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Decisions on Bank Applications

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Real Estate - Hold beyond 10 years
Bank may indirectly through a wholly-owned subsidiary own real estate beyond the ten year statutory limit.

Disclaimer
The following list shows those activities and investments approved by the FDIC under Section 24 of the Federal Deposit Insurance Act and Part 362 of the FDIC’s Rules and Regulations, 12 C.F.R. Part 362. The list provides insured state banks and their counsel some initial guidance regarding activities and investments that the FDIC may approve under Section 24. However, the fact that a particular activity or investment has received FDIC approval in the past does not affect the obligation of another institution to seek permission from the FDIC to engage in the same or similar activity. Additionally, the fact that a particular investment or activity has been approved in the past does not restrict the FDIC's review of future requests to engage in similar activities nor our ability to impose prudential standards on the conduct of that activity. Finally, it should be borne in mind that since the time any particular application was approved, key statutory or regulatory changes may have taken place, which might impact how the issues would be treated today.

LEGACY BANK, HINTON, OK
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 10/26/2005 $25.00 <2%
Notice of intent to create a wholly-owned subsidiary structured as a limited liability company to hold mineral rights royalties held by the Bank for over 10 years. Each of the mineral royalties has been charged down to $1.00 by the Bank.


CITIZENS STATE BANK, OKEMAH, OK
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 11/25/2005 $3.00 <2%
Notice of intent to establish a wholly-owned operating subsidiary, to hold certain OREO acquired by the Bank, through foreclosure or in satisfaction of debts previously contracted, beyond the ten-year limit imposed by Federal and State law.


THE FARMERS & MERCHANTS BANK - DYER, TN
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 2/11/2005 $111,165 1.85%
Notice of intent to transfer five parcels of real estate held for over ten years to a proposed wholly-owned subsidiary.


GIBSLAND BANK & TRUST COMPANY - GIBSLAND, LA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 2/28/2005    
Application to transfer mineral rights, acquired for debts previously contracted ("DPC") to newly-formed majority-owned subsidiary,


UNION BANK & TRUST - LIVINGSTON, TN
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 2/4/2005 $1,000 2%
Application to hold real estate and mineral rights acquired for debts previously contracted ("DPC"), and held for over ten years, in a wholly-owned subsidiary, .


NEWTON COUNTY BANK - NEWTON, MS
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 1/27/2005 $1,000 2%
Notice of Intent to Hold Mineral Interest (Oil & Gas) Beyond Ten Years.


FIRST AMERICAN BANK & TRUST - VACHERIE, LA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 11/30/2004 $4.00 0%
Notice of intent to transfer real estate and mineral interests acquired for debts previously contracted (DPC) to wholly-owned subsidiary


RED LAKE COUNTY STATE BANK - RED LAKE FALLS, MN
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 11/12/2004    
Notice of intent by 3 banks affiliated by common ownership of their respective holding companies (Peoples, First State Bank of Rush City, Red Lake County) to invest in limited partnerships or limited liability companies through their respective wholly-owned subsidiaries


FIRST STATE BANK OF RUSH CITY - RUSH CITY, MN
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 11/12/2004    
Notice by 3 banks affiliated by common ownership of their respective holding companies (Peoples, First State Bank of Rush City, Red Lake County) to invest in limited partnerships or limited liability companies through their respective wholly-owned subsidiaries


PEOPLES STATE BANK - AUGUSTA, WI
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 11/12/2004    
Notice by 3 banks affiliated by common ownership of their respective holding companies (Peoples, First State Bank of Rush City, Red Lake County) to invest in limited partnerships or limited liability companies through their respective wholly-owned subsidiaries


ST. MARTIN BANK & TRUST COMPANY - ST. MARTINVILLE, LA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 9/3/2004 $1,000.00 0.0001%
Bank filed notice to continue to hold certain mineral rights originally acquired in connection with debts previously contracted ("dpc") in a newly created single purpose subsidiary organized as a limited liability company.


CUMBERLAND BANK - CARTHAGE, TN
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 9/15/1999 $ 450,000 5%
Application to continue to hold, through a wholly-owned subsidiary, real estate investment involving the completion of the development of a residential subdivision. The real estate was to be developed in three phases as low to moderate income residential housing. The original 11/2/95 approval under Part 362 was conditioned on the real estate being divested by September 1, 1999, but the project remains incomplete due to prohibitive cost.


BANK OF ABBEVILLE & TRUST COMPANY - ABBEVILLE, LA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 9/13/2004 $1,000.00  
Bank filed a notice to hold a wholly-owned subsidiary, organized as an LLC real estate that was acquired for debts previously contracted and mineral rights that have been separated from that real estate when the real estate sold. The Bank has sixteen parcels of real estate. The mineral interest represents royalty interest acquired in the 1930's or before.


CITIZEN'S BANK - VILLE PLATTE, LA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 9/10/2004 $1.00  
Bank seeks approval to hold real estate and mineral rights (including mineral rights separated from the real estate and retained when real estate is sold), that were or will be acquired for debts previously contracted, in a wholly-owned subsidiary, organized as a limited liability company.


FARMERS-MERCHANTS BANK & TRUST CO. - BREAUX BRIDGE, LA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 8/14/2003 $1.00 1.5%
Application to hold real estate acquired in satisfaction of debts previously contracted (DPC) in wholly owned subsidiary organized as a Limited Liability Company


INTERWEST BANK - OAK HARBOR, WA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 7/9/1998   5%
Application to amend a previously approved application, increasing the amount allowed to be invested to a maximum of five percent (5%) of Tier 1 capital.


NORTH ABINGTON CO-OPERATIVE BANK - ABINGTON, MA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 7/7/2003 $181,386 2.4%
Application by bank under MOU to retain excess property purchased as premises and leased to U.S. Postal Service since 1960 North Abington Co-operative Bank


THE COTTONPORT BANK - COTTONPORT, LA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 7/23/2002 $ 7,000 2%
Application to continue to engage in real estate investment activities through a proposed wholly-owned subsidiary. Bank held vacant residential lots and parcel of farm land acquired for debts previously contracted for over 10 years.


PEOPLE'S BANK - BRIDGEPORT, CT
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 7/17/1998   1.97%
Application to continue real estate investment activities after the merger of two institutions with previous approvals under Section 24.


BANK OF WINNFIELD & TRUST COMPANY - WINNFIELD, LA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 7/13/2004 $4,990.00 1%
Notice of intent to retain one parcel of other real estate which was originally "bank premises" and transferred to the other real estate classification in 1961. The parcel of other real estate has been leased to an insurance agency for the past thirty years.


FARMERS AND MERCHANTS BANK OF HILL CITY - HILL CITY, KS
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 6/23/2004 $16,000.00 1%
Notice of intent to develop an industrial park and sell 70 acres of land through a wholly-owned subsidiary in this community of 1,604 residents.


FARMERS STATE BANK - GROESBECK, TX
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 6/17/2002 $ 1,000 0.01%
Notice of intent to retain other real estate acquired DPC through deed in lien of foreclosure. The property has been leased to the original owner since it was acquired.


MUTUAL SAVINGS BANK - MILWAUKEE, WI
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 5/10/2000 2.2M 1.3%
Notice of intent to continue to hold and sell land adjacent to the Bank's executive offices through an existing wholly-owned subsidiary. In May 1995, the FDIC's Washington office approved the bank's application to hold the excess property, subject to the condition that the bank would seek FDIC approval to continue to hold the property if divestiture had not been accomplished within five years. The current notice was filed in answer to that condition. The subsidiary also holds land acquired by the bank in connection with debts previously contracted. The consent granted to the bank by the FDIC to hold that property expires on December 19, 2001.


MC BANK & TRUST COMPANY - MORGAN CITY, LA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 4/5/2002 $ 292,229 > 2%
Application to transfer remaining portion of property previously acquired for future bank premises, but subsequently transferred to Other Real Estate, to a wholly owned bank subsidiary.


FIRST AMERICAN BANK - BRYAN, TX
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 4/2/2003 $ 2.00 2%
Notice of intent to transfer title of two parcels of real estate to two wholly owned subsidiaries incorporated under the laws of the State of Texas.


NORTHWEST SAVINGS BANK - WARREN, PA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 4/18/2003 $ 357,000 2%
Application to transfer various real estate properties to wholly-owned subsidiary. The properties consist of real estate obtained through debts previously contracted (DPC), or for use as a bank premises.


WATONGA STATE BANK - WATONGA, OK
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 4/11/2002 $ 82,000 1.5%
Notice of intent to conduct real estate investment activity through a wholly-owned subsidiary. The subsidiary will be incorporated under the laws of the State of Oklahoma and will be a single purpose entity formed to hold a parcel of real estate. The Bank's investment in the subsidiary does not exceed 2% of Tier 1 capital.


BONHAM STATE BANK - BONHAM, TX
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 3/11/2003 $ 340,000 3.99 %
Applicant seeks to transfer certain Bank owned real property to a wholly-owned subsidiary organized under the laws of the State of Texas and to conduct certain real estate investment activities through that entity.


GRAND PRAIRIE STATE BANK - GRAND PRAIRIE, TX
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 2/25/2002 $ 78,500 2.0046%
Application to retain a parcel of other real estate acquired DPC in 1987. The parcel has been continuously listed and marketed since acquisition and has been written down from its original to present book book value.


FARMERS SAVINGS BANK - SPENCER, OH
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Board Action 2/20/1997 $ 1.00 0.0002%
Application to continue to engage in real estate investment activities through a wholly-owned subsidiary. The Farmers Savings Bank


MID-STATE BANK - ARROYO GRANDE, CA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 12/31/1998 8.4M 6.69%
Application to continue to retain indirectly through a wholly-owned subsidiary an interest in real estate consisting of four remaining projects until December 31, 2000. On July 16, 1996, the FDIC approved the bank's Section 24 application to allow it to continue its real estate activities past the December 19, 1996 deadline, until December 31, 1998. The bank is actively marketing the projects; however, additional time is needed to sell these properties.


BANK OF LOUISIANA - NEW ORLEANS, LA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Board Action 12/21/2001 $ 1.00  
b ank seeks to retain a parcel of other real estate, acquired in 1991. The parcel is subject to a life estate interest. Bank of Louisiana


MARLBOROUGH SAVINGS BANK - MARLBOROUGH, MA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 12/19/2000 $ 484,522 1.94%
Notice of intent to hold property acquired by deed in lieu of foreclosure through a wholly-owned subsidiary. The bank’s intent is to liquidate the property upon the resolution of certain title issues. The bank’s investment in the subsidiary is 1.94% of Tier 1 capital.


STAFFORD SAVINGS BANK - STAFFORD SPRINGS, CT
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 11/9/2004 $ 3.00  
Notice of intent to continue to hold raw land, 11 acres of which are wetlands, through wholly-owned subsidiary


MID-STATE BANK - ARROYO GRANDE, CA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 11/17/2000 $ 234,000 > 2%
Application to continue indirectly owning real estate through a wholly owned subsidiary. This authority was granted in perpetuity. There is no impending divestiture date.


FIRST STATE BANK - HENDERSON, TN
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 10/20/2003 $ 120,000 0.68%
Application to continue to hold a parcel of real estate acquired in 1984 for debts previously contracted (“DPC”). The property consists of raw land located in an adjacent county. Bank wishes to retain the property located within a rapidly developing business zone. Bank has exceeded the ten year allowable holding period permissible for national banks.


SOUTHWEST BANK - FORT WORTH, TX
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 1/8/2002 $ 450.00 > 2%
Notice of intent to transfer real estate acquired for debts previously contracted ("DPC") in 1989 to a wholly- owned subsidiary. The real estate consists of a 10% interest in some unimproved land.


EMIGRANT SAVINGS BANK - NEW YORK, NY
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 1/7/2002 $ 76,000 0.008%
Notice of intent to continue existing investment in first-tier wholly-owned subsidiary that holds title to two unimproved parcels of land representing 0.008% of tier one capital.


GRANITE BANK - KEENE, NH
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 1/23/2003   2%
Notice of intent to continue to hold a parcel of undeveloped land. The land is being held as Other Real Estate Owned in return for Debts Previously Contracted. The bank will transfer the land to a wholly-owned subsidiary.


FIRST SERVICE BANK - GREENBRIAR, AR
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Application Delegated Authority 1/17/2003 $ 2,000 2%
Notice of intent to establish a wholly-owned subsidiary to hold property acquired dpc that has been on the banks books for over 10 years


BANK OF COUSHATTA - COUSHATTA, LA
Application or Notice Board or Delegated Authority Date of Approval Amount of Investment Percent of Tier I Capital
Notice Delegated Authority 1/13/2003 $ 5,000 2%
Notice of intent to establish a subsidiary to hold real estate beyond a ten year period.




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