FDIC Law, Regulations, Related Acts
4000 - Advisory Opinions
"Medium-Term Deposit Note" as Deposit
October 21, 1987
Roger A. Hood, Assistant General Counsel
Your letter of October 7, 1987 asks whether the attached "Medium-Term Deposit Note" will be considered to be a "deposit" under the Federal Deposit Insurance Act. You represent in the document that the liability
evidences a deposit that is insured by the Federal Deposit Insurance Corporation to the extent provided by law. The deposit evidenced by this deposit note ranks on an equal basis with all other deposits of the Bank, whether now or hereafter outstanding, except deposits that are required by law to be secured or subject to any statutory preferences.
You also represent that the funds will be reported as deposits on the call report and that they will be subject to Regulations D and Q. I also assume that you plan to pay deposit insurance assessments on the funds. Based on all of these facts and assumptions and on the general nature of the obligation, it is my opinion that this obligation does constitute a deposit under the Federal Deposit Insurance Act. (You should be aware, however, that these activities may involve branching issues for the institutions involved.)