||In general what steps do I as a Broker/As
Agent need to do?
- Cease all activity on the affected deposit accounts as of institution
- Notify all sub-tier brokers that the institution is closed.
- Request documentation to support eligibility for pass-through insurance
for each individual account.
- Gather information from sub-tier brokers and submit to the FDIC.
||What paperwork must I complete and/or submit
in order for the FDIC to
process my claim for deposit insurance?
- All Brokers/As Agents must complete an Affidavit
Account-Word 166k (Word Help) including
the Exhibit A.
- All Brokers/As Agents must provide copies of their standard form of agency agreement OR, if no standard form of agency is used, then submit other written documentation supporting the agency relationship along with a copy of the customerís statement.
- Load owner/investor information on formatted diskette.
- All relevant affidavits and/or declarations.
Please note that in many closing situations the deposits cease
earning interest from the day after closing so it is important that you submit
the required documentation as soon as possible.
||What must I complete
for the Affidavit of
Agency Account-Word 166k (Word Help)?
||A single affidavit can be used to
cover all of the accounts held by you as agent. Please be sure that the Affidavit
notarized and that Exhibit A indicates for each owner/investor for whom you
are acting as agent: the full name, address and tax identification number.
Also included should be the amount of principal (only)
that each owner/investor owned in each account as of the closing date. Where
multiple agency accounts, please be sure to indicate the account number at
the closed institution for each principal listed. A computer-generated customer
ownership list may be substituted for the above Exhibit A, provided that all
of the requested information for each owner/investor is included.
You should attach as Exhibit B to the Affidavit
of Agency Account-Word 166k (Word
copy of your standard form(s) of agency agreement(s) or if there are
agreements, a copy of each agreement or other written documentation of the
agency relationship as described in paragraph 3 (Affidavit
of Agency Account-Word 166k (Word
along with a copy of the customer’s statement. Please also be sure
to attach the documents requested in paragraph 4, if applicable.
||What if I am acting as an agent for a broker
who is also acting as agent for others?
||Please have the secondary agent
Affidavit of Agency
Account-Word 166k (Word Help),
completed and executed as described above, to document the second level agency
||What if I have some questions about
the Affidavits and Declarations? Where should I mail the Affidavit and other
Please refer to the Failed Financial
Institution web page at http://www.fdic.gov/bank/individual/failed/index.html to
obtain the name of the contact person and the specific mailing address.
||What will the FDIC do with the
list and file of my customers?
||The FDIC will review the
listing of owners/investors to determine the amount of insurance coverage due
to each one. By federal statute, the FDIC is permitted to pay deposit insurance
only up to the amount provided by law. In most cases, this is $250,000 per
The listing of owners/investors submitted by you will be loaded into the
bank’s depositor database and sorted against those depositors and other
broker-submitted files. For example, John Doe is one of your owners/investors
and you disclose that he has $120,000 on deposit at the failed institution.
John Doe also deposited $50,000 directly at the failed institution and another
$125,000 through a separate broker. Our computer program will group these
three accounts together and reflect that John Doe has $130,000 on deposit
in the single ownership category. In accordance with the deposit insurance
regulations, John is only insured for $250,000.
The FDIC processes the files submitted by brokers/as agents on a first
in first out basis (FIFO) provided that: all required documentation is presented;
the deposit balance on the tape agrees with the information provided on the
Broker/As Agent Submission Checklist and we encounter no problems with the
data on the file. Insured funds are paid first on the deposits directly placed
at the institution by the depositor. In this example, the $50,000 deposited
directly with the closed institution will be paid in full and so will the
$120,000 deposited through you since your information was the first received.
The second broker will only be paid $80,000 of the $125,000 deposited through
them and the remaining $45,000 is deemed in excess of the insured limit.
Subsequently, if John Doe has single ownership funds deposited through other
brokers, those funds, too, will be deemed uninsured and a claim will need
to be filed.
||What happens if my investor has
|| A customer with uninsured
funds is deemed a creditor of the failed institution and a Receiver’s
Certificate will be issued to you on their behalf as evidence of their
approved claim. The Receiver’s Certificate will be issued as soon as
||When will I be paid my insured deposits?
The FDIC’s goal is to pay insured
deposits as soon as practical after receipt of a complete and error-free package.
In the case of deposits placed through a depository organization, the funds
will be paid to the depository organization with a fax notification sent to
the broker/as agent. For all others, funds will be paid directly.