[.3] Cross-GuarantyWaiverApplicable only to Specific Institution
[.4] Cross-GuarantyWaiverCompliance with Federal Reserve Act
[.5] Cross-GuarantyWaiverRevocation for Non-Compliance
In the Matter of
FIRST STATE BANK BANDERA, TEXAS (Insured Depository Institution)
CHAS. SCHREINER BANK KERRVILLE, TEXAS and
SOUTHWEST NATIONAL BANK AUSTIN, TEXAS (Commonly Controlled InsuredDepository Institutions)
ORDER CONDITIONALLY GRANTING APPROVAL FOR WAIVER OF CROSS-GUARANTY
BE ADVISED that the Board of Directors ("Board") of
the Federal Deposit Insurance Corporation ("FDIC"), having fully
considered the facts and information relating to the application for an
exemption from assessment for losses incurred or reasonably anticipated
to be incurred by the FDIC in connection with the default of Chas.
Schreiner Bank, Kerrville, Texas, and Southwest National Bank,
Austin, Texas ("Failed Institutions"), filed pursuant to the
provisions of section 5(e)(5)(A) of the Federal Deposit Insurance
Act ("Act"), 12 U.S.C. §1815(e)(5)(A), by Schreiner
Bancshares, Inc. ("Applicant"), the holding company of First
State Bank, Bandera, Texas ("Insured Institution"), relating to
the proposal by B & G Investment Company, San Antonio, Texas
("Purchaser"), to acquire the Insured Institution, has concluded
that approval of the application for exemption should be granted,
subject to the conditions and restrictions set forth below.
IT IS THEREFORE ORDERED, that this ORDER CONDITIONALLY GRANTING
APPROVAL FOR WAIVER OF CROSS-GUARANTY ("ORDER") is conditional
upon the acquisition of control of the Insured Institution by the
Purchaser within six months from the date of issuance of this ORDER,
and, absent such acquisition within that time period, this ORDER will
become null and void, unless, upon the written request of the Applicant
or Purchaser, the FDIC grants an extension of that time period.
[.1] IT IS FURTHER ORDERED, that this ORDER will remain in effect only so
long as the Insured Institution is controlled by the Applicant or
Purchaser, and its applicability may not be conveyed or otherwise
transferred by the Applicant or Purchaser.
[.2] IT IS FURTHER ORDERED, notwithstanding the foregoing, that this
exemption shall expire two years from the date of default of the Failed
[.3] IT IS FURTHER ORDERED, that the exemption granted by this ORDER will
apply only to losses incurred or reasonably anticipated to be incurred
from the default of, or FDIC assistance to, the Failed Institutions.
Liability for loss resulting from the default of, or FDIC assistance
to, any other insured depository institution controlled by Applicant
will remain with all other commonly controlled insured depository
institutions, including the Insured Institution.
[.4] IT IS FURTHER ORDERED, that during the life of this ORDER, the Insured
Institution, the Applicant, and all other insured depository
institution affiliates controlled by the Applicant shall comply fully
with the restrictions of sections 23A and 23B of the Federal Reserve
Act, 12 U.S.C. §§ 371c and 371c-1, without regard to section
23A(d)(1) of the Federal Reserve Act, 12 U.S.C. §371c(d)(1).
[.5] IT IS FURTHER ORDERED, that should the FDIC determine that the Insured
Institution, the Applicant, or any insured depository institution
affiliates controlled by the Applicant, fail to comply fully with the
aforesaid restrictions, the FDIC shall have the right to revoke this
exemption, after giving the Applicant written notice of said revocation
and a reasonable opportunity to be heard on the matter.
By direction of the Board of Directors.
Dated at Washington, D.C. this 5th day of November, 1990.