FDIC FAQs-For government/public fund depositors, do IDIs need to pledge collateral on noninterest-bearing transaction accounts?

Compliance > Deposit Operations > FDIC FAQs on Insurance and Payment of Interest on Demand Deposit Accounts

Q:  For government/public fund depositors, do IDIs need to pledge collateral on

noninterest-bearing transaction accounts?


A:  The requirement that collateral be pledged to secure public deposits at IDIs is imposed by

state law and not by the FDIC; there is no provision in the FDIC regulations requiring

collateralization of government/public fund deposits. Although the FDIC provides

temporary unlimited deposit insurance coverage for noninterest-bearing transaction

accounts, the amount of collateral, if any, required to be pledged on such accounts will

depend upon the applicable state law. As a result, questions about this matter should be

presented to the responsible State regulator or State Department of Banking.



This can be found in - FAQ#23 of FDIC’s FAQs.  FDIC’s FAQs can be found at: http://www.fdic.gov/deposit/deposits/unlimited/faq.pdf

Add Feedback