Instructions For Schedule Rc-L (Form Ffiec 031 And 041) - Derivatives And Pff-Balance Sheet Items Page 3
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18FFIEC 031 and 041
RC-L – DERIVATIVES AND OFF-BALANCE SHEET
Item No.
Caption and Instructions
Exclude from this item all commitments that, when funded, would be reportable as
1.c.(2)
(cont.)
"Loans secured by real estate" in Schedule RC-C, part I, item 1. Also exclude commitments
made to commercial and industrial firms where the sole purpose for the financing is to
construct a factory or office building to house the company's operations or employees.
Securities underwriting . Report the unsold portion of the reporting bank's own takedown in
1.d
securities underwriting transactions. Include NIFs and RUFs in this item.
Other unused commitments . Report the unused portion of all other commitments not
1.e
reportable above. Include commitments to extend credit through overdraft facilities or
commercial lines of credit and retail check credit and related plans.
Also include commitments to extend credit secured by 1-4 family residential properties, except
(a) revolving, open-end lines of credit secured by 1-4 family residential properties (e.g., home
equity lines) which should be reported in Schedule RC-L, item 1.a, above, (b) commitments
for 1-4 family residential construction and land development loans (that are secured by such
properties) which should be reported in Schedule RC-L, item 1.c.(1), above, and (c)
commitments that meet the definition of a derivative and must be accounted for in accordance
with FASB Statement No. 133, which should be reported in Schedule RC-L, item 12.
General Instructions for Standby Letters of Credit -- Originating banks must report in
2 and 3
items 2 and 3 the full amount outstanding and unused of financial and performance standby
letters of credit, respectively. Include those standby letters of credit that are collateralized by
cash on deposit, that have been acquired from others, and in which participations have been
conveyed to others where (a) the originating and issuing bank is obligated to pay the full
amount of any draft drawn under the terms of the standby letter of credit and (b) the
participating banks have an obligation to partially or wholly reimburse the originating bank,
either directly in cash or through a participation in a loan to the account party.
For syndicated standby letters of credit where each bank has a direct obligation to the
beneficiary, each bank must report only its share in the syndication. Similarly, if several banks
participate in the issuance of a standby letter of credit under a bona fide binding agreement
which provides that (a) regardless of any event, each participant shall be liable only up to a
certain percentage or to a certain amount and (b) the beneficiary is advised and has agreed
that each participating bank is only liable for a certain portion of the entire amount, each bank
shall report only its proportional share of the total standby letter of credit.
For a financial or performance standby letter of credit that is in turn backed by a financial
standby letter of credit issued by another bank, each bank must report the entire amount of
the standby letter of credit it has issued in either item 2 or item 3 below, as appropriate. The
amount of the reporting bank's financial or performance standby letter of credit that is backed
by the other bank's financial standby letter of credit must also be reported in either item 2.a
or 3.a, as appropriate, since the backing of standby letters of credit has substantially the same
effect as the conveying of participations in standby letters of credit.
On the FFIEC 031, also include all financial and performance guarantees issued by
foreign offices of the reporting bank pursuant to Federal Reserve Regulation K or
Section 347.103(a)(1) of the FDIC Rules and Regulations.
FFIEC 031 and 041
RC-L-3
RC-L – DERIVATIVES AND OFF-BALANCE SHEET
(3-02)
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