Question and Answer Guide
Security Pacific Bank, Los Angeles, CA
FDIC Call Center
Toll free number 1-866-934-8944
Hours of Operation - Pacific Time
Friday, November 7, 2008: 5:00 p.m. – 9:00 p.m.
Saturday, November 8, 2008: 9:00 a.m. – 5:00 p.m.
Sunday, November 9, 2008: 12:00 p.m. – 5:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.
Electronic Deposit Insurance Estimator (www.fdic.gov/edie)
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 Pacific Western Bank, Los Angeles, CA and will be available for transactions during regular business hours at the former Security Pacific Bank branches.
- Over $250,000: What if I have more than $250,000 in my accounts at Security Pacific Bank?
- Account Hold: I have been advised there is a hold on my account. What does that mean?
- ATM/Debit Card/Checks: Can I continue to write checks or use my ATM/Debit card?
- Automatic Payments/Online Billpay: Will my automatic payments through Billpay continue?
- Brokered Deposits/Deposit Broker: I am a deposit broker or I have brokered deposits. What do I need to do?
- Checks not Honored: A merchant will not honor my check. What can I do?
- Claim Account(s): How do I claim my account(s)?
- Customer Impact: How does this failure affect me?
- Deposits Existing at Pacific Western Bank: 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?
- Direct Deposits, Social Security: What will happen to my direct deposits?
- Early Withdrawal Penalty: Will I incur an early withdrawal penalty if I close my CD before maturity?
- Final Statement: How will I get my final account statement(s) from Security Pacific Bank?
- Interest: Will I continue to earn interest at the same rate?
- Interest Check/Cashier's Checks: Can I cash my interest check or cashier's check?
- Internet Connection: Will my Internet connection to Security Pacific Bank continue to work?
- IRAs: What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?
- Lose Any Money?: Will I lose anything on my deposit account?
- Outstanding Checks: What will happen to the checks which have not cleared my account?
- Records/Account Histories: What if I need information regarding my account during the time Security Pacific Bank was in business?
- Tax Reporting - 1098/1099s: Who will send my 1098 and/or 1099 information after the end of the year?
- Uninsured: Will I collect my uninsured deposits?
- Wire Transfer: Can funds be wired to me?
- Automatic Payments: Will my automatic transaction payment still occur on its assigned date?
- Construction Loan Draws: Will construction draws continue? Will my project be completed?
- Construction Loan Voucher Control: Will my subcontractors be paid as before?
- Escrows: Will you continue to pay my escrows?
- Fees: Are there any changes to fees or charges due to this event?
- Lender and Contact Names: Who is my lender and has my loan contact changed?
- Loan Sales: Will my loan be sold?
- Line of Credit: Can I continue to make advances on my personal and/or commercial line of credit?
- Loan in Process: I have a loan currently in process. How is my loan impacted?
- Loan Sweeps: Will my loan sweep be discontinued?
- Overdraft Line of Credit: Will my overdraft line of credit continue to cover my overdrafts?
- Payments: How and where do I make my payments? Can I still pay by phone or at the branch?
- Pre-payment Penalty: If I refinance with another lender, will my pre-payment penalty be waived?
- SBA Application in Process: What will happen to my SBA loan application in process?
- What Happens Now: What will happen to my loan?
- All-Deposit Transfer versus Insured Deposit Transfer: Why do all deposits, insured and uninsured, pass in some transactions but not in others?
- FDIC Insurance: How can I find out more about Federal Deposit Insurance rules?
- Media: I represent a TV/Newspaper/Radio and would like some information.
- New Bank Insured: Is the new bank insured by the FDIC?
- Safe Deposit Boxes: How can I claim the contents of my safe deposit box?
- Unpaid Bill: I did some work for Security Pacific Bank and have not yet been paid. What should I do?
- What Happened?: What happened, why did the bank fail?
All deposit accounts have been transferred in their entirety to Pacific Western Bank, based in Los Angeles, CA. All former Security Pacific Bank offices will reopen for normal business hours on Monday, November 10, 2008, as branches of Pacific Western Bank.
As an All-Deposit Transfer transaction, the total of all deposit accounts, whether within FDIC insurance limits or not, have been assumed by Pacific Western Bank and will be available for business as usual.
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.
You will be able to continue using your personal checks at this time, and your ATM/Debit card will continue to work. The ATM machine will be unavailable for a short period of time on Friday for processing; however, it will be operational shortly after that is accomplished and will be available as usual.
Yes, there will be no disruption in Billpay services.
No action is needed; all deposits, including brokered deposits were transferred to Pacific Western Bank.
You can provide a copy of this document or the press release (www.fdic.gov/news/news/press/2008/pr08114.html) since both documents state all deposits have been transferred to Pacific Western Bank, and it is business as usual. Copies of this press release will be available at the former Security Pacific Bank branches. Depositors or merchants can also call the FDIC at 1-866-934-8944 or the former Security Pacific Bank branches that will be staffed with former Security Pacific Bank employees and representatives of Pacific Western Bank.
Your account(s) has already been transferred to Pacific Western Bank, and your account(s) will be handled as usual. Any withdrawal, renewal or additional deposits will “claim” your account. Please be advised that if there is no activity in your account in the next 18 months, that money will be turned over to your state as unclaimed property. Unclaimed property can be located by visiting www.missingmoney.com or contacting your state treasurer’s office or office of unclaimed property.
All deposits (both insured and uninsured) of Security Pacific Bank have been transferred to Pacific Western Bank, and it will be business as usual. If you held an account at Security Pacific Bank, you now have an account at Pacific Western Bank that is available to you at your former Security Pacific Bank branches during regular business hours.
If you had a loan with Security Pacific Bank, 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 Security Pacific Bank.
The former Security Pacific Bank locations will reopen for normal business hours on Monday, November 10, 2008. You will have continued access to your money through your ATM/debit card and by writing checks.
Can Security Pacific Bank customers use Pacific Western Bank branches?
No; not at this time. During the transition of Security Pacific Bank records to Pacific Western Bank systems, Security Pacific Bank customers should continue to conduct their banking business at former Security Pacific Bank branches. You will be notified when you can use Pacific Western Bank branches.
Similarly, existing Pacific Western Bank customers cannot use former Security Pacific Bank branches and should continue to conduct their business at Pacific Western Bank branches.
9. 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 transferred accounts will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure his or her accounts, if necessary.
CDs from the assumed 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.
Direct Deposits will continue as normal, including Social Security checks. If you need to change anything in the future, please contact or visit your former Security Pacific Bank branch location to make those arrangements.
No. 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.
You will receive your account statements at the same time you have received them in the past.
All interest on insured deposits accrued through Friday, November 7, 2008, will be paid at your same rate. Pacific Western Bank will be reviewing rates and will provide further information soon.
If you deposited funds through a broker, the interest will accrue and be paid through Friday, November 7, 2008.
Interest checks and cashier's checks will continue to clear.
Yes, all deposits, including IRAs have been transferred in their entirety to Pacific Western Bank. IRA funds are insured separately from other types of accounts up to $250,000.
If you close your IRA before maturity, 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. IRS Publication 590 may be obtained by contacting your local IRS office or via the Internet at www.irs.gov.
No. All accounts have been transferred in their entirety to Pacific Western Bank and will be available starting on Monday, November 10, 2008.
Checks drawn on Security Pacific Bank that did not clear before Friday, November 7, 2008, will be honored up to your available balance.
19. What if I need information regarding my account during the time Security Pacific Bank was in business?
Please contact a representative of your new bank at your former Security Pacific Bank branch location to obtain a copy of any records you may need or visit your branch.
Pacific Western Bank 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.
All deposits have been transferred in their entirety to Pacific Western Bank; therefore, there are no uninsured deposits.
Please contact your former Security Pacific Bank branch location to obtain information regarding your wire request.
You should experience no disruption in this service. We encourage you to check your bank account the day after your scheduled draft to verify the transaction. If the transaction did not occur, please notify your loan officer and we will research your loan.
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.
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.
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.
No. The current fee structure will remain the same.
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.
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.
No. All lines of credit have been suspended at this time. You may contact Pacific Western Bank to discuss establishing a borrowing relationship.
Please contact your loan officer directly.
This will be determined on a case-by-case basis. Please contact your loan officer.
Yes. These lines have been transferred to Pacific Western Bank. Please contact your new bank if you have additional questions regarding your accounts.
You should continue to make your payments as agreed. Make checks payable to Security Pacific Bank and utilize the same payment address information.
You may continue to make your payments at the branch or by phone via check or credit card.
Those will be determined on a case-by-case basis.
The FDIC as Receiver for Security Pacific Bank 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.
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.
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 is only able to transfer all deposits if the uninsured amounts are covered by the premium. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.
You may access our website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator (EDIE):
- Deposit Insurance (www.fdic.gov/deposit/index.html)
- Are my deposits insured? (www.fdic.gov/deposit/deposits/index.html)
- EDIE (www.fdic.gov/edie)
You may also order Your Insured Deposits or any other FDIC publication:
FDIC Public Information Center
3501 North Fairfax Drive
Arlington, VA 22226
Please contact the Office of Public Affairs:
Yes. Your deposit at Pacific Western Bank is insured by the FDIC, and each depositor is insured to at least $250,000, as established by law. All non-interest-bearing transaction deposit accounts at an FDIC-insured institution, including all personal and business checking deposit accounts that do not earn interest, are fully insured for the entire amount in the deposit account. This unlimited insurance coverage is temporary and will remain in effect for participating institutions until December 31, 2009.
It is business as usual. You may go to your branch and access your safe deposit box or make appointments by calling your former Security Pacific Bank branch location.
Please send your bills to the following address:
FDIC as Receiver for Security Pacific Bank
1601 Bryan Street
Dallas, TX 75201
Security Pacific Bank, Los Angeles, CA was closed Friday, November 7, 2008, by the California Department of Financial Institutions. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. According to regulatory policy, there is no advance notice given to the public. Please see the California Department of Financial Institutions press release for more information.
The good news is that no one lost any deposits as a result of the closure of Security Pacific Bank. To protect depositors, the FDIC Board of Directors approved the assumption of ALL of Security Pacific Bank’s deposits by Pacific Western Bank, headquartered in Los Angeles, CA.
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/securitypacific.html