Term: 4C
Definition: FDIC's internal asset inventory system. 4C houses all asset data for failed institutions beginning with pre-close activities, through asset disposition and ongoing management.

Term: Book-entry Security
Definition: A security for which the purchaser receives a receipt rather than an engraved certificate. Although a certificate may exist in some instances, it is held in one location as ownership changes.

Term: Book Value
Definition: A loan's unpaid principal balance at closing as adjusted by principal transactions between the date of the information package and the closing, or for loans serviced by others as of the date of the most recent servicing statement.

Term: Capital Markets Policies and Procedures Manual
Definition: We used the draft version of the DRR Capital Markets Policies and Procedures Manual notated by DRR as revised February 2, 2011. This is the version of the manual containing CMU's policies and procedures that was applicable to our audit period.

Term: Controls Total Module (CTM)
Definition: FDIC's internal accounting system for monitoring the receipt of cash by the Corporation. The cash is posted by Journal Entry to specific assets in Metavante.

Term: Custodian
Definition: A custodian is a financial institution that has the legal responsibility for a customer's securities.

Term: Metavante Asset Servicing System

Term: Proforma Jacket
Definition: Documentation prepared by the Proforma Team to convert the failed bank's accounting records from accrual basis to cash basis accounting and to document the split of assets between those remaining with the FDIC and those sold to the Acquiring Institution.

Term: Purchase and Assumption Agreements
Definition: The agreements executed between the receiver; buyer; and seller, including the covered asset listings, and the SLAs.

Term: Receiver
Definition: The FDIC as initial acquirer of the failed bank.

Term: Receivership
Definition: A receivership is a temporary entity that is established upon the appointment of the FDIC by the appropriate federal or state regulatory authority to wind up the business and affairs of a failed financial institution.

Term: Securities or security assets
Definition: The term "Securities or security assets" includes, but is not limited to, US Treasury instruments, issues of governmental agencies, mortgage-backed obligations, municipal bonds, warrants, options, futures contracts, partnership interests, shares of unit investment trusts, participation certificates, preferred or common stocks and other equity instruments, rated or unrated bonds, notes or other debt instruments, financial derivatives, special purpose finance corporations (subsidiaries) which serve or have served as vehicles for issuing or holding mortgage-backed or asset-backed securities, and all related instruments.

Term: Shared Loss Agreements
Definition: An agreement with the purchaser to share in the losses from a failed institution's assets. Shared Loss Agreements are part of the Purchase and Assumption Agreement.