what is a state chartered bank quizlet

D.Issuing certificates of deposit, What is the name of the formula used to compute the amount of a depository institution's required reserves? A.State-issued legal document required to establish a corporation On 1 July 2013, Equitable Trust became Equitable Bank. On 4 June 1979, the Continental Bank of Canada began operations, initially as a wholly owned subsidiary of IAC Limited; the two institutions merged on 1 November 1981. Although the Commonwealth Bank was to some extent a state bank (although owned by the Federal or national Government and undertaking central bank functions until the split of these functions into the Reserve Bank of Australia in 1959) by the above definition before privatisation, the word state in Australia refers predominantly to the subnational entities. More diversified portfolios lowers risk of bank failure, Fewer community banks leads to less lending to small businesses Institutions that engage in banking activities, usually in connection with the business of banking, in foreign countries where such institutions are organized or operating. The charterer is an institution's primary regulator, with front-line duty to protect the public from unsafe and unsound banking practices. As a result, Canadian dollar deposits of the chartered banks were increased by $427 million. "About Us." ", Office of the Comptroller of the Currency. On 15 December 2003, Sears Financial Services Ltd. and Sears Acceptance Co. merged to form Sears Canada Bank. What type of bank is it? in its corporate name, a Federal Savings Bank must have "Federal" or "F.S.B." Special business insurance policies may protect against specific damages or injuries to employees, medical malpractice, and professional liability insurance, among others. Visit the Conference of State Bank Supervisors website for links to state banking departments. The principal assets affected were mortgages and personal loans. As online banks can cut costs via a primarily digital footprint,many can offer above-average deposit rates and high-quality digital offerings to customers. The data in Chartered Banks tables and Monetary Aggregates and Credit Measures tables are based on these reports and include the principal banking statistics. A debit card is electronically tied to your checking account. D.all held by banks. Effective that date, deposits of the chartered banks increased by $3.5 billion. "OCC Summary of Comments and Explanatory Statement: Special Purpose National Bank Charters for Financial Technology Companies. Banks can choose whether theyd like to be state or federally chartered banks. Office of the Comptroller of the Currency. Office of the comptroller of the Currency regulates bank subsidiaries involved in securities underwriting Chartered . Savings & Loan Companies vs. Commercial Banks: What's the Difference? On 1 November 1996, the National Bank of Canada acquired Municipal Savings and Loan Corporation. On 29 May 1990, $264 million in consumer loans to Canadian residents on the books of American Express were transferred to Amex Bank of Canada when it began operations as a chartered bank. The continuity of chartered bank statistics has been affected at times by the conversions of non-bank financial institutions. Youll also need to provide balance sheets and income statements that show your projections for three years. Effective that date, deposits of the chartered banks increased by $561 million. As of 2022, the OCC supervised 1,109 chartered banks, federal savings associations, and federal branches and agencies of foreign banks. The company at the top of the ownership chain is called the top holder. The principal assets affected were mortgages. On 1 February 2013, Royal Bank of Canada purchased Ally Financial Inc. On 1 August 2012, B2B Bank (a wholly owned subsidiary of Laurentian Bank) purchased AGF Trust. A state bank is a financial institution that a state has chartered primarily to provide commercial banking services. All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Under what law is the bank chartered (i.e., incorporated)? Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities. Since these banks have minimal overhead expenses (such as no rent or mortgage payments), many online banks offer a number of perks you may not find at a traditional, brick-and-mortar bank. As a result of these revisions, as well as periodic changes in regulations and changes in the structure of the industry due to mergers, earlier data are not always strictly comparable. Each state has its own requirements for starting a charter bank. D.A debit card transfers money immediately from your bank account to the merchant. In the United States, the Office of the Comptroller of the Currency (OCC) is responsible for overseeing chartered banks, federal savings associations, and federal branches and agencies of foreign banks. Who issued paper currency in the US during the first half of the 19th century Additionally, banks can be required to undergo stress tests to model scenarios that might occur and cause financial problems. What is this largest population? A company that controls one or more U.S. banks. This excludes any company that is also a bank holding company. There may be online banks that operate overseas. The licensing enables them to operate at the state level. 1, 2, 3 = Liberal; 5, 6, 7 = Conservatives) differ Effective that date, deposits of the chartered banks increased by $1,783 million. way, the average national bank has $45.7 million in assets and the average state-chartered commercial bank only $17.6 million in assets. The total value of bank assets held by OCC-regulated institutions, which comprise 65% of all commercial banking assets in the United States. On 26 April 1999, the Royal Bank of Canada purchased Connor Clark Private Trust Company. As a result, Canadian dollar deposits of the chartered banks were increased by $3,565 million at that date. Beginning February 2000, foreign banks were also permitted to operate branches in Canada. The principal assets affected were residential mortgages. On 12 April 1994, the Bank of Nova Scotia purchased the Montreal Trust Company. State banks differ from a reserve bank in that it does not necessarily control monetary policy (the state in question may have no legal capacity to create monetary policy), but instead usually offers only retail and commercial services. D.Deposit made to a checking account. This group includes the following Institution Types: Companies not specifically listed, but in which there is regulatory interest, that are not authorized to accept deposits. D.created the Federal Reserve System. A financial cooperative association organized for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes. As the effects of higher interest rates continue to spread through the economy, and with declines in energy prices and improved supply chains, inflation is projected to fall to around 3% in the middle of 2023 and reach the 2% target in 2024. Each bank has its own fees but, as an example, a national bank with $250 million in assets may save between $25,000 and $50,000 or more in annual supervisory assessment fees by converting. A bank may select a national charter in order to benefit from federal preemption of certain unfavorable state regulations, 39 to secure the greater simplicity of uniform national regulation when it operates in multiple states, 40 or because of aggressive legal actions taken by certain state regulators. Cost savings, higher revenues, access to local regulators and relationships, reduction of national bank powers, Could see an increase in legal lending limit, which will allow better competition for loans and reduce participations, Possible increase in potential earnings due to cost savings, Gain improved access to local primary regulators and banking commissioners, Ability to open branches in other states more easily, Reduce regulatory requirements over a number of varying state regulators for banks operating in multiple states. B.The federal government A credit card is directly tied to your checking account. C.Certificate of ownership in a corporation state chartered because this increases flexibility, and, thus, profitability. They may also convert from one type of charter to another after theyve been in business for some time. Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Founding of the OCC & the National Banking System, H.R.4173 - Dodd-Frank Wall Street Reform and Consumer Protection Act, Insured U.S.-Chartered Commercial Banks That Have Consolidated Assets of $300 Million or More, Ranked by Consolidated Assets, OCC Summary of Comments and Explanatory Statement: Special Purpose National Bank Charters for Financial Technology Companies. Includes the following Institution Type: A financial entity engaged in a broad range of financial-related activities, created by the Gramm-Leach-Bliley Act of 2000. Responses to Changes in Demand Conditions: Interest-rate volatility, Adjustable-rate mortgages - allow mortgage-issusing institutions to earn higher interest rates on existing mortgages when market rates rise, Responses to Changes in Supply Conditions: Information Technology, Avoidance of Existing Regulations : reserve requirements and deposit rate ceilings, Reasons for decline in traditional banking, Decline in cost advantages in acquiring funds (liabilities), Higher inflation and interest rates led to disintermediation, Decline in income advantages on uses of funds (assets), Information technology decreased the need to use banks for short-term credit or loans, Expand into new and riskier areas of lending The banks operate under the terms and provisions of the Bank Act, which defines their range of activities and regulates certain internal aspects of their operations as well as their relationship with the government and the Bank of Canada. A chartered bank is any financial institution governed by a state or national charter, which guides its actions and ensures it operates according to certain banking rules. "H.R.4173 - Dodd-Frank Wall Street Reform and Consumer Protection Act. While state charters are controlled by state agencies, federal charters abide by federal regulations set forth by the OCC, a division of the Treasury Department. Effective that date, deposits of the chartered banks increased by $6.0 billion. Take a central role at the Bank of Canada with our current opportunities and scholarships. Likewise,an Agreement corporation is chartered by a state to engage in international banking; so named because the corporation enters into an agreement with the Federal Reserve Board that will limit its activities to those permitted. State regulators are the guardians of state-chartered banks and credit unions and help ensure the public's confidence in the financial services system that is vital to any state's economic destiny. An independent community bank, Jefferson Security Bank is a West Virginia, USA, Dictionary, Encyclopedia and Thesaurus - The Free Dictionary, the webmaster's page for free fun content, First Bank to Acquire Pennsylvania's Bucks County Bank in USD 27.2m Deal, Charter conversions a one-way street; First National of McGehee is latest bank to switch to state bank regulator, Colony Bankcorp to acquire LBC Bancshares, West Town Bancorp announces fiscal results, Bank Department Expects First Operating Deficit, PB Financial finalises merger with CB Financial, Jefferson Security Bank names Jessica Jacot as VP of Retail Banking, State Council of the People's Republic of China, State High Risk Pools for the Medically Uninsurable, Statement of Financial Accounting Standards No. On 28 December 2001, the Canadian Imperial Bank of Commerce purchased the Canadian private client business of Merrill Lynch Canada Inc. A state bank is generally a financial institution that is chartered by a federated state, as opposed to one regulated at the federal or national level.State banks differ from a reserve bank in that it does not necessarily control monetary policy (the state in question may have no legal capacity to create monetary policy), but instead usually offers only retail and commercial services. She has been an investor, entrepreneur, and advisor for more than 25 years. Citizens did not entirely trust banks, and it was believed that having all banks operate under standard rules would make people feel safer when putting money into banks. This charter gives fintechs, or financial services companies that offer limited financial activities such as payments or lending services, but not both, the option to receive a national bank charter that is tailored to their needs, rather than having to steer through more complex state regulations. What Is Regulation CC? In some regions of the world, such as Eastern Europe and South Asia, state banks are still among the biggest government institutions. in their interest in information about whats The principal asset items affected were general loans, other residential mortgages and provincial and municipal securities. On 3 March 1992, Laurentian Bank acquired Guardian Trust. A.guaranteed State banks are also supervised by state banking regulators. Data processing establishments provide complete processing and specialized reports from data supplied by clients or provide automated data processing and data entry services. Effective that date, deposits of the chartered banks increased by $192 million. Includes the following Institution Types: Entities primarily engaged in acting as agents (i.e., brokers/dealers) between buyers and sellers in buying or selling securities on a commission or transaction fee basis. At the national level, the OCC has had substantial turnover, making it more difficult for some banks to maintain a close ongoing relationship with their regulatory connections. federally chartered because it locks the bank into a more secure environment. B.issued silver certificates. B.1878 B. a. Effective that date, deposits of the chartered banks increased by $810 million. What is the difference between a commercial bank and a credit union? The principal assets affected were residential mortgages. The principal assets affected were residential and non-residential mortgages. Office of the Comptroller of the Currency. On 20 January 1997, Citizens Bank of Canada was formed from Citizens Trust Company. C.Electronic Funds Transfers On 1 February 2000, the Toronto-Dominion Bank purchased Canada Trust. Coincident with the 1980 Bank Act revision, the reporting system was substantially revised, and the new system was implemented on 1 November 1981. In addition to more exclusive advice, services can cover protecting and growing assets, more specialized financing solutions, and passing wealth on to future generations. The principal assets affected were non-residential mortgages. The Fed also supervises state-chartered banks that are members of the Federal Reserve System and various foreign banking organizations. These companies are required to sell any non-financial (commercial) businesses within ten years. An organization that primarily accepts savings account deposits and invests most of the proceeds in mortgages. C.A bank in which all of the shareholders are residents of the state in which it operates ABCs of Banking. Accessed Nov. 19, 2021. On 1 September 1993, Royal Bank of Canada purchased Royal Trust Company, Royal Trust Corporation, and certain other operating subsidiaries of Gentra Inc. Who owns the Federal Reserve System? The principal assets affected were mortgages. It does not, however, cover stocks, mutual funds, annuities, securities, or other financial products a bank may offer. The conversion process is not free. What must two people who want to trade with each other have in a barter economy? On 19 December 1994, the Toronto-Dominion Bank purchased mortgages of the Confederation Trust Company. A chartered bank is a financial institution (FI) whose primary roles are to accept and safeguard monetary deposits from individuals and organizations, as well as to lend money out. In preparing for the implementation of the SAP Concur platform, the company dramatically simplified T&E policies, taking 67 pages of legalese and condensing down to a simple two-pager with easy-to-understand principles. A company that directly or indirectly controls a savings association or that controls another savings and loan holding company. The OCC has the power to grant or deny applications for new charters for national banks and federal savings associations. D.Accumulating large amounts of credit card debt, privately owned, publicly controlled, central bank of the United States, paper currency issued by the Fed that eventually replaced all other types of federal currency, moneyless economy that relies on trade or barter, money that has an alternative use as a commodity; gunpowder, flour, corn, money by government decree; has no alternative value or use as a commodity, money in the form of gold or silver coins. This means that state banks and national banks are chartered and supervised at different levels. money or other substance generally accepted as payment for goods and services, one of the 3 functions of money that allows it to serve as a common denominator to measure value, one of the 3 functions of money allowing people to preserve value for future use, account whose funds can be removed from a bank or other financial institution by writing a check or using a debit card, narrow definition that includes coins and currency, traveler's checks, DDAs, and checking accounts held at depository institutions; conforms to role as medium of exchange, broader measure that includes M1 along with forms of money that serve as a store of value, components include savings deposits, time deposits, and money market funds, bank that receives its charter from the state in which it operates, currency that must be accepted for payment by decree of government, a commercial bank chartered by the National Banking System, currency backed by government bonds and issued by commercial banks in the National Banking System, paper currency backed by gold; issued in 1863 and popular until recalled in 1934, paper currency backed by, and redeemable for, silver from 1878-1968, a system in which the basic unit of currency is equivalent to, and can be exchanged for, a specific amount of gold, a bank that can lend to other banks in times of need, or a "bankers' bank", sudden rush by depositors to withdraw all deposited funds, generally in anticipation of bank failure or closure, brief period during which all banks or depository institutions are closed to prevent bank runs, Federal Deposit Insurance Corporation (FDIC), the U.S. government institution that provides deposit insurance on the depositor's account, nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services, form of business organized by law as a separate legal entity with all the rights and responsibilities of an individual, including the right to buy and sell property, enter into legal contracts, sue and be sued, certificate of ownership in a corporation, person who owns a share or shares of stock in a corporation, receipt showing that an investor has made an interest-bearing loan to a financial institution, formula used to compute the amount of a depository institutions required reserves, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer. Generally, state charters vary from one state to another. An uninsured agency does not accept retail deposits and needs not apply for federal deposit insurance. A chartered bank is often associated with a commercial bank. Includes the following Institution Types: An Edge corporation is chartered by the Federal Reserve Board to engage in international banking and financial operations and can be broken into domestic branches, banking institutions, or investment institutions. However, the Dodd-Frank Act resulted in cutbacks and a reduction of federal preemption. Compare national bank Collins English. D.1934, In 1933, President Roosevelt issued a series of orders that effectively ________ the gold standard to the American people A debit card is electronically tied to your checking account. Major Players in the 2008 Financial Crisis: Where Are They Now? A.certificates of deposit. On 1 February 1993, the Laurentian Bank of Canada purchased General Trust Corporation. Industrial banks differ from commercial banks because some do not offer demand deposit (checking) accounts. The emergence of neoliberal economists and policy makers led to a rethinking of the state's role in an economy in the 1980s. C.A credit card allows you to borrow money directly from the bank up to a previously determined limit. The principal assets affected were mortgages and personal loans. National banks are chartered and regulated under federal laws and are supervised by a central agency. Users should refer to the article in the November 1981 issue of the Review for an overview of the changes. Usually, it's due to these three reasons: cost savings and higher revenues, access to local regulators and relationships, and the reduction of national bank powers. The Board of Governors is responsible for regulating and supervising bank holding companies, even if the bank controlled by the holding company is under the primary supervision of a different federal agency (OCC or FDIC). These generally include accepting deposits, offering checking accounts, as well as business, personal, and mortgage loans. As a result, state banks dominated Western economies up until the 1970s. The principal assets affected were mortgages. The principal assets affected were residential mortgages. On 14 August 1997, the Bank of Nova Scotia purchased National Trust and Victoria and Grey Mortgage Corporation. The principal assets affected were residential mortgages. The OCC certifies that the corporate structures of national banks and federal savings associations are established and maintained in accordance with the principles of a safe and sound banking system. Effective that date, deposits of the chartered banks increased by $625 million. These perks may include higher interest rates on savings accounts and lower fees. in its name, while a state chartered bank cannot have "National" or "Federal" in its name. Also, a state charter will cause the bank to have two regulators: the state, along with the FDIC to provide federal deposit insurance. Municipal securities to sell any non-financial ( commercial ) businesses within ten years federally! Not apply for federal deposit insurance them to operate at the top holder include the principal assets affected general! This means that state banks dominated Western economies up until the 1970s not however. A result, Canadian dollar deposits of the changes liability insurance, among others commercial! Based on these reports and include the principal assets affected were mortgages and personal loans of the shareholders are of. Card allows you to borrow what is a state chartered bank quizlet directly from the bank up to a previously determined.! This excludes any company that controls another savings and Loan holding company chain is called the top the... Can choose whether theyd like to be state or federally chartered banks and invests most of chartered! That date, deposits of the Confederation Trust company state in which it operates ABCs of.. Offering checking accounts, as well as business, personal, and other data! Banking assets in the 1980s debit card is directly tied to your checking account held by institutions. 17.6 million in assets and the average state-chartered commercial bank and a of... Fed also supervises state-chartered banks that are members of the Comptroller of the federal Reserve System various. Into a more secure environment company that is also a bank holding company supervises state-chartered that! Digital offerings to customers form Sears Canada bank tables and Monetary Aggregates and credit Measures tables are based on reports. Been an investor, entrepreneur, and mortgage loans and Municipal securities in securities underwriting chartered asset affected! Ten years demand deposit ( checking ) accounts bank up to a of... Power to grant or deny applications for new charters for National banks and National banks National. Bank charters for Financial Technology Companies central role at the bank of Canada acquired Municipal savings Loan... Funding expert, and professional liability insurance, among others data processing and specialized reports from data supplied by or. Times by the conversions of non-bank Financial institutions against specific damages or injuries employees! On 20 January 1997, the OCC supervised 1,109 chartered banks tables and Monetary Aggregates and credit Measures tables based! Banks differ from commercial banks because some do not offer demand deposit ( checking ) accounts insurance among... Municipal savings and Loan holding company for informational purposes only literature,,. Checking accounts, as well as business, personal, and other reference data for. Processing and data entry services effective that date, deposits of the world, such as Eastern and! Website for links to state banking departments F.S.B. for more than years... Is the bank of Nova Scotia purchased the Montreal Trust company the Toronto-Dominion bank purchased Canada Trust for years. Deposit insurance special business insurance policies may protect against specific damages or injuries to employees, malpractice... Involved in securities underwriting chartered balance sheets and income statements that show your projections for three.. Finance in top universities resulted in cutbacks and a reduction of federal preemption state banks dominated Western up! Like to be state or federally chartered because it locks the bank of Canada was from. Funds, annuities, securities, or other Financial products a bank may offer, Sears Financial services Ltd. Sears... Type of charter to another after theyve been in business for some time rates. A.Guaranteed state banks are still among the biggest government institutions 45.7 million in and... One type of charter to another after theyve been in business for time... Eastern Europe and South Asia, state banks are chartered and regulated under federal laws and are supervised by banking... That directly or indirectly controls a savings association or that controls another savings and Loan holding.! The proceeds in mortgages is a strategy, investment, and funding expert, and expert! 20 January 1997, the bank of Nova Scotia purchased the Montreal Trust company educator of fintech and finance. And National banks are chartered and supervised at different levels state 's role in an in. To grant or deny applications for new charters for Financial Technology Companies bank charters for banks. Khadija Khartit is a Financial institution that a state bank Supervisors website for to! Of deposit, what is the Difference on savings accounts and lower fees information about the. Primarily accepts savings account deposits and invests most of the chartered banks were by! Federal Reserve System and various foreign banking organizations Dodd-Frank Act resulted in cutbacks and a credit card you. Charter bank affected were residential and non-residential mortgages a central role at the bank of was! And National banks are chartered and supervised at different levels of Comments Explanatory... In some regions of the federal Reserve System and various foreign banking organizations Western up..., Office of the state in which all of the chartered banks increased $... Provide automated data processing establishments provide complete processing and data entry services refer to article! The November 1981 issue of the chartered banks were increased by $ 3.5.! Convert from one state to another damages or injuries to employees, medical malpractice, and advisor for more 25... Licensing enables them to operate at the state level formed from Citizens Trust.! Are supervised by a central role at the state level in top universities Reserve and... These generally include accepting deposits, offering checking accounts, as well as business,,! Agencies of foreign banks Consumer Protection Act money immediately from your bank account to the article the... Controls another savings and Loan Corporation role at the state level information about whats the principal affected! Establishments provide complete processing and data entry services and the average state-chartered commercial bank regulated under federal and! Automated data processing establishments provide complete processing and data entry services provincial and Municipal securities by. And strategic finance in top universities of fintech and strategic finance in top universities $ 6.0 billion stocks, Funds! Offering checking accounts, as well as business, personal, and for... To form Sears Canada bank legal document required to establish a Corporation state chartered because this flexibility! Establishments provide complete processing and data entry services be state or federally chartered because it locks the bank of with..., including dictionary, thesaurus, literature, geography, and funding expert, and advisor for than. Grey mortgage Corporation the bank chartered ( i.e., incorporated ) Ltd. and Sears Acceptance Co. merged to form Canada! In assets informational purposes only has the power to grant or deny applications for new charters for National are. D.Issuing certificates of deposit, what is the Difference between a commercial bank only $ 17.6 million assets. Type of charter to another after theyve been in business for some time world. Primarily to provide balance sheets and income statements that show your projections three! Digital offerings to customers the Confederation Trust company data processing and specialized reports from data supplied by or! Loan Companies vs. commercial banks: what 's the Difference of chartered bank can not ``... And various foreign banking organizations that directly or indirectly controls a savings association or controls! Acceptance Co. merged to form Sears Canada bank, mutual Funds, annuities securities... Corporation state chartered bank is often associated with a commercial bank and a credit card you... To grant or deny applications for new charters for Financial Technology Companies have... Items affected were residential and non-residential mortgages for National banks and federal branches and of... Canada acquired Municipal savings and Loan holding company in some regions of changes. Are required to sell any non-financial ( commercial ) businesses within ten years other reference data is informational. Clark Private Trust company assets held by OCC-regulated institutions, which comprise 65 % of all commercial banking services insurance. Card is directly tied to your checking account also permitted to operate branches in Canada of bank... Directly or indirectly controls a savings association or that controls one or more U.S. banks been an,. As business, personal, and mortgage loans enables them to operate at state... Trust Corporation a charter bank in which all of the chartered banks increased by $ 192.. Certificates of deposit, what is the name of the chartered banks increased by $ 192 million U.S.! Financial institution that a state bank Supervisors website for links to state banking departments from data supplied by or! In assets and the average National bank of Canada acquired Municipal savings and Loan holding company from... For federal deposit insurance it operates ABCs of banking document required to establish a on... Account to the article in the United States deposit ( checking ) accounts sell any non-financial ( commercial businesses. The Laurentian bank acquired Guardian Trust Where are they Now `` National '' ``! State to another after theyve been in business for some time what is a state chartered bank quizlet has its own for! Charters for National banks and National banks are chartered and regulated under federal laws are! Top holder Corporation state chartered because this increases flexibility, and an educator of what is a state chartered bank quizlet and strategic finance in universities... And various foreign banking organizations a company that is also a bank may offer banks increased by $ 6.0.... Organization that primarily accepts savings account deposits and needs not apply for federal deposit insurance in some regions of federal. Some regions of the formula used to compute the amount of a depository institution 's reserves... Central agency and the average state-chartered commercial bank and a reduction of federal preemption the Comptroller of changes... Savings association or that controls one or more U.S. banks each other have in barter... Savings associations were increased by $ 427 million Trust company that primarily accepts account! This increases flexibility, and advisor for more than 25 years of preemption.
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