4000 - Advisory Opinions
Pass-Through Deposit Insurance Coverage
November 8, 1989
J. William Via, Jr., Counsel
You state in your letter of October 23 that your bank, pursuant to a written agreement with each customer, purchases certificates of deposit as custodian for groups of customers, the certificates being issued in the name *** as Custodian for Virginia Doe, et al., and you indicate that your bank maintains records that reveal the ownership interest of each customer in each deposit. It appears that these deposits qualify for "pass-through" deposit insurance for the benefit of each customer, as you believe is the case. See 12 C.F.R. §§ 330.1(b); 330.2(b).
The regulation of the Comptroller of the Currency entitled "Collective investment", appearing at 12 C.F.R. § 918, and cited by you, applies only to national banks. The trust powers of state chartered banks are based on state law.