FDIC

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/

Licenses

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.

Agenda

The Open Meeting Act requires each board meeting to contain the meeting agenda. (Civ. Code §4920(d)) This requirement applies to both executive and open session board meetings, with limited exceptions for emergency meetings. In general, the board may not discuss or take action on any item at a non-emergency meeting unless the item was placed on the agenda included with the notice for that meeting. (Civ. Code §4930(a)) Limited exceptions exist for cursory and/or emergency action on non-agenda items. (Civ. Code §4930(b)(c)(d)) Boards should especially exercise caution in determining an appropriate level of detail for the executive session agenda, so as not to publish confidential or privileged information. See each statute for specific requirements and limitations.

Books and Records

The association is responsible for keeping, maintaining and updating the books and records of the association. These include, but are not limited to, financial reports, bank statements, membership lists, and ledgers. The association must be ready to produce these books and records upon demand by a member, pursuant to Civil Code section 5200 et seq.

Condominium Project

A condominium project is one of the four types of CIDs that are considered common interest developments in Civil Code section 4100. A condominium project consists of “condominiums.” A condominium is a form of land and property ownership in which the owner holds legal title to a three-dimensional space that may be filled with air, earth, water, construction materials or virtually any other material. The three dimensional spaces are described on a recorded document known as a condominium plan. A condominium also includes an ownership in the common area that is shared with other condominium owners. The ownership maybe expressed as a fraction or a percentage of the common area parcel or parcels. See Civil Code section 4125.

Federal National Mortgage Association

Common known as Freddie Mac, this enterprise was established by Congress to compete with Fannie Mae and provide banks with federal money to finance home mortgages. Freddie Mac purchases loans from lenders. It does not make loans directly to home buyers. Freddie Mac loans requirements can differ from Fannie Mae requirements and are subject to change.

Joint Ownership

An association’s governing documents will generally provide that if more than one person holds an ownership interest in a separate interest property within the association, each owner shall be a member of the association. However, the voting rights of that separate interest shall only be exercised by one owner at a time. Owners do not vote proportionately based on their ownership interest in the property. The governing documents may also limit the number of owners per separate interest that may simultaneously serve on the board.