Depository Financial Institution

An entity that deposits in the ordinary course of a banking or similar business. A Depository Financial Institution entity is one that accepts deposits in the ordinary course of a banking or similar business. An Entity is considered to be engaged in a “banking or similar business” if, in the ordinary course of its business with customers, the Entity accepts deposits or other similar investments of funds and regularly engages in one or more of the following activities:

• Makes personal, mortgage, industrial, or other loans or provides other extensions of credit;
• Purchases, sells, discounts, or negotiates accounts receivable, installment obligations, notes, drafts, checks, bills of exchange, acceptances, or other evidences of indebtedness;
• Issues letters of credit and negotiates drafts drawn thereunder;
• Provides trust or fiduciary services;
• Finances foreign exchange transactions; or
• Enters into, purchases, or disposes of finance leases or leased assets.

Savings banks, commercial banks, savings and loan associations, and credit unions would generally be considered Depository Institutions.