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| UNITED      STATES                      |
|-----------------------------------------|
| SECURITIES      AND EXCHANGE COMMISSION |
| WASHINGTON,      D.C. 20549             |

| FORM      10-K |
|----------------|

| T      | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     |
|--------|---------------------------------------------------------------|
|   | SECURITIES      EXCHANGE ACT OF 1934                          |
|   |                                                          |
|   | For      the fiscal year ended December 31, 2009              |
|   |                                                          |
|   | OR                                                            |
|   |                                                          |
| £ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|   | SECURITIES      EXCHANGE ACT OF 1934                          |

| MICHIGAN                                      |   | 38-2761672                  |
|-----------------------------------------------|--------|-----------------------------|
| (State      or other jurisdiction of          |   | (IRS      Employer          |
| incorporation      or organization)           |   | Identification      Number) |
| Capitol      Bancorp Center                   |   |                        |
| 200      N. Washington Square                 |   |                        |
| Lansing,      Michigan                        |   | 48933                       |
| (Address      of principal executive offices) |   | (Zip      Code)             |

| Title      of each class                                                     |   | Name      of each exchange on which registered |
|------------------------------------------------------------------------------|--------|------------------------------------------------|
| Common      Stock, no par value per share                                    |   | New      York Stock Exchange                   |
|                                                                         |   |                                           |
| 8.50%      Cumulative Trust Preferred Securities,$10      Liquidation Amount |   |  New      York Stock Exchange             |
|                                                                         |   |                                           |
| 10.5%      Cumulative Trust Preferred Securities,$10      Liquidation Amount |   |  New      York Stock Exchange             |

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| Large      accelerated filer  o |   | Accelerated      filer  o |   | Non-accelerated      filer  x |   | Smaller      Reporting Company  o |
|--------------------------------------|--------|--------------------------------|--------|------------------------------------|--------|----------------------------------------|

| Class                                     |   | Outstanding      at March 2, 2010 |
|-------------------------------------------|--------|-----------------------------------|
| Common      Stock, no par value per share |   | 17,544,501      shares            |

| Document                                                                                                                |   | Parts Into Which    Incorporated |
|-------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|
| Annual      Report to Shareholders for the Year EndedDecember      31, 2009 (Annual Report)                        |   | Parts      I, II and IV          |
| Portions      of Proxy Statement for the Annual Meeting ofShareholders      to be held April 28, 2010 (Proxy Statement) |   | Part      III                    |

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| Item of Form 10-KPart I                                                                                                                            | Incorporation by      Reference From:                                                                                                                           |
|----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Item      1.  Business                                                                                                                   | Pages      F-11 – F-15, F-29 – F-42, F-57 – F-60 and F-74 – F-75,Financial      Information Section of Annual Report               |
| Item      1A.  Risk Factors                                                                                                              | Page      F-47, Financial Information Section of Annual Report                                                                                             |
| Item      2.  Properties                                                                                                                 | Pages      F-57 – F-58 and F-72 – F-73, Financial Information Section         of Annual Report, and Page 49 of Proxy Statement  |
| Part II                                                                                                                                            |                                                                                                                                                            |
| Item      5.  Market for Registrant's Common Equity,Related      Stockholder Matters and IssuerPurchases      of Equity Securities  | Pages      F-2 – F-10, F-75 – F-77 and F-88 – F-90 , Financial      Information         Section of Annual Report               |
| Item      6.  Selected Financial Data                                                                                                    | Page      F-2, Financial Information Section of Annual Report                                                                                              |
| Item      7.  Management's Discussion and Analysis ofFinancial      Condition and Results ofOperations                              | Pages      F-11 – F-47, Financial Information Section of Annual Report                                                                               |
| Item      7A. Quantitative and Qualitative DisclosuresAbout      Market Risk                                                                       | Pages      F-6 – F-10 and F-37 – F-41, Financial Information Section ofAnnual      Report                                                      |
| Item      8.  Financial Statements and SupplementaryData                                                                                 | Pages      F-2 and F-52 – F-95, Financial Information Section ofAnnual      Report                                                                   |
| Item      9A. Controls and Procedures                                                                                                              | Pages      F-48 – F-50, Financial Information Section of Annual Report                                                                               |
| Part III                                                                                                                                           |                                                                                                                                                            |
| Item      10. Directors, Executive Officers and CorporateGovernance                                                                           | Pages      6 – 22 and 48 – 49, Proxy Statement                                                                                                      |
| Item      11. Executive Compensation                                                                                                               | Pages      22 – 46, Proxy Statement                                                                                                                  |
| Item      12. Security Ownership of Certain BeneficialOwners      and Management and RelatedStockholder      Matters                          | Pages      35 and 47, Proxy Statement                                                                                                                           |
| Item      13. Certain Relationships and RelatedTransactions      and Director Independence                                                    | Pages      9 – 22 and 49 – 51, Proxy Statement                                                                                                      |
| Item      14. Principal Accountant Fees and Services                                                                                          | Pages      51 – 52, Proxy Statement                                                                                                                  |
| Part IV                                                                                                                                            |                                                                                                                                                            |
| Item      15. Exhibits and Financial Statement Schedules                                                                                           | Pages      F-48 – F-95, Financial Information Section of Annual  Report                                                                                   |

| "Annual      Report" | means      the 2009 Annual Report of Capitol Bancorp Limited (Capitol) provided to      Shareholders and the Commission pursuant to Rule      14a-3(b).  Capitol's 2009 Annual Report is divided into two      sections:  a Financial Information Section and a Marketing      Section and is filed as Exhibit 13 with this Form 10-K    report. |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| "Proxy      Statement" | means      the Proxy Statement of Capitol for the Annual Meeting of Shareholders to      be held April 28, 2010. |
|------------------------|------------------------------------------------------------------------------------------------------------------|

| Note: | The      page number references herein are based on the paper version of the      referenced documents.  Accordingly, those page number references      may differ from the electronically filed versions of those      documents. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  PART      I                                                                                                                                                           | Page           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
| ITEM  1.      Business                                                                                                                   | 8         |
| ITEM      1A.    Risk Factors                                                                                                                                | 26        |
| ITEM      1B.    Unresolved Staff Comments                                                                                                                   | 37        |
| ITEM  2.      Properties                                                                                                                 | 37        |
| ITEM  3.      Legal      Proceedings                                                                                                     | 38        |
| ITEM  4.      (Removed      and Reserved)                                                                                                | 38        |
| PART      II                                                                                                                                                                |           |
| ITEM  5.      Market      for Registrant's Common Equity, Related Stockholder Matters and Issuer      Purchasesof      Equity Securities |  39  |
| ITEM      6.       Selected Financial      Data                                                                                               | 40        |
| ITEM  7.      Management's      Discussion and Analysis of Financial Condition and Results of      Operations                            | 40        |
| ITEM      7A.    Quantitative and Qualitative Disclosures About      Market Risk                                                                             | 40        |
| ITEM  8.      Financial      Statements and Supplementary Data                                                                           | 40        |
| ITEM  9.      Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                             | 40        |
| ITEM      9A.    Controls and Procedures                                                                                                                     | 41        |
| ITEM      9B.    Other Information                                                                                                                           | 41        |
| PART      III                                                                                                                                                               |           |
| ITEM      10.     Directors, Executive Officers and      Corporate Governance                                                                           | 42        |
| ITEM      11.     ExecutiveCompensation                                                                                                                 | 42        |
| ITEM      12.     Security Ownership of Certain Beneficial      Owners and Management and RelatedStockholder      Matters                               |  42  |
| ITEM      13.     Certain Relationships and Related      Transactions and Director Independence                                                         | 42        |
| ITEM      14.     Principal Accountant Fees and      Services                                                                                           | 42        |
| PART      IV                                                                                                                                                                |           |
| ITEM      15.     Exhibits and Financial Statement      Schedules                                                                                       | 43             |

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Item 1.Business.

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| ·  | prohibiting      the payment of principal and interest on subordinated debt;                                                    |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------|
| ·  | prohibiting      the holding company from obtaining distributions from the institution      without prior regulatory approval;  |
| ·  | placing      limits on asset growth and restrictions on activities;                                                             |
| ·  | placing      additional restrictions on transactions with affiliates;                                                           |
| ·  | restricting      the interest rates the institution may pay on deposits;                                                        |
| ·  | prohibiting      the institution from accepting deposits from correspondent banks;      and                                     |
| ·  | in      the most severe cases, appointing a conservator or receiver for the      institution.                                        |

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Item 1A.Risk Factors.

| ·   | Actual      or anticipated variations in quarterly results of    operations; |
|--------------------|------------------------------------------------------------------------------|

| ·   | Recommendations      by securities analysts; |
|--------------------|----------------------------------------------|

| ·   | Operating      and stock price performance of other companies that investors deem      comparable to Capitol; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | News      reports relating to trends, concerns and other issues in the financial      services industry; |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Perceptions      in the marketplace regarding Capitol or Capitol's    competitors; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | New      technology used or services offered by  competitors; |
|--------------------|---------------------------------------------------------------|

| ·   | Significant      acquisitions or business combinations, strategic partnerships, joint      venture or capital commitments by or involving Capitol or Capitol's      competitors; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Changes      in government regulations; or |
|--------------------|--------------------------------------------|

| ·   | Geopolitical      conditions such as acts or threats of terrorism or military      conflicts. |
|--------------------|-----------------------------------------------------------------------------------------------|

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| ·   | adequate      capital and financial condition; |
|--------------------|------------------------------------------------|

| ·   | permissible      types and amounts of extensions of credit and  investments; |
|--------------------|------------------------------------------------------------------------------|

| ·   | permissible      nonbanking activities; and |
|--------------------|---------------------------------------------|

| ·   | restrictions      on dividend payments. |
|--------------------|-----------------------------------------|

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Item 1B.Unresolved Staff Comments.

Item 2.Properties.

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Item 3. LegalProceedings.

Item 4.(Removed and Reserved).

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Item 5. Marketfor Registrant's Common Equity, Related Stockholder Matters and Issuer Purchasesof Equity Securities.

|                                                          |   | (a)                                                                                                                    |          |   | (b)                                                                                         |   |        | (c)                                                                                                                                                                  |
|--------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------|---------------|--------|---------------------------------------------------------------------------------------------|--------|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Plan      category                                                 |   |  Number      of securities tobe      issued upon exerciseof      outstanding options,warrants      and rights (1) |          |   | Weighted-averageexercise      price ofoutstanding options,warrants      and rights (1) |   |        | Number      of securitiesremaining      available forfuture      issuance under equitycompensation      plans(excluding      securities reflectedin      column (a)) |
|                                                               |   |                                                                                                                   |          |   |                                                                                        |   |        |                                                                                                                                                                 |
| Equity      compensation plans approved by security holders*       |   |                                                                                                                   | 2,165,079     |   |                                                                                        | $      | 25.13       |                                                                                                                                                                 |   |   |  44,988 |
| Equity      compensation plans not approved by security holders(1) |   |                                                                                                                   | 38,784        |   |                                                                                        |   | 21.11       |                                                                                                                                                                 |   |   | -- |
| Equity      compensation plans resulting from share exchanges      |   |                                                                                                                   |  300,620 |   |                                                                                        |   |  21.35 |                                                                                                                                                                 |   |   |  -- |
|                                                               |   |                                                                                                                   |          |   |                                                                                        |   |        |                                                                                                                                                                 |   |   |   |
| Total                                                              |   |                                                                                                                   | 2,504,483     |   |                                                                                        | $      | 24.61       |                                                                                                                                                                 |   |   | 44,988 |

| (1)     | Options      issued pursuant to employment agreements with various officers of Capitol      and its subsidiaries.                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  * | Does      not include shares that may be issued if Capitol elects to pay awards made      under the Capitol Bancorp Ltd. Management Incentive Plan in the form of      shares of Capitol's common stock.  Also does not include shares      that were approved to be issued under the 2007 Incentive Plan, which      includes a provision increasing the shares available for the plan in an      amount equal to 2% of the outstanding shares of common stock as of      December 31 of each year. |

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Item 6.Selected Financial Data.

Item 7.Management's Discussion and Analysis of Financial Condition and Results ofOperations.

Item 7A.Quantitative and Qualitative Disclosures About MarketRisk.

Item 8.Financial Statements and Supplementary Data.

Item 9.Changes In and Disagreements With Accountants on Accounting and FinancialDisclosure.

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Item 9A.Controls and Procedures.

Item 9B.Other Information.

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Item 10.Directors, Executive Officers and Corporate Governance.

Item 11.Executive Compensation.

Item 12.Security Ownership of Certain Beneficial Owners and Management and RelatedStockholder Matters.

Item 13.Certain Relationships and Related Transactions and DirectorIndependence.

Item 14.Principal Accountant Fees and Services.

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Item 15.Exhibits and Financial Statement Schedules.

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| CAPITOL      BANCORP LTD.RegistrantBy:   /s/ Joseph D.      Reid                            Joseph D. ReidChairman andChief Executive      Officer |   By:  /s/ Lee W.      Hendrickson       Lee W. HendricksonChief Financial      Officer(Principal Financial      andAccounting    Officer) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/      Joseph D.      Reid                                                                                                               Joseph      D. Reid, Chairman,Chief      Executive Officer and Director  | /s/ H. Nicholas      Genova                                              H.      Nicholas Genova, Director                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| /s/ David      O'Leary                                                                                                       David      O'Leary, Secretary and Director                         | /s/ Richard A.      Henderson                                    Richard      A. Henderson, Director                                                                                                                                                                                                                                                                                                                                                                                                                                |
| /s/ Paul      R.      Ballard                                                                                                       Paul      R. Ballard, Director                              | /s/ Lewis D.      Johns                                                                                                Lewis      D. Johns, Director                                 |
| /s/ David L.      Becker                                                                                                               David      L. Becker, Director                                               | /s/ Michael L.      Kasten                                      Michael      L. Kasten, Vice Chairman andDirector                                                                                                                                                                                                                                                                                                                                                                      |
| /s/ Michael J.      Devine                                             Michael      J. Devine, Director                                                                                                                                                                                                                                                                                                                                                                                           | /s/ Steven L.      Maas                                                                                               Steven      L. Maas, Director                                       |
| /s/ James C.      Epolito                                                                                                               James      C. Epolito, Director                                             | /s/ Lyle W.      Miller                                                                                                           Lyle      W. Miller, Vice Chairman andDirector          |
| /s/ Gary A.      Falkenberg                                                Gary      A. Falkenberg, Director                                                                                                                                                                                                                                                                                                                                                                                                          | /s/ Myrl D.      Nofziger                                        Myrl      D. Nofziger, Director                                                                                                                                                                                                                                                                                                                                                                             |
| /s/ Joel I.      Ferguson                                                                                                                     Joel      I. Ferguson, Director              | /s/ Cristin K.      Reid                                                                                                 Cristin      K. Reid, Corporate President andDirector  |
| /s/ Kathleen A.      Gaskin                                               Kathleen      A. Gaskin, Director                                                                                                                                                                                                                                                                                                                                                                                                           | /s/ Ronald K.      Sable                                                                                                         Ronald      K. Sable, Director                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

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