Coming Expiration of Unlimited Deposit Insurance (with Lofchie Comment)

Pursuant to Section 343 of the Dodd-Frank Act, unlimited deposit insurance coverage for non-interest-bearing transaction accounts ("NIBTAs"), including Interest on Lawyer Trust Accounts, is scheduled to expire on December 31, 2012. Absent a change in law, beginning on January 1, 2013, the FDIC no longer will provide separate, unlimited deposit insurance coverage for NIBTAs at insured depository institutions ("IDIs"). IDIs are encouraged to take reasonable steps to provide adequate advance notice to NIBTA depositors of the changes in FDIC insurance coverage so that they may consider the impact of any change in coverage in their management of these transaction accounts.

Lofchie Comment: Any customers that had opened non-interest-bearing accounts to have the benefits of the unlimited deposit insurance may now wish to revisit their asset protection strategy.

View Notice in full here (links externally to FDIC website).