I'm reviewing print ads and the FDIC logo is present but the only thing that is legible is the word "FDIC". You can not read the line below or above and you can not make out the "Backed by the full faith and credit of the United States Government" statement on the left hand side. Is this OK? I noticed that the logo on the FDIC's homepage is the same way.

I know that the regulation states that you can cut off the small print above and below but it doesn't mention anything about the legibility of the statement to the left of the wird FDIC.

We do not use the FDIC logo. We always have the text "Member FDIC", easier and usually more legible.