---
kind: "section"
citation: "12 C.F.R. § 366.5"
title: "12"
number: "366.5"
heading: "What causes a substantial loss to a federal deposit insurance fund?"
url: "https://uscodex.org/cfr/12/366.5"
---

# §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)](/cfr/12/366.3.md?p=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.

## Notes

### Amendments

[67 FR 69991, Nov. 20, 2002, as amended at 71 FR 20527, Apr. 21, 2006]

### Authority

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.

### Source

Source: 67 FR 69991, Nov. 20, 2002, unless otherwise noted.

### Amendments

[67 FR 69991, Nov. 20, 2002, as amended at 71 FR 20527, Apr. 21, 2006]