The following answers are provided to the
most commonly asked questions by customers of the failed bank. The
total balance in your account(s) has been transferred to National
Bank, Hillsboro, Illinois and will be available
for transactions during regular business hours at the former Meridian
Bank branches. DEPOSIT QUESTIONS
- Over $250,000
What if I have more than $250,000 in my accounts at Meridian Bank?
- Account Hold
I have been advised there is a hold on my account. What does that mean?
- ATM/Debit Card/Checks Can I continue to write checks or use my ATM/Debit card?
- Checks not Honored A merchant will not honor my check. What
can I do?
- Claim Account(s) How do I claim my account(s)?
- Customer Impact How does this failure affect me?
- Deposits
Existing at National Bank, Hillsboro, Illinois I
already have other deposit accounts with the new bank. When
combined with balances at this bank, my deposits exceed $250,000. Are
all funds insured?
- Direct
Deposits, Social Security What will happen
to my direct deposits?
- Early Withdrawal Penalty
Will I incur an early withdrawal penalty if I close my CD before maturity?
- Final Statement
How will I get my final account statement(s) from Meridian Bank?
- Interest Will I continue to earn interest at the same rate?
- Interest Check/Cashier's
Checks Can I cash my interest check or cashier's check?
- Internet Connection
Will my Internet connection to Meridian Bank continue
to work?
- IRAs
What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?
- Lose Any Money? Will I lose anything on my deposit account?
- Outstanding Checks
What will happen to the checks which have not cleared my account?
- Records/Account Histories What if I need information regarding my account during the time Meridian Bank was in business?
- Tax Reporting - 1098/1099s
Who will send my 1098 and/or 1099 information after the end of the year?
- Wire Transfer Can
funds be wired to me?
LOAN QUESTIONS
- Automatic Payments Will my automatic transaction payment still occur on its assigned date?
- Construction Loan Draws Will construction draws continue? Will my project be completed?
- Construction Loan Voucher Control Will my subcontractors be paid as before?
- Escrows Will you continue to pay my escrows?
- Fees Are there any changes to fees or charges due to this event?
- Lender and Contact
Names Who is my lender and has my loan contact
changed?
- Loan Sales Will my loan be sold?
- Line
of Credit Advances Can I continue
to perform advances on my line of credit?
- Loan in Process I have a loan currently in process. How is my loan impacted?
- Loan Sweeps Will my loan sweep be discontinued?
- Overdraft Line of Credit Will my overdraft line of credit continue to cover my overdrafts?
- Payments How
and where do I make my payments? Can I still pay by phone or
at the branch?
- Pre-payment Penalty If I refinance with another lender, will my pre-payment penalty be waived?
- SBA Application in Process What will happen to my SBA loan application in process?
- What Happens Now What will happen to my loan?
GENERAL QUESTIONS
- All Deposit Transfer versus Insured Deposit Transfer Why do all deposits, insured or not, pass is some transactions but not in others?
- FDIC
Insurance How can I find out more about Federal Deposit Insurance rules?
- Media
I represent a TV/Newspaper/Radio and would like some information.
- New Bank Insured
Is the new bank insured by the FDIC?
- Safe Deposit Boxes
How can I claim the contents of my safe deposit box?
- Shareholders I am a shareholder in Meridian Bank. What happens to my shares?
- Unpaid Bill
I did some work for Meridian Bank and have not yet been paid. What should I do?
- What Happened? What
happened, why did the bank fail?
- Work for FDIC - Contract or Employment
How can I apply to work for FDIC as a contractor or employee?
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DEPOSIT QUESTIONS |
1. What if I have more than $250,000 in my accounts at Meridian Bank? |
All deposit accounts have been transferred in their entirety
to National Bank, based in Hillsboro, Illinois.
All former Meridian Bank offices that observed Saturday hours will reopen
for normal business hours on Saturday, October 11, 2008. Other branches
will reopen on Tuesday October 14, 2008, as branches of National
Bank.
As an All-Deposit Transfer transaction, the total of
all deposit accounts, whether within FDIC insurance limits or not, have
been assumed by National Bank and will
be available for business as usual. |
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2.
I have been advised there is a hold on my account. What does that mean? |
It is possible a depositor’s account was held due to delinquent loans where the depositor is the borrower or guarantor. Additionally, any account pledged as collateral for a loan will continue to be held. A letter will be sent informing you of any holds placed by the FDIC, along with instructions on how to proceed. If you have any questions regarding these holds, please call your loan officer or the FDIC at the number provided in the letter. |
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3. Can
I continue to write checks or use my ATM/Debit card? |
You will be able to continue using your personal checks at this time, and
your ATM/Debit card will continue to work. The ATMs will be unavailable for
a short period of time on Friday for processing; however, they are expected
to be operational later in the evening. |
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4.
A merchant will not honor my check. What can I do? |
You can provide a copy of this document or a copy of the press
release (www.fdic.gov/news/news/press/2008/pr08099.html)
since both documents state all deposits have been transferred
to National Bank, and it is business as
usual. Copies of this press release will be available at the former Meridian
Bank branches. Depositors or merchants
can also call the FDIC at 1-877-894-4713 or the former Meridian Bank branches. |
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5. How do I claim my account(s)? |
Your account(s) has already been transferred to National Bank, and your account(s)
will be handled as usual. Any withdrawal, renewal or additional deposits will “claim” your
account. Please be advised that if there is no activity in your account in
the next 18 months, that money will be turned over to your state as unclaimed
property. Unclaimed property can be located by visiting www.missingmoney.com or
contacting your state treasurer’s office or office of unclaimed property. |
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6. How
does this failure affect me? |
All deposits (both insured and uninsured) of Meridian Bank have been transferred to National Bank, and it will be business as usual. If you held an account at Meridian Bank, you now have an account at National Bank that is available to you at your former Meridian Bank branches during regular business hours.
If you had a loan with Meridian Bank, please continue to make your payments to the same address as you have in the past until you are instructed otherwise. Continue to make your checks payable to Meridian Bank.
The former Meridian Bank locations that observed Saturday hours will reopen for normal business hours on Saturday, October 11, 2008. The other branches will reopen on Tuesday, October 14, 2008. You will have continued access to your money through your ATM/debit card and by writing checks.
Can Meridian Bank customers use National
Bank branches?
No, not at this time. During the transition of Meridian Bank records to National Bank’s systems, Meridian Bank customers should continue to conduct their banking business at former Meridian Bank branches. You will be notified when you can use National Bank’s branches.
Similarly, existing National Bank customers cannot use former Meridian Bank branches and should continue to conduct their business at National Bank’s branches.
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7. I
already have other deposit accounts with the new bank. When
combined with balances at this bank, my deposits exceed $250,000. Are
all funds insured? |
The transferred accounts will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure his or her accounts, if necessary.
CDs from the assumed bank are separately insured until the earliest maturity date after the end of the six-month grace period. CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period. If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.
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8. What
will happen to my direct deposits? |
Direct Deposits will continue as normal, including Social Security checks. If you need to change anything in the future, please contact or visit your former Meridian Bank branch location to make those arrangements. |
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9. Will
I incur an early withdrawal penalty if I close my CD before maturity? |
No. You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from, your account. |
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10. How
will I get my final account statement(s) from Meridian Bank? |
You will receive your account statements at the same time you have received them in the past. |
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11.
Will I continue to earn interest at the same rate? |
All interest bearing deposits will continue to accrue interest at the same rate. National Bank will be reviewing rates and will provide further information soon.
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12. Can
I cash my interest check or cashier's check? |
Interest checks and cashier's checks will continue to clear. |
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13. Will
my Internet connection to Meridian Bank continue to work? |
Yes. The bank’s website will continue with full functionality. |
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14. What
if I have an Individual Retirement Account (IRA)? Will my
savings still be insured? |
Yes, all deposits, including IRAs have been transferred in their entirety
to National Bank. IRA funds are insured
separately from other types of accounts up to $250,000.
If you close your IRA before maturity, you have 60 days to roll this over into another retirement vehicle. You should consult IRS Publication 590 and/or your tax advisor concerning the possible tax consequences of such distribution. IRS Publication 590 may be obtained by contacting your local IRS office or via the Internet at
www.irs.gov. |
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15. Will
I lose anything on my deposit account? |
No. All accounts have been transferred in their entirety to National
Bank and will be available starting on Saturday, October
11, 2008. |
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16. What
will happen to the checks which have not cleared my account? |
Checks drawn on Meridian Bank that did not clear before Friday, October 10, 2008, will be honored up to your available balance. |
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17.
What if I need information regarding my account during the time Meridian Bank
was in business? |
Please contact a representative of your new bank at your former Meridian Bank branch location to obtain a copy of any records you may need or visit your branch. |
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18. Who
will send my 1098 and/or 1099 information after the end of the year? |
National Bank will be responsible
for mailing your 1099 tax information. Your 1098 reporting will be done by
the
FDIC or
the servicer of your loan.
You will be notified of any changes in ownership or servicing of your loan. |
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19. Can
funds be wired to me? |
Please contact your former Meridian Bank branch location to obtain information regarding your wire request. |
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LOAN QUESTIONS |
20.
Will my automatic transaction payment still occur on its assigned date? |
You should experience no disruption in this service. We encourage you to check your bank account the day after your scheduled draft to verify the transaction. If the transaction did not occur, please notify your loan officer and we will research your loan. |
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21.
Will construction draws continue? Will my project be completed? |
Each loan is being reviewed independently, and you should direct your questions to your loan officer. These will be determined on a case-by-case basis. |
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22.
Will my subcontractors be paid as before? |
Each loan is being reviewed independently and will be determined on a case-by-case basis. You should direct your questions to your loan officer.
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23.
Will you continue to pay my escrows? |
All services previously performed related to your loan will continue. Should you receive notification that any portion of your taxes or insurance were not paid, please notify your loan officer immediately. |
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24.
Are there any changes to fees or charges due to this event? |
No. The current fee structure will remain the same.
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25.
Who is my lender and has my loan contact changed? |
Your loan is currently owned by the FDIC. You can contact the FDIC at 877-894-4713. |
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26.
Will my loan be sold? |
Your loan may be sold at a future undetermined date. If that occurs, you will be notified in advance through written correspondence. We encourage you to independently seek another lender to refinance your loan.
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27.
Can I continue to perform advances on my line of credit? |
No. All lines of credit have been suspended at this time. You may contact
National Bank at 1-618-462-8631 to discuss establishing a borrowing relationship.
Otherwise, we encourage you to independently seek refinancing with another
lender.
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28.
I have a loan currently in process. How is my loan impacted? |
Please contact your loan officer directly.
|
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29.
Will my loan sweep be discontinued? |
This will be determined on a case-by-case basis. Please contact your loan officer. |
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30.
Will my overdraft line of credit continue to cover my overdrafts? |
Yes. These lines have been transferred to National Bank. Please contact
your new bank if you have additional questions regarding your accounts. |
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31.
How and where do I make my payments? Can I still pay by phone or at
the branch? |
You should continue to make your payments as agreed. Make checks payable
to FDIC as Receiver of Meridian Bank and utilize the same payment address
information.
You may continue to make your payments at the branch or by phone via check or credit card.
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32.
If I refinance with another lender, will my pre-payment penalty be waived? |
This will be determined on a case-by-case basis.
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33.
What will happen to my SBA loan application in process? |
The FDIC as Receiver for Meridian Bank will not be originating any new loans.
If your loan has been approved by the SBA, but is not yet funded, please contact your loan officer. He will direct you to the proper SBA contact to help you locate another approved lender.
If your loan is in process, but is not yet approved by the SBA, we will release your SBA package on file with us to you, and you will need to apply with another SBA-approved lender. Please contact your loan officer to make arrangements to retrieve your application from the bank.
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34.
What will happen to my loan? |
Each loan is currently being reviewed independently to determine the best action for that individual loan. If you are concerned about whom your future lender or servicer may be, you have the right to independently refinance your loan with another lender.
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GENERAL QUESTIONS |
35. Why
do all deposits, insured or not, pass is some transactions but not in
others? |
The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction. The FDIC is only able to transfer all deposits if the uninsured amounts are covered by the premium. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.
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36. How
can I find out more about Federal Deposit Insurance rules? |
You may access our website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator
(EDIE):
You may also order Your Insured Deposits or any other FDIC publication:
3501 North Fairfax Drive
Room E-1002
Arlington, VA 22226
703-562-2200 Phone
703-562-2296 Fax
publicinfo@fdic.gov
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37.
I represent a TV/Newspaper/Radio and would like some information. |
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38. Is
the new bank insured by the FDIC? |
Yes. Your deposit at National Bank is
insured by the FDIC, and each depositor is insured to at
least $250,000, as established by law. |
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39. How
can I claim the contents of my safe deposit box? |
It is business as usual. You may go to your branch and access your safe deposit box or make appointments by calling your former Meridian Bank branch location. |
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40.
I am a shareholder in Meridian Bank. What happens to my shares? |
Shareholders have a claim against the receivership; however, they have the lowest priority of claim. You should discuss this with an accountant and/or the IRS concerning the exact requirements necessary to recognize the investment as a loss for tax purposes.
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41. I
did some work for Meridian Bank and have not yet been paid. What
should I do? |
Please send your bills to the following address:
FDIC as Receiver for Meridian Bank
1601 Bryan Street
Dallas, TX 75201
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42. What
happened, why did the bank fail? |
Meridian Bank, Eldred, Illinois was closed Friday, October 10, 2008, by the Department of Financial and Professional Regulation of the Illinois Division of Banking. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. According to regulatory policy, there is no advance notice given to the public. Please see the Department of Financial and Professional Regulation of the Illinois Division of Banking press release for more information.
The good news is that no one lost any deposits as a result of the closure of Meridian Bank to protect depositors; the FDIC Board of Directors approved the assumption of ALL of Meridian Bank’s deposits by National Bank, headquartered in Hillsboro, Illinois. |
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43. How
can I apply to work for FDIC as a contractor or employee? |
For contracting opportunities with the FDIC, you may call 1-866-308-4470
for more information. You may also email ProcurementOpportunities@fdic.gov. Please
include a statement of your corporate capabilities, contact information and
Minority or Women-Owned Business (MWOB) status, if any.
You must also register in the Central Contractor Registration database at www.ccr.gov.
To review positions currently available at the FDIC, visit Careers at FDIC (www.fdic.gov/about/jobs/index.html). |
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