CFR > Title 12 - Banks and Banking > CHAPTER III—FEDERAL DEPOSIT INSURANCE CORPORATION > SUBCHAPTER B—REGULATIONS AND STATEMENTS OF GENERAL POLICY (parts 323 to 371) > PART 327—ASSESSMENTS > SUBPART C—Implementation of Dividend Requirements (§327.50 to §327.54) > 327.52—Annual dividend determination.

327.52—Annual dividend determination.

(a) If the DIF reserve ratio as of December 31st of 2008 or any later year equals or exceeds 1.35 percent, then on or before May 10th of the following year, the Board shall determine whether to declare a dividend based upon the reserve ratio of the DIF as of December 31st of the preceding year, and the amount of the dividend, if any.
(b) Except as provided in paragraph (d) of this section, if the reserve ratio of the DIF equals or exceeds 1.35 percent of estimated insured deposits and does not exceed 1.50 percent, the Board shall declare the amount that is equal to one-half of the amount in excess of the amount required to maintain the reserve ratio at 1.35 percent as the aggregate dividend to be paid to insured depository institutions.
(c) Except as provided in paragraph (d) of this section, if the reserve ratio of the DIF exceeds 1.50 percent of estimated insured deposits, the Board shall declare the amount in excess of the amount required to maintain the reserve ratio at 1.50 percent as the aggregate dividend to be paid to insured depository institutions and shall declare a dividend under paragraph (b) of this section.
(d) (1) The Board may suspend or limit a dividend otherwise required to be paid if the Board determines that:
(i) A significant risk of losses to the DIF exists over the next one-year period; and
(ii) It is likely that such losses will be sufficiently high as to justify the Board concluding that the reserve ratio should be allowed:
(A) To grow temporarily without requiring dividends when the reserve ratio is between 1.35 and 1.50 percent; or
(B) To exceed 1.50 percent.
(2) In making a determination under this paragraph, the Board shall consider:
(i) National and regional conditions and their impact on insured depository institutions;
(ii) Potential problems affecting insured depository institutions or a specific group or type of depository institution;
(iii) The degree to which the contingent liability of the FDIC for anticipated failures of insured institutions adequately addresses concerns over funding levels in the DIF; and
(iv) Any other factors that the Board may deem appropriate.
(3) Within 270 days of making a determination under this paragraph, the Board shall submit a report to the Committee on Financial Services and the Committee on Banking, Housing, and Urban Affairs, providing a detailed explanation of its determination, including a discussion of the factors considered.
(e) The Board shall annually review any determination to suspend or limit dividend payments and must either:
(1) Make a new finding justifying the renewal of the suspension or limitation under paragraph (d) of this section, and submit a report as required under paragraph (d)(3) of this section; or
(2) Reinstate the payment of dividends as required by paragraph (b) or (c) of this section.