{{5-31-02 p.C-3251}}
[¶10,816A] In the Matter of First American Bank, N.A., Washington, D.C., Docket
No. 93-131kk (6-11-93).
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-GuarantyWaiverReasonable Losses
In the Matter of
FIRST AMERICAN BANK, N.A.
WASHINGTON, D.C.
FIRST AMERICAN BANK OF MARYLAND
SILVER SPRING, MARYLAND
FIRST AMERICAN BANK OF VIRGINIA
MCLEAN, VIRGINIA
FIRST AMERICAN BANK OF GEORGIA, N.A.
(IN LIQUIDATION)
ATLANTA, GEORGIA
(Insured Depository Institutions)
related to
INDEPENDENCE BANK
LOS ANGELES, CALIFORNIA
(Commonly Controlled Insured Depository Institution)
ORDER CONDITIONALLY GRANTING APPROVAL OF WAIVER OF CROSS GUARANTY
FDIC-93-131kk
WHEREAS, based upon a Plea Agreement filed in the United States
District Court for the District of Columbia on December 19, 1991, First
American Bank, N.A., Washington, D.C., First American Bank of Maryland,
Silver Spring, Maryland, First American Bank of Virginia, McLean,
Virginia, and its wholly-owned subsidiary, First American Bank of
Georgia, N.A. (In Liquidation), Atlanta, Georgia ("First American
Banks"), and Independence Bank, Los Angeles, California
("Independence Bank"), appear to be commonly controlled within
the definition of section 5(e) of the Federal Deposit Insurance Act, 12
U.S.C. §1815(e); and
WHEREAS, the First American Banks are potentially liable to the Federal
Deposit Insurance Corporation ("FDIC") pursuant to section 5(e)
of the Act, 12 U.S.C. §1815(e), for losses incurred or reasonably
anticipated to be incurred by the FDIC in connection with the default
on January 30, 1992, of Independence Bank; and
WHEREAS, First Union Corporation, Charlotte, North Carolina ("First
Union"), has made a proposal to acquire all of the stock of First
American Metro Corp., McLean, Virginia ("First American Metro"),
the holding company which owns and controls all of the stock of the
First American Banks; and
WHEREAS, the terms of the foregoing proposal are more fully set forth
in the Stock Purchase Agreement dated February 26, 1993, between First
Union and First American Bancshares, Inc., the parent holding company
of First American Metro ("Stock Purchase Agreement"); and
WHEREAS, in conjunction with the proposal, First Union has made an
application to the FDIC for an exemption pursuant to the provisions of
section 5(e)(5)(A) of the Act, 12 U.S.C. §1815(e)(5)(A); and
WHEREAS, the FDIC has fully considered the facts and information
relating to the proposed acquisition and exemption, and has concluded
that approval of the application would be in the best interests of the
Bank Insurance Fund and should be granted, subject to the conditions
and restrictions set forth below.
[.1] IT IS THEREFORE ORDERED, that this ORDER CONDITIONALLY GRANTING
APPROVAL FOR WAIVER OF CROSS GUARANTY ("ORDER") is conditional
upon the acquisition of control of First American Metro by First Union
in accordance with the terms of the Stock Purchase Agreement, and,
absent such acquisition, this ORDER will become null and void.
[.2] IT IS FURTHER ORDERED, that this Order will remain in effect only so
long as First American Metro and the First American Banks are
controlled by First Union, and its applicability may not be conveyed or
otherwise transferred by First Union.
[.3] IT IS FURTHER ORDERED, that the exemption granted by this ORDER will
apply only to losses incurred or reasonably anticipated to be incurred
by the FDIC in connection with the default of Independence Bank.
Dated at Washington, D.C., this 11th day of June, 1993.
Pursuant to delegated authority.