Landmark Law Raises the Reciprocal Deposit Cap
NEW LIMITS, NEW OPPORTUNITIES
The 21st Century ROAD to Housing Act has become law, allowing banks to count significantly more reciprocal deposits as nonbrokered. The law gives banks of all sizes greater capacity to grow loyal depositor relationships, reduce collateral, and strengthen local communities.
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Important Information: This summary is for information purposes only and does not constitute legal advice. The interpretation to legislation remains to be determined and could be subject to change. Each institution should consult its own advisors regarding the application of any new law or regulation.
Deposit placement through an IntraFi service is subject to the terms, conditions, and disclosures in applicable agreements. Deposits that are placed through an IntraFi service at FDIC-insured banks in IntraFi’s network are eligible for FDIC deposit insurance coverage at the network banks. The depositor may exclude banks from eligibility to receive its funds. To meet the conditions for pass-through FDIC deposit insurance, deposit accounts at FDIC-insured banks in IntraFi’s network that hold deposits placed using an IntraFi service are titled, and deposit account records are maintained, in accordance with FDIC regulations for pass-through coverage. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA before settlement for deposits or after settlement for withdrawals or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through an IntraFi service satisfies any restrictions on its deposits. IntraFi and the IntraFi logo are registered service marks of IntraFi LLC.