Failed Bank Information
Information for K Bank, Randallstown, MD
- Introduction
- 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 (1.84 MB PDF File - PDF Help)
- Bid Summary
- K Bank Contact Information
- Balance Sheet Summary
I. Introduction
On Friday, November 5, 2010, K Bank, Randallstown, MD was closed by the the Maryland Office of Financial Regulation, 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.
Back to topII. Press Release
The FDIC has issued a press release
(PR-242-2010) about
the institution's closure. If you represent a media outlet and would
like information about the closure, please contact Greg Hernandez at
1-202-898-6984.
III. Acquiring Financial Institution
All deposit accounts, excluding Cede & Co. deposits, have been transferred to Manufacturers and Traders Trust Company, Buffalo, NY ("assuming institution") and will be available immediately. The former K Bank locations will reopen as branches of Manufacturers and Traders Trust Company during regular business hours.
Your transferred deposits will be separately insured from any accounts
you may already have at Manufacturers and Traders Trust Company for six
months after the failure of K Bank. Checks
that were drawn on K 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 by calling 1-800-830-4697.
For general questions about FDIC deposit insurance coverage, please call 1-877-275-3342 or visit EDIE, the FDIC's Electronic Deposit Insurance Estimator.
EDIE - 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 Manufacturers and Traders Trust Company as long as the deposits are not pledged as collateral for loans. You may view more information about Manufacturers and Traders Trust Company by visiting their web site.
Manufacturers and Traders Trust Company (www.mtb.com)
Back to topV. Banking Services
The Automated Teller Machines (ATM) and online service will remain available.
The bank will maintain its regular business hours, and 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, November 5, 2010 will be paid at your same rate. Manufacturers and Traders Trust Company will be reviewing rates. You will be notified of any changes.
Your direct deposits and automatic withdrawals will be transferred 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.
Back to topVI. Loan Customers
If you had a loan with K Bank, you should continue to make your payments as usual. The terms of your loan will not change, 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 Manufacturers and Traders Trust Company, please contact your branch office. Please see A Borrower’s Guide to an FDIC Insured Bank Failure for additional information.
Back to topVII. Possible Claims Against the Failed Institution
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 K Bank after Friday, November 5, 2010 and have not been paid, you do not have a claim against K Bank. Please follow your normal billing procedures by providing an invoice as instructed.
If you or your company provided a service or product, leased space, furniture, or equipment to K Bank prior to Friday, November 5, 2010 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 K Bank prior to the bank's failure for which you have not been paid and you have not received communication, please contact:
Please note: There are time limits for filing a claim, your claim must be filed on or before .
All shares of K Bank were owned by its holding company, K Capital Corporation, Owings Mills, MD. The holding company was not included in the closing of the bank or the resulting receivership. If you are a shareholder of K Capital Corporation, please do not contact or file a claim with the Receiver. You may contact K Capital Corporation directly for information as follows:
11407 Cronhill Dr., Suite N
Owings Mills, MD 21117
1-410-363-7050
VIII. Priority of Claims
In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:
- Depositors
- General Unsecured Creditors
- Subordinated Debt
- Stockholders