Bulletin: NY000035

Dear Associates:

Annexed is a letter from FDIC regarding accounts established by agents in escrow or fiduciary situations. Please read this letter and adhere to the record keeping requirements in establishing your accounts. Hopefully this will prevent problems in the future.

[from:] FDIC
Federal Deposit Insurance Corporation
Office of Consumer Affairs
Washington, DC 20429-9990
(202) 898-3536 - (800) 934-3342

November 20, 1992
Ref. No. 92-4991

[to:] Ms. Linda A. Printzlau
Vice President
Terra Abstract Corp.
First American Title Insurance Company of New York
31 Oak Street
Patchogue, New York 11772

Dear Ms. Printzlau:

This letter is in response to your inquiry concerning FDIC deposit insurance coverage of accounts established by agents.

Funds deposited at an FDIC-insured depository institution by an agent on behalf of an owner, whether an individual or an entity such as a corporation, are insured as the funds of the owner. If an agent deposits funds for more than one individual, each individual's funds would be insured up to $100,000 if the following record keeping requirements are met:

• The agent's fiduciary capacity must be disclosed in the deposit account records of the depository institution.
   
  
• The agent must maintain records in good faith and in the regular course of business that show the names and interests of each owner of the funds in the account.

If both requirements are met, the funds of each owner are separately insured. However, an individual's funds would be added together with any single ownership funds he or she has deposited at the same institution, and the total would be insured up to $100,000.

Enclosed for your information is a copy of the deposit insurance regulation. We trust this letter is responsive to your concerns.

Sincerely,

[signed]

Janice M. Smith
Director