On November 3, the Federal Deposit Insurance Corporation (FDIC) announced an extension of its opt-out deadline for participation in its Temporary Liquidity Guarantee Program. That program contains both a debt guarantee component (whereby the FDIC will guarantee until June 30, 2012, the senior unsecured debt issued by eligible financial institutions before June 30, 2009) and an account transaction guarantee component (whereby the FDIC will insure 100% of non-interest bearing deposit transaction accounts held at eligible financial institutions, such as payment processing accounts, payroll accounts and working capital accounts).

The deadline has been extended to December 5, 2008. Institutions that do not opt out before December 5 will be required to pay fees related to participation in the program; institutions that exercise their opt-out right will not be required to pay such fees.

The form required to exercise an opt-out option will be available on the FDIC’s website beginning November 12. According to the FDIC’s website, the choice as to whether to opt in or opt out, once transmitted to the FDIC, is irrevocable.