CHICAGO -- A now-defunct Colorado bank on Tuesday returned $45.2 million to the Iowa Trust after failing in its efforts to appeal a U.S. District Court decision ordering the bank to surrender the funds.

The bank, Jefferson Bank & Trust of Lakewood, Colo., was shut down by state regulators last Friday because the amount owed the Iowa Trust was far more than the bank's $9 million in capital. The bank's $118 million in assets and $109.4 million in deposits were sold to another Colorado institution.

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