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{{5-31-99 p.C-4699}}
   [11,604] In the Matter of Victory State Bank, Columbia, South Carolina, Docket No. 99-024SA (3-23-99)

   FDIC is appointed receiver to take possession of the Bank and declare it closed.
   [.1] Receiver—FDIC Appointed As
In the Matter of

VICTORY STATE BANK
COLUMBIA, SOUTH CAROLINA
(Insured State Nonmember Bank)
ORDER OF APPOINTMENT
OF RECEIVER

FDIC-99-024SA

   WHEREAS, the Federal Deposit Insurance Corporation ("FDIC") is responsible for administering the Federal Deposit Insurance Act, 12 U.S.C. §§ 1811-1831u ("Act"), and the provisions of other Federal laws; and
   WHEREAS, pursuant to section 38o(h)(3) of the Act, 12 U.S.C. §1831o(h)(3), the FDIC is required to appoint a receiver or conservator for a bank not later than the end of the 90-day period beginning on the date a bank became critically undercapitalized, unless the FDIC determines that other action would bet- {{5-31-99 p.C-4700}}ter achieve the purposes of section 38 of the Act; and
   WHEREAS, the Victory State Bank, Columbia, South Carolina ("Bank"), was notified that it was critically undercapitalized as of January 5, 1999; and
   WHEREAS, the FDIC has determined that no other action would better achieve the purposes of section 38 of the Act; 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 11(c)(9) of the Act, 12 U.S.C. §1821(c)(9), the Board, acting as an appropriate Federal Banking agency, after consultation with the appropriate State banking 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 sections 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 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, pursuant to section 11(c)(10) of the Act, 12 U.S.C. §1821(c)(10), 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, or (b) any loss that the applicable deposit insurance fund is expected to incur with respect to that institution; and
   WHEREAS, the Bank is a state chartered nonmember bank, which received Federal deposit insurance on April 1, 1953; 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 Louie A. Jacobs, Commissioner of Banking for the State of South Carolina, was consulted pursuant to the provisions of sections 11(c)(9) and (10) of the Act; and
   WHEREAS, the Division of Supervision recommends that the Board appoint the FDIC as sole receiver for the Bank; and
   WHEREAS, the Board 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:

    (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); and
    (b) The Bank has incurred or is likely to incur losses, within the meaning of section 11(c)(5)(G) of the Act, 12 U.S.C. §1821(c)(5)(G), that will deplete all or substantially all of its capital, and there is no reasonable prospect for the institution to become adequately capitalized (as defined in section 38(b)) without Federal assistance; and
    (c) The Bank is "undercapitalized" within the meaning of section 11(c)(5)(K) of the Act, 12 U.S.C. §1821(c)(5)(K), 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
    (d) 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 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 nec- {{5-31-99 p.C-4701}}essary 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; 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.

   [.1] IT IS HEREBY 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, as of March 26, 1999, 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 FDIC as receiver for the Bank, shall be deemed in default for purposes of the Act.
   IT IS FURTHER ORDERED, that the Board 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.
   IT IS FURTHER ORDERED, that the Executive Secretary of the FDIC, or his/her designee, shall notify the Honorable Louie A. Jacobs, Commissioner of Banking for the State of South Carolina, 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.
   By direction of the Board of Directors.
   Dated at Washington, D.C., this 23rd day of March, 1999.

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