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.
Frequently Asked Questions
- Can a depositor leave his/her deposit with the transferee institution?
- How quickly will the Liquidator make payments on certificates?
- In the event of a deposit transfer, how will a depositor know when and where he can withdraw his funds?
- What methods of payment may the DIC use in meeting its obligations to the depositors of a failed institution?
Did You Know?
- Misconception: Placing funds in different types of deposits such as CDs, Chequing, Savings with the same member institution would increase insurance coverage. - Fact: Deposits held by the same person in the same member institution in the form of CD’s, Chequing and Savings accounts are added together and insured up to a maximum of TT$125,000.