"Is it true that an individual must maintain a high-deductible health plan (HDHP) following a rollover/distribution into an HSA? Would like to know if this applies specifically to ALL HSAs, even those being maintained through banking institutions."
Yes, the year following the rollover is called the "testing" period, and you must have HDHP coverage for that year or be penalized.
"Would have been nice if the bank had checked my eligibility prior to processing that transaction."
Everything to do with HSA puts the onus on the taxpayer - the bank does not know enough about your situation to be able to tell you if you are making a mistake or not. Only if you consulted with your tax professional through the year.
"Suppose I could transfer at least some of the funds back to avoid the penalty? " - Probably not. On what date did you make this rollover?
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