Board of Directors
The La Porte Savings Bank
710 Indiana Avenue
La Porte, Indiana 46350
Members of the Board:
We have reviewed your request to establish a wholly-owned foreign subsidiary to be located in and organized under the laws of the Cayman Islands. The application was filed by The La Porte Savings Bank ("the Bank") pursuant to Section 347.108(d) of the Federal Deposit Insurance Corporation's ("FDIC's") Rules and Regulations. It is understood that the foreign subsidiary will only hold and manage a portion of the Bank's investment portfolio. Pursuant to the authority vested in me by the FDIC's Board of Directors, I have today approved the application.
Your application was approved subject to the following conditions:
1. In addition to the records, controls, and reports required by Section 347.110(a) of the FDIC Rules and Regulations, the Bank shall take all steps within its control to ensure that the foreign subsidiary and its officers, employees, agents, independent contractors, and affiliates provide the Bank with access to information and records concerning foreign subsidiary business operations and transactions as permitted under Cayman law. This includes maintaining a duplicate set of the subsidiary's books at the Bank's home office. In addition to the requirements of Section 347.110(b) of the FDIC Rules and Regulations, the Bank shall, upon request in connection with a FDIC examination of the Bank or otherwise, provide such information to the FDIC.
2. This consent is granted based on the facts and circumstances presented by the Bank or otherwise known to the FDIC in connection with this request. The activities of the foreign subsidiary shall be limited to the holding and managing of a portion of the Bank's investment securities portfolio. The Bank shall notify the FDIC of any significant change in facts or circumstances and the FDIC shall have the right to alter, suspend, or withdraw its approval.
3. The Bank shall obtain all necessary and final approvals from the appropriate foreign and domestic authorities prior to opening the foreign subsidiary.
4. If the proposed foreign subsidiary has not opened within 12 months from the date of this approval, 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 12-month period.
Questions relating to this matter may be referred to Assistant Regional Director Thomas J. Wochos or Case Manager Betty J. Valdes in the Chicago Regional Office at 312-382-7500.
Michael J. Zamorski
Division of Supervision