Understanding the Eligible Insured Depository Institution: Key Insights

Definition & Meaning

The term eligible insured depository institution refers to any bank or financial institution that is insured and meets specific criteria. According to federal law, an institution qualifies as eligible if it was operational on December 31, 1996, and had paid a deposit insurance assessment before that date. Additionally, any institution that succeeds a qualifying institution also falls under this definition.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A bank that was established in 1995 and has consistently paid its deposit insurance assessments qualifies as an eligible insured depository institution.

Example 2: A new bank that has acquired the assets of a bank that was operational on December 31, 1996, may also be recognized as an eligible insured depository institution. (hypothetical example)

Comparison with related terms

Term Definition
Insured depository institution Any bank or savings institution that has federal insurance for its deposits, regardless of the date of establishment.
Eligible institution Refers specifically to institutions that meet the criteria established by federal law, particularly regarding their operational history and insurance assessments.

What to do if this term applies to you

If you are a depositor at a bank and want to verify its eligibility as an insured depository institution, you can check the FDIC's database or contact the bank directly. If you are considering opening an account or applying for a loan, understanding whether your bank is an eligible institution is important for your financial security. For assistance with related legal documents, consider exploring US Legal Forms for templates that can help you navigate banking transactions.

Quick facts

Attribute Details
Definition An institution insured and operational since December 31, 1996.
Primary Law 12 USCS § 1817(3)(C)
Eligibility Criteria Operational history, insurance assessment payment

Key takeaways

Frequently asked questions

It is a bank or financial institution that was operational on December 31, 1996, and paid deposit insurance assessments before that date.

Sign in with Google
Sign in with Google