Question and Answer Guide
Bank of Bonifay, Bonifay, FL
FDIC Call Center
Toll free number 1-800-517-8236
Hours of Operation – Eastern Time
Friday, May 7, 2010: Until 9:00 p.m.
Saturday, May 8, 2010: 9:00 a.m. – 6:00 p.m.
Sunday, May 9, 2010: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.
Electronic Deposit Insurance Estimator: edie.fdic.gov
The Bank of Bonifay, Bonifay, FL was closed May 7, 2010, by the Florida Office of Financial Regulation. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. Share price does not trigger a bank closing and was not the reason for this failure. According to regulatory policy, there is no advance notice given to the public.
No one lost any deposits as a result of the closure of The Bank of Bonifay. To protect depositors, the FDIC Board of Directors approved the assumption of all of The Bank of Bonifay’s deposits by First Federal Bank of Florida, headquartered in Lake City, FL.
The total balance in your account(s) has been transferred to First Federal Bank of Florida and will be available for transactions during regular business hours at the former The Bank of Bonifay branches.
You may continue to use your same checks, ATM/Debit cards until notified.
All direct deposits, including social security checks, will continue as usual.
DEPOSIT QUESTIONS
1. Over $250,000 What if I had more than $250,000 in my accounts at The Bank of Bonifay?
2. Account Hold I have been advised there is a hold on my account. What does that mean?
3. ATM/Debit Card/Checks Can I continue to write checks or use my ATM/Debit card?
4. Automatic Payments/Online Billpay Will my automatic Billpay payments continue?
5. Brokered Deposits/Deposit Broker I am a deposit broker or I have brokered deposits.
6. Checks not honored A merchant will not honor my check. What can I do?
7. Claim Account(s) How do I claim my account(s)?
8. Customer Impact How does this action affect me?
9. Deposits Existing at Assuming 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?
10. Direct Deposits, Social Security What will happen to my direct deposits?
11. Early withdrawal penalty Will I incur an early withdrawal penalty if I close my CD before maturity?
12. Final Statement How will I get my final statement(s) from The Bank of Bonifay?
13. Interest Will I continue to earn interest at the same rate?
14. Interest Checks/Cashier's Checks Can I cash my interest check or cashier's check?
15. Internet Connection Why doesn’t my internet connection work?
16. IRAs What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?
17. Lose Any Money? Will I lose anything on my deposit account?
18. Outstanding Checks What will happen to the checks which have not cleared my account?
19. Records/Account Histories What if I need information regarding my account during the time The Bank of Bonifay was in business?
20. Tax Reporting - 1098/1099s Who will send my 1098 and/or 1099 information for 2009?
21. Uninsured Will I collect my uninsured deposits?
22. Wire Transfer Can funds be wired to me?
LOAN QUESTIONS
23. Automatic Payments Will my ACH transaction payment still occur on its assigned date?
24. Construction Loan Draws Will draws continue and will my project be completed?
25. Construction Loan Voucher Control Will my subcontractors be paid as before?
26. Escrows Will you continue to pay my escrows?
27. Fees Are there any changes to fees or charges due to this event?
28. Foreclosures Will the FDIC continue foreclosures in process?
29. Lender and contact names Who is my lender and has my loan contact changed?
30. Loan Sales Will my loan be sold?
31. Line of Credit Advances Home Equity Can I continue to obtain advances on my line of credit?
32. Loan in Process I have a loan currently in process. How is my loan impacted?
33. Loan Sweeps Will my loan sweep be discontinued?
34. Overdraft Line of Credit Will my overdraft line of credit continue to cover my overdrafts?
35. Payments How/where do I make my payments?
36. Pre-payment Penalty If I refinance, will my pre-payment penalty be waived?
37. SBA Application in Process What will happen to my SBA loan application in process?
38. What Happens Now What will happen to my loan?
39. Offers to purchase other real estate What happens to my offer to purchase real property?
GENERAL QUESTIONS
40. All-Deposit Transfer versus Insured Deposit Transfer. Why do all deposits, insured and uninsured, pass in some transactions but not in others?
41. FDIC Insurance Where can I find out more information about FDIC Insurance rules?
42. Media I represent a TV/Newspaper/Radio and would like some information.
43. New Bank Insured? Is the new bank insured by the FDIC?
44. Safe Deposit Boxes How can I claim the contents of my safe deposit box?
45. Shareholders I am a Shareholder. What happens to my shares?
46. Unpaid Bill I did some work for The Bank of Bonifay and have not yet been paid.
DEPOSIT QUESTIONS
1. What if I have more than $250,000 in my accounts at The Bank of Bonifay?
All deposit accounts have been transferred in their entirety to First Federal Bank of Florida. All former The Bank of Bonifay offices will reopen for normal business hours as branches of First Federal Bank of Florida.
As an All-Deposit Transfer transaction, the total of all deposit accounts, whether within FDIC insurance limits or not, have been assumed by First Federal Bank of Florida and will be available for business as usual.
2. 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.
3. Can I continue to write checks or use my ATM/Debit card?
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.
4. Will my automatic payments through Billpay continue?
Billpay will be unavailable over the weekend; however, it will be available on Monday morning.
5. I am a deposit broker or I have brokered deposits. What do I need to do?
As an All-Deposit Transfer transaction, the total
of all deposit accounts, including broker deposits, have been assumed
by First
Federal Bank of Florida.
Be advised, however, that from and after the date of closing, First
Federal Bank of Florida, will accrue and pay interest
on deposit liabilities at a rate it shall determine;
accordingly, First
Federal Bank of Florida, shall permit depositors,
including brokered depositors, impacted by reduced rates to withdraw their
deposits without penalty for early withdrawal.
If you are a customer who has a The Bank of Bonifay deposit through a broker, you must contact your broker with any questions.
6. A merchant will not honor my check. What can I do?
A copy of this document or the press release from www.fdic.gov can be provided as both documents state all deposits have been transferred to First Federal Bank of Florida, and it is business as usual. Copies of this press release will be available at the former The Bank of Bonifay branches. Depositors or merchants can also call the FDIC at 1-800-517-8236 or the former The Bank of Bonifay branches.
7. How do I claim my account(s)?
Your account(s) has already been transferred to First Federal Bank of Florida, 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 in accordance with state law. Unclaimed property can be located by visiting www.missingmoney.com or contacting your state treasurer’s office or office of unclaimed property.
8. How does this failure affect me?
All deposits (both insured and uninsured) of The Bank of Bonifay have
been transferred to First Federal Bank of
Florida and it will be business as usual.
If you held an account at The Bank of Bonifay, you now have an account
at First Federal Bank of Florida that is available to you at your former The Bank of
Bonifay branches during regular business hours.
Please note: Customers of both banks should continue to use their respective
existing branches until First Federal Bank
of Florida can fully integrate the deposit
records of The Bank of Bonifay. You will be notified in advance of this
conversion.
The former The Bank of Bonifay locations will reopen for normal business
hours on Monday, May 10, 2010.
You will have continued access to your money
through your ATM/Debit card and by writing checks.
If you had a loan with the bank, continue to make your checks payable to The Bank of Bonifay and mail to the same address you have used in the past until you are instructed otherwise.
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 deposits 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.
10. What will happen to my direct deposits?
Direct Deposits, including Social Security checks, will continue as normal. If you need to change anything in the future, please contact or visit your former The Bank of Bonifay branch location to make those arrangements.
11. Will I incur an early withdrawal penalty if I close my CD before maturity?
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.
12. When will I get my final account statement(s) from The Bank of Bonifay?
You will receive your account statements at the same time you have received them in the past.
13. Will I continue to earn interest at the same rate?
All interest on insured deposits accrued through May 7, 2010, will be paid at your same rate. First Federal Bank of Florida will review rates and notify you if interest rates will change. Your interest rate may be reduced.
If you deposited funds through a broker, the interest will accrue and be paid through May 7, 2010.
14. Can I cash my interest check or cashier's check?
Interest checks and cashier's checks will continue to clear.
15. Will my Internet connection to The Bank of Bonifay work?
The bank website will be available for regular transactions on Monday, May 10, 2010.
16. What if I have an Individual Retirement Account (IRA)?
All deposits, including IRAs, have been transferred in their entirety
to First Federal Bank of Florida 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.
17. Will I lose anything on my deposit account?
No. All accounts have been transferred in their entirety to First Federal Bank of Florida and will be available starting on Monday, May 10, 2010.
18. What will happen to the checks which have not cleared my account?
Checks drawn on The Bank of Bonifay that did not clear before May 7, 2010, will be honored up to your available balance.
19. What if I need information regarding my account during the time The Bank of Bonifay was in business?
Please contact a representative of your new bank at your former The Bank of Bonifay branch location to obtain a copy of any records you may need or visit your branch.
20. Who will send my 1098 and/or 1099 information after the end of the year?
First Federal Bank of Florida 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.
21. Will I collect my uninsured deposits?
All deposits have been transferred in their entirety to First Federal Bank of Florida therefore, you have received your deposits in full.
22. Can funds be wired to me?
Please contact your former The Bank of Bonifay branch location to obtain information regarding your wire request.
LOAN QUESTIONS
23. Will my automatic payment still occur on its assigned date?
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 to research your loan.
24. Will construction draws continue? Will my project be completed?
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.
25. 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.
26. 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.
27. Are there any changes to fees or charges due to this event?
No. However, First Federal Bank of Florida will provide separate notification to its depositors should it decide to make any changes to the fees or charges in connection with the deposit liabilities it assumed under the terms of this transaction.
28. Will the FDIC continue foreclosures in process?
At this point, all foreclosure actions have been suspended in order to properly evaluate the loans and the borrowers’ ability to repay. It is our intention to sell all loans, and it will be up to the new owner to determine the best method of collection on the loan. There may be instances where FDIC will continue with the foreclosure process, but this will be done on a case-by-case basis.
29. 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 and may be supplemented by personnel from First Federal Bank of Florida.
30. Will my loan be sold?
Your loan may be sold at a future 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.
31. Can I continue to obtain advances on my line of credit?
All lines of credit, including Home Equity Lines of Credit (HELOCs), have been suspended at this time and have been retained by the FDIC. You may contact First Federal Bank of Florida to discuss establishing a borrowing relationship.
32. I have a loan currently in process. How is my loan impacted?
Please contact your loan officer directly.
33. Will my loan sweep be discontinued?
This will be determined on a case-by-case basis. Please contact your loan officer.
34. Will my overdraft line of credit continue to cover my overdrafts?
Yes. These lines have been transferred to First Federal Bank of Florida. Please contact your new bank if you have additional questions regarding your accounts.
35. How and where do I make my payments?
You should continue to make your payments as agreed. Make checks payable to FDIC as Receiver for The Bank of Bonifay 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.
36. 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 The Bank of Bonifay has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.
37. What will happen to my SBA loan application in process?
The FDIC as Receiver for The Bank of Bonifay 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. You will be directed 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. 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.
38. What will happen to my loan?
Each loan is currently being reviewed independently to determine the best action for that individual loan. Your loan may be sold at a future date. If that occurs, you will be notified in advance through written correspondence. 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.
39. I was in the process of negotiating the purchase of real property held by The Bank of Bonifay. Will my offer still be considered?
The FDIC will review offers made to purchase real property from the former
The Bank of Bonifay and will respond to the offers as soon as possible.
The review process includes ordering a new appraisal, which could take
up to 60 days or more.
The FDIC as Receiver has hired CB Richard Ellis (CBRE) to handle the management and disposition of real property acquired from the institution. If you have questions regarding the status of your offer please feel free to contact CBRE directly. Below is the contact information for CBRE:
CB Richard Ellis / Global Corporate Services
FDIC Account
2001 Ross Avenue, Suite 3300 I
Dallas, TX 75201
Email: FDIC-ORE@cbre.com
Office Phone:1-866-260-8505
GENERAL QUESTIONS
40. 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 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.
41. 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 other FDIC publication:
3501 North Fairfax Drive
1-703-562-2200 Phone
1-703-562-2296
Arlington, VA 22226
publicinfo@fdic.gov
42. I represent a TV/Newspaper/Radio and would like some information.
Please contact the Office of Public Affairs:
43. Is the new bank insured by the FDIC?
Yes. Your transferred deposit at First Federal Bank of Florida is insured by the FDIC to at least $250,000, as established by law.
44. How can I claim the contents of my safe deposit box?
It is business as usual. You may go to your branch and access your safe deposit box or make appointments by calling your former The Bank of Bonifay branch location.
45. I am a shareholder. What happens to my shares?
The Bank of Bonifay had no publicly owned stock. Equity shareholders were invested in the holding company, Bonifay Holding Company, Inc., Bonifay, FL, 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:
Bonifay Holding Company
PO Box 65
Bonifay, FL 32425
1-850-547-4711
46. I did some work for The Bank of Bonifay and have not yet been paid. What should I do?
Please send your bills to the following address:
FDIC as Receiver for The Bank of Bonifay
8800 Baymeadows Way West
Jacksonville, FL 32256
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/bonifay.html