Are Your Association Funds Adequately Protected?
With a recent “run” on the IndyMac bank, it should be a wake-up call to all associations to take a closer look at where your operating and reserve funds are being held/invested and if they are adequately insured or protected. Just a reminder that the FDIC only insures funds up to $100,000.00 per depositor per insured bank. If your association has funds in excess of the $100,000.00 limit, you may want to consider a sweep agreement or spreading your deposits over several FDIC insured institutions.
Written By:david phifer
On July 28, 2008 1:35 PM
You can also have your bank provide additional private insurance to protect your assoications who have funds over the $100,000 in one institution.
In addition to spreading out funds to meeting FDIC Insurance criteria, its also a good idea for associations to put a line of credit in place in case of emergencies.
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