FDIC Insurance and stored value cards
The FDIC recently issued a general counsel's opinion to indicate that...
Under the new (general counsel opinion), all funds underlying stored value products will be treated as âÂÂâÂÂdepositsâÂÂâ if they have been placed at an insured depository institution. As a result, all such funds will be subject to FDIC assessments. Also, all such funds will be insured up to the insurance limit. Whether the funds are insurable to the holders of the access mechanisms, as opposed to the distributor of the access mechanisms, will depend upon the satisfaction of the FDICâÂÂs standard requirements for obtaining âÂÂâÂÂpass-throughâÂÂâ insurance coverage.
Access the opinion here. Access a NAFCU Today article here. Why do I mention this? The FDIC and NCUSIF are very similar in structure. While NCUA has not indicated that it will follow suit, it very well could. If that were to happen, how would that affect your NSUSIF assessment? Keep an eye out on this one.
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