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[¶10,012A] In the Matter of The First National Bank of Canton, Canton, Texas,
Docket No. 89-177kk (10-12-89).
FDIC issues contingent waiver of assessment of liability. (This
order has been terminated by order of the FDIC dated 5-29-90; see
¶15,125.)
[.1] Assessment of LiabilityWaiverContingent on Timely Sale
In the Matter of
THE FIRST NATIONAL BANK OF CANTON
CANTON, TEXAS
(Insured Depository Institution)
Related to
FIRST STATE BANK
PFLUGERVILLE, TEXAS
(Commonly Controlled Insured Depository Institution)
CONTINGENT WAIVER OF ASSESSMENT OF LIABILITY
FDIC-89-177kk
WHEREAS, the Federal Deposit Insurance Corporation ("FDIC"),
on August 24, 1989, pursuant to the provisions of section 206(a)(7) of
the Financial Institution Reform, Recovery, and Enforcement Act of 1989
("FIRREA"), Pub. L. No. 101-73, §206(a)(7), 103 Stat. 183, 201
(1989) (to be codified at 12 U.S.C. §1815(e)), and the FDIC's Rules
of Practice and Procedures, 12 C.F.R. Part 308, issued a NOTICE OF
ASSESSMENT OF LIABILITY, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER
TO PAY, AND NOTICE OF HEARING ("ASSESSMENT OF LIABILITY"), which
is attached hereto and made a part hereof, assessing a liability of
$5,823,000 against The First National Bank of Canton, Canton, Texas
("Liable Institution"), for loss incurred or reasonably
anticipated by the FDIC in connection with the default of First State
Bank of Pflugerville, Pflugerville, Texas ("Bank"), a commonly
controlled depository institution; and
WHEREAS, the Liable Institution and the Bank are both controlled by
TransTexas Bancshares, Inc. ("Holding Company"); and
WHEREAS, in 1983, the Holding Company financed the purchase of the Bank
through a note issued to First Republic Bank of Dallas, Texas
("RepublicBank"), in the approximate amount of $3.9 million which
is secured by 100 percent of the stock of the Liable Institution
("Note"); and
WHEREAS, NCNB Dallas, Texas ("NCNB"), subsequently purchased
RepublicBank, and while the liability evidenced by the Note was not
assumed by NCNB in its purchase of RepublicBank, the liability was
assigned to a special account known as the Special Asset Bank
("SAB"), administered by NCNB on behalf of the FDIC; and
WHEREAS, as a result of the foregoing transactions, the Holding Company
remains liable to the SAB for the amount of the Note; and
WHEREAS, the SAB is currently negotiating a sale of the Note, subject
to a waiver of the ASSESSMENT OF LIABILITY by the FDIC; and
WHEREAS, the ASSESSMENT OF LIABILITY would render the Bank technically
insolvent; and
WHEREAS, a waiver of the ASSESSMENT OF LIABILITY by the FDIC appears to
be in the best interests of the Bank Insurance Fund maintained and
administered by the FDIC.
[.1] IT IS HEREBY ORDERED, pursuant to section 206(a)(7) of the FIRREA, Pub.
L. No. 101-73, §206(a)(7), 103 Stat. 183, 203 (1989) (to be codified
at 12 U.S.C. §1815(e)(5)), that the ASSESSMENT OF LIABILITY issued
against the Liable Institution on August 24, 1989, is hereby waived,
contingent upon the consummation of the sale of the Note within 120
days.
By order of the Board of Directors.
Dated at Washington, D.C., this 12th day of October, 1989.