RegAlertIndividual decision · DOBS · 27 Mar 2002
Non-Objection to Capital Securities Issuance by Pennsylvania State-Chartered Bank
The Pennsylvania Department of Banking issued a non-objection letter to a Doylestown bank regarding its proposal to issue $2 million in unsecured 15-year capital securities. The Department clarified that while state law requires amortization, the bank may rely on federal regulations 12 CFR § 3.100 and § 5.47 which do not mandate such provisions. This approval is contingent upon the facts remaining consistent with those stated in the bank's March 13, 2002, notice.
(717) 783-8240
March 27, 2002
Dear:
This letter responds to the notification letter submitted by you on behalf of [redacted] (the “Bank”), Doylestown, Pennsylvania, a Pennsylvania State-chartered bank, to the Department of Banking (the “Department”) regarding the Bank’s proposal to issue capital securities in the form of a $2 million unsecured, 15- year note, pursuant to the authority granted by Section 201(c) of the Banking Code of 1965 (7 P.S. § 201(c)). Specifically, the bank intends to utilize 12 CFR § 3.100 and § 5.47 to engage in the aforementioned proposed activity. Although
Section 1105 of the Banking Code of 1965 allows for the issuance of capital
securities, Section 1105(c) requires a provision for amortization. The abovecited federal regulations do not require amortization. Please be advised that the Department does not object to the Bank utilizing 12 CFR § 3.100 and § 5.47 to issue the above-noted capital securities. The Department’s non-objection is based on the facts and representations as stated in the Bank’s notice provided to the Department in its March 13, 2002, letter and attached notice form. Any changes in the facts could result in an amendment or reversal of the Department’s non-objection. Please feel free to contact me if you have any questions regarding this matter. Very truly yours, Richard S. DeMartino Director - Bureau of Supervision & Enforcement RSD:JAM:kse cc: William L. Gaunt FRB - Philadelphia Reginald Evans Chief Counsel-DOB Joseph A. Moretz Manager – Corporate Applications-DOB
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Source: Pennsylvania Department of Banking and Securities — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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