97-13

January 30, 1997

Re: U.S. District Court for the Central District of California,
_______ Bank, etc. v. _______. et al., Case Number _________;
and In the Matter of the Estate of _________,

Dear Ms. __________:

This will confirm our telephone conversation of November 20, 1996.

As we understand it, you represent the Federal Deposit Insurance Corporation (“FDIC”) as receiver of ________ in the referenced actions. Those actions, among other things, involve a claim by a ________ for damages on the grounds that ________, as trustee, allegedly failed to faithfully perform and execute a trust of which ________ was a beneficiary.

Pursuant to Section 1540(b) of the Financial Code, ________ has on deposit with the State Treasurer securities with a fair market value of approximately $100,000 as security for the faithful performance and execution of private trust accepted by it (the “Private Trust Deposit”). In addition, pursuant to Sections 1540(b) and 1541 of the Financial Code, ________ has on deposit with the State Treasurer securities with a fair market value of approximately $500,000 as security for the faithful performance and execution of court trusts accepted by it (the “Court Trust Deposit”). (The Court Trust Deposit and the Private Trust Deposit will be referred to collectively in this letter as the “Deposits.”)

In our view, the Deposits are not part of the general assets of the ________ receivership. Pursuant to Financial Code Section 1546, the Deposits are available exclusively to satisfy claims relating to ________’s failure to faithfully perform or execute trusts accepted by it. Furthermore, pursuant to Financial Code Sections 1540, 1541, and 1546, the Private Trust Deposit is a fund separate and distinct from the Court Trust Deposit. The Court Trust Deposit is available to satisfy claims relating exclusively to court trusts, and the Private Trust Deposit is available exclusively to satisfy claims relating to private trusts.

You assured me that the FDIC has not taken a position before the Court that is contrary to the views stated above.

We request that, if and when you file any papers with the Court relating to the Deposits, you simultaneously serve a copy of those papers on the State Banking Department, to the attention of myself. By copy of this letter to Mark Simpkins, we request that he do the same.

If you have any questions, please feel free to contact me at (415) 263-8512.

Very truly yours,

CONRAD W. HEWITT
Superintendent of Banks

By

THOMAS M. LOUGHRAN
Senior Counsel

TML:arc

cc: Mark B. Simpkins

bcc: W. J. Mix
J. F. Carrig

Last updated: Jun 28, 2019 @ 9:24 am