Bankowość · 13/02/2003

Insurance of State Banks Chartered as Limited Liability Companies

The Federal Deposit Insurance Corporation (FDIC) has adopted a final rule clarifying whether State banks chartered as limited liability companies (LLCs) are eligible for deposit insurance. The rule states that a bank chartered as an LLC under State law would be considered incorporated for purposes of the FDI Act if it meets the traditional corporate characteristics of perpetual succession, centralized management, limited liability, and free transferability of interests. The FDIC received inquiries about this issue in the recent past and has now provided guidance to address these concerns.