Notice Requirements for Noninterest-bearing Transaction Accounts
A final rule imposes three notice and disclosure requirements to ensure that Insured Depository Institutions, or IDIs, and depositors are aware of and understand the types of accounts that will be covered by a temporary deposit insurance coverage for noninterest-bearing transaction accounts. As explained in detail in the Federal Register notice:
- IDIs must post a prescribed notice in their main office, each branch and, if applicable, on their Web site;
- IDIs currently participating in the Transaction Account Guarantee Program (“TAGP”) must notify Negotiable Order of Withdrawal (“NOW”) account depositors and Interest on Lawyers Trust Accounts (“IOLTA”) depositors (currently protected under the TAGP) that, beginning January 1, 2011, those accounts no longer will be eligible for unlimited protection; and
- IDIs must notify customers of any action they take that would affect the deposit insurance coverage of funds held in noninterest-bearing transaction accounts.
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Contact Steve Quinlivan for more information.