Current through Reg. 50, No. 249, December 24, 2024
(1) Section
655.948, F.S., requires state
financial institutions, not exempted by OFR, to report the occurrence of
certain conditions or events within 30 days of the occurrence of the condition
or event. Aggregate monthly reports that are received by OFR by the 10th day of
each month, covering all reportable events or occurrences that occurred during
the previous month, will satisfy the reporting requirements of Section
655.948, F.S. All reports
required by this rule shall be submitted by U.S. Mail or Email to: Director,
Division of Financial Institutions, Office of Financial Regulation, 200 East
Gaines Street, Tallahassee, Florida 32399-0371,
OFRFinancialInstitutions@flofr.gov. A report will not be required if a
reportable event or condition did not occur during the previous
month.
(2)
(a) "Operating in a safe and sound manner"
shall mean any state financial institution operating with a composite rating of
"1," "2," or "3," and with a management rating of "1," or "2," in its most
recent safety and soundness report of examination or, in the case of a trust
company, its most recent trust report of examination, and which is not subject
to a State or Federal regulatory action. For purposes of this section
"regulatory action" shall include cease and desist orders, written agreements,
memoranda of understanding, letters of understanding and agreement, and any
other equivalent action initiated by a financial institution regulator.
(Examination ratings are based on the Federal Financial Institutions
Examinations Council's Uniform Interagency Trust Rating System and Uniform
Financial Institutions Rating System, often called the CAMELS rating
system.)
(b) Other financial
institutions may request a determination that they are operating in a safe and
sound manner by writing to the Director of the Division of Financial
Institutions, Office of Financial Regulation detailing why the institution
believes it is operating in a safe and sound manner. Any such request must
include supporting documentation of improvements in the institution and its
operations. The request shall be approved only when OFR concludes that, because
of the documented improvements, the institution would be rated "1," "2," or
"3," with a management rating of "1," or "2," were a safety and soundness
examination conducted on the date of the institution's request. For example,
the Director of the Division of Financial Institutions, Office of Financial
Regulation may approve a request from an institution that was poorly rated in
its last safety and soundness examination because of inadequate capital if the
institution documents that it increased capital sufficiently to address the
inadequacy.
(3) As used
in this section, a "non-exempt state financial institution" means:
(a) Any state financial institution that was
chartered within three years of the occurrence of an event reportable under
subsection (4) of this rule; or
(b)
Any state financial institution that is not operating in a safe and sound
manner as determined under subsection (2) of this rule.
(4) All non-exempt state financial
institutions shall disclose to OFR, within the timeframes specified in
subsection (1), the following events or conditions:
(a) Any interruption in fidelity insurance
coverage;
(b) Any suspected
criminal act perpetrated against the state financial institution, or any of its
subsidiaries or service corporations. For purposes of this section, "suspected
criminal act" shall mean that there is a reasonable basis for believing that a
crime has occurred, is occurring, or may occur;
(c) The addition, resignation or termination
of a director, executive officer, independent internal auditor, or independent
credit review officer;
(d) The
acquisition or divestiture of an asset or related or similar assets, which in
the aggregate on any single business day totals 20 percent or more of the state
financial institution's capital reported in the most recent Call Report. Assets
listed in Section 657.042(1) or
658.67(1),
F.S., are exempted from this requirement;
(e) Any change in the state financial
institution's outside general counsel or outside independent auditor;
(f) Any extension of credit to an executive
officer or his related interests that, when aggregated with other extensions of
credit to that executive officer or his related interests, exceeds 15 percent
of the state financial institution's capital accounts as reported in the most
recent Call Report;
(g) The
acquisition or reclassification of any earning asset to "non-accrual" status
which, when combined with other non-accrual assets, in the aggregate totals 15
percent or more of the state financial institution's assets as reported in the
most recent Call Report; or
(h) The
acquisition or divestiture of a wholly owned or majority-owned subsidiary or
service corporation.
(5)
All reportable conditions or events must be disclosed on official letterhead.
However, an institution is in compliance with paragraph (4)(b), if it provides
OFR with a copy of the federal "Suspicious Activity Report" filed with the
appropriate federal regulatory or law enforcement agency. Such report shall
constitute proper notice of any suspected criminal act perpetrated against a
financial institution.
(6) Pursuant
to Section 655.041, F.S., OFR may impose an
administrative fine for late filing or non-filing of reportable events or
occurrences. For late filing or non-filing of reportable events, OFR shall
impose an administrative fine of $100 per day for each day the disclosure
report is past due as a result of the negligence of the reporting financial
institution, unless the late payment penalty is excused for incidental and
isolated clerical errors or omissions. For intentional late filing or
non-filing of any report, OFR shall impose an administrative fine of $1,000 per
day for each day the report is past due.
Rulemaking Authority 655.012(2) FS. Law Implemented 655.948
FS.
New 11-2-92, Amended 6-20-00, 12-28-00, Formerly
3C-100.948, Amended 9-11-18, 1-18-21.
