On January 22, the Office of the Comptroller of the Currency (OCC) announced its first use of a “shelf charter” for the acquisition of a failed bank, allowing Bond Street Bank, National Association (Bond Street), to acquire a failed Florida state-chartered bank. Specifically, Bond Street was allowed to acquire Premier American Bank, a state-chartered bank closed on the same day by the Florida Department of Financial Services, Division of Banking, which in turn appointed the Federal Deposit Insurance Corporation as receiver.

The “shelf charter” is a new mechanism that involves the granting of preliminary approval to investors for a national bank charter. The charter is inactive (i.e., on the “shelf”) until such time as the investor group is in a position to acquire a troubled institution. By granting entities shelf charters, the OCC has expanded the pool of potential buyers available to troubled institutions.

Bond Street was granted its shelf charter on October 23, 2009.

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