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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

FDIC to Offer Smaller Dollar/Geographically Focused Loan Pools in Structured Transactions

This notice is provided for information purposes only to alert individuals or business entities that may be interested in being a bidder or a member of a consortium of bidders in structured transactions formed by the Federal Deposit Insurance Corporation in its capacity as receiver for failed depository institutions ("FDIC") to dispose of loans and related assets. In these transactions, the FDIC contributes loans to a newly formed entity, typically a limited liability company ("LLC") and then auctions ("sells") off an equity interest (e.g., 40%) in the LLC to a bidder or consortium of bidders. The winning bidder becomes the managing partner for the LLC and is responsible for managing and liquidating the assets pursuant to the LLC agreement and other transaction documents.

The FDIC expects to be conducting multiple auctions of equity interest in structured transactions over the next few months. The asset pools in those LLCs may include commercial real estate loans, commercial acquisition, development and construction loans, residential acquisition, development and construction loans, commercial loans secured by assets other than real estate, or single family residential loans, and related assets such as real property. In order to attempt to increase the number of participants in the FDIC's structured transactions, the offered asset pools held in LLC may be $200 million or less within a structured transaction and be geographically focused (e.g., west, east). The FDIC believes that, by offering geographically focused and smaller dollar pools, it will also support the FDIC's activities to provide opportunities to increase the diversity of bidders or consortiums of bidders.

If you are interested in participating as a prospective bidder in a structured sale, you must be "pre-qualified" in order to receive the initial structured sales notices. If you are not already pre-qualified, the process to become prequalified involves completing three documents - (1) Purchaser Eligibility Certification; (2) Pre-Qualification Request; and (3) Bidder Contact Information Form. Prospective bidders must complete all three documents and submit them to the FDIC for review and approval. Prospective bidders will receive an email notice from the FDIC within 2-3 days after submission of the completed required documents on whether their pre-qualification status has been approved or disapproved.

Once a bidder is approved for Pre-Qualification, that bidder will receive email notices of upcoming structured sales transactions. Pre-qualification does not necessarily qualify a prospective bidder to participate in all asset sales, and the FDIC reserves the right to require any prospective bidder to meet additional or different qualification criteria for any particular asset sale at the time of the particular sale, and to complete and submit transaction specific qualification requests and other bidder qualification materials as well as confidentiality agreements, financial and other information. In order to preserve its status as a pre-qualified bidder for certain sales, a newly executed Pre-Qualification Request and Purchaser Eligibility Certification must be delivered to the FDIC every six months.

How to Pre-Qualify

If you wish to become pre-qualified, please complete and submit the Pre-Qualification Request, Purchaser Eligibility Certification, and Contact Information Form, all of which can be found under PREQUALIFICATION PROCESS on the FDIC website at http://fdic.gov/buying/financial/index.html. Once you enter the website, click on the "Asset Sales" tab at the top of the page and then the "Financial Asset Sales" link on the left of the screen. This will take you to the page that contains links to a more detailed explanation of the process and the documentation to be completed.

Once completed, you should deliver the completed forms as follows:

If in hard copy to:
FDIC - DRR/Marketing Section
550 17th St NW; Office F-7024
Washington, DC 20429
Attention: Prospective Bidder Materials Enclosed

If electronically to:
by facsimile, to: (202) 898-8912
by e-mail to: prospectivepurchaser@fdic.gov

The FDIC reserves the right to refuse to pre-qualify any prospective bidder that fails to meet the pre-qualification or sale specific criteria.

If you are interested in becoming pre-qualified to receive sales notices under upcoming structured sales, we request that you submit your pre-qualification documentation as soon as possible. Thank you for your interest and cooperation. We look forward to working with you. If you have questions, please send them by email to prospectivepurchaser@fdic.gov.

This notice does not constitute an offer to sell or a solicitation of an offer to purchase any assets (or interest therein). Further information concerning structured sales will be furnished only to, and bids will be accepted only from, bidders who certify that they have such knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks, and the resources to bear the risks, involved with purchasing an interest in such assets, and who meet the other criteria required to become a qualified bidder. The purchase of an interest (direct or indirect) in assets sold in structured sales involves substantial risk, and prospective bidders should, along with their advisors, undertake such investigation as they deem advisable to evaluate the associated risks.