{"_id":"5bd9d6d639961400302d0420","project":"59f79e3c584eb200345ceafc","version":{"_id":"5ba178b00a916500030c6a21","project":"59f79e3c584eb200345ceafc","__v":24,"forked_from":"59f79e3c584eb200345ceaff","createdAt":"2015-09-17T03:47:20.956Z","releaseDate":"2015-09-17T03:47:20.956Z","categories":["5ba178b00a916500030c69a2","5ba178b00a916500030c69a3","5ba178b00a916500030c69a4","5ba178b00a916500030c69a5","5ba178b00a916500030c69a6","5ba178b00a916500030c69a7","5ba178b00a916500030c69a8","5ba178b00a916500030c69a9","5ba178b00a916500030c69aa","5ba178b00a916500030c69ab","5ba178b00a916500030c69ac","5afb6888212c690003ae3d3b","5ba178b00a916500030c69ad","5ba178b00a916500030c69ae","5ba2dcbc99f53f0003b97e2c","5babd73fa0ab3e0003ead030","5bb4038be7222e000334dd97","5bb55954478c1300031a44c2","5bb665a1607307000327c81e","5bb6f90229a7fb0003a0650d","5bb7f9bc29a7fb0003a07ac1","5bba58bd7ba7710003bd901d","5bba6dac7ba7710003bd908d","5bba6e257ba7710003bd9090","5bbac87810189c0003e619ea","5bbb9d02b5862c00036266b2","5bbbadb6219c3e000376c2de","5bc417751d1b0000182bf7f6","5bc59e3b2a5b4f0044db5b97","5bc7bbce2262cc0041f6eff2","5bce6a3580a7250031199f34","5bcfac2c4082510019f2d91b","5bcfac3757bed90030e45d68","5bcfac45d305bc0049941539","5bd2a43548bb6f00289c8fad","5bd3a42a026ebe001f66259e","5bd9d5afffe003005b02f97b","5becb7ee85c6b300557662b6"],"is_deprecated":false,"is_hidden":false,"is_beta":true,"is_stable":false,"codename":"","version_clean":"3.2.0","version":"3.2"},"category":{"_id":"5bd9d5afffe003005b02f97b","project":"59f79e3c584eb200345ceafc","version":"5ba178b00a916500030c6a21","__v":0,"sync":{"url":"","isSync":false},"reference":false,"createdAt":"2018-10-31T16:17:51.788Z","from_sync":false,"order":9,"slug":"fbo-accounts","title":"FBO Accounts"},"user":"5557e76e512c300d007730d1","__v":0,"parentDoc":null,"updates":[],"next":{"pages":[],"description":""},"createdAt":"2018-10-31T16:22:46.461Z","link_external":false,"link_url":"","sync_unique":"","hidden":false,"api":{"results":{"codes":[]},"settings":"","auth":"required","params":[],"url":""},"isReference":false,"order":4,"body":"## Sub-Accounts (within a platform's FBO Account)\n\nWhen a user establishes a sub-account (SUBACCOUNT-US or IB-SUBACCOUNT-US nodes) information describing how/where the funds are held must be included in the Platform's terms of service.\n\n1. If Platform is using an FBO account\\* and using Synapse to track User balances in Sub-Accounts , additional disclosures must be made. **The following language must be used in your Terms of Service or User Agreement:**\n\n      _"By using our services, you authorize \\<Insert platform name\\> to hold your deposits for your benefit at Evolve Bank & Trust, Member FDIC, in an account ("FBO Account"). For purposes of applicable FDIC deposit insurance limitations, please note that deposits in Evolve Bank & Trust FBO Account may not be separately insured from any other deposit accounts you may have with Evolve Bank & Trust."_\n\n      Note: Platform's FBO account is a Fiduciary Deposit Account with Bank titled in Platform's legal name "for benefit of" Platform's Users.  The FBO account is subject to the Custodial Account Agreement, Privacy Policy, and related agreement for Bank found [here](https://synapsefi.com/legal).\n\n2. A footer must be included on pages where an account balance is shown, to confirm where and how the funds are being held on their behalf. **The following language must be used:**\n\n      _"Funds are held by Evolve Bank & Trust, Member FDIC. These funds are held in an account under \\<insert platform name\\>'s name, for your benefit."_\n\n**Pass Through FDIC Coverage**\n\nThe Sub-Accounts of an FBO account may be eligible to receive "pass-through" FDIC insurance coverage, under the condition that all requirements set forth in the spec sheet are met.\n\nPlatform may meet the test for "pass-through" coverage as follows:\n\nA) Fund Ownership:  Include in your agreement with Users the language above (duplicated here for clarity):\n       _"By using our services, you authorize \\<Insert Platform Name\\> to hold your deposits for your benefit at Evolve Bank & Trust, Member FDIC, in a custodial account ("FBO Account"). For purposes of applicable FDIC deposit insurance limitations, please note that deposits in Evolve Bank & Trust FBO Account may not be separately insured from any other deposit accounts you may have with Evolve Bank & Trust."_\n\nB) Account Titled as FBO: Platform must ensure all User deposits are directed to its Deposit Account with Bank which is titled as an FBO account.\n\nC) Sub-Account Records: Transactions created from Users must be sent to User's SUBACCOUNT-US or IB-SUBACCOUNT-US node in order to manage the ledger of each User.\n\nFor more information, please review the FDIC's rules and regulations and the following guides on [fiduciary accounts](https://www.fdic.gov/deposit/diguidebankers/documents/fiduciary-accounts.pdf) and pass-through FDIC coverage.\n\n##Statements\nSend monthly statements to users with our [Statements API](https://docs.synapsefi.com/v3.2/docs/statements-intro).","excerpt":"FBO account legal disclosures","slug":"legal-disclosures-8","type":"basic","title":"Legal Disclosures"}

Legal Disclosures

FBO account legal disclosures

## Sub-Accounts (within a platform's FBO Account) When a user establishes a sub-account (SUBACCOUNT-US or IB-SUBACCOUNT-US nodes) information describing how/where the funds are held must be included in the Platform's terms of service. 1. If Platform is using an FBO account\* and using Synapse to track User balances in Sub-Accounts , additional disclosures must be made. **The following language must be used in your Terms of Service or User Agreement:** _"By using our services, you authorize \<Insert platform name\> to hold your deposits for your benefit at Evolve Bank & Trust, Member FDIC, in an account ("FBO Account"). For purposes of applicable FDIC deposit insurance limitations, please note that deposits in Evolve Bank & Trust FBO Account may not be separately insured from any other deposit accounts you may have with Evolve Bank & Trust."_ Note: Platform's FBO account is a Fiduciary Deposit Account with Bank titled in Platform's legal name "for benefit of" Platform's Users. The FBO account is subject to the Custodial Account Agreement, Privacy Policy, and related agreement for Bank found [here](https://synapsefi.com/legal). 2. A footer must be included on pages where an account balance is shown, to confirm where and how the funds are being held on their behalf. **The following language must be used:** _"Funds are held by Evolve Bank & Trust, Member FDIC. These funds are held in an account under \<insert platform name\>'s name, for your benefit."_ **Pass Through FDIC Coverage** The Sub-Accounts of an FBO account may be eligible to receive "pass-through" FDIC insurance coverage, under the condition that all requirements set forth in the spec sheet are met. Platform may meet the test for "pass-through" coverage as follows: A) Fund Ownership: Include in your agreement with Users the language above (duplicated here for clarity): _"By using our services, you authorize \<Insert Platform Name\> to hold your deposits for your benefit at Evolve Bank & Trust, Member FDIC, in a custodial account ("FBO Account"). For purposes of applicable FDIC deposit insurance limitations, please note that deposits in Evolve Bank & Trust FBO Account may not be separately insured from any other deposit accounts you may have with Evolve Bank & Trust."_ B) Account Titled as FBO: Platform must ensure all User deposits are directed to its Deposit Account with Bank which is titled as an FBO account. C) Sub-Account Records: Transactions created from Users must be sent to User's SUBACCOUNT-US or IB-SUBACCOUNT-US node in order to manage the ledger of each User. For more information, please review the FDIC's rules and regulations and the following guides on [fiduciary accounts](https://www.fdic.gov/deposit/diguidebankers/documents/fiduciary-accounts.pdf) and pass-through FDIC coverage. ##Statements Send monthly statements to users with our [Statements API](https://docs.synapsefi.com/v3.2/docs/statements-intro).