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Failed Bank Information
Connecticut Bank of Commerce, Stamford, CT, Closing Information
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- Introduction
- Press Release
- Acquiring Financial Institution
- Banking Services
- 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 June 26, 2002, Connecticut Bank of Commerce was closed by the Banking
Commissioner, Connecticut Department 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. |
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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.
Press Release: Hudson United Bank
purchases Connecticut Bank of Commerce |
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| III. Acquiring
Financial Institution |
All insured deposit accounts have been transferred to Hudson United
Bank, Mahwah, New Jersey ("assuming institution") and will be available
immediately. Your bank will re-open during regular business hours at the
former Connecticut Bank of Commerce offices.
Principal and interest on insured accounts, through June 26, 2002, 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
Connecticut Bank of Commerce. 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 1-877-367-2717
and arrange a personal meeting with a Claims Agent.
Your transferred deposits will be separately insured from any accounts you may
already have at Hudson United Bank for six months after the failure of
Connecticut Bank of Commerce. Checks that were drawn on Connecticut Bank of
Commerce that did not clear before the institution closed will be honored. You
may speak to an FDIC representative regarding deposit insurance by calling the
following number:1-877-367-2717
You may withdraw your funds from any transferred account without an early
withdrawal penalty until you enter into a new deposit agreement with Hudson
United Bank (provided the deposits are not pledged as collateral for loans).
For all questions regarding new loans and the lending policies of Hudson
United Bank, please contact: D. Lynn Van Borkulo-Nuzzo at 201-236-2350 or
visit their web site at
www.hudsonunitedbank.com.
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. Hudson
United 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 Hudson United Bank, D. Lynn Van Borkulo-Nuzzo at 201-236-2650.
An account representative will clear up any confusion about the validity of
your checks.
After June 26, 2002, your account will earn interest at a rate determined by
Hudson United 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. If you have any questions or special
requests, you may contact a representative of your assuming institution at
201-236-2650. |
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| V. Loan
Customers |
| If you had a loan with Connecticut Bank of Commerce, 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. |
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| VI. 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 Connecticut Bank of Commerce and have not
received a notice, please contact:
Federal Deposit Insurance Corporation
Receiver: Connecticut Bank of Commerce
Attention: Claims Department, DRR
1601 Bryan Street
Dallas, Texas 75201
Or:
Call toll free 1-800-568-9161 |
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| VII. 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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| VIII. Dividend Information
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Dividend
Information on Failed Financial Institutions |
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| IX. 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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