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#1937047 - 07/01/14 07:33 PM Reg D NOW eligibility
burkemi Offline
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Joined: Nov 2013
Posts: 528
I have a business that has supplied documentation listing them as a "Special Purpose Government Entity (SPGE)." This business currently has a NOW account, but is not a government entity itself. The question of eligibility has come up during a Reg D review. I feel like this documentation qualifies for a NOW, but wanted some input. Thoughts, please?

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#1939523 - 07/10/14 07:27 PM Re: Reg D NOW eligibility burkemi
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,786
Cape Cod
If you read carefully section 204.130 of Regulation D, you won't see "special purpose government entity" in any of the entries. I don't think you've got a qualified depositor.

Sooner or later, perhaps once rates start to creep upward a bit more, banks are going to tire of this discussion of who is NOW-eligible. Once they convert all their NOW accounts (or just the non-personal NOW accounts) to interest-paying DDAs, they can consign the discussion to history.
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#1945029 - 07/24/14 01:54 PM Re: Reg D NOW eligibility burkemi
burkemi Offline
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Joined: Nov 2013
Posts: 528
Thank you for your input John!
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I reject your reality and replace it with my own.

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