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BANK REOPENING PLAN DRAWN UP FOR DEPOSITORS
Reopening of the Old National Bank Trust will submitted for of deposiFriday outlining the plan for reorganization approved by the comptroller the United States treasury and directors of the Reconstruction Finance corporation.
Copies will be mailed to each of the than depositors, A. W. Witherspoon, conservator, announced today. The bank is expected to reopen with between $7,000,000 and $8,000.000 of deposits. This will include 40 per cent of deposits at the time the bank suspended, plus public funds and special trust accoutns now on deposit.
Twelve affiliated Inland Empire banks will the Old National The country banks, which will reopen on 100 per cent basis, include:
Open Country Banks.
Creston State bank, Harrington State bank, First National bank of Medical First National bank Moscow. Idaho, Security National Palouse, Prosser State bank, First National Reardan, First National Ritzville, State bank Spangle, Bank Spirit Lake, Idaho National Sprague and First State bank of Washtucna Deposits be released by the reopening the country banks amount to Mr. Witherspoon and W. Twohy, chairman the board of the Old National, returned just this week from Washington D. where they spent three weeks working out details of the plan and approval of officials of the and the office of the comptroller of the According to the plan, 40 per cent deposits will be released immediately. Certificates of participation in the reserved assets of the bank will be accepted by depositors the remaining 60 per These certificates will interest at the rate of per cent. and will be liquidated assets of the bank are realized upon after loans made by the repaid. The certificates will be paid off in full, plus interest, before any are paid stockholders the corporation. All plus the stock of the Old National and the affillated country banks, will be held as guarantee of the certificates and Mr. Witherspoon declared he confident all depositors eventually will receive 100 per cent of their The reorganization will become effective immediately upon approval of the plan in writing by representing cent of the gross amount deposits, as provided in the federal banking act of 1933. The date of the will depend upon the promptness with which depositors file consent the plan, Mr. Witherspoon pointed out.
Open by September
Observers predict the bank will reby September The reorganization has been made by loan of from the corporation as first exclusively the Chronicle Of this amount will be used for the purchase of preferred stock of the Old tional by the Investment and Securiate the bank preferred stock will be put with the security for this portion of the Another 400 will be used meet the obligations the Old tional of the date the recent bank furnish ditional funds for the rehabilitation of bank remaining of the advance chase the Old Na. affiliated now in the conservators operating the state stabilization These assets will purchased by the and Securities