Source: https://www.fdic.gov/regulations/laws/bankdecisions/investactivity/merchants-planters.html
Timestamp: 2019-11-19 02:47:37
Document Index: 335139425

Matched Legal Cases: ['§ 1831', 'art 362', 'art 362', 'art 362', '§ 371', '§ 371', '§ 1831']

Home > Regulation & Examinations > Laws & Regulations > Decisions on Bank Applications > Investments & Activities > Real Estate > Merchants & Planters' Bank
Application Pursuant to Section 24 of the Federal Deposit Insurance Act for Consent to Indirectly Engage as Principal Through a Wholly-Owned Subsidiary in Real Estate Investment Activities That May Not Be Permissible for a Subsidiary of a National Bank
The Board of Directors ("Board") of the Federal Deposit Insurance Corporation ("FDIC") has fully considered all available facts and information relevant to section 24 of the Federal Deposit Insurance Act, 12 U.S.C. § 1831a, and Part 362 of the FDIC's Rules and Regulations,12 C.F.R. Part 362 ("Part 362"), relating to an application by Merchants & Planters' Bank, Newport, Arkansas ("Bank"), for consent to indirectly engage as principal through a wholly-owned subsidiary, Three Rivers Realty, Inc. ("Subsidiary"), in equity real estate investment activities that may not be permissible for a subsidiary of a national bank. The Board, having found that the Bank is in compliance with applicable capital standards and that the activity to be initiated does not appear, with certain conditions imposed, to pose a significant risk to the applicable deposit insurance fund, has concluded the application should be approved subject to certain conditions.
c. extend credit to any borrower to acquire real estate from the Subsidiary engaging in real estate investment activities (End Loans) unless it is consistent with safe and sound banking practice, does not involve more than the normal degree of risk of repayment, and is extended on terms and under circumstances, including credit standards, that are substantially the same, or at least as favorable to the Bank, as those prevailing at the time for comparable transactions.
10. That transactions between the Bank and the Subsidiary engaging in real estate investment activities shall be made in accordance with the restrictions of sections 23A and 23B .of the Federal Reserve Act, 12 U.S.C. § 371c and § 371c-1, to the same extent as though the Subsidiary were an affiliate of the Bank as defined under sections 23A and 23B, with the exception that the collateral requirements and investment limitations of section 23A shall not apply to loans made by the Bank to finance bona fide sales of assets to third parties consistent with safe and sound underwriting requirements contained in paragraph 9(c) above.
11. That the consent granted herein is based on the facts and circumstances presented or otherwise known to the FDIC in connection with this request. The Bank shall notify the FDIC of any significant change in facts or circumstances. If the facts and circumstances change significantly, the FDIC shall have the right to alter, suspend, or withdraw its approval.
Pursuant to the provisions of section 24 of the Federal Deposit Insurance Act ("FDI Act"), 12 U.S.C. § 1831a, Merchants & Planters' Bank, Newport, Arkansas ("Bank"), has filed an application with the Federal Deposit Insurance Corporation ("FDIC"). The Bank requests the FDIC's consent to initiate the activity of indirectly engaging in equity real estate investment activities through Three Rivers Realty, Inc. ("Subsidiary"), a wholly-owned subsidiary of the Bank.