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.


Voting in community association elections involving specified issues must be done using a secret ballot, double-envelope system (Civ. Code §5115), pursuant to duly-adopted election rules. (Civ. Code §5105) The specified issues are elections regarding assessments legally requiring a vote, election and removal of directors, amendments to the governing documents and grant of exclusive use of common area property pursuant to Civil Code section 4600. This list therefore covers most matters brought before the membership for vote. Among other things, election rules must specify candidate and voting qualifications and specify a method for selection of independent inspectors of election. See the statute, Civil Code section 5100 et seq., for detailed requirements.

Leasing Restrictions

Generally, restrictions in an association’s governing documents limiting an owner’s right to lease a residence. The restrictions may be as to the length of the lease, the number of persons residing in the dwelling, the age of those entitled to reside in a dwelling, how many dwellings within a community may be leased at a given time, or other limitations. California law recognizes the right of owners within a common interest development to choose to regulate the right to lease, within specified parameters.

Notice of Default

An association seeking to foreclose on an assessment lien must serve a Notice of Default on the person named in the association’s records as the owner of the property against which the assessment lien was recorded. The Notice of Default must be served in the same manner as a summons, which generally includes personal service, substituted service, service by acknowledgment and receipt, and service by publication in a newspaper.


Rodent infestation is a serious problem that must be dealt with quickly and decisively. Unlike wood destroying pests such as termites, the Civil Code does not assign responsibility for rodent extermination to any specific party. Check your governing documents to see who bears rodent extermination responsibility.


The display of noncommercial signs, posters and flags is subject to reasonable rules and regulations established by the board of directors. Boards may not prohibit noncommercial signs and posters that are less than 9 square feet in size. Keep in mind that the first amendment protects free speech and courts are traditionally protective of individuals’ rights to express themselves. See Flags for a discussion of the U.S. Flag.