Palonek Reminds Account Holders that there may be Unclaimed Insured Deposits frim the Failed Banks

July 19, 2011 - PRLog -- Most Americans my not realize, but when a bank or savings and loan company is closed down the Federal Deposit Insurance Corporation (FDIC) is appointed receiver of the assets of that institution.

The FDIC starts to sell all the assets of the failed bank, just like a receiver would in Bankruptcy sales. If there is any excess cash generated by the sale of the assets, after expenses and the reserves are met, then this extra cash is given out in the form of dividends to the creditors. According to Edward Palonek, founder of Foundmoney.com, a company that helps reunite people with their lost or forgotten money and was the first company on the Internet to do so, some of these dividends become unclaimed because the FDIC does not have the correct address for the unclaimed account holder.

“This is quite common for some accounts and dividend checks to remain unclaimed, since many of the account held by the failed banks have been there awhile and the account holders move around and forget to inform the bank so the dividend checks end up getting returned since that person is no longer at the address the bank once had”, says Palonek.

The FDIC acts in two capacities when the bank or saving and loan companies closure happens, which is done by the federal or state banking regulatory agency. Generally, a bank is closed when it is unable to meet its obligations to depositors and others.

The first capacity of FDIC is that of the insurer of the bank’s deposits. FDIC pays insurance to the depositors up to the insurance limit, which is $250,000 and amounts over the $250,000 threshold are not insured. In the FDIC's second capacity, it acts as the “Receiver” of the failed bank and it becomes the FDIC's responsibilities is to sell the institution's assets to pay the depositors and its creditors.

After August 10, 1993, the FDIC must distribute dividends according to the Federal Deposit Insurance Act, 12 U.S.C. s 1821(d)(11)(A) and the priorities are as follows:

1. Administrative expenses of the Receiver;
2. Any deposit liability of the institution;
3. Any other general or senior liability of the institution;
4. Any subordinated obligations;
5. Any obligations to the shareholders or members (including holding companies and their creditors).

In 2010, the FDIC reported 157 bank failures and so far this year there are 55. There are 7 closures thus far in July while April saw the most at 13.

Although the trend of Bank Closures is decreasing there will still be a great deal of unclaimed dividends and insured deposit monies that are waiting for the rightful owner of those accounts to make a claim and many Americans could use some extra cash right.

“Wouldn’t it be wonderful if you found a few thousands or just a just a few extra dollars right now to help pay down any loans, mortgages or overdraft limits ”, says Palonek.

Contact

Foundmoney at www.foundmoney.com
Edward Palonek at www.edwardpalonek.org

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Each year, 1,000's of people lose track of their bank accounts, cash, stocks, bonds, refunds, royalties, safe deposit boxes and other property. Losing sight of property can happen to anyone. Foundmoney.com helps people re-unite with their unclaimed money