Interest will be paid on an account up to the date of closure of an institution, even if the maturity date of the account is beyond the date of closure.

No. The main office and all branches are considered to be one institution. Therefore, the accounts would be added together and insured up to the $200,000 maximum. However, separately constituted subsidiaries or associated companies are recognised as distinct legal entities for deposit insurance purposes.

If, for example, a depositor has a total claim of $205,000 he or she would, if the claim is approved, be paid $200,000. The depositor will be issued with a Liquidator’s Certificate by the DIC for the remaining $5,000.

The Liquidator’s Certificate is a document issued by the DIC to depositors of a closed institution whose claim for deposit insurance payment exceeds the deposit insurance coverage limit.

This Liquidator’s Certificate should then be presented to the Liquidator by the depositor who will be eligible to receive pro rata payment out of the assets of the institution, as and when they are realized or disposed of, in accordance with the laws of distribution in a liquidation.

No. Deposit insurance is not increased merely by dividing funds held in the same right and capacity or ownership category (Single, Joint, Irrevocable Express Trust Accounts) among the different types of deposits available.

For example, chequing and savings accounts held by the same depositor in the same right and capacity or ownership category are added together and insured up to a maximum of TT$200,000.

The DIC determines from the records of the institution how much a depositor should be paid, based on the principal balance on account with the institution, along with interest accrued up to the date of the institution’s closure. If this amount is not what the depositor expects to receive, the depositor must then provide proof to the DIC to substantiate his or her claim.

Those cheques will not be paid or charged against the account because the action by the Central Bank to suspend the operations of the institutions will cause all accounts to be frozen at the date of suspension. Such cheques will be returned and usually will be marked “drawee bank closed”, or “refer to drawer”. This should not therefore reflect on the credit standing of the institution’s depositor. However, it is the depositor’s responsibility to make funds available to creditors who received cheques that were returned and did not clear through the depositor’s account because of the suspension of the institution.

The DIC will balance the institution’s books and credit interest earned on all accounts up to the date of closure. DIC officials will determine how much is owed to each depositor. A list of all deposits will be prepared. From this list, the following will be identified for further examination:

1. depositors who have loans, overdrafts for deposits pledged as collateral, etc.
2. depositors who have funds in excess of the insured limit.

hereafter, upon submission of a valid claim which is verified and approved, each eligible depositor will be paid up to a maximum of TT$200,000.