Modified Payoff

AAA

DEFINITION of 'Modified Payoff'

The partial insurance reimbursement that is paid to depositors of failed banks. Customers who have lost money in excess of what is covered by FDIC insurance can expect to receive a modified payoff. Based on an FDIC estimate of what they could collect from liquidation, a dividend to uninsured depositors would be paid.

INVESTOPEDIA EXPLAINS 'Modified Payoff'

The FDIC instituted the modified payoff in the early 1980s. It was offered in response to a rash of bank failures that led to substantial customer losses.

RELATED TERMS
  1. Broker

    1. An individual or firm that charges a fee or commission for ...
  2. Deposit

    1. A transaction involving a transfer of funds to another party ...
  3. Insurance

    A contract (policy) in which an individual or entity receives ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  6. Elder Law

    Elder law is a legal specialty focusing on the rights and needs ...
Related Articles
  1. The Layoff Payoff: A Severance Package
    Personal Finance

    The Layoff Payoff: A Severance Package

  2. Actively Managed ETFs: The New Mutual ...
    Mutual Funds & ETFs

    Actively Managed ETFs: The New Mutual ...

  3. 2 Indexes That Help Assess Market Behavior ...
    Active Trading Fundamentals

    2 Indexes That Help Assess Market Behavior ...

  4. What's the difference between renter's ...
    Insurance

    What's the difference between renter's ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center