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

Question and Answer Guide

First Arizona Savings, a F.S.B., Scottsdale, AZ


FDIC Call Center
Toll free number 1-800-830-4698
Hours of Operation – Pacific Time
Friday, October 22, 2010:  Until 9:00 p.m.
Saturday, October 23, 2010:
   9:00 a.m. – 6:00 p.m.
Sunday, October 24, 2010:
   Noon – 6:00 p.m.
Thereafter:
  8:00 a.m. – 8:00 p.m.

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

First Arizona Savings, A FSB (First Arizona Savings), Scottsdale, AZ, was closed October 22, 2010 by the Office of Thrift Supervision. 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 First Arizona Savings.  An assuming bank could not be located; therefore, the FDIC will fulfill its obligation to insured depositors by providing checks for their insured deposit amount.

If the balance in your interest bearing account(s) (this includes any accounts in which you have an ownership) is less than $250,000, or if your deposit is in a transaction account(s), no action is required on your part at this time.  The FDIC will mail you a check for your insured deposit , which you should receive by October 29, 2010.

The following answers are provided to the most commonly asked questions by customers of the failed bank.

Deposit Questions

  1. Over $250,000 What if I had more than $250,000 in my accounts at First Arizona Savings?
  2. Account Hold I have been advised there is a hold on my account. What does that mean?
  3. Account Insurance Status: Is my account fully insured? Is there a method to verify whether my account(s) at First Arizona Savings, are fully insured?
  4. ATM/Debit Card/Checks Can I continue to write checks or use my ATM/Debit card?
  5. Automatic Payments/Online Billpay Will my automatic payments through Billpay continue?
  6. Brokered Deposits/Deposit Broker I am a deposit broker or I have brokered deposits. What do I need to do?
  7. Claim Account(s) How do I claim my account(s)?
  8. Customer Impact How does this action affect me?
  9. Direct Deposits, Social Security What will happen to my direct deposits?
  10. Early withdrawal penalty Will I incur an early withdrawal penalty if I close my Certificate of Deposit (CD) before maturity?
  11. Final Statement How will I get my final account statement(s) from First Arizona Savings, a F.S.B.?
  12. Interest Will I continue to earn interest at the same rate?
  13. Interest Checks/Cashier's Checks Can I cash my interest check or cashier's check?
  14. Internet Connection Will my Internet connection to First Arizona Savings work?
  15. IRAs Is my Individual Retirement Account (IRA) insured?
  16. Lose Any Money? Will I lose anything on my deposit account?
  17. Outstanding Checks What will happen to the checks which have not cleared my account?
  18. Records/Account Histories What if I need information regarding my account during the time First Arizona Savings, a F.S.B. was in business?
  19. Tax Reporting - 1098/1099s Who will send my 1098 and/or 1099 information after the end of the year?
  20. Uninsured Will I collect my uninsured deposits?
  21. Wire Transfer Can funds be wired to me?

Loan Questions

  1. Automatic Payments Will my automatic payment still occur on its assigned date?
  2. Construction Loan Draws Will draws continue and will my project be completed?
  3. Construction Loan Voucher Control Will my subcontractors be paid as before?
  4. Escrows Will you continue to pay my escrows?
  5. Fees Are there any changes to fees or charges due to this event?
  6. Foreclosures Will the FDIC continue foreclosures in process?
  7. Lender and Contact Names Who is my lender and has my loan contact changed?
  8. Loan Sales Will my loan be sold?
  9. Line of Credit Advances – Home Equity Can I continue to obtain advances on my line of credit?
  10. Loan in Process I have a loan currently in process. How is my loan impacted?
  11. Loan Sweeps Will my loan sweep be discontinued?
  12. Overdraft Line of Credit Will my overdraft line of credit continue to cover my overdrafts?
  13. Payments How/where do I make my payments?
  14. Pre-payment Penalty If I refinance, will my pre-payment penalty be waived?
  15. What Happens Now What will happen to my loan?

General Questions

  1. Safe Deposit Boxes How can I claim the contents of my safe deposit box?
  2. FDIC Insurance Where can I find out more information about FDIC Insurance rules?
  3. Media I represent a TV/Newspaper/Radio and would like some information.
  4. Shareholders I am a shareholder in FASLA Holding Company. What happens to my shares?
  5. Unpaid Bill I have done some work for First Arizona Savings and have not yet been paid.
  6. What Happened? What happened? Why did the bank fail?
  7. Work for FDIC – Contract or Employment How can I apply to work for FDIC as a contractor or employee?

DEPOSIT QUESTIONS

1. What if I have more than $250,000 in my accounts at First Arizona Savings?

If you have more than $250,000 in your interest-bearing account, or if the total of your related interest-bearing 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 a FDIC Claims Agent at 1 800-830-4698.

If you have an interest-bearing account or group of interest-bearing accounts that exceeds $250,000, 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 your deposits DO NOT exceed $250,000, or if your deposits are in a noninterest-bearing transaction account(s) 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 1-800-830-4698 and indicate you have a form completion question.

2. 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 1-800-830-4698 to schedule a telephone appointment.

3. Is there a method to verify whether my account(s) at First Arizona Savings are fully insured?

A tool 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. The link to specific contact information is http://www2.fdic.gov/dip/index.asp. 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 1-800-830-4698 to schedule a telephone appointment.

4. Can I continue to write checks or use my ATM/Debit card?

No. All accounts have been closed. You will receive a check for your insured deposit from the FDIC within one week of the closing.

5. Will my automatic payments through Billpay continue?

No. All accounts have been closed and Billpay has been discontinued; therefore, you should contact your creditors to make other arrangements. The FDIC has provided a letter you can provide to your creditors explaining the failure of the institution through no fault of your own due to the bank closing, and this is no reflection on you.

6. I am a deposit broker or I have brokered deposits. What do I need to do?

If you are a customer who has a First Arizona Savings deposit through a broker, you must contact your broker with any questions. 

7. How do I claim my account(s)?

You will receive a check for your insured deposit from the FDIC within one week of the closing.  Please be advised that this money will be turned over to your state as unclaimed property if this 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.

8. How does this action affect me?

All accounts have been closed, and you will receive a check for your insured deposit from the FDIC within one week of the closing.  If you had a loan with First Arizona Savings, please continue to make your payments to the same address as you have in the past until you are instructed otherwise.  Continue to make your checks payable to First Arizona Savings.

9. What will happen to my direct deposits?

All accounts have been closed; however, the FDIC has arranged for recipients of direct deposits (ACH) made by the US Treasury including but not limited to:

  • Social Security
  • Supplemental Security Income
  • Civil Service Retirement
  • Railroad Retirement
  • Veterans Administration
  • Income Tax Refunds

to be redirected to Mutual of Omaha Bank. You have until January 21, 2011 to visit one of the two branches of Mutual of Omaha Bank, identified in the table below, to obtain your funds and transfer your federal government (ACH) direct deposits. 

Closed First Arizona Savings Location

Nearest Mutual of Omaha Bank branch location

Maricopa County

7139 East Shea Blvd
Scottsdale, Arizona  85254

Mohave County

2350 Miracle Mile Suite 600
Bullhead City, Arizona  86442

You may contact Mutual of Omaha Bank at 1-866-688-7957.  Please remember these government direct deposit payments will be processed at the same time they have been processed in the past.  All other direct deposits will cease as of October 22, 2010.

Note that all ACH direct deposits need to be transferred to Mutual of Omaha Bank or another financial institution as soon as possible.  It is recommended that you visit the institution of your choice as they will be glad to assist you in completing the forms to transfer your deposit. For those with a Social Security Direct Deposit, a website links are provided below. You may also call Social Security at 1-800-772-1213 for assistance in transferring your account. http://www.ssa.gov/deposit/ or http://www.godirect.gov

10. Will I incur an early withdrawal penalty if I close my CD before maturity?

Your Certificate of Deposit (CD) will automatically be closed, and you will receive a check for your insured deposit from the FDIC within one week of the closing.  You will NOT be assessed an early withdrawal penalty.

11. How will I get my final account statement(s) from First Arizona Savings?

A final statement will be mailed within one week of the closing.

12. Will I continue to earn interest at the same rate?

All interest on insured deposits accrued through Friday, October 22, 2010, will be paid at your same rate. This will be included in the insurance check you will receive from the FDIC within one week of the closing.

13. Can I cash my interest check or cashier's check?

Interest checks that have not cleared by October 22, 2010 will be replaced with a new check issued by FDIC.  If you have questions about your replacement check, please contact the FDIC at 1-800-830-4698.

Cashier’s checks and money orders were issued by MoneyGram and can be cashed. If you have a problem with your MoneyGram Cashier’s checks or money orders please contact the FDIC.

14. Will my Internet connection to First Arizona Savings work?

All accounts have been closed, and you will no longer have access to the website.

15.Is my Individual Retirement Account (IRA) insured?

You will receive a separate check from the FDIC for your IRA account, up to $250,000.  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.  Copies of this information will also be available at the bank branches.

16. Will I lose anything on deposit account?

Insured deposits and interest through October 22, 2010, are protected by the FDIC, to at least $250,000.  Certain entitlements and different types of accounts can be insured in excess of the $250,000.

If you have more than $250,000 in your interest bearing account (or $250,000 in your IRA), or if the total of your related interest bearing 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.

17. What will happen to the checks which have not cleared my account?

Checks that were drawn on First Arizona Savings that did not clear before the institution closed will be returned and will indicate that the bank has been closed.  The FDIC has provided a letter you can provide to your merchants/creditors explaining that the bank was closed, and checks have been returned through no fault of your own. You should contact your merchants/creditors as soon as possible.

18. What if I need information regarding my account during the time First Arizona Savings was in business?

Please contact the FDIC at 1-800-830-4698 to request a copy of your records.

19. 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.

20. 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 claims agent during your appointment.

If it is determined that you have some uninsured funds, the FDIC will mail you a Receiver’s Certificate. This certificate entitles you to share proportionately in any funds recovered through the sale of the assets of First Arizona Savings, A FSB.  You may eventually recover some 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 the 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 http://www2.fdic.gov/divweb/index.asp.

Of course, you will receive full payment for your insured deposits by check directly from the FDIC.

21. Can funds be wired to me?

No, regretfully, we cannot wire your funds directly for individual depositors.


LOAN QUESTIONS

22. Will my automatic payment still occur on its assigned date?

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

23. Will construction draws continue? Will my project be completed?

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

24. Will my subcontractors be paid as before?

Each loan is being reviewed independently and will be determined on a case-by-case basis.

25. Will you continue to pay my escrows?

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.

26. Are there any changes to fees or charges due to this event?

No. The current fee structure will remain the same.

27. Will the FDIC continue foreclosures in process?

At this point, we have suspended all foreclosure actions in order to properly evaluate the loans and the borrowers' ability to repay. It is the FDIC's 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 we will continue with the foreclosure process, but this will be done on a case-by-case basis.

28. 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.

29. Will my loan be sold?

Your loan may be sold at a future undetermined 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.

30. Can I continue to obtain advances on my 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.

31. I have a loan currently in process. How is my loan impacted?

Please contact your loan officer directly.

32. Will my loan sweep be discontinued?

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

33. Will my overdraft line of credit continue to cover my overdrafts?

No. All accounts have been closed.

34. How and where do I make my payments?

You should continue to make your payments as agreed. Make checks payable to First Arizona Savings and send them to:

FDIC as Receiver for First Arizona Savings
P. O. Box 25968
Scottsdale, AZ 85255

35. 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 First Arizona Savings has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.

36. What will happen to my loan?

Each loan is currently being reviewed independently to determine the best action for that individual loan. 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

37. How can I claim the contents of my safe deposit box?

You have until November 22, 2010 to remove the contents of your safe deposit box.  Please call the FDIC at 1-800-830-4698 to schedule an appointment to close your safe deposit box.
Please be advised if you do not clear your safe deposit box before that date, the box will be drilled under dual control and the contents removed.  The contents will be dealt with according to the law of the state of Arizona.  You will receive a letter at the address listed on the bank’s record prior to your box being drilled.

If you prepaid your safe deposit box rental fees to First Arizona Savings, you may file a claim with the FDIC to recover the unused fees.   A letter explaining the claims process and the Proof of Claim form will be mailed to you.

38. How can I find out more about FDIC Insurance rules?

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

www.fdic.gov
Click on Deposit Insurance
Click on Are my deposits insured?
Click on Your Insured Deposits (for a comprehensive guide)
Click on EDIE (to calculate your insurance coverage)

You may also order any other FDIC publication:

3501 North Fairfax Drive
Room E-1002
Arlington, VA 22226

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

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

Please contact the Office of Public Affairs:

LaJuan Williams-Young
1-202-898-3876
lwilliams-young@fdic.gov

40. I am a shareholder in FASLA Holding Company. What happens to my shares?

First Arizona Savings had no publicly owned stock. Equity shareholders were invested in the holding company, FASLA Holding Company, Scottsdale, AZ, 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 at: 

FASLA Holding Company,
17015 N. Scottsdale Road
Scottsdale, AZ   85255
1-480-481-8500

41. I have done some work for First Arizona Savings and have not yet been paid. What should I do?

Please send your bills to the following address:

FDIC as Receiver for First Arizona Savings, a F.S.B.
1601 N. Bryan Street
Dallas, TX  75201-3430
Attention: Claims Agent

42.What happened? Why did the bank fail?

First Arizona Savings Scottsdale, AZ was closed Friday, October 22, 2010, by the Office of Thrift Supervision.  Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. Share price does not trigger a bank closing and was not the reason for this failure. According to regulatory policy, there is no advance notice given to the public. Please see the Office of Thrift Supervision’s Press Release for more information.

The good news is that no one lost any insured deposits as a result of the closure of First Arizona Savings.  An assuming bank could not be located; therefore, the FDIC will fulfill its obligation to insured depositors by mailing checks for their insured amount(s).  These checks should be received within one week of the closing.

43. How can I apply to work for FDIC as a contractor or employee?

You may access information about doing business with the FDIC by:
Visiting the FDIC Web Site at: www.fdic.gov
Select the Quick Link: Contractors/Vendors/Outside Counsel
Select: Procurement Opportunities

You must 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, you may review the information at the following link: www.fdic.gov/about/jobs/index.html.


Last Updated 08/20/2012 cservicefdicdal@fdic.gov