---
kind: "section"
citation: "12 C.F.R. § 357.1"
title: "12"
number: "357.1"
heading: "Economically depressed regions."
url: "https://uscodex.org/cfr/12/357.1"
---

# §357.1. Economically depressed regions.

- (a) **Purpose.** Section 13(k)(5) of the Federal Deposit Insurance Act ([12 U.S.C. 1823(k)(5)](/usc/12/1823.md?p=k-5)) provides that the FDIC shall consider proposals for financial assistance for eligible insured savings associations before grounds exist for appointment of a conservator or receiver for such member. One of the criteria for eligibility is that an institution's offices are located in an economically depressed region as determined by the FDIC.
- (b) **Economically depressed regions.**
  - (1) For the purpose of determining “economically depressed regions”, the FDIC will determine whether an institution qualifies as being located in an “economically depressed region” on a case-by-case basis. That determination will be based on four criteria:
    - (i) High unemployment rates;
    - (ii) Significant declines in non-farm employment;
    - (iii) High delinquency rates of real estate assets at insured depository institutions; and
    - (iv) **Evidence indicating declining real estate values.**
  - (2) In addition, the FDIC will also consider relevant information from institutions regarding their geographic market area, as well as information on whether that market is “economically depressed”.

## Notes

### Amendments

[55 FR 11161, Mar. 27, 1990, as amended at 63 FR 10295, Mar. 3, 1998; 71 FR 20527, Apr. 21, 2006]

### Authority

Authority: 12 U.S.C. 1819, 1823(k)(5).

### Amendments

[55 FR 11161, Mar. 27, 1990, as amended at 63 FR 10295, Mar. 3, 1998; 71 FR 20527, Apr. 21, 2006]