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Failed Bank Information

NextBank, N.A. Phoenix, AZ, Closing Information

  1. FDIC General Counsel's Statement on NextBank
  2. Introduction
  3. Press Release
  4. Time Deposits
  5. Banking Services
  6. Possible Claims Against the Failed Institution
  7. Priority of Claims
  8. Dividend Information
  9. Brokered Deposits
  10. Balance Sheet Summary
I.  FDIC General Counsel's Statement on NextBank - February 14, 2002

The FDIC, as receiver for NextBank, N.A., has advised the Bank of New York, as Trustee for the NextCard Credit Card Master Trust, that an automatic event, default, acceleration or early amortization based solely on insolvency or appointment of the FDIC as receiver is not enforceable against the FDIC. The FDIC has not indicated any question or doubt to the Trustee or otherwise regarding the validity or effect of any other trigger events for an early amortization of any NextBank Credit Card Trust obligations, including any other such trigger events based on collateral performance.

The FDIC reconfirms, under established FDIC policy as codified by express rule at 12 CFR 360.6, that it will not disaffirm or repudiate the completed transfer of financial assets by NextBank, N.A. in securitizations in accord with that FDIC rule.

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II.  Introduction

On February 7, 2002, NextBank, N.A. was closed by Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (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.  You may have Certificates of Deposit, a credit card, or other relationships with the institution. The FDIC has compiled the following information which should help answer many of your questions.

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III.  Press Release

The FDIC has issued a press release about the institution’s closure. If you represent a media outlet and would like information about the closure, please contact the FDIC Public Affairs Office at (202) 898-6993.

PR-83-2002 FDIC Sells Nextbank Owned Credit Card Portfolio (July 2, 2002)

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IV.  Time Deposits

All deposit account(s) at NextBank have been closed as of February 7, 2002.

Because the FDIC was unable to arrange a transfer of the deposits of NextBank to another financial institution, a check for the insured portion of your account(s) will be mailed to you at the last address shown on the books and records of the failed institution. A final statement will be sent to you with the check, along with a letter explaining the payment process.

NOTE: These accounts do not include deposits securing loans or the deposits of certain customers with liabilities to the institution.

You will be paid interest on your account(s) only through the date the institution was closed. Principal and interest on insured accounts, through February 7, 2002, are fully insured by the FDIC, up to the insurance limit of $100,000. If you have an/any account(s) over the insured amount, you will need to speak with an FDIC Claims Agent to review the status of your funds. Certain entitlements and different types of accounts may be insured for more than the $100,000 limit.

If you have funds in an account known as payable on death (POD) account, revocable trust or in trust for (ITF) account, one of the forms listed below is required:
Declaration for Testamentary Deposit (Single Grantor)-Word 44k (Word Help)
Declaration for Testamentary Deposit (Multiple Grantors)-Word 63k (Word Help)

If you have a written trust document that supports one of your deposit accounts, your will need to complete the form listed below:
Declaration for Trust-Word 69k (Word Help)

All accounts that exceed the $100,000 insurance limit, and/or all accounts that appear to be related and exceed this limit, are reviewed by the FDIC to determine their ownership and insurance coverage. If it appears that you have potentially uninsured funds, an FDIC Claims Agent will contact you, by either telephone or mail, regarding your account(s). After February 7, 2002, you may reach a Claims Agent by calling 1-877-367-2719.

If it is determined that you do 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 NextBank. This means that you may eventually recover some of your uninsured funds.

For additional information on deposit insurance visit EDIE the FDIC's Electronic Deposit Insurance Estimator.

EDIE - FDIC's Electronic Deposit Insurance Estimator

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V.  Banking Services

Funds can no longer be wired to you at NextBank. Additionally, funds cannot be wired to you at the FDIC because it is not a bank and does not have wiring capability.

All your deposit account histories and records have been sent to the FDIC. You may contact a representative of the FDIC’s Customer Service Department to obtain a copy of any records you need. The toll free number is 1-877-367-2719 or e-mail: cservicefdicdal@fdic.gov

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VI.  Possible Claims Against the Failed Institution

Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. Shortly after the failure, the FDIC sends notices directly to all known service providers to explain the claim filing process.

Please note: there are time limits for filing a claim, as specified in the notice.

If you provided a service for NextBank and have not received a notice, please contact:

Federal Deposit Insurance Corporation
Receiver: NextBank
Attention: Claims Department, DRR
1601 Bryan Street
Dallas, Texas  75201

Call toll free 1-800-568-9161

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VII.  Priority of Claims

In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:

  1. Depositors
  2. General Unsecured Creditors
  3. Subordinated Debt
  4. Stockholders

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VIII.  Dividend Information
Dividend History on NextBank

Dividend Information on Failed Financial Institutions
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IX.  Brokered Deposits

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.

Deposit Broker Processing Guide

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Last Updated 08/27/2010 Customer Service