Failed Bank Report: Claim FDIC Insured Deposits at Failed Banks

MagnetBank - Salt Lake City, UT

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January 30, 2009: MagnetBank, Salt Lake City, UT was closed by the Utah Department of Financial Institutions. The FDIC was named Receiver.

As of December 2, 2008, MagnetBank had assets of $292.9 million and deposits of $282.8 million.

There was no assuming institution. On January 30, 2009, all accounts were closed and CDs terminated (you will not be assessed an early withdrawal penalty). Customers no longer have access to the bank's website and online services.

Principal and interest on insured accounts through January 30, 2009, are fully insured by the FDIC, up to the insurance limit of $250,000. You will receive full payment for your insured account. Certain entitlements and different types of accounts can be insured for more than the $250,000 limit. IRA funds are insured separately from other types of accounts, up to a $250,000 limit.

Checks to retail depositors for insured funds were mailed on February 2nd. Brokered deposits will be wired once brokers provide the FDIC with the necessary documents to determine if any clients exceed insurance limits. Customers who placed money with brokers should contact them directly for more information about the status of their funds.

All interest bearing accounts that exceed the $250,000 insurance limit, and/or all interest bearing accounts that appear to be related and exceed this limit, are reviewed by the FDIC to determine their ownership and insurance coverage. If you think you might have uninsured deposits you should call the FDIC Call Center to arrange for a telephone interview with a Claims Agent at 1-800-822-0412.

If it is determined that you have uninsured funds, the FDIC will mail you a Receiver Certificate. This certificate entitles you to share proportionately in any funds recovered through the disposal of the assets of MagnetBank. 

If you had a loan with MagnetBank, you should continue to make payments, the terms will not change. Checks should be made payable to "FDIC as Receiver for MagnetBank" and sent to:

FDIC as Receiver for MagnetBank
2825 E. Cottonwood Parkway, Suite 180
Salt Lake City, UT 84121

For additional information and assistance contact the FDIC at: 1-800-822-0412; or go to:

2009 FDIC Insured Failed Banks
2825 East Cottonwood Parkway
Suite 180
Salt Lake City, UT 84121

Established on 9/29/2005 as

Assets: $293 million
Deposits: $283 million
Cost to FDIC: ???



Creditor Claims: 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. If you provided a service for  MagnetBank and have not received a notice, please contact:

Federal Deposit Insurance Corporation
Receiver: MagnetBank
Attention: Claims Department, DRR
1601 Bryan Street
Dallas, Texas  75201
Call toll free 1-800-568-9161

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 9/29/2005 as MagnetBank