What is a transaction warranty?
The term 'transaction warranty' concerns the US program that provides all low interest bank accounts and some low -interest bank accounts that do not generate interest on the specified amount. The Federal Insurance Company for Deposit Insurance (FDIC), an insurance company, established a temporary liquidity guarantee program (TLGP), which has two components. The first component is the debt warranty program, which provides unsecured debt. The second part is Transaction Account Account Account Account), which banks and other institutions often call FDIC transactions. This program is separated from the general coverage of FDIC deposit insurance, which provides deposits up to the specified amount.
FDIC transaction warranty program is temporary. Provides unlimited coverage for specified accounts. FDIC usually provides deposits located in banks and other austerity institutions through its general deposit insurance coverage. FDIC Transprogram of the Action Guarantee will provide additional account protection coveragethat exceeds the general coverage of FDIC. The account must also allow the holder to create an unlimited number of deposits and selections. It is usually a check of accounts. The transaction warranty program also includes some low interest accounts such as Lawyer Trust Accounts (iolta) and order collection (now). The program does not indicate the limit to the covered amount.
Banks and other economical institutions usually obtain protection according to general FDIC deposit coverage, FDIC must pay premiums. If the bank fails, they will be entitled to FDIC to pay the account holders up to the specified amount. As part of the FDIC, Bank and Other institution warranty program, they must pay a separate fee for participation in the program. This will allow the institution to provide complete protection of coverage by certain account types because it is not limited to the amount included in the program. This means that the transaction warranty program will apply to any amounts not protectedAccording to general insurance deposits of FDIC.
One purpose of the Garrant Transaction program is to get banks to lend to businesses and individual consumers. However, the program was designed as a temporary response to extended financial concerns about the recession and was set to end 31 December 2010. Once the program expires, account holders will still have protection according to general FDIC deposits, which in 2010 insured up to $ 250,000 (USD) for account holders. This amount is expected to drop to $ 100,000 31.