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NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS:
In accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act, from Dec. 31, 2010 through Dec. 31, 2012, all funds in “noninterest-bearing transaction accounts” are insured in full by the Federal Deposit Insurance Corporation. This unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules. The term “noninterest bearing transaction account” includes a traditional checking account (or demand deposit account) on which the insured depository institution pays no interest. It does NOT include any transaction account that may earn interest, such as a negotiable order of withdrawal (“NOW”) account, money market deposit account, or Interest of Lawyers Trust Account (“IOLTA”), even if checks may be drawn on the account. The temporary full insurance coverage of “noninterest bearing transaction accounts” expires on Dec. 31, 2012. After Dec. 31, 2012 funds in noninterest bearing transactions account will be insured under the FDIC’s general deposit insurance rules, subject to the Standard Maximum Deposit Insurance Amount of $250,000.
