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Comptroller Approves Plan For Establishment Of Bank
(Continued from Page One) against which the new bank will or the new bank will represent proximately against the new bank will cash available on the opening In other depositor creditor wishes withdraw the amount guaranteed on the day of the the new bank will available cash to meet the payments The bank on the day of its opening be 100 percent liquid, Copies ereditors' agreement published will mailed to every within the next for day two their study and approval, and after the signing, be returned the reorganization the First National Durham. Board Of Directors The directors the new SherDr. Passett, M. Briggs, Sykes, and H. Salmon. The will prestrust and cashier. These will be of proven banking and and standing and will subject to the approval of the comptroller of the currency, was None the officers or directors of the closed First bank will have any connection with the new The incoming board of directors will pass resolution and place on the minutes of the new bank, making absolutely for any officer employe the bank to borrow directly indirectly through guarfor others from the bank. All possible safeguards and precautions will be taken by the board directors to keep the new institution in condition and free any entanglements deeds which jeopardize the bank. aim of the committee, It was to complete the signing up of the depositors the next 30 days and reopen the bank soon thereafter.
Liquidating Trust The the First bank by the new will liquidating trust, and trust will be issued on the day the opening of the bank with transferred the trust will of assets improved ought to pay 100 percent the dollar. Doubtful assets will pay percentAssets losses will also have probable recovery of certain percentage. These represent approximately twice the amount value amount which the liquidating have to pay out make 100 percent payment. dition to these assets the bank buildwhich appraised will be transferred to the liquidating trust for the benefit of the depositors. The total amount to make up 100 cents the dollar amounts $614,000, and under improved conditions expected the depositors should receive considerable amount the guaranIn addition to that, the old one-half their the new amounting to additional guarantee to the
Advantageous Plan The advantages of the plan are First, the depositors will receive cash upon the opening the and regular 120 per evidenced by trust certificates for the balance. Second, liquidating trust certificates representing two and times in the them be administered by the conjunction with selected by the depositors free of cost or Third, the creation of new bank provide community with stantial bank, such bank be 100 percent liquid on the day of the openThe committee has spent over MX months time and considerable money in working sound and practical plan purely for the benefit of the depositors and this plan has the fullest approval the comptroller currency and the Reconstruction Corporation. They now will this plan depositors for consideration and approval emphasize the that the sooner the depositors sign this, the sooner will be reopened and payments to Creditor's Agreement The creditors' follows: The credit tor the First National Bank the City of and State North referred the bank), in consideration the execution of like agreements by such of the other creditors of said suspended bank may and in confurther the the part the C. W. Council, George Salmon to undertake the and of new bank under the National the United States, be the National Bank the purpose taking the and the the First National Bank the terms and and in furtherance the plan herein outlines, and make possible the carrying plan, does hereby sell, and unto her its claim said suspended bank. in trust, for the uses and and subject to the conditions and requirements follow ing:
The undersigned to receive from the new bank soon as opened for business payment percent of her claim against the suspended bank (as the appeared upon the books the suspended bank suspension) said 50 percent paid the undersigned by the new bank in the following manner, "Twenty percent the said percent paid the opening of the new cash checking account subject to with. in savings account undersigned may prefer "The 80 percent balance sald percent is paid in eight equal installments of percent each resented certificates deposit the new bearing interest at the of said certificates to One dated opening bank and to May the dated May 1933 and mature consecutively at One Hundred and twenty day intervals from May 1933 until the entire price full. "It however that all any part any deposit may be and paid, by new bank quarterly the publication dally said intended for one daily paper Durham and that the said of deposit offered paid periods shall not thereafter bear interest. The said new bank is capital structure $300,000 consisting of capital and surplus the same represented by shares of $20 and surplus of $10 per share understood made condiof this agreement) that half of the capital stock by certain the scribers with liquidating trustees hereinafter for the benethe undersigned other fit of agreements this, the sole purpose of they paid the suring remaining 50 percent their claims "It understood that is contemplated that the capital structure said bank may be increased amount greater than above such increase decided to to be considered of this agreement undersigned shall with other creditors ecuting like agreements this an equal opportunity the scribers the original capital bank, to to said said additional capital upon the foregoing basis $30 per and in event subscription by the undersigned said additional said bank authorized to charge new the amount subscription the aforesaid payment of 20 percent said 50 percent due the upon opening of said new bank
The aforesaid committee when said new bank has been organized, transfer said new bank the undersigned's claim against suspended bank, to enable the new bank the in part in purchasing and acquiring the sets of suspended from the the new bank its successor interest, authorized the assig nee of proof of its own name the receiver said and obtain the the same issued favor the new and committee. new successor in interest cancel, and surrender said as consideration for the and by the of the assets said bank: and said the Comptroller the Currency shall thereby released claims undersigned participation the assets of said suspended and the the assets said bank said new bank shall operate first final dividend said receiver the undersigned full payment present claim bank The new bank retain its such portion of the (selected by acquired from the receiver the suspended bank shall equal the liabilities of the sus. pended bank absolutely and paid by pursuant to this ment, agreements executed other creditors, and under its contract with said receiver the acquisition said assets, said amount assets retained said bank to be subject to adjustment amount to equal the actually found to be necessary acquisition, to compensate the new bank for the total liabilities assumed and or The assets so retained as Its property by said bank are taken value adjustment of date transfer the asset terest the interest be tavalue books the pended value as may be agreed upon the new bank and the receiver the suspended and approved the Comptroller the Currency the United States acquired by the new the (that to say, the not by the new bank its own shall be transferred by the new to liquidattrustees (who shall and who shall be selected by the Board of Directors of the bank) for the purpose of deriving therefrom funds to pay, far as the 50 percent of the undersigned's claim against the suspended bank, after deducting from the of liquidation, the expenses, any, liquidation, the bank for any moneys the expenses the First National Bank the same is force, and subalso the right the new bank, until May 1st, 1935, to substitute any the assets retained its own property (or renewals thereof renewal made) for any the trusteed the proceeds liquidation of the same said change to the basis purchase price, which said acquired from said adjustment interest the date of exchange or "(5) understood that said obtaining loan from the Reconstruction Corporation to improve condition the assets acquired by the will be the banking premises of suspended tate of the the Corporation said liquidating are authorized liquidating trustees, mortgage $200,000 upon banking favor new for the 100 the retained by new its own property hereof said said new bank embodied list for purposes of said bank, have the from draw said said its for the sets included said list or Sald mortgage effective period substitution provided paragraph hereof said loan from said Finance fully repaid new bank said period of tion provided paragraph hereof, said new shall forthwith release banking building and premises from said Said mortgage may pledged said new the Finance Corporation security loan. The undersigned is to receive certificate representing the interest of the undersigned said trusteed assets liquidating trustees shall time time, (after expiration of the period distribute ratably the proceeds liquidation said trusteed assets the and the creditors entitled the and the claims thereon said participating creditors have been paid in full, together with interest upon the full amount their claims they existed against suspended bank for the period any part of the remain unpaid, surplus, any shall be delivered to such representative the stockholders said suspended bank as designed by stockholders receive surplus distributed representative the first, toward the pro sums paid by any of shareholders assessupon and second the surplus any then after to be tributed. pro among all the shareholders suspended bank liquidating trustees shall have the liquidating said trusteed assets, to file thereon, mortgages and purchase the property sale benefit the trust to in their ment liquidation said assets, either the and with the and control though said trustees own right liquidating shall also have at the expense the trust to such in their judgment, for the protection said any time after expiration of period provided in para hereof said liquidating trus. tees the the amount said certifi cates, sell the remaining trusteed the highest bidder for given such of the and place said may by the said and said trustees the proceeds of said trusteed assets hand the and for the purposes such the new bank may purchaser part said residue assets. During the period said trusteed liquidation by said liquidating
