The timely, cost-effective resolution of finance or banking disputes often calls for an attorney who is experienced in effectively negotiating solutions that are both legally sound and resistant to future litigation. To find out how our firm can work with you to address your concerns, contact us to schedule a consultation and case evaluation with a banking attorney.
More About Banking and Finance Matters
The attorneys at Aldrich Bonnefin & Moore, PLC, represent financial institutions in Irvine and throughout California in all legal matters. For more details about the specific issues we commonly address, please review our practice areas.
Below we have provided some general information about the law as it relates to banking and finance matters. To get answers to more specific questions, contact us to arrange a meeting with one of our experienced lawyers.
Thank you for contacting Aldrich Bonnefin & Moore, PLC. Your message has been sent.
Call us now
or use the form below.
Serving California's financial institutions since 1985, Aldrich & Bonnefin represents banks, credit unions, savings associations and money transmitters, as well as other businesses with needs that fall within the financial realm.
Call our Irvine law firm at 949-242-0704 or send us an e-mail to schedule a meeting with an experienced attorney to discuss any financial industry legal issue.
Banking and Finance - Insurance
Generally, federally administered insurance programs provide insurance coverage for banks and financial institutions. The Federal Deposit Insurance Corporation (FDIC) provides the most commonly used insurance. Bank insurance provides the customer and bank security in the event of a failure. The specific type of insurance and who is covered depends on the type of bank and transactions involved. Some federally administered insurance protects the bank from default on loans, while other types of insurance protect the customer from financial loss due to bank failure. If you have legal questions involving banking, financing and insurance, contact Aldrich, Bonnefin & Moore P.L.C. in Irvine, California, to schedule a consultation with an attorney.
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation (FDIC) insures bank deposits of up to $100,000 per deposit, per insured bank, protecting the customer in the event of a bank's failure. This applies to all depositors of an insured bank except owners of certain retirement accounts, which are insured for up to $250,000 per owner, per insured bank. The FDIC also is responsible for examining banks for financial soundness and compliance with fair lending and anti-discrimination laws. Accounts under a single owner are combined to provide a total coverage of $100,000, but deposits held in separate ownership accounts are usually not aggregated. To be eligible for payment, the bank must be certified as failed by a member of the state or federal chartering authority. Typically, the depositor does not become actively involved in the process of coverage as the insurance payment is automatically transferred to a new depositing institution.
The FDIC's coverage applies only to deposits, which includes deposits in checking, NOW and savings accounts, deposits in money market accounts and time deposits such as certificates of deposit. The FDIC does not provide coverage for stocks, bonds, securities, mutual funds, life insurance policies, annuities or other types of investment accounts. In addition, the FDIC does not insure US Treasury bills, bonds or notes.
National Credit Union Share Fund
The National Credit Union Share Fund (NCUSIF) is a part of the National Credit Union Administration (NCUA) and operates in basically the same way as the FDIC. All federal credit unions must be insured by the NCUA. The fund insures credit union deposits up to the "Standard Maximum Share Insurance Amount," which is $100,000. Certain retirement accounts, such as IRAs, have coverage of up to $250,000. If a federally insured credit union fails, the NCUSIF will generally pay members within three days.
Farm Credit System Insurance Corporation
The Farm Credit System Insurance Corporation (FCSIC) is a federal agency that insures the payment of principal and interest on Farm Credit System notes, bonds and other financial obligations to investors. The FCSIC administers the Farm Credit Insurance Fund and collects annual premiums from banks that are a part of the Farm Credit System. The FCSIC also has the power to provide assistance to Farm Credit System banks and direct lender associations that are having financial trouble by making loans or contributions, taking on liabilities, buying assets and debt securities and helping with mergers and consolidations.
Conclusion
Federal regulations affect the day-to-day activities of banks, and federal agencies take an active role in examining and supervising certain aspects of banks' conduct. Federally administered insurance provides security for both the lender and the customer, and facilitates openness in banking and increased lending opportunities. If you have questions about bank insurance issues or bank regulation, talk to an attorney at Aldrich, Bonnefin & Moore P.L.C. in Irvine for more information.
Copyright © 2011 FindLaw, a Thomson Reuters business
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
