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CIT OnLine Bank

FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: CIT OnLine Bank
Salt Lake City, Salt Lake County, Utah
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 CIT OnLine Bank, a proposed new Utah industrial loan company to be located at 2855 E. Cottonwood Parkway, Suite 110, Salt Lake City, Salt Lake County, Utah, 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 CIT OnLine 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 $16,000,000 be provided, and that a ratio of Tier 1 Leverage Capital to total assets of not less than eight percent will be maintained throughout the first three years of operation;

2. 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 stock, will render this commitment null and void unless such proposal is approved by the Regional Director of the FDIC's San Francisco Regional Office (Regional Director) prior to opening of the bank;

3. That prior to the effective date of federal deposit insurance, the institution will employ a chief financial officer acceptable to the Regional Director;

4. That the institution will operate within the parameters of the business plan submitted to the FDIC. Furthermore, during the first three years of operations, the institution will notify the Regional Director of any proposed major deviation or material change from the submitted plan 60 days before consummation of the change;

5. That the institution will obtain an audit of financial statements by an independent public accountant annually for at least the first three years after deposit insurance is effective, furnish a copy of any reports by the independent auditor (including any management letters) to the appropriate FDIC Regional Director within 15 days after their receipt by the bank and notify the Regional Director within 15 days when a change in its independent auditor occurs;

6. That adequate blanket bond coverage be obtained;

7. That an accrual accounting system be adopted for maintaining the bank's books;

8. That the insured institution shall be engaged in the business of receiving deposits;

9. That federal deposit insurance shall not become effective unless and until the applicant has been established as an industrial loan company (not a member of the Federal Reserve System), that it has authority to conduct a banking business, and that its establishment and operation as a bank have been fully approved by the appropriate State Authority;

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

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

Dated at Washington, D.C. this day of October, 2000.

FEDERAL DEPOSIT INSURANCE CORPORATION

By________________________________
John M. Lane
Associate Director
Division of Supervision


FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: CIT OnLine Bank
Salt Lake City, Salt Lake County, Utah
Application for Federal Deposit Insurance (Bank Insurance Fund)

STATEMENT

Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C.? 1815), an application for federal deposit insurance has been filed for CIT OnLine Bank, a proposed new Utah industrial loan company, to be located at 2855 E. Cottonwood Parkway, Suite 110, Salt Lake City, Salt Lake County, Utah.

The applicant's parent, The CIT Group, Inc., is a publicly held Delaware corporation that finances and leases a wide variety of real and personal property. The parent company operates worldwide with most business being conducted in the United States and Canada. The CIT Group, Inc., is 27% owned by a registered foreign bank holding company, Dai-Ichi Kangyo Bank Ltd. (DKB), chartered under the laws of Japan. DKB also wholly-owns a U.S. bank, Dai-Ichi Kangyo Bank of California, Los Angeles, California.

The proposed institution will provide financing for the purchase of electronic products and services offered by hundreds of vendors. Small amounts of revolving consumer credit will be offered to selected vendor customers over the telephone and by the Internet. The applicant will operate from a single location and marketing efforts will be conducted through the applicant's and vendors' Internet web sites. Deposits will be limited to $2,000,000 of parent company funds and brokered deposits. The parent will provide additional funding from public borrowing sources.

For the purposes of this proposal, capital is adequate, projections for future earnings prospects are favorable, management is considered satisfactory, and the investment in fixed assets is reasonable. Corporate powers to be exercised are consistent with the purpose of the Federal Deposit Insurance Act. No formal objections to this proposal have been filed and no undue risk to the insurance fund is apparent.

Accordingly, based upon careful evaluation of all available facts and information, the Associate 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