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affiliated group. On May 1, 1989, Limited Service granted WFNNB
a line of credit in the amount of $500 million. On December 1,
1993, Limited Service increased to $1 billion the line of credit
it granted to WFNNB. At various times, WFNNB obtained funds
from Limited Service pursuant to various other long- and short-
term loan agreements. WFNNB also borrowed money from, and was
granted lines of credit by, various unrelated, outside lenders.
On December 4, 1992, WFNNB was granted a $280 million line of
credit by a syndicate of 17 banks. WFNNB never drew on that
line of credit because it could obtain funds less expensively
from Limited Service.
Certificates of Deposit
WFNNB first issued (sold) a certificate of deposit (CD) on
May 1, 1989. That CD was sold to Limited Service for $100,000,
the minimum acceptable time deposit pursuant to the CEBA
restrictions incorporated in the articles.
On November 19, 1992, by letter agreement (the letter
agreement), WFNNB appointed Merrill, Lynch, Pierce, Fenner &
Smith, Inc. (Merrill Lynch), as its agent for its customers who
desired to purchase CDs. The letter agreement provided that the
CDs would be sold in denominations of $100,000 or integral
multiples thereof.
During December 1992 and January 1993, WFNNB, acting
through its agent, Merrill Lynch, sold 17 CDs, receiving $26.3
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Last modified: May 25, 2011