Straight Deposit Payoff
Definition: A resolution method for failed FDIC insured institutions which can be used when the liquidation, closing or winding up of the affairs is determined to be the least costly resolution of the institution. A straight deposit payoff is one of the two methods of deposit payoffs. (The other is an insured deposit transfer.) In a straight deposit payoff, the FDIC determines the amount of insured deposits and pays that amount directly to each depositor. The FDIC as receiver retains all assets and liabilities, and the receivership bears the cost of liquidating all of the assets. (Also see deposit payoff, insured deposit transfer, and payoff.)