Notice Requirement in Final Rule Implementing Dodd-Frank Act Provision on Unlimited Coverage for Noninterest-bearing Transaction Accounts
On November 9, 2010, the FDIC’s Board of Directors issued a final rule implementing section 343 of the Dodd-Frank Act. Section 343 provides unlimited insurance coverage for noninterest-bearing transaction accounts at all insured depository institutions (IDIs) from December 31, 2010 through December 31, 2012. The final rule imposes certain notice requirements, including the requirement that if an IDI modifies the terms of a deposit account so that the account no longer will be eligible for unlimited deposit insurance coverage, the institution “must notify affected customers and clearly advise them, in writing, that such actions will affect their deposit insurance coverage.” The FDIC has not imposed specific requirements as to the form of the notice. Rather, the FDIC expects IDIs to act in a commercially reasonable manner and to comply with applicable state and federal laws and regulations in informing depositors of changes to their account agreements.
For complete details on section 343 of the Dodd-Frank-Act, visit the FDIC.