Sunshine Act Notices, 67157 [E8-26877]
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Federal Register / Vol. 73, No. 220 / Thursday, November 13, 2008 / Notices
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savings association, in the usual course
of business for a special or specific
purpose.* * *’’ 12 U.S.C. 1813(l)(3).
Under this paragraph, funds are
‘‘deposits’’ when held by a bank for the
‘‘special or specific purpose’’ of
covering withdrawal or transfer
instructions from the holders of stored
value cards or other nontraditional
access mechanisms. In the original GC8,
the Legal Division found that paragraph
3(l)(3) applies only to cases in which the
customer’s spending plans are very
specific but such a narrow reading of
the statute is not supported by the
legislative history. See FDIC v.
Philadelphia Gear Corporation, 106 S.
Ct. 1931 (1986). Also, the Legal Division
is unaware of any case in which a court
found that a bank’s liability did not
qualify as a ‘‘deposit’’ because the
customer’s spending plans were
insufficiently specific.
Paragraph 3(l)(4). This paragraph
defines ‘‘deposit’’ as ‘‘outstanding draft
* * * cashier’s check, money order, or
other officer’s check issued in the usual
course of business for any
purpose.* * *’’ 12 U.S.C. 1813(l)(4).
Some stored value products are the
functional equivalents of cashier’s
checks or money orders.
As outlined above, the statutory
definition of ‘‘deposit’’ is very broad.
The Legal Division concludes that this
definition encompasses all funds
underlying stored value cards and other
nontraditional access mechanisms to the
extent that the funds have been placed
at an insured depository institution.
A separate issue is whether the holder
of an access mechanism (as opposed to
the distributor of the access mechanism)
should be treated as the insured
depositor for the purpose of applying
the insurance limit. This issue is
addressed below.
Depositors
Under the existing insurance
regulations at 12 CFR part 330, the FDIC
is entitled to rely upon the account
records of the failed insured depository
institution in determining the owners of
deposits. See 12 CFR 330.5. Therefore,
in cases in which a separate account has
been opened in the name of the holder
of the access mechanism, the FDIC will
recognize the holder as the owner of the
deposit.
In some cases, in an agency or
custodial capacity, the distributor of the
access mechanisms (or agent on behalf
of the distributor) might open a pooled
account for all holders of the access
mechanisms. In such cases, the FDIC
may provide ‘‘pass-through’’ insurance
coverage (i.e., coverage that ‘‘passes
through’’ the agent to the holders). See
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12 CFR 330.7. Such coverage is not
available, however, unless certain
requirements are satisfied. First, the
account records of the insured
depository institution must disclose the
existence of the agency or custodial
relationship. See 12 CFR 330.5(b)(1).
This requirement can be satisfied by
opening the account under a title such
as the following: ‘‘ABC Company as
Custodian for Cardholders.’’ Second, the
records of the insured depository
institution or records maintained by the
custodian or other party must disclose
the identities of the actual owners and
the amount owned by each such owner.
See 12 CFR 330.5(b)(2). Third, the funds
in the account actually must be owned
(under the agreements among the parties
or applicable law) by the purported
owners and not by the custodian (or
other party). See 12 CFR 330.3(h); 12
CFR 330.5(a)(1). If these three
requirements are not satisfied, the FDIC
will treat the custodian (i.e., the named
accountholder) as the owner of the
deposits.
It is encouraged that accurate
information concerning FDIC insurance
coverage be displayed on stored value
cards. This information should include
the name of the insured depository
institution in which the funds are held.
When appropriate, the card also should
state that the funds are insured by the
FDIC to the cardholder. These
disclosures will provide the cardholder
with important information concerning
FDIC deposit insurance coverage.
Conclusion
This opinion replaces the opinion
published by the FDIC in 1996. Under
this opinion, all funds underlying stored
value cards and other nontraditional
access mechanisms will be treated as
‘‘deposits’’ to the extent that the funds
have been placed at an insured
depository institution. If the FDIC’s
standard recordkeeping requirements
are satisfied, the holders of the access
mechanisms will be treated as the
insured depositors for the purpose of
applying the insurance limit. Otherwise,
the distributor of the access mechanisms
(i.e., the named accountholder) will be
treated as the insured depositor.
This opinion is based upon the
proposition that the form of the access
mechanism is unimportant. Whether the
mechanism is traditional, such as an
ATM card, book of checks or official
check, or nontraditional, such as a
stored value product, the access
mechanism is merely a device for
withdrawing or transferring the
underlying money. The ‘‘deposit’’ is the
underlying money received by the
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67157
depository institution and held for an
accountholder.
By order of the Board of Directors, dated
at Washington, DC, this 31st day of October
2008.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. E8–26867 Filed 11–12–08; 8:45 am]
BILLING CODE 6714–01–P
FEDERAL ELECTION COMMISSION
Sunshine Act Notices
Federal Election Commission.
& TIME: Thursday, November 13,
2008 at 1:30 p.m.
PLACE: 999 E Street, NW., Washington,
DC (ninth floor).
STATUS: This meeting will be open to the
public.
ITEMS TO BE DISCUSSED:
Correction and Approval of Minutes.
Draft Advisory Opinion 2008–14:
Melothe, Inc. by Marc E. Elias, Esquire.
Report of the Audit Division on
Edwards for President.
Report of the Audit Division on the
Kuhl for Congress Committee.
Report of the Audit Division on the
Missouri Democratic State Committee.
Report of the Audit Division on the
Oregon Republican Party.
Report of the Audit Division on
Sharpton 2004.
Management and Administrative
Matters.
PERSON TO CONTACT FOR INFORMATION:
Robert Biersack, Press Officer,
Telephone: (202) 694–1220.
Individuals who plan to attend and
require special assistance, such as sign
language interpretation or other
reasonable accommodations, should
contact Mary Dove, Commission
Secretary, at (202) 694–1040, at least 72
hours prior to the hearing date.
AGENCY:
DATE
Mary W. Dove,
Secretary of the Commission.
[FR Doc. E8–26877 Filed 11–10–08; 11:15
am]
BILLING CODE 6715–01–P
FEDERAL MARITIME COMMISSION
Notice of Agreements Filed
The Commission hereby gives notice
of the filing of the following agreements
under the Shipping Act of 1984.
Interested parties may submit comments
on agreements to the Secretary, Federal
Maritime Commission, Washington, DC
20573, within ten days of the date this
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]]>Agencies
[Federal Register Volume 73, Number 220 (Thursday, November 13, 2008)]
[Notices]
[Page 67157]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26877]
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FEDERAL ELECTION COMMISSION
Sunshine Act Notices
AGENCY: Federal Election Commission.
Date & Time: Thursday, November 13, 2008 at 1:30 p.m.
Place: 999 E Street, NW., Washington, DC (ninth floor).
Status: This meeting will be open to the public.
Items To Be Discussed:
Correction and Approval of Minutes.
Draft Advisory Opinion 2008-14: Melothe, Inc. by Marc E. Elias,
Esquire.
Report of the Audit Division on Edwards for President.
Report of the Audit Division on the Kuhl for Congress Committee.
Report of the Audit Division on the Missouri Democratic State
Committee.
Report of the Audit Division on the Oregon Republican Party.
Report of the Audit Division on Sharpton 2004.
Management and Administrative Matters.
Person to Contact for Information: Robert Biersack, Press Officer,
Telephone: (202) 694-1220.
Individuals who plan to attend and require special assistance, such
as sign language interpretation or other reasonable accommodations,
should contact Mary Dove, Commission Secretary, at (202) 694-1040, at
least 72 hours prior to the hearing date.
Mary W. Dove,
Secretary of the Commission.
[FR Doc. E8-26877 Filed 11-10-08; 11:15 am]
BILLING CODE 6715-01-P
