Sign for Transaction Account Guarantee Program

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Question:

Do we need to change anything on the bank sign stating that we participate in the Transaction Account Guarantee Program 12-31-10 to 12-31-12?

Answer:

The Transaction Account Guarantee program ends at the end of 2010. The temporary insurance coverage for noninterest-bearing transaction accounts provided by Section 343 Of the Dodd-Frank Act is deposit insurance coverage, not an FDIC guarantee (there is a semantic and legal difference), and it will be effective from 12/31/2010 through 12/31/2012, inclusive. It will only cover non-interest-bearing demand deposit accounts (IOLTAs and NOW accounts, even those not earning interest, are excluded by the language of the Act).

The FDIC has not, as of 9/24/2010, issued regulations to implement Section 343. A notice of proposed rulemaking to implement it was scheduled to be reviewed at the FDIC's 9/27/2010 Board meeting.

First published on BankersOnline.com 10/04/10