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Miscellaneous Information <br />Deposits at FDIC -insured institutions, including Village Bank, are insured up to at least $250,000 <br />per depositor. In addition, under the Dodd Frank Act, all funds in a "noninterest-bearing <br />transaction account" are insured in full by the Federal Deposit Insurance Corporation from <br />December 31, 2010 through December 31, 2012. This temporary unlimited coverage is in <br />addition to, and separate from, the coverage of at least $250,000 available to depositors under <br />the FDIC's general deposit insurance rules. <br />If the unlimited insurance coverage available through December 31, 2012 is not extended, <br />Village Bank will purchase $3,000,000 in Federal Home Loan Bank Standby Letter of Credits to <br />insure up $3,000,000 in deposits from the City of Ramsey through December 31, 2013. The <br />costs for the Letter of Credit will be split evenly between Village Bank and the City of Ramsey. <br />Currently, the cost of a standby letter of credit is 12.5 basis points. The cost for a $3,000,000 <br />standby letter of credit is $3,750, which will be split evenly between Village Bank and the City of <br />Ramsey. Any deposits in excess of $3,000,000 will not be insured, which would not be in <br />conformance with Minnesota Statutes 118A. Therefore, it is important that the City of Ramsey <br />works closely with Village Bank to ensure the maximum coverage limit is not exceeded. <br />The pricing outlined in this proposal is effective January 1, 2013 through December 31, 2013. <br />-9- <br />