Are telephone cooperatives eligible for NOW accounts? If so, where does it state that in the regulation?

Thanks,

§204.130 Eligibility for NOW Accounts.
(b) Individuals. (1) Any individual may maintain a NOW account regardless of the purposes that the funds will serve. Thus, deposits of an individual used in his or her business including a sole proprietor or 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. 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.

Eligible to hold a NOW account:
• Individuals
• Sole proprietorships
• An individual doing business under a trade name (Joe Smith D/B/A Joe’s Plumbing)
• Nonprofit organization (religious, philanthropic, charitable, educational, political)
• Pension funds, escrow accounts, security deposits, and other funds held under various agency agreements if the entire beneficial interest is held by individuals or other entities eligible to have a NOW account
• Government units - Public funds
• Funds held by a fiduciary (such as a bank trust department or a trustee in bankruptcy) if all of the beneficiaries are eligible as well

Not eligible to hold a NOW account:
• Corporations
• Partnerships
• Limited Liability Partnerships
• Associations
• Business Trusts
• Credit Unions
• Mutual insurance companies
• Crop financing organizations
• Legal services plans
• Farmers’ cooperatives

ok call me dumb but where does the cooperative fit in?

Common tests you can apply are, are they nonprofit, can all the owners of the entity own NOWs? When you answer yes, generally a NOW can be owned. But I don't know enough about the coop organization.

I found telephone cooperatives listed in section 501(c)(12) of the IRC. That makes them eligible for NOW account ownership, according to Regulation D, section 204.130.

That is why they say John is "§204a man."

Da man.

Is a Board of Realtors (non-profit) eligible to maintain a now account?

Follow John's link (three posts above) and see if they'll qualify. You'll have to know a little more about them than just being a non-profit.

This is not my normal area of banking but trying to get clarification. In reading Sec.204.130 it appears that clubs organized for recreation, 501(c)7,- such as bowling leagues, etc-would be eligible.?.? for NOW accounts. Should the bank require them to file IRS 1023 and have proof of that prior to opening a NOW account?
Can you tell that i don't know enough to even be asking the questions on this topic?

Yes, they are eligible since they are not a business for profit. You want to have some type of documentation if challenged; however, I don't think an examiner is going to question a bowling league or similarly non-profit titled account.

Thanks David. One more question- as a bank should we require that they file form 1023 with the IRS before we open a NOW account for them?