4000 - Advisory Opinions
Whether Separate Deposit Insurance Coverage is Provided For Two or More Partnerships With General Partner in Common
May 12, 1992
J. William Via, Jr., Counsel
This is in response to your letter of April 22, 1992 (addressed to our Office of Consumer Affairs) asking whether separate deposit insurance is provided in the case of each of two or more partnerships even though they have a general partner in common. The answer is yes, assuming that the partnerships are bona fide, that is that each is ". . . operated primarily for some purpose other than to increase deposit insurance." 12 CFR § 330.9(d). Your question parallels the case of two or more corporations that have a shareholder in common and the answer is the same, assuming that the corporations are bona fide under the test recounted in the preceding sentence.
Of course, the deposit insurance for a given entity, such as a corporation or partnership, is not increased by virtue of that entity engaging in more than one business project or activity. Finally, the staff opinion (FDIC--88--83) referred to in your letter remains viable (although the pertinent sections of 12 CFR, Part 330 were renumbered in the 1990 revision of that part).