BB 93-48
BANKING ISSUANCES

Comptroller of the Currency
Administrator of National Banks
Type:  Banking Bulletin
Subject:  Department of Treasury HIC Repurchase Transactions

To: Chief Executive Officers of All National Banks, OCC
    Department and Division Heads, and All Examining Personnel

The FDIC adopted a final rule on deposit insurance on May 11,
1993. While many of the deposit insurance regulations were
unchanged, the revised rule restricts insurance coverage on
certain retirement and other employee benefit plan accounts,
including Individual Retirement Accounts (IRAs), self- directed
Keogh Plan accounts, "457 Plan" accounts, defined contribution
plan accounts, accounts held in a fiduciary capacity, and
"benefit-responsive" Bank Investment Contracts (BICs). The final
rule, which implements Section 311 of the Federal Deposit
Insurance Corporation Improvement Act of 1991 (FDICIA), went
into effect June 24, 1993, except as otherwise noted in the
regulations. A general overview of the major provisions of the
rule, and the final rule are attached.

The rule requires each insured institution to inform customers
of the new rules in a one-time mailing by October 10, 1993,
using the brief notice that appears on page 22965 of the
attached Federal Register document. An institution has the
option of mailing the notice to all of its depositors or to only
those customers who have the types of accounts affected by the
rule changes.

For more information, contact the Office of the Chief National
Bank Examiner, Office of the Comptroller of the Currency,
Washington, DC 20219, or telephone (202) 874-5170.
 



Donald G. Coonley
Chief National Bank Examiner


Attachment

Date:  August 27, 1993