An eligible depository institution refers to a financial entity that qualifies under specific regulatory criteria. This includes state banks and federal or state savings associations that are insured by the Federal Deposit Insurance Corporation (FDIC). To be considered eligible, these institutions must meet the standards set for an "eligible bank" as outlined in federal regulations.
The term "eligible depository institution" is commonly used in banking and financial law. It is relevant in various legal contexts, including regulatory compliance, lending practices, and insurance coverage. Users may encounter this term when dealing with financial transactions, applying for loans, or understanding their rights and protections under federal banking laws. Legal templates from US Legal Forms can assist individuals and businesses in navigating these processes effectively.
Here are a couple of examples of abatement:
For instance, a local state bank that provides savings accounts and loans and is insured by the FDIC qualifies as an eligible depository institution. Similarly, a federal savings association that meets the same criteria would also be considered eligible.
Relevant regulations can be found in Title 12 of the Code of Federal Regulations, specifically 12 CFR 5.3, which outlines the definitions and criteria for eligible banks and depository institutions. This regulatory framework governs the operations and insurance requirements for these institutions.
| State | Notes |
|---|---|
| California | State-chartered banks must comply with additional state regulations. |
| Texas | Texas has specific requirements for state savings associations that may differ from federal standards. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Bank | A financial institution that accepts deposits and offers loans. | Not all banks are eligible depository institutions; eligibility requires FDIC insurance. |
| Credit Union | A member-owned financial cooperative that provides similar services as banks. | Credit unions are not classified as eligible depository institutions unless they meet specific criteria. |
If you are considering banking options, ensure that the institution you choose is an eligible depository institution. This ensures your deposits are insured by the FDIC. For assistance, you can explore ready-to-use legal form templates from US Legal Forms to help you navigate banking agreements and applications. If your situation is complex, seeking professional legal advice may be beneficial.
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It is a financial institution, such as a state bank or savings association, that meets specific regulatory criteria and is insured by the FDIC.