![]() The FDIC would review the trust agreement for the purpose of determining information such as the number of beneficiaries and, if applicable, the interests of each beneficiary. In determining the insurance coverage for a deposit account opened in the name of a formal trust agreement, either revocable (commonly called a "living" or "family" trust) or an irrevocable trust, the FDIC may request the owner or trustee of the trust agreement to provide the FDIC a current copy of the trust document which the FDIC would review to confirm the applicable amount of deposit insurance coverage. What if the depositor placed money at the failed bank in the name of a trust? The timing of the completion of the deposit insurance determination is based solely on the depositor providing the documentation needed by the FDIC to determine insurance coverage. Note: Some deposits that require supplemental documentation from the depositors, such as accounts linked to a formal written trust agreement, funds placed by a fiduciary on behalf of an owner such as a deposit broker or deposits placed by an administrator of an employee benefit plan may take a little longer. It is the FDIC's goal to make deposit insurance payments within two business day of the failure of the insured institution. While every bank failure is unique, there are standard policies and procedures that the FDIC follows in making deposit insurance payments. When can I expect to receive my money?įederal law requires the FDIC to make payments of insured deposits "as soon as possible" upon the failure of an insured institution. Such payments usually begin within a few days after the bank closing. When there is no open bank acquirer for the deposits, the FDIC will pay the depositor directly by check up to the insured balance in each account. The assuming bank may also purchase loans and other assets of the failed bank.ĭeposit Payoff. Insured depositors of the failed bank immediately become depositors of the assuming bank and have access to their insured funds. This is the preferred and most common method, under which a healthy bank assumes the insured deposits of the failed bank. In the unlikely event of a bank failure, the FDIC acts quickly to protect insured depositors by arranging a sale to a healthy bank, or by paying depositors directly for their deposit accounts to the insured limit. Payment to Depositors How does the FDIC resolve a closed bank? ![]()
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