Question and Answer Guide
Lakeside Community Bank, Sterling Heights, MI
FDIC Call Center
Toll free number 1-800-640-2631
Hours of Operation – Eastern Time
Friday, April 16, 2010: Until 9:00 p.m.
Saturday, April 17, 2010: 9:00 a.m. – 6:00 p.m.
Sunday, April 18, 2010: 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/)
Electronic Deposit Insurance Estimator (edie.fdic.gov/)
Lakeside Community Bank, Sterling Heights, MI, was closed Friday, April 16, 2010 by the Michigan Office of Financial and Insurance 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 insured deposits as a result of the closure of Lakeside Community Bank. 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).
Your insurance checks will be mailed on Monday, April 19, 2010 to your address on record with Lakeside Community Bank.
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.
Government direct deposits, including social security checks, will be redirected to First Michigan Bank. Please call that institution for further information.
To forewarn you of any scams, please be advised that you will not receive any e-mail notification from the FDIC, the Receiver, to claim/unlock/unsuspend your account or to provide any private information. Please be watchful for and resist any such scams to obtain information from you by individuals or entities acting on behalf of Lakeside Community Bank or the FDIC.
- Over $250,000: What if I have more than $250,000 in my accounts at Lakeside Community Bank?
- Account Hold: I have been advised there is a hold on my account. What does that mean?
- Account Insurance Status: Is my account fully insured? Is there a method to verify whether my account(s) at Lakeside Community Bank are fully insured?
- ATM/Debit Card/Checks: Can I continue to write checks or use my ATM/Debit card?
- Automatic Payments/Online Bill Pay: Will my automatic Bill Pay payments continue?
- Brokered Deposits/Deposit Broker: I am a deposit broker or I have brokered deposits.
- 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?
- Direct Deposits, Social Security: What will happen to my direct deposits?
- Early withdrawal penalty: Will I incur an early withdrawal penalty on my CD if I close my CD before maturity?
- Final Statement: How will I get my final statement(s) from Lakeside Community Bank?
- Interest: Will I be paid interest at the same rate?
- Interest Checks/Cashier's Checks: Can I cash my interest check or cashier's check?
- Internet Connection: Will online banking work?
- IRAs: What if I have an Individual Retirement Account (IRA)? Is my IRA 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 Lakeside Community Bank was in business?
- Tax Reporting - 1098/1099s: Who will send my 1098 and/or 1099 information?
- Uninsured: Will I collect my uninsured deposits?
- Wire Transfer: Can funds be wired to me?
- Automatic Payments: Will my ACH transaction payment still occur on its assigned date?
- Construction Loan Draws: Will draws continue and will my project be completed?
- Construction Loan Voucher Control: Will my subcontractors be paid as before?
- Escrows: Will my escrows continue to be paid?
- Fees: Are there any changes to fees or charges due to this event?
- Foreclosures: Will the FDIC continue foreclosures in process?
- Lender and contact names: Who is my lender and has my loan contact changed?
- Loan Sales Will my loan be sold?
- Line of Credit Advances – Home Equity: Can I continue to obtain advances on my 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/where do I make my payments?
- Pre-payment Penalty: If I refinance, 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?
- Offers to Purchase Other Real Estate: Will my offer still be considered?
- 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 information about FDIC Insurance rules?
- Media: I represent a TV/Newspaper/Radio and would like some information.
- Safe Deposit Box: How do I obtain the contents of my safe deposit box?
- Shareholders: I am a Shareholder. What happens to my shares?
- Unpaid Bill: I am owed money by Lakeside Community Bank. What should I do?
- What happened? What happened, why did the bank fail?
DEPOSIT QUESTIONS
1. Over $250,000: What if I have more than $250,000 in my accounts at Lakeside Community Bank?
You should call the FDIC to schedule a telephone appointment with an FDIC Claims Agent at 1-800-640-2631. 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 non-interest 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, this website contains samples and instructions for completing the declarations. If your question is not resolved by going to the website, please call 1-800-640-2631 and indicate you have a form completion question.
2. 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 1-800-640-2631 to schedule a telephone appointment.
3. Account Insurance Status: Is my account fully insured? Is there a method to verify whether my account(s) at Lakeside Community Bank 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 1-800-640-2631 to schedule a telephone appointment.
4. 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 your insurance check on Monday, April 19, 2010 to the address on record with Lakeside Community Bank.
5. 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.
6. 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's Processing Guide completely before contacting the FDIC with questions:
Deposit Broker's 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 1-800-640-2631 and indicate you have a form completion question.
If you are a customer who has a Lakeside Community Bank 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.
7. 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/lakeside-comm_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.
8. Claim Account(s): How do I claim my account(s)?
The FDIC will mail your insurance check on Monday, April 19, 2010 to your address on record with Lakeside Community Bank. 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.
9. Customer Impact: How does this failure affect me?
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. Certain entitlements and different types of accounts can be insured in excess of the $250,000. If you think you might have uninsured deposits, please see question number one for information regarding forms you may need to complete to expedite this process.
If you had a loan with the bank, continue to make your checks payable to Lakeside Community Bank and mail to the same address you have used in the past until you are instructed otherwise.
All accounts have been closed, and the FDIC will mail your insurance check to your address on record with Lakeside Community Bank.
10. 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 First Michigan Bank, Troy, MI. These will be processed at the same time they have been processed in the past. You may contact them at the following address:
First Michigan Bank
2301 W. Big Bear
Suite 525
Troy, MI 48084
11. Early withdrawal penalty: Will I incur an early withdrawal penalty if I close my CD before maturity?
Your CD will automatically be closed, and the FDIC will mail your insurance check on Monday, April 19, 2010. You will NOT be assessed an early withdrawal penalty.
12. Final Statement: How will I get my final account statement(s) from Lakeside Community Bank?
You will receive a final statement within one week of the closing.
13. Interest: Will I continue to earn interest at the same rate?
All interest on insured deposits accrued through Friday, April 16, 2010, will be paid at your same rate. This will be included in the check you will receive from the FDIC.
14. Interest Checks/Cashier's Checks: Can I cash my interest check or cashier's check?
No, these checks will not clear; Interest Checks that have not been cashed will be replaced with a new check issued by FDIC and mailed on April 19, 2010, to the address on record with Lakeside Community Bank.
Accrued interest through Friday, April 16, 2010, will be included in your insurance check and mailed on April 19, 2010, to the address on record with Lakeside Community Bank. 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 before you are mailed a check. You should call the FDIC to schedule a telephone appointment with an FDIC Claims Agent at 1-800-640-2631.
Cashier's checks, certified checks, money orders meet the definition of non-interest-bearing transaction accounts. Under the Temporary Liquidity Guarantee Program, non-interest-bearing transaction accounts are fully insured. These items may be exchanged for a replacement check by contacting the FDIC at 1-800-640-2631.
15. Internet Connection: Will my Internet connection to Lakeside Community Bank work?
All accounts have been closed, and you will no longer have access to the website.
16. 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 on Monday, April 19, 2010 to your address on record with the bank.
17. Lose Any Money: Will I lose anything on my deposit account?
Principal and interest on insured accounts, through Friday, April 16, 2010, are protected by the FDIC, 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 Claim 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.
18. Outstanding Checks: What will happen to the checks which have not cleared my account?
Checks that were drawn on Lakeside Community Bank 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/lakeside-comm_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.
19. Records/Account Histories: What if I need information regarding my account during the time Lakeside Community Bank was in business?
Please contact the FDIC at 1-800-640-2631 to request a copy of your records.
20. 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.
21. 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 Lakeside Community Bank. 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 https://closedbanks.fdic.gov/dividends/.
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.
22. Wire Transfer: Can funds be wired to me?
No, regretfully, we cannot wire your funds.
LOAN QUESTIONS
23. 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.
24. Construction Loan Draws: 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. 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.
26. 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.
27. Fees: Are there any changes to fees or charges due to this event?
No. The current fee structure will remain the same.
28. Foreclosures: Are there any changes to fees or charges due to this event?
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. 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.
30. Loan Sales: 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. Line of Credit Advances – Home Equity: Can I continue to perform advances on my personal line of credit?
No. All lines of credit, including Home Equity Lines of Credit (HELOCs), have been suspended. You should contact another financial institution to discuss establishing a borrowing relationship.
32. Loan in Process: I have a loan currently in process. How is my loan impacted?
Please contact your loan officer directly.
33. Loan Sweeps: Will my loan sweep be discontinued?
This will be determined on a case-by-case basis. Please contact your loan officer.
34. Overdraft Line of Credit: Will my overdraft line of credit continue to cover my overdrafts?
No. All accounts have been closed.
35. Payments: How and where do I make my payments?
You should continue to make your payments as agreed. Make checks payable to Lakeside Community Bank and utilize the same payment address information.
43850 Schoenherr Road
Sterling Heights, MI 48313
36. 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 Lakeside Community Bank has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.
37. SBA Application in Process: What will happen to my SBA loan application in process?
The FDIC as Receiver for Lakeside Community 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. You will 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 Happens Now: 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 refinance your loan with another lender.
39. Offers to Purchase Other Real Estate: I was in the process of negotiating the purchase of real property held by Lakeside Community Bank. Will my offer still be considered?
The FDIC will review offers made to purchase real property from the former Lakeside Community Bank and will respond to the offers as soon as possible. The review process may include 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:
Kim Celoni
CB Richard Ellis / Global Corporate Services
FDIC Account
2001 Ross Avenue, Suite 3300 I
Dallas, TX 75201
1-866-260-8505; 214-863-3035
Email: FDIC-ORE@cbre.com
Kim.celoni@cbre.com
GENERAL QUESTIONS
40. 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.
41. 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):
Deposit Insurance (www.fdic.gov/deposit/index.html)
Are my deposits insured? (www.fdic.gov/deposit/deposits/index.html)
EDIE (edie.fdic.gov)
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
42. Media: I represent a TV/Newspaper/Radio and would like some information.
Please contact the Office of Public Affairs:
43. Safe Deposit Boxes: How can I claim the contents of my safe deposit box?
Beginning Monday April 19, 2010, you may call the Lakeside Community Bank directly at 586-532-8046 to schedule a time to access and clear out the contents of your safe deposit box.
Please be advised if you do not clear your safe deposit box before May 14, 2010, the box will be drilled under dual control. The contents will be escheated to your state as unclaimed property in accordance with state law. You will receive a letter at the address listed on the bank's records prior to your box being drilled. Unclaimed property can be located by visiting www.missingmoney.com or contacting your state treasurer's office or office of unclaimed property.
44. Shareholders: I am a shareholder. What happens to my shares?
The Lakeside Community Bank had no publicly owned stock. Equity shareholders were invested in the holding company, Michigan Community Bancorp, Ltd., Sterling Heights, Michigan 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:
Michigan Community Bancorp, Ltd.
43850 Schoenherr Road
Sterling Heights, MI 48313
45. Unpaid Bill: I did some work for Lakeside Community Bank and have not yet been paid. What should I do?
A Proof of Claim (POC) form will need to be completed. POC's can be found on the FDIC website (www.fdic.gov) or you can request one to be sent to you by calling 1-949-208-6700. Send completed POC, supporting documents, and any other documentation that supports your claim to:
Federal Deposit Insurance Corporation
Receiver: Lakeside Community Bank
1601 N. Bryan Street
Dallas, TX 75201-3430
Attention: Claims Agent
For more information: www.fdic.gov/bank/individual/failed/lakeside-comm.html