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FDIC Federal Register Citations |
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| September 26, 2002
Robert E. Feldman, Executive Secretary Greetings: We appreciate the opportunity to comment on your proposal that would allow state chartered banks organized as limited liability companies (LLC's) to receive FDIC deposit insurance. We are a state chartered non-member bank in our first year of operation. We capitalized at $4.7 million (FDIC required $4.5 million) with 130 shareholders. Approximately 1/3 of our capital came from local citizens investing IRA monies in our bank stock. We are currently in our third month of operation and have assets in excess of $18 million. We had originally planned to convert to a sub-chapter S corporation but the pending legislation to increase the allowed stockholders from 75 to 150 and also allow the use of IRA funds to purchase bank stock will most likely not pass this Congress. Approval of your proposal will provide similar benefits to LLC's as subchapter-S corporations but without the artificial limitations and restrictions. We believe it will strengthen the ability of community banks to serve their customers and communities and survive in this very competitive environment where some are not subject to taxation and enjoy only limited regulation. We believe that the FDIC should interpret the term "incorporated" utilizing all of the traditional four corporate attributers listed in your proposal. We sincerely urge the adoption of your proposed rule to permit state chartered banks organized as limited liability companies to receive FDIC deposit insurance. Though the state of Oregon does not currently permit banks to organize as a Limited liability company we are optimistic that the 2003 session of the Oregon Legislature will favorably consider such a proposal. Your proposal helps move towards a level playing field for financial institutions and we urge your approval. (Approved by a unanimous vote of the Board of Directors this 26th day of September, 2002.) Sincerely, Fred Postlewait Cc: Floyd Lantner |
| Last Updated 10/15/2002 | regs@fdic.gov |