69U-100.948. Reporting of Significant Events or Conditions

(1) Section 655.948, F.S., requires state financial institutions, not exempted by OFR, to report the occurrence of certain conditions or events within 30 days of the occurrence of the condition or event. Aggregate monthly reports that are received by OFR by the 10th day of each month, covering all reportable events or occurrences that occurred during the previous month, will satisfy the reporting requirements of Section 655.948, F.S. All reports required by this rule shall be submitted by U.S. Mail or Email to: Director, Division of Financial Institutions, Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0371, [e-mail]. A report will not be required if a reportable event or condition did not occur during the previous month.

(2)(a) “Operating in a safe and sound manner” shall mean any state financial institution operating with a composite rating of “1,” “2,” or “3,” and with a management rating of “1,” or “2,” in its most recent safety and soundness report of examination or, in the case of a trust company, its most recent trust report of examination, and which is not subject to a State or Federal regulatory action. For purposes of this section “regulatory action” shall include cease and desist orders, written agreements, memoranda of understanding, letters of understanding and agreement, and any other equivalent action initiated by a financial institution regulator. (Examination ratings are based on the Federal Financial Institutions Examinations Council’s Uniform Interagency Trust Rating System and Uniform Financial Institutions Rating System, often called the CAMELS rating system.)

(b) Other financial institutions may request a determination that they are operating in a safe and sound manner by writing to the Director of the Division of Financial Institutions, Office of Financial Regulation detailing why the institution believes it is operating in a safe and sound manner. Any such request must include supporting documentation of improvements in the institution and its operations. The request shall be approved only when OFR concludes that, because of the documented improvements, the institution would be rated “1,” “2,” or “3,” with a management rating of “1,” or “2,” were a safety and soundness examination conducted on the date of the institution’s request. For example, the Director of the Division of Financial Institutions, Office of Financial Regulation may approve a request from an institution that was poorly rated in its last safety and soundness examination because of inadequate capital if the institution documents that it increased capital sufficiently to address the inadequacy.

(3) As used in this section, a “non-exempt state financial institution” means:

(a) Any state financial institution that was chartered within three years of the occurrence of an event reportable under subsection (4) of this rule; or

(b) Any state financial institution that is not operating in a safe and sound manner as determined under subsection (2) of this rule.

(4) All non-exempt state financial institutions shall disclose to OFR, within the timeframes specified in subsection (1), the following events or conditions:

(a) Any interruption in fidelity insurance coverage;

(b) Any suspected criminal act perpetrated against the state financial institution, or any of its subsidiaries or service corporations. For purposes of this section, “suspected criminal act” shall mean that there is a reasonable basis for believing that a crime has occurred, is occurring, or may occur;

(c) The addition, resignation or termination of a director, executive officer, independent internal auditor, or independent credit review officer;

(d) The acquisition or divestiture of an asset or related or similar assets, which in the aggregate on any single business day totals 20 percent or more of the state financial institution’s capital reported in the most recent Call Report. Assets listed in Section 657.042(1) or 658.67(1), F.S., are exempted from this requirement;

(e) Any change in the state financial institution’s outside general counsel or outside independent auditor;

(f) Any extension of credit to an executive officer or his related interests that, when aggregated with other extensions of credit to that executive officer or his related interests, exceeds 15 percent of the state financial institution’s capital accounts as reported in the most recent Call Report;

(g) The acquisition or reclassification of any earning asset to “non-accrual” status which, when combined with other non-accrual assets, in the aggregate totals 15 percent or more of the state financial institution’s assets as reported in the most recent Call Report; or

(h) The acquisition or divestiture of a wholly owned or majority-owned subsidiary or service corporation.

(5) All reportable conditions or events must be disclosed on official letterhead. However, an institution is in compliance with paragraph (4)(b), if it provides OFR with a copy of the federal “Suspicious Activity Report” filed with the appropriate federal regulatory or law enforcement agency. Such report shall constitute proper notice of any suspected criminal act perpetrated against a financial institution.

(6) Pursuant to Section 655.041, F.S., OFR may impose an administrative fine for late filing or non-filing of reportable events or occurrences. For late filing or non-filing of reportable events, OFR shall impose an administrative fine of $100 per day for each day the disclosure report is past due as a result of the negligence of the reporting financial institution, unless the late payment penalty is excused for incidental and isolated clerical errors or omissions. For intentional late filing or non-filing of any report, OFR shall impose an administrative fine of $1,000 per day for each day the report is past due.

Rulemaking Authority 655.012(2) FS. Law Implemented 655.948 FS. History–New 11-2-92, Amended 6-20-00, 12-28-00, Formerly 3C-100.948, Amended 9-11-18, 1-18-21.