# 12 C.F.R. § 308.124 (2026): Involuntary termination of insured status for failure to receive deposits

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_124

## Section

- **Citation:** 12 C.F.R. § 308.124 (2026)
- **Heading:** Involuntary termination of insured status for failure to receive deposits
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter III: FEDERAL DEPOSIT INSURANCE CORPORATION / Part 308: RULES OF PRACTICE AND PROCEDURE / Subpart F: Rules and Procedures Applicable to Proceedings for Involuntary Termination of Insured Status / § 308.124: § 308.124   Involuntary termination of insured status for failure to receive deposits.

## Text

(a)
Notice to show cause.
When the Board of Directors or its designee has evidence that an insured depository institution is not engaged in the business of receiving deposits, other than trust funds, the Board of Directors or its designee shall give written notice of this evidence to the depository institution and shall direct the depository institution to show cause why its insured status should not be terminated under the provisions of section 8(p) of the FDIA (12 U.S.C. 1818(p)). The insured depository institution shall have 30 days after receipt of the notice, or such longer period as is prescribed in the notice, to submit affidavits, other written proof, and any legal arguments that it is engaged in the business of receiving deposits other than trust funds.
(b)
Notice of termination date.
If, upon consideration of the affidavits, other written proof, and legal arguments, the Board of Directors determines that the depository institution is not engaged in the business of receiving deposits, other than trust funds, the finding shall be conclusive and the Board of Directors shall notify the depository institution that its insured status will terminate at the expiration of the first full semiannual assessment period following issuance of that notification.
(c)
Notification to depositors of termination of insured status.
Within the time specified by the Board of Directors and prior to the date of termination of its insured status, the depository institution shall mail a notification of termination of insured status to each depositor at the depositor's last address of record on the books of the depository institution. The depository institution shall also publish the notification in two issues of a local newspaper of general circulation and shall furnish the FDIC with proof of such publications. The notification to depositors shall include information provided in substantially the following form:
Notice
(Date)__________
ositor at the depositor's last address of record on the books of the depository institution. The depository institution shall also publish the notification in two issues of a local newspaper of general circulation and shall furnish the FDIC with proof of such publications. The notification to depositors shall include information provided in substantially the following form:
Notice
(Date)__________.
The status of the __________, as an (insured depository institution) (insured branch) under the Federal Deposit Insurance Act, will terminate on the ________ day of____________, 19____, and its deposits will thereupon cease to be insured.
(Name of depository institution or branch)
(Address)
The notification may include any additional information the depository institution deems advisable, provided that the information required by this section shall be set forth in a conspicuous manner on the first page of the notification.

## Nearby sections

- [12 C.F.R. § 308.119 (2026) § 308.119   Scope.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_119.md)
- [12 C.F.R. § 308.120 (2026) § 308.120   Grounds for termination of insurance.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_120.md)
- [12 C.F.R. § 308.121 (2026) § 308.121   Notification to primary regulator.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_121.md)
- [12 C.F.R. § 308.122 (2026) § 308.122   Notice of intent to terminate.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_122.md)
- [12 C.F.R. § 308.123 (2026) § 308.123   Notice to depositors.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_123.md)
- [12 C.F.R. § 308.124 (2026) § 308.124   Involuntary termination of insured status for failure to receive deposits.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_124.md)
- [12 C.F.R. § 308.125 (2026) § 308.125   Temporary suspension of deposit insurance.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_125.md)
- [12 C.F.R. § 308.126 (2026) § 308.126   Special supervisory associations.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_126.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P308_S308_124. Check the current official text before relying on it. Not legal advice.