Orders issued under Bank Holding Company Act - Legal Developments - acquisition of RBC Centura Bank by Royal Bank of Canada

Federal Reserve Bulletin,  August, 2002  by Robert DeV. Frierson

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Conclusion

Based on the foregoing, the Board has determined that the proposal should be, and hereby is, approved. The Board's approval is specifically conditioned on compliance by RBC and Bank with all the commitments made in connection with the applications. The Board's determination also is subject to all the conditions in Regulation Y, including those in sections 225.7 and 225.25(c) (12 C.F.R. 225.7 and 225.25(c)), and to the Board's authority to require such modification or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to ensure compliance with, or to prevent evasion of, the provisions and purposes of the BHC Act and the Board's regulations and orders issued thereunder. The commitments and conditions relied on by the Board in reaching this decision shall be deemed to be conditions imposed in writing by the Board in connection with its findings and decision and, as such, may be enforced in proceedings under applicable law.

The merger may not be consummated before the fifteenth calendar day after the effective date of this order, and not later than three months after the effective date of this order, unless such period is extended for good cause by the Board or the Federal Reserve Bank of Richmond, acting pursuant to delegated authority.

By order of the Board of Governors, effective June 24, 2002.

Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, and Olson.

Appendix

Addresses of Branches to be acquired by Bank

1. 1052 Peachtree Industrial Blvd. Suwanee, GA 30024

2. 4855 Briarcliff Rd. Atlanta, GA 30345

3. 1300 Dunwoody Village Pkwy. Dunwoody, GA 30338

4. 2710 Wesley Chapel Rd. Decatur, GA 30034

5. 1500 Mansell Rd. Alpharetta, GA 30201

6. 4650 Jonesboro Rd. Union City, GA 30291

7. 9115 Roosevelt Hwy. Palmetto, GA 30268

8. 1585 Southlake Pkwy. Morrow, GA 30260

9. 7906 Tara Blvd. Jonesboro, GA 30236

10. 2550 Odum St. Snellville, GA 30045

11. 395 Grayson Hwy. Lawrenceville, GA 30045

12. 494 Indian Trail Rd. Lilburn, GA 30247

13. 5424 Buford Hwy. Doraville, GA 30340

14. 4419 Cowan Road Tucker, GA 30084

(1.) RBC would engage in lending and lending-related activities through its acquisition of Eagle subsidiaries, Eagle Bancshares Capital Group, Inc.; Prime Eagle Mortgage Corporation; and Eagle Service Corporation, all in Tucker, Georgia, and TFB Management Inc., TFB Management (NC) Inc., and TFB Management (RE) Inc., all in Wilmington, Delaware. RBC also would engage in discount brokerage activities through its acquisition of Eagle Service Corporation, and in community development activities through its acquisition of Eagle's subsidiary, Hampton Oaks, LLP, also in Tucker.

(2.) The transaction would be effected through a series of steps. Eagle would merge with and into a wholly owned subsidiary of Royal Bank, with Eagle surviving. Eagle then would merge with and into Bank, and Bank would be the surviving entity. Immediately thereafter, Tucker would merge with and into Bank, and Bank would be the survivor.