Failed Bank Information
Information for Bank of Lincolnwood, Lincolnwood, IL
- Press Release
- Acquiring Financial Institution
- Question and Answer Guide
- Banking Services
- Loan Customers
- Possible Claims Against the Failed Institution
- Priority of Claims
- Dividend Information
- Brokered Deposits
- Purchase and Assumption Agreement (3.4 mb PDF File - PDF Help)
- Bid Summary
- Balance Sheet Summary
On Friday, June 5, 2009, Bank of Lincolnwood, Lincolnwood, IL was closed by the Illinois Department of Financial and Professional Regulation, Division of Banking and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.
The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information, which should answer many of your questions.
II. Press Release
The FDIC has issued a press release (PR-086-2009) about the institution's closure. If you represent a media outlet and would like information about the closure, please contact LaJuan Williams-Young at 202-898-3876.
III. Acquiring Financial Institution
All deposit accounts have been transferred to Republic Bank of Chicago, Oak Brook, IL ("assuming institution") and will be available immediately. On Saturday, June 6, 2009, the former Bank of Lincolnwood locations will reopen as branches of Republic Bank of Chicago.
Your transferred deposits will be separately insured from any accounts you may already have at Republic Bank of Chicago for six months after the failure of Bank of Lincolnwood. Checks that were drawn on Bank of Lincolnwood that did not clear before the institution closed will be honored as long as there are sufficient funds in the account. If you have questions about your account(s) transferred to the assuming bank, you may speak to an FDIC representative regarding deposit insurance by calling: (888) 206-4662.
For general questions about FDIC deposit insurance coverage, please call 1-877-275-3342 or visit EDIE, the FDIC's Electronic Deposit Insurance Estimator.
You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with Republic Bank of Chicago as long as the deposits are not pledged as collateral for loans. You may view more information about Republic Bank of Chicago by visiting their web site.
Republic Bank of Chicago (www.republicebank.com)
V. Banking Services
The Automated Teller Machines (ATM) will remain available.
As of Saturday, June 6, 2009, you may continue to use the services to which you previously had access, such as, safe deposit boxes, night deposit boxes, wire services, etc. On Monday, June 8, 2009 online services will resume.
Your checks will be processed as usual. All outstanding checks will be paid against your available balance(s) as if no change had occurred. Your new bank will contact you soon regarding any changes in the terms of your account. If you have a problem with a merchant refusing to accept your check, please contact your branch office. An account representative will clear up any confusion about the validity of your checks.
All interest accrued through Friday, June 5, 2009, will be paid at your same rate. Republic Bank of Chicago will be reviewing rates and will provide further information soon. You will be notified of any changes.
Your automatic direct deposit(s) and/or automatic withdrawal(s) will be transferred automatically to your new bank. If you have any questions or special requests, you may contact a representative of your assuming institution at your branch office.
VI. Loan Customers
If you had a loan with Bank of Lincolnwood, you should continue to make your payments as usual. The terms of your loan will not change under the terms of the loan contract, because they are contractually agreed to in your promissory note. Checks should be made payable as usual and sent to the same address until further notice. If you have further questions regarding an existing loan, please contact your loan officer.
For all questions regarding new loans and the lending policies of Republic Bank of Chicago, please contact your branch office.
Please see A Borrower's Guide to an FDIC Insured Bank Failure for additional information.
VII. Possible Claims Against the Failed Institution
If you or your company provided a service or product, leased space, furniture, or equipment to Bank of Lincolnwood after Friday June 5, 2009 and have not been paid you do not have a claim against Bank of Lincolnwood. Please follow your normal billing procedures by providing an invoice as instructed.
Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. If you or your company provided a service or product, leased space, furniture, or equipment to Bank of Lincolnwood prior to Friday June 5, 2009 and have not been paid you may be entitled to a claim against the bank. If you provided a product to or a service for Bank of Lincolnwood prior to the bank's failure for which you have not been paid and you have not received communication, contact:
Federal Deposit Insurance Corporation
Receiver: Bank of Lincolnwood
1601 Bryan Street,
Dallas, TX 75201
Please note: There are time limits for filing a claim, your claim must be filed on or before 09/08/2009.
VIII. Priority of Claims
In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:
- General Unsecured Creditors
- Subordinated Debt
IX. Dividend Information
X. Brokered Deposits
The FDIC offers a 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 deposited in a failed FDIC Insured Institution.