FDIC publishes general counsel's opinion concerning the insurability of funds underlying stored value cards.(Federal Deposit Insurance Corporation )

Mondaq Business Briefing | November 30, 2008 | Copyright

On November 13, 2008, the Federal Deposit Insurance Corporation ("FDIC") published General Counsel's Opinion No. 8 regarding the insurability of funds underlying stored value cards and other nontraditional stored value products ("Opinion").1 In particular, the Opinion addresses the issue of whether funds underlying stored value cards—such as prepaid cards, gift cards, payroll cards or government benefit cards—qualify as "deposits" as that term is defined in the Federal Deposit Insurance Act ("FDIA").2 The FDIC concludes that funds underlying stored value products ...

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