The FDIC replaced General Counsel’s Opinion No. 8, which addresses the issue of whether the funds underlying stored value cards qualify as “deposits” as defined in the Federal Deposit Insurance Act. Under the new opinion, the funds will be “deposits” to the extent that they have been placed at an insured depository institution, and, if deposits, the funds will be subject to assessments and insured up to insurance limit. Click here for the new opinion.
Alert November 18, 2008