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Decisions on Bank Applications

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Republic Bank, Inc.

IN RE: Republic Bank, Inc.
Bountiful, Utah
Application for Federal Deposit Insurance

ORDER

The undersigned, acting under delegated authority, has fully considered all available facts and information relevant to the factors of Section 6 of the Federal Deposit Insurance Act and relating to the application for federal deposit insurance, with membership in the Bank Insurance Fund, for Republic Bank, Inc., Bountiful, Utah, a proposed new Utah industrial loan company to be located at 801 North 500 West, Suite 103, Bountiful, Utah, and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement, that the application submitted on behalf of Republic Bank, Inc., for federal deposit insurance be and the same hereby is approved subject to the following conditions:

1. That beginning paid-in capital funds of not less than $5,000,000 be provided;

2. That throughout the first three years of operation the industrial loan company maintain no less than a 10 percent Tier 1 capital to assets leverage ratio and an adequate allowance for loan and lease losses;

3. That the industrial loan company have an audit of its financial statements conducted by a public accountant annually for the first three years after deposit insurance is effective, furnish a copy of any reports by the independent auditor, including any management letters, to the FDIC's San Francisco Regional Office within 15 days after their receipt by the industrial loan company, and notify the Regional Office within 15 days when a change in its independent auditor occurs;

4. That any changes in proposed management or proposed ownership (10 percent or more of the stock, including new acquisitions of or subscriptions to 10 percent or more of the stock), will render this approval null and void unless such proposal is approved by the Regional Director of the FDIC's San Francisco Regional Office prior to opening;

5. That federal deposit insurance shall not become effective unless and until the applicant has been established as a state chartered industrial loan company (not a member of the Federal Reserve System), that it has authority to conduct an industrial loan company business and that its establishment and operation as an industrial loan company have been fully approved by the state authority;

6. That until the conditional commitment herein granted becomes effective, the Federal Deposit Insurance Corporation shall have the right to alter, suspend, or withdraw said approval should any interim development be deemed to warrant such action;

7. That if federal deposit insurance has not become effective within twelve months from the date of this Order, or unless, in the meantime, a request for an extension of time has been approved by the Federal Deposit Insurance Corporation, the consent granted shall expire at the end of said twelve-month period.

Dated at Washington, D.C., this day of October, 1999.

FEDERAL DEPOSIT INSURANCE CORPORATION

By:______________________________________
Michael J. Zamorski
Deputy Director
Division of Supervision


FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Republic Bank, Inc.
Bountiful, Utah
Application for Federal Deposit Insurance

STATEMENT

Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815), an application for federal deposit insurance has been filed on behalf of Republic Bank, Inc., Bountiful, Utah, a proposed new Utah industrial loan company to be located at 801 North 500 West, Suite 103, Bountiful, Utah.

Republic Bank, Inc., will be organized as an industrial loan company specializing in equipment leasing. The industrial loan company intends to solicit deposits and purchase equipment lease contracts on a nationwide basis. It will operate from one location and will not offer any lobby, walk-up, or drive-up services. Banking services will be provided via the U.S. mail and telephone. The industrial loan company is designated as a wholesale institution for Community Reinvestment Act assessment purposes. The institution's local trade area is Davis County, Utah.

No formal objections to this proposal were filed, and granting of deposit insurance to this institution would have no substantive effect on the competitive environment. Initial capitalization is adequate, and operating profits are projected within a reasonable period of time. The factors relating to the general character and fitness of management and risk to the deposit insurance fund have been favorably resolved.

Accordingly, based on careful evaluation of all available relevant facts and information, the Deputy Director, pursuant to delegated authority, has concluded that approval of the application is warranted.

DEPUTY DIRECTOR
DIVISION OF SUPERVISION



Last Updated 03/24/2011 Legal@fdic.gov