{{5-31-02 p.C-1677}}
[¶10,383A] In the Matter of Palisade Savings Bank, FSB, Ridgefield Park, New
Jersey, Docket No. 91-308kk (11-5-91).
FDIC issues order conditionally granting approval for waiver of
cross-guaranty.
[.1] Cross-GuarantyWaiverConditional on Acquisition
[.2] Cross-GuarantyWaiverApplicability May Not be Conveyed or
Transferred
[.3] Cross-GuarantyWaiverExpiration
[.4] Cross-GuarantyWaiverReasonable Losses
[.5] Cross-GuarantyWaiverCompliance with Federal Reserve Act
RestrictionsRequired
[.6] Cross-GuarantyWaiverInstitution's Independence Required
[.7] Cross-GuarantyWaiverRevocation for Non-Compliance
In the Matter of
PALISADE SAVINGS BANK, FSB
RIDGEFIELD PARK, NEW JERSEY
(Insured Depository Institution)
related to
STATE HOME SAVINGS BANK, F.S.B.
BOWLING GREEN, OHIO
(Insured Depository Institution)
ORDER CONDITIONALLY GRANTING APPROVAL FOR WAIVER OF CROSS-GUARANTY
FDIC-91-308kk
WHEREAS, U.S. Thrift Opportunity Partners, Limited Partnership
("USTOP"), a unitary savings and loan holding company which is
the sole shareholder of Palisade Savings Bank, FSB, Ridgefield Park,
New Jersey ("Palisade"), has entered into an agreement with State
Home Savings Bank, F.S.B., Bowling Green, Ohio ("State Home"),
whereby State Home would be converted into a federally-chartered stock
institution via a voluntary supervisory conversion and USTOP would
acquire not less than 95 percent of the State Home stock for
$14,000,000; and
WHEREAS, USTOP's proposed acquisition is conditional upon the Federal
Deposit Insurance Corporation ("FDIC") exempting, pursuant to
section 5(e)(5)(A) of the Federal Deposit Insurance Act ("Act"),
12 U.S.C. §1815(e)(5)(A), Palisade1 from any losses
incurred or reasonably anticipated to be incurred by the FDIC from the
default of or FDIC assistance to State Home; and
WHEREAS, USTOP has requested that the FDIC grant an appropriate
exemption from losses with respect to USTOP's proposed acquisition of
control of State Home;
BE ADVISED that the Board of Directors of the FDIC, having fully
considered the facts and information relating to the foregoing request
for exemption from losses, has concluded that an exemption is in the
best interest of the Savings Association Insurance Fund, and that
approval of the request should be and hereby is granted, subject to the
conditions and restrictions set forth below.
IT IS THEREFORE ORDERED:
[.1]1. This ORDER CONDITIONALLY GRANTING APPROVAL FOR WAIVER OF
CROSS-GUARANTY ("ORDER") will become effective upon the
acquisition of control of State Home by USTOP through the purchase of
not less than 95 percent of the stock of State Home for $14,000,000
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 USTOP or Palisade, the
FDIC grants an extension of that time period.
[.2]2. IT IS FURTHER ORDERED, that this ORDER will remain in effect only so
long as State Home is controlled by USTOP, and its applicability may
not be conveyed or otherwise transferred.
[.3]3. IT IS FURTHER ORDERED, notwithstanding the foregoing, that this
exemption shall expire five years from the date USTOP acquires control
of State Home.
[.4]4. 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 State Home.
[.5]5. IT IS FURTHER ORDERED, that during the life of this ORDER, State
Home, Palisade, and any other insured depository institution affiliate
of Palisade 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).
[.6]6. IT IS FURTHER ORDERED, that during the life of this ORDER, Palisade
shall not, directly or indirectly, exercise a controlling influence
over the management or policies of State Home, and State Home shall
not, directly or indirectly, exercise a controlling influence over the
management or policies of Palisade.
7. IT IS FURTHER ORDERED, that Palisade and State Home will, in
accordance with ownership representations, operate independently of one
another and not in a fashion so as to intertwine the operations of one
with the other.
[.7]8. IT IS FURTHER ORDERED, that should the FDIC determine that State
Home, Palisade, or any other insured depository institution affiliate
of Palisade has failed to comply fully with the aforesaid restrictions,
the FDIC shall have the right to revoke this exemption after giving
Palisade 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, 1991.
1USTOP has also requested that the FDIC grant a
waiver of any cross-guaranty liability which might arise for State Home
from losses incurred or reasonably anticipated to be incurred from the
default of or FDIC assistance to Palisade. Such request is being
disposed of in the companion proceeding, FDIC-91-307kk.