Due to the lapse in appropriations, Department of Justice websites will not be regularly updated. The Department’s essential law enforcement and national security functions will continue. Please refer to the Department of Justice’s contingency plan for more information.

403. Customers and Persons Covered

The term "customer" is defined at 12 U.S.C. § 3401(5). In order to be a customer under the Act, it is first necessary to be considered a "person". A "person" is defined as an individual or a partnership of five or fewer individuals. 12 U.S.C. § 3401(4). Corporations, pension funds, special interest nonprofit organizations, trusts or other legal entities are not covered by the Act. Pittsburgh Nat'l Bank v. United States, 771 F.2d 73 (3rd Cir. 1985)(holding that a corporation was not a customer); Spa Flying Service, Inc. v. United States, 724 F.2d 95 (8th Cir. 1984)(holding that a corporation was not a customer); Donovan v. National Bank, 696 F.2d 678 (9th Cir. 1983)(pension funds are not covered by the Act. Transactions of bank customers with the plans are, however, covered by the Act); Ridgeley v. Merchants State Bank, 699 F. Supp. 100 (N.D. Tex. 1988)(Special interest nonprofit organizations are not covered by the Act). Further, even though items in corporate or other non-covered accounts reflect transactions of private individuals, such as check endorsements or loan guarantees, such items are not covered by the Act. See H.R. Rep. No. 95-1383 at 217, 7 U.S. Code Cong. & Ad. News, 95th Cong., 2nd Sess., at 9347-9348.

Updated September 19, 2018