Commissioned Examiner Test
Executive Officer
A person who participates or has authority to participate in major policy making functions of the company. Also, the chairman of the board, the president, every vice president, the cashier, the secretary, and treasurer of a company or bank
10
A principal shareholder is a person that directly or indirectly, or acting through or in concert with one or more persons, owns, controls, or has the power to vote more than ____ percent of any class of voting securities fo a member bank or company
5
A registered public accounting firm would not be considered independent of a public company audit client if the lead audit partner having primary responsibility for the audit, or the concurring audit partner responsible for reviewing the audit, has performed in this capacity for the audit client for______ consecutive years
Irrevocable Trust
A trust that cannot be revoked by the person creating it, except with approval of the beneficiary.
Indenture
A written agreement specifying the terms and conditions for issuing bonds, stating the form of the bond being offered for sale, interest to be paid, the maturity date, call provisions and protective covenants, if any, collateral pledged, the repayment schedule, and other terms (i.e. for a corporate issue bond)
30
File a SAR within ____ days if a suspect can be identified
60
File a SAR within ____ days if a suspect cannot be identified
10
For Reg O a person is presumed to have control, including the power to exercise a controlling influence over the management or policies of a company or bank if they directly or indirectly own, control, or has the power to vote more than ____ percent of any class of voting securities and no other person can vote a greater percentage of that class of voting securities
1 billion
For each insured depository institution with total assets of ____________ or more at the beginning of the institution's fiscal year, the independent public accountant who audits the institution's financial statements shall examine, attest to, and report separately on the assertion of management concerning the effectiveness of the institution's internal control structure and procedures for financial reporting.
Legal Lending Limit
Total indebtedness to any state bank of any person to 20% of the capital base of the bank
Reg DD
Truth in Savings Reg
$10000
U.S. financial institutions must file a CTR, Fin Cen Form 104, for each currency transaction over __________
60
Within ____ days after receiving a capital restoration plan under this subpart, the FDIC shall provide written notice to the bank of whether the plan has been approved.
acceptable alternatives to an annual audit of an institution's financial statements
a balance sheet audit and an examination of management's assertion on the effectiveness of the institution's internal control over financial reporting.
6 Months
when SDB become delinquent
Annually
Security officer should report to the Board how often?
100
Supervisory LTV limits should not exceed ____ percent of total capital
Double Leverage
occurs when borrowings by the holding company are used to finance the holding company's equity investment in its subsidiaries
Subsidiary
25 percent or more of voting shares, election of directors is controlled by BHC, BHC has controlling influence over policies
Well Capitalized
> 10%, >8, >6.5, >5
30
A C&D shall become effective at the expiration of ___ days after the service of such order
Well-Capitalized
A _____________________ insured depository institution may solicit and accept, renew or roll over any brokered deposit without restriction by this section.
Adequately capitalized
A _________________________insured depository institution may not accept, renew or roll over any brokered deposit unless it has applied for and been granted a waiver of this prohibition by the FDIC in accordance with the provisions of this section.
3
A bank must keep Reg U forms for ____ years once the debt is extinguished.
Employee Retirement Income Security Act of 1974 (ERISA)
A federal law governing the management of employee benefits plans. The act's regulatory reach extends to most aspects of employee benefit trust administration.
45
A new capital plan that is required to be revised must be submitted within ____ days of receiving such notice to the appropriate FDIC regional director.
Executor
A person or institution named in a will to settle the decedent's estate and distribute the assets of a decedent.
Decedent
A person who has died.
90
ASBD rules and Regs Administrative order #002 requires all bank holding companies owning state chartered banks to submit certain FRB reports, or F.R. Y reports, to the Bank Commissioner. The F.R. Y-6 report is an annual report which must be submitted by all registered holding companies within ____ days following the calendar year end.
Quarterly
ASBD rules and Regs Administrative order #002 requires all bank holding companies owning state chartered banks to submit certain FRB reports, or F.R. Y reports, to the Bank Commissioner. The F.R. Y-8 report is the report of bank holding company intercompany transactions, or transactions with affiliates. This report is filed ___________ only is the IDI has a Section 23A transaction with affiliate
Examples of Electronic Funds Transfer
ATM withdrawals, point of sale, and online purchases
Yes
According to Reg W, a member bank may not engage in any covered transaction, including any transaction exempt under this regulation, unless the transaction is on terms and conditions that are consistent with safe and sound banking practices.
5
According to regulation Y prior notice is required when a bank holding company acquires _____ percent of more of the outstanding shares of any class of voting securities of a bank of bank holding company.
payment of capital distributions and management fees
All banks are subject to the restrictions contained in section 38(d) of the FDI Act on what?
$250M
All complex 1--to--4 family residential property appraisals rendered in connection with federally related transactions shall require a state certified appraiser if the transaction value is _______ or more.
$250M
All non residential transactions having a transaction value of _______ or more, other than those involving appraisals of 1 to 4 family residential properties shall require a state certified appraiser
1 million
All transactions of _______ or more require a state certified appraiser
Tangible Economic Benefit Rule
An extension of credit is considered made to an insider to the extent that the proceeds are transferred to the insider or are used for the benefit of the insider
75
Any adequately capitalized insured depository institution that has been granted a waiver to accept, renew or roll over a brokered deposit may not pay an effective yield on any such deposit which, at the time that such deposit is accepted, renewed or rolled over, exceeds by more than ____ basis points:
Deposit broker
Any person engaged in the business of placing deposits, or facilitating the placement of deposits, of third parties with insured depository institutions, or the business of placing deposits with insured depository institutions for the purpose of selling interests in those deposits to third parties; and o An agent or trustee who establishes a deposit account to facilitate a business arrangement with an insured depository institution to use the proceeds of the account to fund a prearranged loan.
$10.000M
Assets of _______ or less are exepmted from Regulation C (HMDA)
3
Banks must provide a Good Faith Estimate within ___ days.
Informal Enforcement Actions
Board Resolution
Formal Enforcement Action
C&D and MOU
0%
CDs with original maturities or 1.5 years or less are subject ____ percent reserve requirement
5 years
CTRs and SARs must be retained for ______
15 days
CTRs must be filed within ____ days
No
Can a bank lend funds to purchase its parent company's stock?
FDI Act 8B
Cease and Desist proceedings
30
Commissioner must be at least ___ years old
90
Continuation of SAR up to ____ days
25
Control of a company or bank means that person directly or indirectly owns, controls, or has the power to vote ____ percent or more of any class of voting securities of the company or bank
HUD1
Details all itemized charges imposed on the borrower and seller in connection with settlements
5% or $500M
Each federally insured bank is required to include in its quarterly statement of income and condition the total amount of credit extensions to executive officers and principal shareholders, and the number of such individuals who have received loans equaling ___ percent of the bank's equity capital or _____ , whichever is less.
Federal Reserve Act
Establishes the Federal Reserve System as the central bank of the United States to provide the nation with a safer, more flexible, and more stable monetary and financial system
500 million
FDIC-supervised banks that have less than ____________ in total assets as of the beginning of their fiscal year are not subject to the annual audit and reporting requirements of Section 36 of the FDI Act. Banks in this size range that are not public companies, or subsidiaries of public companies, generally do not fall within the scope of the Sarbanes-Oxley Act and the SEC's implementing regulations.
Guardianship
Guardian of a minor or a mental incompetent, caring for the property and, in rare cases, the person.
Annually
How often should CTR exemptions be reviewed?
$100M
If a loan secured by margin securities is more than ______, the customer must fill out a Reg U form.
85
LTV percent for 1-4 family residential construction
80
LTV percent for Commercial, multifamily, and other non-residential construction
75
LTV percent for Land Development
65
LTV percent for Raw Land
85
LTV percent for improved property
90
LTV percent for owner occupied 1-4 family and home equity
2 years
Retention period for HUD1
25,000 or 5%
No member bank may extend credit (which term includes granting a line of credit) to any insider of the bank or insider of its affiliates in an amount that, when aggregated with the amount of all other extensions of credit to that person and to all related interests of that person, exceeds the higher of $_______ or ___ percent of the member bank's unimpaired capital and unimpaired surplus,
6
Number of banking Board members
Reg Z
Prohibits specific acts and practices in connection with an extension of credit secured by a consumers dwelling. The rule prohibits a creditor or any other person from paying, directly of indirectly, compensation to a mortgage broker or any other loan originator that is based on a mortgage transaction's terms or conditions, except the amount of credit extended.
• Restricting payment of capital distributions and management fees; • Requiring that the FDIC monitor the condition of the bank; • Requiring submission of a capital restoration plan within the schedule established in this subpart; • Restricting the growth of the bank's assets; • Requiring prior approval of certain expansion proposals.
Provisions applicable to undercapitalized, significantly undercapitalized, and critically undercapitalized banks.
FDI ACt 8E
Removal and Prohibition authority
FDI Act 8A
Termination of status as insured depository institution
25
The Reg O lending limit is_____ percent of the bank's unimpaired capital and surplus in the case of loans that are fully secured by readily marketable collateral having a market value
15
The Reg O lending limit is_____ percent of the bank's unimpaired capital and surplus in the case of loans that are not fully secured
Quarterly
The Supervisory LTV aggregate amount should be reported to the Board at least ________
90
The law requires an insured depository institution to give notice of any proposed branch closing to the appropriate federal banking agency no later than _____ days prior to the date of the proposed branch closing.
50
The maximum LTV of margin stock is ____ percent of its current market value
Chinese Wall
The procedures and policies by which a bank segregates its commercial department from its trust department.
0%, 3%
The reserve requirement for some time deposits (non personal) range from ___ to _____ percent
3%, 12%
The reserve requirement for transaction accounts under Reg D ranges from ___ to ___ percent
brokered deposit
any deposit that is obtained directly or indirectly from or through the mediation or assistance of a deposit broker
45
bank shall file a written capital restoration plan with the appropriate FDIC regional director within _____ days of the date that the bank receives notice or is deemed to have notice that the bank is undercapitalized, significantly undercapitalized, or critically undercapitalized, unless the FDIC notifies the bank in writing that the plan is to be filed within a different period.
RESPA
designed to prohibit the use of kickbacks in real estate transactions
Fair Credit Reporting Act
gives individuals the right to examine their own credit history
180 days
how long to designate a security officer?
Fair Housing Act
makes it unlawful for any lender to discriminate in its housing related activities because of race, color, religion, national origin, sex, family status, or handicap.
Insured depository institution
means any bank, savings association, or branch of a foreign bank insured under the provisions of the Federal Deposit Insurance Act
Affiliate
means any company of which a member bank is a subsidiary or any other subsidiary of that company
4 Pillars of BSA
o Provide for a system of internal controls to assure ongoing compliance; o Provide for independent testing for compliance to be conducted by bank personnel or by an outside party; o Designate an individual or individuals responsible for coordinating and monitoring day-to-day compliance; and o Provide training for appropriate personnel.
Interagency Policy Statement on External Auditing Programs of Banks and Savings Associations
outlines the characteristics of an effective external auditing program and provides examples of how an institution can use an external auditor to help ensure the reliability of its financial reports.
Audit Committee or Board
responsible for determining what type of external auditing program will best meet the institution's needs (Director's Exam)
Audit Committee or Board
responsible for identifying at least annually the risk areas of the institution's activities and assessing the extent of external auditing involvement needed over each area.
Additional provisions applicable to significantly undercapitalize, and critically undercapitalized banks
restrict compensation paid to senior executive officers of the institution
Lending Policy
should contain a general outline of the scope and distribution of the institution's credit facilities and the manner in which real estate loans are made, serviced, and collected.
Margin Stock
stocks that are registered on a national securities exchange or any over-the-counter security designated for trading in the Nation Market System; 2) debt securities (bonds) that are convertible into margin stock; 3) shares of most mutual funds
4 years
term of Bank Commissioner
5, 10
the SEC's small firm exemption would apply to the firm because it has fewer than ______ public company audit clients and fewer than _____ audit partners.
Financial Expert
the company's audit committee should always have outside director that is a ___________________
Redlining
the practice of denying a creditworthy applicant a loan for housing in a certain neighborhood even though the applicant may otherwise be eligible for the loan. drawing "blank" around portions of a map.
focus of trust examinations
to determine if a department's policies or administration of accounts has resulted in any contingent liability or estimated loss which could have an adverse impact of the bank's capital accounts
