Emergency Economic Stabilization Act Follow Up 
IBA’s Nov. 3 seminar— with support from Krieg DeVault LLP—was a success. Approximately 40 participants attended to learn about available programs offered through the Act. For more information about the repercussions of the Emergency Economic Stabilization Act of 2008, the Independent Community Bankers of America has devoted an area to its website called “Economic Recovery Central,” and the American Bankers Association has a website area called, “Financial Crisis & Resolution 2008.”
    ICBA FAQs—In response to feedback from community banks, ICBA is providing answers to frequently asked questions about the Treasury Department’s Capital Purchase Program and the FDIC’s Temporary Liquidity Guarantee Program. The ICBA document offers a reference on the programs specifically for community banks and their customers. 
    ABA Treasury Report—The Department of the Treasury has made official what the agency told ABA in a recent meeting. The Nov. 14 application deadline for participation in the agency’s capital purchase program applies solely to eligible publicly traded institutions, Treasury has announced. The remaining institutions—including private, Subchapter S and mutual institutions—will receive their own term sheets and separate application deadlines in stages.

Industry Survey Provides Insights on TARP 
  Lack of implementation clarity, warrant provisions and uncertain shareholder perceptions are among the factors that would affect financial institutions’ willingness to participate in the Troubled Asset Relief Program component that gives the Department of the Treasury the authority to purchase illiquid assets, according to a survey released by the Securities Industry and Financial Markets Association, American Securitization Forum, American Bankers Association, Mortgage Bankers Association and Commercial Mortgage Securities Association. 
    The survey found, among other things, that large firms are more likely to participate in TARP than smaller ones; institutions would prioritize the purchase of subprime and Alt-A residential real estate, followed by commercial real estate; and respondents believe whole loans and securities should get about equal prioritization. Read more. Read the survey.

News From AABD
The American Association of Bank Directors (AABD) has requested Treasury Secretary Paulson to delete a provision in the Investment Agreement that all publicly traded institutions must execute prior to participating in Treasury’s Capital Purchase Program. The objectionable provision in Section 5.3 of the Agreement would allow Congress, whether this year or later, to unilaterally and retroactively impose additional conditions or vary the terms of the Agreement. Read letter. 

News From FDIC 
Krieg DeVault LLP has contacted the IBA about the following Federal Deposit Insurance Corp. information:

    1. FDIC extends opt-out deadline—The Federal Deposit Insurance Corporation has extended the opt-out deadline for participation in its Temporary Liquidity Guarantee Program to Dec. 5, 2008. The original deadline was Nov. 12. Any eligible entity that opts out of the Program on or before Dec. 5 will not pay any assessment under the Program. Any eligible entity that does not opt out on or before Dec. 5 will be required to pay related fees. Read more.

    2. Clarification of FDIC coverage under the Transaction Account Guarantee Program—FDIC suggests using the following process when determining coverage for customers that have both interest-bearing and noninterest-bearing transaction accounts:

·     Separate the interest-bearing balances from the noninterest-bearing transaction account balances.

·     Treat the interest-bearing balances as in the past (aggregate all accounts with the same ownership status) to determine coverage up to the temporary amount of $250,000.

·     Treat noninterest-bearing transaction account balances as an exception, because they will be fully insured.

    For example a customer has five accounts (all under the same ownership) as follows: three accounts are interest-bearing with total balances of $300,000, and two accounts are noninterest-bearing transaction accounts with total balances of $500,000.  The interest-bearing accounts will be insured for a total of $250,000 and the noninterest-bearing transaction accounts will be insured for $500,000.

    3. Free FDIC seminar for bank employees on how to calculate deposit insurance coverage—FDIC will be hosting four additional deposit insurance seminars covering the recent insurance coverage rule changes and will guide bank employees through the process of determining a customer’s deposit insurance coverage. The seminar dates are Nov. 14, Dec. 5, Dec. 10 and Dec. 19. Each seminar presentation will be approximately 90 minutes in length, followed by questions and answers. Registration must be completed three days before each seminar and are made through the FDIC website. Read more. 

Bank-Owned Title Insurance Agency Opens in Columbus
Title Center of Indiana, LLC has officially opened its doors at 331 Franklin Street , Columbus . This full-service title agency is owned by twelve IBA-member banks, the IBA Insurance Agency and Investors Title Insurance Company. Investors Title also serves as underwriter and provides professional management support. The agency will not only serve the needs of the owner banks, but will also compete for other institutions' business based on competitive pricing and superior customer service. For more information on Title Center of Indiana, or to learn more about bank-owned agencies, please contact Paul Freeman.