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Association Insurance Fund member,
the fee shall be the approximate
amount which the [Federal Deposit
Insurance] Corporation calculates
as necessary to prevent dilution of
the Savings Association Insurance
Fund, and shall be paid to the
Savings Association Insurance Fund.
Metrobank consummated the transaction on November 2, 1990,
and the FDIC approved the transaction on November 6, 1990,
effective as of November 2, 1990. After the transaction, all of
Metrobank's deposit liabilities (including those assumed from
Community) were insured by the BIF. Metrobank could not have
insured through the BIF the deposit liabilities it had assumed
from Community without paying the exit and entrance fees.
In total, Metrobank paid to the FDIC an exit fee of $309,565
and an entrance fee of $43,339 on its assumption of Community’s
deposit liabilities. Metrobank paid those fees in five annual
installments, paying $71,518 in each subject year ($62,735 for
the exit fee and $8,783 for the entrance fee).3 For each of the
subject years, petitioner claimed a deduction for the payment of
the fees during that year. Petitioner also claimed for those
respective years deductions of $465,046, $463,583, and $311,245
that Metrobank paid to the FDIC as semiannual insurance premiums
under 12 U.S.C. sec. 1817 (1994).
3 We recognize that the sum of the exit and entrance fee
($309,565 + $43,339 = $352,904) is $4,186 less than the total of
the five payments ($71,518 x 5 = $357,590). The record does not
adequately explain the difference.
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