Malvern Case Study Of Business Law Essay
How does Malvern describe their “principal business” on page 1?
The Bank’s principal business consists of attracting deposits from businesses and the general public primarily in Chester County, Pennsylvania investing those deposits, together with borrowings and funds generated from operations, in one- to four-family residential real estate loans, construction and development loans, commercial and multi-family real estate loans, commercial business loans, home equity loans and lines of credit and other consumer loans, as well as investing in investment securities
2. What transaction did Malvern undertake in October 2013? What was the stated motivation for the transaction? What was the cost?
Malvern completed the sale of a substantial portion of their problem loans in a …show more content…
Who is the “OOC” and what is the “Formal Agreement?” What restrictions are in place due to the formal agreement?
“OCC” stands for Office of the Comptroller of the Currency. “Formal Agreement” is an agreement bank signed with the OCC to addressing and resolving the issues raised by OCC.
Here are several restrictions:
• Malvern Federal Savings Bank is required to provide the OCC with prior notice of any new director or senior executive officer;
• Malvern Federal Savings Bank is restricted from making any “golden parachute payments,” as defined;
• Malvern Federal Savings Bank may not enter into, renew, extend or revise any contractual arrangements related to compensation or benefits with any director or officer without receiving prior written non-objection from the OCC;
• Malvern Federal Savings Bank may not declare or pay any dividends or make other capital distributions, such as repurchases of common stock, without the prior written approval of the OCC;
• Malvern Federal Savings Bank’s ability to engage in transactions with affiliates, as defined, is restricted; and
• Malvern Federal Savings Bank may not engage in the use of brokered deposits without the prior written non-objection of the
The Bank’s principal business consists of attracting deposits from businesses and the general public primarily in Chester County, Pennsylvania investing those deposits, together with borrowings and funds generated from operations, in one- to four-family residential real estate loans, construction and development loans, commercial and multi-family real estate loans, commercial business loans, home equity loans and lines of credit and other consumer loans, as well as investing in investment securities
2. What transaction did Malvern undertake in October 2013? What was the stated motivation for the transaction? What was the cost?
Malvern completed the sale of a substantial portion of their problem loans in a …show more content…
Who is the “OOC” and what is the “Formal Agreement?” What restrictions are in place due to the formal agreement?
“OCC” stands for Office of the Comptroller of the Currency. “Formal Agreement” is an agreement bank signed with the OCC to addressing and resolving the issues raised by OCC.
Here are several restrictions:
• Malvern Federal Savings Bank is required to provide the OCC with prior notice of any new director or senior executive officer;
• Malvern Federal Savings Bank is restricted from making any “golden parachute payments,” as defined;
• Malvern Federal Savings Bank may not enter into, renew, extend or revise any contractual arrangements related to compensation or benefits with any director or officer without receiving prior written non-objection from the OCC;
• Malvern Federal Savings Bank may not declare or pay any dividends or make other capital distributions, such as repurchases of common stock, without the prior written approval of the OCC;
• Malvern Federal Savings Bank’s ability to engage in transactions with affiliates, as defined, is restricted; and
• Malvern Federal Savings Bank may not engage in the use of brokered deposits without the prior written non-objection of the