On January 30, 2009, MagnetBank, Salt Lake City, UT was closed
by the Utah Department of Financial Institutions and the FDIC was named
Receiver. No advance notice is given to the
public when a financial institution is closed.
The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking
account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct
deposit, and other relationships with the institution. The FDIC has compiled the following information which should
answer many of your questions.
The FDIC has issued a press release (PR-012-2009) about
the institution's closure. If you represent a media outlet and would
like information about the closure, please contact David
Barr at 202-898-6992 or
Andrew Gray at 202-898-7192.
This link will allow you to verify the insurance status of each of your accounts. This link will be available
for use no later than the first business day after bank failure.
Simply enter your account number in the search screen. If you receive the message that "your account
is fully insured" a link will appear that provides you with additional information. If you receive the message that you should contact the FDIC, then a link will appear that provides
you contact information.
An assuming institution could not be located; therefore, the FDIC will fulfill its obligation to insured depositors by mailing checks for their insured amounts.
Principal and interest on insured accounts, through January 30, 2009,
are fully insured by the FDIC, up to the insurance limit of $250,000. You
will receive full payment for your insured account. Certain entitlements
and different types of accounts can be insured for more than the $250,000
limit. IRA funds are insured separately from other types of accounts,
up to a $250,000 limit.
All interest bearing accounts that exceed the $250,000 insurance limit,
and/or all interest bearing accounts that appear to be related and exceed
this limit, are reviewed
by
the FDIC
to determine their ownership and insurance coverage. If you think
you might have uninsured deposits you should call the FDIC Call Center to
arrange for a telephone interview with a Claims Agent at 1-800-822-0412.
The Claim Agent may direct you to download and submit a particular
form that will assist in expediting the processing of your claim.
FDIC Call Center
Toll free number 1-800-822-0412
Hours of Operation – Mountain
Standard Time
Friday,
January 30, 2009:
1:00 p.m.
- 9:00
p.m.
Saturday, January
31, 2009:
9:00 a.m. - 6:00 a.m.
Sunday,
February
1, 2009:
Noon - 6:00 p.m.
Thereafter:
8:00 a.m. - 8:00 p.m.
If it is determined that you have uninsured funds, the FDIC will generate
and mail to you a Receiver Certificate. This certificate entitles
you to share proportionately in any funds recovered through the disposal
of the assets of MagnetBank. This means that
you may eventually recover some of your uninsured funds.
Your CD(s) will automatically be closed,
and you will receive a check up to the insured amount from the FDIC. You
will not be assessed an early withdrawal penalty. A
hold may be in place on deposits accounts due to delinquent loans where the
depositor is the borrower or guarantor. Additionally, any account pledged
as collateral for a loan will be held.
On January 30, 2009, all accounts have been closed and you will receive
a check up to your insured amount and a final statement from the FDIC. You
will no longer have access to the website and online services.
If you had a loan with MagnetBank, you should continue to make your
payments as usual. The terms of your loan will not change under the terms of
the loan contract, because they are contractually agreed to in your promissory
note with the failed institution. Checks should be made payable as usual and
sent to the same address until further notice. If you have further questions
regarding an existing loan, please contact your loan officer.
If you or your company provided a service or product, leased space, furniture, or equipment to
MagnetBank after Friday January 30, 2009 and have not been paid you do not have a claim against
MagnetBank. Please follow your normal billing procedures by providing an invoice as instructed.
Claims against failed financial institutions occur when bills sent to the
institution remain unpaid at the time of failure. If you or your company provided
a service or product, leased space, furniture, or equipment to MagnetBank
prior to Friday January 30, 2009 and have not been paid you may be
entitled to a claim against the bank. If you provided a product to or a service for
MagnetBank prior to the bank's failure for which you have not been
paid and you have not received communication,
contact:
Federal Deposit Insurance Corporation Receiver:
MagnetBank
1601 Bryan Street
Dallas, TX 75201
Please note: There are time limits for filing a claim,
your claim must be filed on or before 05/06/2009.
The FDIC offers a 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 deposited in a failed FDIC Insured Institution.
