I have about $800,000 in loans secured by CDs at my local bank. Would I be responsible to pay this debt if my bank fails?
If the bank were to fail, you would still be liable for repaying the loans to the FDIC or to whomever ended up buying those assets of the failed bank. If the loans are sold to another bank, the CDs might go with them, in which case you'd be pretty much in the same position.
Whether those CDs are currently fully insured under the higher temporary insurance limits in effect through 12/31/09, will depend on who owns them and what other accounts they might have in the same bank. If some of the CD balances are not insured and the bank closes without selling the uninsured portion of the accounts, you might be able to offset the uninsured balances against the equivalent amount of the debt to the FDIC. Ultimately, you will have to repay the loans one way or another.
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If the bank were to fail, you would still be liable for repaying the loans to the 