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.

Age Restrictions

The generic term for restrictions based on age which are part of several recognized types of senior housing/housing for older persons (e.g., “55+” or “all-62” housing), as defined in state and federal law. To impose restrictions or rules based on age in communities not otherwise qualified as senior housing may result in a violation of various fair housing laws.


Generally, associations do not have routine cause to either perform a fiscal audit or be subject to an outside audit. Audits are thorough reviews of all association fiscal records, including operating and reserve accounts. The purpose of an audit is to ensure that no fiscal mismanagement has occurred. If you receive notice of an audit, immediately contact your legal counsel.


“Bylaws” refers to the document regulating the administration of the association (such as voting rights, notice and convening of board and member meetings, number of directors, offices, proxies, appointment of committees, etc.) Both incorporated and unincorporated associations have bylaws. Many older sets of bylaws contain provisions appropriate under the Corporations Code, however, changes to the Davis-Stirling Act have frequently overridden different provisions in the Corporations Code (particularly in the area of elections), so care must be exercised in determining whether a particular bylaw provision continues to be valid.

Commercial Use

In the context of common interest developments, the term refers to a use not consistent with single-family residential use, such as operation of a business involving onsite customer traffic or storage of goods fpr sale, or the renting of portions of a home. See Colony Hill v. Ghamaty (2006) 143 Cal.App.4th 1156.

Contact Information

Associations should ensure that there is always a point of contact for members to reach out and express concerns, report emergencies and request repairs. Including this information in your annual disclosures, as well as in assessment statements, ensures clear open lines of communication. That being said, the board is not required to be the point of contact for an association as that is typically the role of a manager.


Delegate systems are found mostly in larger CIDs in which it may be difficult for an association to obtain quorums for annual meetings or the necessary votes to obtain approval of governing document amendments. Delegates typically represent a given geographical area encompassing specified separate interests. When there is a board election or document amendment vote planned, there may be meetings of the members from each delegate district in which the owners cast their votes to direct their delegate how to vote in the board election or on the document amendment. Depending on an association’s governing documents, the delegate will probably get to cast the votes of all the owners who reside in the delegate district. However, under some governing documents, the votes of the entire district are split in proportion to the way the votes were cast by the owners who actually voted. Under other governing documents, all the votes may be cast the way a majority of the owners cast their votes.