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In 2008, the FDIC decided
to provide unlimited insurance of deposits in transaction accounts,
which includes checking accounts and IOLTA accounts. This
Transaction Account Guarantee program created by the FDIC on Oct.
14, 2008, was set to expire effective Dec. 31, 2009. The FDIC has
decided to extend unlimited insurance protection to these
transaction accounts, including lawyer trust accounts, through June
30, 2010. As part of its decision to extend the coverage, it
permitted banks to opt out of the program if they wish. Several
banks doing business in Georgia decided to opt out of the program
effective Jan. 1, 2010. Download the list of banks here. This listing
is sorted by states. Banks headquartered in other states but doing
business in Georgia may be found under the other state’s listing.
Georgia’s lawyers should notice
that, even without this unlimited insurance, each trust account is
now FDIC insured for up to $250,000 for each client.
If your bank is no longer offering unlimited insurance, you always
have the option of switching to another bank. Effective, July 1,
2010, unlimited insurance will no longer be available at any bank
unless the FDIC makes another extension of the insurance coverage.
However, until then, most banks are buying unlimited insurance on
transaction accounts.
If you have any
questions, please contact Len Horton at the Georgia Bar Foundation
at 404-588-2239.
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