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To whom it may concern:
As stated in the Interim Rule under the Disclosures regarding participation in the temporary liquidity guarantee program it states in part Institution must post a prominent notice in the lobby of its main office and each branch clearly indicating whether the entity is participating in the transaction account guarantee program, i.e. whether it has opted out. If the entity is participating in the transaction account guarantee program, the notice must also state that funds in noninterest-bearing transaction accounts at the entity are insured in full by the FDIC.
A) These disclosures
must be provided in simple,
1) Is the institution required to post the prominent notice in a Loan Production Office (LPO)? Please clarify.
2) The FDIC should provide institutions with model language to use in the prominent notice to ensure clarify and consistency prior to the 12/01/08 deadline.
3) As stated under B above the institution must clearly advise them in writing that such actions will void the FDICs guarantee. Does the prominent notice at the branch adequately cover this provision as to advising the customer in writing or is the institution required to provide a separate written notice from the posted branch notice to each customer that is affected by their individual sweep arrangements which they can keep. If a separate notice must be provided, then what are the delivery methods, such as, by mail, hand out, email? Please clarify questions.
Craig Y. Epps
|Last Updated 11/12/2008