6.2.2 Entity based Insurance Calculation

FDIC Insurance coverage is extended at a legal entity level. This indicates that all the accounts belonging to the same counterparty, same right and capacity, and the same legal entity are aggregated for insurance determination.

In a domestic scenario, the coverage is at the legal entity level, which indicates that the branches of a legal entity are not covered separately but are included in the legal entity coverage.

In certain instances, wherein a branch is covered separately from the legal entity, such as a branch of a foreign legal entity, the application provisions identifiers to capture and process this information. The granularity of Insurance calculation as per FDIC Part 370 is as follows:

• Insured Legal Entity/Separately insured Branch – Ownership Right and Capacity- Customer

  In this case, the beneficial owner is the customer.

• Insured Legal Entity/Separately insured Branch – Ownership Right and Capacity- Customer – Beneficial Party

  In this case, the beneficial owner is a party other than the customer. The insurance is provided on a pass-through basis.

Note:

• Banking facilities in overseas military bases are considered to be domestic and are treated accordingly i.e. All the domestic branches of a domestic legal entity are covered by FDIC along with the legal entity itself. This includes overseas military operations of a domestic legal entity. There is no separate coverage at the branch level.
• Deposits held in multiple US branches of a foreign legal entity, in the same right and capacity, are aggregated together for the purposes of FDIC insurance. The coverage is not at an individual US branch level.