Failed Bank Report: Claim FDIC Insured Deposits at Failed Banks

Douglass Bank - Kansas City, MO

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Missouri Unclaimed Property

January 25, 2008: Douglass National Bank, Kansas City, MO was closed by the Office of the Comptroller of the Currency. The Federal Deposit Insurance Corporation (FDIC) was named Receiver.  

Douglass National had $58.5 million in assets and $53.8 million in total deposits as of October 22, 2007.

All deposit accounts have been transferred to Liberty Bank and Trust Company, New Orleans, LA. Normal office hours resumed Monday, January 28, 2008 at the three former Douglass National Bank locations. Depositors of Douglass National will automatically become depositors of the Liberty Bank and Trust. Transferred deposits will be separately insured from any accounts you may already have at Liberty Bank and Trust for six months after the failure of Douglass National.

Liberty Bank and Trust Company
6600 Plaza Drive, Suite 600
New Orleans, LA 70127

In addition to assuming all of the deposits of the failed bank, Liberty Bank and Trust will purchase approximately $55.7 million of Douglass National's assets at book value, less a discount of $6.1 million. The FDIC will retain approximately $2.8 million in assets for later disposition.

The FDIC estimates that the cost to its Deposit Insurance Fund is approximately $5.6 million.

For additional information and assistance contact the FDIC at: 888-206-4662 or go to:

2008 FDIC Insured Failed Banks
Douglass National Bank
1670 East 63rd Street
Kansas City, MO 64110

Established in 1947 as
The Douglass State Bank
Assets: $58.5 million
Deposits: $53.8 million
Cost to FDIC: $5.6 million

Insured Deposits: 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 1-913-321-7200.

Checks: Checks that were drawn on Douglass National Bank that did not clear before the institution closed will be honored as long as there are sufficient funds in the account. Checks will be processed as usual. All outstanding checks will be paid against your available insured balances as if no change had occurred. Liberty Bank and Trust Company 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 Liberty Bank and Trust Company, Customer Service Department, at 913-321-7200.

Interest: After January 25, 2008, your account will earn interest at a rate determined by Liberty Bank and Trust Company. You will be notified by letter regarding this matter.

Automatic Deposits: Your automatic direct deposits and/or automatic withdrawals should be transferred automatically to your assuming institution. You should contact your assuming institution, however, to discuss your account and to insure that service is not delayed or discontinued.

Services: You may continue to use the services to which you previously had access, such as automatic teller machines, safe deposit boxes, night deposit boxes, wire services, etc.

Withdrawals: You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with Liberty Bank and Trust Company (as long as the deposits are not pledged as collateral for loans.) 

Loans: If you had a loan with Douglass National 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.

Creditor Claims: If you provided a service for Douglass National Bank and have not received a notice, please contact:

Federal Deposit Insurance Corporation
Receiver: Douglass National Bank
Attention: Claims Department, DRR
1601 Bryan Street
Dallas, Texas  75201
Call toll free 1-888-206-4662

Dividends Paid: February 1, 2008 (79.037%) and June 17, 2008 (4.007%). Total: 83.044%

Consumer Alert

Unclaimed FDIC Insured Deposits

Note: There are time limits on claims of FDIC-insured bank accounts, CDs and safe deposit boxes ...

If an insured depositor fails to make a claim an insured or transferred deposit within 18 months after the FDIC initiates the payment of insured deposits, the transferee institution must refund the deposit to the FDIC, and all rights of the depositor against the transferee institution are barred.

The FDIC then remits the insured deposit to the custody of the unclaimed property administrator in the account owner's home state, unless that state declines to accept custody. Upon delivery, the FDIC is deemed to have made payment to the depositor, and all rights of the depositor against the FDIC are barred.

Most states allow claims in perpetuity, but there's a reversion clause. If a depositor does not claim the deposit delivered to the custody of the State within 10 years of the date of delivery, the deposit must then immediately be refunded to FDIC, and all rights of the depositor against the state are barred.

It's important to note that If a state declines to accept custody of the deposit - which they sometimes do - the depositor must claim the funds from the FDIC before the receivership is terminated, or all rights of the depositor with respect to the deposit are barred. Dividends for credits arising from uninsured portions of a deposit may, however, be claimed after the receivership is terminated if a dividend check was returned by the post office for a bad address.

Be aware that due to the number of mergers and acquisitions in the banking industry over the years, it is possible you or a deceased family member might well have an account at a failed bank and not know it. Additionally, unclaimed safe deposit boxes at closed branches may be drilled and the contents sold at auction just weeks after closing, so prompt action is advised.  For assistance go to: Unclaimed Account Search

History: Established in 1947 as The Douglass State Bank
 1983 Merged with government financial assistance and subsequently operated as part of The Douglass Bank
1991 Maintained operations with government open bank assistance.
1996 Changed name to Douglass National Bank
2008 Merged with government financial assistance and subsequently operated as part of Liberty Bank and Trust Company