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Sweep Account Disclosure

Beginning July 1, 2009, the Federal Deposit Insurance Corporation ("FDIC") requires (under 12 CFR Part 360) that all institutions that offer Sweep Accounts must provide customers with a new disclosure annually.  This disclosure describes the extent to which the swept funds would be covered under FDIC Deposit Insurance Coverage should the bank become insolvent and close.

The Sweep program made available to Ameriana's business customers "sweeps" funds from our customers' Sweep Accounts at the end of each business day and transfers those funds to Federated Investors, Inc. ("Federated").  Once the transfer is complete, Federated invests the funds in non-deposit investment vehicles that are not covered by FDIC Deposit Insurance until they are "swept" back to the bank.  While the funds are deposited with Federated, the customer is a secured creditor and will receive payment for the value of the assets held.  The amount of FDIC Deposit Insurance Coverage is subject to the limitations in force at the time.

If the bank is closed before the transfer occurs, the Sweep customer is protected by FDIC Deposit Insurance to the maximum amount allowed by regulation.  Through December 31, 2009, the government's Transaction Liquidity Guarantee Program insures all bank-held funds in Sweep checking accounts.  Beginning January 1, 2010, this government program is scheduled to end and the amount of FDIC Deposit Insurance Coverage would be calculated subject to the insurance limitations in force at that time.  Any funds already on deposit at Federated would position the customer to be a secured creditor who would receive payment for the value of the assets held.

If you have any questions about the Transaction Liquidity Guarantee Program, or how these changes might affect your Sweep account, please contact our Compliance Department at 800-487-2118 or email CustomerCare@ameriana.com.

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