Federal Deposit
Insurance Corporation

{{12-31-91 p.C-737}}
   [¶10,161A] In the Matter of Merchants Trust & Savings, Kenner, Louisiana, Docket No. FDIC-89-48a (1-8-91).

   Insured status of Institution is terminated effective March 4, 1991. (This order was terminated by order of the FDIC dated 10-16-91; see ¶15,339.)

   [.1] Insured Status—Termination—Notification to Depositors

In the Matter of

MERCHANTS TRUST & SAVINGS
BANK
KENNER, LOUISIANA
(Insured State Nonmember Bank)
ORDER TERMINATING
THE INSURED STATUS OF
THE INSURED INSTITUTION

   By certified mail dated March 30, 1989, the Federal Deposit Insurance Corporation ("FDIC") notified the Honorable Fred C. Dent, Jr., Commissioner of Financial Institutions for the State of Louisiana ("Primary Regulator"), of the FDIC's determination that Merchants Trust & Savings Bank, Kenner, Louisiana ("Insured Institution"), had violated a cease-and-desist order and/or had engaged or was engaging in unsafe or unsound practices and/or was in an unsafe or unsound condition to continue operations as an insured depository institution and that termination of the Insured Institution's insured status was necessary, and also informed the Primary Regulator of the facts and circumstances on which said determination was based.
   On October 31, 1989, the FDIC, having determined that correction of the violation of the cease-and-desist order and/or unsafe or unsound practices and/or condition had not occurred, issued a NOTICE OF INTENTION OF TERMINATE INSURED STATUS, FINDINGS OF VIOLATION OF CEASE-AND-DESIST ORDER AND/OR UNSAFE OR UNSOUND PRACTICES AND/OR CONDITION, AND ORDER SETTING HEARING to the Insured Institution. A hearing before an Administrative Law Judge was scheduled to commence on March 19, 1990.
   Prior to the commencement of the hearing, the Insured Institution, in an effort to resolve the enforcement action, represented to the FDIC that it would increase its primary capital by no less than $2,500,000 to restore the Insured Institution to a safe and sound condition. As a result, the FDIC and the Insured Institution entered into an agreement by ex- {{12-31-91 p.C-738}}ecuting the documents entitled "Settlement Agreement" and "Procedure Agreement." The Insured Institution failed to increase its primary capital by the sum of $2,500,000 within 180 days of the effective date of the Settlement Agreement, as required by paragraph 2(a) of the Settlement Agreement.
   NOW, THEREFORE, in conformity with the Settlement Agreement and Procedure Agreement and pursuant to section 8(a) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(a), IT IS HEREBY ORDERED:
   FIRST, that the insured status of the Insured Institution be, and the same hereby is, terminated effective as of the close of business on March 4, 1991.

   [.1] SECOND, that the Insured Institution, before the close of business on February 15, 1991, shall give notice to its depositors of the termination of its status as an insured institution, such notice to be mailed by First Class United States Mail to each depositor at the depositor's last address of record as shown upon its books, and the Insured Institution shall furnish the FDIC with a copy of the notice mailed, together with an affidavit executed by the person who mailed the same, which affidavit shall further state the fact of mailing said notice and the date of the mailing thereof, and shall further state that the said notice was mailed to each depositor of the Insured Institution at his or her last address as shown upon the records of the Insured Institution as of the date the notice was mailed. The said notice shall be in the form as follows:

   (Date) _____.
   1. The status of the Merchants Trust & Savings Bank, Kenner, Louisiana, as an insured bank and its insured branches in Kenner, Louisiana and Metairie, Louisiana, under the provisions of the Federal Deposit Insurance Act, will terminate as of the close of business on the fourth day of March, 1991.
   2. Any deposits made by you after that date, either new deposits or additions to existing deposits, will not be insured by the Federal Deposit Insurance Corporation.
   3. Insured deposits in the Merchants Trust & Savings Bank, Kenner, Louisiana, or its branches on the fourth day of March, 1991, will continue to be insured, as provided by the Federal Deposit Insurance Act, for 2 years after the close of business on the fourth day of March, 1991. Provided, however, that any withdrawals after the close of business on the fourth day of March, 1991, will reduce the insurance coverage by the amount of such withdrawals.
   Merchants Trust & Savings Bank 3145 Williams Boulevard Kenner, Louisiana 70063
   With prior written approval of the Regional Director of the FDIC's Memphis Regional Office, the Insured Institution may include in such notice any additional information or advice it may desire to give its depositors which is not inconsistent with this paragraph.
   THIRD, that the Insured Institution, before the close of business on February 15, 1991, shall publish in not less than two issues of a local newspaper of general circulation in Jefferson County, Louisiana, the said notice and shall furnish the FDIC with proof of publication of such notice in the form of a certification from the publisher and a tear sheet or clipping evidencing each publication.
   FOURTH, that, if the Insured Institution refuses or fails to give such notice as specified in paragraphs SECOND and THIRD of this ORDER TERMINATING THE INSURED STATUS OF THE INSURED INSTITUTION ("ORDER"), the FDIC is authorized to notify the Insured Institution's depositors by:

   (a) Sending notice of the termination of the insured status of the Insured Institution to each of the Insured Institution's depositors at his or her last address of record as shown on the books of the Insured Institution: and/or
   (b) Publishing notice of the termination of the Insured Institution's insured status by the use of a detailed statement of the facts of this matter in one or more local newspapers of general circulation in Jefferson County, Louisiana; and/or
   (c) Posting a copy of such notice in the lobby of the Insured Institution, local post office, and/or any other appropriate place of equal prominence; and/or
   (d) Seeking any judicial order as it may deem proper or necessary to require the Insured Institution to comply with the provisions herein.