Insured Deposit Law and Legal Definition
“(1) In general. Subject to paragraph (2), the term "insured deposit" means the net amount due to any depositor for deposits in an insured depository institution as determined under sections 7(i) and 11(a) [12 USCS §§ 1817(i) and 1821(a)].
(2) In the case of any deposit in a branch of a foreign bank, the term "insured deposit" means an insured deposit as defined in paragraph (1) of this subsection which--
(A) is payable in the United States to--
(i) an individual who is a citizen or resident of the United States,
(ii) a partnership, corporation, trust, or other legally cognizable entity created under the laws of the United States or any State and having its principal place of business within the United States or any State, or
(iii) an individual, partnership, corporation, trust, or other legally cognizable entity which is determined by the Board of Directors in accordance with its regulations to have such business or financial relationships in the United States as to make the insurance of such deposit consistent with the purposes of this Act [12 USCS §§ 1811 et seq.];
and
(B) meets any other criteria prescribed by the Board of Directors by regulation as necessary or appropriate in its judgment to carry out the purposes of this Act [12 USCS §§ 1811 et seq.] or to facilitate the administration thereof.”
