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Changes for NOW Account Eligibility?
Answer by John Burnett, BOL Guru
Guru Bios
Sponsored by Branch 21
Question: The last information I have with regards to NOW account eligibility says: Any individual may maintain a NOW account regardless of the purposes the funds will serve. Deposits of an individual doing business under a trade name is eligible to maintain a NOW account in the individual's name or in the DBA name. A non profit organization that is operated primarily for religious, philanthropic, charitable, educational, political, or other similar purposes may also maintain a NOW Account. However, other entities organized or operated to make a profit such as corporations, partnerships, associations, business trusts or other organizations may NOT maintain NOW accounts. Is this current or have there been changes to this? I have two customers who wish to become NOW account customers. One is a Family Limited Partnership, the other is a Sister and brother Farm Trust. Are these entities eligible for NOW Accounts?
Answer: The rules you have paraphrased are essentially correct, except that you omitted units of domestic government. If a family limited partnership or a farm trust are organized for profit, they are not eligible.
First published on BankersOnline.com 11/06/06
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