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Medallion Bank (Proposed)

FEDERAL DEPOSIT INSURANCE CORPORATION

In Re: Medallion Bank (Proposed)
Salt Lake City, Salt Lake County, Utah
Application for Federal Deposit Insurance (Bank Insurance Fund)

ORDER

The undersigned, acting on behalf of the Board of Directors pursuant to delegated authority, has fully considered all available facts and information relevant to the factors of Section 6 of the Federal Deposit Insurance Act relating to the application for Federal deposit insurance for Medallion Bank (the Bank), a proposed new Utah industrial loan corporation to be located at 1100 East 6600 South, Suite 510, Salt Lake City, Salt Lake County, Utah, and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement, that the application submitted by the Bank for Federal deposit insurance be and the same hereby is approved subject to the following conditions:

1. That beginning paid-in capital funds of not less than $22,000,000 be provided and that a ratio of Tier 1 Leverage Capital to total assets of not less than 15 percent be maintained throughout the first three years of operation;

2. That any changes in proposed management or proposed ownership (10 percent or more of stock), including new acquisitions of or subscriptions to 10 percent or more of stock, will render this commitment null and void unless such proposal is approved by the Regional Director of the FDIC's San Francisco Regional Office (Regional Director) prior to opening of the Bank;

3. That the person selected to serve as the chief financial officer shall be acceptable to the Regional Director;

4. That the Bank will operate within the parameters of the business plan submitted to the FDIC. Furthermore, during the first three years of operations, the Bank will notify the Regional Director of any proposed major deviation or material change from the submitted plan 60 days before consummation of the change;

5. That no dividends will be paid by the Bank during the first three years of operations;

6. That the Bank's board of directors shall be composed of a majority of outside directors;

7. That the Bank will obtain an audit of financial statements by an independent public accountant annually for at least the first three years after deposit insurance is effective, furnish a copy of any reports by the independent auditor (including any management letters) to the Regional Director within 15 days after their receipt by the Bank and notify the Regional Director within 15 days when a change in its independent auditor occurs;

8. That Federal deposit insurance shall not become effective unless and until the applicant has been established as an industrial loan company (not a member of the Federal Reserve System), that it has authority to conduct a banking business, and that its establishment and operation as an industrial loan company have been fully approved by the appropriate State Authority;

9. That until the conditional commitment herein granted becomes effective, the FDIC shall have the right to alter, suspend or withdraw said commitment should any interim development be deemed to warrant such action; and

10. That if Federal deposit insurance has not become effective within twelve months from the date of this ORDER, or unless, in the meantime, a request for an extension of time has been approved by the FDIC, the consent granted herein shall expire at the end of the said twelve-month period.

Dated at Washington, D.C. this day of 2003.

FEDERAL DEPOSIT INSURANCE CORPORATION

BY: ________________________ Lisa K. Roy
Associate Director
Division of Supervision and Consumer Protection


FEDERAL DEPOSIT INSURANCE CORPORATION

In Re: Medallion Bank (Proposed)
Salt Lake City, Salt Lake County, Utah
Application for Federal Deposit Insurance (Bank Insurance Fund)

STATEMENT

Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815), an application for Federal deposit insurance has been filed for Medallion Bank (the Bank), a proposed new Utah industrial loan corporation, to be located at 1100 East 6600 South, Suite 510, Salt Lake City, Salt Lake County, Utah.

The Bank's holding company, Medallion Financial Corp. (MFC), is a publicly traded, registered investment company located in New York. MFC is a specialty finance company with a leading position in the origination and servicing of loans to finance the purchase of taxicab medallions (licenses) and related assets in New York City and seven other major metropolitan areas. MFC also originates and services commercial loans to finance small businesses in other targeted industries and operates one of the largest taxicab rooftop advertising businesses in the nation.

The Bank will originate loans to finance the purchase of taxicab medallions and will also originate commercial and Small Business Administration loans. The Bank will rely on its parent organization for financial and other support. In addition to formal written and operating policies, the Bank will ensure that all inter-company transactions are conducted at arms length and maintain a board of directors independent of MFC.

For the purposes of this proposal, capital is adequate, projections for future earnings prospects are favorable, management is considered satisfactory, and the investment in fixed assets is reasonable. Corporate powers to be exercised are consistent with the purpose of the Federal Deposit Insurance Act. No formal objections to this proposal have been filed and no undue risk to the insurance fund is apparent.

Accordingly, based upon careful evaluation of all available facts and information, the Associate Director, acting under delegated authority, has concluded that approval of the application is warranted, subject to certain prudential conditions.

ASSOCIATE DIRECTOR
DIVISION OF SUPERVISION AND CONSUMER PROTECTION
FEDERAL DEPOSIT INSURANCE CORPORATION



Last Updated 03/24/2011 Legal@fdic.gov