LIMITED LIABILITY COMPANIES
The Federal Deposit Insurance Corporation (FDIC) has adopted the attached final rule regarding the criteria it will use to determine the eligibility of a state bank chartered as a limited liability company (LLC) for federal deposit insurance. One of the statutory requirements for a state bank to be eligible for federal deposit insurance is that it must be "incorporated" under the laws of any state. The final § 303.15 provides that a bank that is chartered as an LLC under state law would be considered to be "incorporated" under state law if all four of the following requirements are met. Generally, the LLC must:
We encourage institutions considering possible conversion to an LLC structure to first contact the appropriate FDIC office to discuss federal deposit insurance eligibility. For more information about the final rule, please contact Mindy West in the FDIC's Division of Supervision and Consumer Protection on 202-898-7221 or Robert C. Fick in the FDIC's Legal Division on 202-898-8962. This Financial Institution Letter supersedes FIL-106-2002, dated September 6, 2002. For your reference, FDIC Financial Institution Letters may be accessed from the FDIC's Web site at http://www.fdic.gov/news/financial-institution-letters/2003/index.html .
Attachment: February 13, 2003, Federal Register, pages 7301-7309
Distribution: FDIC-Supervised Banks (Commercial and Savings) NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342, option 5, or (703) 562-2200). |