CARLISLE, IOWA - Iowa banks and thrifts will have to cover a big chunk of the nearly $12 million in uninsured deposits of local schools and governments held by Hartford-Carlisle Savings Bank, which regulators shut down Friday.

A 1930s Iowa program called the "sinking fund" guarantees that state and local government treasurers will get back every dime of the $11.7 million they deposited at the $114 million-asset bank, which was closed Friday.

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