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CENTRAL SAVINGS BANK CLOSED; "YOUR MONEY IS SAFE" CENTRAL FUND TELLS DEPOSITORS

 CENTRAL SAVINGS BANK CLOSED; "YOUR MONEY IS SAFE"
 CENTRAL FUND TELLS DEPOSITORS
 BOSTON, Feb. 14 /PRNewswire/ -- In the wake of the Commonwealth's seizure this afternoon of Central Savings Bank, the fund that insures bank deposits in excess of $100,000 moved quickly to assure customers that their money is protected.
 The Mutual Savings Central Fund insures all deposits in excess of the $100,000 Federal Deposit Insurance Corporation limit in Central Savings Bank. The insured amount includes accrued interest calculated through the close of business today.
 Central Fund President Leonard Lapidus said, "The Central Fund wants to assure every Central Savings Bank customer that any deposits over $100,000 they have in the bank are fully protected. Deposits will be available without interruption when former Central Savings Bank offices reopen for business on Saturday, Feb. 15, as branches of MASSBANK for Savings.
 "And because MASSBANK is also a member of the FDIC and the Central Fund, all deposits from the former Central Savings Bank will continue to be insured in full," he said.
 "In the insurance fund's 58-year history, no depositor of a member bank has ever lost a cent when their bank has failed. Central Savings Bank customers will be no different," he added.
 Central Savings Bank has seven offices in the following communities: Chelmsford, Dracut, Lowell, Tewksbury and Westford.
 It is estimated that there are 390 accounts in Central Savings Bank with deposits over $100,000 totalling $12.3 million. Lapidus said that the Central Fund has made a payment of $705,000 to the FDIC to facilitate the assumption of these deposits by MASSBANK for Savings. The payment represents the money that depositors would have lost if the excess deposits had not been insured by the Central Fund. The Central Fund's actual liability will be determined within 60 days, and the fund's payment to the FDIC will be adjusted accordingly.
 The Mutual Savings Central Fund manages the Deposit Insurance Fund (DIFM). The Central Fund is a private, industry-sponsored, mutual deposit insurance company that was created by the state legislature in 1932. All state-chartered savings banks must by law be members of the Central Fund.
 -0- 2/14/92
 /CONTACT: Jennifer Watson of McDermott/O'Neill & Associates, 617-261-2200, for Central Savings Bank/ CO; Central Savings Bank; MASSBANK ST: Massachusetts IN: FIN SU: BCY


TM-SH -- NE007 -- 0320 02/14/92 15:43 EST
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Publication:PR Newswire
Date:Feb 14, 1992
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