Board of Governors of the Federal Reserve System

Data Dictionary

Item Number 2129

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes the outstanding principal balance of assets covered fully or partially by recourse obligations or direct substitutes of the savings association (defined in accordance with OTS Regulation 567.a(kk) and (f), respectively).

Includes:

          1. Assets covered by the savings association's recourse obligations, letters of credit and other agreements, both collateralized and uncollateralized,to cover credit obligations of an account party.

          2. The full amount of assets covered by recourse obligations issued by the savings association or a consolidated subsidiary, which requires it to absorb credit losses on assets held by a third party.

          3. The full amount of assets covered against credit losses by financia-quarantee type standby letters of credit or other direct credit substitutes covering the full amount or a subordinated portion of an asset pool that are issued by the savings association or a consolidated subsidiary.

          4. The full amount of assets protected by the savings association's agreement through a direct credit substitute (e.g., financial-guarantee type standby letter of credit) or recourse obligation to absorb credit losses up to some percentage of the asset pool. Such subordinated positions may represent the obligation to absorb credit losses up to a multiple of expected loss, thereby potentially being exposed to the same dollar credit loss as if the savings association guaranteed the entire pool. Report the amount of such subordinated positions plus more senior (protected) portions of the pool.

          5. Assets held in a trust or spread account for which the savings association or a consolidated subsidiary has the obligation to absorb credit losses through holding a nonsecurity financial instrument under SFAS No. 125 or other agreement.

Do Not Include:

          1. Loans insured or partially insured by government agencies (e.g., if 80% of a loan is insured by the FHA or VA, report only 20% of the outstanding loan on this line; the insured portion should not be reported on this line);

          2. Portions of asset pools on which third parties would be obliged to share losses on a pro-rata basis (e.g. do not report the portion of an asset pool on which a third part undertook to absorb the same portion on a pro-rata basis; or stated differently, do not report the portion of an asset pool if the savings assocition does not have to absorb a set amountof loss before the third party begins to share losses); and

          3. Losses reported as liabilities in Schedule SC.

          4. Loans swapped or a security if the entire security is retained on the balance sheet.

COMPARABILITY:

Beginnning 6/30/04 item no. 5 above revised to Assets covered by recourse obligations even if the obligation is limited to 120 days or less.

Beginning 6/30/02, clarified that purchased credit-enhancing exposures are direct credit substitutes. For further information refer to the Thrift Financial Report Instruction Manual.

Beginning 3/31/1999, item 6 deleted from the "Include List" and item 4 added to the "Do Not Include List."

NOTE:

Beginning 3/31/03, "Off-Balance Sheet" removed from the caption.

Reported on Schedule CC of the SVGL report.