Under the FDIC's Transaction Account Guarantee program (TAG), though December 31, 2009, all non-interest bearing transaction accounts are fully guaranteed by the FDIC regardless of the account balance.  Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC’s general deposit insurance rules.

Recently, the FDIC has offered to banks the option to continue participation in the TAG Program for another 6 months, through June 30, 2010.  To cover the cost of this additional insurance, the FDIC will impose additional insurance assessments on participating banks, in addition to heavy special assessments that have recently been imposed on healthy banks such as Scott Valley Bank to bolster the FDIC’s resources for coverage of failing banks. 

Scott Valley Bank appreciates the continued confidence shown by you, our customers.  As a result of the strength of our balance sheet, and because we have seen no evidence of any measurable concern regarding the Bank’s safety by our customers, our management team has made the decision to allow the Bank’s participation in the TAG Program to end as scheduled on December 31, 2009 and is opting out of  participation in this program for another 6 months. 

Rest assured . . . as always, your deposits are safe with Scott Valley Bank!  After December 31, 2009, funds held in noninterest-bearing transaction accounts will no longer receive unlimited deposit insurance  under the Transaction Account Guarantee program, but will be insured  under the FDIC’s general deposit insurance rules up to at least the $250,000 limit.