FDIIFEDERAL DEPOSIT INSURANCE CORPORA!ION
FOR IMMEDIATE RELEASE
PR-176-91 (11-21-91)
NEWS RELEASE
Press cart:act:
An:irew Porterfield (202) 898-6593
FDIC AGREES 'ID SEIL cmI'AIN FAILED BANK ASSEI'S 'ID FLEEI'/NORSTAR
'!he FDIC Board of Directors has approved a pi:ogram all~ Fleet/Norstar'
Inc., Providence, Rhode Islan:i, to purc.hase certain performirg loans of the
failed bank sul:sidiaries of Bank of New Erglarxi corporation arxi Maine Savirgs
Bank, Portlan:i. '1bese loans are currently bein3' managed for the FDIC by REXX>IL
Management corporation, Inc., Boston, a sul:sidiary established by Fleet/Norstar
to rrana.ge the pool of classified loans arxi other assets aSStmed fran these
banks.
Fleet arxi the FDIC agreed to the purchase of the loans so they can be
haniled in an Ol'XJOll'X3' bankin} relationship U1"rler which the bank will be better
able to iooet the future furll::lin3' needs of the borrc:,.,Jers. An ilrp:>rtant objective
of this program is to benefit the region's depressed econany.
AlxJUt 4,800 loans ~ abc.ut $1.4 billion may qualify urrler the purc.hase
program. To qualify, these loans must be less than 30 days past due, have a
cx::>llateral-to-loan ratio of at least 75 percent, arxi be unrelated to other
assets in the pool. Also, the loan canoot be subject to pen::1irq litigation or
acy environmental problems, arxi full recavery of the loan annmt nust aR)9ar
likely.
'Ihese loans are tedmically classified because of either a drop in the
''value of collateral or for other reason.s, tut are considered ''performirg" loans
because ~' payments are current. tJrx1er the terms of the pr.og:cam,
Fleet/Norstar 'WQlld have the right to return acy of these assets at lx>ak
(rore)
FEDERAL DEPOSIT INSURANCE CORPORATION, 550 Seventeenth SL, N.W., Washington, D.C. 20429 • 202-898-6996
FOR IMMEDIATE RELEASE
PR-176-91 (11-21-91)
NEWS RELEASE
Press cart:act:
An:irew Porterfield (202) 898-6593
FDIC AGREES 'ID SEIL cmI'AIN FAILED BANK ASSEI'S 'ID FLEEI'/NORSTAR
'!he FDIC Board of Directors has approved a pi:ogram all~ Fleet/Norstar'
Inc., Providence, Rhode Islan:i, to purc.hase certain performirg loans of the
failed bank sul:sidiaries of Bank of New Erglarxi corporation arxi Maine Savirgs
Bank, Portlan:i. '1bese loans are currently bein3' managed for the FDIC by REXX>IL
Management corporation, Inc., Boston, a sul:sidiary established by Fleet/Norstar
to rrana.ge the pool of classified loans arxi other assets aSStmed fran these
banks.
Fleet arxi the FDIC agreed to the purchase of the loans so they can be
haniled in an Ol'XJOll'X3' bankin} relationship U1"rler which the bank will be better
able to iooet the future furll::lin3' needs of the borrc:,.,Jers. An ilrp:>rtant objective
of this program is to benefit the region's depressed econany.
AlxJUt 4,800 loans ~ abc.ut $1.4 billion may qualify urrler the purc.hase
program. To qualify, these loans must be less than 30 days past due, have a
cx::>llateral-to-loan ratio of at least 75 percent, arxi be unrelated to other
assets in the pool. Also, the loan canoot be subject to pen::1irq litigation or
acy environmental problems, arxi full recavery of the loan annmt nust aR)9ar
likely.
'Ihese loans are tedmically classified because of either a drop in the
''value of collateral or for other reason.s, tut are considered ''performirg" loans
because ~' payments are current. tJrx1er the terms of the pr.og:cam,
Fleet/Norstar 'WQlld have the right to return acy of these assets at lx>ak
(rore)
FEDERAL DEPOSIT INSURANCE CORPORATION, 550 Seventeenth SL, N.W., Washington, D.C. 20429 • 202-898-6996
-2-
value to the FDIC before July u, 1994. 'lhis is the same schedule for
ret:urni.rxj assets that is contained in the original p..irchase an:l ~ion
agreement between the FDIC an:l FleetfNorstar.
Fleet/Norstar pll'.'dlased Maine savin;;Js Bank, which faile1 on February 1,
1991, an:l the three bridge banks established by the FDIC follOirlm;J the failure
on January 6, 1991, of Bank of New Fn;Jlan:l, N.A., Boston; '1he Connectia.It Bank
& Trust carpany, N.A. , Hartford; an:l Maine National Bank, Portlan:l.
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value to the FDIC before July u, 1994. 'lhis is the same schedule for
ret:urni.rxj assets that is contained in the original p..irchase an:l ~ion
agreement between the FDIC an:l FleetfNorstar.
Fleet/Norstar pll'.'dlased Maine savin;;Js Bank, which faile1 on February 1,
1991, an:l the three bridge banks established by the FDIC follOirlm;J the failure
on January 6, 1991, of Bank of New Fn;Jlan:l, N.A., Boston; '1he Connectia.It Bank
& Trust carpany, N.A. , Hartford; an:l Maine National Bank, Portlan:l.
#####