1. What are Public Unit Accounts?
   Government accounts are also known as public unit accounts. This category includes deposit accounts of:
   
   
   • The United States
   • Any state, county, municipality (or a political subdivision of any state, county, or municipality), the District of Columbia, Puerto Rico and other government possessions and territories
   • An Indian tribe


2. How are public unit accounts insured?
   Insurance coverage of a public unit account differs from a corporation, partnership, or unincorporated association account in that the coverage extends to the official custodian of the funds belonging to the public unit rather than the public unit itself. The insurance coverage of public unit accounts depends upon (1) the type of deposit; and (2) the location of the insured depository institution. All "time and savings deposits" owned by a public unit and held by the same official custodian in an insured depository institution within the State in which the public unit is located are added together and insured up to $100,000. Separately, all "demand deposits" owned by a public unit and held by the same official custodian in an insured depository institution within the State in which the public unit is located are added together and insured up to $100,000. For the purpose of these rules, the term "savings deposits" includes NOW accounts, money market deposit accounts and other interest-bearing checking accounts.



3. Does the insurance coverage differ if the public unit maintains funds in an out of state bank?
   The insurance coverage of public unit accounts is different if the depository institution is located outside the State in which the public unit is located. In that case, all deposits owned by the public unit and held by the same official custodian are added together and insured up to $100,000. Time and savings deposits are not insured separately from demand deposits.



4. What is the definition of a political subdivision?
   The term "political subdivision" is defined to include drainage, irrigation, navigation, improvement, levee, sanitary, school or power districts, and bridge or port authorities and other special districts created by state statute or compacts between the states. The term "political subdivision" also includes any subdivision or principal department of a public unit (state, county, or municipality) if the subdivision or department meets the following tests:



• The creation of the subdivision or department has been expressly authorized by the law of such public unit;
• Some functions of government have been delegated to the subdivision or department by such law; and
• The subdivision or department is empowered to exercise exclusive control over funds for its exclusive use.


5. What is the definition of an official custodian?
   An "official custodian" is an officer, employee, or agent of a public unit having official custody of public funds and lawfully depositing the funds in an insured institution. In order to qualify as an "official custodian," a person must have plenary authority - including control - over the funds. Control of public funds includes possession as well as the authority to establish accounts in insured depository institutions and to make deposits, withdrawals and disbursements.

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