Question and Answer Guide
Bank of Lincolnwood, Lincolnwood, IL
FDIC Call Center
Toll free number 1-800-591-2767
Hours of Operation – Central Time
Friday, June 5, 2009: Until 9:00 p.m.
Saturday, June 6, 2009: 9:00 a.m. – 6:00 p.m.
Sunday, June 7, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.
The following answers are provided to the most commonly asked questions by customers of the failed bank. The total balance in your account(s) has been transferred to Republic Bank of Chicago, Oak Brook, IL and will be available for transactions during regular business hours at the former Bank of Lincolnwood.
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.
On June 5, 2009, Bank of Lincolnwood 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, Republic Bank of Chicago acquired most of the assets and liabilities of Bank of Lincolnwood from the FDIC as Receiver for Bank of Lincolnwood. Any claims by equity holders were not acquired.
Account(s): What about my account with Bank of Lincolnwood?
If you had an account with Bank of Lincolnwood, you now have an account with Republic Bank of Chicago. All deposit accounts, which include Checking, Savings, Money Market, CDs and Retirement accounts have been transferred to Republic Bank of Chicago, Oak Brook, IL, regardless of the dollar amount. No one lost any money on deposit in Bank of Lincolnwood.
Customers of both banks should continue to use their existing branches until Republic Bank of Chicago can fully integrate the deposit records of Bank of Lincolnwood.
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 Bank of Lincolnwood?
Your ATM/debit card will continue to work, and bill paying will continue to work as it has in the past. Over the weekend, the website will be available in a read-only mode. Online transactional service is expected to resume on Monday morning.
Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?
Republic Bank of Chicago will be reviewing rates and will 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.
Direct Deposits - Government Deposits: What will happen to my direct deposits?
Direct Deposits will continue as normal, including Social Security checks.
Existing Deposits at Republic Bank of Chicago: 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 Republic Bank of Chicago 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.
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 Republic Bank of Chicago.
Be advised, however, that from and after the date of closing, Republic Bank of Chicago will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, Republic Bank of Chicago shall permit depositors, including brokered depositors, impacted by reduced rates to withdraw their deposits without penalty for early withdrawal.
Loans/mortgages: What about my loan or mortgage with Bank of Lincolnwood?
Most mortgages and loans have been assumed by Republic Bank of Chicago. 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 Bank of Lincolnwood 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 Bank of Lincolnwood?
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, notes or subordinated notes that I own in Lincolnwood Bancorp, Inc.?
There was no publicly owned stock in Bank of Lincolnwood. If you are an equity shareholder, your shares are in Lincolnwood Bancorp, Inc., Lincolnwood, Illinois, the holding company for Bank of Lincolnwood, and not the institution. Lincolnwood Bancorp, Inc. and the interests of equity, debt holders or other creditors of Lincolnwood Bancorp, Inc. are not included in the closure or receivership of the institution. Please do not file a claim with the Receiver, rather contact Lincolnwood Bancorp, Inc. directly for information:
Lincolnwood Bancorp, Inc.
4433 West Touhy Ave, Suite 310
Lincolnwood, Illinois 60712
Any claims by equity holders were not acquired.
All claims against Bank of Lincolnwood, together with proof of the claims, must be submitted in writing to the Receiver at the following address:
FDIC as Receiver of Bank of Lincolnwood
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.
For more information: www.fdic.gov/bank/individual/failed/lincolnwood.html