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• The TAG Program provides for an unlimited �౦��Ϸ���� guarantee for deposits in qualifying noninterest-bearing transaction accounts maintained at insured depository institutions (IDIs) participating in the TAG program. The �౦��Ϸ���� has proposed two alternatives in the attached NPR to provide for an orderly phase-out of the TAG Program.
• The first proposed alternative would result in no change to the �౦��Ϸ����'s current regulation. Under this alternative, the �౦��Ϸ����'s guarantee for deposits held in qualifying noninterest-bearing transaction accounts would expire on December 31, 2009. There would be no increase in fees for this coverage.
• The second proposed alternative would extend the TAG Program until June 30, 2010, with an increase in annual fees from 10 basis points to 25 basis points during the proposed extension period.
• The second proposed alternative also would provide IDIs participating in the TAG Program with a one-time opportunity to opt out of the extended TAG Program on or before October 31, 2009.
• IDIs that choose not to continue in the TAG Program would be required to notify their customers that, beginning on January 1, 2010, deposits in qualifying noninterest-bearing transaction accounts would not be covered by the �౦��Ϸ���� beyond standard deposit insurance limits. IDIs that remain in the TAG Program might need to modify their disclosures to alert depositors of the extended expiration date of the TAG Program.

Distribution:
All �౦��Ϸ����-insured Institutions

Suggested Routing:
Chief Executive Officer
President
Chief Financial Officer

Note:
�౦��Ϸ���� financial institution letters (FILs) may be accessed from the �౦��Ϸ����'s Web site at www.fdic.gov/news/financial-institution-letters/2009/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies of �౦��Ϸ���� financial institution letters may be obtained through the �౦��Ϸ����'s Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).