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Can an Ambulance Association have a NOW Acct?

Question: 
Can an ambulance association have a NOW account. Is an ambulance association considered a public fund account?
Answer: 

by Randy Carey: Only the bank can make that determination with access to all of the facts:

204.130(d) Governmental units. Governmental units are generally eligible to maintain NOW accounts at member banks. NOW accounts may consist of funds in which the entire beneficial interest is held by the United States, any State of the United States, county, municipality, or political subdivision thereof, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, any territory or possession of the United States, or any political subdivision thereof.

Answer: 

by Kathleen Blanchard: In many areas, ambulance associations are non-profit and could qualify. It is important to understand the type of entity that will own the account.

Answer: 

by John Burnett: If your bank is offering or is considering the offering to businesses of demand deposit accounts (DDAs) on which interest is paid, there are no restrictions on ownership.

First published on 06/02/2014

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