Securing Uninsured Funds Deposited

Posted By: Anonymous89

Securing Uninsured Funds Deposited - 07/17/08 05:16 PM

I am wondering about securing uninsured funds deposited by a private customer (funds over FDIC coverage). We have several muni's that we have bank securities/collateral pledged to under a Public Deposits Security agreement but am looking for a form or agreement for a corporate customer. Any help would be greatly appreciated!
Posted By: YHWB

Re: Securing Uninsured Funds Deposited - 07/17/08 06:11 PM

Look up FDIC Advisory Letter 93-73 - "FDIC's View of the Purchase of Excess Deposit insurance from Roivate Insurance Companies". Page 4817 in Binder 4
Posted By: Anonymous89

Re: Securing Uninsured Funds Deposited - 07/17/08 08:39 PM

We were looking for a different solution than having the customer purchase private insurance.
Posted By: rlcarey

Re: Securing Uninsured Funds Deposited - 07/18/08 12:35 AM

You are talking about repurchase agreements if you are going to collaterize the deposits with securities.
Posted By: Elwood P. Dowd

Re: Securing Uninsured Funds Deposited - 07/18/08 12:03 PM

...you can make a general "pledge" of securities against public funds because there is a law or regulation that says you can. You will not find any law or regulation that says you can do it for a company or an individual; i.e. you cannot.