Program Terms and Conditions
The Program Terms and Conditions (“Terms and Conditions”) are the bank’s depositor-facing agreement governing participation in the NBID Deposit Management Program. NBID makes available sample Terms and Conditions containing the disclosures and agency provisions designed to support pass-through federal deposit insurance under 12 C.F.R. Part 330. The bank is responsible for executing the Terms and Conditions with each enrolled depositor, including a separate schedule with respect to each enrolled account. The bank is also responsible for retaining the executed records and for ensuring that the Terms and Conditions, as customized and delivered, comply with all federal, state, and local laws and regulations applicable to the bank and its depositors.
_Download the sample language here _.
Using the Sample Language
The template contains the operative program disclosures, including deposit placement mechanics, agency appointment, fees, depositor exclusion elections, and risk disclosures. Commercial, branding, and formatting elements are fully customizable. The provisions supporting pass-through deposit insurance, including agency appointment (Exhibit A), multi-tier custodial disclosure, deposit aggregation disclosure, the institution exclusion mechanism (Exhibit B), the periodic statement commitment, and the network institution list are designed to satisfy specific requirements under 12 C.F.R. Part 330 and should be preserved.
Legal and Compliance Review
The bank should review the Terms and Conditions against its existing customer agreements, account disclosures, and the laws and regulations applicable to its charter and operations before delivery to depositors. The bank is the appropriate party to assess how the Terms and Conditions interact with its broader depositor documentation framework.
Public Fund Depositors
Public funds depositors, including state, county, and municipal entities, may be subject to collateralization, eligible depository designation, depositor authorization, and in-state custody requirements that vary by jurisdiction. Banks delivering the Terms and Conditions to public funds depositors are responsible for confirming with such depositors that the Program and the Terms and Conditions, as customized, satisfy the requirements applicable to that depositor.
Roles and Responsibilities
The Terms and Conditions describe the bank’s role as the depositor’s agent for placement and the operational roles of NBID LLC, ModernFi Deposit Services LLC, and The Northern Trust Company (acting as custodial agent for the Program). The bank is responsible for executing, delivering, retaining, and (as appropriate) updating the Terms and Conditions.
Depositor Execution
Each depositor executes the Terms and Conditions, the agency appointment in Exhibit A, and the exclusion election in Exhibit B prior to enrollment. The bank completes the corresponding attestation and records depositor information through the Program’s Administrative Portal.
The sample template is made available to support the bank’s participation in the Program. It does not constitute legal advice. Neither NBID LLC, ModernFi Deposit Services LLC, nor any of their affiliates assumes responsibility for the bank’s customization, execution, or delivery of the Terms and Conditions.