RE:
Virgin Islands Community
Bank's Application to
Acquire the Virgin Islands
Assets of Chase
Manhattan Bank
Whereas, on May 22, 2000, the Virgin Islands Banking Board ("the Banking Board") formally approved the application of Virgin Islands Community Bank ("VICB") to acquire the assets and assume the liabilities of the U.S. Virgin Islands branches of Chase Manhattan Bank subject to certain conditions; and
Whereas, VICB has petitioned for a ijiodifleation of several of the conditions as set forth in the Banking Board's Approval; and
Whereas, the Banking Board has engaged in an exhaustive reconsideration of the matter and voted thereon; and
Whereas, pursuant to 9 V.I.C. Section 61(a), as well as other pertinent provisions of the Virgin Islands Code, the Banking Board has the regulatory authority to grant all necessary approvals to VICB;
Now, therefore, the Banking Board hereby approves VICB's application the liabilities of the U.S. Virgin Islands Bank subject to the following conditions, which terms and provisions shall supersede the conditions set forth in the Approval of May 22, 2000:
(1) VICB shall provide to the Banking Board written verification from the Federal Home Loan Bank of New York ("FHLB") regarding VICB's eligibility for the line of credit in excess of $100 million which FHLB has agreed to extend to VICB, and which eligibility VICB agrees to maintain;
(2) VICB shall neither seek nor accept the renewal or extension of tax and other related benefits from the Industrial Development Commission ("IDC") at the expiration of VICB's current DC certificate;
(3) During the period that it receives IDC benefits, and not later than June 30th of each year, VICB as a corporate entity shall pay to the Division of Banking and Insurance, over and above current licensing fees, an annual fee of $400,000;
(4) VICB shall reorganize its Board of Directors to represent the three islands which VICB will serve; provided that there shall be a minimum of one director that is a. resident of each island; and provided, further, that VICH shall also reorganize its Board to ensure that no less than 30% of all directors will be indepvsdent of VICB as well as any other entity, affiliate or subsidiary related by ownership to VICB; and such independent outside director shall have the business acumen to provide valuable contributions to the oversight and management of VICB.
Further to the above, the Banking Board shall be notified in writing within ten (10) days of the appointment of each independent director and provided with a written description of his or her
qualifications for service as a director of VICB.
The directors covered by this provision shall begin service as a director of VICB no earlier than thirty (30) days from the Banking Board's receipt of the required notification or the Banking Board's issuance of a letter of nonobjection. This requirement shall apply to each independent director appointed for the first seven (7) years following VICB's acquisition of Chase Manhattan Bank's Virgin Islands assets; and
(5) During its operation as a banking entity in the U.S. Virgin Islands, VICB shall comply with all terms and conditions mandated by the Banking Board and the Federal Deposit
Insurance Corporation.
The approval granted herein is subject to all requisite federal and other regulatory approvals; and provided, rather, that said approval will become effective upon (i) the Banking Board's receipt of the verification from the FHLB with regard to credit availability as set forth in condition (I), and (ii) the written acceptance by VICB of conditions (2), (3), (4), and (5).
Dated: July 27, 2000
Gerard Luz James, II
Chairman
Virgin Islands Banking Board
