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{{5-31-02 p.C-3378}}

   [10,861A] In the Matter of The First National Bank in Stamford, Stamford, Texas, Docket No. 93-175kk (8-17-93).

   FDIC issues order conditionally granting approval for exemption of liability.

   [.1] Exemption from Liability—Conditional on Control of Bank—Time Frame

   [.2] Exemption from Liability—Injection of Capital Required

   [.3] Exemption from Liability—Applicability May Not be Conveyed or Transferred

   [.4] Exemption from Liability—Expiration

   [.5] Exemption from Liability—Reasonable Losses

   [.6] Exemption from Liability—Compliance with Federal Reserve Act Restrictions—Required

   [.7] Exemption from Liability—Revocation for Non-Compliance

In the Matter of
THE FIRST NATIONAL BANK IN STAMFORD
STAMFORD, TEXAS
and
FIRST STATE BANK, NATIONAL ASSOCIATION
ODESSA, TEXAS
and
FIRST STATE BANK, NATIONAL ASSOCIATION
ABILENE, TEXAS
(Insured Depository Institutions)
to be related to
THE WINTERS STATE BANK
WINTERS, TEXAS
(Insured Depository Institution)
ORDER CONDITIONALLY GRANTING APPROVAL FOR EXEMPTION FROM LIABILITY

FDIC-93-175kk

   WHEREAS, Independence Bankshares, Inc., Abilene, Texas ("Independence"), a three-bank holding company which owns The First National Bank in Stamford, Stamford, Texas ("Stamford"), First State Bank, National Association, Odessa, Texas ("Odessa"), and First State Bank, National Association, Abilene, Texas ("Abilene"), has proposed to acquire a 94.22 percent ownership interest in The Winters State Bank, Winters, Texas ("Winters"), and, upon consummation, to inject into Winters $450,000 of additional capital; and

   WHEREAS, the consummation of the proposed transaction 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), Stamford, Odessa, and Abilene, from any liability for any losses incurred, or reasonably anticipated to be incurred, by the FDIC in connection with any default of or FDIC assistance to Winters, should such occur, for a period of two years; and

   WHEREAS, Independence has requested that the FDIC grant an appropriate exemption from such liability with respect to Independence's proposed acquisition of Winters for a period of two years;

   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 liability, has concluded that an exemption is in the best interest of the Bank Insurance Fund, and that an exemption from liability under section 5(e) of the Act, 12 U.S.C. §1815(e), 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 EXEMPTION FROM LIABILITY ("ORDER") will become effective upon the consummation of the proposed acquisition described above. Absent such consummation, within six months from the date of issuance of this ORDER, this ORDER will become null and void, unless, upon the written request of Independence, the FDIC, in its discretion, grants an extension of that time period.

   [.2]2. IT IS FURTHER ORDERED, that the exemption granted by this ORDER shall be conditioned upon the injection by Independence of $450,000 of additional capital into Winters.

   [.3]3. IT IS FURTHER ORDERED, that the exemption granted by this ORDER may not be conveyed or otherwise transferred.

   [.4]4. IT IS FURTHER ORDERED, notwithstanding the foregoing, that this exemption shall expire two years from the date Independence acquires control of Winters.

   [.5]5. IT IS FURTHER ORDERED, that the exemption granted by this ORDER will apply only to such losses as may be incurred, or are reasonably anticipated to be incurred by the FDIC in connection with any default of, or FDIC assistance to, Winters, should such occur.

   [.6]6. IT IS FURTHER ORDERED, that during the life of this ORDER, Winters, Stamford, Odessa, Abilene, and any other insured depository institution affiliate of Independence 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).

   [.7]7. IT IS FURTHER ORDERED, that should the FDIC determine that the parties to the proposed transaction, or any other insured depository institution affiliate of such parties, have failed to comply fully with the aforesaid conditions and restrictions, the FDIC shall have the right to revoke this exemption after giving Independence written notice of said revocation and a reasonable opportunity to be heard on the matter. Notwithstanding the foregoing, there shall be no right to a hearing regarding compliance with the condition contained in paragraph 2 above.

   By direction of the Board of Directors.

   Dated at Washington, D.C., this 17th day of August, 1993.

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