I. Introduction
On October 10, 2008, Main Street Bank, located in Northville, Michigan, was closed by the Michigan Office of Financial & Insurance Services. The Federal Deposit Insurance Corporation (FDIC) was appointed as Receiver. It’s important to note that bank closures are not publicly announced in advance.
The FDIC is providing essential information to help you understand your relationship with Main Street Bank. You may have various accounts and services with the bank, such as checking accounts, Certificates of Deposit, loans (car, business, commercial), Social Security direct deposits, and more. The FDIC has compiled the following details to address many of the questions you might have regarding the Main Street Bank closure.
II. Official Press Release
The FDIC issued a press release (PR-98-2008) concerning the closure of Main Street Bank. For media inquiries regarding this event, please reach out to LaJuan Williams-Young at 202-898-3876 or David Barr at 202-898-6992. This press release provides official details about the Main Street Bank situation.
III. Monroe Bank & Trust Assumes Deposits
All deposit accounts from Main Street Bank have been securely transferred to Monroe Bank & Trust, based in Monroe, Michigan (“assuming institution”). These transferred accounts became available immediately following the transfer. Former Main Street Bank branches reopened as branches of Monroe Bank & Trust on Saturday after the closure.
For six months following the failure of Main Street Bank, your deposits transferred to Monroe Bank & Trust will be separately insured from any existing accounts you might already hold at Monroe Bank & Trust. Checks drawn on Main Street Bank that hadn’t cleared before its closure will still be honored, provided sufficient funds are available in the account. If you have specific inquiries about your accounts transferred from Main Street Bank to Monroe Bank & Trust, FDIC representatives are available at 1-866-934-8944 to answer your deposit insurance questions.
For general questions about FDIC deposit insurance coverage, please call 1-877-275-3342 or visit EDIE, the FDIC’s Electronic Deposit Insurance Estimator, available online: EDIE – FDIC’s Electronic Deposit Insurance Estimator.
You can withdraw funds from any transferred account without incurring early withdrawal penalties until you establish a new deposit agreement with Monroe Bank & Trust, as long as the deposits are not pledged as loan collateral. Further information about Monroe Bank & Trust can be found on their website.
IV. Claim Priority Explained
Federal law dictates the order in which allowed claims are paid following the closure of a financial institution. After administrative expenses are covered, the priority of claims for Main Street Bank is as follows:
- Depositors – Customers with deposits in Main Street Bank are given first priority.
- General Unsecured Creditors
- Subordinated Debt Holders
- Stockholders – Investors holding stock in Main Street Bank are in the lowest priority tier.
V. Dividend History
Dividend History for Main Street Bank
General Dividend Information on Failed Financial Institutions
VI. Receivership Termination
The FDIC, acting as Receiver for Main Street Bank, has completed all necessary actions to conclude the Receivership Estate.
A legal notice regarding the intent to terminate the receivership of Main Street Bank was published on February 17, 2013.
All dividend distributions mandated by law have been made by the Receiver.
As of August 1, 2013, the Receivership Estate for Main Street Bank was officially terminated. The Receiver was discharged, and the Receivership Estate ceased to exist as a legal entity.
