On Friday, February 20, 2009, Silver Falls Bank, Silverton, OR was
closed by the Oregon Department of Consumer and Business Services 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.
The FDIC has issued a press release (PR-024-2009) about
the institution's closure. If you represent a media outlet
and would like information about the closure, please contact LaJuan
Williams-Dickerson at 202-898-3876.
All deposit accounts have been transferred to Citizens Bank, Corvallis,
OR ("assuming institution") and will be available immediately. On
Monday, February 23, 2209, the former Silver Falls Bank locations will
reopen as branches of Citizens Bank.
Your transferred deposits will be separately insured from any accounts
you may already have at Citizens Bank for six months after the failure
of Silver Falls Bank. Checks that were drawn on Silver Falls Bank that
did not clear before the institution closed will be honored as long
as there are sufficient funds in the account. You may speak to
an FDIC representative regarding deposit insurance by calling: 1-800-760-3639
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 Citizens Bank as long as the deposits are not pledged as collateral
for loans. You may view more information about Citizens Bank by visiting
their web site.
The Automated Teller Machines (ATM) and online service will remain
available.
As of Monday, February 23, 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.
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, February 20, 2009, will be
paid at your same rate. Citizens Bank 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.
If you had a loan with Silver Falls Bank, 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 with the failed institution. 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 Citizens
Bank, please contact your branch office.
If you or your company provided a service or product, leased space,
furniture, or equipment to Silver Falls Bank after Friday
February 20, 2009 and have not been paid you do not have
a claim against Silver Falls Bank. 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 Silver Falls Bank prior to Friday February
20, 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 Silver Falls Bank 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: Silver Falls Bank
1601 Bryan Street
Dallas, TX 75201
Please note: There are time limits for filing
a claim, your claim must be filed on or before 05/27/2009.
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.
