PAYMENTS FOR FORMER FIRST EXCHANGE LOANS WILL GO TO CALIFORNIA

Some loan customers of the former Exchange Bank of Cape Girardeau are receiving letters from the Federal Deposit Insurance Corporation (FDIC), informing them that future mortgage payments should be made to ITT Bowest in San Diego, Calif.

"This transfer of servicing does not affect any terms or conditions of the note and mortgage/deed of trust," notes the letter, which was signed by Jeffrey A. Peterson, Liquidator-In-Charge of the failed bank which has been purchased by Commerce Bank of Poplar Bluff. The letter added that "ITT Bowest is a mortgage service company and is servicing accounts for the FDIC.

Most loans at First Exchange Bank were not transferred in the Commerce Bank acquisition, but were retained by the FDIC.

The first Exchange Bank of Cape Girardeau, 160 S. Broadview, was one of five First Exchange Corp. banks which were declared insolvent May 7, and were closed by Earl L. Manning, Missouri Commissioner of Finance. Manning appointed the FDIC as liquidating agent of the banks which sold all insured deposits of the five bank.

Commerce Bank assumed the insured deposits for the failed First Exchange Bank and opened for business May 8. Deposits of the two St. Louis Exchange banks were sold to Magna Bank and First Banks Inc., respectively. Jackson Exchange was acquired by Boatmen's Bank of Cape Girardeau and Madison County Exchange Bank was acquired by Commerce Bank of Farmington.

The California firm will begin accepting payments June 1.

Checks should be made to ITT Bowest Corporation, Peterson said in the letter. Payments should be mailed to ITT Bowest Corporation, P. O. Box 85843, San Diego, Calif., 92186-5843. Any payments received at the former Exchange Bank during the transfer period will be forwarded to ITT Bowest.

"Present payment coupons will be accepted until new coupons can be issued by Bowest," said a spokesman of that firm. "Anyone with questions concerning the transfer of their loan servicing may contact the customer relations department of ITT Bowest."

Free calls are available to ITT Bowest from 7 a.m. to 5 p.m., Pacific Standard Time, by calling 1-800-854-7011, extension 7601.