Metrocorp, Inc. - Page 4




                                        - 4 -                                         
          insures the deposit liabilities of participating savings                    
          associations; e.g., Community Federal Savings Bank (Community).             
          Each financial institution that participates in the FDIC’s                  
          insurance program is generally assessed a semiannual charge                 
          (premium) equal to its liability for deposits multiplied by the             
          applicable rate set forth in 12 U.S.C. sec. 1817(b)(1)(C) or (D)            
          (1994).  Any amount assessed against a participant in the BIF is            
          deposited into the BIF and is available to the FDIC for use with            
          respect to any BIF participant.  Any amount assessed against a              
          participant in the SAIF is deposited into the SAIF and is                   
          available to the FDIC for use with respect to any SAIF                      
          participant.                                                                
               Community is a failed savings association.  On October 16,             
          1990, Metrobank submitted to the FDIC a bid to consummate a                 
          transaction (transaction) under which Metrobank would acquire a             
          portion of Community’s assets and assume a portion of Community’s           
          deposit liabilities.  Because Community and Metrobank each                  
          insured its deposit liabilities through a different FDIC fund,              
          and Metrobank had agreed to assume Community’s deposit                      
          liabilities, which would be insured after the transaction by the            
          BIF instead of the SAIF, the transaction was a conversion                   
          transaction under 12 U.S.C. sec. 1815(d)(2)(B)(iv) (1994).                  
          Section 1815(d)(2)(B) of title 12 defines a "conversion                     
          transaction" as:                                                            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011