Footnote 1:  Part 327 of the FDIC Rules and Regulations established the current risk-based assessment system.

Footnote 2:  Named after former Representative Mary Rose Oakar, who sponsored the Oakar Amendment to the FDI Act.

Footnote 3:  FDICconnect is the Internet channel that FDIC insured institutions use to conduct business and exchange information with the FDIC. FDICconnect is a secure e-business transaction site.

Footnote 4:  Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).

Footnote 5:  The FDIC issued draft versions of the Oakar Study Report in November 2004 and January and February 2005. The FDIC issued a final version of the Oakar Study Report on March 3, 2005.

Footnote 6:  When the acquired institution was already an Oakar bank, the percentage was based on the acquired institution’s ratio of insured to total deposits applicable to the acquirer’s secondary fund.

Footnote 7:  The original simulation analysis assumed that deposits from branch purchases were 100 percent insured. Because a small amount of branch deposits could have been uninsured, DIR added an assumption to the new method that deposits in acquired branches were 90 percent insured. DIR recalculated the analysis to reflect this change.

Footnote 8:  The FDI Act required the FDIC to allocate personnel, administrative, or other overhead expenses of the Corporation to BIF and SAIF. Some of those expenses were allocated based on estimated insured deposits.

Footnote 9:  Capital Group “1” and Supervisory Subgroup “A” was the lowest risk category in the FDIC’s risk based premium system and included institutions considered well capitalized with a composite rating of 1 or 2.

Footnote 10:  12 United States Code Part 1817(b)(2)(A).

Footnote 11:  Seal No. 062525, dated May 27, 1997.

Footnote 12:  A basis point is one hundredth of a percentage point.

Footnote 13:  The composition of the Board has since changed. For example, the FDIC Chairman and Comptroller of the Currency have left the FDIC and OCC. The former FDIC Vice Chairman is now the Director of OTS. The current Acting Chairman joined the FDIC as Vice Chairman in August 2005.

Footnote 14:  According to FDIC, as of December 31, 2004, 93 percent of BIF and SAIF institutions were classified as “1-A” (i.e., well-capitalized and financially sound) and were assigned an assessment rate of “zero.” According to FDIC, as of December 31, 2004, 93 percent of BIF and SAIF institutions were classified as “1-A” (i.e., well-capitalized and financially sound) and were assigned an assessment rate of “zero.”