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IMPORTANT
DEPOSIT INSURANCE NOTIFICATION
On December 31, 2010, the
Transaction Account Guarantee Program (TAG)
expired and on the same date, the FDIC amended
its deposit insurance regulations to implement
Section 343 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act, providing for
unlimited deposit insurance for
“non-interest-bearing transaction accounts”
including Interest on Lawyers Trust Accounts (IOLTAs)
for two years commencing December 31, 2010.
However, this change differs from the
previous TAG Program in that traditional
checking accounts that may earn interest and NOW
accounts are not included in the definition of
non-interest-bearing transaction accounts and
therefore are no longer eligible for deposit
insurance coverage above standard maximum
deposit insurance limits.
If you have any questions, please do not hesitate
to contact William J. Lidestri, Senior Vice
President directly at (860) 298-6162.
NOTICE
OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE
FOR TRANSACTION ACCOUNTS
All funds in a
“non-interest-bearing transaction account”
are insured in full by the Federal Deposit
Insurance Corporation from December 31, 2010,
through December 31, 2012.
This temporary unlimited coverage is in
addition to, and separate from, the coverage of
at least $250,000 available to depositors under
the FDIC’s general deposit insurance rules.
The term
“non-interest-bearing transaction account”
includes a traditional checking account or
demand deposit account on which the insured
depository institution pays no interest and
includes Interest on Lawyers Trust Accounts (IOLTAs).
It does not include other accounts, such
as traditional checking or demand deposit
accounts that may earn interest, NOW accounts
and money-market deposit accounts.
For
more information about temporary FDIC insurance
coverage of transaction accounts, visit www.fdic.gov.
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