Insured Nonmember Bank Law and Legal Definition
According to 12 CFR 326.1 [Title 12 -- Banks and Banking; Chapter III -- Federal Deposit Insurance Corporation; Subchapter B -- Regulations and Statements of General Policy; Part 326 -- Minimum Security Devices and Procedures and Bank Secrecy Act Compliance; Subpart A -- Minimum Security Procedures], insured nonmember bank means “any bank, including a foreign bank having a branch the deposits of which are insured in accordance with the provisions of the Federal Deposit Insurance Act, which is not a member of the Federal Reserve System. The term does not include any institution chartered or licensed by the Comptroller of the Currency, any District bank, or any savings association.”
