The Limited, Inc., and Consolidated Subsidiaries - Page 8

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          way for petitioner to own a bank that could charge a uniform rate           
          of interest on credit card sales.5                                          
               As of March 15, 1989, World Financial Network National Bank            
          (WFNNB) was organized under the National Bank Act, see 12 U.S.C.            
          sec. 24 (1994).  On May 1, 1989, the Comptroller of the Currency            
          issued a charter certificate to WFNNB authorizing it to commence            
          the business of banking as a National Banking Association.  The             
          articles of association of WFNNB (the articles) state that the              
          association is organized to carry on the business of banking                
          under the laws of the United States.  The articles incorporate in           
          full the CEBA credit card institution restrictions.  See supra              
          note 3.  In pertinent part, Article THIRD provides:                         
               The association                                                        
              (i)  will engage only in credit card operations;                       
               (ii)  will not accept demand deposits or deposits that                 
               the depositor may withdraw by check or similar                         
                means for payment to third parties or others;                         
          (iii)  will not accept any savings or time deposit of less                  
                    than $100,000;                                                    
               (iv)  will maintain no more than one office that accepts               
               (v)  will not engage in the business of making commercial              
                    loans; * * *                                                      
          Petitioner subscribed to 175,000 shares of the common stock of              
          WFNNB (par value $17.5 million).  In consideration of receipt of            
          those shares, petitioner contributed all of the stock of Limited            

          5    In 1986, Ralph E. Spurgin believed that the Comptroller of             
          the Currency had put a moratorium on the organization of nonbank            
          banks that would issue credit cards.                                        

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