The Federal Deposit Insurance Corporation (FDIC) has adopted a final rule regarding whether and under what circumstances the FDIC will grant deposit insurance to a State bank chartered as a limited liability company (LLC). Pursuant to section 5 of the Federal Deposit Insurance Act (FDI Act) the FDIC may grant deposit insurance only to certain depository institutions. One of the statutory requirements for a State bank to be eligible for Federal deposit insurance is that it must be "incorporated under the laws of any State." In the recent past the FDIC received two inquiries regarding whether a State bank that is chartered as an LLC (a "Bank-LLC") could be considered to be "incorporated" for purposes of that requirement. The final rule provides that a bank that is chartered as an LLC under State law would be considered to be "incorporated" under State law if it possesses the four traditional, corporate characteristics of perpetual succession, centralized management, limited liability and free transferability of interests.