BC 243
Supp. 1
BANKING ISSUANCE
Type:  Banking Circular
Subject:  Suspicious Transactions
Date: June 8, 1990


TO:  Chief Executive Officers of all National Banks; All State Banking Authorities; 
Chairman, Board of Governors of the Federal Reserve System; Chairman, Federal 
Deposit Insurance Corporation; Conference of State Bank Supervisors; Deputy 
Comptrollers (Districts); District      Administrators; District Counsel and Examining 
Personnel


Information has been received which indicates that names of legitimate insurance 
companies including Central State Insurance Company, Jefferson National Life 
Insurance Company and Reserve Life Insurance Company are cited on "Insurance 
Binders" which are being used as backup collateral to letters of credit issued by 
entities not known as financially capable issuers of such credits. In each reported 
instance, the insurance company so named has advised that such "binders" are 
unauthorized and non-binding instruments.

Extreme caution is advised if any such instrument is disclosed on any such financial 
transaction.

Any information which you may have concerning this matter should be brought to the 
attention of:


 
Office of the Comptroller of the Currency
Enforcement & Compliance Division
Washington, D.C. 20219







Robert B. Serino
Deputy Chief Counsel (Policy)