EDITOR NOTE: Here it is, as we’ve been warning. Should BMO Harris undergo a bank failure, your funds may be FDIC insured, but the release of your funds will be subject to certain requirements, forcing you to jump through a few regulatory hoops, in order to “unfreeze” your money. Ultimately, the FDIC decides when you are “allowed” to access your money. Wait...isn’t this “your” money, to which you have every right of access, at any time, and at any amount? Or, as a depositor, have you forfeited a part of your access, and effectively, a portion of your “ownership”?
Important Notice and Change in Terms To BMO Harris Deposits, specifically:
You agree to cooperate fully with us and the FDIC in connection with determining the insured status of funds in such Accounts at any time. In the event the Bank fails and the FDIC is appointed as its receiver, you agree to provide the FDIC with the information described above in the required format within 24 hours of Bank failure for all Accounts with transactional features and any other Accounts to which you need rapid access. As soon as the FDIC is appointed, a hold or freeze may be placed on your Account so that the FDIC can conduct the deposit insurance determination. That hold or freeze will not be released until the FDIC obtains the information required to enable the FDIC to calculate the deposit insurance. You understand and agree that your failure to provide the required information to the FDIC may result in a delay in receipt of insured funds by the beneficial owner(s) and legal claims against you from the beneficial owner(s). This Agreement survives after the FDIC is appointed as our receiver, and as a result, the FDIC shall be entitled to enforce the terms of this section. By keeping your Account(s) open after December 1, 2020 you will have agreed to these amendments.
Originally posted on BMO Harris