|
[Main Tabs]
[Table of Contents - 4000]
[Index]
[Previous Page]
[Next Page]
[Search]
4000 - Advisory Opinions
Guidelines for Advertising of Insured Status by Savings
Associations
FDIC-91-60
July 25, 1991
Valerie J. Best, Counsel
You have requested our opinion as to how your institution, a
savings association, may display evidence that its deposit accounts are
insured by the Federal Deposit Insurance Corporation ("FDIC").
Attached for your reference is a copy of Part 328 of the FDIC's rules
and regulations (12 CFR Part 328). Part 328 governs advertisement of
federal deposit insurance coverage by insured institutions. The bank
(FDIC) sign is shown in section 328.1(a); the savings association
(American Eagle) sign is shown in section 328.1(b).
Signs Displayed on an Institution's Premises
Section 328.4(a) of the FDIC's regulations requires each insured
savings association to continuously display the savings association
sign at each teller station or window where insured deposits are
usually and normally received in its principal place of business and at
all of its branches. A sign need not be displayed, however, at
automatic service facilities including automated teller machines, cash
dispensing machines, point-of-sale terminals, and other electronic
facilities where deposits are received. 12 CFR 328.4(a). The only
"evidence" your savings association needs to display to indicate
that its deposit accounts are federally insured is the savings
association sign. You may obtain savings association signs free of
charge by writing to the following address on your institution's
letterhead: FDIC, Attention--Warehouse, 550 17th Street, N.W.,
Washington, D.C. 20429.
{{8-16-91 p.4570}}
Please be advised that federal law and FDIC regulations specifically
prohibit a savings association from displaying the bank sign at the
savings association's principal place of business or at any of its
branches. 12 USC 1828(a); 12 CFR 328.4(e). To explain in more detail,
the insurance sign that a savings association must display at its place
of business is mandated by law. 12 USC 1828(a). The law requires that a
savings association display at each place of business a sign containing
only the following items: a statement that insured deposits are backed
by the full faith and credit of the United States Government; a
statement that deposits are federally insured to $100,000; the symbol
of an eagle. 12 USC 1828(a)(1). The law specifically states that the
sign shall not contain any reference to a government agency. Consistent
with the requirements of 12 USC 1828(a), the FDIC adopted regulations
on August 9, 1989 that require a savings associations to display the
savings association sign and, further, prohibit a savings association
from displaying the bank sign at its principal place of business or at
any of its branches. 12 CFR 328.4. 1
Although your savings association may not display the bank sign,
neither are we aware of a law which would preclude your savings
association from referring to the FDIC at its principal place of
business or at any of its branches so long as the following guidelines
are followed. (1) A savings association may not display a sign that is
a colorable imitation of the bank sign. The reason being that if a sign
closely resembles the bank sign, its display violates the prohibition
contained in 12 USC 1828(a) and in section 328.4(e) of FDIC
regulations. Whether a sign is a colorable imitation of the bank sign
would depend in part on whether a casual observer might be confused
into thinking he or she was viewing the familiar "FDIC" bank
sign. Signs vary, and we are therefore unable to give you more exact
parameters. It is our opinion, however, that deleting the symbol within
the letter "C" and/or deleting the text above or below the
letters "FDIC" is not sufficient to distinguish a sign from the
bank sign. Furthermore, the use of block letters (or a similar
typeface) may be objectionable because the bank sign uses block
letters. (2) A sign referring to the FDIC should not be displayed in
proximity to the savings association sign. In our opinion, displaying a
sign that refers to the FDIC in proximity to the savings association
sign violates the provision that the savings association sign shall not
contain any reference to a government agency. In addition, such a
display violates the provision that a savings association shall display
a sign containing only the items listed in 12 USC 1828(a)(1). (3) Any
signs referring to the FDIC must be factually correct and not
misleading.
To summarize, display of the savings association sign--which states
that deposits are backed by the full faith and credit of the United
States Government--should be sufficient to assure your customers that
deposits in your institution are federally insured. If customers
continue to doubt your institution's insured status, they may call or
write to the appropriate FDIC Regional Office for verification of your
insured status. Alternatively, you could show your customers the
certificate of insurance issued to your institution by
the
{{8-16-91 p.4571}}FDIC. If you wish to display a sign
indicating that your institution is insured by the FDIC, the sign (1)
must not be a colorable imitation of the bank sign, (2) must not be
displayed in proximity to the savings association sign, and (3) must be
factually correct and not misleading.
Savings Association Advertising
The FDIC does not currently require a savings association to include
a statement in its advertisements to the effect that depositors are
federally insured. Should your savings association wish to indicate in
its advertisements that depositors are federally insured, it may quote
the language of the savings association sign ("Deposits Federally
insured to $100,000" and/or "backed by the full faith and credit
of the United States Government"). It may also set forth the savings
association sign in its advertisements. In that regard, you may obtain
camera-ready art work of the savings association sign, including signs
reduced in size suitable for printing in newspaper advertisements, by
writing to the FDIC at the above address, Attention--Design & Printing
Unit.
A savings association may advertise that it is "FDIC-insured."
(See discussion in advisory opinion 89-24 from General Counsel John L.
Douglas, dated September 21, 1989. A copy is attached for your review.)
We have also been asked whether a savings association may refer to
itself as a "Member FDIC" on its premises and in its advertising.
The savings association sign was specifically designed by Congress to
restore confidence in thrifts. We believe savings associations would be
better served by using the savings association sign or the text of the
savings association sign. Nonetheless, savings associations are not
prohibited from using the phrase "Member FDIC."
It is our opinion that a savings association should not use the bank
sign in advertisements. Further, references to the FDIC in savings
association advertisements should not be done in such a fashion that
the reference is a colorable imitation of the bank sign. Finally,
advertisements referring to the FDIC should be factually correct and
not misleading.
Savings Association Supplies (i.e., Stationery, Pamphlets,
Calendars, etc.)
Along related lines, the FDIC does not require a savings association
to display on its supplies a statement to the effect that its deposits
are federally insured. Should your savings association wish to indicate
on its supplies that funds are federally insured, it may quote the
language of the savings association sign or it may set forth the
savings association sign on its supplies. As outlined above, however,
it is our opinion that a savings association should not use the bank
sign on supplies. And again, references to the FDIC on savings
association supplies should not be done in such a fashion that the
reference is a colorable imitation of the bank sign.
You may wish to contact your primary federal regulator, the Office
of Thrift Supervision ("OTS"), for guidance as to when deposit
insurance must be referenced. For example, 12 CFR 563.233(d) requires
savings associations to include in each statement of condition the
phrase "Federal Deposit Insurance Corporation (FDIC), an agency of
the U.S. Government, insures all depositors up to $100,000 in
accordance with the rules and the regulations of the FDIC."
Please note that the FDIC may issue regulations or guidelines that,
in their final form, depart from the above guidelines.
I hope that the foregoing information is helpful to
you.
1Legislative history provides further evidence that Congress
intended to prohibit savings associations from using the bank sign.
Consider the following discussion concerning the amendment that
ultimately was passed into law as 12 USC 1828(a):
If we use the banks' logo for thrifts, we would be restoring
confidence but we would be disguising important differences that this
bill takes several hundred pages to explain. Therefore, in truth, the
thrift logo should be different.
. . . .
Thrifts would not have an option to use the banks' FDIC logo. A
specific bank or bank holding company or subsidiary would be required
to elect one or the other logo. No insured depository institution could
display both at the same time.
. . . .
Mr. President, while there have been many logo suggestions under
consideration, I believe that my amendment is the first to be accepted
by both the thrifts and the banks.
There is no question that both groups would like to have a
different solution, one more advantageous to their side. They are,
after all, competitors. But the bottom line is that the thrifts want a
logo that restores confidence and the banks wish to retain exclusive
rights to their FDIC logo. My proposal accomplishes that.
135 Cong. Rec. S4280--81 (daily ed. April 19, 1989) (statement of
Sen. Roth). Go Back to Text
[Main Tabs]
[Table of Contents - 4000]
[Index]
[Previous Page]
[Next Page]
[Search]
|
