Question and Answer Guide
Founders Bank, Worth, IL
FDIC Call Center
Toll free number 1-800-523-8177
Hours of Operation – Eastern Time
Thursday, July 2, 2009: Until 9:00 p.m.
Friday, July 3, 2009: 9:00 a.m. – 6:00 p.m.
Saturday, July 4, 2009: 9:00 a.m. – 6:00 p.m.
Sunday, July 5, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.
On Thursday, July 2, 2009, Founders Bank, Worth, IL, was closed by the Illinois Department of Financial and Professional Regulation, Division of Banking. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, The PrivateBank and Trust Company acquired all the deposits and assets of Founders Bank from the FDIC as Receiver for Founders Bank. Any claims by equity holders were not acquired.
The total balance in your account(s) has been transferred to The PrivateBank and Trust Company, Chicago, IL and will be available for transactions during regular business hours at the former Founders Bank branches starting on Monday, July 6, 2009.
NOTE: In observance of the holiday, the bank will be closed from Friday, July 3rd, through Sunday, July 5th. The bank will reopen on Monday, July 6th, 2009.
You may continue to use your same checks, ATM cards and debit cards until notified.
All Direct Deposits, including Social Security checks, will continue as usual.
Account(s): What about my account with Founders Bank?
If you had an account with Founders Bank, you now have an account with The PrivateBank and Trust Company. All deposit accounts, which include Checking, Savings, Money Market, CDs and Retirement accounts have been transferred to The PrivateBank and Trust Company, Chicago, IL, regardless of the dollar amount. No one lost any money on deposit in Founders Bank.
Customers of both banks should continue to use their existing branches until The PrivateBank and Trust Company can fully integrate the deposit records of Founders Bank.
Please be advised you will not receive any email notification to claim/unlock/unsuspend your account or to provide any private information. Please be aware of any scams to obtain information from you.
ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with Founders Bank?
Your ATM/debit card will continue to work, and bill paying will work as it has in the past.
Brokered Deposits: I am a deposit broker or have brokered deposits. What do I do?
As an All-Deposit Transfer transaction, the total of all deposit accounts, including brokered deposits, have been assumed by The PrivateBank and Trust Company.
Be advised, however, that from and after the date of closing, The PrivateBank and Trust Company will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, The PrivateBank and Trust Company shall permit depositors, including brokered depositors, impacted by reduced rates to withdraw their deposits without penalty for early withdrawal.
Direct Deposits - Government Deposits: What will happen to my direct deposits?
Direct Deposits will continue as normal, including Social Security checks.
Existing Deposits at The PrivateBank and Trust Company: I already have other deposit accounts with the new bank. When combined with balances at this bank, my deposits exceed $250,000. Are all funds insured?
The accounts transferred to The PrivateBank and Trust Company will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure the accounts, if necessary.
CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.
CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.
If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.
Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?
The PrivateBank and Trust Company will review rates and notify you.
You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from, your account.
Loans/mortgages: What about my loan or mortgage with Founders Bank?
All mortgages and loans have been assumed by The PrivateBank and Trust Company. Your payment amount and due date are the same. If you are having your payment deducted from your account, it will continue as it has in the past. You should continue to make your checks payable to Founders Bank and send your payments to the same address.
Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?
You should contact your loan officer. All prior contacts remain the same.
Media: I represent a TV/Newspaper/Radio and would like some information.
Please contact the Office of Public Affairs:
Outstanding Checks: What about checks that I have written on my account with Founders Bank?
Your checks will clear up to the available balance in your account. You can continue to use your existing checks.
Safe Deposit Boxes: How can I claim the contents of my safe deposit box?
It is business as usual. You can go to your local branch and access your safe deposit box; however, no action on your part is required because of this transaction.
Shareholders: What about my shares of stock?
There was no publicly owned stock in Founders Bank. If you are an equity shareholder, your shares are in Founders Group, Inc., Worth, IL, the holding company for Founders Bank, and not the institution. Founders Group, Inc. and the interests of equity, debt holders or other creditors of Founders Group, Inc. are not included in the closure or receivership of the institution. Please do not file a claim with the Receiver, rather contact Founders Group, Inc. directly for information:
Founders Group, Inc.
6825 111th St.
Worth, IL 60482
Any claims by equity holders were not acquired.
All claims against Founders Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address:
FDIC as Receiver for Founders Bank
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent
Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?
The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.
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/founders.html