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Belk National Bank

IN RE: Belk National Bank
Norcross, Gwinnett County, Georgia
Application for Federal Deposit Insurance (Bank Insurance Fund)

ORDER

The undersigned, acting under delegated authority, has fully considered all relevant facts and information relating to the factors of Section 6 of the Federal Deposit Insurance Act regarding the application for federal deposit insurance for Belk National Bank, a proposed new bank to be located at 1890-D Beaver Ridge Circle, Norcross, Gwinnett County, Georgia, and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement, that the application submitted by Belk National Bank for federal deposit insurance be and the same hereby is approved subject to the following conditions:

1. That beginning paid-in capital funds of not less than $2,000,000 be provided, of which not less than $1,000,000 shall be allocated to common stock and $1,000,000 to surplus;

2. That the Tier 1 capital to assets ratio be maintained at not less than 8 percent during the first three years of operation;

3. That any changes in proposed management or proposed ownership (10 percent or more of stock including new acquisitions of or subscriptions to 10 percent or more of the stock) will render this commitment null and void unless any such change in proposed management or proposed ownership is approved by the Atlanta Regional Director prior to opening the bank;

4. That federal deposit insurance shall not become effective unless and until the applicant has been established as a national bank, has authority to conduct a banking business and has been fully approved by the Comptroller of the Currency to be established and operated as a bank;

5. That the insured institution shall be engaged in the business of receiving deposits, other than trust funds;

6. That until the conditional commitment herein granted becomes effective, the Corporation shall have the right to alter, suspend, or withdraw said commitment should any interim development be deemed by the Corporation to warrant such action; and,

7. That if federal deposit insurance has not become effective within twelve months from the date of the ORDER, or unless, in the meantime, a request for an extension of time has been approved by the Corporation, the consent granted shall expire at the end of the said twelve-month period.

Dated at Washington, D.C., this day of February, 1999.

FEDERAL DEPOSIT INSURANCE CORPORATION

By: Mark S. Schmidt, Associate Director
Division of Supervision


FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Belk National Bank
Norcross, Gwinnett County, Georgia
Application for Federal Deposit Insurance (Bank Insurance Fund)

STATEMENT

Pursuant to the provision of Section 5 of the Federal Deposit Insurance Act (12 U.S.C. ? 1815), an application for federal deposit insurance has been filed for Belk National Bank, a proposed new limited purpose credit card bank, to be located at 1890-D Beaver Ridge Circle, Norcross, Gwinnett County, Georgia.

Belk National Bank will be a wholly-owned subsidiary of Belk, Inc., a full-line merchandise retailer headquartered in Charlotte, North Carolina. Belk, Inc., operates approximately 224 stores in 13 states, located primarily in North Carolina, South Carolina, Virginia and Georgia. Belk, Inc., has offered to its customers a credit card that can only be used in its stores and wishes to transfer its present and future credit card receivables to Belk National Bank in order to benefit from the uniform credit card interest rate and fee regulations afforded a national bank. While Belk National Bank will be headquartered in Norcross, Georgia, some of the functions related to the credit card program will be performed at the corporate headquarters of Belk, Inc., in Charlotte, North Carolina.

The applicant is to be established under the provisions of the Competitive Equality Banking Act (CEBA). As a credit card bank, Belk National Bank will engage only in credit card operations, will not accept demand deposits, will not accept savings or time deposits of less than $100,000, and will not make commercial loans.

Belk National Bank's capital, management, financial history, future earnings prospects, ability to meet the convenience and needs of the community, consistency of corporate powers, and the risk to the Bank Insurance Fund are acceptable.

Accordingly, based upon careful evaluation of all available facts and information, the Director, acting under delegated authority, has concluded that approval of the application is warranted.

ASSOCIATE DIRECTOR
DIVISION OF SUPERVISION



Last Updated 03/24/2011 Legal@fdic.gov