12 CFR § 366.5 - What causes a substantial loss to a federal deposit insurance fund?
---
identifier: "/us/cfr/t12/s366.5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 366.5 - What causes a substantial loss to a federal deposit insurance fund?"
title_number: 12
title_name: "Banks and Banking"
section_number: "366.5"
section_name: "What causes a substantial loss to a federal deposit insurance fund?"
chapter_name: "FEDERAL DEPOSIT INSURANCE CORPORATION"
subchapter_number: "B"
subchapter_name: "REGULATIONS AND STATEMENTS OF GENERAL POLICY"
part_number: "366"
part_name: "MINIMUM STANDARDS OF INTEGRITY AND FITNESS FOR AN FDIC CONTRACTOR"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Section 9 (Tenth) of the Federal Deposit Insurance Act (FDI Act), 12 U.S.C. 1819 (Tenth); sections 12(f)(3) and (4) of the FDI Act, 12 U.S.C. 1822(f)(3) and (4); and section 19 of Pub. L. 103-204, 107 Stat. 2369."
regulatory_source: "67 FR 69991, Nov. 20, 2002, unless otherwise noted."
cfr_part: "366"
---
# 366.5 What causes a substantial loss to a federal deposit insurance fund?
You cause a substantial loss to the Deposit Insurance Fund (or any predecessor deposit insurance fund) under § 366.3(d) when you, or any person that owns or controls you, or any entity you own or control has:
(a) An obligation to us that is delinquent for 90 days or more and on which there is an outstanding balance of principal, interest, or a combination thereof of more than $50,000;
(b) An unpaid final judgment in our favor that is in excess of $50,000, regardless of whether it becomes discharged in whole or in part in a bankruptcy proceeding;
(c) A deficiency balance following foreclosure of collateral on an obligation owed to us that is in excess of $50,000, regardless of whether it becomes discharged in whole or in part in a bankruptcy proceeding; or
(d) A loss to us that is in excess of $50,000 that we report on IRS Form 1099-C, Information Reporting for Discharge of Indebtedness.
[67 FR 69991, Nov. 20, 2002, as amended at 71 FR 20527, Apr. 21, 2006]