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   [11,004] In the Matter of The Meriden Trust and Safe Deposit Company, Meriden, Connecticut, Docket No. FDIC-93-194SA (7-6-94).

FDIC is appointed receiver to take possession of the bank and declare it closed.
In the Matter of

THE MERIDEN TRUST AND SAFE
DEPOSIT COMPANY

MERIDEN, CONNECTICUT
(Insured State Nonmember Bank)
ORDER OF APPOINTMENT OF
RECEIVER

FDIC-93-194SA

   WHEREAS, the Federal Deposit Insurance Corporation ("FDIC") is responsible for administering the Federal Deposit Insurance Act, as amended, 12 U.S.C. §§ 1811-1831t ("Act"), and the provisions of other Federal laws; and
   WHEREAS, in accordance with section 9(a)(ninth) of the Act, 12 U.S.C. § 1819(a)(ninth), the FDIC has the authority to act as receiver; and
   WHEREAS, in accordance with section 9(a)(seventh) of the Act, 12 U.S.C. § 1819(a)(seventh), the FDIC has the power to exercise by its Board of Directors ("Board"), or duly authorized officers or agents, all powers specifically granted by the Act and such incidental powers as shall be necessary to carry out the powers so granted; and
   WHEREAS, pursuant to section 133 of the Federal Deposit Insurance Corporation Improvement Act of 1991 ("FDIC Improvement Act"), which added section 11(c)(10) to the Act, 12 U.S.C. § 1821(c)(10), effective on December 19, 1992, the Board may appoint the FDIC as sole receiver of an insured depository institution, after consultation with the appropriate Federal banking agency and the appropriate State supervisor (if any), if the Board determines that (i) one or more of the grounds specified in section 11(c)(5) of the Act, 12 U.S.C. § 1821(c)(5), exist with respect to the institution, and (ii) the appointment is necessary to reduce (a) the risk that the applicable deposit insurance fund would incur loss with respect to the insured depository institution, and/or (b) any loss that the applicable deposit insurance fund is expected to incur with respect to that institution; and
   WHEREAS, pursuant to section 133 of the FDIC Improvement Act, which amended section 11(c)(9) of the Act, 12 U.S.C. § 1821(c)(9), effective on December 19, 1992, the Board, acting as an appropriate Federal Banking agency, after consultation with the appropriate State supervisor, may appoint the FDIC as sole receiver of any insured State nonmember bank (except a District bank), whenever the Board determines that one or more of the grounds specified in {{9-30-94 p.C-3696}}section 11(c)(5)(K) and (L) of the Act, 12 U.S.C. §§ 1821(c)(5)(K) and (L), exist with respect to such insured State nonmember insured bank (except a District bank) and that such appointment is necessary to carry out the purpose of section 38 of the Act, 12 U.S.C. § 1831o; and
   WHEREAS, The Meriden Trust and Safe Deposit Company, Meriden, Connecticut ("Bank"), is a State chartered nonmember bank, which received Federal deposit insurance on June 17, 1971; and
   WHEREAS, the Bank is a "State nonmember bank" as defined in section 3(e)(2) of the Act, 12 U.S.C. § 1813(e)(2), and an "insured depository institution" as defined in section 3(c)(2) of the Act, 12 U.S.C. § 1813(c)(2); and
   WHEREAS, the Honorable Ralph M. Shulansky, Banking Commissioner for the State of Connecticut, was consulted pursuant to the provisions of sections 11(c)(9) and (10) of the Act; and
   WHEREAS, the Board has considered memoranda from the Division of Supervision, other supporting legal and supervisory memoranda, statements, and other information, including the decision in FDIC-92-241kk, all of which are contained in the administrative record compiled by the FDIC with regard to the Bank; and
   WHEREAS, on June 30, 1994, in cause ____ CIV NO. ____ United States District Judge Alfred V. Covello of the United District Court of Hartford, Connecticut ruled in favor of the FDIC with regards to the crossguaranty assessment in FDIC-92-241kk initiated by the FDIC against the Bank; and
   WHEREAS, the Division of Supervision recommends that the Board appoint the FDIC as sole receiver for the Bank; and
   WHEREAS, the Board, based on the administrative record, hereby finds and determines, pursuant to sections 11(c)(9) and (10) of the Act, 12 U.S.C. §§ 1821(c)(9) and (10), that one or more of the grounds specified in subparagraphs (A) through (M) of section 11(c)(5) of the Act, 12 U.S.C. §§ 1821(c)(5)(A) through (M), exist in that:
   The Bank's assets are less than its obligations to its creditors and others, including members of the Bank, within the meaning of section 11(c)(5)(A) of the Act, 12 U.S.C. § 1821(c)(5)(A);
   The Bank is in an unsafe or unsound condition to transact business within the meaning of section 11(c)(5)(C) of the Act, 12 U.S.C. § 1821(c)(5)(C);
   The Bank is likely to be unable to pay its obligations or meet its depositors' demands in the normal course of business within the meaning of section 11(c)(5)(F) of the Act, 12 U.S.C. § 1821(c)(5)(F); and
   The Bank is "critically undercapitalized" within the meaning of section 11(c)(5)(L) of the Act, 12 U.S.C. § 1821(c)(5)(L), and as defined in section 38(b) of the Act, 12 U.S.C. § 1831o(b), and regulations promulgated thereunder by the FDIC in Subpart B of Part 325 of Title 12 of the Code of Federal Regulations; and
   WHEREAS, the Board also determines and finds that pursuant to section 11(c)(10) of the Act, 12 U.S.C. § 1821(c)(10), and section 38 of the Act, 12 U.S.C. § 1831o, the appointment of the FDIC as the sole receiver of the Bank is necessary to reduce the risk that the deposit insurance fund will incur a loss with respect to the Bank, or to reduce any loss that the deposit insurance fund is expected to incur with respect to the Bank; and
   WHEREAS, the Board also determines and finds pursuant to section 11(c)(9) of the Act, 12 U.S.C. § 1821(c)(9), that the appointment of a receiver for the Bank is necessary to carry out the purpose of section 38 of the Act, 12 U.S.C. § 1831o, in that the appointment would ultimately result in the least possible long-term loss to the deposit insurance fund.
   IT IS HEREBY ORDERED, that the Executive Secretary of the FDIC, or his designee, shall notify the Honorable Ralph M. Shulansky, Banking Commissioner for the State of Connecticut, of the Board's findings and determinations to appoint a receiver for the Bank by sending him a copy of this Order of Appointment of Receiver.
   IT IS FURTHER ORDERED, that, pursuant to sections 11(c)(9) and (10) of the Act, 12 U.S.C. §§ 1821(c)(9) and 1821(c)(10), and section 38 of the Act, 12 U.S.C. § 1831o, absent payment of the crossguaranty assessment by close of business, July 7, 1994, the FDIC is appointed as the sole receiver of the Bank, and shall take immediate possession of the business and property of the Bank, and thereafter declare it closed.
   IT IS FURTHER ORDERED, that the Bank, upon the Board's appointment of the
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   FDIC as receiver for the Bank, shall be deemed in default for purposes of the Act.
   IT IS FURTHER ORDERED, that the FDIC hereby directs each official of the FDIC, or his/her designee, to perform all such acts as shall be necessary and required in connection with the appointment of the FDIC as sole receiver for the Bank, including conducting any litigation which may arise from the appointment of the FDIC as receiver or engaging in negotiations with the Bank toward settlement.
   By direction of the Board of Directors.
   Dated at Washington, D.C., this 6th day of July, 1994.

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