see section 1, subsection
G.3, Primary Obligations). These transactions are
reported in schedule AA or BB;
11. certain obligations issued by the reporting institution’s nondepository affiliates (see section 1, subsection G.3, Primary Obligations). These transactions are reported in schedule AA or BB;

A. other U.S. banks and banking Edge Act and
agreement corporations (that is, other than the
reporting institution’s own non-U.S. offices);
and
B. commercial banks, merchant banks, discount
houses, and similar banking institutions (including banking affiliates of the reporting institution or its parent) organized under the laws of a
foreign country, Puerto Rico, Guam, American
Samoa, or the Virgin Islands, or other territories of the United States;

12. any liability of a U.S. branch or agency to another
U.S. branch or agency of the same non-U.S. bank;
and

3. mutual or stock savings banks (including those that
are bankers’ banks);

13. overdrafts. (See section 1, subsection D.9, Overdrafts or Negative Balances.)

4. building or savings and loan associations, homestead associations, and cooperative banks (including those that are bankers’ banks); and

Demand Deposits Due to Depository Institutions
(Item A.1.a)
Include in item A.1.a the balance of all demand deposits
in the form of deposits that are due to
1. U.S. offices of the following institutions
A. U.S. commercial banks (including affiliates of
the reporting institution that engage in a commercial banking business and private banks)
and trust companies conducting a commercial
banking business;
B. industrial banks;
C. bankers’ banks that are organized as commercial banks;
D. branches and agencies of foreign (non-U.S.)
banks (including branches and agencies of foreign (non-U.S.) official banking institutions);
E. banking Edge Act and agreement corporations;
and
F. New York State investment companies (chartered under Article XII of the New York State
Banking Code) that perform a banking business
and that are majority owned by one or more
non-U.S. banks;
2. non-U.S. offices of
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5. credit unions (including corporate central credit
unions).
Also include in this item balances subject to immediate
withdrawal that are due to a respondent institution and
that have not been passed through to the Federal Reserve
by the reporting institution to satisfy a reserve requirement.
Also include in item A.1.a any deposit or account that
otherwise meets the definition of a time deposit but that
allows withdrawals within the first six days after the date
of 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, unless the deposit
or account meets the definition of a savings deposit. Any
such deposit or account that meets the definition of a
savings deposit shall be reported as a savings deposit.
Otherwise, the deposit or account shall be reported in this
item or in item A.1.c.
Also include the remaining balance of a time deposit
from which a partial early withdrawal has been made,
unless the remaining balance either (a) is subject to
additional early withdrawal penalties of at least seven
days’ simple interest on amounts withdrawn within six
days after each partial withdrawal (in which case the
deposit or account continues to be reported as a time
deposit) or (b) is placed in an account that meets the
definition of a savings deposit (in which case the deposit
or account shall be reported as a savings deposit).
Otherwise, the deposit or account shall be reported in this
item or in item A.1.c. Include in this item those accounts
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Branches and Agencies

issued by the reporting institution to the depository
institutions listed in 1 through 5 above that otherwise
meet the definition of savings deposits but under the
terms of which, or by practice of the reporting institution,
the depositor is authorized or permitted to exceed the
withdrawal or transfer limitations specified for that
account. (See item C.1, Total Savings Deposits.)

due bills, all other primary obligations should be excluded
from item A.1.a.

Also include in this item all due bills that are issued by
the reporting institution to U.S. offices of those institutions listed in 1, 3, 4, and 5 above in original maturities of
less than seven days and that are not collateralized within
three business days by similar securities. Except for such

All demand balances in the form of due bills issued to the
U.S. offices of the institutions listed in 1, 3, 4, and 5
above and all other demand balances due to the institutions listed in 1.F, 2, 3, 4, and 5 above shall be reported
on a gross basis.

Reciprocal Balances: All demand balances, except for
due bills, due to an institution that is listed in 1.A through
1.E above may be reported net of balances due from
those institutions (see calculations of net reciprocal balances below).

Calculation of net reciprocal balances (an example):
A.

B.

‘‘Due to’’ Banks

‘‘Due from’’ Banks

Bank A

$200,000

$1,000,000

Bank B

$500,000

$300,000

Bank C

$1,700,000

$2,500,000

Net ‘‘Due to’’ Banks

Net ‘‘Due from’’ Banks

Bank A

0

$800,000

Bank B

$200,000

0

Bank C

0

$800,000

C. Sum of Net Reciprocal Balances
‘‘Due to’’ Banks
$200,000

$1,600,000

(Report in item A.1.a)

(Report in item B.1)

Exclude from item A.1.a
1. demand deposits due to
A. respondent institutions to the extent that such
deposits represent balances that the reporting
institution, serving as pass-through agent or
correspondent, has passed through to the Federal Reserve Bank to satisfy reserve requirements;
B. institutions to the extent that such deposits are
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‘‘Due from’’ Banks

placed by the reporting institution as agent into
an excess balance account at the Federal
Reserve Bank;
C. nondepository and limited purpose trust companies (report in item A.1.c, Other Demand
Deposits);
D. trust departments of the reporting institution
and of other depository institutions (report in
item A.1.c, Other Demand Deposits);
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E. nondepository affiliates of the reporting institution and of other depository institutions (report
in item A.l.c, Other Demand Deposits);
F. the U.S. government (report in item A.1.b, U.S.
Government Demand Deposits) and its agencies and instrumentalities (report in item A.1.c,
Other Demand Deposits), including the Federal
Home Loan Banks, Federal Intermediate Credit
Banks, Federal Land Banks, Banks for Cooperatives, the Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance Corporation, Federal National Mortgage Association,
Federal Financing Bank, National Credit Union
Share Insurance Fund, NCUA Central Liquidity Facility, and Export-Import Bank of the
United States;
G. any non-U.S. office of the reporting institution
located outside the 50 states of the United
States and the District of Columbia or on a
U.S. military facility, wherever located; and
H. foreign (non-U.S.) official banking institutions
(report in item A.1.c, Other Demand Deposits);
2. a demand deposit due to a depository institution
that is negative (that is, overdrawn). The amount
of such negative balance should be regarded as
zero when computing the deposit total (see section
1, subsection D.9, Overdrafts or Negative Balances);
3. any negative ‘‘due from’’ balance that results
when an account at another depository institution
that the reporting institution routinely maintains
with sufficient balances to cover checks or drafts
drawn in the normal course of business becomes
overdrawn; negative balances that result from
such occasional overdrafts are regarded as borrowings by the reporting institution and should not be
included on the FR 2900 report;
4. cashier’s checks, certified checks, teller’s checks,
and other officer’s checks or any other instrument
drawn by the reporting institution (report in item
A.1.c, Other Demand Deposits);
5. all primary obligations (including due bills) issued
to non-U.S. offices of U.S. depository institutions
and of non-U.S. banks (include in calculation of
item CC.1, Net Eurocurrency Liabilities); and
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6. except for those due bills noted earlier for inclusion, all other primary obligations that are issued
to U.S. offices of depository institutions are
excluded from item A.l.a and from the FR 2900
report. Such obligations include, but are not limited to, federal funds transactions and repurchase
agreements with U.S. offices of depository institutions.
U.S. Government Demand Deposits (Item A.1.b)
Include in item A.1.b the balance of all demand deposit
accounts in the form of deposits that are designated as
federal public funds, such as
1. U.S. Treasury general accounts and special collection accounts;
2. postmaster’s demand deposit accounts;
3. demand deposit accounts of the following:
A. the Tennessee Valley Authority and other
government-owned corporations; and
B. disbursing officers of the Department of
Defense and Department of the Treasury;
4. demand deposit accounts of other public funds
that are subject to control or regulation by the U.S.
government, including U.S. Customs and Border
Protection, accounts of military organizations
(such as post exchanges and military clubs), and
similar entities.
Please note that for item A.1.b, demand deposits include
only deposits held for the credit of the U.S. government
and exclude all primary obligations to the U.S. government. Such primary obligations are exempt from reserve
requirements.
Exclude from item A.1.b
1. demand deposits due to U.S. government agencies
and instrumentalities (report in item A.1.c, Other
Demand Deposits), including the Federal Home
Loan Banks, Federal Intermediate Credit Banks,
Federal Land Banks, Banks for Cooperatives, the
Federal Home Loan Mortgage Corporation, Federal Deposit Insurance Corporation, Federal
National Mortgage Association, Federal Financing Bank, National Credit Union Share Insurance
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Fund, NCUA Central Liquidity Facility, and
Export-Import Bank of the United States;
2. demand deposits held for state or local governments or their political subdivisions (report in
item A.1.c); and
3. primary obligations.
Other Demand Deposits (Item A.1.c)
Include in item A.1.c the balance of all other demand
deposits in the form of deposits and primary obligations,
such as
1. demand deposits in the form of deposits held for
A. individuals, partnerships, and corporations,
wherever located;
B. states and local governments and their political
subdivisions;
C. U.S. government agencies and instrumentalities, including the Federal Home Loan Banks,
Federal Intermediate Credit Banks, Federal
Land Banks, Banks for Cooperatives, the Federal Home Loan Mortgage Corporation, Federal Deposit Insurance Corporation, Federal
National Mortgage Association, Federal
Financing Bank, National Credit Union Share
Insurance Fund, NCUA Central Liquidity Facility, and Export-Import Bank of the United
States;
D. nondepository and limited purpose trust companies;
E. trust departments of the reporting institution
and of other institutions (see section 1, subsection I, Treatment of Trust Funds);
F. nondepository affiliates of the reporting institution and of other depository institutions;
G. foreign (non-U.S.) governments (including foreign (non-U.S.) official banking institutions),
both national and regional, and international
institutions;
H. holding companies; and
I. representative offices of non-U.S. banks (including representative offices of the reporting institution’s parent);
BA-20

2. withheld state and local government taxes, insurance premiums, and similar items (but not withheld federal income tax payments, which are
reported in item A.1.b, Demand Deposits of the
U.S. Government);
3. cashier’s checks, certified checks, teller’s checks,
and other officer’s checks issued for any purpose,
including those issued in payment for services, or
purchases that are drawn by any of the reporting
institution’s duly authorized officers and that are
outstanding on the report date. These checks
include
A. those drawn by the reporting institution on
itself and not payable at or through another
depository institution;
B. those drawn by the reporting institution and
drawn on, or payable at or through, another
depository institution on a zero-balance account
or 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 the
reporting institution only when it has been
advised that the checks or drafts have been
presented).
Those checks drawn by the reporting institution on a deposit account at another depository
institution that the reporting institution routinely maintains with sufficient balances to
cover checks or drafts drawn in the normal
course of business should be excluded from
item A.1.a and item A.1.c, Demand Deposits,
and recorded directly as a reduction in item
B.1, Demand Balances Due from Depository
Institutions in the U.S.;
C. those checks drawn by the reporting institution
on, or payable at or through, a Federal Reserve
Bank or a Federal Home Loan Bank;
4. funds received or held in connection with traveler’s checks and teller’s checks sold (but not
drawn) by the reporting institution, until the proceeds of the sale are remitted to another party.
Also included are other funds received or held in
connection with any other checks used (but not
drawn) by the reporting institution, until the
amount of the checks is remitted to another party;
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5. money orders issued for any purpose (including
those issued in payment for services, or purchases)
that are drawn on the reporting institution and are
outstanding on the report date should be reported
as deposits. In addition, funds received or held for
money orders sold, but not drawn, by the reporting
institution should be included as deposits until the
proceeds of the sale are remitted to another party;
6. unposted credits and suspense accounts;
7. funds received in connection with letters of credit
issued to customers, including funds credited to
cash collateral accounts or similar accounts;
8. funds deposited to the credit of the reporting
institution’s own trust department, where the funds
involved are utilized to cover checks or drafts;
9. funds received or held in escrow accounts that
may be withdrawn on demand or within six days
from the date of deposit, except escrow funds held
as savings deposits or time deposits (see section 1,
subsection J, Treatment of Escrow Funds);
10. non-interest-bearing deposits subject to negotiable orders of withdrawal (NINOWs);
11. deposits subject to payment orders of withdrawal
(POWs);
12. for any depositor listed in 1.A through 1.I above
that is not eligible to hold a NOW account,
accounts that otherwise meet the definition of
savings deposits but under the terms of which, or
by practice of the reporting institution, the depositor is authorized or permitted to exceed the
withdrawal or transfer limitations specified for
that account. (see item C.1, Total Savings Deposits);
13. any deposit or account that otherwise meets the
definition of a time deposit but that allows withdrawals within the first six days after the date of
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, unless the deposit or account meets the
definition of a savings deposit. Any such deposit
or account that meets the definition of a savings
deposit shall be reported as a savings deposit.
Otherwise, the deposit or account shall be reported
in this item or in item A.1.a;
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14. the remaining balance of a time deposit from
which a partial early withdrawal has been made,
unless the remaining balance either (a) is subject
to additional early withdrawal penalties of at least
seven days’ simple interest on amounts withdrawn within six days after each partial withdrawal (in which case the deposit or account
continues to be reported as a time deposit) or (b)
is placed in an account that meets the definition of
a savings deposit (in which case the deposit or
account shall be reported as a savings deposit).
Otherwise, the deposit or account shall be reported
in this item or in item A.1.a;
15. all matured time certificates of deposit, even if
interest is paid after maturity, except matured
time certificates of deposit during the grace period
after maturity, if such a grace period exists. (See
12 CFR § 329.104.)
Excludes matured time certificates of deposit and
proceeds from time deposits or time deposit open
accounts, wherein the deposit agreement specifically provides for the funds to be transferred to an
account type other than a demand deposit;
16. due bills that remain uncollateralized by similar
securities for more than three business days and
that are issued by the reporting institution in
maturities of less than seven days to the entities
listed in 1.A through 1.I above; and
17. primary obligations (other than due bills as discussed immediately above) issued to non- exempt
entities, except
A. amounts of outstanding bankers’ acceptances
that are created by the reporting institution and
that are of the type that are ineligible for
discount at Federal Reserve Banks (see section
1, subsection G.3, Primary Obligations). These
transactions are reported in item AA.1 or
BB.2;
B. certain obligations issued by the reporting
institution’s nondepository affiliates (see section 1, subsection G.3, Primary Obligations).
These transactions are reported in item AA.1
or BB.2.
Please note that all primary obligations issued to foreign
(non-U.S.) national governments, foreign (non-U.S.) official banking institutions, international institutions, and
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non-U.S. branches of U.S. depository institutions and
non-U.S. branches and agencies and head offices of
non-U.S. depository institutions are excluded from this
item and should be included in the calculation of item
CC.1, Net Eurocurrency Liabilities.

institution itself or through transfer of credit to a
demand deposit or other account 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;

Primary obligations having a maturity of less than seven
days issued to a non-U.S. parent bank’s holding company
if the holding company is not a depository institution, a
nonbanking subsidiary of such a holding company, a
nonbanking subsidiary of a non-U.S. parent depository
institution’s holding company if the holding company is
a depository institution, and a non-U.S. parent bank’s
nonbanking subsidiary must be included in this item and
excluded from the calculation of item CC.1, Net Eurocurrency Liabilities.

2. NOW accounts, which represent interest-bearing
deposits (1) on which the 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 (2) that can be
withdrawn or transferred to third parties by issuance of a negotiable or transferable instrument.
NOW accounts are authorized by federal law and
are limited to accounts in which the entire beneficial interest is held by

ATS Accounts, NOW Accounts/Share Drafts, and
Telephone and Preauthorized Transfers (Item A.2)
Report in item A.2 the sum of the balance of all ATS
accounts, NOW accounts, and telephone and preauthorized transfer accounts. These types of accounts continue
to have different characteristics and regulatory distinctions. The definition of each type of account continues to
be provided separately below. Each type of account is
referenced separately as appropriate elsewhere in the
instructions.
Please also note that an account that otherwise meets the
definition of a savings deposit but that authorizes or
permits the depositor to exceed the withdrawal or transfer
limitations specified for savings deposits is a transaction
account. If the depositor is ineligible to hold a NOW
account, the account is considered a demand deposit and
shall be reported in item A.1.c, Other Demand Deposits.
If the depositor is eligible to hold a NOW account, the
account is considered either a NOW account, a telephone
or preauthorized transfer account, or an ATS account; all
such accounts shall be reported in item A.2.
Include in item A.2
1. ATS accounts, which are deposits or accounts of
individuals or sole proprietorships on which the
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 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 reporting
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A. individuals or sole proprietorships;
B. governmental units, including the federal government and its agencies and instrumentalities;
state governments; county and municipal governments and their political subdivisions; the
District of Columbia; and the Commonwealth
of Puerto Rico, American Somoa, Guam, and
any territory or possession of the United States
and their political subdivisions; or
C. nonprofit organizations (under Federal Reserve
Board rules) operated primarily for the following purposes:
1. religious;
2. philanthropic;
3. charitable;
4. educational;
5. political; or
6. other similar purposes.
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 (26 U.S.C. (I.R.C. 1954) § 501(c)(3) through
(13), (19) and § 527 through § 528), such as church
organizations; professional associations; trade associations; labor unions; fraternities, sororities, and
other similar social organizations; and nonprofit recreational clubs.
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Please note, however, that the following types of
organizations as described in the cited provisions of
the Internal Revenue Code are among those not
eligible to maintain NOW accounts:
1. credit unions and other mutual depository
institutions (§ 501(c)(14));

C. in which the balances of deposits or accounts
that otherwise meet the definition of time
deposits allow payments to be made to third
parties by means of debit card (including point
of sale (POS) debits), an ATM, RSU, or other
electronic device, regardless of the number of
payments made.

2. mutual insurance companies (§ 501(c)(15));
3. crop financing organizations (§ 501(c)(16));

Total Transaction Accounts (Item A.3)

4. organizations created to function as part of a
qualified group legal services plan (§
501(c)(20)); and

Report in this item the sum of items A.1.a, A.1.b, A.1.c,
and A.2.

5. farmers’ cooperatives (§ 521).
Also include as NOW accounts the balances of
certain other nonprofit organizations that may not fall
within the current definition of a nonprofit organization but that had established NOW accounts with the
reporting institution.
Please note that 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. However, any
reporting institution may place its own restrictions or
requirements on NOW accounts as long as the
accounts meet the minimum criteria set forth above
and in Regulation D;

Deductions from Transaction Accounts (Items B.1
and B.2)
Demand Balances Due from Depository Institutions
in the U.S. (Item B.1)
Report in this item all balances that are due from U.S.
offices of banks or other depository institutions and that
are subject to immediate withdrawal by the reporting
institution. Exclude balances that are subject to deferred
availability or funds that have been swept into other
investments (for example, sweep accounts and other cash
management arrangements). Balances to be reported
must be the amount reflected on the reporting institution’s books rather than the amount on the books of the
other depository institution(s).

3. telephone and preauthorized transfer accounts,
which are deposits or accounts, other than savings
deposits,

Include in item B.1 all deposit balances of the reporting
institution subject to immediate withdrawal (excluding
primary obligations) and due from U.S. offices of the
following institutions:

A. in which the entire beneficial interest is held
by a party eligible to hold a NOW account;

1. U.S. commercial banks and trust companies conducting a commercial banking business;

B. on which the 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 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
of making payment to a third party by means
of a preauthorized transfer or a telephonic
(including data transmission) agreement, order,
or instruction; and
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2. depository institutions that are defined in 12 CFR
§ 204.121 as bankers’ banks;
3. banking Edge Act and agreement corporations.
For banking Edge Act and agreement corporations, report all demand balances due from depository institutions in the United States (including
affiliated U.S. depository institutions) and all
demand balances due from the domestic parent
bank (unless the reporting institution’s parent is a
banking Edge Act and agreement corporation).
Exclude from item B.1 all demand balances due
from the reporting institution’s non-U.S. parent
bank or offices of the same Edge Act and agreement corporation;
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4. industrial banks;
5. U.S. branches and agencies of foreign (non-U.S.)
banks (including U.S. branches and agencies of
foreign (non-U.S.) official banking institutions);
6. mutual and stock savings banks;
7. building or savings and loan associations, homestead associations, and cooperative banks; and
8. credit unions (including corporate central credit
unions).
In general, all deposit accounts having a negative balance
as of the close of business each day should be regarded as
having a zero balance. (See section 1, subsection D.9,
Overdrafts or Negative Balances.)
Also include in this item balances subject to immediate
withdrawal that are due from a correspondent institution
and that have not been passed through to the Federal
Reserve by the correspondent institution to satisfy reserve
requirements.
Reciprocal Balances: Reciprocal demand balances with
the institutions listed in 1 through 5 above may be
reported either on a net-by-institution basis or on a gross
basis. Those institutions reporting reciprocal demand
balances on a net basis should see the sample calculation
provided earlier in the instructions for report item A.1.a,
Demand Deposits Due to Depository Institutions. All
demand balances with the institutions listed in 6 through
8 above should be reported gross of balances ‘‘due to’’
those institutions.
Exclude from item B.1
1. all balances due from Federal Reserve Banks,
including

2. demand deposit balances that are due from the
NCUA Central Liquidity Facility or a Federal
Home Loan Bank;
3. demand deposit balances due from other depository institutions that are pledged or encumbered
and are not available for immediate withdrawal;
4. time and savings deposit balances held at other
depository institutions;
5. cash items in process of collection (report in item
B.2);
6. federal funds sold to other depository institutions;
7. any deposit account due to a correspondent institution or other depository institution that is overdrawn, or amounts that, if charged against a
correspondent’s account by the respondent institution, would result in an overdraft in that account.
These are loans and are excluded from the FR
2900 report;
8. any deposit account due from a correspondent
institution or other depository institution that is
negative (that is, overdrawn). The amount of such
negative balances should be regarded as zero
when computing the deposit total;
9. balances that are due from
A. any non-U.S. office of any U.S. depository
institution;
B. any non-U.S. office of any non-U.S. bank;
C. trust companies that do not conduct a commercial banking business;

A. balances held directly with the Federal Reserve
Bank, including those in an excess balance
account;

D. New York State investment companies (chartered under Article XII of the New York State
Banking Code); and

B. reserve balances that were passed through to
the Federal Reserve Bank by a correspondent
institution to satisfy reserve requirements;

E. private banks;

C. reserve balances of another institution for
which the reporting institution is serving under
a pass-through agreement (acting as a correspondent institution) and that were passed
through to the Federal Reserve Bank; and
BA-24

D. balances of another depository institution held
in an excess balance account for which the
reporting institution is acting as agent;

10. demand deposit balances due from a smaller
depository institution in circumstances in which
the reporting (and larger) depository institution
has moved funds to the smaller depository institution to take advantage of the lower reserve
requirements imposed on smaller depository institutions (that is, to make use of the low reserve
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tranche) and has received the funds back in a
reserve-free transaction;
11. demand deposit balances due from U.S. branches
and agencies of the reporting institution’s nonU.S. parent bank;
12. payment errors (see section 1, subsection K,
Treatment of Payment Errors); and
13. a demand deposit account on which a corporate
central credit union requires written notice before
an intended withdrawal is made, regardless of
whether or not the corporate central credit union
actually exercises this right and regardless of how
the reporting institution uses the account.

4. other items in process of collection that are payable immediately upon presentation in the United
States and that are customarily cleared or collected by depository institutions as cash items,
such as
A. matured bonds and coupons (including bonds
and coupons that have been called and are
payable on presentation). U.S. savings bonds
that are cashed by the customer before maturity are included as cash items in the process of
collection;
B. postal and other money orders and traveler’s
checks being forwarded for collection;
C. share drafts;

Cash Items in Process of Collection (Item B.2)

D. bank drafts and Federal Reserve drafts;

Cash items in the process of collection consist primarily
of the reporting institution’s checks or drafts, deposited
by its customers (including other depository institutions),
that have been sent for collection through another entity
for which settlement has not occurred and the funds are
not immediately available.

E. payable-through drafts that have been received
by the reporting institution and that will be
forwarded to (deposited at) another depository
institution for collection;

Funds for which the reporting institution is given immediate credit (that is, the funds are available for withdrawal
by close of business), even if settlement has not occurred,
should be excluded from this item. These funds may be
included in item B.1 if the availability and form meet the
criteria outlined in item B.1.
Include in item B.2
1. checks or drafts in process of collection that are
drawn on another depository institution, deposited
at the reporting institution, that are payable immediately upon presentation in the United States, that
have been posted to the general ledger, and for
which credit has already been given to the depositor’s account;
2. checks on hand that will be presented for payment
or forwarded for collection on the following business day and that have been posted to the general
ledger. These include cash items that were not
forwarded the day of their deposit for reasons such
as inclement weather, transportation difficulties, or
natural disasters;
3. checks or drafts drawn on the Treasury of the
United States that are in process of collection;
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F. brokers’ security drafts and commodity or bill
of lading drafts (including arrival drafts) that
are payable immediately upon presentation in
the United States;
G. amounts credited to deposit accounts in connection with automated payment arrangements
where such credits are made one business day
prior to the scheduled payment date to ensure
that funds are available on the payment date;
H. returned items drawn on other depository institutions;
I. unposted debits; and
J. food coupons and certificates.
Exclude from item B.2
1. items handled as noncash items,5 whether or not
cleared through Federal Reserve Banks;
2. items not payable in the United States;

5. Regulation J of the federal regulations defines a ‘‘noncash item’’ as
an item that a receiving Reserve Bank classifies in its operating circulars as
requiring special handling. The term also means an item normally received
as a cash item if a Reserve Bank decides that special conditions require
that it handle the item as a noncash item.

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3. items that have been settled when the reporting
institution has received immediately available
funds. These funds may be included in item B.1,
Demand Balances Due from Depository Institutions in the U.S., if they remain in a demand
deposit account at the close of business;
4. 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;
5. payable-through drafts received by the reporting
institution, when the reporting institution is acting
in the capacity of a clearing agent for a nondepository institution, that have not been collected from
that nondepository institution which is the drawer
of the draft;
6. credit card or debit slips in process of collection,
whether or not deposit credit has been given;
7. checks or drafts in the process of collection until
the check or draft is credited to a deposit or the
reporting institution’s general ledger;
8. payment errors (see section 1, subsection K, Treatment of Payment Errors); and
9. returned items drawn on the reporting institution.
Total Savings Deposits (Item C.1)
Report in item C.1 the balance of all savings deposits, as
defined below, both personal and nonpersonal, that are
outstanding at the close of business each day.
A savings deposit is a deposit described in section 1,
subsection G.1, or a primary obligation described in
section 1, subsection G.2, with respect to which the
depositor is not required by the deposit contract, but may
at any time be required by the reporting institution, to
give written notice of an intended withdrawal not less
than seven days before the withdrawal is made, and that
is not payable on a specified date or at the expiration of a
specified time after the date of deposit.6
6. When the reporting institution exercises its right to require written
notice of an intended withdrawal in connection with a savings deposit, the
deposit continues to be a savings deposit and should not be reclassified as a
time deposit. Where written notice actually is required by the reporting
institution and such notice is received from a depositor, the savings deposit

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The term ‘‘savings deposit’’ also means a deposit or
account, such as an account commonly known as a
passbook savings account, a statement savings account,
or a money market deposit account (MMDA), that otherwise meets the requirements of the preceding paragraph
and from which, under the terms of the deposit contract
or by practice of the reporting institution, the depositor is
permitted or authorized to make no more than six transfers and withdrawals, or a combination of such transfers
and withdrawals, 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 third party by means of a
preauthorized or automatic transfer; a telephonic (including data transmission) agreement, order, or instruction; or
by check, draft, debit card, or similar order made by the
depositor and payable to third parties.
Please note that transfers from savings deposits for
purposes of covering overdrafts (overdraft protection
plans or bona fide cash management agreements) are
included under the transfer and withdrawal limits specified for savings deposits.
Please also note the following with respect to savings
deposits:
1. There are no regulatory restrictions on the following types of transfers or withdrawals from a
savings deposit:
A. transfers for the purpose of repaying loans
(other than loans associated with covering
overdrafts in a transaction account) and associated expenses at the same reporting institution (as originator or servicer);
B. transfers of funds to another account of the
same depositor at the same reporting institution when made by mail, messenger, ATM, or
in person; and
C. withdrawals for payment directly to the depositor when made by mail, messenger, ATM, in
person, or by telephone (via check mailed to
the depositor).
2. No minimum maturity is required by regulation,
but reporting institutions must reserve the right to
require at least seven days’ written notice prior to
becomes a demand deposit after expiration of the notice period and should
be reported in item A.1.a, A.1.b, or A.1.c, as appropriate.

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withdrawal as stipulated above for a savings
deposit.
3. No minimum balance is required by regulation.
4. There is no regulatory limitation on the amount of
interest that may be paid on a savings deposit.
Any depository institution may place restrictions and
requirements on savings deposits in addition to those
stipulated above and in Regulation D. In the case of such
further restrictions, the account would still be reported as
a savings deposit.
However, an account that otherwise meets the definition
of a savings deposit but that authorizes or permits the
depositor to exceed the six-transfer/withdrawal rule
described above is a transaction account, as follows:
1. If the depositor is ineligible to hold a NOW
account, such an account is considered a demand
deposit and shall be reported in item A.1.a or item
A.1.c.
2. If the depositor is eligible to hold a NOW account,
the account will be considered either a NOW
account, a telephone or preauthorized transfer, or
an ATS account. For purposes of the FR 2900
report, all such accounts shall be reported in item
A.2.
Multiple savings accounts where the reporting institution
suggests, or otherwise promotes, multiple accounts to
permit transfers in excess of the limits applicable to
individual savings accounts also are transaction accounts
and reported as above.
Include in item C.1
1. accounts commonly known as passbook savings
accounts, statement savings accounts, and MMDAs
that meet the above definition of savings deposits;
2. interest-bearing and non-interest-bearing savings
deposits;
3. savings deposits maintained as compensating balances or pledged as collateral for loans. For
purposes of the FR 2900 report, such savings
deposits are not defined as hypothecated deposits;
4. escrow deposits where the reporting institution
reserves the right to require at least seven days’
written notice before payment can be made and
that otherwise meet the criteria contained in the
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definition of a savings deposit (see section 1,
subsection J, Treatment of Escrow Funds);
5. interest paid and credited to savings deposit
accounts;
6. savings deposits in the form of individual retirement accounts (IRAs) or Keogh Plan accounts;
7. club accounts, such as Christmas club, vacation
club, or other similar club accounts that meet the
criteria for savings deposits;
8. any funds received by the reporting institution’s
affiliate and later channeled to the reporting institution by the affiliate in the form of savings deposits;
9. any deposit or account (a) that otherwise meets the
definition of a time deposit but that allows withdrawals within the first six days after the date of
deposit and (b) that does not require an early
withdrawal penalty of at least seven days’ simple
interest on amounts withdrawn within those first
six days but that is subject to the minimum notice
requirement and withdrawal limitations of a savings deposit. To meet these criteria, the reporting
institution must expressly reserve the right to
require at least seven days’ written notice before an
intended withdrawal, and the account must be
subject to the limits on the number and types of
transfers specified for savings deposits as defined
above. Otherwise, such a deposit or account must
be reported in item A.1.a or item A.1.c;
10. the remaining balance of a time deposit from
which a partial early withdrawal has been 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 but that is
subject to the minimum notice requirement and
withdrawal limitations of a savings deposit. To
meet these criteria, the reporting institution must
expressly reserve the right to require at least seven
days’ written notice before an intended withdrawal, and the account must be subject to the
limits on the number and types of transfers specified for savings deposits as defined above. Otherwise, such a remaining balance must be reported
in item A.1.a or item A.1.c;
11. brokered deposits that meet the criteria of savings
deposits; and
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12. the reporting institution’s liability on primary obligations described in section 1, subsections G.2.a,
b, d, e, f, and g, that are issued in original
maturities of seven days or more to non-exempt
entities that meet the criteria of savings deposits.
Exclude from item C.1
1. all accounts defined as transaction accounts, including
A. demand deposits (report in item A.1.a, A.1.b,
or A.1.c, as appropriate);
B. telephone or preauthorized transfer accounts
that meet the definition of a transaction account
(report in item A.2);
C. NINOW (non-interest-bearing NOW) accounts
and POW (payment order of withdrawal)
accounts (report in item A.1.c); and

8. certain obligations issued by the reporting institution’s nonconsolidated affiliates. These transactions are reported in item AA.1 or item BB.2. (See
section 1, subsection G.3, Primary Obligations.)
Procedures for Ensuring That the Permissible
Number of Transfers from Savings Deposits Is Not
Exceeded
To ensure that no more than the permitted number of
withdrawals or transfers is made for an account to come
within the definition of a savings deposit, a reporting
institution must either
1. prevent withdrawals or transfers of funds in this
account that are in excess of the limits established
for savings deposits; or

D. NOW accounts and ATS accounts (report in
item A.2);

2. adopt procedures to monitor those transfers on an
ex-post basis and contact customers who exceed
the limits established for the particular account on
more than an occasional basis.

2. any accounts that are savings deposits in form but
that the Federal Reserve Board has determined, by
rule or order, to be transaction accounts. These
accounts should be reported in the appropriate item
of section A, Transaction Accounts;

In applying the limits to withdrawals and transfers per
calendar month or statement cycle (or similar period) of
at least four weeks, the reporting institution at its option
may use, on a consistent basis, either the date on the
check, draft, or similar item or the date the item is paid.

3. special passbook or statement accounts, such as
‘‘ninety-day notice accounts,’’ ‘‘golden passbook
accounts,’’ or deposits labeled as ‘‘savings certificates,’’ that have a specified original maturity of
seven days or more (report in item D.1);

For customers who continue to violate those limits after
being contacted by the reporting institution, the reporting
institution must either close the account and place the
funds in another account that the depositor is eligible to
maintain or take away the account’s transfer and draft
capabilities.

4. interest accrued on savings deposits but not yet
paid or credited to a deposit account;
5. hypothecated deposits. For purposes of the FR
2900 report, hypothecated deposits do not include
deposits serving simply as collateral for loans;
6. funds deposited to the credit of the reporting
institution’s own trust department where the funds
involved are utilized to cover checks or drafts.
Such funds are reported in item A.1.c, Other
Demand Deposits;
7. amounts of outstanding bankers’ acceptances that
are created by the reporting institution and that are
of the type that are ineligible for discount at
Federal Reserve Banks. These transactions are
reported in item AA.1 or item BB.2; and
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An account that authorizes withdrawals or transfers in
excess of the permitted number is a transaction account,
regardless of whether the authorized number of transactions is actually made, and should be classified as follows:
1. If the depositor is ineligible to hold a NOW
account, such an account is considered a demand
deposit and shall be reported in item A.1.a or item
A.1.c.
2. If the depositor is eligible to hold a NOW account,
the account will be considered either a NOW
account, a telephone or preauthorized transfer, or
an ATS account. For purposes of the FR 2900
report, all such accounts shall be reported in item
A.2.
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Multiple savings accounts where the reporting institution
suggests, or otherwise promotes, multiple accounts to
permit transfers in excess of the limits applicable to
individual savings accounts also are transaction accounts
and reported as above.
Total Time Deposits (Item D.1)
Include in item D.1 the balance of all time deposits in the
form of both deposits and primary obligations that are
outstanding at the close of business each day. Item D.1
covers both personal and nonpersonal time deposits.
Time deposits include deposits (including certificates of
indebtedness) described in section 1, subsection G.1, and
primary obligations described in section 1, subsection
G.2, from which the depositor does not have a right and
is not permitted to make withdrawals 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. A 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 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; otherwise, it becomes
a demand deposit.
Reporting of Deposits Issued on a Discount Basis
Time deposits (including certificates of indebtedness)
issued on a discount basis should be reported initially on
the basis of the amount of funds actually received by the
reporting institution. For example, if the reporting institution received $96,000 in exchange for a certificate of
deposit issued at face value of $100,000, only the $96,000
received at the time of issuance should be reported
initially as a time deposit. However, as the institution’s
obligation to the depositor increases over the life of the
deposit, representing interest earned on the deposit, the
incremental amounts as credited to the certificate also
should be reported as time deposits.
Include in item D.1
1. funds that 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
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payable only upon written notice that is actually
required to be given by the depositor not less than
seven days prior to withdrawal;
2. time certificates of deposit (including roll-over
certificates of deposit), whether evidenced by
negotiable or nonnegotiable instruments;
3. time deposit open accounts evidenced by written
contracts;
4. club accounts, such as Christmas club, vacation
club, or other similar club accounts that are not
maintained as savings deposits, that are deposited
under written contracts providing 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 may be made within six days from the
end of the period;
5. savings certificates, notice accounts, and passbook
accounts (but not savings deposits);
6. funds received or held in escrow accounts that
meet the above criteria for a time deposit above
(also see section 1, subsection J, Treatment of
Escrow Funds);
7. interest-bearing and non-interest-bearing time
deposits;
8. individual retirement account (IRA) funds or Keogh
Plan accounts held in the form of time deposits;
9. time deposits held by an employer as part of an
unfunded deferred compensation plan established
pursuant to subtitle D of the Revenue Act of 1978
(Pub. L. No. 95-600; 92 Stat. 2763);
10. time deposits maintained as compensating balances or pledged as collateral for loans;
11. all interest paid by crediting time deposit accounts;
12. time deposit accounts at non-U.S. offices of the
reporting institution when the deposit is payable in
the United States or is guaranteed payable at a
U.S. office;
13. the reporting institution’s liability on primary obligations described in section 1, subsections G.2.a,
b, d, e, f, and g, that are issued in original
maturities of seven days or more to non-exempt
entities;
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14. due bills described in section 1, subsection G.2.i,
that are issued to any U.S. or non-U.S. entity in
original maturities of seven days or more;
15. any funds received by the reporting institution’s
affiliate and later channeled to the reporting institution by the affiliate in the form of a time deposit;
16. brokered deposits that meet the criteria of time
deposits;
17. all matured time certificates of deposits during the
10-day grace period following maturity, if such a
grace period exists (see 12 CFR § 329.104); and
18. deposit notes and bank notes.
Exclude from item D.1 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 allows withdrawals
within the first six days after the date of 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 in item C.1,
Total Savings Deposits; otherwise, they shall be
reported as demand deposits in item A.1.a or item
A.1.c;
2. the remaining balance of a time deposit from
which a partial early withdrawal has been 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 in item C.1, Total Savings
Deposits; otherwise, they shall be reported as
demand deposits in item A.1.a or item A.1.c;
3. time deposit 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
the purpose of making payments or transfers to
third parties or a deposit account of the depositor.
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Such time deposits that meet the definition of a
savings deposit shall be reported in item C.1, Total
Savings Deposits; otherwise, they shall be reported
as demand deposits in item A.1.a or item A.1.c;
4. any accounts that are time deposits in form but that
the Federal Reserve Board has determined, by rule
or order, to be transaction accounts (report in items
A.1 through A.3, as appropriate);
5. all matured time certificates of deposits, after the
grace period following the maturity, if such a grace
period exists;
6. interest accrued on time deposits but not yet paid
or credited to a deposit account;
7. NOW accounts and ATS accounts (report in item
A.2);
8. telephone or preauthorized transfer accounts that
meet the definition of a transaction account (report
in item A.2);
9. savings deposits (report in item C.1);
10. deposits for which the reporting institution merely
reserves the right to require at least seven days’
written notice of an intended withdrawal;
11. hypothecated deposits. Please note that for purposes of the FR 2900 report, hypothecated deposits do not include deposits serving simply as
collateral for loans;
12. funds received and credited to dealer reserve or
dealer differential accounts that the reporting institution is not obligated to make available to either
the dealer or the dealer’s creditors;
13. funds obtained from state and local housing
authorities under loan-to-lender programs involving the issuance of tax-exempt bonds and the
subsequent lending of the proceeds to the reporting institution for housing finance purposes;
14. repurchase agreements involving obligations of,
or obligations fully guaranteed as to principal and
interest by, the U.S. government or a federal
agency, or the shares of a money market mutual
fund whose portfolio consists wholly of obligations of, or obligations fully guaranteed as to
principal and interest by, the U.S. government or a
federal agency;
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15. borrowings from a Federal Reserve Bank or a
Federal Home Loan Bank;

tution if the reporting institution’s account at the
correspondent institution has already been charged;

16. due bills issued to any entity that are collateralized
within three business days by securities similar to
the securities purchased (see section 1, subsection
G.2.i, Primary Obligations);

4. U.S. currency and coin held at an alternate physical
location (including the reporting institution’s nonproprietary ATMs) provided that all of the following conditions are satisfied:

17. any primary obligation, except for due bills, issued
or undertaken to obtain funds, regardless of the
use of the proceeds, when transacted with the U.S.
offices of exempt entities;

A. The reporting institution at all times retains
full rights of ownership in and to the currency
and coin held at the alternate physical location.

18. subordinated notes and debentures;
19. certain obligations issued by the reporting institution’s nondepository affiliates (see section 1, subsection G.3, Primary Obligations). These transactions are reported in item BB.2 if nonpersonal;
20. amounts of outstanding bankers’ acceptances that
are created by the reporting institution and that are
of the type that are ineligible for discount at
Federal Reserve Banks (see section 1, subsection
G.3, Primary Obligations). These transactions are
reported in items AA.1 and BB.2; and
21. any liability of a U.S. branch or agency of a
foreign (non-U.S.) bank to another U.S. branch or
agency of the same foreign (non-U.S.) bank, or the
liability of the U.S. office of an Edge Act and
agreement corporation to another U.S. office of the
same Edge Act and agreement corporation.
Vault Cash (Item E.1)
Include in item E.1
1. U.S. currency and coin owned by the reporting
institution (booked as an asset) and held at a
physical location (including the reporting institution’s proprietary ATMs) of the reporting institution that may, at any time, be used to satisfy
depositors’ claims;
2. U.S. currency and coin in transit to a Federal
Reserve Bank for which the reporting institution
has not yet received credit, and in transit from a
Federal Reserve Bank when the reporting institution has already been charged;
3. U.S. currency and coin in transit to a correspondent
institution if the reporting institution’s account at
the correspondent institution has not yet been
credited, and in transit from a correspondent instiFR 2900
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B. The reporting institution at all times books the
currency and coin held at the alternate physical
location as an asset.
C. No other depository institution claims the currency and coin held at the alternate physical
location as vault cash that can be used to
satisfy its reserve requirements.
D. The currency and coin held at the alternate
physical location is reasonably nearby a location of the reporting institution at which its
depositors may make cash withdrawals. An
alternate physical location is considered ‘‘reasonably nearby’’ if the reporting institution
can recall the currency and coin by 10:00 a.m.
and, relying solely on ground transportation,
receive the currency and coin no later than
4:00 p.m. on the same calendar day.
E. The reporting institution has in place a written
cash delivery plan, including written contractual arrangements necessary to implement that
plan, that demonstrates that the currency and
coin can be recalled and received at any time in
accordance with the requirements specified in
the preceding sub-bullet D. The reporting institution shall provide copies of the written cash
delivery plan and written contractual arrangements to its local Federal Reserve Bank upon
request.
Exclude from item E.1
1. foreign (non-U.S.) currency and coin;
2. silver and gold coin and other currency and coin
whose numismatic or bullion value is in excess of
face value;
3. U.S. currency and coin that the reporting institution
does not have full and unrestricted right to use,
such as coin collections held for safekeeping for
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customers, currency and coin pledged as collateral
by the reporting institution or by customers, or
currency and coin sold under a repurchase agreement or purchased under a resale agreement;
4. currency and coin held under the custodial inventory program with the Federal Reserve for which
the reporting institution has received credit;
5. cash shipped by the reporting institution to a
Federal Reserve Bank or correspondent institution
for which credit has been given to the reporting
institution; and
6. checks, drafts, and cash items in process of collection.
Memorandum Section
All Time Deposits with Balances of $100,000 or
More (Included in Item D.1) (Item F.1)
Report in this item the balance of all time deposits of
$100,000 or more that are included in item D.1, Total
Time Deposits. In determining if a time deposit has a
balance of $100,000 or more, do not combine deposits
that are represented by separate certificates or accounts,
even if held by the same customer. Item F.1 covers both
personal and nonpersonal time deposits.
Include in item F.1
1. negotiable and nonnegotiable, and transferable and
nontransferable, certificates of deposit issued in
denominations of $100,000 or more;
2. time deposit open accounts and other time deposits
having balances of $100,000 or more;
3. time deposits (including certificates of indebtedness) that were 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;

If the reporting institution receives brokered deposits in
the form of time deposits, only that portion of the deposit
in amounts of $100,000 or more that is credited to a
single depositor should be included in this item. The
remainder of the deposit is regarded as small time
deposits. For example, if a broker purchases one large
certificate of deposit (CD) for $5 million on behalf of
several depositors, and each of the underlying depositors’
shares in the CD is less than $100,000, the entire amount
of the CD should be excluded from this item. However, if
any of the underlying depositors have balances of
$100,000 or more, that portion of the CD held by such a
depositor or depositors should be included in this item.
If the reporting institution is unable to collect information
from a broker on the amounts credited to underlying
depositors, then, generally, the entire amount of the
brokered time deposit should be excluded from this item.
However, in such cases, the reporting institution should
use all available information to determine whether there
is good reason to believe that amounts credited to
underlying depositors are $100,000 or greater. For example, if the broker deals mainly with institutional customers, then the value of each underlying share will likely be
greater than $100,000, and the brokered deposit should
be included in this item.
Exclude from item F.1
1. time deposits with balances of less than $100,000;
2. transaction accounts;
3. savings deposits; and
4. any accounts that are time deposits in form but that
the Federal Reserve Board has determined, by rule
or order, to be transaction accounts.
Schedule AA and Schedule BB - Other Reservable
Obligations by Remaining Maturity

4. primary obligations, which meet the definition of
time deposits, with balances of $100,000 or more;
and

Items AA.1 and BB.2 break down, by remaining maturity, the amounts outstanding (1) of ineligible acceptances (finance bills)7 and (2) of funds obtained through
the issuance of obligations by nonconsolidated affiliates.
Please note that items AA.1 and BB.2 are applicable only
to those reporting institutions that have such obligations.

5. foreign (non-U.S.) currency-denominated deposits
that were originally issued for amounts of $100,000
or more but that, because of their having been
converted to U.S. dollars, now have a balance of
less than $100,000 on the report date.

7. Include in items AA.1 and BB.2 all ineligible acceptances created by
the reporting institution but not currently held in the reporting institution’s
own portfolio. Exclude all ineligible acceptances (1) created by the reporting institution and sold to an exempt entity and (2) created by and held in
the reporting institution’s own portfolio.

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If the reporting institution does not have such obligations, the reporting institution need only check the boxes
that precede schedule AA and item BB.2 on the reporting
form.
Ineligible Acceptances and Obligations Issued by
Affiliates (Items AA.1 and BB.2)
Report the following transactions in items AA.1 and
BB.2:
1. Amounts of ineligible acceptances (including
finance bills): Report the dollar amounts of ineligible acceptances (those that are not eligible for
discount by Federal Reserve Banks—see paragraph 7 of section 13 of the Federal Reserve Act).
Some ineligible acceptances are referred to as
finance bills or ‘‘Working Capital Acceptances.’’
For ineligible acceptances, report only those outstanding ineligible acceptances that resulted in
funds being obtained by the reporting institution
(or its majority-owned subsidiary) through the
creation, discount, and subsequent sale of the
acceptance by the reporting institution (or its
majority-owned subsidiary), except those sold to
and held by exempt entities. The amounts to be
reported are the amounts of funds received and not
necessarily the face amounts of the ineligible
acceptances created. For ineligible acceptances,
report the amounts outstanding of all ineligible
acceptances, except those sold to and held by
exempt entities. For outstanding ineligible acceptances that resulted in funds being obtained by the
reporting institution (or its majority-owned subsidiaries), except those sold to and held by exempt
entities, report the dollar amounts of funds received.
For all other ineligible acceptances (those that did
not result in funds being obtained by the reporting
institution or its majority-owned subsidiaries),
report the face amounts of the ineligible acceptances created.
2. Amounts of funds obtained through obligations
issued by nonconsolidated affiliates: Report the
dollar amounts of the funds obtained by the reporting institution (or its majority-owned subsidiaries)
when its nonconsolidated affiliates use the proceeds of the obligations that they issue to supply or
maintain the availability of funds to the reporting
institution. Such obligations may be in the form of
promissory notes (including commercial paper),
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September 2015

acknowledgments of advance, due bills, or similar
obligations (written or oral). However, such obligations should be reported only to the extent that they
would have constituted ‘‘deposits’’ as described in
section 1, subsection G.1, or primary obligations as
described in section 1, subsection G.2, had they
been issued directly by the reporting institution.
Due bills issued by the reporting institution’s affiliates
are reservable deposits, without regard to the purpose of
the due bills or the party to whom they were issued,
unless collateralized within three business days from the
date of issuance by a security similar to the security
purchased from the customer of the reporting institution’s affiliates. The dollar amounts of due bills that are
not so collateralized are to be reported by original
maturity and beneficial holder in the appropriate line item
or schedule.
Exclude from items AA.1 and BB.2 funds obtained by
the reporting institution through obligations issued by
affiliates and deposited at the reporting institution in the
form of transaction accounts, savings deposits, or time
deposits. Such funds should be reported on the FR 2900
as transaction accounts, savings deposits, or time deposits, as appropriate.
Determining Maturities
For ineligible acceptances that were created, discounted,
and sold by the reporting institution (or its majorityowned subsidiary), the maturities to be reported in items
AA.1 and BB.2 are the remaining maturities of the
obligations at the time the proceeds are supplied to the
reporting institution. For acceptances that were not discounted and sold by the reporting institution (or its
majority-owned subsidiaries), the maturity to be reported
is the original term of the instrument. Balances should be
classified based on the maturity category initially reported
and not the remaining maturity on the report date.
If the affiliate’s obligation is determined to be a deposit
or primary obligation and reportable in item AA.1 or item
BB.2, then the appropriate maturity category is determined by the shorter of (1) the maturity of the affiliate’s
obligation or (2) the maturity of the obligation issued by
the reporting institution to the affiliate or, in the case of
assets purchased from the reporting institution, the
remaining maturity of the assets purchased.
Classifying an Affiliate’s Obligation
The following chart summarizes the conditions under
which the proceeds from the issuance of an obligation by
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an affiliate would be a deposit or a primary obligation and
indicates the appropriate section of the FR 2900 in which
the funds should be reported:

Affiliate’s obligation

Funds received by the reporting institution in the form of a deposit or a
primary obligation

Funds received by the reporting institution not in the form of a deposit or
a primary obligation

1. Affiliate’s obligation would have
been a deposit or a primary obligation if issued by the reporting
institution.

To be reported on FR 2900 as a transaction account, savings deposit, or
time deposit, as appropriate. (See
example 1 below.)

To be reported on FR 2900 item
AA.1 or item BB.2.
(See example 2 below.)

2. Affiliate’s obligation would not
have been a deposit or a primary
obligation if issued by the reporting institution.

To be reported on FR 2900 as a transaction account, savings deposit, or
time deposit, as appropriate.
(See example 3 below.)

To be excluded from both the body
and schedule AA of the FR 2900.
(See example 4 on the following
page.)

Example 1:
The nondepository affiliate issues commercial paper with
a maturity of six months to a nonfinancial corporation
and immediately supplies the proceeds to the reporting
institution by buying from the reporting institution a time
certificate of deposit (CD) with an original maturity of
one year. Although both the nondepository affiliate’s and
the reporting institution’s obligations are reservable
liabilities, reserve requirements are not imposed on both
obligations. In this case, reserve requirements would be
imposed on the amount of funds supplied to the reporting
institution (that is, the dollar amount of the CD). Maturity
is determined by the shorter of the maturity of the
nondepository affiliate’s commercial paper or the maturity of the reporting institution’s CD. In this example, the
reservable obligation would be a nonpersonal time
deposit with a six month maturity.8 The funds received
by the reporting institution would be reported in the body
of the FR 2900 in item D.1, Total Time Deposits, and in
item BB.1, Total Nonpersonal Savings and Time Deposits. If the CD has a balance of $100,000 or more, it also is
included in item F.1, All Time Deposits with Balances of
$100,000 or More.

Example 2:
The nondepository affiliate issues an unsecured due bill
to a non-exempt entity with a maturity of three months
and supplies the proceeds to the reporting institution
when the due bill has a remaining maturity of two
months. The nondepository affiliate supplies the proceeds
of the due bill to the reporting institution by purchasing
from the reporting institution assets maturing in one
month. The nondepository affiliate’s obligation is reservable, but the sale of the assets by the reporting institution
to the nondepository affiliate is not. The reporting institution must hold reserves on the transaction because the
nondepository affiliate’s obligation is subject to reserve
requirements. The maturity category is determined by the
remaining maturity of the assets sold by the reporting
institution to the nondepository affiliate (one month),
which is shorter than the remaining maturity of the due
bill (two months). In this example, the reserve requirement would be on the nondepository affiliate’s due bill (a
primary obligation), and the appropriate maturity would
be one month, which is the remaining maturity of the
assets purchased. The funds received by the reporting
institution should be reported in item BB.2, Ineligible
Acceptances and Obligations Issued by Affiliates Maturing in Seven Days or More (Nonpersonal Only).
Example 3:

8. Nonpersonal time deposits, regardless of maturity, are reservable
liabilities that currently carry a 0 percent reserve requirement.

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The nondepository affiliate sells commercial paper with a
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maturity of three months to a commercial bank and
supplies the proceeds to the reporting institution by
depositing such funds in the reporting institution in a
demand deposit account. The nondepository affiliate’s
sale of commercial paper to a commercial bank is not
subject to reserve requirements, but the demand deposit
account is. Thus, the reporting institution would hold
reserves on the demand deposit account as a transaction
account. The funds received by the reporting institution
should be reported in item A.1.c, Other Demand Deposits.
Example 4:
The nondepository affiliate sells U.S. government securities under an agreement to repurchase and uses the
proceeds to purchase assets from the reporting institution. Neither the sale of the U.S. government securities
under an agreement to repurchase nor the purchase of
assets is subject to reserve requirements. Thus, the
reporting institution would not hold reserves against this
transaction. The funds received by the reporting institution should be excluded entirely from the FR 2900.
Schedule AA
Ineligible Acceptances and Obligations Issued by
Affiliates Maturing in Less Than Seven Days (Item
AA.1)
Report in item AA.1 the amounts of funds obtained
through the issuance of obligations by affiliates and of
funds obtained through the use of ineligible acceptances
(except those sold to and held by exempt entities) both of
which mature in less than seven days. Exclude from this
item all ineligible acceptances of the reporting institution
sold to, and known to be held by, a non-U.S. office of
another depository institution or of an Edge Act and
agreement corporation; such ineligible acceptances should
be included in item BB.2.
Schedule BB-Nonpersonal Items
These items are to be reported only one day each year.
Reporting institutions should report the balance as of the
close of business on June 30.
Total Nonpersonal Savings and Time Deposits (Item
BB.1)
Report in item BB.1 the total of all nonpersonal savings
deposits and nonpersonal time deposits, regardless of
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September 2015

denomination or maturity, that also are included in items
C.1, Total Savings Deposits, and D.1, Total Time Deposits.
Include in item BB.1
1. savings and time deposits that represent funds
deposited to the credit of, or in which any beneficial interest is held by, a depositor that is not a
natural person, other than a deposit to the credit of
a trustee or other fiduciary if the entire beneficial
interest in the deposit is held by a natural person or
persons; and
2. savings and time deposits that are transferable,
whether or not the entire beneficial interest is held
by natural persons. A deposit is transferable unless
it includes on the face of a document evidencing
the account a statement that the deposit is not
transferable or that it is transferable on the books
of, or with the permission of, the reporting institution.
Exclude from item BB.1
All personal savings and personal time deposits that are
not transferable and that represent funds in which the
entire beneficial interest is held by a depositor who is a
natural person. Examples are as follows:
1. individual retirement accounts (IRAs), Keogh Plan
Accounts, and accounts held by an employer as
part of an unfunded deferred compensation plan
established pursuant to Subtitle D of the Revenue
Act of 1978 (Public Law No. 95 600; 92 Stat.
2763) in the form of savings or time deposits. A
nontransferable deposit that is an asset of a pension
fund normally would be regarded as a personal
deposit, as the entire beneficial interest in such
funds normally is held by natural persons;
2. escrow accounts, such as funds held for tax or
insurance payments, if the depositor is a natural
person;
3. trust funds held in the name of a trustee or other
fiduciary, whether or not a natural person, if the
entire beneficial interest is held by natural persons;
and
4. club accounts, in the form of a savings or time
deposit and held by natural persons, such as Christmas club, vacation club, and similar club accounts.
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If a broker provides a secondary market in these deposits,
as is usually the case, such deposits are transferable even
if they are transferable only on the books and records of
the broker and not on the books and records of the
reporting institution itself. Transferable brokered deposits in the form of savings or time deposits are regarded as
nonpersonal savings or nonpersonal time deposits unless
they are (1) deposited to the credit of, and the entire
beneficial interest is held by, natural persons and (2)
subject to an agreement between the broker and the
reporting institution that includes all of the following
essential terms:
1. The broker will maintain records of the names of
the beneficial owners of all brokered deposits, and
such records will be made available to any agency
regulating the reporting institution.
2. The broker will determine the amount of deposits
beneficially owned by natural persons and by
entities other than natural persons and will provide
a written report to the reporting institution with
that information. That written report must (1) be
submitted on the close of business every Monday
or on the opening of business Tuesday for the oneweek period beginning on the previous Tuesday
and ending on Monday; (2) include daily data on
the actual amount of personal time deposits and the
actual amount of nonpersonal time deposits; and
(3) include daily data on the amount of deposits in
which the beneficial interest of any one depositor
in principal plus interest exceeds $100,000. (For
this purpose, separate deposits or accounts are not
aggregated even if held by the same customer.)
3. The reporting institution has access to records
concerning the deposits brokered for it, and those
records should either be delivered to the offices of
the reporting institution or, where appropriate, its
federal or state regulator, or access to the records
must be provided to the reporting institution and its
supervisory authority on the broker’s premises.
4. The broker will commit to provide the reporting
institution with any other data about the brokered

BA-36

deposits that may be needed in the future by the
institution’s state or federal regulator.
Ineligible Acceptances and Obligations Issued by
Affiliates Maturing in Seven Days or More
(Nonpersonal Only) (Item BB.2)
For information on ineligible acceptances and obligations
issued by affiliates, see schedule AA and schedule BB,
Other Reservable Obligations by Remaining Maturity.
Report in item BB.2 the amounts of funds obtained
through the issuance of obligations by affiliates and of
funds obtained through the use of ineligible acceptances
(except those sold to and held by exempt entities), both of
which mature in seven days or more. Also include all
ineligible acceptances of the reporting institution known
to be held by a non-U.S. office of another depository
institution or of an Edge Act and agreement corporation.
Report in item BB.2 only nonpersonal obligations,
including
1. funds in which any beneficial interest is held by a
depositor who is not a natural person, other than a
deposit to the credit of a trustee or other fiduciary if
the entire beneficial interest in the deposit is held
by a natural person;
2. an obligation that is transferable, except an obligation issued to and held by a natural person; and
3. an obligation that is issued to and held by a natural
person that does not contain on its face a statement
that it is not transferable.
Exclude from item BB.2 all personal obligations.
Schedule CC - Net Eurocurrency Liabilities
Net Eurocurrency Liabilities (Item CC.1)
Item CC.1 is reported only one day each year. U.S.
branches and agencies of foreign (non-U.S.) banks should
report the balance as of the close of business on June 30.
Please note that, for purposes of the FR 2900 report the
term non-U.S. offices excludes nonbanking offices of any
depository institution, affiliate or subsidiary.
A worksheet and worksheet instructions for the preparation of item CC.1 follow below.

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Worksheet for Preparation of Item CC.1, Net Eurocurrency Liabilities for U.S. Branches and Agencies of Foreign
(Non-U.S.) Banks
This worksheet is provided to assist the reporting institution in calculating item CC.1, Net Eurocurrency Liabilities, to be
reported on the FR 2900. This worksheet should not be submitted to the Federal Reserve Bank.
Please refer to the FR 2900 instructions for descriptions of the items below.
Item List

June Report Date
Bil

Mil

Example
Thou

Bil

Mil

Thou

Item 1:
Gross Borrowings from
Non-U.S. Offices of Other
Depository Institutions and
from Certain Designated
Non-U.S. Entities

4

000

Item 2:
Gross Liabilities to NonU.S. Parent Bank and its
Non-U.S. Offices plus Net
Liabilities to Own IBF9

2

000

Item 3:
Gross Claims on Non-U.S.
Parent Bank and its NonU.S. Offices plus Net
Claims on Own IBF9

8

000

Item 4:
Total Assets minus Certain
Assets and Positive Net
Balances Due from Own
IBF and Parent Bank’s U.S.
and Non-U.S. Offices

3

000

Item 5:
Assets Held by Own IBF
and Certain Related NonU.S. Institutions Acquired
from U.S. Offices

1

000

9. Include only a single net position in worksheet item 2 or 3 that represents the reporting institution’s net due from/due to position with the reporting
institution’s own international banking facility (IBF). Refer to the detailed FR 2900 instructions to determine this amount. Under no circumstances should an
amount be included in both worksheet items 2 and 3 that represents the reporting institution’s net position with its own IBF.
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Branches and Agencies

Calculate the reporting institution’s net eurocurrency liabilities using the formula below and enter the result in item CC.1
on the FR 2900. Step-by-step instructions for using the formula are given below.
Net Eurocurrency Liabilities = [(Item 2 + Item 5 - Item 3) –(Item 4)*(0.08)]† + Item 1
†If the result of the calculation enclosed within the brackets is negative,
that result is set to zero before proceeding with the rest of the equation.
In the example above, item CC.1 = 4,000, as shown below:
$4,000 = [(2,000 + 1,000 - 8,000) - 240] + 4,000
Step-by-Step Instructions for Calculating Item CC.1, Net Eurocurrency Liabilities, Given the Five Items Listed
on the Previous Page

Row

Bil

Mil

Thou

A. Enter amount in worksheet item 2
B. Enter amount in worksheet item 5
C. Enter amount in worksheet item 3
D. Enter result of:
Row A + Row B - Row C
E. Enter amount in worksheet item 4 x 0.08
F. Enter result of:
Row D - Row E (enter 0 if negative)
G. Enter amount in worksheet item 1
H. Enter result of: Row F + Row G
Report this item on the FR 2900 reporting form
(item CC.1, Net Eurocurrency Liabilities, rounded
to the nearest thousand dollars).

Gross Borrowings from Non-U.S. Offices of Other
Depository Institutions and from Certain
Designated Non-U.S. Entities (Worksheet Item 1)
Enter in this item all outstanding borrowings by the
reporting institution that were obtained from
A. non-U.S. banking offices of all U.S. and non-U.S.
depository institutions (except the reporting institution’s non-U.S. parent bank and its non-U.S.
branches and agencies), including
1. a non-U.S. parent bank’s holding company, if
the holding company is a bank;
2. a banking subsidiary of the non-U.S. parent
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bank’s holding company regardless of whether
the holding company is a bank;
3. a non-U.S. parent bank’s non-U.S. banking subsidiary; and
4. a non-U.S. branch of
(a) a U.S. depository institution; and
(b) an Edge Act and agreement corporation;
B. foreign (non-U.S.) national governments and foreign (non-U.S.) official banking institutions; and
C. international institutions.
All borrowings are to be reported on a gross basis.
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Borrowings from non-U.S. banking offices of other banks
should be included in this item regardless of the terminology used to describe such borrowings, including transactions that are referred to as ‘‘federal funds.’’
Include in worksheet item 1 as borrowings
1. obligations such as promissory notes, acknowledgments of advance, or similar obligations;
2. due bills or similar obligations that remain uncollateralized after three business days; and
3. overdrawn balances at non-U.S. offices of other
banks.
Exclude from worksheet item 1
1. any liability of the international banking facility
(IBF); or
2. any liability actually in the form of, and recorded
on the books of the reporting institution as, a
demand deposit, savings deposit, or time deposit
(including certificates of deposit); or
3. assets of the reporting institution that represent
obligations fully guaranteed as to principal and
interest by the U.S. government or a federal agency,
sold under an agreement to repurchase.
Gross Liabilities to Non-U.S. Parent Bank and Its
Non-U.S. Offices plus Net Liabilities to Own IBF
(Worksheet Item 2)

and agencies, whether in the form of demand or
time deposits or credit balances;
2. borrowings by the reporting institution from the
foreign (non-U.S.) parent bank or its non-U.S.
branches and agencies;
3. obligations of the reporting institution resulting
from purchases of assets from the foreign (nonU.S.) parent bank or its non-U.S. branches and
agencies;
4. assets (other than U.S. government or federal
agency securities) sold under agreements to repurchase by the reporting institution to the foreign
(non-U.S.) parent bank or to its non-U.S. branches;
5. checks or drafts drawn by or on behalf of the
reporting institution on accounts maintained at the
foreign (non-U.S.) parent bank or its non-U.S.
branches and agencies that give rise to an obligation of the reporting institution;
6. funds that are advanced by the foreign (non-U.S.)
parent bank that are regarded as capital contributions to the reporting institution, adjusted as
described below:
A. Unremitted profits (losses). Remitted earnings
resulting from the posting of operating results
should be added to the reporting institution’s
capital contribution. If an unremitted loss is
incurred by the reporting institution, this amount
should be subtracted from the capital contribution. (If the loss exceeds the capital contribution, excess between the amount of the loss and
that of the capital account is reported in worksheet item 3). Note that accrued income and
expenses are not to be included in this calculation until posted to the reporting institution’s
net income accounts.

Enter in this item the outstanding balance at the close of
business each day of gross liabilities of the reporting
institution to the foreign (non-U.S.) parent bank and its
non-U.S. branches and agencies. The net position of the
establishing entity with its international banking facility
(IBF) should be included in this item only if it is a net
‘‘due to.’’ (The instructions for the calculation of the
reporting institution’s net position with its own IBF are
shown following the detailed instructions for worksheet
item 3.) All liabilities due to the non-U.S. parent bank
and its non-U.S. offices should be reported gross and not
netted against claims. (Claims are reported gross in
worksheet item 3.) Exclude from this item any liabilities
to non-U.S. subsidiaries or non-U.S. affiliates owned by
the foreign (non-U.S.) parent bank or its holding company. These liabilities include, among other items,

7. overdrawn balances in deposit accounts of the
reporting institution held in the foreign (non-U.S.)
parent bank or its non-U.S. branches and agencies;
and

1. funds placed on deposit at the reporting institution
by the non-U.S. parent bank or its non-U.S. branches

8. other liabilities to the foreign (non-U.S.) parent
bank and its non-U.S. branches and agencies, such

FR 2900
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September 2015

B. Provision for loan loss. The capital contribution
should be reduced by any provision for loan
loss amount maintained as a separate expense
account at the office level.

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Branches and Agencies

as those resulting from clearing activities, payments related to foreign exchange transactions,
bankers acceptance transactions, and other activities.
In addition, include in this item the reporting institution’s
net liabilities, if any, to its own IBF. For calculation of
this amount, please see the section entitled ‘‘Calculation
of net due to/due from own IBF,’’ which appears immediately following the instructions for worksheet item 3 of
the FR 2900 report.
Gross Claims on Non-U.S. Parent Bank and Its
Non-U.S. Offices plus Net Claims on Own IBF
(Worksheet Item 3)
Enter in this item the outstanding balance at the close of
business each day of gross claims of the reporting
institution on the non-U.S. parent bank and its non-U.S.
branches and agencies. The net position of the establishing entity with its international banking facility (IBF)
should be entered in this line if it is a net ‘‘due from.’’
(See instructions below for the calculation of the reporting institution’s net position with its IBF.) All claims of
the reporting institution on the foreign (non-U.S.) parent
bank and its non-U.S. offices should be reported gross
and not netted against liabilities. (Liabilities are reported
gross in worksheet item 2). Exclude from this item any
claims on non-U.S. subsidiaries or non-U.S. affiliates
owned by the foreign (non-U.S.) parent bank or its
holding company. These claims include, among other
items,
1. funds placed on deposit at the non-U.S. parent bank
or its non-U.S. branches and agencies by the

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reporting institution, whether in the form of demand
or time deposits or credit balances;
2. funds advanced by the reporting institution to the
non-U.S. parent bank and its non-U.S. branches and
agencies;
3. obligations of the non-U.S. parent bank or its
non-U.S. branches and agencies to the reporting
institution resulting from sales of assets (including
sales of participations in assets);
4. assets (other than U.S. government or federal
agency securities) purchased under agreements to
resell by the reporting institution from its non-U.S.
branches and agencies;
5. overdrawn balances in deposit accounts held by the
non-U.S. parent bank or its non-U.S. branches and
agencies at the reporting institution;
6. other claims on the non-U.S. parent bank and its
non-U.S. branches and agencies, such as those
resulting from clearing activities, foreign exchange
transactions, bankers’ acceptance transactions, and
other activities; and
7. unremitted loss that is the sum of (1) any net
operating loss in excess of the foreign bank’s
capital contribution, (2) any unallocated portion of
the general loan loss account, and (3) any other
allowance amount set aside for possible loan
losses.
In addition, include in this item the reporting institution’s
net claims, if any, on its own IBF. For calculation of this
amount, please see the section entitled ‘‘Calculation of
net due to/due from own IBF,’’ which appears immediately below.

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Calculation of net due to/due from own IBF
To determine whether the reporting institution has net liabilities due to the reporting institution’s own international banking facility (IBF) to be entered in worksheet item 2, or net
claims on the reporting institution’s own IBF to be entered in worksheet item 3, it is necessary to perform the following calculations using the asset and liability accounts of the reporting institution’s own IBF:
1. Compute IBF liabilities to parties other than U.S. offices of the establishing entity minus
IBF assets due from parties other than U.S. offices of the establishing entity.
2. If the difference calculated in (1) is positive, it represents, on the books of the IBF, net balances due from U.S. offices of the establishing entity. For purposes of the FR 2900 report, it
represents the establishing entity’s net liabilities due to own IBF and should be included in
worksheet item 2.
3. If the difference calculated in (1) is negative, its absolute value represents, on the books of
the IBF, net balances due to U.S. offices of the establishing entity. For purposes of the FR
2900 report, its absolute value represents the establishing entity’s net claims on its own IBF
and should be included in worksheet item 3.

Total Assets Minus Certain Assets and Positive Net
Balances Due from Own IBF and the Parent Bank’s
U.S. and Non-U.S. Offices (Worksheet Item 4)

3. demand balances due from non-U.S. offices of U.S.
depository institutions and of other non-U.S. banks;
and

Enter in this item the amount outstanding of total assets
held by the reporting institution less the specific assets
listed below and net balances due from its own international banking facility (IBF) and the foreign (non-U.S.)
parent bank’s U.S. and non-U.S. offices. Total assets in
worksheet item 4 is calculated in the same manner as on
the Report of Assets and Liabilities of U.S. Branches and
Agencies of Foreign Banks (FFIEC 002). The net due
from related parties is calculated as one category, which
is then excluded from the amount of total assets in
worksheet item 4.

4. balances due from foreign (non-U.S.) official banking institutions. Please note that balances due from
these entities include all deposits regardless of
maturity (for example, certificates of deposit, credit
balances, and eurocurrency placements). However,
‘‘due from’’ balances exclude term loans, federal
funds sold, and repurchase agreements.

The accounting in worksheet item 4 closely follows the
instructions for preparing the FFIEC 002 report, except
for the fact that the beginning amount of total assets in
worksheet item 4 will differ from total assets on the
FFIEC 002.
Total assets as defined should then be reduced by

Assets Held by Own IBF and Certain Related
Non-U.S. Institutions Acquired from U.S. Offices
(Worksheet Item 5)
Enter in this item the amount outstanding of funds
received by the reporting institution for assets that are
held by the following institutions:
1. the reporting institution’s non-U.S. parent bank
(including non-U.S. branches and agencies of the
parent bank);

1. cash items in the process of collection and unposted
debits (from item B.2 of the FR 2900 report);

2. the reporting institution’s non-U.S. parent holding
company;

2. demand balances due from depository institutions
located in the United States (from item B.1 of the
FR 2900 report);

3. the reporting institution’s non-U.S. offices or an
IBF of an affiliated Edge Act and agreement corporation; and

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Branches and Agencies

4. the reporting institution’s own IBF.10
The amount entered here includes assets that are claims
on both U.S. and non-U.S. residents.
Include such assets as
1. loans and securities acquired and still held by the
related non-U.S. institutions listed above; and
2. participations in loans and other assets acquired by
the related non-U.S. institutions listed above.
Exclude from this item any asset that was required to be
sold by federal or state supervisory authorities or assets
sold under agreements to repurchase that are reported in
worksheet item 2.

Glossary
This section provides definitions for terms in sections 1
and 2. These definitions are used for purposes of the FR
2900. They may differ from definitions that appear in
other rules, regulations, statutes, or reports.
Acknowledgment of advance
A notification by a depository institution of its liability
for funds that have been received. Acknowledgments of
advance may take the form of an electronic advice,
written receipt, issuance of a credit memo or other
documentation, or simply an oral communication confirming the receipt of funds under a borrowing-lending
arrangement. Acknowledgments of advance are primary
obligations of the issuing depository institution.
ATS (Automatic transfer service) account
A deposit or account authorized by the last sentence of 12
U.S.C. § 371a and consisting only of funds (1) in which
the entire beneficial interest is held by one or more
individuals, (2) 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 (3) from which, pursuant to prior written
agreement between the 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
10. Do not include assets acquired by an IBF from its establishing entity
before the end of the second 14 day reserve computation period after
establishment of the IBF.

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connection with checks or drafts drawn upon the institution or to maintain a specified balance in, or to make
periodic transfers to, such other accounts.
An ATS account is a transaction account.
Bankers’ acceptance
A draft or bill of exchange usually drawn under a letter of
credit issued by the reporting institution to a customer
and ‘‘accepted’’ by the reporting institution (that is, the
reporting institution assumes an obligation to make payment at maturity). Generally, a bankers’ acceptance is
eligible for discount by a Federal Reserve Bank if it is
used to finance the export or import of goods, the
domestic shipment of goods, and the foreign or domestic
storage of goods and if it has a remaining maturity of 180
days or less. Bankers’ acceptances used to finance dollar
exchange are also eligible for discount by a Federal
Reserve Bank if the remaining maturity is three months
or less. Bankers’ acceptances issued for other purposes,
such as finance bills and working capital acceptances, are
ineligible for discount at Federal Reserve Banks. (See 12
U.S.C. § 372.)
Bankers’ bank
A bankers’ bank is an institution satisfying all of the
following criteria:
1. The institution is organized solely to do business
with other financial institutions. This requirement
may be met even though the institution does a
limited amount of business with customers other
than financial institutions. Those customers to
whom the institution may lend, or from whom it
may receive, deposits are specified in 12 CFR §
204.121.
2. The institution is owned primarily (75 percent or
more) by the financial institutions with which it
does business.
3. The institution does not do business with the
general public except for customers specified in 12
CFR § 204.121. Loans to customers other than
financial institutions may not exceed 10 percent of
the institution’s total assets, and the deposits that
the institution receives from customers other than
financial institutions may not exceed 10 percent of
the institution’s total liabilities.
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Banking business

Cash collateral account

The business of accepting deposits, making loans, and
providing related services. The banking business does
not include the acceptance of trust funds.

A liability account that is established typically in connection with the issuance of a commercial letter of credit by
the reporting institution. A cash collateral account appears
on the books of the reporting institution, through either a
transfer of funds from a customer’s deposit account or a
deposit of cash, in an amount equal to all or some portion
of the authorized amount of the letter of credit. As drafts
are drawn under the letter of credit and presented to the
reporting institution for payment, the amounts of the
drafts are charged to the account. After the letter of credit
expires, any balance remaining in the account is paid or
credited to the customer.

Bank note
A debt security issued by a depository institution with the
term ‘‘Bank Note’’ included on the instrument.
Bona fide cash management
A cash management plan can be regarded as bona fide
when an institution and a depositor have agreed that the
institution may use the balance in one account to offset
the overdrafts in another account of the same type or a
related depositor and where a bona fide cash management
purpose is served. Although a written agreement is not
required, there should be some indication of this purpose
that can be referred to in order to demonstrate the bona
fide nature of the arrangement. It should be recognized
that, depending on the nature and extent of any cash
management plan, sound banking practice may require
that the institution’s authority and responsibility be documented. A bona fide cash management function is not
served when an institution nets a depositor’s multiple
accounts after an overdraft occurs in one of these
accounts merely to reduce its reservable liabilities.

Certificates of indebtedness
Unsecured promissory notes that represent borrowings
by a depository institution.
Club accounts
Christmas club, vacation club, or similar savings deposits
or time deposits for which there are written contracts
providing that no withdrawals can be made until a certain
number of periodic deposits have been made during a
period of not less that three months, even though some of
the deposits are made within six days from the end of the
period.
Commodity or bill of lading draft

Branches and agencies of foreign (non-U.S.) banks

Funds in the form of deposits that a depository institution
receives from brokers or dealers on behalf of individual
depositors. For details on reporting, see the memorandum
section on item F.1, All Time Deposits with Balances of
$100,000 or More, or item BB.1, Total Nonpersonal
Savings and Time Deposits.

A draft that is issued in connection with the shipment of
goods. If the commodity or bill of lading 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 (for example, a 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 ensuring payment of shipped goods at
the time that the goods are released.

Brokers security draft

Credit balance

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.

A liability booked by the reporting institution as a credit
balance or maintained by the reporting institution and
owed to a third party that is incidental to, or that arises
from, the exercise of banking powers. Also include any

See U.S. branches and agencies of foreign (non-U.S.)
banks.
Brokered deposits

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Branches and Agencies

credit balance that results from customers’ overpayments
of account balances on credit cards and related plans.
Custodial inventory program
Pursuant to the Federal Reserve Currency Recirculation
Policy, the Federal Reserve Banks have created a Custodial Inventory Program to help offset the opportunity
costs associated with holding additional currency in
reporting institutions’ vaults to facilitate its recirculation.
By participating in this program, the reporting institution
will be allowed to transfer currency to the Federal
Reserve Bank’s books but will continue to physically
hold the currency within its secured facility.
For more information about the policy, please visit
www.frbservices.org/operations/currency/
custodial_inventory_program.html.

A demand deposit is a transaction account.
Deposit notes
A debt security issued by a depository institution with the
term ‘‘deposit’’ included on the note.
Depository institution
Any of the following institutions that are empowered to
perform a banking business and that perform this business as a substantial part of their operations and are
federally insured or are eligible to apply to become
federally insured:
1. U.S. commercial banks
A. national banks;
B. state-chartered commercial banks; and

Dealer reserve or dealer differential account
An account that arises when a merchant or dealer (such
as a home-improvement contractor, auto dealer, or mobile
home dealer) enters into an arrangement with the reporting institution to furnish the dealer with financing of
installment loans by selling the loans to the reporting
institution at discount. The proceeds of the sale that the
dealer receives from the institution represent only a
portion (such as 90 percent) of the amount due on the
installment loans. Typical accounting entries by the
reporting institution are a debit to ‘‘loans’’ for the
principal amount due on the loans purchased, a credit to
the dealer’s ‘‘demand deposit’’ account for 90 percent of
the amount, and a credit to a ‘‘dealer reserve’’ or a
‘‘dealer differential’’ account for the remaining 10 percent. Because the dealer does not have access to the funds
credited to the reporting institution’s dealer reserve or
differential account and may not make withdrawals from
the account, no deposit liability arises until such time as
the reporting institution becomes liable to the dealer for
any portion of the funds.
Demand deposit
A deposit described in section 1, subsection G.1, or a
primary obligation described in section 1, subsection
G.3, that is payable immediately on demand, or that is
issued with an original maturity or required notice period
of less than seven days, or that represents funds for which
the depository institution does not reserve the right to
require at least seven days’ written notice of an intended
withdrawal.
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C. trust companies that perform a commercial
banking business;
2. U.S. branches and agencies of foreign (non-U.S.)
banks;
3. banking Edge Act and agreement corporations;
4. savings banks (mutual and stock);
5. building or savings and loan associations;
6. cooperative banks;
7. homestead associations;
8. credit unions; and
9. industrial banks (including thrift and loan companies and industrial savings banks) when chartered
as a bank under state law.
The term ‘‘depository institution’’ excludes the following:
1. private banks or unincorporated banking institutions organized as partnerships or proprietorships
and authorized to perform commercial banking
business;
2. a trust company whose principal function is to
accept and execute trust arrangements or act in a
purely fiduciary capacity;
3. a cash depository, cooperative exchange, or similar
depository organization whose principal function
is to serve as a safe deposit institution;
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4. a finance company, whether or not empowered to
receive deposits or sell certificates of deposit;
5. U.S. government agencies and instrumentalities,
such as the Federal Home Loan Banks, Federal
Intermediate Credit Banks, Federal Land Banks,
Banks for Cooperatives, the Federal Home Loan
Mortgage Corporation, Federal Deposit Insurance
Corporation, Federal National Mortgage Association, Federal Financing Bank, National Credit
Union Share Insurance Fund, and NCUA Central
Liquidity Facility;
6. Export-Import Bank of the United States;
7. Government Development Bank of Puerto Rico;
8. Minbanc Capital Corporation; and
9. Federal Reserve Banks.

Excess balance account (EBA)
An account at a Reserve Bank established by one or more
eligible institutions and in which only excess balances of
the participating eligible institution(s) may at any time be
maintained.
Exempt entities
U.S. offices of the following
1. U.S. commercial banks and trust companies conducting a commercial banking business and their
majority-owned subsidiaries;
2. U.S. branches or agencies of foreign (non-U.S.)
banks (that is, banks organized under foreign (nonU.S.) law);
3. banking Edge Act and agreement corporations;
4. mutual and stock savings banks;

Deposits
See Regulation D, section 204.2(a)(1).

5. building or savings and loan associations and
homestead associations;
6. cooperative banks;

Draft

7. industrial banks;

An instrument signed by the drawer ordering the payment of a certain sum of money on demand to the order
of a specified person or bearer.
Due bill
An instrument representing an obligation or promise to
sell or deliver at some future date securities, foreign
exchange, and so on. Due bills generally are issued in
lieu of the item to be sold or delivered at times when the
item is in short supply or otherwise currently unavailable.
The issuance of due bills may give rise to a reservable
deposit (see section 1, subsection G.2.i, Primary Obligations).

8. credit unions (including corporate central credit
unions);
9. the U.S. government and its agencies and instrumentalities, such as the Federal Reserve Banks,
Federal Home Loan Banks, Federal Intermediate
Credit Banks, Federal Land Banks, Banks for
Cooperatives, the Federal Home Loan Mortgage
Corporation, Federal Deposit Insurance Corporation, Federal National Mortgage Association, Federal Financing Bank, National Credit Union Share
Insurance Fund, and NCUA Central Liquidity
Facility;
10. Export-Import Bank of the United States;

Edge Act and agreement corporations

11. Government Development Bank of Puerto Rico;

An Edge Act corporation is a corporation chartered by
the Federal Reserve Board under section 25(a) of the
Federal Reserve Act to engage in international banking
and financial operations.

12. Minbanc Capital Corporation;

An agreement corporation is a state-chartered corporation that enters into a written agreement with the Federal
Reserve Board to enter into those activities that are
permitted to Edge Act corporations (which are chartered
by the Federal Reserve Board).
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13. securities dealers, but only when the borrowing (a)
has a maturity of one day, (b) is in immediately
available funds, and (c) is in connection with the
clearance of securities;
14. the U.S. Treasury;
15. New York State investment companies (chartered
under Article XII of the New York State Banking
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Branches and Agencies

Code) that perform a banking business and that
are majority owned by one or more non-U.S.
banks; and
16. investment companies or trust companies whose
entire beneficial interest is held exclusively by one
or more depository institutions.
Exemption amount
Section 411 of the Garn-St Germain Depository Institutions Act of 1982 subjects the first $2.0 million of a
depository institution’s reservable liabilities to a reserve
requirement of 0 percent. The amount of reservable
liabilities subject to the 0 percent reserve requirement
(the exemption amount) is adjusted each year for the next
succeeding calendar year by 80 percent of the increase in
total reservable liabilities of all depository institutions,
measured on an annual basis as of June 30. (No corresponding adjustment is made in the event of a decrease in
total reservable liabilities of all depository institutions.)
The revised exemption amount is to be effective for the
following calendar year. The exemption amount is used
in two ways. First, it is used for all FR 2900 reporters in
the reserve requirement calculations during the calendar
year (January through December) following the announcement of the revised amount. Second, for those depository
institutions whose deposits reporting status is based on
the level of their net transaction accounts, it is used to
determine who must file the FR 2900 and who is eligible
for reduced reporting for the 12-month period beginning
in the September following the announcement of the
revised exemption amount each year.
The current exemption amount can be found in chapter V
of the Reserve Maintenance Manual.
Federal public funds
Funds of the U.S. government and funds the deposit of
which is subject to the control and regulation of the
United States or any of its officers, agents, or employees.

bank or banker in one country on a bank or banker in
another for the purpose of raising funds. Finance bills are
not drawn against the shipment of goods. They are
sometimes drawn against balances maintained with the
drawee bank but more often are not, being in the nature
of an advance from a bank in one country to a bank in
another. The drawee bank accepts a finance bill for a
fixed commission but only, of course, when the drawing
bank has a high credit rating.
Foreign (non-U.S.) bank
A bank organized under foreign (non-U.S.) law. Foreign
(non-U.S.) banks include commercial banks, merchant
banks, discount houses, and similar depository institutions, including nationalized banks that perform essentially a banking business and do not perform, to any
significant extent, official functions of foreign (non-U.S.)
governments.
Foreign (non-U.S.) governments
Central, national, state, provincial, and local governments in foreign (non-U.S.) countries (including their
ministries, departments, and agencies) that perform functions similar to those performed in the United States by
government entities.
For purposes of Regulation D, foreign (non-U.S.) governments also include foreign (non-U.S.) official banking
institutions.
Foreign (non-U.S.) national government
A central or national government that performs functions
similar to those performed by the federal government of
the United States. State, provincial, and local governments are not included as foreign (non-U.S.) national
governments.

Federal Reserve draft

Foreign (non-U.S.) official banking institutions

A draft issued by a depository institution that is drawn on
its account at a Federal Reserve Bank and that is payable
by the Federal Reserve Bank.

Central banks, nationalized banks, and other banking
institutions in foreign (non-U.S.) countries that are owned
by central governments and that have as a significant part
of their function activities similar to those of a treasury,
central bank, development bank, exchange control office,
stabilization fund, monetary agency, currency board, and
so on.

Finance bills
A bill of exchange not accompanied by shipping documents, usually of 60 days tenor or over, and drawn by a
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Hypothecated deposits
Funds received by the reporting institution that are
recorded as deposits generally in accordance with state
law and that reflect periodic payments by a borrower on
an installment loan. These payments are accumulated
until the sum of the payments equals the entire amount of
principal and interest on the loan, at which time the loan
is considered paid in full. The amounts received by the
reporting institution are not immediately used to reduce
the unpaid balance of the note but are assigned to the
reporting institution and cannot be reached by the borrower or the borrower’s creditors. Hypothecated deposits
are not to be reported as reservable deposits.
Deposits that simply serve as collateral for loans are not
considered hypothecated deposits for purposes of the FR
2900 report.
Immediately available funds
Funds that the reporting institution can invest or dispose
of on the same business day that the transaction giving
rise to receipt of the funds is executed. Such funds are
sometimes referred to as ‘‘collected,’’ ‘‘actually collected,’’ ‘‘finally collected,’’ or ‘‘good’’ funds.
International institution
(1) Any international entity of which the United States is
a member, such as the International Bank for Reconstruction and Development (World Bank), International Monetary Fund, Inter-American Development Bank, and the
United Nations; and (2) other foreign, international, or
supranational entities of which the United States is not a
member, such as the African Development Bank, Central
Treaty Organization, European Atomic Energy Community, European Economic Community, European Development Fund, Caribbean Development Bank, Bank for
International Settlements, and so on. (See Regulation D
12 CFR § 204.125.)

the subsequent lending of the proceeds to a reporting
institution with the condition that these funds be used to
make specified types of residential real estate loans. The
funds advanced to institutions under the program are
evidenced by a loan agreement and a promissory note
issued by the institution to the housing authority.
Majority-owned subsidiary
A U.S. subsidiary (except for an Edge Act and agreement
corporation) of which a reporting institution owns 50
percent or more.
MMDA (Money market deposit account)
See savings deposit.
Natural person
A natural person for purposes of the FR 2900 report is an
individual or a sole proprietorship. The term does not
mean a corporation owned by an individual, a partnership, or other association.
Net transaction accounts
Total Transaction Accounts (item A.3) minus Demand
Balances Due from Depository Institutions in the U.S.
(item B.1) minus Cash Items in Process of Collection
(item B.2) plus Ineligible Acceptances and Obligations
Issued by Affiliates Maturing in Less Than Seven Days
(item AA.1). Note that if the first three terms produce a
result that is less than zero, that result should be set to
zero before proceeding.
NINOW (Non-interest-bearing negotiable order of
withdrawal) account
A deposit or account on which no interest or dividend is
paid and from which withdrawals are made by negotiable
or transferable instruments for the purpose of making
payments to third parties.

Letter of credit

Noncash item

A letter of advice, from a depository institution to its
agent or correspondent, requesting that a sum of money
be made available to the person named in the letter under
specified conditions.

An item that would otherwise fit the definition of cash
items except that it requires special handling as classified
by the Federal Reserve System’s Operating Circulars.

Loan-to-lender program
A loan-to-lender program involves the issuance of taxexempt bonds by a state or local housing authority and
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Examples of items requiring special handling are as
follows:
• items with a passbook, certificate, or other document
attached;
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Branches and Agencies

• items accompanied by special instructions (such as a
request of special advise of payment or dishonor);
and
• items that have not been preprinted or post-encoded
in magnetic ink with the routing number of the
paying bank.

at all depository institutions. Consistent with rules governing indexing the exemption amount, if total transaction accounts, savings deposits, and small time deposits
decline in that period, the Board will make no downward
adjustment through the indexing process. On occasion,
the Federal Reserve Board has increased the deposit
cutoff beyond its indexed level.

Nonconsolidated affiliate
An entity that
• is controlled by the shareholders of the reporting
institution; that is, control is held directly or indirectly through stock ownership, or in any other
manner, by (1) shareholders of the reporting institution who own or control either a majority of the
shares of such depository institution or more than 50
percent of the number of shares voted for the
election of directors of the reporting institution at the
preceding election, or by (2) trustees for the benefit
of the shareholders of any such depository institution; or
• has a majority of its directors on the board of
directors of the reporting institution; that is, the
majority of its directors, trustees, or other persons
exercising similar functions also are directors of any
other depository institution; or
• owns or controls the reporting institution; that is,
owns or controls directly or indirectly either a
majority of the shares of capital stock of the reporting institution or more than 50 percent of the number
of shares voted for the election of directors, trustees,
or other persons exercising similar functions of the
reporting institution at the preceding election or
controls in any manner the election of a majority of
directors, trustees, or other persons exercising similar functions of the reporting institution, or for the
benefit of whose shareholders or members all or
substantially all the capital stock of a depository
institution is held by trustees.
Non-exempt deposit cutoff
This cutoff is used to determine whether depository
institutions report on the FR 2900 weekly or quarterly.
The Federal Reserve Board determines the deposit cutoff.
The Board also indexes the cutoff annually to grow at 80
percent of the June-to-June growth rate of total transaction accounts, savings deposits, and small time deposits
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Non-exempt entity
A non-exempt entity is any one of the following:
1. individuals, partnerships, and corporations, wherever located;
2. security dealers wherever located, when the borrowing (a) has a maturity longer than one day, (b)
is not in immediately available funds, and (c) is not
in connection with the clearance of securities;
2. state and local governments in the United States
and their political subdivisions;
4. a depository institution’s parent holding company
if the holding company is not a bank;
5. a depository institution’s parent holding company’s
nonbanking subsidiaries;
6. a depository institution’s nonbanking subsidiaries;
and
7. international institutions.
Nonpersonal savings deposit
A savings deposit that is transferable or that represents
funds deposited to the credit of, or in which any beneficial interest is held by, a depositor that is not a natural
person.
Nonpersonal time deposit
Nonpersonal time deposit means
1. a time deposit representing funds deposited to the
credit of, or in which any beneficial interest is held
by, a depositor that is not a natural person;
2. a time deposit that is transferable and held by a
natural person; or
3. a time deposit issued to and held by a natural
person that does not contain on its face a statement
that the deposit is not transferable.
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Non-U.S.
Any geographic location, including the Commonwealth
of Puerto Rico and U.S. territories and possessions,
outside the 50 states of the United States and the District
of Columbia.
Non-U.S. bank
See foreign (non-U.S.) bank.

B. mutual insurance companies (§ 501(c)(15));
C. crop financing organizations (§ 501(c)(16));
D. organizations created to function as part of a
qualified group legal services plan (§
501(c)(20)); and
E. farmers’ cooperatives (§ 521).

NOW account
An interest-bearing deposit or account (1) 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 (2) that can be
withdrawn or transferred to third parties by issuance of a
negotiable or transferable instrument.
A NOW account is a transaction account. NOW accounts
are authorized by federal law and are limited to accounts
held by
1. individuals or sole proprietorships;
2. governmental units, including the federal government and its agencies and instrumentalities; 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; or
3. an organization that is operated primarily for religious, philanthropic, charitable, educational, political, or other similar purposes and that is not
operated for profit (under Federal Reserve Board
rules, 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 (26 U.S.C. (I.R.C.1954) §
501(c)(3) through (13), (19) and § 527 through §
528), such as church organizations; professional
associations; trade associations; labor unions; fraternities, sororities, and similar social organizations; and nonprofit recreational clubs). Please
note, however, that the following types of organizations as described in the cited provisions of the
Internal Revenue Code are among those not eligible to maintain NOW accounts:
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A. credit unions and other mutual depository
institutions (§ 501(c)(14));

September 2015

Original maturity
The length of time from the date of issue to the earliest
date that the funds may be withdrawn at the option of the
depositor under the terms of the deposit agreement.
Where a deposit is withdrawable on a specified date, the
maturity is determined by the length of time between the
issue date and the specified maturity date. Where a
deposit has no specified maturity but can be withdrawn
after written notice is provided to the reporting institution, the maturity is determined by the length of the
required notice period. Roll-over certificates of deposit,
multiple maturity deposits, alternative maturity deposits,
or deposits providing other maturity combinations that
permit a depositor the option of withdrawing the deposit
at different dates or periods of time should be reported on
the basis of the earliest allowable withdrawal date.
Payable-through drafts
A negotiable demand draft that can be sent for payment
to an institution that is not the institution on which the
draft is drawn. The draft may be drawn on a depository
institution, or it may be drawn on a nondepository
institution.
Personal savings deposit
A savings deposit that is not transferable and that represents funds deposited to the credit of, or in which the
entire beneficial interest is held by, a depositor who is a
natural person.
Personal time deposit
A time deposit that represents funds deposited to the
credit of, or in which the entire beneficial interest is held
by, a natural person, including a time deposit that is
issued to or held by a natural person and that contains a
statement on its face that it is not transferable.
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Preauthorized transfer
See telephone and preauthorized transfer accounts.
Reduced reporting limit
The amount of total transaction accounts, savings deposits, and small time deposits that if equaled or exceeded at
a depository institution, requires the institution to report
on the FR 2900 weekly, regardless of the level of their net
transactions accounts.
Any institution with total transaction accounts, savings
deposits, and small time deposits greater than or equal to
the reduced reporting limit is required to report an FR
2900 weekly, regardless of the level of their net transaction accounts. Initially set at $1 billion in 2003, the
reduced reporting limit is indexed to 80 percent of the
June 30-to-June 30 growth in total transaction accounts,
savings deposits, and small time deposits at all depository institutions. As with current indexation procedures,
if total transaction accounts, savings deposits, and small
time deposits decline in that period, the reduced reporting
limit would remain unchanged. The revised reduced
reporting limit is effective for the 12-month period
beginning in the September following the announcement
of the revised reduced reporting limit each year.
Remote service unit (RSU)
RSU includes, without limitation, point-of-service terminals, merchant-operated terminals, cash-dispensing
machines, and automated teller machines.
Repurchase agreement
An arrangement involving the sale of a security or other
asset under a prearranged agreement to repurchase the
same or similar security or asset at a later date.
Returned item
A check or draft that is returned by a drawee institution to
the presenting institution because of certain irregularities
that, if waived, might result in a loss to the drawee
institution. The item is returned so that the presenting
institution may correct the defect or take such other
action as may be necessary, such as charging the depositor’s account.
Savings deposit
A savings deposit is a deposit described in section 1,
subsection G.1, or a primary obligation described in
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section 1, subsection G.2, with respect to which the
depositor is not required by the deposit contract, but may
at any time be required by the depository institution, to
give written notice of an intended withdrawal not less
than seven days before the withdrawal is made, and that
is not payable on a specified date or at the expiration of a
specified time after the date of deposit.
The term ‘‘savings deposit’’ also means a deposit or
account, such as an account commonly known as a
passbook savings account, a statement savings account,
or a money market deposit account (MMDA), that otherwise meets the requirements of the preceding paragraph
and from which, 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 and withdrawals, or a combination of such
transfers and withdrawals, 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 third party by
means of a preauthorized or automatic transfer; a telephonic (including data transmission) agreement, order, or
instruction; or a check, draft, debit card, or similar order
made by the depositor and payable to third parties.
Share draft
A share draft is a negotiable or nonnegotiable draft
signed by the account holder and directing the credit
union on which the draft is drawn to pay a certain sum of
money on demand to the order of a specified person or
bearer. Such drafts are used to withdraw funds from a
share draft account.
A share draft account is a share account from which
funds may be withdrawn or transferred to third parties by
issuance of a negotiable or transferable instrument or
other order.
Small time deposit
A time deposit issued in an amount less than $100,000.
Suspense accounts
Temporary holding accounts in which items are carried
until they can be identified and their disposition to the
proper asset or liability account can be made.
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Telephone and preauthorized transfer accounts

Teller’s check

Telephone and preauthorized transfer accounts that are
regarded as transaction accounts are deposits or accounts,
other than savings deposits, (1) in which the entire
beneficial interest is held by a party eligible to hold a
NOW account, (2) on which the reporting institution has
reserved the right to require at least seven days’ written
notice prior to withdrawals 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 a third
party by means of a preauthorized transfer; a telephonic
(including data transmission) agreement, order, or instruction; or a check, draft, debit card, or similar order made
by the depositor and payable to third parties. An account
that permits or authorizes more than six such withdrawals
in a month is a transaction account whether or not more
than six such withdrawals actually are made in a month.
(A month is a calendar month or any period approximating a month that is at least four weeks long, such as a
statement cycle.)

A check or draft drawn by a depository institution on
another depository institution, a Federal Reserve Bank,
or a Federal Home Loan Bank or payable at or through a
depository institution, a Federal Reserve Bank, or a
Federal Home Loan Bank.

A preauthorized transfer includes any arrangement by the
reporting institution to pay a third party from the account
of a depositor upon written or oral instruction (including
an order received through an automated clearing house,
or ACH), or any arrangement by the reporting institution
to pay a third party from the account of the depositor at a
predetermined time or on a fixed schedule.
Telephone and preauthorized transfers also include 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 the
purpose of making payments or transfers to third persons
or others or to a deposit account of the depositor.
Also include in this item the balance of deposits or
accounts that otherwise meet the definition of time
deposits but from which payments may be made to third
parties by means of a debit card (including POS debits),
an ATM, a RSU, or other electronic device, regardless of
the number of payments made.
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September 2015

Teller’s checks do not include checks or drafts sold by a
bank acting in an agency capacity where that capacity is
clearly stated on the face of the check or checks, or drafts
drawn without recourse where permitted by state law.
Time certificate of deposit
A deposit described in section 1, subsection G.1, or a
primary obligation described in section 1, subsection
G.2, that is payable on a specified date, after a specified
period of time from the date of deposit, or after a
specified notice period, which may be not less than seven
days from the date of deposit.
A time deposit may be represented by a transferable or
nontransferable, or a negotiable or nonnegotiable, certificate, instrument, passbook, or statement. A nonnegotiable time deposit is distinguished from a nontransferable time deposit in that the transferee of a nonnegotiable
time deposit would not be a holder in due course and
would not have the ability to cut off certain defenses of
an obligor even though an exchange for value can be
made. A nontransferable time deposit allows no exchange
for value to be made.
Time deposit
A deposit described in section 1, subsection G.1, or a
primary obligation described in section 1, subsection
G.2, from which the depositor does not have a right and
is not permitted to make withdrawals from 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. A 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; otherwise,
it becomes a demand deposit.
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Time deposit open account
A deposit other than a time certificate of deposit, with
respect to 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 the date of maturity,
which shall be not less than seven days after the date of
deposit, or prior to the expiration of the period of notice,
which must be given by the depositor in writing not less
than seven days in advance of withdrawal.
Transferable
Any deposit that does not contain a specific statement on
the certificate, instrument, passbook, statement, or other
form representing the deposit that the deposit is not
transferable. A deposit that contains a specific statement
that it is not transferable is not regarded as transferable
even if the following transactions can be effected: a
pledge as collateral for a loan; a transaction that occurs
due to circumstances arising from death, incompetency,
marriage, divorce, attachment, or otherwise by operation
of law; or a transfer on the books or records of the
institution.
Unposted credits
Items that have been received for deposit and that are in
process of collection but that have not been posted to
individual or general ledger deposit accounts. These
credits should be reported as deposits.
Unposted debits
Cash items drawn on the reporting institution that have
been paid or credited by the institution and that are

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chargeable but that have not been charged against deposits as of the close of business. These items should be
reported as ‘‘cash items in process of collection’’ until
they have been charged to either individual or general
ledger deposit accounts.
U.S. (United States)
The 50 states of the United States and the District of
Columbia, and military facilities, wherever located.
U.S. branches and agencies of foreign (non-U.S.)
banks
Branches and agencies of foreign (non-U.S.) banks that
operate as a U.S. office of their foreign (non-U.S.) parent
bank. The branch or agency may be licensed by the U.S.
government or by a state of the United States. As defined
by section 1 of the International Banking Act of 1978 (12
U.S.C. § 3101), a branch means any office or any place of
business of a foreign (non-U.S.) bank located in any state
of the United States at which deposits are received; an
agency means any office or any place of business of a
foreign (non-U.S.) bank located in any state of the United
States at which credit balances are maintained incidental
to, or arising out of, the exercise of banking powers,
checks are paid, or money is lent but at which deposits
may not be accepted from citizens or residents of the
United States.
U.S. Treasury general account
A Treasury account maintained at the reporting institution to which government officers deposit funds obtained
in connection with special collections, such as customs
fees or other tax collections.

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FR 2900
September 2015