INDEPENDENT BANKERS ASSOCIATION OF TEXAS
July 8,
2004
Via email: comments@fdic.gov
Mr. Robert E. Feldman
Executive Secretary (Attn: Comments/Legal ESS)
FDIC
550 17th Street NW
Washington, DC 20429
RE: 12 CFR Part 303: Definition of Deposit; Stored Value Cards
Dear Mr. Feldman:
The Independent Bankers Association of Texas (IBAT) wishes to register
its support for the proposed amendment in Section 303.16 for the definition
deposit. This amendment acknowledges the fact that more and more consumers
and businesses are using alternatives to traditional checking accounts for a
variety of purposes including payroll cards, debit cards that function in
lieu of checks, and other electronic delivery modalities. The revised
definition will facilitate continued innovation in the use of specialized
debit cards or stored value cards, and, further facilitate bringing bank
services to the currently unbanked.
At the same time, the change in the definition rationally recognizes the
true beneficial ownership of funds in stored value cards that essentially
function like checking accounts with electronic capabilities rather than
paper instruments.
IBAT believes that general counsels opinion #8 was appropriate at the
time that it was issued; however, the market place has developed more
innovative products that no longer fit within the limitations of GC8.
Accordingly, this amendment to the definition is particularly critical in
order to facilitate on-going innovation.
IBAT is a trade association representing approximately 600 independent
community banks domiciled in Texas and Oklahoma. Some of its members are
either currently offering such innovative stored valued products or are in
the process of evaluating their functionality and attractiveness to the
public. Thus, these amendments are of particular interest to our membership.
Thank you for this opportunity to comment.
Sincerely,
Karen M. Neeley
General Counsel