Stump’s Bid to Purchase Ramona S&L; Is Rejected

Donald Stump, a former Orange County banker, has become president of Ramona Savings & Loan Assn. in Orange, but his bid to buy the institution for $12 million has been rejected by the state Department of Savings and Loan.

The agency, quoting statutory language regarding an owner’s qualifications, listed a variety of factors that could be cause for the rejection but did not give the exact reason, Stump said Wednesday. Department officials could not be reached for comment.

The department denied Stump’s application on June 23, but he said he did not get notice of it until after he took over as president on July 1, the day after which the state agency was required to issue its ruling.

Stump said he already has $12 million of his own money in escrow at Bank of America for the purchase, and he believes some technicality in the application caused its rejection. He said he hopes to meet with agency officials sometime next week to resolve any problems.

Stump, who earned most of his money as a real estate developer, was a bank examiner for the U.S. comptroller of the currency for four years and worked for 10 years at the former Newport National Bank and at American State Bank, now American Interstate Bank, where he was president.