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Regulation No. 17

WHEREAS, Section 5-2A-8 of the Alabama Banking Code provides that the Superintendent of Banks may, with the concurrence of a majority of the members of the State Banking Board, promulgate reasonable rules and regulations;

AND WHEREAS, The Superintendent of Banks, with the concurrence of the State Banking Board has adopted this record retention regulation, as provided in Sections 5-4A-1 and 5-2A-9, Code of Alabama, (1975);

NOW THEREFORE, be it known that the Superintendent, with the concurrence of the State Banking Board, does hereby promulgate the following regulation:

STATE OF ALABAMA
STATE BANKING DEPARTMENT
FINANCIAL INSTITUTION RECORDS RETENTION REGULATION

PURPOSE:

To provide a schedule of minimum records to be retained by all financial institutions chartered by the State Banking Department (hereinafter SBD) and used for the regulation and supervision of institutions by the SBD. This regulation also provides additional guidelines which should be used to formulate an internal record retention program consistent with the needs of the individual depository institution.

TO WHOM THIS REGULATION APPLIES:

All financial institutions chartered by the SBD and their operating subsidiaries.

SPECIFICS:

The Superintendent herein adopts pursuant to §5-2A-9 of the Alabama Banking Code, a "Record Retention Regulation" which outlines minimum supervisory-related records and retention periods in accordance with §5-4A-1, Code of Alabama, 1975. Any regulation revisions will be sent to all state-chartered financial institutions under the supervision of the SBD. Requirements herein do not supplant any other record requirements such as but not limited to GAAP, ACH Network rules, and NASD. To the extent applicable, the SBD will expect compliance with those requirements also. This regulation is not meant to replace or define the retention requirements of other regulatory agencies, or governmental authorities that have jurisdiction over the financial institution, and does not replace the institution's responsibility to create, implement, and maintain its own comprehensive record retention program, consistent with the institution's specific goals, objectives, and strategies.
A financial institution should maintain its own record retention policy. The policy should provide for systematic, consistent disposal of obsolete and unnecessary records under the continuing authority from the board of directors. The policy should help prevent overcrowding of files and improve efficiency, as unnecessary records hamper locating of essential material and increase the cost of storing records.
A financial institution should periodically review and revise its record retention schedule. Management should consider the following factors: changes in state and Federal reporting requirements; changes in institution services and/or products; changes in overall complexity; changes in consumer compliance requirements; technological advances; and changes in storage costs.
Records may be retained in various forms, including but not limited to, hard copies, photocopies, computer printouts or microfilm, microfiche, imaging, or other types of electronic media storage that can be readily reproduced into paper copies. Electronic records must be accurate, accessible and of such integrity to enable the SBD to determine the financial institution's financial condition and the substance and purpose of all transactions.

Please note that in the case of merged institutions, the surviving institution must maintain the records of the acquired institution in accordance with this regulation. Institutions acquiring assets of other institutions must maintain the records relating to the assets in accordance with this regulation.

Nothing herein shall be construed to create an obligation of an institution to anyone other than the SBD.

SBD's Records Retention Regulation
for Financial Institutions

  1. Financial Institutions' and their Subsidiaries' and Parent Companies' and their Subsidiaries' General Records
     
    1. To be retained 4 years
      1. Reports of Condition and Income (Call Reports) and records supporting all Call Report schedules
      2. Annual, semiannual, or quarterly reports submitted to the Federal agencies (e.g. Call Reports, FR Y-6, FR Y-9, etc.) and records supporting the schedules contained therein
      3. General ledger, subsidiary ledgers, and general ledger transaction reports and reconciliations with supporting vouchers and tickets (include the daily amounts of Federal funds bought/sold to each institution), and fixed asset records
      4. Reconcilement of "due to" and "due from" bank accounts and supporting bank statements
      5. Charged off asset/liability files and records
      6. Annual budget
      7. Internal asset classification report, watch list, and past due reports
      8. Quarterly analysis of the adequacy of the allowance for loan and lease losses
      9. Interest rate risk reports and supporting documents
      10. Written customer complaints and related correspondence
      11. Internal and external audit reports (including Directors' exams, audited financial statements, external auditor's management letters, internal and external information technology audit reports, risk assessment reports, audit report responses, loan review reports, and similar reports, including supporting working papers, as well as working papers for work performed by outside consultants)
      12. Salary records for employees
      13. Director and employee training records
      14. Daily overdraft reports
    2. To be retained 5 years
      1. Suspicious Activity Reports (SARs) filed with the Financial Institutions Crime Enforcement Network (FinCEN) and any SAR-related supporting documentation
      2. Currency Transaction Reports (CTRs) and supporting documentation, including exempt persons list
      3. Monetary instrument log
      4. Wire transfer log and supporting documentation
      5. Monthly deposit statements for directors and executive officers
      6. State and Federal tax records/returns
      7. Independent reviews of Bank Secrecy Act/Anti-Money Laundering
      8. Records of deposit liability accounts, including but not limited to savings accounts, demand accounts, certificates of deposit, Treasury, Tax and Loan deposit accounts, official checks outstanding, and supporting documents
      9. Executive officer committees, minutes and packages
      10. Documentation of responses to Section 314(a and b) customer information requests from FinCEN
    3. To be retained "Life + 3 years"
      1. Insurance records, policies, and supporting documentation
      2. Confirmations of investment securities purchases, sales, calls, maturities, and supporting documentation, including but not limited to documentation for derivatives
      3. Investment safekeeping receipts and supporting documentation
      4. Loan files and similar lending agreements, including but not limited to letters of credit, lines of credit or factoring agreements (including supporting reports, documentation, and payment histories)
      5. Other real estate owned and repossessed assets files (including supporting documentation and records)
      6. Leases
      7. All contracts w/service providers, including but not limited to brokers, computer securities, non-deposit investment products, cash handling, safekeeping, copier, legal services, etc., and due diligence reviews (when applicable)
      8. Customer agreements, signature agreements, including but not limited to deposits, automated teller machines, credit cards, safe deposits, point of sale services, and remote deposit capture
      9. Agreements for Federal funds lines or other borrowings and supporting due diligence reviews
      10. Personnel files (including, but not limited to background checks, salary, other compensation, and training)
      11. Records of any debt instruments (of the bank)
      12. Internal investigation files (life of investigation)
      13. Customer safekeeping records and receipts
      14. Strategic and continuity plans
      15. Benefit plan
      16. Subpoenas
    4. To be retained Life + 5 years
      1. Customer identification information and supporting documentation
      2. Correspondence with any state or Federal regulator concerning adverse actions or threatened adverse actions, including but not limited to, IRS claims, financial information requests, HMDA notification, ADEM, etc.
      3. Records of the financial institution associated with activities with the parent company and affiliates, including but not limited to trust preferred securities, borrowings, and stock issuances
      4. Lawsuits, legal complaints, court action documents, arbitration documents, court case records, tax levies, garnishments, including any orders or final judgments, settlements, or other legal filings
    5. To be retained Life + 10 years
      1. Administrative/Regulatory actions, orders, Board Resolutions, Memorandums of Understanding, and Cease & Desist orders, and related materials for life + 3 years
      2. Merger, acquisition, divestiture, change of control applications and approvals
    6. To be retained permanently
      1. Articles of Incorporation, Bylaws, Articles of Merger, or share exchange, conversion documents, copy of Charter, and FDIC insurance certificates, with all amendments to the foregoing
      2. Minutes of meetings of stockholders/shareholders, board of directors, board committees, board appointed committees, along with copies of materials reviewed and/or presented and adopted including capital plans
      3. Stock ledger and records pertaining thereto
      4. Reports of Examination by the SBD
  2. Financial Institutions' Trust Records
    1. To be retained 4 years
      1. Annual report of individual or collective trust assets and supporting documents
      2. Journal sheets for accounting division and stock transfers with supporting documentation
      3. Tax records/returns
    2. To be retained "Life +5 years"
      1. Document files, including but not limited to, correspondence, cash management files, investment objectives, wills, proxy, and governing agreements
      2. Fee schedules
      3. Ledger records
    3. To be retained permanently
      1. Trust committee and trust investment committee minute books with copies of materials reviewed and presented and adopted

Effective 2-1-2010

A

Accounts

      Demand...................................................See Section A.2.h.

Deposit Liability........................................See Section A.2.h.

Loan Deposits............................................See Section A.2.h.

Savings..................................................See Section A.2.h.

Tax Deposits.............................................See Section A.2.h.

Treasury Deposits........................................See Section A.2.h.

ADEM.......................................................See Section A.4.b.

Administrative Actions.....................................See Section A.5.a.

Administrative Orders......................................See Section A.5.a.

Adverse Actions............................................See Section A.4.b.

Affiliate Records..........................................See Section A.4.c.

Agreements

ATM......................................................See Section A.3.h.

Borrowings........................../....................See Section A.3.i.

Credit Cards.............................................See Section A.3.h.

Customer.................................................See Section A.3.h.

Deposits.................................................See Section A.3.h.

Due Diligence Reviews....................................See Section A.3.i.

Federal Funds Lines......................................See Section A.3.i.

POS......................................................See Section A.3.h.

Remote Deposit Capturer..................................See Section A.3.h.

Signature................................................See Section A.3.h.

AML........................................................See Section A.2.g.

Annual Budget..............................................See Section A.1.f.

Annual Reports.............................................See Section A.1.b.

Applications

Acquisition..............................................See Section A.5.b.

Change of Control........................................See Section A.5.b.

Divestiture..............................................See Section A.5.b.

Articles of Incorporation..................................See Section A.6.a.

Audited Financial Statements...............................See Section A.1.k.

B

Benefit Plan...............................................See Section A.3.o.

Board Resolutions..........................................See Section A.5.a.

Bylaws.....................................................See Section A.6.a.

C

Call Report...............................................See Section A.1.a.

Certificates of Deposit...................................See Section A.2.h.

Charged Off Asset Files...................................See Section A.1.e.

Charged Off Liability Files...............................See Section A.1.e.

Continuity Plans..........................................See Section A.3.n.

Contracts

Brokers.................................................See Section A.3.g.

Cash Handling...........................................See Section A.3.g.

Copiers.................................................See Section A.3.g.

EDP.....................................................See Section A.3.g.

Legal Services..........................................See Section A.3.g.

NDIP....................................................See Section A.3.g.

Safekeeping.............................................See Section A.3.g.

Service Providers.......................................See Section A.3.g.

Correspondence............................................See Section A.4.b.

CTR.......................................................See Section A.2.b.

Currency Transaction Reports..............................See Section A.2.b.

Customer Complaints.......................................See Section A.1.j.

Customer ID Information...................................See Section A.4.a.

Customer Information Requests.............................See Section A.2.j.

Customer Safekeeping Receipts.............................See Section A.3.m.

Customer Safekeeping Records..............................See Section A.3.m.

D

Daily overdraft reports..................................See Section A.1.n.

Debt Instruments Records.................................See Section A.3.k.

Derivatives..............................................See Section A.3.b.

Director Training Records................................See Section A.1.m..

Directors’ Exams.........................................See Section A.1.k.

Due Diligence Reviews....................................See Section A.3.g.

E

Employee Training Records...............................See Section A.1.m.

Executive Officer Committee Minutes.....................See Section A.2.i.

Executive Officer Committee Packages....................See Section A.2.i.

External Auditor’s Management Letters...................See Section A.1.k.

F

Factoring Agreements....................................See Section A.3.d.

Federal funds bought/sold...............................See Section A.1.c.

Fee Schedules...........................................See Section B.2.b.

Files

Cash Management.......................................See Section B.2.a.

Correspondence........................................See Section B.2.a.

Governing Agreements..................................See Section B.2.a.

Internal investigation Reports........................See Section A.3.l.

Investment Objectives.................................See Section B.2.a.

Loan..................................................See Section A.3.d.

Personnel.............................................See Section A.3.j.

Proxy.................................................See Section B.2.a.

Wills.................................................See Section B.2.a.

Financial Information Requests..........................See Section A.4.b.

FinCEN..................................................See Section A.2.a.

Fixed Asset Records.....................................See Section A.1.c.

FR Y-6, FR Y-9, etc.....................................See Section A.1.b.

G

General Ledger..........................................See Section A.1.c.

H

HMDA Notification.......................................See Section A.4.b.

I

Independent Reviews.....................................See Section A.2.g.

Insurance Policies......................................See Section A.3.a.

Insurance Records.......................................See Section A.3.a.

Interest Rate Risk......................................See Section A.1.i.

Investment Securities

Calls.................................................See Section A.3.b.

Confirmations.........................................See Section A.3.b.

Maturities............................................See Section A.3.b.

Purchases.............................................See Section A.3.b.

Sales.................................................See Section A.3.b.

IRS Claims..............................................See Section A.4.b.

J

Journal Sheets

Accounting Division...................................See Section B.1.b.

Stock Transfers.......................................See Section B.1.b.

L

Leases..................................................See Section A.3.f.

Ledger Records..........................................See Section B.2.c.

Legal

Arbitration Documents.................................See Section A.4.d.

Complaints............................................See Section A.4.d.

Court Actions.........................................See Section A.4.d.

Court Case Records....................................See Section A.4.d.

Final Judgments.......................................See Section A.4.d.

Garnishments..........................................See Section A.4.d.

Lawsuits..............................................See Section A.4.d.

Orders................................................See Section A.4.d.

Other Filings.........................................See Section A.4.d.

Settlements...........................................See Section A.4.d.

Tax Levies............................................See Section A.4.d.

Lending Agreements......................................See Section A.3.d.

Letters of Credit.......................................See Section A.3.d.

Lines of Credit.........................................See Section A.3.d.

M

Mergers

Acquired Institution..................................See bottom of page 2

Applications..........................................See Section A.5.b.

Approvals.............................................See Section A.5.b.

Merged Institutions...................................See bottom of page 2

Surviving Institution.................................See bottom of page 2

Minutes of Meetings

Board Appointed Committees............................See Section A.6.b.

Board Committees......................................See Section A.6.b.

Board of Directors....................................See Section A.6.b.

Materials Presented...................................See Section A.6.b.

Materials Reviewed....................................See Section A.6.b.

Sharholders...........................................See Section A.6.b.

Stockholders..........................................See Section A.6.b.

Monetary Instrument Log.................................See Section A.2.c.

Monthly Deposit Statements

For Directors.........................................See Section A.2.e.

For Executive Officers................................See Section A.2..e

MOU’s...................................................See Section A.5.a.

O

Official Checks Outstanding.............................See Section A.2.h.

P

Parent Company Records..................................See Section A.4.c.

Q

Quarterly Analysis

Lease Losses..........................................See Section A.1.h.

Loan Losses...........................................See Section A.1.h.

Quarterly Reports.......................................See Section A.1.b.

R

Real Estate.............................................See Section A.3.e.

Reconcilement

Bank Accounts.........................................See Section A.1.d.

Due From..............................................See Section A.1.d.

Due To................................................See Section A.1.d.

Reconciliations.........................................See Section A.1.c.

Regulatory Actions......................................See Section A.5.a.

Reports

Audit Responses.......................................See Section A.1.k.

Call..................................................See Section A.1.a.

Classification........................................See Section A.1.g.

External Information Technology Audit.................See Section A.1.k.

General Ledger Transaction............................See Section A.1.c.

Internal Audit........................................See Section A.1.k.

Internal Information Technology Audit.................See Section A.1.k.

Loan Review...........................................See Section A.1.k.

of Condition..........................................See Section A.1.a.

of Examination........................................See Section A.7.d.

of Income.............................................See Section A.1.a.

Past Due..............................................See Section A.1.g.

Risk Assessments......................................See Section A.1.k.

Watch List............................................See Section A.1.g.

S

Safekeeping Receipts....................................See Section A.3.c.

Salary Records..........................................See Section A.1.l.

SAR.....................................................See Section A.2.a.

Semiannual Reports......................................See Section A.1.b.

Stock Ledger............................................See Section A.7.c.

Strategic Plans.........................................See Section A.3.n.

Subpoenas...............................................See Section A.3.p.

Subsidiary Ledgers......................................See Section A.1.c.

Suspicious Activity Reports.............................See Section A.2.a.

T

Tax Records.............................................See Section A.3.f.

Tax Returns.............................................See Section A.2.f.

Threatened Adverse Actions..............................See Section A.4.b.

Tickets.................................................See Section A.1.c.

Trust

Assets Annual Report..................................See Section B.1.a.

Borrowings............................................See Section A.4.c.

Committee Minute Books................................See Section B.3.a.

Department Records....................................See Section B.

Investment Committee Minute Books.....................See Section B.3.a.

Preferred Securities..................................See Section A.4.c.

Stock Issuances.......................................See Section A.4.c.

Tax Records...........................................See Section B.1.c.

Tax Returns...........................................See Section B.1.c.

V

Vouchers................................................See Section A.1.c.

W

Wire Transfer Log.......................................See Section A.2.d.

 

 
 
 
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