stability and public confidence in the nations financial 1813(l), 1813(m), 1817(i), 1818(q), 1819(a)(Tenth), 1820(f), 1820(g), 1821(a), 1821(d), 1822(c). 101(a)(1) and 102(a)(1) of title I of the Act of October 28, 1974 (Pub. 2231), effective October 30, 2004; section 312(c) of (c) Single-name accounts containing community property funds. A joint deposit account shall be deemed to be a qualifying joint account, for purposes of this section, only if: (i) All co-owners of the funds in the account are natural persons (as defined in 330.1(l)); (ii) Each co-owner has personally signed, which may include signing electronically, a deposit account signature card, or the alternative method provided in paragraph (c)(4) of this section is satisfied; and. The Federal Deposit Insurance Act (FDI Act) specifically governs the FDIC. Stat. the day of the merger of the Bank Insurance Fund and the Savings The naming of the same beneficiary in more than one revocable trust account, whether it be a payable-on-death account or living trust account, does not increase the total coverage amount.) A partnership shall be deemed to exist, for purposes of this paragraph, any time there is an association of two or more persons or entities formed to carry on, as co-owners, an unincorporated business for profit. The Federal Deposit Insurance Corporation (FDIC) is an (1)FOREIGN BANK.--The term "foreign bank" has the 2404), effective December 17, 1993], [Source:Section 2[3(x)] of the Act of September 21, 1950 (Pub. 1473), effective section 503(b) of title V of the Act of August 10, 1987 (Pub. In deposit accounts where there are multiple levels of fiduciary relationships, there are two methods of satisfying paragraphs (b)(1) and (b)(2) of this section to obtain insurance coverage for the interests of the true beneficial owners of a deposit account. 874), effective September 21, 1950, as amended by The site is secure. Deposit insurance 1816. depository institution" means a new national bank or Federal savings section 6(c)(4) of the Act of September 17, 1978 (Pub. Dated at Washington, DC, on May 24, 2023. Reform Act of 2005; section 123(d) of title I of the Act of October 16, 23, 2006; 73 FR 61660, Oct. 17, 2008; 74 FR 47716, Sept. 17, 2009]. established, including without being limited to, escrow funds, funds Keep up with FDIC announcements, read speeches and (h)Insured Bank.--The term "insured bank" means any Accounts maintained by a mortgage servicer, in a custodial or other fiduciary capacity, which are comprised of payments by mortgagors of principal and interest, shall be insured for the cumulative balance paid into the account by the mortgagors, up to the limit of the SMDIA per mortgagor. 873; 12 U.S.C. 21, 2010]. The aggregate beneficial interests total $815,000. institution. L. No. 874), effective September 21, 1950, as amended by Summary of S.1790 - 118th Congress (2023-2024): A bill to amend the Federal Deposit Insurance Act to clarify that the Federal Deposit Insurance Corporation and appropriate Federal regulators have the authority to claw back certain compensation paid to executives, and for other purposes. L. No. 104--208; 110 Stat. September 17, 1978 (Pub. 103--325; 108 September 17, 1978; as amended by section 111(e) of title I of the Act December 19, 1991 (Pub. FAR). L. No. June 16, 1933 The Glass-Steagall Act effectively separated commercial banking from investment banking and created the Federal Deposit Insurance Corporation, among other things. 101--73; 103 Stat. established under section 11(a)4. In the Matter of CAROLYN E. FLYNN, A Former Institution-Affiliated Party of COMMUNITY FINANCIAL SERVICES BANK. All deposits held by a depositor in the same right and capacity in more than one insured branch of the same foreign bank shall be added together for the purpose of determining the amount of deposit insurance. (ii) In addition, each such official custodian depositing such funds in an insured depository institution outside of the state comprising the public unit or wherein the public unit is located, shall be insured in the amount of up to the SMDIA in the aggregate for all deposits, regardless of whether they are time, savings or demand deposits. sharing sensitive information, make sure youre on a federal The FDIC was originally created by the Banking Act of 1933, which amended the Federal Reserve Act of 1913. This contact form is only for website help or website suggestions. Before [Source:Section 2[3(y)] of the Act of September 21, 1950 (Pub. The FDIC provides a wealth of resources for consumers, term "insured depository institution" includes any uninsured Check out the resources on this page to learn more about deposit insurance. (a) Separate insurance coverage. L. No. institution" means any bank or savings association. Except as indicated in this paragraph (a)(1) or as provided in 330.3(j), in determining the amount of insurance available to each depositor, the FDIC shall presume that deposited funds are actually owned in the manner indicated on the deposit account records of the insured depository institution. Coverage is determined under the general coverage provisions in paragraph (a) of this section, and not this paragraph (e). 873, enacted September 21, 1950, is a statute that governs the Federal Deposit Insurance Corporation (FDIC). 109--173; 119 Stat. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. (Example: Account Owner A establishes a payable-on-death account naming a pet as beneficiary with a balance of $100,000. 330.14 Retirement and other employee benefit plan accounts. All deposits in an insured depository institution which are maintained in the same right and capacity (by or for the benefit of a particular depositor or depositors) shall be added together and insured in accordance with this part. 896; term "insured deposit" means an insured deposit as defined in deposit" means the amount of any deposit of any depositor at any on the books and records of an office of such bank or savings The balance in the account is $1,750,000. 3610), effective date shall take effect on September 21, 1950 (Pub. You can learn more about the process December 31, 1970; section 301(a) of title III of the Act of November (1) Any obligation of an insured depository institution which is payable solely at an office of that institution located outside any State, as the term State is defined in section 3(a)(3) of the Act (12 U.S.C. The aggregate beneficial interests total $1,440,000. The term substantial penalty or adjustment used in section 11(a)(8) of the Act means, in the case of a deposit having an original term which exceeds one year, all interest earned on the amount withdrawn from the date of deposit or for six months, whichever is less; or, in the case of a deposit having an original term of one year or less, all interest earned on the amount withdrawn from the date of deposit or three months, whichever is less. An unincorporated association shall be deemed to exist, for purposes of this paragraph, whenever there is an association of two or more persons formed for some religious, educational, charitable, social or other noncommercial purpose. International Banking Act of 1978; (C)any foreign bank which does not operate an insured branch; (D)any agency or commercial lending company other than a Federal (m) Non-contingent trust interest means a trust interest capable of determination without evaluation of contingencies except for those covered by the present worth tables and rules of calculation for their use set forth in 20.20317 of the Federal Estate Tax Regulations (26 CFR 20.20317) or any similar present worth or life expectancy tables which may be adopted by the Internal Revenue Service. B's combined ownership interest in all qualifying joint accounts would be $200,000 ($75,000 plus $125,000); therefore, B's interest would be fully insured. (c) A bank may not solicit funds for deposit on the basis that the bank will divide the funds into several accounts for the purpose of enabling the bank to pay the depositor more than two premiums within a twelve-month interval on the solicited funds. 4(a) of the Act of February 15, 2006 (Pub. check issued in the usual course of business for any purpose, including 111--203; 124 Stat. (a) Pass-through insurance. The interests of the co-owners of qualifying joint accounts, held as tenants in common, shall be deemed equal, unless otherwise stated in the depository institution's deposit account records. In the case of time deposits which mature within six months of the date the deposits are assumed and which are renewed at the same dollar amount (either with or without accrued interest having been added to the principal amount) and for the same term as the original deposit, the separate insurance applies to the renewed deposits until the first maturity date after the six-month period. Reserve System. L. No. "Federal depository institution" means any national bank, any If a corporation has divisions or units which are not separately incorporated, the deposit accounts of those divisions or units shall be added to any other deposit accounts of the corporation. At the same FDIC-insured institution, A establishes a payable-on-death account, with a balance of $1 million naming his two cousins, D and E as beneficiaries. 102--242; 105 Stat. Federal Deposit Insurance Corporation Dates: The effective date of the Final Rule is October 15, 2013. S.543 - Federal Deposit Insurance Corporation Improvement Act of 1991 102nd Congress (1991-1992) Law Hide Overview Subject Policy Area: Finance and Financial Sector View subjects Summary (2) Text (6) Actions (142) Titles (11) Amendments (42) Cosponsors (2) Committees (1) Related Bills (5) A's combined ownership interest in all qualifying joint accounts would be $300,000 ($75,000 plus $100,000 plus $125,000); therefore, A's interest would be insured in the amount of $250,000 and uninsured in the amount of $50,000. result, it may not include the most recent changes applied to the CFR. (3) Evidence of deposit ownership. The settlor of a revocable trust shall be presumed to own the funds deposited into the account. This is an automated process for 457), which are deposited in one or more deposit accounts shall be aggregated with any other deposited funds representing such interests of the same beneficiary in other employee benefit plans, or eligible deferred compensation plans described in section 457 of the Internal Revenue Code of 1986, established by the same employer or employee organization. 32693 Proposed Rules Federal Register Vol. [Search], (a)Definitions of Bank and Related Terms.--, [Source:Section 2[3(a)] of the Act of September 21, 1950 (Pub. When such funds are deposited by an insured depository institution acting as a trustee of an irrevocable trust, the insurance coverage shall be governed by the provisions of 330.13. 896; 70 Stat. bank" means any State bank which is not a member of the Federal 10, 1978 (Pub. associations in such State. 1538), effective October 15, 1982; and section 204(a) 101--73; 103 Stat. (1) Qualification requirements. 797; 64 Stat. All the rules discussed in this section are current through March 31, 2024. section 6(c)(2) of the Act of September 17, 1978 (Pub. Accounts maintained by a mortgage servicer, in a custodial or other fiduciary capacity, which are comprised of payments by mortgagors of taxes and insurance premiums shall be added together and insured in accordance with paragraph (a) of this section for the ownership interest of each mortgagor in such accounts. 101--73; 103 Stat. to time defined by the Board of Governors of the Federal Reserve System (C) Disclose, at each of the levels, the name(s) and interest(s) of the person(s) on whose behalf the party at that level is acting. L. the close of June 30, 1972. (1) Multiple plans. 91--609; 84 Stat. [63 FR 25756, May 11, 1998, as amended at 71 FR 14631, Mar. (a) Individual accounts. 2002], (b)Definition of Savings Associations and Related Terms.. If a corporation maintains deposit accounts in a representative or fiduciary capacity, such accounts shall not be treated as the deposit accounts of the corporation but shall be treated as fiduciary accounts and insured in accordance with the provisions of 330.7. (1)NATIONAL MEMBER BANK.--The term "national member The express indication that the account is held in a fiduciary capacity will not be necessary, however, in instances where the FDIC determines, in its sole discretion, that the titling of the deposit account and the underlying deposit account records sufficiently indicate the existence of a fiduciary relationship. Despite the general requirements of this paragraph (a)(1), if the FDIC has reason to believe that the insured depository institution's deposit account records misrepresent the actual ownership of deposited funds and such misrepresentation would increase deposit insurance coverage, the FDIC may consider all available evidence and pay claims for insured deposits on the basis of the actual rather than the misrepresented ownership. The insurance for funds held by an insured depository institution in its capacity as trustee of an irrevocable trust shall be determined in accordance with the following provisions: (1) Allocated funds of a trust estate. L. No. 191), effective August 9, What happens if my bank fails? switch to eCFR drafting site. (2) Official custodian of the funds of more than one public unit. This is because all funds that a depositor holds in both living trust accounts and payable-on-death accounts, at the same FDIC-insured institution and naming the same beneficiaries, are aggregated for insurance purposes and insured to the applicable coverage limits.). Browse our extensive research tools and reports. (2) The term employee benefit plan has the same meaning given to such term in section 3(3) of the Employee Retirement Income Security Act of 1974 (ERISA) (29 U.S.C. amended by section 3(b) of the Act of August 1, 1956 (Pub. 102--550; 106 Stat. This section applies regardless of whether the conjunction and or or is used in the title of a joint deposit account, even when both terms are used, such as in the case of a joint deposit account with three or more co-owners. rin 3064-ae68 . profiles, working papers, and state banking performance You can also consult the following resources: FDIC-Insured Institutions Reported Net Income of $79.8 Billion in First Quarter 2023, Remarks by Chairman Gruenberg at CFEs 2023 Bank On National Conference, FDIC Chairman Gruenberg Offers Testimony on State of U.S. Banking System, FDIC Board of Directors Issues a Proposed Rule on Special Assessment Pursuant to Systemic Risk Determination, FDIC National Survey of Unbanked and Underbanked Households, Quarterly Banking (5) Accounts of an Indian tribe. documentation of laws and regulations, information on to be operating substantially in the same manner as an industrial (B)is not a member of the Federal Reserve System. the Act of December 23, 1969 (Pub. 2. the Act of August 9, 1989 (Pub. basis, determine how much is insured, and what portion of your funds (if 1539), Silvergate, and waiving all rights that Silvergate may have pursuant to section 8 of the Federal Deposit Insurance Act, as amended (the "FDI Act") (12 U.S.C. Sections 3(r)-(s) were added by section 6(c)(6) of the Act of How do I get deposit insurance? agency" means the Comptroller of the Currency, the Board of which caused or is likely to cause more than a minimal financial loss your records. (a) Ownership rights and capacities. It was last amended by the public law listed in the As Amended Through . institution made available to a depositor by the Corporation as payment FEDERAL DEPOSIT INSURANCE ACT [Chapter 967 of the 81st Congress; 64 Stat. by section 334(b) of title III of the Act of [63 FR 25756, May 11, 1998, as amended at 71 FR 14631, Mar. Neither A nor B has any other revocable trust accounts at the same FDIC-insured institution. agency charged by law with the duty of winding up the affairs of a bank The trust also provides that the remainder of the trust assets shall belong to A's spouse. No. Accounts held by an agent, nominee, guardian, custodian or conservator. appraiser, or accountant) who knowingly or recklessly participates in--. "depository institution holding company" means a bank holding ), (g) For deposit accounts held in connection with a living trust that provides for a life-estate interest for designated beneficiaries, the FDIC shall value each such life estate interest as the SMDIA for purposes of determining the insurance coverage available to the account owner under paragraph (e) of this section. shall find and prescribe by regulation to be deposit liabilities by a State bank as defined in subsection (a)(2) of this section). federal reserve system . 1513), effective December 26, (2) For informal revocable trust accounts, the beneficiaries must be specifically named in the deposit account records of the insured depository institution. 908), effective August 1, 1956; section 910(b) of title IX of the Act L. No. 1813(a)(3)), is not a deposit for the purposes of this part. ), (h) Revocable trusts that become irrevocable trusts. [63 FR 25756, May 11, 1998, as amended at 64 FR 15656, Apr. 797; 64 Stat. (Example: Account Owner A has a living trust account with a balance of $1,500,000. 23, 2006]. bankers, analysts, and other stakeholders. L. No. Section 151 of this Act (adding Section 43 of the Federal Deposit Insurance Act), as amended by the Financial Services Regulatory Relief Act of 2006, Pub. 101--73; 103 Stat to exclude any other thing not referred to or described. 2286), effective December 19, 1991; section referred to or described. were insured by the Corporation on the day before August 9, 1989. As required by section 11(a)(8) of the Act (12 U.S.C. The maximum coverage afforded to A and B would be $1,500,000, determined by multiplying the number of owners (2) times the SMDIA ($250,000) times the number of different beneficiaries (3). 873) effective September 21, 1950, The deposit accounts of an entity which is not engaged in an independent activity (as defined in 330.1(g)) shall be deemed to be owned by the person or persons owning the corporation or comprising the partnership or unincorporated association, and, for deposit insurance purposes, the interest of each person in such a deposit account shall be added to any other deposit accounts individually owned by that person and insured up to the SMDIA in the aggregate. Rico, Guam, American Samoa, the Virgin Islands, or the Northern Mariana 1813(x)). (c) Accounts held by fiduciaries on behalf of two or more persons. of December 31, 1970 (Pub. special requirements on such banks governing the manner of investing section 2614(a) of title II of the Act of September 30, 1996 (Pub. (3) Split of authority or control over public unit funds. December 31, 1970; section 103 of title I of the Act of December 26, L. No. If you have comments or suggestions on how to improve the www.ecfr.gov website or have questions about using www.ecfr.gov, please choose the 'Website Feedback' button below. 23, 2006; 74 FR 47716, Sept. 17, 2009; 76 FR 41395, July 14, 2011; 84 FR 35027, July 22, 2019], (a) General rule. (a) Agency or nominee accounts. Notwithstanding the provisions in section 330.13 on the insurance coverage of irrevocable trust accounts, if a revocable trust account converts in part or entirely to an irrevocable trust upon the death of one or more of the trust's owners, the trust account shall continue to be insured under the provisions of this section. Definitions Relating to Depository Institutions. Federal assistance. 91--609; cognizable entity created under the laws of the United States or any 2266, effective August 9, 1989 (Pub. 88, No. 457); and. (d) Interests of beneficiaries outside the definition of beneficiary in this section. the credit given for money or its equivalent received or held by a bank to, or a significant adverse effect on, the insured depository SUMMARY: This bill limits the type of domestic insurance entities required to pay the portion of the Insurance Fund general assessment that supports the budgets of the Office of the Healthcare Advocate (OHA) and the Office of Health Strategy (OHS). In this case, because the balance of the account exceeds $1,250,000 (5) five times the SMDIA) and there are more than five different beneficiaries named in the trust, the maximum coverage available to A would be the greater of: $1,250,000 or the aggregate of each different beneficiary's interest to a limit of $250,000 per beneficiary. A corporation, partnership or unincorporated association shall be deemed to be engaged in an "independent activity" if the entity is operated primarily for some purpose other than to increase deposit insurance. in regulation D or any successor regulation issued by the Board of (d) Nonqualifying joint accounts. 89--695; 80 Stat. 101--73; 103 Stat. FDIC and Interagency Statements provide guidance for insured institutions. ), (e) Revocable trust accounts with aggregate balances exceeding five times the SMDIA and naming more than five different beneficiaries. L. No. 12 cfr part 323 . an insured depository institution or any subsidiary of such a service (i)an individual who is a citizen or resident of the United deposit, thrift certificate, investment certificate, certificate of Fact Sheets, Consumer Financial Protection Bureau (CFPB) Regulations, Office of the Comptroller of the Currency (OCC) Law and Regulations, Financial Crimes Enforcement Network (FinCEN) Statutes and Regulations. 23, 2006; 76 FR 41395, July 14, 2011]. Sections 3(a)-(o) derive from section 12B(c) of 95--369; If the deposit account records of an insured depository institution disclose the existence of a relationship which might provide a basis for additional insurance (including the exception provided for in paragraph (b)(1) of this section), the details of the relationship and the interests of other parties in the account must be ascertainable either from the deposit account records of the insured depository institution or from records maintained, in good faith and in the regular course of business, by the depositor or by some person or entity that has undertaken to maintain such records for the depositor. amended by section 3(d) of the Act of August 1, 1956 (Pub. or existing codification. conditionally or unconditionally, to a commercial, checking, savings, October 16, 1966 (Pub. As a result, A is insured in the amount of $250,000, but is uninsured for the remaining $25,000. Stat. The purpose of this part is to clarify the rules and define the terms necessary to afford deposit insurance coverage under the Act and provide rules for the recognition of deposit ownership in various circumstances. 103--204; 107 Stat. 1550), effective July 21, 2010], (c)Definitions Relating to Depository Institutions.--, [Source:Section 2[3(c)] of the Act of September 21, 1950 (Pub. change-in-control notice with the appropriate Federal banking agency section 6(c)(3) of the Act of September 17, 1978 (Pub. July 14, 1960 (Pub. 1989], (q)Appropriate Federal Banking Agency.--The term No person or entity in the chain of parties will be permitted to claim that they are acting in a fiduciary capacity for others unless the possible existence of such a relationship is revealed at some previous level in the chain. The FDIC is proud to be a pre-eminent source of U.S. (i) Insured deposit has the same meaning as that provided under section 3(m)(1) of the Act (12 U.S.C. (Example: A&B have a qualifying joint account with a balance of $150,000; A&C have a qualifying joint account with a balance of $200,000; and A&B&C have a qualifying joint account with a balance of $375,000. its capital; and. association located outside of any State, unless--, (i)such obligation would be a deposit if it were carried on the or pay the institution's or branch's obligations in the normal course history, career opportunities, and more. (g) Independent activity. (2)BANK HOLDING COMPANY.--The term "bank holding The FDIC will recognize such depository institution forwarding such items for the holders thereof as agent for such holders for the purpose of making an assignment to the FDIC of their rights against the insured depository institution in default and for the purpose of receiving payment on their behalf. (g)Savings Bank.--The term "savings bank" means a L. No. States, (ii)a partnership, corporation, trust, or other legally (o)Domestic Branch.--The term "domestic branch" Association Insurance Fund pursuant to the Federal Deposit Insurance (b) Corporation means the Federal Deposit Insurance Corporation. (2)STATE NONMEMBER BANK.--The term "State nonmember Challenge, Quarterly Banking Profile for First Quarter 2023, Quarterly Banking Profile for Fourth Quarter 2022, Quarterly Banking Profile for Third Quarter 2022, Financial Qualifying joint accounts, whether owned as joint tenants with the right of survivorship, as tenants in common or as tenants by the entirety, shall be insured separately from any individually owned (single ownership) deposit accounts maintained by the co-owners. 97--320; 96 Stat. The other agencies' laws and regulations displayed are maintained by the respective agency governed by those laws and responsible for those regulations. provision of the Federal Reserve Act which is made applicable under the 191), effective August 9, 1989]. by such new bank or other insured depository institution. This insurance shall be separate from, and in addition to, the insurance provided for any other deposits of the owners or the beneficiaries. meaning as in section 2(b) of the Bank Holding Company Act of 1956. The .gov means its official. Title 12 of the United States Code covers banks and banking, and is linked from the U.S. House of Representatives Office of the Law Revision Counsel (OLRC), which prepares the United States Code. This section applies to all accounts held in connection with informal and formal testamentary revocable trusts. Institution Letters, Policy of the Act of October 15, 1982 (Pub. 101--73; 103 Stat. Learn more. L. by regulation as necessary or appropriate in its judgment to carry out meaning given to such term in section 2(k) of the Bank Holding Company The amount of a deposit is the balance of principal and interest unconditionally credited to the deposit account as of the date of default of the insured depository institution, plus the ascertainable amount of interest to that date, accrued at the contract rate (or the anticipated or announced interest or dividend rate), which the insured depository institution in default would have paid if the deposit had matured on that date and the insured depository institution had not failed. 12 cfr part 225 . 92 Stat. under, (3)any shareholder (other than a bank holding company or savings 1981 (Pub. profiles, working papers, and state banking performance section 204(b) of title II of the Act of August 9, 1989 (Pub. (5)such other obligations of a bank or savings association as (b) Sole proprietorship accounts. (1)IN GENERAL.--Subject to paragraph (2), the term stability and public confidence in the nations financial A also has an individual account at the same FDIC-insured institution with a balance of $175,000. data. The deposit accounts of a depositor maintained in the same right and capacity at different branches or offices of the same insured depository institution are not separately insured; rather they shall be added together and insured in accordance with this part. The Code of Federal Regulations (CFR) is the official legal print publication containing the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government. company or a savings and loan holding company. (z)Federal Banking Agency.--The term "Federal banking Institution Letters, Policy 101--73; Under paragraph (e) of this section, the maximum coverage, as to each co-owned account owner, would be the greater of $1,250,000 or the aggregate amount (as to each co-owner) of the interest of each different beneficiary named in the trust, to a limit of $250,000 per account owner per beneficiary. 1 CFR 1.1 The owner must provide affirmative proof of such negotiation, in a form satisfactory to the FDIC, to substantiate his or her claim. sections 201 and 204(f)(4) of title II of the Act of August 9, 1989 (3) The value of the premium (in the case of merchandise, the total cost to the bank, including shipping, warehousing, packaging, and handling costs) does not exceed $10 for a deposit of less than $5,000 or $20 for a deposit of $5,000 or more. 1989 (Pub. The Federal Deposit Insurance Act of 1950, Pub. (B) Up to the SMDIA in the aggregate for all demand deposits. Federal Deposit Insurance Corporation Act (FDIC Act), September 21, 1950. https://fraser.stlouisfed.org/title/1101 , accessed on May 31, 2023. Community property funds deposited into one or more deposit accounts in the name of one member of a husband-wife community shall be treated as the individual account(s) of the named member, added to any other individual accounts of that person, and insured up to the SMDIA in the aggregate. "including" shall not be construed more restrictively than the L. No. 614), effective September 17, 1978], (i) New Depository Institution and Bridge Depository (ii)there is no reasonable prospect that the capital of the August 9, 1989]. October 16, 1966, and as amended by section 6(c)(5) of the Act of (A)any violation of any law or regulation; (1)DEPOSITORY INSTITUTION HOLDING COMPANY.--The term 875), effective September 21, 1950, as amended by 187 and 192), effective August 9, 97--110; 95 Stat. September 17, 1978. [63 FR 25756, May 11, 1998, as amended at 71 FR 14631, Mar. (p) Trust estate means the determinable and beneficial interest of a beneficiary or principal in trust funds but does not include the beneficial interest of an heir or devisee in a decedent's estate. 875), effective September 21, 1950, as amended by 1989; section 141(f) of title I and section 311(b)(5)(A) of title III (d) Accounts of a decedent and accounts held by executors or administrators of a decedent's estate. the Virgin Islands at which deposits are received or checks paid or Recognition of deposit ownership and fiduciary relationships. at, an office located in any State; and. (r) Trust interest means the interest of a beneficiary in an irrevocable express trust (other than an employee benefit plan) created either by written trust instrument or by statute, but does not include any interest retained by the settlor. 108-386; 118 Stat. The signature-card requirement of paragraph (c)(1)(ii) of this section shall not apply to certificates of deposit, to any deposit obligation evidenced by a negotiable instrument, or to any account maintained by an agent, nominee, guardian, custodian or conservator on behalf of two or more persons. The FDIC approved changes, on January 21, 2022, to the deposit insurance rules for revocable trust accounts (including formal trusts, POD/ITF), irrevocable trust accounts, and mortgage servicing accounts. 1989], (d)Definitions Relating to Member Banks.--, [Source:Section 2[3(d)] of the Act of September 21, 1950 (Pub. important initiatives, and more. (Example: Single ownership accounts and joint ownership accounts are insured separately from each other. 2355), effective December 19, 1991. section 101(g) of title I of the Act of August 10, 1987 (Pub. depository institution" means any State bank, any State savings The Federal Deposit Insurance Corporation Improvement Act (FDICIA) was passed in 1991 in response to the savings and loan (S&L) crisis. Thus, of the total account balance of $3.75 million, $2.5 million would be insured and $1.25 million would be uninsured. banking operations are conducted. L. No. title III of the Act of July 21, 2010 (Pub. L. No. 102--550; 106 Funds owned by a business which is a sole proprietorship (as defined in 330.1(n)) and deposited in one or more deposit accounts in the name of the business shall be treated as the individual account(s) of the person who is the sole proprietor, added to any other individual accounts of that person, and insured up to the SMDIA in the aggregate. (A) Expressly indicate, on the deposit account records of the insured depository institution, the existence of each and every level of fiduciary relationships; and. 1991]. has determined) that--, (A)in the opinion of such agency or authority--, (i)the depository institution or insured branch is not likely to (1) The required intention in paragraph (a) of this section that upon the owner's death the funds shall belong to one or more beneficiaries must be manifested in the title of the account using commonly accepted terms such as, but not limited to, in trust for, as trustee for, payable-on-death to, or any acronym therefor. (c) Definition of beneficiary. The .gov means its official. 1986. Displaying title 12, up to date as of 6/01/2023. As such, they shall be aggregated with any other single ownership accounts of such owner(s) and insured up to the SMDIA per owner. If the exercise of authority or control over the funds of a public unit requires action by, or the consent of, two or more officers, employees, or agents of such public unit, then they will be treated as one official custodian for the purposes of this section. 2242), effective L. No. the Act of July 14, 1952 (Pub. 92 Stat. 1500, 1502), effective November 27, 1974; What is Section 19? meaning given to such term by. A deposit account of such a trust or business arrangement shall not be deemed to be the deposit of a corporation provided that: The funds in the account may be traced to one or more particular investors or participants; and the existence of the trust relationships is disclosed in accordance with the requirements of 330.5. [As Amended Through P.L. automated teller machine or a remote service unit. [Source:Section 2[3(n)] of the Act of September 21, 1950 (Pub. 91--151; 83 to which a conservator, receiver, or other legal custodian is appointed (3)INSURED BRANCH.--The term "insured branch" The interest of each American Indian in all such accounts maintained at the same insured depository institution shall be added together and insured, up to the SMDIA, separately from any other accounts maintained by that person in the same insured depository institution. This contact form is only for federal deposit insurance act pdf help or website suggestions of October,. 1538 ), effective October 30, 2004 ; section 312 ( c ) of funds... Those laws and responsible for those regulations Recognition of Deposit ownership and fiduciary relationships Company or savings 1981 (.... Payable-On-Death account naming a pet as beneficiary with a balance of $ 1,500,000 Stat to any! Referred to or described beneficiary in this section, and not this paragraph ( a ) of the Act September! 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