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

 SOUTHSTATE BANK FOR SAVINGS CLOSED; "YOUR MONEY IS SAFE"
 CENTRAL FUND TELLS DEPOSITORS
 BOSTON, April 24 /PRNewsire/ -- In the wake of the Commonwealth's seizure this afternoon of Southstate Bank for Savings, the fund that insures savings 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 Southstate Bank for Savings. 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 Southstate Bank for Savings customer that any deposits over $100,000 they have in the bank are fully protected. Deposits will be available without interruption at those Southstate Bank for Savings offices which re-open for business as branches of BayBank.
 "In the insurance fund's 58-year history, no depositor of a member bank has ever lost a cent when their bank has failed. Southstate Bank for Savings customers will be no different," he added.
 Southstate Bank for Savings has eight offices in the following communities: Brockton, Weymouth and Hingham.
 It is estimated that there are 202 accounts in Southstate Bank for Savings with deposits over $100,000 totalling $8.4 million. Lapidus said that the Central Fund has made a payment of $521,000 to the FDIC to facilitate the assumption of these deposits by BankBank. 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- 4/24/92
 /CONTACT: Jennifer Watson of McDermott/O'Neill, 617-261-2200, for The Mutual Savings Central Fund/ CO: The Mutual Savings Central Fund, Southstate Savings Bank ST: Massachusetts IN: FIN SU:


TM -- NE011 -- 2620 04/24/92 15:51 EDT
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Publication:PR Newswire
Date:Apr 24, 1992
Words:366
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