|On Friday, August 14, 2009, Colonial Bank, Montgomery, AL was
closed by the Alabama State Banking Department, 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.
|All deposit accounts have been transferred to
Banking and Trust Company, (BB&T), Winston-Salem, NC ("assuming
and will be available immediately. The former Colonial Bank locations will reopen as branches of
BB&T. Each location will operate by the same schedule it did
prior to this transaction.
Your transferred deposits will be separately insured from any accounts
you may already have at BB&T for six
months after the failure of Colonial Bank. Checks
that were drawn on Colonial Bank 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 1-800-405-8739.
For general questions about FDIC deposit insurance coverage, please call 1-877-275-3342 or visit EDIE, the FDIC's Electronic Deposit Insurance Estimator.
- 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 BB&T as long as
the deposits are not pledged as collateral for loans. You may view more
information about BB&T by visiting their web site.
Branch Banking and Trust Company (BB&T) (www.bbt.com)
|The Automated Teller Machines (ATM) and online service will remain available.
During regular business hours,
you may continue to use the services to which you previously had access,
safe deposit boxes, night deposit boxes, wire services,
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, August 14, 2009, will
be paid at your same rate. BB&T will
be reviewing rates. 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
Determination of Insufficient Assets to Satisfy Claims Against Financial Institution in Receivership
SUMMARY: The FDIC has determined that insufficient assets exist in the receivership of Colonial Bank, Montgomery, Alabama, to make any distribution on general unsecured
claims, and therefore such claims will recover nothing and have no value.
DATES: The FDIC made its determination on April 15, 2013.
If you have questions regarding this notice, you may contact an FDIC Claims Agent at (972) 761–8677.
Written correspondence may also be mailed to:
FDIC as Receiver of Colonial Bank
Attention: Claims Agent
1601 Bryan Street
Dallas, Texas 75201
SUPPLEMENTARY INFORMATION: On August
14, 2009, Colonial Bank, Montgomery,
Alabama, (FIN #10103) was closed by
the Alabama State Banking Department,
and the Federal Deposit Insurance
Corporation (''FDIC'') was appointed as
its receiver (''Receiver''). In complying
with its statutory duty to resolve the
institution in the method that is least
costly to the deposit insurance fund (see
12 U.S.C. 1823(c)(4)), the FDIC
facilitated a transaction with Branch
Banking and Trust (''BB&T''), Winston-
Salem, North Carolina, to assume all of
the deposits and most of the assets of
the failed institution.
Section 11(d)(11)(A) of the FDI Act,
12 U.S.C. 1821(d)(11)(A), sets forth the
order of priority for distribution of
amounts realized from the liquidation or
other resolution of an insured
depository institution to pay claims.
Under the statutory order of priority,
administrative expenses and deposit
liabilities must be paid in full before
any distribution may be made to general
unsecured creditors or any lower
As of March 31, 2013, the maximum
value of assets that could be available
for distribution by the Receiver, together
with maximum possible recoveries on
professional liability claims against
directors, officers, and other
professionals, as well as potential tax
refunds, was $3,282,813,040. As of the
same date, administrative expenses and
depositor liabilities equaled
$4,981,236,544, exceeding available
assets and potential recoveries by
$1,698,423,504. Accordingly, the FDIC
has determined that insufficient assets
exist to make any distribution on
general unsecured creditor claims (and
any lower priority claims) and therefore
all such claims, asserted or unasserted,
will recover nothing and have no value.
DATED: April 16, 2013
Federal Register /Vol. 78, No. 76 / Friday, April 19, 2013 /Notices Pg. 23565
FAQ For "No Value" Determination