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Failed Bank Information
Southern Pacific Bank, Torrance, CA, Closing Information
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- Introduction
- Press Release
- Acquiring Financial Institution
- Banking Services
- Deposit Accounts
- Loan Customers
- Possible Claims Against the Failed Institution
- Priority of Claims
- Dividend Information
- Brokered Deposits
- Balance Sheet Summary
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| I. Introduction |
On February 7, 2003, Southern Pacific Bank, Torrance, California, was
closed by the California Division of Financial Institutions 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. |
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| II. Press
Release |
| The FDIC has issued a press
release about the institution’s closure. If you represent a media outlet
and would like information about the closure, please contact the FDIC Public
Affairs Office at (202) 898-6993. |
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| III. Acquiring
Financial Institution |
All insured deposit accounts have been transferred to Beal Bank, SSB.,
Plano, Texas ("assuming institution") and will be available immediately. Your
bank will re-open during regular business hours at the new Beal Bank offices.
Principal and interest on insured accounts, through February 7, 2003, are
fully insured by the FDIC, up to the insurance limit of $100,000. You will
receive full payment for your insured account. Certain entitlements and
different types of accounts may be insured for more than the $100,000 limit.
IRA funds are insured separately from other types of accounts, up to a
$100,000 limit.
If it is determined that you have uninsured funds, the FDIC will generate and
mail to you a Receiver Certificate. This certificate entitles you to share
proportionately in any funds recovered through the disposal of the assets of
Southern Pacific Bank. This means that you may eventually recover some of your
uninsured funds.
All accounts that exceed the $100,000 insurance limit, and/or all accounts
that appear to be related and exceed this limit, are reviewed by the FDIC to
determine their ownership and insurance coverage. If it appears that you have
potentially uninsured funds, an FDIC Claims Agent will contact you, by either
telephone or mail, regarding your account(s). Or, you may call (toll free)
1-866-308-4470 and arrange a personal meeting with a Claims Agent.
Your transferred deposits will be separately insured from any accounts you may
already have at Beal Bank for six months after the failure of Southern Pacific
Bank. Checks that were drawn on Southern Pacific Bank that did not clear
before the institution closed will be honored. You may speak to an FDIC
representative regarding deposit insurance by calling (toll free)
1-866-308-4470.
You may withdraw your funds from any transferred account without an early
withdrawal penalty until you enter into a new deposit agreement with Beal Bank
(provided the deposits are not pledged as collateral for loans).
For all questions regarding new loans and the lending policies of Beal Bank,
please visit the Beal Bank web site at:
www.bealbank.com or you may phone 1-800-428-5056.
For additional information on
deposit insurance visit EDIE the FDIC's Electronic Deposit Insurance
Estimator.
EDIE
- FDIC's Electronic Deposit Insurance Estimator |
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| IV. Banking
Services |
You may continue to use the services to which you previously had access,
such as automatic teller machines (ATMs), 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 insured balance(s) as if no change had occurred. Beal
Bank will contact you soon regarding any changes in the terms of your account.
After February 7, 2003, your account will earn interest at a rate determined
by Beal Bank. You will be notified by letter regarding this matter.
Your automatic direct deposit(s) and/or automatic withdrawal(s) should be
transferred automatically to your assuming institution. You should contact
your assuming institution, however, to discuss your account(s) and to insure
that service is not delayed or discontinued.
All your deposit account histories and records will be transferred to your
assuming institution. If your assuming institution requires any additional
signatures or forms, it will notify you. |
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V. Deposit Accounts |
All accounts that exceed the $100,000 insurance limit, and/or all
accounts that appear to be related and exceed this limit, are reviewed by the
FDIC to determine their ownership and insurance coverage. If it appears that
you have potentially uninsured funds, you should make an appointment to speak
with a FDIC Claims Agent, regarding your account(s). You may reach a Claims
Agent by calling 1-877-367-2731.
If you have funds in an account known as payable on death (POD) account,
revocable trust or in trust for (ITF) account, one of the forms listed below
is required:
Declaration for Testamentary Deposit
(Single Grantor)-Word 44k (Word Help)
Declaration for Testamentary Deposit
(Multiple Grantors)-Word 63k (Word Help)
If you choose to fax the form, please fax to 972-761-2250 or you may mail the
form to the claim agent at:
Federal Deposit Insurance Corporation
Receiver: Southern Pacific Bank
Attention: Claims Department
1601 Bryan Street
Dallas, TX 75201
If you have a trust account and the balance is over $100,000 it will be
necessary for you to fax or mail your trust agreement to the FDIC. A team of
lawyers is on site in Dallas to expedite the review process. It is also
necessary for you to complete a “Declaration for Trust” form to send in with
your trust document. The form may be found at
Declaration for Trust-Word 69k (Word Help)
If you choose to fax your trust document, please fax it to 703-812-1098 or
703-812-1097.
The address for mailing in your package is:
FDIC
1500 Dragon Street
Post Office Box Number 139003
Dallas, TX 75313-9003
After our legal staff has reviewed your trust document, a Claim Agent will
call you and review the insurance determination with you. Please include your
telephone number with your package.
If your account involves an employee benefit plan, you should review the
“Instructions for Employee Benefit Plan. The Instructions my be found at:
Affidavits and Declarations
The forms referenced in the instructions may be found at:
Declaration for Plan and Trust-Word 46k (Word Help)
Declaration for Defined Benefit Plan-Word 46k (Word Help)
Declaration for Defined Contribution Plan-Word 55k (Word Help)
Declaration for Health and Welfare Plan-Word 43k (Word Help)
Each of these forms should be completed in their entirety and submitted to
FDIC for review. If you choose to fax the package, please fax to 972-761-2250
or you may mail the form to the claim agent at:
Federal Deposit Insurance Corporation
Receiver: Southern Pacific Bank
Attention: Claims Department
1601 Bryan Street
Dallas, TX 75201
After a review of your documentation, a Claim Agent will call you and review
the insurance determination with you. Please include your telephone number
with your package.
If it is determined that you do have uninsured funds, the FDIC will generate
and mail to you a Receiver Certificate. This certificate entitles you to share
proportionately in any funds recovered through the disposal of the assets of
Southern Pacific Bank. This means that you may eventually recover some of your
uninsured funds. For a more detailed explanation of the dividend process,
please go to:
Dividend Information on Failed Financial Institutions |
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| VI. Loan
Customers |
If you had a loan with Southern Pacific 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 your
promissory note with the failed institution. Checks should be made to your
former bank and sent to the same address until further notice.
For loans retained by the FDIC, payoff figures may be requested by calling
(toll free) 1-866-308-4470. For loans retained by Beal Bank, you may request a
payoff by calling (toll free) 1-800-428-5056. |
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| VII. 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. Shortly
after the failure, the FDIC sends notices directly to all known service providers to
explain the claim filing process.
Please note: there are time limits for
filing a claim, as specified in the notice.
If you provided a service for Southern Pacific Bank and have not received
a notice, please contact:
Federal Deposit Insurance Corporation
Receiver: Southern Pacific Bank
Attention: Claims Department, DRR
1601 Bryan Street
Dallas, Texas 75201
Or:
Call toll free 1-800-568-9161 |
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| 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
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| IX. Dividend
Information |
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Dividend History on Southern Pacific Bank
| | Dividend Information on Failed Financial Institutions |
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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.
Deposit
Broker Processing Guide |
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| General Disclaimer |
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