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Bank Failures

Question and Answer Guide

Community Bank of West Georgia, Villa Rica, GA

FDIC Call Center
Toll free number 1-866-954-9530
Hours of Operation – Eastern Time
Friday, June 26, 2009: Until 9:00 p.m.
Saturday, June 27, 2009: 9:00 a.m. – 6:00 p.m.
Sunday, June 28, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.

Is My Account Fully Insured? (https://closedbanks.fdic.gov/aii/)

Electronic Deposit Insurance Estimator   (www.edie.fdic.gov)

The Community Bank of West Georgia, Villa Rica, GA, was closed Friday, June 26, 2009 at 5:30 p.m. by the Georgia Department of Banking and Finance. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver.

Efforts to locate an assuming bank were not successful. Therefore, on Monday June 29, 2009, the FDIC will mail checks to retail depositors for the amount of their respective insured deposit. Your check will be mailed to your address on record with Community Bank of West Georgia. You should receive this check within one week of the closing. The checks are drawn on the Federal Home Loan Bank of New York.

The following answers are provided to the most commonly asked questions by customers of the failed bank. If the balance in your interest bearing account(s) (this includes any accounts in which you have an ownership) is less than $250,000, or if your deposit is in a noninterest-bearing transaction account(s), no action is required on your part at this time.

DEPOSIT QUESTIONS

  1. Over $250,000: What if I have more than $250,000 in my accounts at Community Bank of West Georgia?
  2. Account Hold: I have been advised there is a hold on my account. What does that mean?
  3. Account Insurance Status: Is my account fully insured? Is there a method to verify whether my account(s) at Community Bank of West Georgia are fully insured?
  4. ATM/Debit Card/Checks: Can I continue to write checks or use my ATM/Debit card?
  5. Automatic Payments/Online Billpay: Will my automatic payments through Billpay continue?
  6. Brokered Deposits/Deposit Broker: I am a deposit broker or I have brokered deposits. What do I need to do?
  7. Checks not honored: A merchant will not honor my check. What can I do?
  8. Claim Account(s): How do I claim my account(s)?
  9. Customer Impact: How does this failure affect me?
  10. Direct Deposits, Social Security: What will happen to my direct deposits?
  11. Early withdrawal penalty: Will I incur an early withdrawal penalty if I close my CD before maturity?
  12. Final Statement: When will I get my final account statement(s) from Community Bank of West Georgia?
  13. Interest: Will I continue to earn interest at the same rate?
  14. Interest Checks/Cashier's Checks: Can I cash my interest check or cashier's check?
  15. Internet Connection: Will my Internet connection to Community Bank of West Georgia work?
  16. IRAs: What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?
  17. Lose Any Money: Will I lose anything on my deposit account?
  18. Outstanding Checks: What will happen to the checks that have not cleared my account?
  19. Records/Account Histories: What if I need information regarding my account during the time Community Bank of West Georgia was in business?
  20. Tax Reporting - 1098/1099s: Who will send my 1098 and/or 1099 information after the end of the year?
  21. Uninsured: Will I collect my uninsured deposits?
  22. Wire Transfer: Can funds be wired to me?

LOAN QUESTIONS

  1. Automatic Payments: Will my automatic payment still occur on its assigned date?
  2. Construction Loan Draws: Will construction draws continue? Will my project be completed?
  3. Construction Loan Voucher Control: Will my subcontractors be paid as before?
  4. Escrows: Will you continue to pay my escrows?
  5. Fees: Are there any changes to fees or charges due to this event?
  6. Foreclosures: Will the FDIC continue foreclosures in process?
  7. Lender and contact names: Who is my lender and has my loan contact changed?
  8. Loan Sales: Will my loan be sold?
  9. Line of Credit Advances – Home Equity: Can I continue to perform advances on my line of credit?
  10. Loan in Process: I have a loan currently in process. How is my loan impacted?
  11. Loan Sweeps: Will my loan sweep continue?
  12. Overdraft Line of Credit: Will my overdraft line of credit continue to cover my overdrafts?
  13. Payments: How and where do I make my payments?
  14. Pre-payment Penalty: If I refinance with another lender, will my pre-payment penalty be waived?
  15. SBA Application in Process: What will happen to my SBA loan application in process?
  16. What Happens Now: What will happen to my loan?
  17. Offers to Purchase Other Real Estate: I was in the process of negotiating the purchase of real property held by Community Bank of West Georgia. Will my offer still be considered?

GENERAL QUESTIONS

  1. All-Deposit Transfer versus Insured Deposit Transfer: Why do all deposits, insured or not, pass is some transactions but not in others?
  2. FDIC Insurance: How can I find out more about Federal Deposit Insurance rules?
  3. Media: I represent a TV/Newspaper/Radio and would like some information.
  4. Safe Deposit Boxes: How can I claim the contents of my safe deposit box?
  5. Shareholders: I am a shareholder. What happens to my shares?
  6. Unpaid Bill: I did some work for Community Bank of West Georgia and have not yet been paid. What should I do?
  7. What happened? Why did the bank fail?


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1. What if I have more than $250,000 in my accounts at Community Bank of West Georgia?

If you have more than $250,000 in your interest-bearing account, or if the total of your related interest-bearing accounts exceeds $250,000, your accounts may require review by an FDIC Claims Agent. You should call the FDIC at 1-866-954-9530 to schedule a telephone appointment with an FDIC Claims Agent.

If you have an interest-bearing account or group of interest-bearing accounts that exceeds $250,000, you may need to complete certain declarations or affidavits and provide documentation so that the FDIC can make an insurance determination on your account(s).

If you are an investor with a deposit broker, you may need to complete one of these forms only if your investment exceeds $250,000. However, you must mail your form to your deposit broker for submission to the FDIC.

If your deposits DO NOT exceed $250,000, or if your deposits are in a noninterest-bearing transaction account(s), you DO NOT need to complete these documents or contact the FDIC.

An account hold may be placed on an account due to the need for additional documentation from a depositor. For example, a Declaration for Trust form may be required to attest to the parties involved in a trust. These forms can be mailed to you, or you can access them online at: Deposit Claims (www.fdic.gov/regulations/laws/forms/#DepositClaims)

If you have a question regarding the completion of required affidavits or declarations, please call 1-866-954-9530 and indicate you have a form completion question.

Additionally, FDIC claims agents will be available at the Villa Rica and Kennesaw offices of the bank, between the hours of 8:00 a.m. to 5:00 p.m., beginning Monday June 29, 2009 to assist in completing the required affidavits or declarations.


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2. I have been advised there is a hold on my account. What does that mean?

It is possible a depositor's account was held due to delinquent loans where the depositor is the borrower or guarantor. Additionally, any account pledged as collateral for a loan will continue to be held. A letter will be sent informing you of any holds placed by the FDIC, along with instructions on how to proceed. If you have any questions regarding these holds, please call your loan officer or the FDIC at the number provided in the letter.

Another reason an account hold may be placed is due to the need for additional documentation from a depositor. For example, a Declaration for Trust form may be required to attest to the parties involved in the trust. Please contact the FDIC at 1-866-954-9530 to schedule a telephone appointment.


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3. Is my account fully insured? Is there a method to verify whether my account(s) at Community Bank of West Georgia are fully insured?

A tool is available that provides failed bank customers the ability to verify whether their account is fully insured or if they need to contact the FDIC. The link to specific contact information is https://closedbanks.fdic.gov/aii/.  This service will be available for use no later than the first business day after the bank's failure.  Once you enter your account number, your insurance status for that account will appear.  If there is a hold on your account, it may be due to the need for the additional documentation referenced in question number one. If there is a hold, you will need to contact the FDIC at 1-866-954-9530 to schedule a telephone appointment.


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4. Can I continue to write checks or use my ATM/Debit card?

No. All accounts have been closed. You will receive a check from the FDIC within one week of the closing.


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5 Will my automatic payments through Billpay continue?

No. All accounts have been closed; therefore, you should contact your creditors to make other arrangements.


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6. I am a deposit broker or I have brokered deposits. What do I need to do?

Brokered deposits will be held and paid directly by the FDIC.

If you are a customer who has a Community Bank of West Georgia deposit through a broker, you must contact your broker with any questions.


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7. A merchant will not honor my check. What can I do?

All checks will be returned and stamped "Bank Closed." This document is a letter (www.fdic.gov/bank/individual/failed/communityga_return_checks_letter.html) you can provide to your creditors explaining that checks were returned through no fault of your own due to the bank closing, and this is no reflection on you.


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8. How do I claim my account(s)?

You will receive a check from the FDIC within one week of the closing. Please be advised that this money will be turned over to your state as unclaimed property if this check is not cashed within 18 months. Unclaimed property can be located by visiting www.missingmoney.com or contacting your state treasurer’s office or office of unclaimed property.


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9. How does this failure affect me?

All accounts have been closed, and you will receive a check from the FDIC within one week of the closing. If you had a loan with Community Bank of West Georgia, please continue to make your payments to the same address as you have in the past until you are instructed otherwise. Continue to make your checks payable to Community Bank of West Georgia.


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10. What will happen to my direct deposits?

Federal Government Direct Deposits (only)

The FDIC has arranged for all Federal Government direct deposits, including Social Security checks, to be redirected to the Villa Rica branch office of United Community Bank, headquartered in Blairsville, GA. The branch is located at 485 W. Bankhead Highway, Villa Rica, GA. Customers will need to go in person and present proper identification to the customer service representative at the Villa Rica branch of United Community Bank to claim their incoming Federal Government direct deposits. Please remember these ACH deposits will be processed at the same time they have been processed in the past.

You may contact Karen Camp at United Community Bank by calling 1-770-459-3100 if you have questions. In addition, please be aware United Community Bank will provide this service for 60 days, which will allow you adequate time to establish an account, if necessary, with another financial institution and redirect your Federal Government direct deposit to that account.

Non-Federal Government Direct Deposits

For all other direct deposits (that is, direct deposits that are not issued by a Federal Government entity) will be returned to the sender. Customers who have non-Federal Government direct deposits should contact the issuer to redirect the funds to an account you have established at another financial institution.


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11. Will I incur an early withdrawal penalty if I close my CD before maturity?

Your CD will automatically be closed, and you will receive a check from the FDIC within one week of the closing. You will NOT be assessed an early withdrawal penalty.


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12. When will I get my final account statement(s) from Community Bank of West Georgia?

You will receive a final statement within one week of the closing.


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13. Will I continue to earn interest at the same rate?

All interest on insured deposits accrued through Friday, June 26, 2009, will be paid at your same rate. This will be included in the check you will receive from the FDIC within one week of the closing.


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14. Can I cash my interest check or cashier's check?

No, these checks will not clear; however, you will receive payment from the FDIC as any outstanding checks will be added back to any of your account balances. This is because Official Checks (those issued by institutions – for example, Cashier's Checks, Certified Checks, Money Orders) meet the definition of noninterest-bearing transaction accounts. Under the Temporary Liquidity Guarantee Program, noninterest-bearing transaction accounts are fully insured.


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15. Will my Internet connection to Community Bank of West Georgia work?

All accounts have been closed, and you will no longer have access to the website.


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16. What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?

From the date a check is issued to you for your IRA, you have 60 days to roll this over into another retirement vehicle. You should consult IRS Publication 590 and/or your tax advisor concerning the possible tax consequences of such distribution. This publication specifically addresses this situation; therefore, you should review it carefully. IRS Publication 590 may be obtained by contacting your local IRS office or via the Internet at www.irs.gov.

IRA funds are insured separately from other types of accounts up to $250,000. A check for the amount of your insured IRA deposit will be mailed to your address on record with the bank on Monday, June 29, 2009.


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17. Will I lose anything on my deposit account?

Principal and interest on insured accounts, through Friday, June 26, 2009, are protected by the FDIC, to at least $250,000. All transferred accounts are insured to at least $250,000. Certain entitlements and different types of accounts can be insured in excess of the $250,000.

If you have more than $250,000 in your interest bearing account (or $250,000 in your IRA), or if the total of your related interest bearing accounts exceeds $250,000, your accounts may require review by an FDIC Claims Agent. All accounts that appear to be related are reviewed to determine ownership and insurance coverage. See the response to question number one for information regarding forms you may need to complete to expedite this process.


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18. What will happen to the checks that have not cleared my account?

Checks that were drawn on Community Bank of West Georgia that did not clear before the institution closed will be returned indicating "Bank Closed." This document is a letter (www.fdic.gov/bank/individual/failed/communityga_return_checks_letter.html) you can provide to your creditors explaining the bank was closed, and checks have been returned through no fault of your own. You should contact your vendors as soon as possible.


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19. What if I need information regarding my account during the time Community Bank of West Georgia was in business?

Please contact the FDIC at 1-888-206-4662 to request a copy of your records.


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20. Who will send my 1098 and/or 1099 information after the end of the year?

The FDIC will be responsible for mailing your 1099 tax information. Your 1098 reporting will be done by the FDIC or the servicer of your loan. You will be notified of any changes in ownership or servicing of your loan.


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21. Will I collect my uninsured deposits?

If you have a loan in the same name as your uninsured deposit account, it may be possible to offset your uninsured amount against your loan. You should discuss this with your Claims Agent during your appointment.

If it is determined that you have some uninsured funds, the FDIC will mail you a Receivership Certificate. This certificate entitles you to share proportionately in any funds recovered through the sale of the assets of Community Bank of West Georgia. You may eventually recover more of your uninsured funds as assets are liquidated.

When a financial institution is closed, and the Federal Deposit Insurance Corporation ("FDIC") is appointed as receiver, one of FDIC's responsibilities is to sell the institution's assets to pay the depositors and its creditors. The money generated by the sale of these assets will flow through the Receivership, and periodic dividend payments will be made to proven claimants when excess cash is available. For an explanation of the dividend process, go to FDIC Dividends from Failed Banks (https://closedbanks.fdic.gov/dividends/).

Of course, you will receive immediate full payment for your insured amount by check directly from the FDIC.

If you have a deposit through a broker, your insured funds will be wired to your broker on your behalf once the FDIC receives all required documentation from your broker.


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22. Can funds be wired to me?

No, regretfully, we cannot wire funds to individual depositors.


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23. Will my automatic payment still occur on its assigned date?

No. All accounts have been closed. You should contact your loan officer to make other arrangements for your loan payments at at 1-770-456-9922, extension 129.


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24. Will construction draws continue? Will my project be completed?

Each loan is being reviewed independently and will be determined on a case-by-case basis. You should direct your questions to your loan officer at 1-770-456-9922, extension 129.


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25. Will my subcontractors be paid as before?

Each loan is being reviewed independently and will be determined on a case-by-case basis. You should direct your questions to your loan officer at 1-770-456-9922, extension 129.


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26. Will you continue to pay my escrows?

All services previously performed related to your loan will continue. Should you receive notification that any portion of your taxes or insurance were not paid, please notify your loan officer immediately at 1-770-456-9922, extension 129.


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27. Are there any changes to fees or charges due to this event?

No. The current fee structure will remain the same.


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28. Will the FDIC continue foreclosures in process?

At this point, all foreclosure actions have been suspended in order to properly evaluate the loans and the borrower's ability to repay. It is our intention to sell all loans, and it will be up to the new owner to determine the best method of collection on the loan. There may be instances where FDIC will continue with the foreclosure process, but this will be done on a case-by-case basis.


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29. Who is my lender and has my loan contact changed?

Your loan is currently owned by the FDIC and is being serviced by all of the same personnel with whom you have worked in the past. All prior contacts remain the same.


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30. Will my loan be sold?

Your loan may be sold at a future undetermined date. If that occurs, you will be notified in advance through written correspondence. If you are concerned about whom your future lender or servicer will be, you have the right to independently refinance your loan with another lender.


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31. Can I continue to perform advances on my line of credit?

No. All lines of credit, including Home Equity Lines of Credit (HELOCs), have been suspended. You should contact another financial institution to discuss establishing a borrowing relationship.


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32. I have a loan currently in process. How is my loan impacted?

Please contact your loan officer directly at 1-770-456-9922, extension 129.


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33. Will my loan sweep continue?

Loan sweep account options will no longer be available. Please contact your loan officer at 1-770-456-9922, extension 129.


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34. Will my overdraft line of credit continue to cover my overdrafts?

No. All accounts have been closed.


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35. How and where do I make my payments?

You should continue to make your payments as agreed. Make checks payable to Community Bank of West Georgia and utilize the same payment address information.


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36. If I refinance with another lender, will my pre-payment penalty be waived?

Any pre-payment penalty will be waived as long as FDIC as Receiver for Community Bank of West Georgia has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.


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37. What will happen to my SBA loan application in process?

The FDIC as Receiver for Community Bank of West Georgia will not be originating any new loans.

If your loan has been approved by the SBA, but is not yet funded, please contact your loan officer. You will be directed to the proper SBA contact to help you locate another approved lender.

If your loan is in process, but is not yet approved by the SBA, we will release your SBA package on file with us to you. You will need to apply with another SBA-approved lender. Please contact your loan officer to make arrangements to retrieve your application from the bank at 1-770-456-9922, extension 129..


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38. What will happen to my loan?

Each loan is currently being reviewed independently to determine the best action for that individual loan. Your loan may be sold at a future undetermined date. If that occurs, you will be notified in advance through written correspondence. If you are concerned about whom your future lender or servicer may be, you have the right to independently refinance your loan with another lender.


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39. I was in the process of negotiating the purchase of real property held by Community Bank of West Georgia. Will my offer still be considered?

The FDIC will review offers made to purchase real property from the former Community Bank of West Georgia and will respond to the offers as soon as possible. The review process includes ordering a new appraisal, which could take up to 60 days or more.

The FDIC, as Receiver has hired Prescient, Inc., to handle the management and disposition of real property acquired from the Institution. If you have questions regarding the status of your offer please feel free to contact Prescient directly. Below is the contact information for Prescient:

Robert Snyder
Prescient Asset Management
2600 Douglas Rd Suite 800
Coral Gables, FL 33134
1-786-342-7880


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40. Why do all deposits, insured or not, pass is some transactions but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction. The FDIC is only able to transfer all deposits if the uninsured amounts are covered by the premium. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.

When a buyer cannot be found for a failed bank, the FDIC honors its obligation to insured depositors by mailing an insurance check.


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41. How can I find out more about Federal Deposit Insurance rules?

You may access our website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator (EDIE):

You may also order any FDIC publication:

FDIC Public Information Center
3501 North Fairfax Drive
Room E-1002
Arlington, VA 22226

1-703-562-2200 Phone
1-703-562-2296 Fax
publicinfo@fdic.gov


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42. I represent a TV/Newspaper/Radio and would like some information.

Please contact the Office of Public Affairs:

David Barr
202-898-6992
dbarr@fdic.gov


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43. How can I claim the contents of my safe deposit box?

Please call the FDIC at 1-866-954-9530 to schedule an appointment to clear the contents of your safe deposit box. For customer convenience, In addition to scheduling a weekday appointment beginning June 29, 2009, you can call to schedule an appointment for Saturday, June 27th or Sunday, June 28th to come to the bank to retrieve the contents in your safe deposit box.

NOTE: In observance of the holiday, the bank's lobby will be closed from Friday July 3rd through Sunday, July 5th. The bank's lobby will reopen for safe deposit box access on Monday, July 6th, 2009.

Please be advised if you do not clear your safe deposit box before August 31, 2009, the box will be drilled under dual control. The contents will be escheated to your state as unclaimed property in accordance with state law. You will receive a letter at the address listed on the bank’s records prior to your box being drilled. Unclaimed property can be located by visiting www.missingmoney.com or contacting your state treasurer's office or office of unclaimed property.


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44. I am a shareholder. What happens to my shares?

The Community Bank of West Georgia had no publicly owned stock. Equity shareholders were invested in the holding company, Community Bancshares of West Georgia, Inc., Villa Rica, GA, and not in the bank. Please do not file a claim with the Receiver. Instead contact the holding company with any questions you may have:

Jeffrey W. Kelley, Esq.
Troutman Sander, LLP
600 Peachtree Street, NE
Suite 5200
Atlanta, GA 30308

(404) 885-3000 - Office
(404) 885-3383 – Direct
(77) 329-6509 - Mobile
(404) 962-6847 - Fax
jeffreykelley@troutmansanders.com


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45. I did some work for Community Bank of West Georgia and have not yet been paid. What should I do?

Please send your bills to the following address:

FDIC as Receiver for Community Bank of West Georgia
1601 Bryan Street
Dallas, TX 75201


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46. Why did the bank fail?

Community Bank of West Georgia, Villa Rica, GA, was closed Friday, June 26, 2009, by the Georgia Department of Banking and Finance. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. Share price does not trigger a bank closing and was not the reason for this failure. According to regulatory policy, there is no advance notice given to the public. Please see the Georgia Department of Banking and Finance's press release for more information.

The good news is that no one lost any insured deposits as a result of the closure of Community Bank of West Georgia. An assuming bank could not be located; therefore, the FDIC will fulfill its obligation to insured depositors by mailing checks for their insured amount(s). These checks should be received within one week of the closing.


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SCAMS: Be watchful for and resistant to any scams to obtain information from you by individuals or entities stating that they are acting on behalf of either the failed bank, new bank, or the FDIC. Should you be contacted by anyone requesting personal information from you related to this event, please contact the call center above and you will be directed to the appropriate person.

For more information: www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/communityga.html


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Last Updated: November 29, 2023