On November 5, 2012, the Federal Deposit Insurance Corporation issued a notice (the “Notice”) reminding FDIC-insured depository institutions (“IDIs”) that absent a change in law, effective January 1, 2013, noninterest-bearing transaction accounts (including interest on Lawyer Trust Accounts/IOLTAs from December 31, 2010 through December 31, 2012) will no longer be insured by the FDIC as a separate ownership category.
Thereafter, such deposits at an IDI will be aggregated with any other deposits held by the same person in the same ownership category, with the total insured up to the standard maximum deposit insurance amount, which currently is $250,000.
The Notice further:
| (1) |
provides IDIs with guidance regarding the removal of all notices posted in IDIs’ main offices, branches and websites, which describe the temporary unlimited coverage for noninterest-bearing transaction accounts; and |
| (2) |
encourages IDIs to provide adequate advance notice to depositors of such accounts of the pending reduction in FDIC deposit insurance coverage beginning January 1, 2013. |
Accordingly, many IDIs will need to undertake the following actions as a result of the expiration:
| • |
Remove certain notices previously issued in connection with temporary unlimited FDIC insurance coverage for certain transaction accounts; |
| • |
Issue reminder notices of the expiration; |
| • |
Review account agreements and disclosure statements to determine if any amendments or modifications are necessary; |
| • |
Provide collateral in accordance with Florida law for accounts of governmental depositors exceeding $250,000 after December 31, 2012; and |
| • |
Update call report data for March 31, 2013 in accordance with prescribed regulatory guidances. |
If you have any questions regarding the Notice or the obligations of IDIs in connection therewith, please contact Clemente Vazquez-Bello, Andres A. Fernandez or Gabriel Caballero.
For more information, read the Notice of expiration: temporary unlimited coverage for noninterest-bearing transaction accounts (FDIC, 11/5/12)
|
This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication. Established in 1925, Gunster is one of Florida’s oldest and largest full-service law firms. The firm’s clients include international, national and local businesses, institutions, local governments and prominent individuals. Gunster maintains its presence in Florida with offices in Fort Lauderdale, Jacksonville, Miami, Palm Beach, Stuart, Tallahassee, Tampa, The Florida Keys, Vero Beach and its headquarters in West Palm Beach. Gunster is home to more than 165 attorneys and 200 committed support staff, providing counsel to clients through 18 practice groups including banking & financial services; business litigation; construction; corporate; environmental & land use; government affairs; health care; immigration; international; labor & employment; leisure & resorts; private wealth services; probate, trust & guardianship litigation; professional malpractice; real estate; securities and corporate governance; tax; and technology & entrepreneurial companies. Gunster is ranked among the National Law Journal’s list of the 250 largest law firms. |
