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Transaction
Account Guarantee Program
| Transaction
Account Guarantee Program |
| Farmers
National Bank is participating in the FDIC's Transaction Account
Guarantee Program. Under that program, through December 31, 2009, all
noninterest-bearing transaction accounts* are fully guaranteed by the
FDIC for the entire amount in the account. Coverage under the
Transaction Account Guarantee Program is in addition to and separate
from the coverage available under the FDIC's general deposit insurance
rules.
*Under the Final Rule a
"noninterest-bearing account" is defined as a transaction
account with respect to which interest is neither accrued nor paid and
on which the insured depository institution does not reserve the right
to require advance notice of an intended withdrawal. This definition
encompasses the traditional demand deposit checking accounts that allow
for an unlimited number of deposits and withdrawals at any time. The
definition of a "noninterest-bearing transaction account" for
the purposes of The Transaction Account Guarantee Program also includes
Lawyers Trust Accounts (IOLTAs) and NOW accounts with interest rates no
higher than .50%. |
| On May 20,
2009 FDIC Deposit Insurance temporarily increased from $100,000 to
$250,000 per depositor through December 31, 2013. |
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