The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for at least $250,000; by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails.

An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. Since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds as a result of a failure.

The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts – deposits in virtually every bank and thrift in the country.

The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC’s Electronic Deposit Insurance Estimatorcan help you determine if you have adequate deposit insurance for your accounts.

The FDIC insures deposits only. It does not insure securities, mutual funds or similar types of investments that banks and thrift institutions may offer. (Deposit Insurance: What’s Covered distinguishes between what is and is not protected by FDIC insurance.)

The FDIC directly examines and supervises about 4,000 banks and savings banks for operational safety and soundness, more than half of the institutions in the banking system. Banks can be chartered by the states or by the federal government. Banks chartered by states also have the choice of whether to join the Federal Reserve System. The FDIC is the primary federal regulator of banks that are chartered by the states that do not join the Federal Reserve System. In addition, the FDIC is the back-up supervisor for the remaining insured banks and thrift institutions.

The FDIC also examines banks for compliance with consumer protection laws, including the Fair Credit Billing Act, the Fair Credit Reporting Act, the Truth-In-Lending Act, and the Fair Debt Collection Practices Act, to name a few. Finally, the FDIC examines banks for compliance with the Community Reinvestment Act (CRA) which requires banks to help meet the credit needs of the communities they were chartered to serve.

To protect insured depositors, the FDIC responds immediately when a bank or thrift institution fails. Institutions generally are closed by their chartering authority – the state regulator, or the Office of the Comptroller of the Currency. The FDIC has several options for resolving institution failures, but the one most used is to sell deposits and loans of the failed institution to another institution. Customers of the failed institution automatically become customers of the assuming institution. Most of the time, the transition is seamless from the customer’s point of view.

The FDIC is headquartered in Washington, D.C., but conducts much of its business in regional and field offices around the country.

The FDIC is managed by a five-person Board of Directors, all of whom are appointed by the President and confirmed by the Senate, with no more than three being from the same political party.


For more information, visit: https://www.fdic.gov/


A license is an authorization given by the owner of land to another to perform an act or acts on the owner’s property. The owner’s permission may be expressed or implied. The license is a personal privilege; it is not an interest or right in the land. Generally, licenses are revocable at will by the land owner. The classic license is personal to the license holder and cannot be transferred, assigned, conveyed, or inherited. Written license agreements frequently blur the line between easements and licenses.


Every member of an association is obligated to pay a share of common expenses through payment of assessments. As an association is funded and operates using assessment income, collection of assessments is one of the most important functions a board can undertake. When assessments go unpaid, associations can suffer from deferred maintenance and other problems that can ultimately affect the value of property in the community.

Civil Actions

A lawsuit brought in a court of law in which typically alleges that a  party, the plaintiff, has incurred a loss and/or seeks affirmative relief as a result of another party’s (the defendant) actions or inactions A civil action typically seeks monetary relief and/or  equitable relief.  Typical civil actions include breach of contract actions, negligence, breach of CC&Rs and statutory violations.

Daycare Homes

Public policy strongly favors allowing home operated child daycare centers. Daycare facilities operated in compliance with the California Health and Safety Code cannot be prohibited on the basis that they violate residential use restrictions or commercial use prohibitions contained in the governing documents.

Equitable Servitudes

When obligations and restrictions imposed in deeds and certain other written agreements meet strict statutory requirements, they are said to “run with the land” and bind successors to the original parties. Other deeds and written agreements that do not meet those statutory requirements are nevertheless enforced as “equitable servitudes” under certain circumstances. The CC&Rs of common interest developments are routinely enforced as equitable servitudes, because the Davis-Stirling Common Interest Act provides that the covenants and restrictions in the declaration shall be enforceable equitable servitudes, unless unreasonable.


An association may seek a civil harassment restraining order on behalf of a director, manager, or employee pursuant to Code of Civil Procedure §527.8, where there has been unlawful violence or where there is a credible threat of violence against the individual seeking the restraining order. See Article, Temporary Restraining Orders & Preliminary Injunctions at Associations.

Manager/Managing Agent

A manager of a common interest development is a person who “for compensation, or in expectation of compensation, provides or contracts to provide management or financial services, or represents himself or herself to act in the capacity” of providing these services (Bus. & Prof. Code §11501). A real estate license is not required to be community association manager.