Each depositor insured to at least $250,000 per insured bank



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Question and Answer Guide
Arcola Homestead Savings Bank, Arcola, IL
FDIC Call Center
Toll free number 1-800-238-8209
Hours of Operation – Central Time
Friday, June 4, 2010:   Until 9:00 p.m.
Saturday, June 05, 2010:   9:00 a.m. - 6:00 p.m.
Sunday, June 06, 2010:   Noon - 6:00 p.m.
Monday, June 7, 2010   8:00 a.m. - 8:00 p.m.
Thereafter:   8:00 a.m. - 5:00 p.m.

Is My Account Fully Insured? (https://www2.fdic.gov/drrip/afi/index.asp)
Electronic Deposit Insurance Estimator (https://www.fdic.gov/edie)

Arcola Homestead Savings Bank, Arcola, Illinois was closed Friday, June 4, 2010, by the Illinois Department of Financial and Professional Regulation - Division of Banking. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. According to regulatory policy, there is no advance notice given to the public.

No one lost any insured deposits as a result of the closure of Arcola Homestead Savings Bank. An assuming bank could not be located; therefore, the FDIC will fulfill its obligation to insured depositors by providing checks for their insured amount.

Customers with SAVINGS, IRA, and CD accounts will have their check mailed to them on June 7, 2010, to their address on record with Arcola Homestead Savings Bank.

Customers in Douglas County, IL and Coles County, IL with DEMAND, NOW, or MONEY MARKET accounts can pick up their insured funds check at First Mid-Illinois Bank and Trust, 249 West Springfield Road, Arcola, IL 61910 between Monday, June 7 and Saturday, June 12, 2010. Bank hours are 8:30 AM – 4:00 PM Monday through Thursday, 8:30 AM – 5:00 PM on Friday, and 8:30 – 12:00 Noon on Saturday. If funds have not been picked up by Saturday, June 12th, 2010, checks will be mailed no later than Tuesday, June 15, 2010, to the address on record with Arcola Homestead Savings Bank.

Customers outside of Douglas County, IL and Coles County, IL with DEMAND, NOW or MONEY MARKET accounts will have their check automatically mailed to them on June 7, 2010 and will not be able to pick up funds at First Mid-Illinois Bank.

Federal government direct deposits, including social security checks and other U. S. Treasury deposits, will be redirected to First Mid-Illinois Bank and Trust until July 6, 2010. Please call 1-217-268-5700 for further information.

Customers may receive a phone call or an e-mail notification from the FDIC providing information about the bank closing. However, the FDIC will not try to obtain any private information including claiming/unlocking/unsuspending accounts. Please be watchful and resist any scams to obtain information from you by anyone purporting to act on behalf of Arcola Homestead Savings Bank, First Mid-Illinois Bank and Trust, or the FDIC.

DEPOSIT QUESTIONS

Over $250,000: What if I have more than $250,000 in my accounts at Arcola Homestead Savings Bank?

If you have more than $250,000 in your account or if the total of your related accounts exceeds $250,000, your accounts may require review by an FDIC Claims Agent. You should call the FDIC to schedule a telephone appointment with an FDIC Claims Agent at 1-800-238-8209. You may need to complete certain declarations or affidavits and provide documentation so that the FDIC can make an insurance determination on your account(s).

If you are an investor with a deposit broker, you may need to complete one of these forms only if your investment exceeds $250,000. However, you must mail your form to your deposit broker for submission to the FDIC.

If your deposits DO NOT exceed $250,000 you DO NOT need to complete these documents or contact the FDIC.

An account hold may be placed on an account due to the need for additional documentation from a depositor. For example, a Declaration for Trust form may be required to attest to the parties involved in a trust. These forms can be mailed to you, or you can access them online at:

http://www.fdic.gov/regulations/laws/forms/#DepositClaims

If you have a question regarding the completion of required affidavits or declarations, this website contains samples and instructions for completing the declarations. If your question is not resolved by going to the website, please call 1-800-238-8209 and indicate you have a form completion question.

Account Hold: I have been advised there is a hold on my account. What does that mean?

It is possible a depositor's account was held due to delinquent loans where the depositor is the borrower or guarantor. Additionally, any account pledged as collateral for a loan will continue to be held. A letter will be sent informing you of any holds placed by the FDIC, along with instructions on how to proceed. If you have any questions regarding these holds, please call your loan officer or the FDIC at the number provided in the letter.

Another reason an account hold may be placed is due to the need for additional documentation from a depositor. For example, a Declaration for Trust form may be required to attest to the parties involved in the trust. Please contact the FDIC at 1-800-238-8209 to schedule a telephone appointment.

Account Insurance Status: Is my account fully insured? Is there a method to verify whether my account(s) at Arcola Homestead Savings Bank are fully insured?

A tool, Is My Account Fully Insured? (https://www2.fdic.gov/drrip/afi/index.asp), is available that allows failed bank customers the ability to verify whether their account is fully insured or if they need to contact the FDIC.  This service will be available for use no later than the first business day after the bank's failure.  Once you enter your account number, your insurance status for that account will appear.  If there is a hold on your account, it may be due to the need for the additional documentation referenced in question number one. If there is a hold, you will need to contact the FDIC at 1-800-238-8209 to schedule a telephone appointment.

ATM/Debit Card/Checks: Can I continue to write checks or use my ATM/Debit card?

No. All accounts have been closed. Customers with SAVINGS, IRA, and CD accounts will have their check mailed to them on June 7, 2010, to their address on record with Arcola Homestead Savings Bank.

Customers in Douglas County, IL and Coles County, IL with DEMAND, NOW, or MONEY MARKET accounts can pick up their insured funds check at First Mid-Illinois Bank and Trust, 249 West Springfield Road, Arcola, IL 61910 between Monday, June 7 and Saturday, June 12, 2010. Bank hours are 8:30 AM – 4:00 PM Monday through Thursday, 8:30 AM – 5:00 PM on Friday, and 8:30 – 12:00 Noon on Saturday. If funds have not been picked up by Saturday, June 12th, 2010, checks will be mailed no later than Tuesday, June 15, 2010, to the address on record with Arcola Homestead Savings Bank.

Customers outside of Douglas County, IL and Coles County, IL with DEMAND, NOW or MONEY MARKET accounts will have their check automatically mailed to them on June 7, 2010 and will not be able to pick up funds at First Mid-Illinois Bank.

Automatic Payments/Online Billpay: Will my automatic payments through Billpay continue?

No. All accounts have been closed; therefore, you should contact your creditors to make other arrangements.

Brokered Deposits/Deposit Broker: I am a deposit broker or I have brokered deposits. What do I need to do?

Insured brokered deposits will be paid off when the insurance determination is complete. The FDIC offers an on-line reference guide to deposit brokers acting as agents for their investor clientele. This site outlines the FDIC’s policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts in a failed FDIC-insured bank. Please read the following Deposit Broker Processing Guide completely before contacting the FDIC with questions: http://www.fdic.gov/deposit/deposits/brokers/index.html.

Should you have any questions regarding the completion of required affidavits or declarations on behalf of your client, please call 1-800-238-8209 and indicate you have a form completion question.

If you are a customer who has an Arcola Homestead Savings Bank deposit through a broker, you must contact your broker with any questions. Once the FDIC receives a balanced investor file along with all the required documentation, from your broker, your insured funds will be wired to them on your behalf.

Checks not honored: A merchant will not honor my check. What can I do?

All checks will be returned and stamped “Bank Closed.” This document is a letter you can provide to your creditors explaining that checks were returned through no fault of your own due to the bank closing, and this is no reflection on you.

Claim Account(s): How do I claim my account(s)?

Customers with SAVINGS, IRA, and CD accounts will have their check mailed to them on June 7, 2010, to their address on record with Arcola Homestead Savings Bank.

Customers in Douglas County, IL and Coles County, IL with DEMAND, NOW, or MONEY MARKET accounts can pick up their insured funds check at First Mid-Illinois Bank and Trust, 249 West Springfield Road, Arcola, IL 61910 between Monday, June 7 and Saturday, June 12, 2010. Bank hours are 8:30 AM – 4:00 PM Monday through Thursday, 8:30 AM – 5:00 PM on Friday, and 8:30 – 12:00 Noon on Saturday. If funds have not been picked up by Saturday, June 12th, 2010, checks will be mailed no later than Tuesday, June 15, 2010, to the address on record with Arcola Homestead Savings Bank.

Customers outside of Douglas and Coles County with DEMAND, NOW or MONEY MARKET accounts will have their check automatically mailed to them on June 7, 2010 and will not be able to pick up funds at First Mid-Illinois Bank.

Please be advised that this money will be turned over to your state as unclaimed property if the insurance check is not cashed within 18 months. Unclaimed property can be located by visiting www.missingmoney.com or contacting your state treasurer’s office or office of unclaimed property.

Government direct deposits, including social security checks, will be redirected to First Mid-Illinois Bank and Trust until July 6th, 2010. Please contact First Mid-Illinois Bank at 1-217-268-5700 for further information.

Customer Impact: How does this failure affect me?

All accounts have been closed. Customers with SAVINGS, IRA, and CD accounts will have their check mailed to them on June 7, 2010, to their address on record with Arcola Homestead Savings Bank.

Customers in Douglas County, IL and Coles County, IL with DEMAND, NOW, or MONEY MARKET accounts can pick up their insured funds check at First Mid-Illinois Bank and Trust, 249 West Springfield Road, Arcola, IL 61910 between Monday, June 7 and Saturday, June 12, 2010. Bank hours are 8:30 AM – 4:00 PM Monday through Thursday, 8:30 AM – 5:00 PM on Friday, and 8:30 – 12:00 Noon on Saturday. If funds have not been picked up by Saturday, June 12th, 2010, checks will be mailed no later than Tuesday, June 15, 2010, to the address on record with Arcola Homestead Savings Bank.

Customers outside of Douglas and Coles County with DEMAND CHECKING, NOW or MONEY MARKET accounts will have their check automatically mailed to them on June 7, 2010 and will not be able to pick up funds at First Mid-Illinois Bank.

Federal government direct deposits, including social security and other U. S Treasury checks, will be redirected to First Mid-Illinois Bank and Trust until July 6th, 2010. Please call First Mid-Illinois Bank at 1-217-268-5700 for further information.

If you had a loan with the bank, continue to make your checks payable to Arcola Homestead Savings Bank and mail to the same address you have used in the past until you are instructed otherwise.

Direct Deposits, Social Security: What will happen to my direct deposits?

The FDIC has arranged for federal government direct deposits, including Social Security and other U.S. Treasury checks, to be redirected to First Mid-Illinois Bank and Trust until July 6th, 2010. These will be processed at the same time they have been processed in the past. You may contact First Mid-Illinois at 1-217-268-5700.

You should make arrangements with another financial institution as soon as possible to transfer any direct deposits. Please see below for links to the most common senders of government direct deposits:

Social Security - http://www.ssa.gov/deposit/
Veteran’s Affairs - https://iris.va.gov/scripts/iris.cfg/php.exe/enduser/cci/phonenbrs.php

Early withdrawal penalty: Will I incur an early withdrawal penalty if I close my CD before maturity?

Your CD will automatically be closed, and your insurance check will be mailed on Monday, June 7th, 2010. You will not be assessed an early withdrawal penalty.

Final Statement: How will I get my final account statement(s) from Arcola Homestead Savings Bank

You will receive a final statement within one week of the closing.

Interest: Will I continue to earn interest at the same rate?

All interest on insured deposits accrued through Friday, June 4th, 2010, will be paid at your same rate. This will be included in the insurance check you will receive from the FDIC.

Interest Checks/Cashier's Checks: Can I cash my interest check or cashier's check?

No, these checks will not clear; Interest Checks, that have not been cashed, will be replaced with a new check issued by FDIC and mailed on June 7th, 2010, to the address on record with Arcola Homestead Savings Bank.

Accrued interest through Friday, June 4th, 2010, will be included in your insurance check. If you have more than $250,000 in your account, or if the total of your related accounts exceeds $250,000, your accounts may require review by an FDIC Claims Agent before you are mailed a check. You should call the FDIC to schedule a telephone appointment with an FDIC Claims Agent at 1-800-238-8209.

Official items without adequate mailing information may need to be replaced, if the amount is within the insurance limit for the depositor, please contact the FDIC at 1-949-208-6690 to determine if your check can be replaced.

IRAs: What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?

From the date a check is issued to you from your IRA, you have 60 days to roll this over into another retirement vehicle. You should consult IRS Publication 590 and/or your tax advisor concerning the possible tax consequences of such distribution. This publication specifically addresses this situation; therefore, you should review it carefully. IRS Publication 590 may be obtained by contacting your local IRS office or via the Internet at www.irs.gov.

IRA funds are insured separately from other types of accounts up to $250,000. IRA checks for the insured amount will be mailed on Monday, June 7th, 2010, to your address on record with the bank.

Lose Any Money: Will I lose anything on my deposit account?

Principal and interest on insured accounts, through Friday, June 4, 2010, are protected by the FDIC, to at least $250,000. Certain entitlements and different types of deposits can be insured in excess of the $250,000.

If you have more than $250,000 in your account (or $250,000 in your IRA), or if the total of your related accounts exceeds $250,000, your accounts may require review by an FDIC Claim Agent. All accounts that appear to be related are reviewed to determine ownership and insurance coverage. See question number one for information regarding forms you may need to complete to expedite this process.

Outstanding Checks: What will happen to the checks which have not cleared my account?

Checks that were drawn on Arcola Homestead Savings Bank that did not clear before the institution closed will be returned indicating “Bank Closed.” This document is a letter you can provide to your creditors explaining the bank was closed, and checks have been returned through no fault of your own. You should contact your vendors as soon as possible.

Records/Account Histories: What if I need information regarding my account during the time Arcola Homestead Savings Bank was in business?

Please contact the FDIC at 1-800-238-8209 to request a copy of your records.

Tax Reporting - 1098/1099s: Who will send my 1098 and/or 1099 information after the end of the year?

The FDIC will be responsible for mailing your 1099 tax information. Your 1098 reporting will be done by the FDIC or the servicer of your loan. You will be notified of any changes in ownership or servicing of your loan.

Uninsured: Will I collect my uninsured deposits?

If you have a loan in the same name as your uninsured deposit account, it may be possible to offset your uninsured amount against your loan. You should discuss this with your claim agent during your appointment.

If it is determined that you have some uninsured funds, the FDIC will mail you a Receivership Certificate. This certificate entitles you to share proportionately in any funds recovered through the sale of the assets of Arcola Homestead Savings Bank. You may eventually recover more of your uninsured funds as assets are liquidated.

When a financial institution is closed, and the Federal Deposit Insurance Corporation ("FDIC") is appointed as receiver, one of FDIC's responsibilities is to sell the institution's assets to pay the depositors and its creditors. The money generated by the sale of these assets will flow through the Receivership, and periodic dividend payments will be made to proven claimants when excess cash is available. For an explanation of the dividend process, go to FDIC Dividends from Failed Banks (http://www2.fdic.gov/divweb/index.asp).

Of course, you will receive full payment for your insured amount from First Mid-Illinois or by check.

If you have a deposit through a broker, your insured funds will be wired to your broker on your behalf once the FDIC receives all required documentation from your broker.

Wire Transfer: Can funds be wired to me?

No, regretfully, we cannot wire your funds.

LOAN QUESTIONS

Automatic Payments: Will my ACH transaction payment still occur on its assigned date?

No. All accounts have been closed. You should contact your loan officer to make other arrangements for your loan payments.

Construction Loan Draws: Will construction draws continue? Will my project be completed?

Each loan is being reviewed independently and will be determined on a case-by-case basis. You should direct your questions to your loan officer.

Construction Loan Voucher Control: Will my subcontractors be paid as before?

Each loan is being reviewed independently and will be determined on a case-by-case basis. You should direct your questions to your loan officer.

Escrows: Who is my lender and has my loan contact changed?

All services previously performed related to your loan will continue. Should you receive notification that any portion of your taxes or insurance were not paid, please notify your loan officer immediately.

Fees: Are there any changes to fees or charges due to this event?

No. The current fee structure will remain the same.

Foreclosures: Will the FDIC continue foreclosures in process?

At this point, all foreclosure actions have been suspended in order to properly evaluate the loans and the borrowers’ ability to repay. It is our intention to sell all loans, and it will be up to the new owner to determine the best method of collection on the loan. There may be instances where FDIC will continue with the foreclosure process, but this will be done on a case-by-case basis. .

Lender and contact names: Who is my lender and has my loan contact changed?

Your loan is currently owned by the FDIC and is being serviced by all of the same personnel with whom you have worked in the past. All prior contacts remain the same.

Loan Sales: Will my loan be sold?

Your loan may be sold at a future date. If that occurs, you will be notified in advance through written correspondence. If you are concerned about whom your future lender or servicer will be, you have the right to independently refinance your loan with another lender.

Line of Credit Advances – Home Equity: Can I continue to obtain advances on my personal line of credit?

No. All lines of credit, including Home Equity Lines of Credit (HELOCs), have been suspended. You should contact another financial institution to discuss establishing a borrowing relationship.

Loan in Process: I have a loan currently in process. How is my loan impacted?

Please contact your loan officer directly.

Loan Sweeps: Will my loan sweep be discontinued?

This will be determined on a case-by-case basis. Please contact your loan officer.

Overdraft Line of Credit: Will my overdraft line of credit continue to cover my overdrafts?

No. All accounts have been closed.

Payments: How/where do I make my payments? Can I still pay by phone or at the branch?

You should continue to make your payments as agreed. Make checks payable to Arcola Homestead Savings Bank and utilize the same payment address information.

Pre-payment Penalty: If I refinance with another lender, will my pre-payment penalty be waived?

Any pre-payment penalty will be waived as long as FDIC as Receiver for Arcola Homestead Savings Bank has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.

What Happens Now: What will happen to my loan?

Each loan is currently being reviewed independently to determine the best action for that individual loan. Your loan may be sold at a future date. If that occurs, you will be notified in advance through written correspondence. If you are concerned about whom your future lender or servicer may be, you have the right to independently refinance your loan with another lender.

GENERAL QUESTIONS

All-Deposit Transfer versus Insured Deposit Transfer: Why do all deposits, insured and uninsured, pass is some transactions but not in others?

When a buyer cannot be found for a failed bank, the FDIC honors its obligation to insured depositors by mailing an insurance check or transferring insured funds to a paying agent bank.

FDIC Insurance: How can I find out more about Federal Deposit Insurance rules?

You may access our website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator (EDIE):

Deposit Insurance www.fdic.gov/deposit/index.html
Are my deposits insured? www.fdic.gov/deposit/deposits/index.html
Your Insured Deposits (for a comprehensive guide) www.fdic.gov/deposit/deposits/insured/index.html
EDIE www.fdic.gov/edie


You may also order any FDIC publication:

FDIC Public Information Center
3501 North Fairfax Drive
Room E-1002
Arlington, VA 22226

703-562-2200 Phone
703-562-2296 Fax
publicinfo@fdic.gov

Media: I represent a TV/Newspaper/Radio and would like some information.

Please contact the Office of Public Affairs:

David Barr
1-202-898-6992
dbarr@fdic.gov

Shareholders: I am a shareholder. What happens to my shares?

The Arcola Homestead Savings Bank had no publicly owned stock. Equity shareholders were invested in the holding company, Arcola Holdings, Inc, Bourbonnais, Illinois and not in the bank. Please do not file a claim with the Receiver, rather contact the holding company with any questions you may have:

Arcola Holdings, Inc.
1618 Waterberry Drive
Bourbonnais, IL 60914

Unpaid Bill: I did some work for Arcola Homestead Savings Bank and have not yet been paid. What should I do?

Please send your bills to the following address:

Federal Deposit Insurance Corporation
Receiver: Arcola Homestead Savings Bank
1601 N. Bryan Street
Dallas, TX  75201-3430
Attention: Claims Agent
 

Work for FDIC – Contract or Employment: How can I apply to work for FDIC as a contractor or employee?

You may access information about doing business with the FDIC at
Procurement Opportunities (www.fdic.gov/buying/goods/opportunities/index.html)

You must also register in the Central Contractor Registration database at www.ccr.gov.
Entry into the database is not a guarantee that a contractor will receive a future solicitation.

You may also call 1-866-308-4470 for more information or send an email to ProcurementOpportunities@fdic.gov. Please include a statement of your corporate capabilities, contact information and Minority or Women-Owned Business (MWOB) status, if any.

To review positions currently available at the FDIC, visit Careers at FDIC (www.fdic.gov/about/jobs/index.html).




Last Updated 09/14/2012 cservicefdicdal@fdic.gov