Question and Answer Guide
First Bank of Beverly Hills, Calabasas, CA
FDIC Call Center
Toll free number 1-800-523-8089
Hours of Operation – All Hours are Pacific Time
Friday, April 24, 2009: Until 9:00 p.m.
Saturday, April 25, 2009: 9:00 a.m. – 6:00 p.m.
Sunday, April 26, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.
Is My Account Fully Insured? (closedbanks.fdic.gov/drrip/AFI/Search/)
En Español (closedbanks.fdic.gov/drrip/AFI/Search/)Electronic Deposit Insurance Estimator (edie.fdic.gov)
First Bank of Beverly Hills, Calabasas, CA was closed April 24, 2009, by the California Department of Financial Institutions. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. Please see the California Department of Financial Institutions press release for more information. According to regulatory policy, there is no advance notice given to the public.
The good news is that no one lost any insured deposits as a result of the closure of First Bank of Beverly Hills. 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) on Monday, April 27, 2009. These checks will be drawn on the Federal Home loan Bank of New York and will be sent to your mailing address on record with First Bank of Beverly Hills.
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 noninterest-bearing transaction account(s), no action is required on your part at this time. The FDIC will mail you a check on Monday, April 27, 2009, for your insured deposit to your mailing address on record with First Bank of Beverly Hills. You should receive this check within one week of the closing. The checks are drawn on Federal Home Loan Bank of New York.
DEPOSIT QUESTIONS
Over $250,000: What if I have more than $250,000 in my accounts at First Bank of Beverly Hills?
You should call the FDIC to schedule a telephone appointment with an FDIC Claims Agent at 1-800-523-8089.
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.
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 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, 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:
Deposit Claims (www.fdic.gov/regulations/laws/forms/#DepositClaims).
If you have a question regarding the completion of required affidavits or declarations, please call 1-800-523-8089 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 1-800-523-8089 to schedule a telephone appointment.
Account Insurance Status: Is there a method to verify whether my account(s) at First Bank of Beverly Hills are fully insured?
A tool, Is My Account Fully Insured? (closedbanks.fdic.gov/drrip/AFI/Search/), 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 1-877-367-2719 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. The FDIC will mail you a check on Monday, April 27, 2009.
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?
Brokered deposits will be held by the FDIC, and those insured deposits will be paid off when the insurance determination is complete. The FDIC offers an online 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 institution. Please read the following Deposit Broker Processing Guide completely before contacting the FDIC with questions:
Deposit Broker Processing Guide (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 1-800-523-8089 and indicate you have a form completion question.
If you are a customer who has a First Bank of Beverly Hills 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 (www.fdic.gov/bank/individual/failed/beverlyhills_return_checks_letter.html) 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)?
You will receive a check 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.
Customer Impact: How does this failure affect me?
All accounts have been closed, and you will receive a check from the FDIC within one week of the closing.
If you had a loan with First Bank of Beverly Hills, 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 Bank of Beverly Hills.
Direct Deposits, Social Security: What will happen to my direct deposits?
The FDIC has arranged for all government direct deposits, including Social Security checks, to be redirected to Wells Fargo Bank. These will be processed at the same time they have been processed in the past. You may contact them at 1-818-222-5091.
Wells Fargo Bank
23701 Calabasas Road
Calabasas, CA 91302
Early withdrawal penalty: Will I incur an early withdrawal penalty if I close my CD before maturity?
Your CD will automatically be closed, and you will receive a check from the FDIC within one week of the closing. You will NOT be assessed an early withdrawal penalty.
Final Statement: How will I get my final account statement(s) from First Bank of Beverly Hills?
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 April 24, 2009, will be paid at your same rate. This will be included in the check you will receive from the FDIC within one week of the closing.
Interest Checks/Cashier's Checks: Can I cash my interest check or cashier's check?
No, these checks will not clear. However, official checks (those issued by institutions – for example, cashiers' checks, certified checks, money orders) meet the definition of noninterest-bearing transaction accounts. Under the Temporary Liquidity Guarantee Program, noninterest-bearing transaction accounts are fully insured. Holders of these checks should contact the FDIC at the following address or by telephone to have these checks replaced:
1601 Bryan Street
Dallas, TX 75201
(972) 761-2112
Outstanding checks will be added back to any of your account balances, and you will receive payment from the FDIC.
Internet Connection: Why doesn't my Internet connection to First Bank of Beverly Hills work?
All accounts have been closed, and you will no longer have access to the website.
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 to your address on record with the bank on Monday, April 27, 2009.
Lose Any Money: Will I lose anything on my deposit account?
Principal and interest on insured accounts, through April 24, 2009, are protected by the FDIC, to at least $250,000. All transferred accounts are insured 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 Claims 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 First Bank of Beverly Hills that did not clear before the institution closed will be returned indicating "Bank Closed." This document is a letter (www.fdic.gov/bank/individual/failed/beverlyhills_return_checks_letter.html) 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 First Bank of Beverly Hills was in business?
Please contact the FDIC at 1-800-523-8089 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 Claims 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 First Bank of Beverly Hills. 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 (https://closedbanks.fdic.gov/dividends/).
Of course, you will receive immediate full payment for your insured amount by check directly from the FDIC.
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 automatic 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 you should direct your questions to your loan officer. These will be determined on a case-by-case basis.
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: 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.
Fees: Are there any changes to fees or charges due to this event?
No. The current fee structure will remain the same.
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 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.
Line of Credit Advances – Home Equity: Can I continue to perform advances on my personal line of credit?
No. All 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 and where do I make my payments?
You should continue to make your payments as agreed. Make checks payable to First Bank of Beverly Hills 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 First Bank of Beverly Hills has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.
SBA Application in Process: What will happen to my SBA loan application in process?
The FDIC as Receiver for First Bank of Beverly Hills will not be originating any new loans.
If your loan has been approved by the SBA, but is not yet funded, please contact your loan officer. He will direct you to the proper SBA contact to help you locate another approved lender.
If your loan is in process, but is not yet approved by the SBA, we will release your SBA package on file with us to you, and you will need to apply with another SBA-approved lender. Please contact your loan officer to make arrangements to retrieve your application from the bank.
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. 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.
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): 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 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:
Shareholders: I am a shareholder. What happens to my shares?
The First Bank of Beverly Hills had no publicly owned stock. Equity shareholders were invested in the holding company, Beverly Hills Bankcorp Inc., Calabasas, CA, 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:
Beverly Hills Bankcorp Inc.
23901 Calabasas Road
Suite 1050
Calabasas, CA 91302
1-818-223-8084
Unpaid Bill: I did some work for First Bank of Beverly Hills and have not yet been paid. What should I do?
Please send your bills to the following address:
FDIC as Receiver for First Bank of Beverly Hills
1601 N. Bryan Street
Dallas, TX 75201-3430
Attention: Claims Agent
SCAMS:
Be watchful for and resistant to any scams to obtain information from you by individuals
or entities stating that they are acting on behalf of either the failed bank, new bank, or the
FDIC. Should you be contacted by anyone requesting personal information from you related to this
event, please contact the call center above and you will be directed to the appropriate person.
For more information: www.fdic.gov/bank/individual/failed/beverlyhills.html