Santa Ana : $70 Million to Be Paid to Creditors of Bank
The receiver for defunct Valencia Bank plans to pay $70 million out of a total of $93.4 million claimed by creditors and holders of uninsured deposits, according to papers filed in Orange County Superior Court on Wednesday.
The receiver, the Federal Deposit Insurance Corp., also plans to retain $8.1 million as a reserve against expenses and litigation. In addition, the FDIC proposed holding other liquidated assets appraised at $20 million.
The FDIC took over Valencia on Feb. 7, 1986, at the request of the state superintendent of banks. Plagued by real estate loans that went sour, the bank reported multimillion-dollar losses in 1983-85. The bank had 9,800 customers at the time it closed.
FDIC lawyers Wednesday asked for a judge’s approval of the payment plans.
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