Failed Bank Information

Information for Copper Star Bank, Scottsdale, AZ

1. Introduction
2. Press Release
3. Acquiring Financial Institution
4. Question and Answer Guide
5. Banking Services
6. Loan Customers
7. Possible Claims Against the Failed Institution
8. Priority of Claims
9. Dividend Information
10. Brokered Deposits
11. Purchase and Assumption Agreement (995 KB PDF File - PDF Help)
12. Bid Summary
13. Copper Star Bank Contact Information
14. Balance Sheet Summary

I.  Introduction

On Friday, November 12, 2010, Copper Star Bank, Scottsdale, AZ was closed by the Arizona Department 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.

II.  Press Release

The FDIC has issued a press release (PR-250-2010) about the institution's closure. If you represent a media outlet and would like information about the closure, please contact LaJuan Williams-Young at
1-202-898-3876.

III.  Acquiring Financial Institution

All deposits, excluding certain Cede & Co. deposits, have been transferred to Stearns Bank National Association, Saint Cloud, MN ("assuming institution") and will be available immediately.  The former Copper Star Bank location will reopen as a branch of Stearns Bank National Association during regular business hours.

Your transferred deposits will be separately insured from any accounts you may already have at Stearns Bank National Association for six months after the failure of Copper Star Bank. Checks that were drawn on Copper Star 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 1-800-815-0286.

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 Stearns Bank National Association as long as the deposits are not pledged as collateral for loans. You may view more information about Stearns Bank National Association by visiting their web site.

Stearns Bank National Association (www.stearnsbank.com)

V.  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 12, 2010 will be paid at your same rate.  Stearns Bank National Association 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.

VI.  Loan Customers

If you had a loan with Copper Star 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 Stearns Bank National Association, please contact your branch office. Please see A Borrower’s Guide to an FDIC Insured Bank Failure for additional information.

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. If you or your company provided a service or product, leased space, furniture, or equipment to Copper Star Bank after Friday, November 12, 2010 and have not been paid, you do not have a claim against Copper Star 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 Copper Star Bank prior to Friday, November 12, 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 Copper Star Bank prior to the bank's failure for which you have not been paid and you have not received communication, please contact:

All shares of Copper Star Bank were owned by its holding company, Star Bancorp, Scottsdale, AZ. The holding company was not included in the closing of the bank or the resulting receivership. If you are a shareholder of Star Bancorp, please do not contact or file a claim with the Receiver. You may contact Star Bancorp directly for information as follows:

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

IX.  Dividend Information

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's Processing Guide